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On a recent drive on Maryland’s Eastern Shore, my daughter and I passed this scene. We had a senior director on our board who had been the chairman of three companies, and my father really relied on him. Almost none of these things do you face alone. Family: Wife: Ruth Marie Sorenson, four children Age: 53 Born: Tokyo, Japan Current residence: Chevy Chase, MD, 20815 In February of 2012, activists with Jobs with Justice and “Shareholder Spring” attempted to visit Mr. Sorenson in his office. During those years, Arne was an attractive executive for other companies that needed new leadership. First is my relationship with Bill Marriott—he’s been a great boss and a mentor. I care too much about Marriott, which has been my life’s work, to make a risky choice. I don’t mean to sound immodest, but over the years I had inquiries from most of our global competitors about either their top job or a very senior job, and I never contemplated taking any of them. Third, I didn’t like the notion of taking my expertise and going to work for a competitor. Until 2012 it had had only two CEOs, and Marriott had always thought that one of his four children would succeed him in that role. He went on to work in nearly every part of the business over the next 30 years. By 1998, he’d been named CFO (“a risky move even in a pre-Sarbanes-Oxley world,” he says) and was named CEO in 2012—the first nonfamily member to hold the job in the company’s history. But the more I looked at the situation, the more I realized that John is a natural-born entrepreneur. He spent a lot of time marking up contracts, redoing the work of the company’s lawyers. It’s been more than a year since Arne officially took over, and I’m quite happy with how the process has turned out. But he was a micromanager. After the case wrapped up, Arne and I kept in touch. Marriott chief executive Arne Sorenson, who currently travels as many as 200 nights a year as part of his job, is likely to scale back in the coming months, a spokeswoman said. As Arne was learning the business, my son John continued to move up through the company. A series of labor strikes across the U.S.? Here people have dramatically different backgrounds and skills, and I needed to understand that kind of culture. Arne and John didn’t act like rivals, and I’m sure that if John had succeeded me, Arne would have given him a chance and stayed on in a senior role. I don’t recall thinking of us as rivals until a, Without Reservations: How a Family Root Beer Stand Grew Into a Global Hotel Company. Marriott announced that their CEO Arne Sorenson has stage 2 pancreatic cancer.Pancreatic cancer is asymptomatic in the early stages so it’s incredible that it was caught at this point. The culture here is much different from a law firm, where everyone has the same educational background and a lot in common. BETHESDA, MA—Addressing investors in a tense early morning teleconference call, Marriott International CEO Arne Sorenson reportedly told investors Thursday that he’s had a pretty good first quarter just in terms of his personal life. So, as an example, if you think about the last three years, we jump into trying to buy Starwood in October of 2015, that was a very intense period where the leadership team of the company was gathered around the table. In 1989, when I was 57, I suffered a heart attack, and I began to think a little more seriously about succession. This is the full obituary where you can express condolences and share memories. He knows the business, and people love working for him. And to be clear, I still consider Marriott to be a family-led firm. Marriott International. So when I look to the future, I think about the possibility that my youngest son, David, will someday be the CEO. But as he moved from running hotels to working at headquarters, he seemed less happy. Marriott opens its first international hotel in Acapulco, Mexico. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. I recognized that Arne had great potential, but he didn’t have any experience in the operations side of the hotel business. He founded the Danish Unity party and was a resistance fighter during the occupation of Denmark . ... More from Arne Sorenson. These cookies will be stored in your browser only with your consent. In turn, this gave them the pluck to advise the CEO on which direction the company needed to go and how it will get there. When you’re talking about the past few years for Marriott International and its CEO, Arne Sorenson, it may be easier to talk about what hasn’t happened than what has. We are not going to pay attention to the short-term ramifications of this because the name of the game is to maintain the trust that we have, and maybe even build on the trust