#8 Isadore Sharp (Founder of Four Seasons) Part 3

Welcome to Uncommon Excellence, the podcast where we learn from the best to become the best. I'm your host, Liam Applegate, and I'm on a mission to uncover the timeless lessons of history's greatest entrepreneurs, founders and thinkers so you don't have to spend years figuring it out alone. The world's most successful people didn't follow the crowd. They thought differently. They made bold decisions, and they built legacies that still shape our world today. But what exactly did they do? What can we learn from them? And most importantly, how can we apply those lessons to our own lives and careers? In each episode, I break down powerful insights from the playbooks of icons like Jeff Bezos, Steve Jobs, and Walt Disney, translating their experiences into practical, actionable takeaways you can use right now. If you're someone who refuses to settle for average and wants to learn from the greatest minds of all time, then this is the podcast for you. Let's get into this episode and start your journey towards Uncommon Excellence. So today we're diving into part three of our series on Isadore Sharp, who was the visionary founder of Four Seasons Hotels and Resorts. And this whole episode is about culture and quality. And that's two of the pillars that Sharp built his empire on. If you ever wondered how to create a world class organization that stands the test of time, this is the story for you. So the challenge of building this culture of excellence was that when Israel Sharp set out to create the world's best hotel company, he faced a massive challenge. His employees didn't take him seriously. They were used to the status quo, which was traditional hierarchies, rigid rules, and a focus on profits over people. But Israel Sharp, he had a completely different vision. He wanted to build a culture where quality and service were just these buzzwords. They were the foundation of everything. He wanted them to be the foundation of every single thing that Four Seasons did. And so, in a pivotal meeting with his executives, Sharp made his stance clear. We are going to win on quality. Quality is far and away the chief factor in competitiveness. A customer buys whatever, whatever gives them value for their money. And this wasn't just a statement. It was a declaration of war against mediocrity. Sharpe knew that to succeed, he needed to embed quality into the DNA of Four Seasons. But how was he going to do this? And this all goes to the four pillars of success. Sharpe identified four strategic pillars that would define Four seasons. The first one would be quality, which what we're going over in our podcast today, two would be service. Third would be culture. And that's another thing we're going over in our podcast today. And four is brand. And these weren't just abstract ideas. They were actionable, measurable and non negotiable. Sharp believed that a business without a strong set of guiding beliefs was like a ship without a rudder. And at the heart of it all was culture. And in this book, in these couple chapters today, it really goes over kind of the goal of the culture and what how Sharp basically made his culture the way it is and how he made it successful to what you see nowadays in a Four Seasons hotel. And so this all comes off the Golden Rule, which this means it's a culture of respect. But I'll go into what the Golden Rule is. Sharp's guiding principle was simple but profound. The Golden Rule, what he meant for it to be was treat others as you would like to be treated. This wasn't just like a nice sentiment. It was the cornerstone of the Four Seasons culture. But enforcing this standard was one of the hardest things Sharpe ever did. Some managers resisted clinging to like old school top down approaches. Others struggled to balance high standards with, with empathy. But Sharp didn't back down. He replaced those leaders who couldn't align with the Golden Rule and empowered employees to take ownership of their rules or their roles. If, and this is a great quote by Sharp, if they are really doing their job, they're not a cost, they're an asset and they're our primary asset. And he's talking about employees here. He believed that employees who felt valued would naturally deliver exceptional service to guests and this quality. So one of the aspects of the four pillars of success for Four Seasons is quality. And quality isn't just luxury, it's consistency. And so Sharp redefined what quality meant. It wasn't just about luxury. It was about meeting and exceeding expectations every single time. And Sharpe explains this really well. He says quality doesn't necessarily mean luxury. It means giving customers what they expect and meeting customers expectations every single time. And this philosophy resonated and has been seen throughout history with other great leaders. So Bill Walsh, who was a legendary NFL coach for the San Francisco 49ers, he coached Joe Montana. He emphasized that excellence should be a habit, not an afterthought. He believed that a culture of performance and quality had to precede success. And I love what he says here because this next quote is kind of the whole idea behind this whole philosophy with Isadore Sharp. And Bill Walsh says champions behave like champions before they are champions. They are, they have a winning standard of performance before they are winners. I just want to let that sink in. That is incredible. Just amazing stuff right there. Remarkable. It's really remarkable. Champions behave like champions before they are champions. So you don't just get to excellence or something as like a, you know, pre work pre. Just like something before what you do. It's, it's not just an event, it's a habit. And another person that really, you know, resonates with this quality or