Joe Kane's AH&LA Incoming Chairman's Inaugural Speech
During his inaugural speech at The Pierre Hotel, incoming 2006 American Hotel & Lodging Association (AH&LA) Chairman Joseph R. Kane, Jr., CHA, told an audience of industry leaders that he is challenging the industry to strengthen its top-line revenues and bottom-line profits through an emphasis on true hospitality service. "I want to lead the charge in challenging all of us to resurrect the spirit of hospitality, so that we can improve our revenues, and most importantly, lead all service sector businesses in consumer satisfaction," said Kane. "Service in our industry is becoming a lost art. The spirit of hospitality has been replaced with bottom-line cutting and our industry is suffering for it." Below is his complete address to lodging leaders.
Thank you...Thank you, very much Ladies and Gentlemen for your warm very welcome. Becoming the 2006 chairman of the American Hotel and Lodging Association is an honor and privilege and one I will cherish the rest of my life.
Erin, Joe and Paul, thank you for your wonderful humor, candor and very kind words. And thank you for being the best children a parent could ever wish to have ... you make me very proud everyday.
As with any successful career, no one accomplishes anything alone and there are several people I would like to recognize.
First and foremost is my wife Maureen for her continued and unwavering support throughout the years. Honey, I thank you for your dedication to our marriage, our family and for your rock solid support throughout my lodging career.
I can honestly say that tonight would not have been possible without you in my life. I feel extremely grateful to have you as my partner and life long best friend.
Ladies and Gentlemen, if you will indulge me, please allow me to formally introduce the rest of my family. Erin and her husband Tim VanOudenaren, Joe and his wife Linda, his twin brother Paul and his wife Heather.
Maureen and I are also blessed with three beautiful granddaughters. Amber, our oldest who is with us this evening and Marissa and Peyton are too young to make the trip.
I'm also proud that my Mom and Dad, Jeanne and Joe, my sisters, Barbara and Beverly, and my brother Brian are here to share this evening as well as my brother-in-law Mark.
As you have seen, family plays a very important roll in my life. And it's no different in the hospitality industry as our mission as innkeepers is to ensure guests from around the globe are treated like family.
My parents, sisters and brother, were witness to my decision to pursue a career in lodging and I remember to this day my mother's exact words about that decision... "But Joey (yes, Joey!), there are no hotels in Naugatuck... Where will you work? Well Ma, I hope tonight has eased your apprehensions just a little.
The lodging industry has been my passion since I was 16. In fact 2005 marks my 40th anniversary in the business. Wow... did I say 40 years??
And I can easily say that I'm still in love with it all these years later. During that period, I've met some outstanding people who have positively affected me and my career ....and I'd like to thank them for their support. Some include:
Jerry Kadish - who promoted me to my first multiunit responsibilities at The Howard Johnson Co. in the 1970s
Bob Weller - my good friend and mentor in the franchising business, which began for me in the mid-80s at EconoLodge
Henry Silverman and John Snodgrass - who hired me as President of Days Inn in 1996... the best job I've ever had
John Russell - a good friend, an outstanding humanitarian and a great man to work with. John, thank your for being our MC this evening and for your very kind words.
And of course Cendant Hotel Group Chairman/CEO Steve Rudnitsky and COO Tony Burger, who have supported me as I pursue my passions in this business and give back to an industry I love through volunteerism at AH&LA
And finally the Days Inn Team ... As I said at the outset, no achievement is a one-person effort and the Chairmanship of AH&LA is no different.
So I'd like to especially thank the Days Inn management team, our Franchise Advisory Committee members who are here this evening, and all of the Days Inn franchisees for their continued support and dedication.
I would like to echo Pedro's comments regarding the leadership of AH&LA President/CEO Joe McInerney and his outstanding and talented management team, as well as the officers I've had the pleasure of working with.
I also extend my sincere congratulations to newly-elected Secretary/Treasurer Tom Corcoran.
As you can imagine, there are countless other people to thank; please know I'm grateful for having known and worked with you.
Growing up in Naugatuck, CT, I was thrilled (and so was my Mom!) to secure my 1st General Manager appointment in Middlebury, Connecticut upon graduating from Paul Smiths College.