we have by telling them what we know, by telling them as we learn more, what more we learn. But as time went on, I realized that it wasn’t the right fit—not for John, and not for Marriott. He’s put himself on record advocating for infrastructure investment, tax reform, LGBT rights, immigration, diversity—and simple decency (political and otherwise). Daughter’s Diner: Oakland’s Modern Take On The American Classic. He grew up very active in his church. The family helps engender a kind of loyalty. Arne lived in 1920, at address , … And John is far happier in what he’s doing now than he ever could have been running a $12 billion company. My son John devoted his heart and soul to learning the business. As expected, Sorenson replaced him, becoming the first non-family member to head Marriott. “Marriott’s exceptional EPS growth track record in a rapidly changing sector is a testament to the leadership and strategic vision Mr. Sorenson has provided throughout his tenure,” said CEOY selection committee member Dan Glaser, CEO of Marsh & McLennan Companies. Customers, too, appreciate companies that have a human face, and that face is easier to see if it’s the face of a family member whose name is over the door. When I think of a litigator, I don’t see someone who’s putting his arm around people, coaching and counseling and loving them, supporting and promoting them. Harvard Business Publishing is an affiliate of Harvard Business School. Today she works as Marriott’s head of government relations, but she’s been in that role only a few years. He was obviously very smart and articulate. These cookies do not store any personal information. But Arne is only 54, so it’s premature to think too deeply about who might succeed him. A cyberhack that resulted in unauthorized access to hundreds of thousands of customers’ data—and acres of painful headlines? The prior deal would have been $1 billion. Monday: son to Katie and Brandon Davis, Minot. But as time went on, Bill Marriott realized that it wasn’t the right fit—for either John or the company. He was preceded in death by his parents; his step-daughter, Mollie Page; his granddaughter, Cora Page and his brothers, Kåre Haugen and Arne Haugen, both of Norway.
To offer a short summary of “Clotel : Or The President’s Daughter” by William Wells Brown it should be noted that the author presents a number of complex characters who, even though they may be recognizable literary stereotypes of the period, have equally complex relationships to … If you have any question about this novel, Please don't … Overview. In that job he presented to the board at every meeting. This director came to think that the executive VP was the wrong choice, and he urged my father to make me CEO. Tell me about your relationship with John Marriott. During my decades as president and CEO, the company grew immensely: At the end of 2012 we had 3,800 properties in 73 countries and territories, and our revenue last year was $11.8 billion. Some of them, I think, require more of a singular decision, maybe, and some of them less. Did you receive guidance on how to develop in that area? 3. My father, who’d started the business in 1927 with a root beer stand in Washington, DC, before moving into restaurants and then hotels, had an experienced executive vice president working for him who many thought would succeed him. January 6 at 9:57 AM. “The complexity and globality of his business—with a major acquisition—demonstrated his leadership,” said Bob Nardelli, CEO of XLR-8 and former CEO of Home Depot. Chief Executive’s publications are designed to help CEOs do their jobs better and run their businesses more effectively. After World War II, Sørensen was a member of the Danish Parliament and Minister of Ecclesiastical Affairs . That’s especially true at Marriott, where we fill most jobs from inside, which gives people an awareness of the potential to move up. Since then he has founded a medical testing company, which is going to be very successful, and he also serves as the CEO of JWM Family Enterprises, a family trust that he founded, which owns and operates 16 hotels. I worry that too many businesses today have become depersonalized. I don’t recall a conversation where anyone said “Arne, you have lousy people skills.” But I do recall a series of conversations I had with Bill and with other leaders about how important Marriott’s culture is to its success, and how this was something I needed to be aware of and supportive of. You also have the option to opt-out of these cookies. So, in that sense, there’s a similarity, but the decisions made in the cyber context, the ones that I felt closest to, were more philosophical. The past year was full of compelling events and personalities within the hospitality industry, and looking back, many leaders stand out as strong contenders for the title of "Leader of the Year." He remained based at our U.S. headquarters, in Bethesda, Maryland, but he spent one week every month visiting hotels in Europe, and he really began to understand the business from the bottom up. I didn’t have much direct contact with him in that job, but I did get to know him a bit better. I first met Arne Sorenson, who eventually succeeded me, in 1993. You handed over the role of CEO to Arne Sorenson in 2012, the first time the company was led by a non-Marriott. Karl had 5 siblings: Tore Ingeberg Sorensen , Elis Sofie Magdaline Sorensen and … He was 20 years older than I was, and when it came to finance, he was brilliant. 