this philosophy that Sharp is explaining in quality is David Ogy. And David Ogilvy is the father of advertising. He just a legendary advertiser, a really great marketer. Um, but he noted that consumers value products that promise and deliver genuine benefits, whether that be beauty, nutrition or social status. Sharp. Sharp's emphasis on meeting expectations underscored the idea of delivering perceived value to the customer. And another thing is that Sharp knew his market. Wealthy guests who recognized and appreciated quality. That was his market. That, that's the Four Seasons market. But he also knew that quality wasn't just a product. It wasn't just about that product. It was about the experience of that product and the experience overall. And so what he wanted to do is he wanted to empower employees to solve problems. And so Sharp took a radical approach to management. He removed authority from managers and actually gave it to employees. He wanted a workforce that could solve problems on the spot where without waiting for approval. But like I've mentioned earlier, this shift wasn't easy. It required trust, training and a willingness to let go of control. And what, what's really interesting about this is he's really taking the power out of the manager's hands and saying, hey, employees like you need to be able to take responsibility over the these things without a manager over you and the manager over you type. Style is a very old school style and you know, the results were undeniable. Employees felt empowered. Guests received faster and more personalized service. And four seasons became synonymous with excellence. What I really needed was a workforce that willingly and immediately solved problems as they arose. Sharp said. I needed managers who let the employees work and let them solve problems as they came. And this goes to the mission statement. The mission statement was a culture of mutual respect. And at the heart of four Season success was its mission statement. And this is how you build culture. And three things it really focused on was finest quality of service and facilities, exceptional experiences, and a culture of mutual respect, trust and integrity. This mission wasn't just a just. They weren't just words on paper. It was a way of life. Sharp believed that a strong culture would attract and retain top talent. And it really created a virtuous cycle of excellence. Actually, this is a quote from Sharp. He said excellence and service could not be an event. It had to become a company wide habit. I, I love that because you know, excellence isn't just an event. Just like he said, it's not just a one time thing. You look at Kobe Bryant, you look at Michael Jordan, you look at all these different people. Excellence is not just oh, I won a game or I won one championship. No, it's like getting up every single day and doing the same hard thing every single day. And that's why it became, it becomes a habit. If you can really master something if it becomes a habit and you can really do a lot of good things if you can make it a habit and not an event. And that's how you cultivate a culture that is just superb in every single way, but also is excellent. And this philosophy really echoes Simon Sinek's idea of start with why his book is awesome. I really go recommend buying that. It's a great book if you have a business or, or just for your own life, really finding the purpose in your own life. And Simon famously said that with a why clearly stated in an organization, anyone with that organization can make a decision as clearly and as accurately as the founder. A why provides the clear filter for decision making. Any decisions, whether that be hiring, partnerships, strategies and tactics. And for Sharp, the Golden Rule was that why that guided every decision from hiring, even up to customer service. It wasn't just a business strategy. It was a way of how you lived your life. And like I mentioned, the hardest part was enforcing the Golden Rule. And enforcing the Golden Rules was one of the hardest things Sharpe ever did in business. And not everyone embraced it immediately. Some managers and employees were accustomed to traditional top down approaches and they resisted the shift toward a more collaborative and empathetic culture. Sharp emphasized that the Golden Rule wasn't just about being soft or lenient. It was about creating a culture of fairness and mutual respect. Employees were expected to deliver exceptional service, but they were also supported and valued for their contributions. And going back to Brad Jacobs from our last book, he said that in some businesses there's a perceived conflict between quality and speed, but a world class organization figures out how to achieve both. And this is exactly what Sharp did. Sharp. Sharp's approach required relentless effort. But the results, which were a loyal workforce and delighted guests. The results were a loyal workforce, delighted guests and a legacy of excellence. And that proved that it was worth its struggle. And one Thing that I would like to do before we keep on going is I'd like to go back to our mission statement and I actually, they have the mission statement in the back of the Four Seasons book and I just like to read, read it. It's only like a page and it's, it's just so amazing that you can't miss out on it. It's really, it's really a key to their success. And so it's called our goals, our beliefs and our principles. Who we are. We have chosen to specialize within the hospitality industry by offering only experiences of exceptional quality. Our objective is to be recognized as the company that manages the finest hotels, resorts and residence clubs or wherever they are located. We create properties of enduring value using superior design and finishes and we support them