by Steven J. Belmonte, retired President and CEO, Ramada Franchise Systems, Inc.

(The second of three presentations made to Symposia held at Roosevelt University's Manfred Steinfeld School of Tourism and Hospitality Management. All rights reserved. Any use without permission of the author is prohibited.)

once read about a minister who explained to his congregation the relationship between fact and faith. He looked out at his parishioners and said, "That you are sitting before me in this church is fact. That I am speaking from this pulpit is fact. That I believe anyone is listening is faith!"

Well, here I am again and here comes another sermon. I still have faith, but I am as frustrated as ever. I am frustrated because we still have a serious problem, and within that problem lies our greatest opportunity and I have not been able to find the right words to make you understand this. To make sure you understand there is a solution that is not complicated.

Please do not be offended by what I am about to say. It is not my intention to discredit the bright, talented and innovative general managers in our system. And they are out there, thank God. So first, let me say to those wonderful GMs out there, thank you for keeping my passion and hope burning. I only wish there were more of you.

BUT, if a General Manager is comatose, as unfortunately so many are, it's the hotel owners fault. It's your lack of involvement in the operation of your hotel. How many of you sit down and talk to your GM when he comes back from the orientation sessions? Don't even bother to answer. I'll just end up with heartburn.

You know what a lot of owners take pride in? Lowering costs. It's like a macho thing. Do you know how many owners brag, brag to me that they hired a GM for $25,000. And besides only having to pay the guy or gal $25,000, they are tickled pink because they schedule the GM to pull a shift or two on the front desk.

Hey, that's terrific. I know how to cut costs even more. Close the hotel. That will do it. There is no better way to reduce costs.

Last year at this very session, I used the word pride 14 times. I even went through a word by word analysis of pride. "Pleasure or satisfaction in one's work achievements or profession." I used the word leadership 15 times.

I don't see it. I don't feel it. Either one of those words. It's not there. How do I know? I have visited countless properties... I have talked to hundreds and hundreds of owners and GM's and let me tell you it isn't there... the dynamic leadership, the sense of pride just isn't there. Because we don't instill it. Because we don't understand how to do it. Because we don't care.

We have not identified the problem. We are in the people business. Not the hotel business, not the real estate business. Not the construction business, the people business. Instead of machinery, we have people. Instead of automated conveyor belts, we have people. Instead of computers that hum and print stuff, we have people. We have not come to grips with this basic concept. And without doing so, all the efforts, all the expenditures, all the marketing and sales efforts will not give you a full return on your investment.

It reminds me of an old story about Count Basie... yeah, I know I'm showing my age. He told an owner he would never play in his night club again because the piano was so badly out of tune. A month later the owner called Basie and said come back, it's fixed. Basie showed up, sat down, played a few bars and slammed the key cover down in disgust. He said, "This is worse. What did you do to this piano?" "I had it fixed," said the indignant club owner. "What do you mean you had it fixed? What did you do to it?" said the Count. "I had it painted" was the answer.

Starting to get the picture? There is an old expression that says, no matter which way you turn, your rear end is still behind you. No matter how much paint you use, it doesn't help if the piano is out of tune.

You really want to know what I hear, in my travels around the countryside. Serious bitching. Serious moaning and serious whining. "It's hard to find good help these days. Nobody wants to work anymore. Turnover is through the roof. These people don't care. Why bother talking or teaching anything.. two, three weeks, they'll quit. These kids are weird, with the earrings, the way they dress, crazy hairdo's weirdoes. Just a bunch of losers come looking for jobs here. If they had any ability, they would find a job with career potential."

Look, I am not going to go down this list of stupidity, item by item. Let's just say it's up there in brilliant thinking with the owner that pays his inexperienced GM $25,000 and has him pull front desk shifts to boot. Wait a second, I have a better idea. Let's say I agree with all of this.

I agree to everything... the old days were better... nobody wants to work... kids are weirdoes. I agree, okay? I'm with you. So?

So? What now? You've gotten it off your chest. What is your action plan? More bitching? More moaning? More whining? Man, if there was ever a better example of the old adage that if you're not part of the solution, you must be part of the problem ... this is it. The owners and general managers in the lodging industry ... they are the problem. Not the employees. Not the kids who apply for jobs.

