Cultural Renovation at the F$.$S$.$ George V

Young noted:

When we explored options for refashioning the George V into a Four Seasons hotel we

realized that without being able to start from scratch, the task would be Herculean. The

existing culture was inconsistent with ours. In a North American environment you can decide

whom to keep after an acquisition at a cost you can determine in advance on the basis of case

law. In France, the only certainty is that you cannot replace the employees. You are acquiring

the entity as a going concern. Unless you do certain things, you simply inherit the employees,

including their legal rights based on prior service.

To be able to reduce headcount, by law an enterprise had to plan to be closed for over $18$ months.

Because the F$.$S$.$ George V owner wanted the renovation to be complete in $12$ months, staff were

guaranteed a position with Four Seasons unless they chose to leave.

$8$Many of the best employees

easily found other jobs, while the most disruptive were still there when the hotel reopened,$$ Young

said. $$The number of people we really didn$$t want was somewhere in the region of $40$ out of $300$

coming back on reopening.$$

Young provided an example of the cultural problems Four Seasons found: $$During the due

diligence process the former general manager went to lunch with one of our senior staff. Even though

guests were waiting, the maitre d$$ immediately tried to escort the general manager and his party to

the general manager$$s customary table. At Four Seasons this is seen as an abuse of privilege. For us$,$

$$the guest always comes first.$$

Fortunately, in taking over The Pierre in New York in $1981,$ Four Seasons had been through a

similar process. As a senior Four Seasons manager recalled, $$Shortly after we bought The Pierre, a

bell captain lamented that the times of the big steamer trunks were over. The staff had not adjusted to

jet travel, despite its prevalence for two decades. This is the same kind of recalibration we had to do

at the George V$.$

Apples and Oranges

The Four Seasons had developed a specific approach to cultural transformation in acquired

properties with existing staffing. Young elaborated:

If we can achieve a critical mass of individuals among the workforce committed to doing

things differently, to meeting our standards, that critical mass overcomes the resistance of

what becomes a diminishing old guard. Progressively, that old guard loses some of its power.

If one rotten apple can ruin the barrel, then you have to seed the organization with oranges

that cannot be spoiled by the apples. As a result, a departing old$-$guard employee is very

carefully replaced. Concurrently, individuals with the right culture and attitude are promoted.

That creates a new culture, bit by bit by bit. At the F$.$ S$.$ George V$,$ we also appealed to the

national pride of our staff to help us restore a French landmark$$restore the pride of France.

$$Un Boss Franco$-$Fran$$ais$$

To effect this cultural change, Four Seasons chose Le Calvez to be general manager. Described as

both demanding and $$Franco$-$Fran$$ais$,9$ an expression describing someone or something

$$unequivocably French,$$ Le Calvez brought extensive Four Seasons and North American experience.

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