with a deeply instill, instilled ethic of personal service. Doing so allows Four Seasons to satis satisfy the needs and tastes of our discriminating customers and to maintain our position as the world's premier hospitality company. How we behave, we just. We demonstrate our beliefs most meaningfully in the way we treat each other and by the example we set for one another and all of our interactions with our guests, customers, business associates and colleagues. We seek to deal with others as we could have them deal with us. Again, related to the Golden Rule, Treat others how you would like to be treated. And the snatch part is what we believe. So our greatest asset and key to our success is our people. We believe that each of us needs a sense of dignity, pride and satisfaction in what we do. Because satisfying our guests depends on the united efforts of many. We are most effective when we work together cooperatively, respecting each other's contributions and importance. And this next part is how we succeed. We succeed when every decision is based on a clear understanding of, is based on a clear understanding of and belief in what we do. And when we couple this conviction with sound financial planning, we expect to achieve a fair and reasonable profit to ensure the prosperity of the company and to offer long term benefits to our customers, our employees, our hotel owners and our shareholders. And that is the whole mission statement. And the mission statement is very, very good. Something that I would just buy the book just for the mission statement because the mission statement is, well, you heard it, it's really incredible and it really defines what Four Seasons is. But really this book is just a master class on how to build an excellent culture. And you can kind of get bogged down with when you read it, you listen when you're reading it, you don't really realize how many good things are actually in it. But when you start going through the notes and you start like looking through all of it and really analyzing the book, there's some key factors of success that he is just lining out for you that you can really take and actually, you know, infuse into your business. And so this leads to our next point, which is the legacy behind Four Seasons and excellence as a habit. Sharp's relentless focus on on culture and quality paid off. Four Seasons became one of the most respected and luxurious hospitality brands in the world. But it wasn't just about the bottom line and it was about creating a legacy. Excellence and service could not be an event. It had to become a company wide habit. Just like we said. This philosophy echoes the wisdom of these leaders that we have already talked about, Bill Walsh and David Ogilvy. Bill Walsh believed that a culture of performance and quality had to precede success. David Ogilvy highlighted the necessity of customer of consumer research to understand what drives purchase decisions. Um, now comes research among consumers. Find out how they think about your, your kind of product, what language they use when they discuss the subject, what attribute or attributes are more important to them and what promise would be most likely to make them buy from your brand. And Sharp's story is really a testament to the power of culture and quality. It wasn't easy, but the results were a loyal workforce, just like we said. Right. And it proved that it was worth that struggle. So what are the takeaways from these couple of chapters? And how can you build your culture with a purpose? And what can we learn from Isadore Sharp's journey? Well, one is that culture is everything and it's the foundation of your success. Two is that quality isn't optional, it's the key to competitiveness. Three, empower your people, trust them to solve problems and take ownership. And four would be live your values. The golden rule isn't just a slogan, it's a way of life. This goes to Simon Sinek with start with why and how to live out your purpose. Find the why of your company. And Sharp story isn't. It's a masterclass in building a culture of excellence. It's a reminder that success isn't just about strategy, it's about people. And what I really appreciate about this is he talks a lot about excellence, surprisingly enough. And it really resonates and really relates to this podcast because, you know, excellence isn't just a habit or it isn't just a one time event. And then all of a sudden you're excellent no, it's paying attention to the details. It's doing what Disney did right back in our first couple of episodes, our first three episodes. It's doing what Disney did and looking at all that. And now we really look at just, you know, living out these values. Create a slogan or a. A purpose for your company and then live it. You know, empower the people around you to solve problems. And remember that quality isn't optional. Quality isn't just something that you just do. And then remember that underlying all this is culture. Right? Underlying everything is culture. And so the next podcast episode on this, which hopefully should be finishing up the book, but it's. I'm at, like, I'm halfway through the book, and I should be able to finish the book in the next podcast episode. So the next podcast. The next episode might be a little bit longer, but if you're ready to build your own culture of excellence, I would definitely take a page from Israel Sharp's playbook. Whether that's the mission statement or just the whole book, really, I would recommend reading this and start with the Golden Rule and then let it guide everything that you do. And I really just want to say thank you for tuning in to this podcast episode of Uncommon Excellence. And until next time, keep striving for that greatness, and thank you for listening, and I'll talk to you again soon.