Four Seasons

The first Four Seasons Motor Hotel on Jarvis Street in Toronto which opened in 1961.

58 HOTELS

28 COUNTRIES

ONE PHILOSOPHY

FOUR SEASONS TEAM

EMPLOYER OF CHOICEEMPLOYER OF CHOICE

!Sixth consecutive year on Fortune�s list of 100 best companies to work for in America.

Trust and Profit

� Empirical connection has been shown between �trust� and profitability (Harvard Business Review �9/2002)

� Where employees believed their managers followed through on promises and demonstrated the values they preached, hotels were substantially more profitable��.

� A one eighth point (on a five point scale) improvement in a hotel�s score translated into a 2.5% increase in profitability as a percentage of revenue��.

Foundations of Trust in the Workplace

� Clear, consistent business strategy� Credible, consistent values� Committed management� Coherent systems (Seven S model)� Convergence between claims and actions� Communication� �FACTA NON VERBA�

Clear, Consistent Strategy

FOUR STRATEGIC DECISIONS

1. Focus on Single Segment 1. Focus on Single Segment

� to manage only medium size hotels of exceptional quality, designed and operated to be the best hotel in each location.

FOUR STRATEGIC DECISIONS

2. Focus on Service2. Focus on Service

� A redefinition of luxury

� Highly intuitive, personalized and comprehensive service

� Customer-employee contact became the most meaningful working relationship

FOUR STRATEGIC DECISIONS

3. Cultural Foundation3. Cultural Foundation� Instilled a set of Core

Values

� Mission Statement based on the Golden Rule

� Value system enforced without exception, beginning at the top

FOUR STRATEGIC DECISIONS

4. From Hotel Ownership to Management Services

4. From Hotel Ownership to Management Services

� Redeployment of assets

� Investment in management expertise � selection, training and motivation

� Brand reputation more valuable than bricks-and-mortar

The first Four Seasons Motor Hotel on Jarvis Street in Toronto which opened in 1961.

22

3745 50

6071

82

020406080100

1989

1996

1999

2000

2002

2004

2006

Adding Locations

Unit Growth - Worldwide

58 Existing (43 hotels; 15 resorts) 20 Planned (12 hotels; 8 resorts)

Geography - 1996

2111

41 North America

AsiaEuropeLatin merica

Geography - 2004

34

16

13

10

6

North AmericaAsiaEuropeMiddle EastLatin America

9000

2100023000

26800

32000

37000

0500010000150002000025000300003500040000

1989 1996 1998 2000 2002 2004

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Adding People

OUR FUNDAMENTAL BELIEFS

�Ours is a strategy for growth that is based on our fundamental beliefs: that quality has inherent value; that sound business is rooted in trustworthiness; and that most people, when treated fairly, respond in kind�

Isadore Sharp, Chairman, Founder & CEO

�Ours is a strategy for growth that is based on our fundamental beliefs: that quality has inherent value; that sound business is rooted in trustworthiness; and that most people, when treated fairly, respond in kind�

Isadore Sharp, Chairman, Founder & CEO

Credible, Consistent Values

Issy Sharp showing his �hands on� style of management on the construction site of the Four Seasons Motor Hotel

Our Goals, Our Beliefs, 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 wherever we choose to locate.

Our Goals, Our Beliefs, Our Principles

What we believe Our greatest asset, and the 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 contribution and importance.

Our Goals, Our Beliefs, Our Principles

How we behave We demonstrate our beliefs most meaningfully in the way we treat each other and by the example we set for one another.In all our interactions with our guests, customers, business associates and colleagues, we seek to deal with others as we would have them deal with us.

Our Goals, Our Beliefs, Our Principles

How we succeed We succeed when every decision 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 so offer long term benefits to our employees, our customers, our business partners and our shareholders.

THE GOLDEN RULE

!A universal ethic transferable to any culture

!A lasting competitive advantage

Committed Management

DEFINITION OF COMMITMENT

Commitment . . .

