Not a day goes by when I don’t think of Michael O’Grady. I can’t forget the creative ways he coached and mentored so many to new heights. In this series, “Lessons Learned from the Magnificent Manager,” I’ll share my insights, breakthroughs, tools, and techniques, which honor Michael’s legacy of helping others grow and succeed.

reat leaders inspire. They provide us a sense of well-being, purposeful work, and hope for a brighter future. They push us to move beyond the status quo, develop our unseen talents, and make us feel part of something special. Yet great leaders are few and far between. And that’s why I and so many others are fortunate to have worked with Dan Flannery, area VP of Ritz- Carlton for New York and Boston.

1 SET THE COURSE WITH A TEAMBUILDING/ GAME PLAN WORKSHOP
“Every January,” says Dan, “I schedule a three-day executive team-building retreat.”

• DAY 1: Get feelings on the table. “An outside facilitator conducts a group exercise around the concepts of a great book like The Five Dysfunctions of a Team. She helps us hash out conflicts and get our feelings on the table. To set the stage, it’s important to invest time in getting real. If we don’t, it’s like saying, ‘We’re too busy driving to put oil in the car,’ Dan says.

“Next, we fashion feedback sessions in two ways: one from the team to me, and the other from peer to peer. I might hear complaints like, ‘I feel like you rush me and don’t give me enough time.’ One executive team member might confront another; ‘Your department is really letting the rest of us down.’ I love the way, like members of a sports team, they hold each other accountable. I strive to create that kind of team self-responsibility, since peer-to-peer feedback is the most powerful,” Dan emphasizes.

• DAY 2: Review results and set goals. Here, Dan focuses on critiquing the measurable results from the previous year: market share, employee and guest satisfaction, and financial results, to understand where the team succeeded and where it fell short. Next, a game plan is created for the coming year. Each exec team member must select three to five goals they will be measured against that align with the game plan.

• DAY 3: Differentiate for recognition, rewards, and accountability. “The final day is Dan’s brainchild, an eight-hour management rating marathon,” says Laura O’Neill, director of human resources for the Ritz-Carlton New York, Battery Park. “Every exec team member grades each of their department heads and assistant managers in alphabetical order on a scale of one to ten on two things: commitment and value.

“Commitment is defined as work ethic and dedication to our culture and its values. Dan gives the example of when, during the blackout of ‘03, members of our sales team came upstairs and asked, ‘Okay, where do you need us?’ They jumped right in, escorting guests to their rooms and taking orders in the restaurant, while two accounting managers slipped out the back door.

“Value, on the other hand, is defined as contributions in terms of measurable results. So, for instance, the food and beverage director critiques his restaurant chef on food costs, labor management, and food quality. Once the exec team member reviews each of his players, the rest of the team gives input. There’s excitement and heated discussion. ‘How can you possibly give your chef a ten when he constantly yells at the dishwashers,’ a participant might protest,” Laura says.

“What’s great is that Dan mostly listens and interjects questions only to direct a discussion to the core of the problem. The exercise is repeated until all sixty-two department heads and assistant managers are graded. Then we plot on a board each player into Jack Welch’s ‘20-70-10’ system, where you have your top twenty superstars, your vital seventy mid-performers, and your bottom ten poor performers. We give special treatment to our twenty percent superstars and put the bottom ten percent on a sixty-day action plan to move them up or move them out,” Laura explains.

2 DEVELOP, NURTURE,AND PROTECT TOP PERFORMERS
“I focus on our high achievers—the thoroughbreds,” says Dan. “If you’re going to play with the NFL or be an Olympic runner, you must be willing to make sacrifices others aren’t willing to make. Whether in business or sports, the principle is the same. You have to continually work on how to get better performers and keep them happy. I’ve seen people who manage by fear. Superstars won’t tolerate being micromanaged and intimidated by threats. It’s insulting. And the worst thing that can happen is to lose a superstar. They’re our bread and butter. And, if you want to hang onto them, you must be willing to cut people who can’t play.

For instance, Yankees coach Joe Torre cut star center fielder Bernie Williams, who, though a popular player, had lost a step. If you lack the courage to make those kinds of tough choices, you’re not only going to lose the game but also lose the respect of your top players,” says Dan. “You also have to compensate super performers appropriately. This is why I like conducting the team-building workshop in January before performance reviews. When everyone across the board gets a four percent raise for just coming to work, it gets under the skin of superstars who ask, ‘Why am I working so hard when everyone gets the same reward?’

”Giving our top performers a seven percent raise, mid-performers three-and-a-half percent, and the bottom ten zero sends a powerful message. Also when my boss, Bill Rhodes, comes in for a ‘rap session’ luncheon looking for people to promote, only the superstars have earned a seat at the table.

“Furthermore, we must help our high achievers work at a sustainable pace. Otherwise, after two or three years, they’ll burn out and quit. It’s like a jockey pushing a hundred and ten percent for the first part of the race and having nothing left for the finish,” Dan says.

