Ep. 20: Horst Schulze on Why Getting Customers Is NOT The Most Important

In this episode, David sits down with Horst Schulze, Founding Member and Former President and COO of The Ritz Carlton Hotel Company, Founder of The Capella Hotel Group, Expert in Residence at Arch + Tower, and author, to discuss the 4 supreme objectives that every company should have, and why getting new customers is NOT your highest priority.

Mr. Schulze’s Bio:
A legend and leader in the hotel world, Horst Schulze’s teachings and vision have reshaped the concepts of service and hospitality across industries.

Mr. Schulze’s professional life began more than 65 years ago as a server’s assistant in a German resort town. Throughout the years he worked for both Hilton Hotels and Hyatt Hotels Corporation before becoming one of the founding members of The Ritz Carlton Hotel Company in 1983. There Mr. Schulze created the operating and service standards that have become world famous.

During his tenure at The Ritz Carlton, Mr. Schulze served as President and COO responsible for the $2 billion operations worldwide. It was under his leadership that The Ritz Carlton Hotel Company became the first service-based company to be awarded the prestigious Malcolm Baldrige National Quality Award — twice.

In 1991, Mr. Schulze was recognized as “corporate hotelier of the world” by HOTELS magazine. In 1995, he was awarded the Ishikawa Medal for his personal contributions to the quality movement. In 1999, Johnson & Wales University gave him an honorary Doctor of Business Administration degree in Hospitality Management.

Most recently, Mr. Schulze has been honored as a “Leader in Luxury” by Travel Agent magazine and its sister publication Luxury Travel Advisor.

After leaving The Ritz Carlton Hotel Company, Mr. Schulze went on to found The Capella Hotel Group. This luxury hotel company managed some of the most elite properties worldwide, and gave Mr. Schulze the opportunity to further define the luxury hotel industry, receiving countless awards and recognitions.

Today, Mr. Schulze serves as Expert in Residence at Arch + Tower, a boutique, organizational strategy consulting firm. He recently completed his first book on Excellence Wins.

Mr. Schulze’s Links:
Website: https://horstschulze.com/
Additional Leadership Content: https://needtolead.com/
“Excellence Wins” by Horst Schulze: https://amzn.to/3tRb8l5
Facebook: https://www.facebook.com/TheHorstSchulze
Instagram: https://www.instagram.com/thehorstschulze/
LinkedIn: https://www.linkedin.com/in/horstschulze/

Key Quotes:
1. “Verbiage and appearance is very very important. It establishes trust or distrust in a person’s subconscious.”
2. “Its easy to give hospitality to everybody.”
3. “The hospitality part in any business is essential.”
4. “Service is not about you. Service is about the other.”
5. “You should move heaven and earth to make sure the customer is happy.”
6. “The greatest driver of eventual loyalty is the caring piece.”
7. “The product is not creating loyalty.”
8. “Loyalty is nothing but trust.”
9. “Trust is not created with a product, its created with the relationship moment.”
10. “Taking something away from the customer is not efficiency.”
11. “Hope is not a process. Hope is not a strategy.”
12. “Behavior cannot be taught after you’re 16 years old, unless there is a significant emotional event.”
13. “A team is a group of people that have a common objective.”
14. “Excellence is never an accident.”
15. “How can I do better?”
16. “We are all here to serve our fellow man.”

Links Mentioned In The Episode:
“Excellence Wins” by Horst Schulze: https://amzn.to/3tRb8l5
“The 7 Habits of Highly Effective People” by Stephen R. Covey: https://amzn.to/39cNbNi
“Critique of Pure Reason” by Immanuel Kant: https://amzn.to/2QD9vJB
“The Effective Executive” by Peter F. Drucker: https://amzn.to/3d3goLR

Buy David’s NEW book Trusted Leader: https://www.trustedleaderbook.com/

David’s Links:
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Show Transcript

David Horsager: Welcome to the trusted leader show it’s David Horsager, and today I have an enormously special guest, and I just want to show you because you might not see it, but I don’t read everybody’s book page to page cover to cover highlight dog ear and.

David Horsager: Take the cover off so i’m going to keep that hidden for those that aren’t watching the video and just listening i’m going to just read a little bit because I want to get this right.

David Horsager: Horst Schulze he’s a legend and leader in the hotel world he’s one of the founding members of ritz carlton hotel company.

David Horsager: He created the operating and service standard that have come, it has become world famous.

David Horsager: During his tenure at ritz carlton he served as President and CEO later he was on the board, I know he was responsible for 2 billion and operations worldwide under his leadership ritz carlton became the first service based company, some of you know how big a deal, this is.

David Horsager: To be awarded the prestigious Malcolm baldrige national quality award twice.

David Horsager: he’s won numerous awards, including corporate hotel you of the year right hotel magazine.

David Horsager: He cow metal he was recognized as a leader in luxury by travel agent magazine after leaving ritz carlton he started capella hotel group and he’s done a whole lot of other things he’s now.