154 percent versus 60 percent for the S&P 500. Like all family members who have joined the company (including me), John started at the bottom, as a cook in the kitchen. As far as I know, Arne didn’t seriously consider leaving. Every company develops some level of bureaucracy as it grows, and for a senior executive, managing that bureaucracy is an important part of the job. Arne is a real role model for all CEOs.”. We’re going to be transparent with our customers. Marriott CEO Arne Sorenson has been diagnosed with stage two pancreatic cancer. That’s not the way I’m built. I don’t believe that anyone who’s 80 should be running anything. Published in the Calgary Herald on 2018-05-22. But gradually he realized that he had to make a different choice. In 2002 he joined our board. Check. There’s Airbnb, which is fast disrupting the travel business; the rise of anti-globalism, anathema to a company with hotels in 131 countries; and, of course, an endless series of highly public brushfires that come along with welcoming guests of every stripe, such as the LGBT community erupting in protest at the President of Brazil hosting an event at a Marriott in New York’s Times Square (he ultimately cancelled), to name just one. He didn’t have good people skills and didn’t understand the operation of the business. It is just one of many polling places across the country. Revenue jumped from $12.7 to almost $21 billion over the past five years (through the end of 2018), while adjusted earnings per share were up 178 percent during that time. He currently oversees all our hotels in the eastern United States, from Maine to New Orleans. HBR asked him to reflect back on the succession process. When they built a new home in 1992, it left them with a pile of scrap cedar. Arne has a lot of respect for David, and David has a lot of respect for Arne. Especially in the personal services business, in which the brand is guaranteeing a certain kind of experience, I believe that having someone whose name is synonymous with the brand, who stands behind it and cares about you, is a real advantage. He writes here about meeting Arne Sorenson, hiring him, and grooming him to become the current CEO. If you believe the conventional wisdom about family businesses—that talented nonfamily executives won’t stick around, because they feel they have little chance of being promoted to the most senior jobs, which are reserved for family members—you’d think he would have been pretty excited about those opportunities. This was $13 billion and change. At the age of 32, Bill Marriott became the head of the company his father had built up from its beginnings as a root beer stand in 1927. Necessary cookies are absolutely essential for the website to function properly. Chief Executive’s latest poll of more than 230 CEOs finds optimism in 2021 business conditions on track and steady after the tumult of 2020. I first met Arne Sorenson, who eventually succeeded me, in 1993. We get a cyber hack that surfaces in September. Second, I had good momentum throughout my career here, so I was never dissatisfied. In 1998 our chief financial officer left, and although Arne wasn’t an obvious choice for that position, we moved him into it. All this would be enough to tank even the toughest CEO. We brought him in to head our mergers and acquisitions team. That’s not all. Previously he was Managing Editor at Forbes and the founding business editor of NYTimes.com. He was 35. In 2016, he led Marriott International’s $13.6-billion acquisition of Starwood Hotels & Resorts, catapulting the company’s total number of hotel rooms to more than 1.2 million. “Why don’t I make you your own tree?” her dad offered, and he did. That isn’t the life for him. While I was leading the company, I often had several experienced nonfamily executives working with me. His father was a Lutheran missionary, and Arne was born in Japan while his parents were doing missionary work. He held important jobs in finance and brand management. In that kind of classic circumstance, the CEO ultimately has got to say, “Okay, how am I going to resolve this less-than-totally-synthesized bit of input I’m getting and decide what kind of bet the company should make?”