
Chip Conley , author and CEO of Joie de Vivre Hotels is one of those business people who "gets it". After hearing him speak at the M-Squared conference this month, I had a chance to meet with him and chat in further depth about his business philosophy and his forthcoming book: "Peak: How Great Companies Get Their "Mojo" From Maslow" .
When I say that Chip Conley "gets it", what I mean is that he has built his entire company around the creation of emotionally driven brand experiences. Each of his individual hotel brand experiences is designed/based around a magazine brand and seeks to create the same vibe as that magazine's content and writing. For instance, the experience of Joie de Vivre's "rock n' roll" hotel - The Phoenix - was built around Rolling Stone . However, being in the boutique hotel business, you might expect the company to do this for his customers. What makes Joie de Vivre truly different is that the company creates meaning for employees and investors too. In the book, Conley talks about how this helped Joie de Vivre survive San Francisco's dot-com travel meltdown and has helped keep his turnover rates well below industry averages. Better yet, he provides the theory and advice for companies to be able to do this themselves. While this is a well established theory (e.g. The Service-Employee-Profit Chain), it is not necessarily easy to put it into practice.
Our conversation covered a fairly wide range of topics, but some of the key themes that emerged were:
Building Business for the Long Term
To Conley, building a strong business means being focused on building strong relationships with employees, investors and customers. This does not have to be in conflict with the short term revenue demands of Wall Street, but it often seems to be. In particular, it seems to conflict with the demands/expectations that companies grow quickly. We spoke about the fact that in many cases, the companies that succeed at building strong relationships are those that are private (e.g. Joie de Vivre) or who exercise a great deal of control over their financial destiny. They have been able to focus and spend behind the issues that will create success over the long term: strong, empowering corporate cultures, motivated employees and great customer service. We also discussed the benefits (and pitfalls) of employee ownership which, while it can create an ownership mentality and sense of involvement, is slightly meaningless if employees are not listened to. United Airlines is a good example of this.
Reflecting on this after our conversation, I wonder if marketers shouldn't really reflect on what it would take to create an ownership culture among customers. What would you do in your business to make customers feel as if they owned a piece of your company? If they did, how would you communicate with them and treat them?
Training
Accomplishing all of the above takes an investment in human capital. In our conversation Conley noted that this is a major endeavour for Joie de Vivre at all levels of the company. In contrast, many (if not most) major US companies have ceased to provide line level employees with the kind of training that will help them align their job performance with the company's business goals. Very often there will be training on the basic skills (e.g. how to present), but nothing on behavior modification, adapting to change etc. Those companies that do invest (GE being one very well known example), tend to reap the rewards.
One interesting aspect of the conversation was what defines training. Conley pointed out that training does not always have to be a formal "sit-down" learning session. It can be simple exercises which reinforce behavior e.g. managers talking about stand-out individual employees at weekly meetings.
Feedback Mechanisms
As mentioned above, creating an ownership culture helps create workplace fulfillment, or what in his model Conley would call meaning. But, without the feedback mechanisms to listen to employees (and customers), this culture simply cannot be created. Listening to complaints and ideas from all sources is something that Joie de Vivre does well. It administers the Fortune Best Companies to Work For survey to it's employees and benchmark's itself against the best. It encourages people to submit ideas and empowers them to create change.
Having has a peak at "Peak" (sorry) I would recommend buying it when it comes out. In the mean time you can read Chip Conley's blog here.