David Horsager: An expert in residence at arching tower his first, and I must say excellent book, it is called excellence wins I wish had the real cover you need to see it we’re going to give you all the ways, you can find it and get it and i’m going to start with one more personal note, to maybe.

David Horsager: My best friend Joe Campbell we started our businesses, about the same time, he said when he took his company from nothing to 11 million.

David Horsager: He said, if he says one thing he built it on it was on Mr Horst Schulze these principles we’re going to get into those today.

David Horsager: My friend has now started a second company, and you can see the thread of the key principles of exactly West horse teaches in his second company so let’s get into it please welcome Mr Horst Schulze.

Horst Schulze: David it’s nice to be with you.

David Horsager: Well, I it’s it’s our honor you know I believe you know many people here have chick fil a these days, and I believe you can be credited with the frontline folks at chick replacing my pleasure is that true.

Horst Schulze: Yes or no interesting enough, I was meeting with the chick fil a play executives and then a consulting time meeting and day they found a true it.

Horst Schulze: was sitting in the background, and I said, look at it, you have to think about the work that divorce of your employees use instead of saying hey.

Horst Schulze: When you say welcome, I know, good afternoon, and so on, there because it’s much more professional and you were establishing yourself as more professional and instead of saying saying okay.

Horst Schulze: Why don’t we add ritz carlton say my pleasure now that’s not good for you, because your market segment is ours is a pentium market segment, you should use other words let’s let’s decide what we’re going to use and everybody agreed.

Horst Schulze: Except after little discussion in the background truth, the founder said, excuse me, I, like my pleasure.

Horst Schulze: I said.

Horst Schulze: I mean to Kathy, yes, but not for your market segment you shouldn’t use it, and he said I like it, that was it is.

Horst Schulze: Different I was discussing the verbiage generally that you should have when you deal with the customer, no matter who the customer is.

Horst Schulze: You know it very important when I was in my business, you know I hire Center syndicates and three days later they’re facing the chairman of the board of the Bank of England.

Horst Schulze: How do I make sure that that moment of being the action works well and elegantly and that’s why I said verbiage and appearance and all that is very, very important, it establishes trust or distrust in a person’s subconscious mind is you.

David Horsager: Absolutely, and just a note, you know chick fil a people don’t know it.

David Horsager: Many don’t, but if you look at the year your annual revenue.

David Horsager: per store of a taco bell it’s just over 4000 per store average, then you get up the market chain, a little bit 1.1 million to.

David Horsager: Some of them that you get you know burger King 1.5 million average you get to the big ones to have them stand out, and that is mcdonald’s and panera there at 2.5 million ports per store average except for one and they don’t work on Sundays.

David Horsager: And they you know it’s just a remarkable story last I looked and talk to the executives that chick fil a it was average per store revenue annually was $4.4 million.

David Horsager: that’s rivaling everybody wait.

David Horsager: And he said what’s that.

Horst Schulze: Everybody that blow away everybody.

David Horsager: Everybody by almost by double to mcdonald’s and and one thing he said was them, you know hey it is just chicken it’s it’s not laced in you know addictive drugs like people think it’s just chicken but it’s we win on training.

David Horsager: And this is why I think it’s a connection to what you’ve done there and your your whole philosophy, because he said we people feel differently it’s the same they have the same frontline people as those that work at.

David Horsager: mcdonald’s they don’t just come out of the womb saying my pleasure, we train them.

Horst Schulze: So well listen but, by the way, I that was an argument I had been some of it is the store manager trusted store that their own hop hop owners and managers.

Horst Schulze: That you would they said well most I talked about hospitality with them and what that means.

Horst Schulze: About coming on fatality just have one you don’t understand, most of our business is trying to do, you cannot get hospitality yeah well why not it’s only seconds and it’d be an argument so funny so let me, let me work the the ticket window so i’ve worked it for a day.

Horst Schulze: And and and it’s easy it’s easy to give hospitality to get everybody in the hospitality part in any business is essential because he had this.

Horst Schulze: But David you or anybody listening here you’re in your office when there are some other guys around so let’s go for lunch, where do you go for lunch.

Horst Schulze: With the food is good is not true you’re going to go where you felt good.

Horst Schulze: That includes the food.

Horst Schulze: But it includes the hollow the surrounding the clean and ssp all the pieces that make up hospitality is included there and it’s it’s the food itself it’s not true it’s only part.

Horst Schulze: Absolutely hospitality.

Horst Schulze: is very important that that hospital that moment of saying hello, that moment of creating an opinion in the other end the customer and so on, is essential.

David Horsager: In fact, I heard someone say when they were they were asking let’s not just step on chick fil a again are talking about them, but they said, well, the reason I go there is because I feel differently.

David Horsager: it’s clean it’s this and that, but you know.

