✎✎✎ Christopher J Nassetta
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Hilton CEO Nassetta on Future of Travel, Hospitality
Again, the pace of change reduces such highly specific predictions to well-intended guesses. The second failure point, and one to which boards of directors are particularly susceptible, is a disproportionate focus on skills that should be table stakes. But an emphasis on these attributes simply catalogs traits shared by the majority of C-suite players, rather than highlighting the X factors that separate truly outstanding leaders from highly competent ones. We have sought to address these shortcomings by identifying four specific traits that our research shows the best-performing C-suite leaders share. The analysis is drawn from the real world: As mentors and coaches, we have followed the careers of many C-suite leaders over time.
Our data, collected from to , covers a period that includes the financial crisis and its aftermath, a time marked by disruption across all sectors. We conducted in-depth interviews with more than 2, executives, participated in hundreds of C-suite successions, and worked alongside more than 1, individual senior executives. Although our analysis did consider share price as a factor, we weighted it lower than actual performance against strategic goals. The share price remained steady during the period, mainly because of efficiencies created in managing the legacy business, but the future planks of its strategy remained largely unrealized. In contrast, an energy company in a similar time period committed to shifting from primarily coal- and oil-based operations to renewable solutions, a massive pivot that required a multistage transformation of all aspects of its business model.
Over a four-year period, the stock remained flat as the leadership team drove those changes, but as their success in the transformation became apparent, the price began rising. We rated this leadership team successful because they delivered the promised transformation. When we analyzed our data on all 2, leaders, four X factors that distinguish great leaders emerged clearly.
Company leaders and boards should understand and recognize these traits. As the pace of change and disruption quickens across the world, leaders face an onslaught of new and complex questions. The typical C-suite leader can process vast amounts of data and complexity, often on the fly. Truly standout executives, however, do more than live comfortably with chaos: They take ownership of complexity by creating simple, operational narratives around it that can be readily understood and embraced by those who work for them.
This combination of simplifying and operationalizing complexity provides a critical foundation. Simple, but not simplistic. For many of the business revolutions underway — such as the Internet of Things and blockchain — the endgame is unclear. In the face of this ambiguity, the best leaders strive to create clarity on the problems their business strategy seeks to solve.
They emphasize the reasons the organization is uniquely positioned to address those challenges, and offer a simple plan for winning that has just three or four priorities. Operationalizing complexity. The next, and typically harder, one is execution. Truly standout executives do more than live comfortably with chaos: They take ownership of complexity by creating simple, operational narratives around it. The best leaders use the simple plan as a foundation for an operational narrative that serves two critical functions. First, it must include one or two simple frameworks for how the company will carry out its strategy.
In addition to providing basic frameworks, an operational narrative should articulate one or two leading indicators by which the organization can track progress at a glance. This is not to suggest that companies replace the array of business unit—specific or role-specific metrics used to measure executive or company performance. Rather, the best leaders are intentional about giving the entire organization a common reference point to track progress toward a long-term goal.
Operational narratives cascade well. There is no single best approach to developing an operational narrative, and because of changing industry dynamics, the initial frameworks are unlikely to remain static. The most effective leaders constantly test and revise their operating assumptions using new information and insights. But the best operational narratives share several traits:. Why emphasize this trait? The ability to simplify complexity may seem like a paradox, and that is precisely the point. Implementing a simple plan for winning is easier said than done. Most leaders — even very good ones —try to accomplish too many things or get trapped in reactive mode by the problems that crop up or meetings that fill their calendars. Once leaders have identified the top three or four priorities that are going to move the needle, they have to weave them into their operational narrative and communicate them constantly.
Pursue best-in-class operational excellence and engage our Guests and Team Members to maximize our positive impact. Adopt a global standard for responsible travel and tourism, complementing our existing environmental certifications. Embed human rights due diligence across our global operations. Double our investment in programs that contribute to sustainable solutions and economic opportunity for all e.
Zero soap to landfill by recycling all used guest soap bars where available. Train employees at Hilton managed hotels on relevant environmental and social issues and engage guests in supporting responsible travel in destination hot spots. Double our monetary response, empowerment efforts and investment in resiliency against natural disasters baseline. Contribute 10 Million volunteer hours to activate our Travel with Purpose commitment in our communities. Breen For For Management 1. Hassell For For Management 1. Honickman For For Management 1. Montiel For For Management 1.
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