Chapter 7: Create a Performance-Driven Culture

In the seat of the CEO: You are the CEO of a successful $25 million chain of steak houses that is well known throughout the United States and Europe. The restaurant chain has built its reputation on its excellent food and unconventional service. Waiters and the bus staff sing to customers, or perform poetry and movie "readings." Even the chefs come out of the kitchen and get into the act. This is no accident, of course: Your company's training program teaches all employees and managers to do just about anything to delight your customers.

You are now in the process of hiring a key senior manager for your flagship restaurant in Chicago. Several of your managers have interviewed more than 200 candidates, and they have narrowed the field to three, all of whom seem highly qualified. You have a file on each, and you bring each in for a final interview:

Bill S. He seems to have what it takes to be a good manager. He attended a top-notch hotel/restaurant school and has a strong résumé. Most of his 14 years in the business have been with one of your smaller competitors— a highly profitable outfit in the Midwest. When asked what he is most proud of, he speaks of how he helped turn that company around. The company was in trouble, with razorthin margins and few growth prospects. Thanks to his financial management, cost cutting, and other innovations—he developed new processes that allowed the company to seat more customers per restaurant—the company became a leader in its niche. He concludes his interview by telling you that the last ad campaign was his idea ("Great food at a great price, and the fastest service in town"), and by speaking of the importance of building a strong team and a family-like culture.

Sally J. She has been in the restaurant business for just under 8 years. Her last position was in an upscale seafood restaurant in New York. She appears passionate about her work, and her enthusiasm is contagious. When asked why she left her last job, she declared that she could no longer tolerate management's arrogance toward employees and customers. ("They acted as if the customer should be grateful for getting a seat in the restaurant," she explained.) She speaks modestly of her accomplishments, but she also admits that she has made some mistakes during her career (e.g., as manager of the New York restaurant, she sometimes alienated management by challenging its ideas). She also has limited understanding of financial management, which is important in the new position.

Harry P. He is the most seasoned of all of the candidates, with two decades of experience, most recently in New Orleans. Harry attended one of the best hotel/restaurant programs in the country, and he says that there is no job that he could not handle. Once he starts talking about his achievements, he goes on for some time, speaking of the "groundbreaking" things he accomplished in previous jobs. He is most proud of what he achieved in his last job, at a Bourbon Street bistro, where profits increased by more than 20 percent even though the restaurant was serving 5 percent fewer customers.

So those are the three candidates. Whom do you hire? Why? Is there a clear choice? What are the factors that will shape your decision?

What would Herb Kelleher do?