David Horsager: I think it was my Angela who famously said.

David Horsager: Basically, nobody cares what you said they don’t care what you did they just care they remember how you made them feel, and let me tell you, as someone who speaks or has.

David Horsager: Until the pandemic flown about 200 flights year and speaking about 100 conferences around the world, I know what i’m gonna get when I get to step into a ritz carlton, and so I trust the brand I trust, what how i’m gonna feel i’m gonna one mentioned, so I.

David Horsager: At one time in my life I lost about a decade ago 52 pounds in five and a half months it changed my workout scheme it changed how I eat, so I was speaking at a big conference at a ritz carlton.

David Horsager: and afterwards in the evening I went down to the front desk on my way up to my room and I just said, where was the workout facility again and I just arrived right before I spoke, and I was going to.

David Horsager: go up to my room and go work out because I was committed to working out, no matter what time it was.

David Horsager: I suppose it was after the event and signing books and all these things and he’s the gentleman said.

David Horsager: The workout facility is closed, but I would be happy to open it for you, Mr horse soccer what time can I meet you there and I went up got my.

David Horsager: You know workout clothes on and I don’t know 11 or so at night he opened at the ritz carlton the workout Center just for me to get my workout in right.

Horst Schulze: Well, well at the moment, the moment been me to customer service stops service is not about you services, about the other.

Horst Schulze: is doing the best for the other person it’s not about you anymore in that moment it’s about the customer and you should move move heaven and earth to make sure the customers happy.

Horst Schulze: Right that’s our job, I mean let’s face it, hotel business that’s all we do we don’t we don’t build anything I mean if you have a shoe store that’s also all the do because they don’t make shoes, in fact, that is called hospitality.

David Horsager: But somehow you do it differently.

David Horsager: So let’s get into that because you created something totally different.

David Horsager: than everybody else.

David Horsager: And I want to remind everyone and everybody will see it in the show notes trusted leader show.com but excellence wins.

David Horsager: If you weren’t just listening and you were actually watching this you would see, I have this book dog eared and outlined and and.

David Horsager: As you know, I read a lot, but not always like this, and so I want to just touch on a few key ideas here, you know you talk about three universals tell us about those.

Horst Schulze: Well, the expectation of the customer, I guess that’s why we’re talking about.

Horst Schulze: What it is it’s a universal the market, you can look at the market over there, what is a mother or potential market and you get two or three things for sure that one.

Horst Schulze: So you better have processes and systems on measurements you’d be delivered and does this subconscious expectation like what you will have anybody hits your one, the product of the defect free you know.

Horst Schulze: Taken I always use an example of a bottle of water, if you buy a bottle of water you don’t want anything to swim and day you expect subconsciously that it is defect free.

Horst Schulze: Number two very important, by the way, and you have to underline it 10 times is timeliness everything today is very important that your timely responses that you.

Horst Schulze: You won that battle of more than when you want it and you want an immediate answer to your email etc to 10 minutes, so not effect.

Horst Schulze: terminus and number three what you want the one the people that give it to you the bottle of water or whatever it is to be nice to you.

Horst Schulze: to care for you now here’s the here’s the crazy thing and i’m invite businesses don’t get that the greatest driver of eventual southern section adventure loyalty is to caring piece.

Horst Schulze: Which means you have to you have to process and make sure that is excellence and relationship between your employees between you and those that buy from you.

Horst Schulze: that the product is not creating loyalty.

Horst Schulze: Loyalty is nothing but trust they trust you that tree terms of customer but i’m fast as a deep dive on a distrust you.

Horst Schulze: Who are who are who are terrorists against your company now when you go on social media did whatever destroy you.

Horst Schulze: don’t need a loyal done it is satisfied one they got nine next door if they think there’s a better deal and unless the one that are loyal to you when a loyal to trusting you and trust is not created with the product is created with the relationship moment.

David Horsager: Only the relationship, you say this in the book page 77 I highlighted it every relationship in life starts out with distrust.

Horst Schulze: that’s correct in the moment when I meet you and I don’t know we I know i’m not going to trust you with anything I mean, and of course it moves right away to neutral.

Horst Schulze: It depends on the subconscious decision that I make about you that and that depends on how we sell alone and how my thinking is how we look, and so on, we can’t help that.

Horst Schulze: Now society tells you other bs and don’t say you should be looked at in this ridiculous, the fact is a human being does how we react react distrust it moves to neutral.

Horst Schulze: And and in business or in relationship you try to move it as possible as fast as possible to trust and that depends on your behavior and how you think.

Horst Schulze: And it’s that simple know if you don’t mind for a moment.

Horst Schulze: Please that’s kind of human excellence human excellence.

Horst Schulze: Is is for trump is number one if you do your very best in your function studying fulfilling life number to do your very best in relationship.

Horst Schulze: And of course number three do your very best morally if I put those things together, but it’s the relationship piece that piece, which creates opinion and others about you or your organization.