Ladies and gentleman... we are the enemy! We are sitting on a real opportunity to increase revenue, cut costs and bump profits. The hospitality industry is the last major industry where a formal education is not a requirement for professional advancement or financial success.

• Hard work.
• Persistence.
• On-the-job training, desire for self-improvement.
• Willingness to watch, to learn.

These are the characteristics needed for success for anybody in our business. Whether you start out with a graduate degree from The Cornell University Hotel and Restaurant School... or as a young person off the street as a night desk clerk or housekeeper. Hard work and long hours are the pathway to a fulfilling career. Lots of people in this room, General Managers, owners, corporate vice presidents, never graduated college. Don't bother to look around the room. We can start right here with me. That's right. Steve Belmonte, President & CEO of the fourth largest hotel chain in the country never graduated college ... started at 16 as a desk clerk at an airport hotel, and became the youngest general manager in the history of Holiday Inn... at the ripe old age of 18.

My career has worked out pretty well. At least my mother thinks so. My dad thinks my rise to the "top" should be an episode on the TV show Unsolved Mysteries! Then for heaven's sake, why don't we tell our people about the career possibilities? About the abundance of success stories that are out there. To these kids, you appear confident, secure, rich and successful. They probably think you were born with a silver spoon in your mouth. Why don't you tell them the truth? Why don't you tell them your story?

We've gotten fancy with words in today's world. No more used cars, they are "pre-owned." Someone 5'5" isn't called short, but rather "vertically challenged." Now we don't take a young person under our wing, we mentor them. Like it has to be a formal transaction. I don't care what word you use. Why don't you help somebody out? Somebody was there for you. A teacher, a coach... a parent, the parent of a friend... a boss. Somebody. Somebody helped you.

We didn't grow up as hermits on a deserted island. Who was it in your life? To remember is to understand. Who helped you get started? Looking back, who's advice helped set you on your path? Think about it. I know who it was in mine. Hey, I was 18. Cocky, brash. Full of "you know what" and vinegar. I knew everything there was to know... and if I didn't know something it was because, in my opinion, it wasn't worth knowing.

Look, we were all like that at 18, admit it. And you know what, it's no different today. For all the changes in our world, 18 is still 18, and growing up is still difficult and for many, painful. The white boy with 2 earrings in each ear, the black girl with corn rows ... they're just like we were. Scared, unsure, rebellious, trying to put on a tough front. Trying to figure out who they are and where they're going.

They want help. Direction. An adult friend. They just don't know how to ask. Nothing has changed. Nor will it ever. There isn't a pill which will ever be invented that will smooth the process from adolescence to adulthood.

Anyway, there I was, an 18 year old smart-assed street kid with slicked black hair
... a mouth that was quick to fire like I was king of the world. In short, I had an attitude with a capital "A." Then I got my first big break when I was hired to run the Holiday Inn O'Hare Airport in Chicago by a gentleman I will never forget…
... Jim Schwartz, the owner of that hotel, as well as the owner of the first Holiday Inn ever built in the Midwest.

Jim was the first real boss I ever had and I will never forget him. For one, I credit Jim with harnessing my raw ambition; massaging it, and giving it focus. He was a true mentor, as well as one of the movers and shakers in the hospitality industry. I am also proud to say that he is now a Ramada franchisee at our beautiful Ramada in Colombia, Missouri and here with me today. Jim, I'd to invite him you on stage so that I can properly honor and express my appreciation for all that you have done to enhance my career.

Folks, it really is a small industry. And you need to remember that some snot-nosed kid you brushed-off yesterday may end up across the conference room table from you 10 years down the road. Trust me, you may not remember his name, but he'll remember yours.

This whole concept in which I am trying to communicate is like flowers, about making things grow about planting and feeding and watering. I'm talking about children, babies really, your children, my children they are all our children. Hey, you reap what you sow. You get back what you put out.

Think I'm off the deep end again? No way. Plant lilacs, you get lilacs, you don't get crabgrass. How do you know what you have in your hotel?

Do you know anything about these children? Do your people know anything about you? Have you given them any reason to respect you? To want to take the extra step for you?

How can I reach you? How can I convince you, folks? You think educating someone is expensive, try ignorance. This is your future we are talking about, your dollars. Your profits.