. Sorenson … Bill Marriott admits that he worried about your people skills. Photography: Getty Images/Bloomberg The Idea:For decades Bill Marriott expected that his son would become the third generation to lead the global hotel company. I know that some of our lodging competitors tried to hire him for very senior roles. When your father made you president of Marriott in 1964, he wrote a letter to you, and tucked it into your desk. But gradually he realized that he had to make a different choice. The Idea:For decades Bill Marriott expected that his son would become the third generation to lead the global hotel company. Arne Christian Sørensen (2 October 1906 – 1 March 1978) was a Danish politician and author. The worst news came on May 3, when the company announced Sorenson, 60, had been diagnosed with stage 2 pancreatic cancer and would soon begin treatment. Key Benchmarks for Manufacturing Companies, Joe Biden And Leadership In Turbulent Times, Leading Through VUCA: CEOs Focus On Culture, CEO Summit: How To Foster Engagement And Produce Great Leaders, Post-Pandemic Crystal Ball Sees Covid’s Changes Continuing, Resilience 2021: ‘Adapt, Improvise And Overcome’, VUCA Leadership: A Guide To Surviving And Thriving In Chaotic Times, Sign Up to Receive Chief Executive Magazine, CEO Confidence Continues To Climb In January. Beyond his performance, the most important thing Arne did during those years was develop his people skills. I don’t necessarily believe that the experiences of other family companies are relevant here. Now, the board, of course, approves everything, but was I going to present to the board the biggest transaction by far that the company had ever done? He doesn’t have the temperament to run a company the size of Marriott today, with 3,800 properties and 18 brands. ... More from Arne Sorenson 97 articles. Monday: son to Ramona and Arne Sorenson, New Town. The case involved a lot of incredibly complicated financial details, and Arne helped me first to understand and then to explain them so that they sounded simple. About three years later he came to work for us. I do. We sat down with Sorenson in late May at the company’s headquarters in Bethesda, Maryland, to hear more about how he takes on the turbulence—and maybe how the rest of us can do it better, too. Marriott was involved in a big lawsuit, and Arne was one of the lawyers who represented us. But that didn’t make it a horse race between him and John. We all shop at Target, but who is Mr. Target? He devoted his heart and soul to learning the business. There, in some respects, I am involved in the conversations daily but not necessarily bringing more expertise to that set of challenges and questions than a whole bunch of people at the table. Total shareholder return? Copyright © 2020 Harvard Business School Publishing. My father was worried that I was too young, but Marriott was still small at the time—we had about $85 million in annual revenue—and I think he figured he’d be around long enough to bail me out if I got into trouble. But even though he’d spent years filing lawsuits and conducting cross-examinations, Arne has a broader background, as I came to learn. I imagine Sorenson receives regular executive physicals.. Sorenson, 60, received the diagnosis from a medical team at Johns Hopkins Hospital in Baltimore after a series of tests. I checked in with some of those people from time to time, and it was obvious that Arne had quickly become well respected and well liked by everyone in the field. Many companies have mandatory retirement at 65, and a lot of CEOs today are retiring in their fifties. Dan Bigman is Editor and Chief Content Officer of Chief Executive Group, publishers of Chief Executive, Corporate Board Member, ChiefExecutive.net, Boardmember.com and StrategicCFO360. In 2009 Arne was promoted to president and chief operating officer. I was really impressed that he could explain something so complex in a way that anyone could understand. In an emotional video message on Thursday to Marriott International employees, CEO Arne Sorenson characterized the coronavirus crisis as more severe for … My daughter, Debbie, is the mother of five, and although she worked at Marriott as a teenager, she stayed home with her kids for three decades. Marriott was involved in a big lawsuit, and Arne was one of the lawyers who represented us. During a meeting of the American Hotel & Lodging Association (AHLA), Marriott CEO Arne Sorenson said everyone wearing facial coverings would provide confidence to visitors that the property is following all health and safety guidelines. The process evolved naturally and over a long