David Horsager: Number three you talk about morally and it seems like we have some challenges in our world today, and I think it’s interesting, even in the book, you talked about the Ben addicting model that you went by of you know, treating everyone as if they were Christ.

David Horsager: Well, seeing them them this way tell me about that.

Horst Schulze: But yeah well at Benedict and you understand the bending from the monasteries in Europe and the monasteries were used as shelters.

Horst Schulze: When you travel through the land and he wrote to his aba is in 500 as one, the first TEE teaching that I learned I could find on teaching hospitality is that if if a traveler arrives treat him as if it was Jesus himself, in fact, if you’re the Abbey you should wash his feet.

Horst Schulze: and end, in fact, if you they are be and the trouble is by himself and you are on a fast break the fast and have dinner with them so he’s not by himself now, if that is hospitality how close, can I come to that today.

Horst Schulze: Depression myself know.

Horst Schulze: what’s up.

David Horsager: yeah How does that play out in a ritz carlton or your work today.

Horst Schulze: But my birthday, but, by the way, after it’s called formed a group called capella which is sold little bit over a year ago which couple of hotel in in volume was just bought the best hotel in the village.

Horst Schulze: So the philosophy works everywhere and it worked in five continents in in ritz carlton five continents.

Horst Schulze: Everywhere, we were when I was running the company, we were the Leader absolutely there.

Horst Schulze: And how does it, how does it work out the same way you come as close as possible to make sure that you’re creating is exceptional, because, is it is in that initial content.

Horst Schulze: When a customer makes a decision about you subconsciously now he or she may change that decision going forward.

Horst Schulze: But there’s a pretty deep decision being made in the initial content, so we taught, for example, no matter what you’re doing.

Horst Schulze: If a if a customer comes within nine feet three meters you look up you do stand up you look them in the eye and said.

Horst Schulze: Good afternoon welcome welcome more whatever so you establish this positive in their mind immediately, which makes them feel respected.

Horst Schulze: And looks they make them feel about that you are a professional in what you’re doing in your service world.

Horst Schulze: So it’s very important moments, and always say and again, and instead of saying okay when it goes one sometimes i’m happy to do that it’s my pleasure.

Horst Schulze: Instead of so we had about 20 points which we taught, which were non negotiable that had to happen any customer in the action and the head to happen superior to anybody else who was in the business and we taught we keep on teaching that reminding them every day of it.

David Horsager: I love that because you know, one of the pillars of trust is consistency if you’re late all the time i’ll trust you to be late, if you.

David Horsager: Speak you know it’s, the only way to build a reputation or brand is consistency and I know you teach those every single day, but what about i’ve got a complainer.

David Horsager: And i’ve got someone whining and you have a whole process for how you deal with a complaint.

David Horsager: How do you do it.

Horst Schulze: Well, we call that problem resolution in fact every employee was certified in problem resolution because, again that tree terms of customer remember that they did the terrorist.

Horst Schulze: dissatisfied, and the ambassador your Ambassador customer and I want them to all be Ambassador now if the if the customer has a problem there is a potential terrorist.

Horst Schulze: So in that moment we taught our employees, if the guest has a complain to first of all them to follow five steps up well number one listen very carefully.

Horst Schulze: Listen attentive number to empathize.

Horst Schulze: Number three apologize number four make corrections when necessary number four delight.

Horst Schulze: With that moment, if you have a complaint about something to the boss point the morning hypothetically that a busboy after and said I feel so bad about it, I buy a breakfast now, the key element in the apology is forgive me not forgive them.

Horst Schulze: Because we know that over 96% of customers that have a concern and complain didn’t want anything they just want to get rid of their frustration, so we have to show that we’ve taken.

Horst Schulze: empathize forgive me i’m so sorry I make sure it will be corrected, yes and but not said well they do it all done in them, I don’t have I don’t have nothing to do with a TV in your room i’m a busboy know and and why wouldn’t your all your employees be told that way because.

Horst Schulze: You don’t want the customer running into situation where we said, well, I tell them happens all the time, and you and you make them a terrorist instead if the buzzword says, please forgive me here in movies, are immediately to being an ambassador is amazed.

David Horsager: And, and you give leeway to for everybody it’s trained every day, by the way, every single day, these 24 principles are trained, so people hear them everyday people and and one one noteworthy.

David Horsager: piece was when you when you said you give everybody a up to $2,000 to decide themselves how they can take care of somebody and and all of a sudden you’ve got a whole team buying metal detectors and finding a wedding wedding ring right that’s.

Horst Schulze: What I have to laugh every time this subject comes up because you have that ascend David that sounds like a story today at that time, and I said every employee has to write up to $2,000 it wasn’t a nuclear bomb went off.

Horst Schulze: The investors everybody’s declared me insane do want to put me in an asylum, I mean you want us boys, to give $2,000 away everybody to dorman know I want them to keep the customer.