One of my 1st official and perhaps best management decisions was to join the Connecticut Lodging Association and AH&LA. Both of these organizations greatly prepared me with the additional skills needed to be a successful hotel manager.
I truly believe that the foundation of knowledge I gained from being a member of these associations has assisted me throughout my entire career. It's difficult to imagine that 28 years have passed since I served as president of the Connecticut Lodging Association, a position I was very honored to hold, particularly at the tender age of 28.
I could not have imagined in 1977 when I presented this award to then AH&LA Chairman, Dick Holtzman, that I would one day follow in his footsteps and lead our industry's trade association.
In fact many of our past AH&LA Chairmen were my role models in this business when I started out... in addition to Dick Holtzman, people like Paul Handlery, Roger Saunders, Dick Nelson, and the late Phil Pistelli to name a few.
I'm also proud to be following my good friend Gene Rupnik, a Days Inn owner and our current Franchise Advisory Committee Chairman. I pledge to carry out my responsibilities with the same vigor and commitment as my predecessors.
{Pause}
One of my presidential heroes, Franklin D. Roosevelt, was quoted as saying that "Confidence thrives on honesty, on honor, on the sacredness of obligations, on faithful protection and on unselfish performance. Without them, it cannot live."
My sincere goal as your 2006 Chairman is to ensure that the industry and you, our association's members truly believe that our AH&LA management has the very desirable qualities of which FDR spoke.
For only then can we earn your utmost confidence... in our officers, in our staff, and most important of all, in our ability to serve you.
Therefore, tonight, I'd like to focus my remarks on two qualities I live by each day and which have greatly contributed to my career success. I believe these two things can propel the AH&LA to new heights. The two qualities are, simply: Planning and Leading.
Today in America all business operates in a very combative environment. In the hospitality industry we are all in a war for market share. I have stressed to our Days Inn management team and our franchisees that WAR is really an acronym that means "WE ARE READY".
In many ways AH&LA has acted as our company commander, preparing us for the realities and possibilities that confront our industry daily.
If we're going to be ready for the continuing industry demands of the coming years - we must stay ready. And that takes PLANNING!
Let's consider the importance of PLANNING by taking a look at history. When Christopher Columbus set out to find America it is said that he didn't know where he was going, he didn't know where he was when he got there; and he didn't know where he had been when he returned to Spain.
Many people in all types of business operate on the "Christopher Columbus School of Planning." In other words, they don't know where their business is going...They don't know where they stand in the market... and they don't know what happened when they review the year.
Columbus might have been successful ensuring a high level of celebrity - but he died broke. And that's a legacy I'm sure none of us wants to share.
I recently read that only 20% of all top-level managers see their role as that of a planner. In fact, the average business manager in America spends just 3% of their time thinking about the future.
Let me share a story about a company that underscores the need for planning.
Nearly thirty years ago when office automation was in its initial bloom, Wang word processors ruled the market. As late as 1980, Wang made profits of $52 million and was growing at 30% every year.
Then came the personal computer boom. Wang failed to see any threat, failed to PLAN and continued business as usual...Two years later Wang filed for bankruptcy.... The lesson? Winners plan. Losers don't. It's a lesson the lodging industry cannot afford to ignore.
If we don't properly manage our strategic business plans ... we can't maximize our true potential. A business plan is your road map to success.
Without a dynamic, visionary business plan you can't manage business objectives, initiatives and growth. Because, like Columbus, you won't know where you're headed ... and you won't know where you are once you get there.
AH&LA leadership recognized the changing environment in our industry. And after thorough research, candid discussions, and assessments at every level, AH&LA created a new organization including an accountable and measurable multi-year strategic business plan.
2005 marked the beginning of the new era for AH&LA, under Chairman Mandoki's stellar leadership.
As you know, AH&LA's continuing mission is to serve the lodging industry by providing representation at the national level, in governmental affairs, education, research, communications, and value added services.
We are, as we have been for 95 years, the voice of the entire U.S. lodging industry, its primary advocate, and its most indispensable resource.