�being obligated, or emotionally impelled�

OPERATING PHILOSOPHY

Our culture drives

everything we do

!Strict adherence to operating philosophy is the key to the Company�s success

FOUR SEASONS TEAM

� Average length of service� Corporate Executive Team - 22 years� General Managers - 17 years

� Loyalty, commitment and experience of long term staff is key to our success

� Leadership group with considerable experience

� Promotion from within

Coherent Systems

We are in the �Service� Business

� �Service� is What our people do and How they do it when interacting with others (clients and fellow employees)

� �What� and �How� are definable Human Behaviors� Based on Attitude, Knowledge and Skill

EXCEPTIONAL SERVICE� Friendly, attentive, around the clock

support� Above and beyond the call of duty� Consistent service delivered everyday,

around the world, year after year��..

RECRUITMENT

SELECTION

REWARDS &RECOGNITION TRAINING

DEVELOPMENT& SUCCESSION ORIENTATION

PERFORMANCEMANAGEMENT

Building People Power

PROMOTION/TRANSFER

Selection

� Align with strategy� �Attitude� comes first� Define required key competencies� 4 Stage Interview process� �Behavioral Interviewing"- Based on defined

competencies

Training

� Align with strategy� On-Line (Standards)Program � Designated Trainers� Customer service skills � Emphasis on "Culture� throughout� Coordinated efforts

Performance Management

� Align with strategy� Identify key "Competencies" � "Good At" - not simply "Good Person�� Assessment starts early and never ends� Provide actionable feedback � Do it in time to make a difference� Potential assessment � Goals/processes/measures� Do it in time to make a difference

Development

� Align with strategy� Succession Planning� "Next Step" � Task Force Work� Planned Global Exposure� Multi-Ethnic Talent

Some key system components

� Goals, beliefs etc (Mission and Values Statement) � Operating Standards � Quality and depth of management� Behavior based interviewing� Orientation process/materials (consistent; multi-

lingual) � EmPact (employee handbook as a contract)� On-Line (Standards) training� Designated Trainer role� Employee Opinion Surveys� Management Opinion Surveys

Some key system components

� Integration with performance management� Integration with career management � Integration with incentive plans & goals � Regular visits from/contact with Senior Management � Open Door (inbound and outbound) � Service Quality External Audits (against standards) � Rapid response teams (glitch & crunch)� Personal response to complaints within 24 hours

Convergence between claims and actions

TODAY�S CHALLENGES

�Even as some hard�Even as some hard--hit luxury hotel hit luxury hotel chains are cutting service during the chains are cutting service during the

recession, Four Seasons stands out for recession, Four Seasons stands out for the quality of its staff and the the quality of its staff and the

exceptional lengths it goes to in the exceptional lengths it goes to in the name of Service�name of Service�

Worth Magazine � August, 2002

What People hear (the Claims)

� Pre-employment positioning/advertising� Orientation program content (usually in �pep� form) � Pre-prepared, professional and upbeat information � Positive opinions and experiences of fellow

employees� The basis of Hope and Expectation

What people see (the Actions)

� Who gets to join� Who gets to stay� Who gets to do the training � Who gets promoted� Who is chosen to lead key initiatives� Who gets off with what � Who is required to leave and why� What happens in tough times� These make clear "What we stand for�� The basis of effectiveness, culture and Trust

Communication

Orientation

� Align with strategy� Adequate lead time � Emphasis on Attitude, Service, Teamwork � Consistent global approach � Multi-lingual "Culture" Film� Heavy management involvement & "buy-in�� Re-orientation as needed

SERVICE CULTURE

� Cycle of challenge, teamwork, accomplishment

� Rewards and celebrations

� Commitment to excellence

Employee Opinion Survey � Trust Questions

� I have confidence and trust in my Supervisor� Management gives me reliable and adequate

information about the Company � When Management in my hotel tells me

something, I believe it

Performance Review - Trust Dimension

� Achieves the confidence and trust of superiors, peers and employees.

� Earns a reputation for fairness and approachability.

Foundations of Trust in the Workplace

� Clear, consistent business strategy� Credible, consistent values� Committed management� Coherent systems (Seven S model)� Convergence between claims and actions� Communication

The Tests of our Success

� How do our Employees feel?� How do our Customers feel?� How do our Business Partners feel?� How do our Competitors feel?

FOUR SEASONS TEAM

EMPLOYER OF CHOICEEMPLOYER OF CHOICE

!Sixth consecutive year on Fortune�s list of 100 best companies to work for in America.