Norman Blake, a newcomer to the hotel industry but a highly experienced businessman, inherited a trouble-filled scenario with his appointment as president, chairman/CEO of the new Promus Hotel Corp. The year following the merger of Promus Hotel Corp. and Doubletree Hotel Corp. could best be described as a period of turmoil, during which time the company?s top officers abandoned the new entity due to the inability to overcome differences in opinion. In December 1998, Blake stepped in. His job was clear? bridge the gap between two hotel management cultures to create a united Promus. Since joining the company, Blake has made several strategic moves including naming a new CFO, reorganizing senior management and, most recently, rejuvenating the Red Lion chain. In an exclusive interview with HOTEL BUSINESS?, Blake openly discussed the challenges of uniting two different cultures within the new Promus organization as well as his vision for the future, displaying a combination of confidence and excitement. Much like his forthright personality, his leadership style is straightforward, which has proved beneficial in clearing up uncertainty that surrounded the company for almost a year following the merger. Talent Without Direction ?It was important to move quickly because there was a lot of talent in the organization with no direction,? said Blake. Blake is no stranger to correcting problems in business situations. In fact, he has a lot of experience in the area, most recently with USF&G. The Baltimore-based insurer was near financial failure, with losses totaling $569 million in 1990, when Blake was appointed chairman, president/CEO. There he led an eight-year turnaround which resulted in a 320% growth in market capitalization. But Blake is quick to point out that Promus was not a turnaround situation, but more of a clash of cultures. ?You had two distinct cultures? the old Promus and Doubletree, and to a great extent one is the antithesis of the other. But in composite, they offer significant complimentary strengths. So the challenge was to get an end result with no winners and losers in this proposition, because what we had was almost like a force of wills,? said Blake of the two different management teams. Promus, an internal growth company focused on franchising and management of brands, was met with Doubletree, an entrepreneurial company that grew through acquiring real estate. ?When I first got here, everyone was looking for which side would win. There was a lot of pride attached to each side,? said Blake. ?Now the mentality among the employees is ?we.? ?They? is a thing of the past.? To correct what has been called a ?long-term leadership and vision? problem at the company, Blake created a new business plan that both sides could bond to. That included a reorganization of senior management in February with the naming of Don Hale, a former USF&G employee, to the position of CFO. In addition, he restructured other senior managers that resulted in a more solid and balanced line-up from both Promus and Doubletree. The reorganization was set up around the company?s three earnings engines, according to Blake. These include brand growth, hotel management and venture operations. As a result, the new executive team is as follows: Tom Keltner, president/brand performance and development group; J. Kendall Huber, executive vp/general council; Thomas Storey, executive vp/corporate strategic planning and venture operations; Tim Harvey, executive vp/CIO; and Stevan Porter, executive vp/operations. Following a very short getting-to-know-you stage, Blake announced his strategy. It focuses on four key areas: fixing and growing the core brands, expanding revenue generation, looking for acquisition opportunities and harvesting the value from Promus? $1 billion real estate portfolio. ?Ultimately, my bold vision is to be one of the top three players in the global hospitality industry,? Blake said. In The Market To Buy Promus will look to
