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Rude Awakening
By Michael Alan Hamlin
May 26, 2003

There's probably nothing more tragic than seeing an individual or an organization inflected with what's been called natural born athlete disease. The term is used to describe an individual or an organization that has everything going for it - opportunity, talent, good looks - but instead of leveraging those assets, assumes that they will produce success and profitability without meeting even minimum standards of endeavor.

In an athlete's case, you can see the disease, for example, in a long-distance runner who shows great promise, begins to believe everything positive those around him say, and begins to slack off. He doesn't run as regularly or as far as he should. He doesn't work out. He doesn't sleep enough. As a result, despite all his talent, his advantage erodes and he never lives up to his potential.

Anyone can catch natural born athlete disease, a lawyer, a fast-tracked middle manager or CEO, a scientist, a teacher, or a writer. It is particularly tragic because so much potential goes wasted, and it's not just the individual that suffers, but those around him - his family, friends, supporters, employees, and admirers - all who put something of themselves into their devotion and confidence in the future of the natural born athlete.

Organizations get this insidious disease, or a variant often called big company disease, too. Like the natural born athlete disease, big company disease is manifest in an overt assumption that past success will invariably lead to future success. That market leadership is naturally enduring. And that customers remain devoted for life without being properly nurtured. In other words, companies with big company disease forget what brought them success in the first place - relentless pursuit of goals, hard work, and a business model aligned with the market and customer expectations and needs.

Last week, in fact as I wrote this column, I observed a colossal, classic case of big company disease. But I had been forewarned. Several months ago a friend invited my wife and I to join him for a weekend in Cebu at the fabled Shangri-La Mactan Island Resort. It was a tempting invitation. Aside from the reputation of the resort, we were ready for a break, and wanted someplace new to go. And the prospect of enjoying the weekend with friends was an attractive proposition.

Unfortunately, the usual demands of work and family prevented us from accepting the invitation. We were disappointed, but when my friend returned, it seemed that we had been saved from a weekend of shattered expectations. When he returned, my profoundly dismayed friend complained that the rooms were musty, beat up, and poorly appointed, especially for the price he had paid.

Worse, the promised sea view room barely provided a glimpse of the ocean. When he was granted a request for a different room, he found that the view was even worse! Perhaps as a result of that very poor initial impression, my friend found virtually nothing positive about the hotel during his three-day weekend, and upon his return to Manila he wrote the hotel to complain bitterly.

In response, he received a letter from the general manager, claiming that service had slumped a bit that particular weekend, because he was out of town. As any half-way decent manager knows, if things suffer when you're not around, you're not really a very good manager, you're a worker and task master. But that was the excuse, and to make up, my friend was offered several nights' free stay on his next visit, to which my friend responded, "Why would I subject myself to such punishment again?"

Despite his experience, when a client required our presence in Cebu last week for a four-day event at the Mactan Island Resort, I was looking forward to the experience, hoping that my friend's ruined weekend was an isolated incident. After all, no one is perfect. Unfortunately, I quickly found that the resort still isn't living up to its reputation. Instead, it's living down to my friend's disappointing evaluation.

First off, the older rooms are downright crummy, and a disgrace considering Shangri-La's reputation for elegance. The new rooms are not much better. A colleague stayed in a room that I could not even enter, the mustiness was so overpowering. Despite repeated sprayings with air freshener, the mustiness stubbornly persisted. I did have the apparent good fortune of a room with both a pleasing view of the sea, and a bearable atmosphere. There wasn't much else that was very impressive - a rusting tub, deteriorating floors, lousy communications.

Clearly, the resort is living off its reputation, although there is some renovation and construction going on. But unless management improves the condition of the guest rooms, that reputation is going to quickly become downscale, if it hasn't already. There were other drawbacks: a dinner on the beach featured a nearly inedible assembly of strange-looking food. An ethnic dance turned out to be a hard-to-recognize collection of Hawaiian dances, making me wonder what the hotel really thinks of its guests!

Given the hard-earned and deserved success of the Shangri-La chain overall, the disappointment I experienced in Cebu was profound. And it just shows that big company disease lurks everywhere. The question is, will the Mactan Island Resort recover?

Or will other hotels in the chain be dragged down with it?

(Michael Alan Hamlin is the managing director of consultancy TeamAsia and the author of three books on Asian economies and companies. His latest book is Marketing Asian Places, of which he is a co-author (Wiley, 2001), and he is currently at work on High Visibility: The Making and Marketing of Asian Professionals into Celebrities. Write him at mahamlin@teamasia.com.).

Copyright © 2003 Michael Alan Hamlin. All Rights Reserved.

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