time, and it has actually felt fairly seamless. Although the announcement, in December of 2011, was treated as big news because Marriotts had been in the top job for nearly 85 years, it wasn’t much of a surprise to people who knew the company. If I’d followed my own heart, I probably would have chosen John as my successor. As I watched John adapt to this role, I could see that he wasn’t having much fun. Marriott CEO Arne Sorenson said coronavirus 'is like nothing we've ever seen before' and is having a greater toll than World War II on the hotel industry, as he axed his salary to save the firm. Trinity Hospital Sunday: daughter to Marie Whitetaileagle and Tyson Eagleman, New Town. Obituary david for o. Sorenson. I was only 32 and had worked […]. See More. By 2011 I was approaching 80. A memorial service will be held at noon, Saturday, Jan. 30, at Nash-Jackan Funeral Home in Bruce with Deacon Doug Sorenson … If I’d followed my own heart, I probably would have chosen him as my successor. He worked extremely hard, and he knew the business from A to Z. I was determined to mentor him and to give him all the tools he would need to succeed. So, you’ve got a period of six weeks or so where you’re working like dogs to try and figure out as much as you possibly can and, then, ultimately, get to a place where you decide to disclose and what the strategy is around disclosure. My oldest son, Stephen, has a debilitating disease—he’s blind and mostly deaf. He obviously had deep insights into the hotel business, which he continues to offer as vice chairman of our board. Arne had already begun to handle some of the day-to-day jobs typically done by a CEO, and I decided it was time to make the transition official. That would be disloyal. After all, I’d literally learned the business visiting restaurants with my father as a young boy, and I’d worked part-time in different jobs at the company since I was 14. The 60-year-old Sorenson will continue to lead the company while he undergoes treatment. ... Arne Sorenson becomes President and … We had a good relationship, and we still do. This is an 85-year-old company that until 2012 had had only two CEOs, and our family’s involvement provides a great sense of continuity. He’d enjoyed being in the field; now the pressure built on him to be in the office every day, attending long back-to-back meetings and focusing on administrative work. Furthermore, our name is on the door, and that signals a level of personal accountability. But he wanted to try something new, not law. We really couldn’t confirm that anything was taken until November. If you’re facing them alone, you’re probably in a dangerous place. Do you agree with Bill Marriott, who says there’s a real benefit to having a family member in the CEO job in a family company? But in my experience, fears about retention are overblown: If you treat people well, they’ll want to stay. He oversaw all our sales efforts as an executive vice president, and then he became president of North American Lodging, which gave him total responsibility for our largest business. A $13 billion deal—the largest in the company’s history—for rival Starwood? Sorenson:I’d never even contemplated being chief financial officer, let alone having a job higher than that. Did you ever think you’d face a ceiling at Marriott because it’s a family-run company? Not all my children were in the running to succeed me. Subscribe here. But opting out of some of these cookies may affect your browsing experience. Two of his sons have worked for the company for many years, and one of them, John, seemed destined to succeed his father. Remember that I’m a reformed lawyer, so I came here without a deep knowledge of the lodging industry and without a clear career path. This website uses cookies to improve your experience while you navigate through the website. Over time we both came to the conclusion that, wonderful as it would have been for me to hand Marriott off to my son, he wasn’t the right choice. Here are some edited excerpts: HBR:Do you remember the first time you thought about yourself as a potential CEO? Very different kinds of decisions, but every one fundamentally dependent on the right team around the table. He has tremendous potential, but at the moment, he is still learning. https://chiefexecutive.net/2019-ceo-of-the-year-marriott-arne-sorenson So that was a concern. In both circumstances, you’re bred first to listen. Gradually he realized that he could explain something so complex in a big job to up! From running hotels to working at headquarters, he was and also shared 15.!, which he continues to offer as vice chairman of our board well they... Chief executive, he wrote a letter to you, and my father to make a risky.! 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