You want clever sayings? What will that help? Jesse Jackson said that God doesn't make orange juice. He makes oranges. You want another one? Someone said that diamonds are just pieces of coal that made good under pressure.

Touch the lives of your people. Fulfill this responsibility. Take ownership of our children; help young people make the most of themselves. Tap their energy, their ideas. Recognize their worth and get the very best that's in them for yourself. Ultimately, aren't you the beneficiary?

Look, this is real personal for me. You want to know what I think about sometimes? My tombstone. Yeah, that's right, my tombstone. What's going to be written on it? That I had a large net worth? That I was the president of Ramada? Nah, no thanks. It doesn't say anything about who I really was. I want it to read that I reached out to give a hand... or that I never forgot how blessed and lucky I was. Or how about "He helped others achieve success."

Now that's a first-class tombstone. That would please me. How about your tombstone? Your legacy? That's what mentoring leadership is all about. Growing people and developing other leaders.

Okay, you got the message. Let's get down to specific cases. Yours. You and your general manager set the culture of your hotel. You and your general manager establish the tone, the environment in which your employees operate. I'll give you two true examples of company cultures... two opposites.

The first is about FedEx. I needed to drop off a package downtown and got to the office 15 minutes before it opened. While standing on the street corner with my back to the storefront, the young woman inside unlocked the door, came out on the street, tapped me on the shoulder and said, "May I help you, Sir?" She did that for only one reason. Because of Fred Smith, the founder and operating head of the company. Smith never met her. Never talked to her. But he established the policies; he created the atmosphere where employees want to go the extra mile.

The other story? Bad. Real bad. Probably happens at least once a day to everyone here.

I go into a Johnny Rockets.... 10:50 in the morning... ten minutes before eleven. I push open the door and walk over to the front counter, three servers standing there in uniform with a manager-type wearing a tie. That's four people. I say, "I'd like a cup of coffee to take out, please." One of the waiters looks at me and says, "I'm sorry but we don't open until eleven."

... "I'm sorry but we don't open until 11"? The coffee is already made in the urn, four feet away and he's sorry we don't open until 11 ... and the moron manager stands there like a dummy?

Is that your hotel? Is that the culture; is that the kind of employee you want? Is that the attitude that is going to maximize your revenue and profits? You don't have a turnover problem. You have a supervisor problem or a training problem... it isn't a turnover problem. And the sad truth is how many people in our industry don't even know they are really clueless?

Like the nightclub owner in the Count Basie story. It isn't difficult to find a practical, cost effective, long term solution.

Let's begin at the beginning... the recruiting and hiring procedure. First of all, there are so many resources, so much material available. So much assistance available... that it is literally overwhelming. Let's not reinvent the wheel. Do you read the trades? Every issue has at least one article outlining a workable plan of action. Have you contacted EI, the Educational Institute? They have tons of stuff, sitting on a shelf waiting to be mailed to your property.

There is so much out there for you to tap into. Right there in your own backyard. Start with your local AH&MA Chapter. Find out what they have. If you're not satisfied, let your fingers do the walking through your yellow pages. Many Community Colleges, some public high schools and certainly Trade Schools offer courses in hospitality. Why not start an intern program at your property?

You want to get creative? Did you know there are over 200 black owned daily and weekly newspapers in this country? And probably the same number or more of Latino, Chinese, Korean papers. Ever think about making a want ad? For hiring, Ramada and Personal Best have already provided you with a tool ... access to Predictive Index, which provides insights into personality, interests and attitude of the applicant. But I've already mentioned that one.

Look, that's enough. I don't want to cross every "T" and dot every "I" for you. Go visit your franchise service representative at Info Source. They have everything ready and waiting for you.

Now you are ready for the interview. What are you offering? Minimum wage, an orientation that consists of "here's your uniform, report to work at 7:00 a.m. tomorrow, your day off is Tuesday. Patty will teach you how to check people in and out... she's leaving Thursday. Welcome aboard."

Great training program. What a sales pitch! What an opportunity! How does anyone resist? Henry Ford had a rule... produce the highest quality goods possible, at the lowest cost possible, paying the highest wages possible.