Horst Schulze: At one to tell them, I want to tell each employee, I trust you with that decision so.

David Horsager: This is good.

David Horsager: This gets well to your.

David Horsager: Your for supreme objectives and this change the way I thought about business because number one isn’t get customers number one is what you talking about right there, and that is.

David Horsager: Our customers tell me about the for tell our audience about.

David Horsager: This for supreme objectives.

Horst Schulze: Think about if you’re on your organization, what are the four principal things that you have to process it behind an organized and and misha and so on.

Horst Schulze: For me, absolute number one and it cannot be encroached on by to dream for absolute number one skip the customers that you’re here.

Horst Schulze: And, of course, was one decision that we made Okay, we make sure we keep them and, in particular today.

Horst Schulze: You business people, you must understand that, today, a dissatisfied customer can go out and destroy you on the Internet and social media so number one keep the customer in every employee should be aligned to that that’s called alignment number two What do you do find new ones, of course.

Horst Schulze: But much to dissatisfied ones that you have to the loyal ones at here number three what you do get as much money as it came from the customer oh without without losing them, in other words you’re giving value.

Horst Schulze: And it has to be very clear charge as much as you can my goodness we have some hotels now with capella and it thousand dollars a night and so on, and we are busier than anybody else.

Horst Schulze: Because you’re giving value for it so number one people number two new ones number two make sure you get money number for efficiency.

Horst Schulze: Efficiency you don’t do it blowing money into it efficiently by will.

Horst Schulze: Not cost cutting because that’s what everybody is an expert in particular in my business that comes to order from from from corporate office somewhere in the words.

Horst Schulze: To a hotel somewhere in the world and saying we need more efficiency and what do they do, they take the flowers away from the customer.

Horst Schulze: Taking something away from the customer is not efficiency it’s cost cutting.

Horst Schulze: Looking at your own processes and make sure, without changing the outcome, you save money that is efficiency that you do that by eliminating your own mistakes, etc, etc.

David Horsager: I like that you know these four and there’s so many people that talk about getting new customer, how do you get clients, how do you get clients and it’s so much easier.

David Horsager: better and more fun to keep customers and I just I love, where you start with this, because it made our thinking, are we really taking care of those that we have well and that you know changed our business and they tell others.

Horst Schulze: into one single I think I think you have a hardware store I don’t care.

Horst Schulze: And it should be everybody’s objective in that store that works for you and yourself that as soon as somebody walks in there you convince them.

Horst Schulze: By you caring that it will come back, even if they don’t buy anything, this time that you’re there for them that you respect them.

Horst Schulze: And then you have to look at that and then process this in your hope is not a process hope is not a strategy, you have to make sure processes are graded by selecting the right employee by teaching them right by reminding them by role blame for them everything.

David Horsager: I like what you said, also in the book about we don’t hire we select in fact you want to you select at least you got to have 10 people to select one.

David Horsager: But how do you get it right so many people I was just reading a study recently that said, people get hiring executives are right right, whether they do assessments or not about 51% of the time.

Horst Schulze: that’s correct that’s one guess what let’s think about that what, if I can move it to 55% i’m winning have a better team, and that was my end that I was really struggling on that for years and i’ve tried all kinds of things to Villa run into an organization on helped me.

Horst Schulze: To assess what talent is needed in each job that I had, and then it says, be able to ask question assess if that talent exists in the person who applied for the job.

Horst Schulze: In and and it turned out when they said don’t hire them a 90% right if this a higher they were 70% right but it’s better than 5050 so I spend the money, I wanted to have people that I want to have the team that I know is a better team that they have my competition.

Horst Schulze: And so we use this exclusively very careful from dishwasher to Vice President, everybody, but but what’s the result get Let me give you one result the hood all if there’s hotel years on the restaurant people listening, you know that our industry has over 100% turnover he.

Horst Schulze: did so with other what’s the knowledge books right out the door again we produce our when our turnover down and ritz carlton to under 20%.

Horst Schulze: by the industry stood a 100% so my the knowledge was staying inside.

Horst Schulze: and

Horst Schulze: Of course, the saving money of that long term, because in the beginning and cost money, but long term keep it you keep more customers save money, you have knowledge.

David Horsager: and keeping them employees, I mean if you.

David Horsager: haven’t figured I don’t know.

David Horsager: For sure the hotel industry, but I met in many industries even frontline that the cost of term retention of someone you want to keep is at least two and a half times hiring cost.

David Horsager: Of course you’re saving millions right there.

Horst Schulze: It goes without saying, does the right thing.

David Horsager: So you know you’re an expert in customer service and in people and relationships, but there are some difficult people out there.

David Horsager: You talked about something in the book that I was fascinated by because this one I liked about the book it wasn’t this pollyanna just this or just that it was a balance big view but you know they’re jerks just want to take something away from you and you call it the jerk factor.

