Legendary Founder of the Ritz-Carlton: My Employees Are My Closest Neighbors

This is an iHeart Podcast. With Amex Gold, you can make dining out before the big event a big event. Hey, you made it. It's been so long. And earn four times membership rewards points on purchases at restaurants up to $50,000 per year.

And if you're running late, no problem. Oh, we gotta go. You get access to card member entrances at select venues so you can make it in time to catch the big win. That's the powerful backing of American Express. Card number entrance access not limited to Amex Gold Card.

Terms apply. Learn more at AmericanExpress.com/slash with Amex. Your business deploys AI pilots everywhere. But are they going anywhere? Or are they stuck in silos, exhausting resources, unable to scale?

Maybe you don't need hundreds of AI pilots. You need a holistic strategy. IBM has 65,000 consultants with Gen AI expertise who can help you design, integrate, and optimize AI solutions.

So you're not just deploying AI, you're scaling it across your business. Learn more at iBM.com/slash consulting. IBM, let's create. Taking over the helm of NBC Nightly News, a 75-year-old broadcast. It's a great responsibility.

Good evening, I'm Tom Yamas. You have to go out there to bring people at home closer to the story. Wildfires continue to be a threat. With that massive hurricane, comes the massive response. The best reporters in our business know how to listen.

And when you listen, you get the truth. For NBC News, I'm Tom Yamas. That's what we do every night. NBC Nightly News with Tom Yamas, evenings on NBC. Homes.com is the only place where you can find specialized neighborhood guides with the in-depth insider info home shoppers want.

Very in-depth info. Want to know if there's homes for sale in the area? We've got it. How long has a home been on the market? We'll know it.

Average lot size? Uh-huh. Proximity to local parks? Of course. Insight into your neighbor's divorce?

We're working on it. Homes.com. We've done your homework. Get this. Adults with financial literacy skills have 82% more wealth than those who don't.

From swimming lessons to piano classes, us parents invest in so many things to enrich our kids' lives. But are we investing in their future financial success? With Greenlight, you can teach your kids financial literacy skills like earning, saving, and investing. And this investment costs less than that after-school treat. Start prioritizing their financial education and future today with a risk-free trial at greenlight.com/slash iHeart.

Greenlight.com/slash iHeart. Uh Uh This is Lee Habib, and this is Our American Stories, the show where America is the star and the American people. And we love to hear your stories. You're the hour in our American stories. Send them.

to ouramericanstories.com. They're some of our favorites. And one of our favorite recurring types of stories to tell is the story of founders, of people who start things, who have the courage and the desire to do so. And it is no simple thing to do and we don't spend nearly enough time in this country talking about people who start things. Today, we're going to tell the story of a legend and leader in the hotel world.

Horst Schultz. and how he reshaped how service and hospitality are defined in the business world. standards that have become world famous. Throughout the years, Schultze worked for both Hilton Hotels and Hyatt Hotels Corporation before becoming one of the founding members of the luxury hotel chain, the Ritz-Carlton. in 1983.

Forst is also a Christian and tries his best to live by his faith. At home, And at work. Here's a story of how he deals with and thinks about. His employees, his company. and the founding vision.

of the Ritz Coral. We particularly in our d our industry we higher. Because our industry has over one hundred percent turnover. They constantly open jobs in the hotel and their jobs have to be filled.

So we so what do we do? We hire. And We said finally we're not going to do that, we're going to select. We're going to suffer through the open shop until we have somebody who actually fits into it. By the way, we went to the point talking an average of ten interviews before we filled the job, including dishwashers.

But we didn't feel them. And then of course, so we selected, we created a profile around each job category. And then hired against this profile, we know that was the talent really needed for this job.

So that was the selection.

So we went into major Careful selecting. kind of a funny example here is Dorman.

Well We we found After we were working and we interviewed our five top doormen, that they had all One thing in common. Their hobby was gardening Now Wow But otherwise they like to be outside in a dormant but what what would we have done in hiring somebody? We probably would have liked somebody that loves computer work in a room somewhere by himself and we put me in another dorm and vice versa. But so we did selection and then, of course, orientation, and that's a That was one of the keys again of our success. Absolutely, and I'm absolutely zealous about that.

that the orientation when I see orientation being done in nearly every company is totally wrong. what happens most of the time. Most of the time, the new employee, let's say it's a hotel, it could be any comp, any business. The new way that comes to work. The b the manager, the department head makes his We are a team speech.

Which is pretty pathetic, it happens everywhere. We're a team here. And then And I'm bought. What is a team? A team is a group of people who help each other to toward a common goal.

objective vision. But that's not being given the vision is not the goal is not being given. Just we're a team. And so Bill The no Veda Now after the team speech, the boss said, Now, Bill, Work with Joe over here, because Joe knows the ropes. Which is really funny because you're not in a raw business, but Somehow he knows ropes.

and we turn em over. And Joel The Veda that stands nine months in Nostra Robes tells Pill the new Veda. On the way to the kitchen, this company is no good. That's his orientation. What do we possibly expect from that employee?

It's crazy. We did our orientation We went so far. As to The first day orientation has to happen the first day. Because that is when people are willing to change their behaviour. Because the first data work is a significant emotional event when you can impact behavior.