The highest possible wages. If you're paying whatever everybody else is paying
... then you'll get the same poor results as everybody else. Pay someone less than they are worth and very soon they will be worth less than you are paying them.
We are all in the most competitive job market of our lifetime. And let me tell you that's great. In a good economy, more people travel and guess what, more people stay in hotel rooms. Don't complain about it. Just look at your revenue and profits compared to five years ago. Be happy the job market is so tight.

But wages are not the whole story... only part of it. You can deal effectively with wages through a comprehensive, inclusive, reasonable incentive system.
Everybody responds to incentives. You know what an incentive means? It means, you're making more money.

That's right... you make the money. This is truly a different equation. 2+2 does equal 5. Let's say you set an annual budget for your hotel that throws off a net profit to you of $100,000 ?? that's clear dollars in your pocket. Net, Net. After taxes, insurance, mortgage payments, everything. You're happy. Your bankers are happy. You hit your projections. Do you want to make an additional $50,000? How?

Set the budget at $200,000, net, net and give your employees 50% of the excess over $100,000. That's smart. Do you want to hear dumb? Ever hear the story about why Ross Perot started his business? Because he worked for a group of egotistical morons at IBM. Perot was the world's greatest salesman. Every year he beat his quotas by a mile. Made a lot of money. Made more money than his boss. Hey, there's a solution to every problem. The sales manager cuts his territory down, cut his income. Believe it or not, Perot kept beating his quota and IBM kept cutting his territory. And finally Perot quit.

Just think about it. By his activities Perot was generating more revenue, more profits and was effectively forced out of a job. Look, I'm not going to walk you through the different kinds of incentive plans that are available, same deal as before... talk to your franchise rep at Info Source... there's a lot of material waiting there for you.

This is the time to do it. This is the time to implement change to build for the future. Business is good. You don't fix the roof when it's raining. There are so many different ways to skin this cat. So many different ways, monetary and non-monetary, to express your confidence, to express your appreciation in your people.

Never underestimate the need that human beings have to be recognized and to be affirmed. Never underestimate the power of praise and credit to general manager as well as a housemaid, to saints and to sinners alike. You want to focus on non-monetary issues, no cash out of your pocket? Besides offering the opportunity of a job.. besides offering the opportunity of a career... how about offering a lifestyle? That's right, a lifestyle, and a balance between work and family life.

Here are some possibilities to think about:

• Summer jobs for employees children
  
• No lay off policy
  
• Flexible work schedule ?? maybe a four day work week or three 12 hour shifts with every other Sunday
  
• A telephone hot line, anonymous for people to offer opinions, suggestions
• Employees donating time to fill-in for co-workers with emergencies

How about some low cost ideas that will pay you handsome dividends?

• A savings bond as a baby gift for employees who become parents
• A cash payment for recommending new employees who last through the probationary period
• 40 paid hours a year for volunteer service to an approved non profit organization
• 40 paid hours a year for expanded industry-related training
• Providing an instructor to teach English as a second language
• Benefits for part-time employees

Look, I'm running out of time and believe it or not, out of energy. All I want to do is to move the needle, to help you identify and solve the single biggest problem that faces our industry for the foreseeable future... a committed, trained, aggressive, knowledgeable work force who wants to build a career in the lodging industry. You can achieve this. Work with your people and everyone will reach their goals.

I want to end with some quotes, as I often do... this time from two outstanding Americans who were and are writers, poets and philosophers.

Ralph Waldo Emerson who lived from 1803 to 1882... and Maya Angelou, the Pulitzer Prize winner who is very much alive ... and who Dwyonia and I have been privileged to meet on two separate occasions.

First Emerson:

"... To laugh often and much, to win the respect of intelligent people and affection of children... to earn the appreciation of honest critics, to appreciate beauty and find the best in others... to leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed social condition... to know even one life has breathed easier because you have lived. This is to have succeeded."

Now Angelou:

"... Humans are wonderfully different and marvelously alike. Human beings are more alike than unalike. Whether in Paris, Texas, or Paris, France, we all want to have good jobs, where we are needed and respected and paid just a little more than we deserve. We want healthy children, safe streets, to be loved. If we are religious, we want a place to perpetuate God, if not, we want a good lecture every once in a while and everyone wants some place to party on Saturday night."

Nothing much has changed in the human condition, has it? Take responsibility for our children. Start by taking the barriers down which separate you from them.

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