Horst Schulze: that’s right that’s right well it exists, you know I mean we we particular in our industry be like to say, say every guest this right, and I will tell all everybody in our organization every guest is right, all the time, but I also know that’s not true.

Horst Schulze: it’s just it’s not except I look at everybody knows that I delegated I mean I delegated everybody up to $2,000 etc, etc, decision making.

Horst Schulze: But I didn’t delegate that you could say a customer is a jerk because otherwise pretty soon, if you have a problem with the customer you’ll need it wasn’t you, it was the customer and that’s not a decision I could delegate, so I said, the only one in the organization.

Horst Schulze: On into hotels around the world, and the only one that can make a decision, if a customer is a jerk or not, and I understand that your record that the church vector and it happened very seldom in I tell the story in there when the guests called an admin.

Horst Schulze: When my manager called and said this guest host, if you like, and I know we cannot draw guest our total.

Horst Schulze: But this guest is impossible, he is everything that happened, including he pinched some ladies and the club lounge.

Horst Schulze: I said okay that’s it you’re now here’s what you do you throw them out, but you do the ritz carlton way.

Horst Schulze: You doubled lock his room, you have a limousine ready for him, you ever reservation ready in another town and you tell them look, we are here.

Horst Schulze: To make sure every guest is happy, you are obviously not happy because he was complaining every day now, we have tried everything we don’t know what else.

Horst Schulze: The last thing we can try now is this we’ve got another hotel for you and beautiful limousine and we have people standby to help you packing and carrying everything down and and and they will get made sure that they have a beautiful room for you so you’re you’re going.

Horst Schulze: Once I knew, you would find me that’s.

Horst Schulze: Clear defined you and then, when I answer the telephone there was somebody screaming I will own your own show you, I know that was Mr Jones.

Horst Schulze: Jones when you Sue me, I will be in the courtroom with the latest that you’re pinched alright so go right ahead it didn’t Sue he showed up again in another hotel of ours fascinating and same thing happened same thing.

David Horsager: And he got another hotel right another limo ride out of it.

David Horsager: Well, I use something interesting you know we talk all the time, about how do you build trust in crisis, how do you build trust in the midst of changing one.

David Horsager: really important thing, even before you know these social you know certain social unrest certain certain pandemic and all these things.

David Horsager: we’ve talked about it’s how you do it, many people complain about change change is going to happen, but how we deal with people how we deal with it matters I watched a.

David Horsager: Big company, you would know we would all know that, basically, the way they laid off 1000 people ruin their trust for a decade and I watched another.

David Horsager: CEO friend of mine here, you would also know that brand and in the midst of the pandemic laid off 2000 people and kept trust with them and.

David Horsager: The brand and his leadership, because of the way he did it, so I think the big big takeaways years how we do it matters in how we keep or build trust in the midst of change change is going to keep happening.

Horst Schulze: Or, in difficult circumstances, what is strange to understand people, all of a sudden change their vision and their values.

Horst Schulze: If you don’t means they never, never really existed many months in a cannot change, no matter what the situation is if, in the case of capella we be said, we will be defined a service organization in the world.

Horst Schulze: In the case of wisconsin’s we said, our vision was we will be the finest and brand and pointless hotel company and abroad, well just because it is a crisis, I don’t change that objective and we said here’s our values.

Horst Schulze: With respect everybody, etc, etc, that change doesn’t change either So if I respect everybody all all investors guests and employees, I have to do what I do with total respect cyl installed total caring or I had no values, to start with.

David Horsager: You have you talked about this.

David Horsager: is interesting because it jumps to something that you called the most important speech and your your way of onboarding is very significant, as far as getting people bought in in fact.

David Horsager: You said something I want to see if I have it human beings cannot relate to orders and direction they relate and respond enthusiastically to motives and objectives and that kind of leads into your most important speech tell us about it.

Horst Schulze: yeah yeah well, the thing about it is you know.

Horst Schulze: People what what you want, from your employees in no matter what organization yeah part of what you want, for them is the right behavior the right audience to the right behavior but behavior cannot be taught after 16 years old.

Horst Schulze: Unless there is a significant emotional event when an alive in the first day of work is a significant emotional event and what do we do they arrive we let them fill out some papers.

Horst Schulze: And done that Minister Max is pathetic speech of being a team, we are a team beer whoa wait a minute, without giving an objective.

Horst Schulze: Because a family or family or your family.

Horst Schulze: yeah and.

Horst Schulze: What what is a team, a team is a group of people have a common objective and help each other to, but the objective, but we don’t give him the objective.

Horst Schulze: After all, they’re only here to fulfill a function that was the first mistake we should try them to become part of us.

Horst Schulze: And not just fulfill a function so employed come in and done and then after making our our speech, we said, the new way the bill work with Joe over here, he knows the ropes the rope speech, I mean.