Underscoring the importance of planning, my administration will continue our multi-year strategic plan that Pedro spoke about. This consistency of direction year over year ensures we stay focused on the critical long term objectives of your association. Our three-year strategic business plan will again focus on these core objectives:
First, we'll continue our strong working relationship with the partner state associations to increase membership. We remain committed to providing meaningful member services to ensure the association remains strong and financially healthy.
As your Membership Committee Chairman the past two years, I'm proud of the accomplishments we achieved by creating new membership collateral, a Partner State Association website devoted to membership growth with accountability and, of course, meeting our 2005 membership objectives.
We'll enhance our second objective which is to increase AH&LA's value within the industry and work on ways to develop consumer opportunities for the brand. Our new Insurance Center and energy program are examples of these actions and are just the beginning of services to you, our members, and the industry.
Last, we'll continue to embrace and enhance the industry's multicultural and diversity opportunities. I have always said that the hospitality industry itself is one of diversity as we employ and serve people from around the globe. We as an Industry have an obligation to get involved in and use whatever tools necessary to support and recognize opportunities in diversity whenever possible.
AH&LA has made diversity a core business objective and we're working to ensure it's addressed at every level. We're arming hoteliers with the resources they need, gathering new data, and providing awareness and training resources.
Let me share an example of how AH&LA's Multicultural and Diversity Advisory Counsel helped Days Inn think out of the box and use diversity as a tool to assist all operators.
Earlier this year we proudly unveiled a new Trilingual Hospitality Handbook. This handbook takes the most commonly used industry terms and converts them from English to Spanish to Gujarati, the language spoken by many Asians American hoteliers and was the first of its kind in the business.
We're proud that Days Inn was the innovator and have shared this guide with other lodging brands because it's the right thing to do in support of our mission as innkeepers. AH&LA's multicultural and diversity actions will only continue to add to this type of innovation.
These three objectives are not just worthy; they are NECESSARY. And they will be achieved, because we have a PLAN in place to make them happen.
In addition, under Joe McInerney's direction, a key focal point of AH&LA is being the primary advocate of the lodging industry to governmental entities, as well as being at the forefront of industry challenges, such as labor relations. As we all know, both roles have never been more important than they are today.
In addition to planning the other quality attribute I mentioned is leadership. How do we make certain we are prepared to meet the challenges of being leaders in our industry?
First, we look at ourselves from the inside. We must know the trends ... the issues ... and the opportunities of our industry.
That means having the greatest skills... insights... and experience so we can quickly and successfully identify the new challenges we encounter. It means being the best at managing and operating your hotels.
Second, we must look at ourselves from the outside and see ourselves as our competition - and our customers do. And we must take that look with the same unflinching and critical honesty. ARE WE REALLY BETTER?! OR DO WE NEED TO GET BETTER?!!
As chairman, I want to take the lead in strengthening our industry's top line revenues and bottom line profits through the reemergence of true hospitality service. I want to lead the charge in challenging all of us to resurrect the "Spirit of Hospitality" so that we can improve our revenues, and most importantly, lead all service sector businesses in consumer satisfaction...something that should be second nature to us.
I chose the beautiful Pierre Hotel for this dinner to showcase what the definition of service should mean, no matter what segment of the business we operate in. In other words, attention to detail on the basics of service. Didn't the Pierre team do a fantastic job tonight?
Service in our industry is becoming a lost art. The Spirit of Hospitality has been replaced with bottom line cost cutting and our industry is suffering for it. How? By not delivering on what should be a natural for us in the lodging business.
The annual American Customer Satisfaction Index untaken by the Ross School of Business at the University of Michigan showcases some alarming statistics that illustrate my point.
The ACSI measures scores in 39 industries with more than 65,000 consumers interviewed annually. Between 1994, the 1st year of the study, and 2004, the Hotel/Lodging sector dropped nearly 3%.
As an industry that makes a living on delivering value and service, we declined while other industries such as fast food gained over 10%, and Financial Institutions were up nearly 2%
You have my pledge that AH&LA, through the support of our Educational Institute, will provide new and innovative programs throughout 2006 to re-energize your team on the delivery of outstanding guest service that drives guest retention and improves our industry's customer satisfaction levels.