So we didn't do it the second day, the first day. And So far that when We needed a certain job to be filled and we found an ideal A candidate We offered a job to the candidate, but he couldn't come to work until the day of orientation, but we paid him. The first day it had to be oriented. In the first day we talked about who we are. What is do we How do we treat guests?

How do we believe how do we say hello? Where are we going? What is the dream of this organization? We invited them to be part of the dream. not part of the function.

We hired them and oriented them to be part of a dream, the vision of the company, to be the leader in the service industry in the world in our case. join the stream. But we connect it to the motive of the dream. Also the first day. And here's why we dream about that.

because that will create respect for all of us. We connected ours to them. That creates opportunity for all of us. That creates armour for all of us. That creates, we define ourselves that way together.

That creates more income for all of us.

So that's why you have to join this dream. Adam Smith wrote a book besides Wealth of Nation where he identified that people cannot relate to orders and direction. And what do we do? We give orders and direction all day long. He said, people can only relate to objective and motive.

Vision and motive. Bang. There's Adam Smith. And and by the way, Aristotle wrote that in order to be fulfilled in life you need purpose. And belonging.

How about? The vision is a purpose that we give people. But I wouldn't give him that. Here is why and they can buy in. Run is just giving the direction, you tell them why, and bang, they buy in.

So it becomes a total different relationship, as you will, and total different buy-in and a total again, total different alignment. Because they know why, they don't know don't just know. You should because be What does a what do some bosses say? Why should I do that? They they answer, because.

Wow. That's how we treat human beings, that we treat our neighbours. We cannot get away from the fact. If I'm Christian, I cannot get away from the fact. I cannot dismiss.

My employees or my customers have not been my neighbours. I'm come on. It's kind of Pretty sad, I have to give it at least sometime thought. That I have to supposed to laugh my neighbour as myself in that incidentally they are neighbours. And a great job on the storytelling by Greg Hengler.

and his special thanks to Horse Schultze. for sharing the story of the Rich Carlton, at least one part, which is how to hire and motivate folks. And he tells a compelling story about how to do so. By the way, his book, Excellence Wins: A No-Nonsense Guide to Becoming the Best. in a world of compromise is a must-read for anybody leading anybody anywhere and it all starts with vision casting.

and motivating folks. to do their best. And my goodness, the other thing, clearly, if you've ever been to a Ritz Carlton, is service and service to others and having the mission of the company and the enterprise. serving the customer. and not the customer serving the enterprise.

By the way, I love the quote from Adam Smith, people cannot relate to orders and direction. They respond to vision. and to motive, and no finer words could be said. To hear some of the other Horse Schultz pieces, by the way, go to ouramericanstories.com, including the terrific one about his life story, an immigrant story, coming from Germany to the United States.

Well, to pursue his dream and the Ritz Carlton was not only his dream. but the tens of thousands of employees who work there. The story of Horshulte. Here on Our American Stories. Your dream getaway starts at the airport.

With Amex Platinum, you get access to the Centurion Lounge where you can find space to send off that last work email. Philip on premium dining. And finally, relax for up to three hours before takeoff. You might even wish your layover could last just a little longer. Flight to Mexico, now boarding.

Oh, that's me. That's the powerful backing of American Express. Terms apply. For more information, visit AmericanExpress.com/slash with Amax. Behind every successful business is a vision.

Bringing it to life takes more than effort. It takes the right financial foundation and support. That's where Chase for Business comes in. With convenient digital tools, helpful resources, and personalized guidance, we can help your business forge ahead confidently. Learn more at chase.com backslash business.

Chase for Business. Make more of what's yours. The Chase mobile app is available for select mobile devices. Message and data rates may apply. JP Morgan Chase Bank NA, member FDIC, Copyright 2025, JPMorgan Chase Company.

Homes.com is the only place where you can find specialized neighborhood guides with the in-depth insider info home shoppers want. Very in-depth info. Want to know if there's homes for sale in the area? We've got it. How long has a home been on the market?

We'll know it. Average lot size? Uh-huh. Proximity to local parks? Of course.

Insight into your neighbor's divorce? We're working on it. Homes are coming. We've done your homework. This is Matt Rogers from Lost Coach Reestas with Matt Rogers and Bowen Yang.

Have you ever felt that uneasy anxiety when the 4 p.m. hour strikes, the creeping meal-related distress that happens when you don't quite feel prepared? You know, dinner dread? Let's get rid of that unpleasant feeling forever with one word: Stouffers. No matter what happens, you'll have a dinner plan that everyone loves with Stouffers.

Some chicken enchiladas or a cheesy chicken and broccoli pasta bake is always welcome, whether it is plan A or plan D. Licious. Not gonna lie, I eat the lasagna once a week. And that's a fact. When the clock strikes dinner, think Stouffers.

Shop now for family favorites. Did you know that parents rank financial literacy as the number one most difficult life skill to teach? Meet Greenlight, the debit card and money app for families. With Greenlight, you can send money to kids quickly, set up chores, automate allowance, and keep an eye on what your kids are spending with real-time notifications. Kids learn to earn.

Save and spend wisely. And parents can rest easy knowing their kids are learning about money with guardrails in place. Try Greenlight Risk-Free today at greenlight.com/slash iHeart. This is an iHeart podcast.