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 CHOICE
! Sixth consecutive year on

Fortunes 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 hotels 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
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 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 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
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.

Adding Locations
100 80 60 40 20 0
22 37 45 50 60 71 82

1989

1996

1999

2000

2002

2004

2006

Unit Growth - Worldwide

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

Geography - 1996
4 1 North America Asia Europe Latin merica

11

21

Geography - 2004
6 10 North America Asia Europe Middle East Latin America 34 13

16

Adding People
40000 35000 30000 25000 20000 15000 10000 5000 0
37000 32000 26800 21000 23000

9000

1989 1996 1998 2000 2002 2004

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

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 others 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
!Strict adherence to

operating philosophy is the key to the Companys success

Our culture drives

everything we do

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..

Building People Power

RECRUITMENT PROMOTION/ TRANSFER SELECTION

DEVELOPMENT & SUCCESSION

ORIENTATION

REWARDS & RECOGNITION PERFORMANCE MANAGEMENT

TRAINING

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; multilingual) 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

TODAYS CHALLENGES

Even as some hard-hit luxury hotel chains are cutting service during the recession, Four Seasons stands out for the quality of its staff and the exceptional lengths it goes to in the 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 CHOICE
! Sixth consecutive year on

Fortunes list of 100 best companies to work for in America.