This effort clearly ties to our second strategic goal of increasing AH&LA's brand value to you. I'm proud to announce this evening that in conjunction with the Educational Institute we are re-launching our "Spirit of Hospitality" training program.
This enhanced program offers the latest training strategies to deliver 21st century exceptional service. The "Spirit of Hospitality" training program will empower all of our employees to strive for service excellence and create memorable guest experience...the key to guest retention.
To fully support my commitment to improving our industry service rankings, EI is offering this remarkable program at 50% off the normal member price of $80.00 for all of 2006. Trust me; it will be the best $40.00 you invest all year on your team.
I know what some of you may be thinking...service is great at my hotel. While that may be true, all it takes is one inattentive team member. Let me tell you about an incident that happened to me.
Several years ago, we held a regional summit meeting at one of our Chairman's Award winning, top-quality Days Inns.
As an early riser, I was out getting some fresh air and said good morning to one of the other guests.
He didn't look happy and told me it wasn't a good morning for him. Turns out his wife was in town for a very important job interview that morning and the vanity lights were not working – so she couldn't see to put her make-up on... As any good husband knows, this man needed to take action and take action quickly!!
He told me that the front desk clerk had been rude and not the least bit helpful. I asked him his room number and proceeded to the front desk to see what I could do.
After waiting until the night auditor finished talking to her boyfriend, I asked her about the guest's dilemma. She stated, and I quote, "I'll tell you what I told him...there is nothing I can do about it."
So I went back to my room, took apart my own vanity light, proceeded to the guest's room, and personally changed their light bulbs. I had on a Days Inn golf shirt so you can imagine my embarrassment when the guest offered me a tip! Of course I declined and told them that I didn't work at that hotel, but was with the corporate offices.
When he asked me what I did there, I hesitated for a moment, and then said, "well.... I'm the president of Days Inn."
He was flabbergasted and stated that he had been ready to write off our brand – solely based on that one, rude employee who clearly didn't demonstrate the Spirit of Hospitality.
But this guest told me that if the brand president was this committed to customer service, then he would definitely give us another opportunity. Let me remind you again, this was an award-winning, beautiful, well-maintained Days Inn.
But when it comes to customer service, it doesn't matter the size of the hotel or how spectacular your facility is ... if it's not matched by spectacular guest service.
Incidentally, our customer-service challenged friend found herself on the unemployment line later that week. However, rumor has it that she's currently employed by another hotel chain so beware...
Tonight, I'm asking the entire lodging industry leadership to make a pledge. I'm challenging us to commit to delivering the best customer service of any business in the country.
To solidify that commitment, we have created a "We've Got the Spirit" industry-wide awareness program that begins right here...right now.
On the screen is our current working rendering of our "We've Got the Spirit" logo. All industry leaders will be receiving a letter from me asking them to use our final approved icon on all internal communications to show solidarity as an industry in our commitment to guest service awareness at the property level and will be downloadable free on AHLA.com.
More importantly, to ensure better service at the property level, we encourage you to enlist all team members across the country to experience the EI "Spirit of Hospitality" training program where upon completion they will receive their own "We've Got the Spirit" lapel pin.
The "Spirit of Hospitality" is something we as an industry can own and be proud of and I counting on all of us tonight to seize the moment.
That commitment by each of us is the single strongest way there is to demonstrate the power of leadership in our industry.
We must work with a strong base of values ... a strong sense of integrity ... and character. We must lead by example ... and make our work worthy of our best efforts.
After all, this is our life's work. We spent much of our youth preparing for it ... and we'll spend much of our retirement recalling it. So it must be worthy of the preparation ... and worthy of the memory.
We should be able - at some time in the future - to look back with pride and satisfaction on a working life well spent.
And that has a lot to do with what we put into our effort each and every day to offer the true "Spirit of Hospitality." in every one of the more than 1.4 million guest rooms in our association.
You're not just running a hotel. You're building a strong future for yourselves, your businesses and your industry - a future which, I know, will be full of greatness for all of us.
Thank you for the honor of being your 2006 chairman and for being here tonight... God Bless you... and The Lodging Industry.