“I was such a workaholic,” says Kate Harth, area director of sales and marketing and one of Dan’s superstars. “In a one-on-one, Dan told me I needed help. ‘If you don’t change, your whole life will be about work. You are fiercely competitive and a top performer. But you need balance. Did you ever think you could get a ninety-five percent and still be okay?’ Dan questioned. “I’m so grateful for how he knows and cares about me. I feel the company pays me to have a life coach,” says Kate. “Many people need to be pushed, but sometimes thoroughbreds can’t rein themselves in,” says Dan. “If you want sustainable results, you must guide them.”

3 GIVE RECOGNITION THAT STICKS
“We used to put on lavish Christmas parties. People would come up and thank us,” says Dan. “Then, after two or three years, like many company get-togethers, perceived as entitlements to some, the complaints rolled in—the stuffing’s too dry, and the pumpkin cheesecake was a lot better last year! What really counts is face time, giving personalized attention that makes people feel special and appreciated. And the most powerful way to recognize someone is to give them more responsibility,” continues Dan.

“I’m the perfect case and point,” says David Chase. “I was the director of catering when we opened the Ritz at Battery Park. I thought of myself as a lifetime foodie. Dan saw in me what I couldn’t see in myself. He perceived me as someone who can summon the forces and build a team of fiercely loyal players who would stay with me for four, five, and six years. So, Dan said, ‘All I ask is that you give the hotel manager job a try. If you don’t like it after six months, you can go back. Plus, you’ll never know what you might be missing if you don’t take the chance.‘ Today I’m the hotel manager at Battery Park, and I’m thrilled,” David says.

“And never underestimate the power of a heartfelt written note,” says Dan. “I keep a ‘Friday File.’ It reminds me to write a letter to the manager of the quarter or to simply write someone to offer special thanks. And I send the note to the person’s home. It’s more personal when their families share in the pride and appreciation first hand.”

4 THINK OUTSIDE THE BOX
In 1997, when Dan was the hotel manager at the Marriott Financial Center, his three-meal restaurant was taking in $800,000 and was losing $350,000. “I could have played it safe with the cookie-cutter approach, where everything is provided from menus to use records to tabletops, where you had a get-out-of jail free card by simply passing an audit,” says Dan. “But I knew we could achieve more if we had the guts to take a bigger risk.

“After arduous research, I set my sights on Roy’s, founded by Roy Yamaguchi. But it wasn’t easy. I had to make an extensive business case for corporate approval with financial projections, ROI, construction costs, and a positioning plan. And I had to convince my GM, the owners, Host Marriott, my market manager, and Mr. Marriott himself. After getting some push-back, I finally got the go-ahead, and the rest is history. Roy’s was the first license agreement with an outside chef and the first time a Marriott used an outside restaurant designer and architect. When you’re willing to put your neck out, your people get excited. In 2000, we did $5.5 million,” Dan recounts.

5 TUNE IN TO YOUR PEOPLE
“What’s great about Dan is that he is a really great listener,” says Rick Evanick, GM of the Ritz- Carlton New York, Battery Park. “You might think since he’s the area director he’s not really there. But every time I meet with him, he writes things down. Last year, he asked me if I’d consider moving into a corporate role. I told him I loved being on property, being in the thick of things. Just last week, he checked with me to see if I’m still in the same frame of mind,” continues Rick.

“Dan is engaged on a different level,” says Laura O’Neill. “If I go to him with a labor strategy, I make certain I’m totally prepared to make my case with an action plan for roll-out and implementation. But he turns it into a tennis match. He throws out questions and pushes me to consider options I never thought possible. Plus, he doesn’t tell me what to do. He puts the ball back in my court. You walk out of his office excited and your head spinning with ideas. In this industry, what makes Dan great is that he has his family and he coaches his daughter’s basketball team ... and it’s so difficult. He’s the real thing. Dan recently flew back from Bahrain after closing a deal with the King to make a church retreat with his kids. He lets you connect with him on a deeper level. It’s incredible to sit in a room and get feedback and feel cared for, never attacked or criticized,” Laura reflects.

“Some might say Dan’s a perfect example of what Good to Great author Jim Collins calls a ‘level five leader, ’ humble and focused not on himself but on getting both extraordinary results and what’s best for his team,” says Michael Monarca, executive assistant manager at the Central Park Ritz-Carlton. “This is my third tour of duty with Dan. And I’d follow him anywhere because, with Dan, I’m always going to learn something, push myself to new heights, and be part of a great adventure.”

Bob Brown, president of Bob Brown Service Solutions, www.bobbrownss.com, pioneered Marriott's Service Excellence Program and has worked with clients such as Disney, Hilton, Morton's of Chicago, Olive Garden, and Red Lobster. He has appeared on the "Food Network" and "Hospitality Television" and is author of The Little Brown Book of Restaurant Success and The Big Grown Book of Managers' Success.
©Bob Brown Service Solutions 2007.