Horst Schulze: So pathetic everything I mean you’re not enrolled business, so instead of telling them, the first day who you are showing me and what we do join me in the dreams and here is the dream that we have a i’m giving them purpose.

Horst Schulze: Because even even Aristotle said, people to do well in life need purpose and belonging, so why wouldn’t give it the first day, given the purpose tell them why tell him how our this our our purpose our dream of becoming known as the finest will benefit everybody in fact will define you.

Horst Schulze: You will the individual employee, and why not explain it all and and explain the first day align them to the sinking of our customer.

Horst Schulze: connected to the thinking and the being of the organization now they’re part of something rather than just fulfilling the function, I always said, David, the Chair, which is sitting is fulfilling a function but we’re dealing with human beings.

Horst Schulze: We have to recognize that we’re not anti terrorism anymore 200 years ago, or whatever.

David Horsager: I love it I love it well it’s time I want to honor your time you’ve been.

David Horsager: immensely generous.

David Horsager: But i’ve got a few kind of a lightning round here that we go rapid fire through, and then I want to leave you to say anything you really want to will get all the information here in the show notes on the book and where you can.

David Horsager: hear more about and learn from course schmaltzy need to lead.com you can find them on linkedin also but you’ll see all that at the show notes trusted leader show calm, here we go what’s your favorite book or resource right now.

Horst Schulze: Right now, I mean some favorite books for me a minute David I love to reach the think as of the world, the ones that make it different.

Horst Schulze: from Socrates to Plato Aristotle to come to everybody, the reason why I like I like to read them is i’m still trying to figure out.

Horst Schulze: Why, they were able to think different than society was thinking at that time at that time.

Horst Schulze: And, and particularly today i’m very concerned that people don’t think anymore people respond to influencers like TV or whatever, but they don’t think himself anymore and.

Horst Schulze: favorite book in business was always Stephen covey I think Stephen covey.

Horst Schulze: impacted me, and I think it was one of the best organizational thinkers in the last century so much drucker Peter drucker so Those are the things.

Horst Schulze: We would recommend to look at and and but, but how do we did I tried to read Arizona, where I learned how to think a little bit different say I just read again current.

Horst Schulze: philosopher, think about it, he lifetime, he was pondering morality.

Horst Schulze: I don’t think anybody today he thinks about it for two minutes.

David Horsager: I think you’re speaking my language, I used to be, I used to be a ethics professor in the class I most thought was philosophy of ethics that so con you know all these I think I think we have a huge problem today, I mean we’re jumping off the grill here but.

David Horsager: The whole the whole thing of morality and how can we get people to think differently, and not just one way part of that we just put in this we just put in that my brother much wiser than me the economist and.

David Horsager: You know CEO of some significant companies, what I love about him is he lives, way below his means in many ways, and gives and gives but he’s um it’s a interesting story, but he what he often says is.

David Horsager: You know we’re in a more critical world than we’ve ever been in without the ability to critically think.

Horst Schulze: So, so when does when we don’t think.

David Horsager: Right now we’re critical throw darts.

David Horsager: Literally sit in the basement and throw a social media dart here and then complain there but not exactly.

Horst Schulze: But that’s why i’m that’s why i’m pending and hope nobody misunderstand what i’m going to send out that’s why i’m in panic when I.

Horst Schulze: When we move to what socialism, because socialism doesn’t allow you to think if you look at all, all the Eastern bloc for 60 some years, not once you tell me one thought that came from there.

Horst Schulze: Because the only ones that benefit from socialism, is the political elite that arrest or not thinking anymore, they cannot think because everything is done by the government.

David Horsager: I think that the whole thing, but that that deceptive.

David Horsager: socials in depth deceptively puts the power in the elite and people think it spreads out.

Horst Schulze: You know, it is all in the prominence.

Horst Schulze: Only the political elite it’s not orange stable suffer after a while, simply because the money has to come from somebody.

David Horsager: Right wow there we go read the thinkers of the of the past and learned a thing, this is a takeaway for everybody, think about morality.

David Horsager: One one before we go one best piece of advice, and I do have two more questions for you, but one best piece of advice or quote.

Horst Schulze: it’s not really good I mean if I give you at this moment, and probably will give you advice in 10 minutes, but right now i’m thinking you know who are you again what is excellence excellence is never an accident it’s always the result of high intent and hard work.

Horst Schulze: Forgive me, be sure.

Horst Schulze: What whatever you’re undertaking and if it is 10 things today that you have high intent in what you’re doing and work hard to do it so and excellence, as I said in a thing, no matter what thing, no matter what saying if it works both which was created.

Horst Schulze: But excellence in a human being, that is amanda advice here is, if we do excellently your very best that means you’re not perfect in all the functions in your work function and do your very best in your relationship.

Horst Schulze: And do your very best moral morally now, I recommend that you try to continuously improve in those three areas and the way you do it and give a tip and even dude you will dramatically improve.

Horst Schulze: For instance, relationship, which is very important, after every interaction or after at least one a day in the action you have another human being, stop and say how could that on a better.

Horst Schulze: Ask yourself, maybe once once a month.

Horst Schulze: When you come home from work, how could I have done my work better.

Horst Schulze: question is morally, how we can do better not to me, but my dad is in and i’m not trying to sell any part of anything here to me, I have to add.

Horst Schulze: I have questioned myself how can I be spiritually better, but together now if you work on that your your your move yourself in a mode of continuous improvement as a human being and you should do the same thing that you’re with your organization continuous improvement.

Horst Schulze: Better.

David Horsager: How could we do better the quote of the day, at least, of the last three minutes, there are so many excellent excellence is never an accident.

David Horsager: or sheltie you have done many things we would say on stage and off as a public leader and with your family and in life as a generous giver what what’s what’s one thing left for you or one hope for the future you’re thinking about down the road.

Horst Schulze: Well that’s the next generation and I tried to impact the next generation through children to venture into others.

Horst Schulze: i’m i’m we are all when you come to a certain age you’re worried about an action right what is going to happen, but that is certainly to impact them in some way and teach and be available and so on, and and teach as much as I can i’m consulting work and i’m a mega them.

Horst Schulze: and point to truly teach and help success and and but but never forget never forget that that we are all here to serve our fellow men.

Horst Schulze: And if that comes into your mind in your business your with your business, maybe what you’re doing self Parliament you’re going to have a better business and, of course, you have better people around you it’s that simple, but for me it’s very much and for my wife to get that.

Horst Schulze: finishing developed by serving as much as possible than our next generation.

David Horsager: Well, one more question for you, before I do and just to honor your time and our great time together, of course, in the show notes trusted leader show.com you’ll see.

Horst Schulze: All the places and.

David Horsager: ways to connect with Mr schmaltzy you’ll see some of the tips and takeaways.

David Horsager: And i’m just want to recommend genuinely recommend the book excellence wins some some days I almost want to say it’s you know love wins it’s like you it’s excellence that really cares about others that’s the excellence you speak of in so many ways.

David Horsager: But Mr sheltie website Horst schmaltzy.com HR St.

David Horsager: For those listening just on the podcast although you can get all this everywhere else excellence wins, you can get that everywhere books are sold need to lead.com you can find some.

David Horsager: Important valuable content and be licensed in this way of thinking and applying the great work of Mr schmaltzy and, of course, you can find them on linkedin and other places, but I want to thank you it’s the trusted leader show who’s the Leader that you trust and why.

Horst Schulze: Well, I said look back that many right now in interesting now i’ve just looked at that, and in a moment, politically and that would be more Merkel in Germany and here’s my.

Horst Schulze: Steady not a fast decision they’ll serve it decisions not erratic now I wouldn’t vote for.

David Horsager: I would not vote so tell me about that.

Horst Schulze: Well, I think that should it should be much more aggressive progress ensure me issue, but you can trust it.

Horst Schulze: You can absolutely trust them and she comes and she comes she doesn’t change our mind if if every American leaders made with milk butter, because of the pipeline.

Horst Schulze: But she doesn’t change her mind she made the decision and that’s it or many, many, many other things she goes up the beauty, you can you can rely about and how inches big square progression and she goes out there.

Horst Schulze: And and telephone calls and zone, you can trust that she spends her values totally totally and that’s very, very aware of it, particularly.

Horst Schulze: Particularly in in and politicians.

David Horsager: What do we do in America.

David Horsager: what’s our way forward.

Horst Schulze: I mean it’s and, believe me, this exceptional country this exceptional the pinus piece of real estate in the world, the finest thinking in creating that piece of real estate into country.

Horst Schulze: We should really stop for a moment and in attacking each other, stop in review, who we were.

Horst Schulze: And then stop for a moment, where we really want to be, do we really want to be a loser country which we’re trying to somehow be.

Horst Schulze: Listen, if the recipe works if the recipe creates the finest meals that meal in the world don’t play around with it buddy because it may not be the finest anymore.

Horst Schulze: it’s amazing it’s amazing this country is absolutely amazing and to to play games with this is stunning, to me, I can only say I used to be.

David Horsager: well.

Horst Schulze: We could go on for it.

Horst Schulze: Give me.

Horst Schulze: Mad at me.

David Horsager: We can edit anything out but we don’t need to this has been fascinating and fabulous hey wake up and don’t be stupid that’s our final line because excellence excellence wins.

David Horsager: This has been delightful I want to say a huge, thank you, thank you for your time, thank you for all of those listening, thank you for being a trusted leader.

Horst Schulze: David I learned something and and and and podcasts that i’ve done some of my hang up and said she didn’t good one it’s always the host is the button, you are you i’m just purse blossom I was delighted to be with you.

David Horsager: Well, thank you.

David Horsager: This has been the trusted leader show until next time stay trusted.

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