Small Business Resources, Business Advice and Forms from AllBusiness.com

Business Exchange

One might think that serving as president and CEO of Loews Hotels and co-chairman of the $24 billion Loews Corp. would keep a guy too busy to write books and host television shows. One would be wrong.

Three years ago, Loews Hotels CEO Jonathan M. Tisch landed on the best-seller list with his first book, The Power of We. Now he's back looking to do the same with Chocolates on the Pillow Aren't Enough, a look at how innovative companies build customer relationships at a time when loyalty is increasingly scarce.

To say that Tisch also dabbles in television would be an understatement. In 2004, he spent five days stepping into various rank-and-file posts at Loews for a stint on the reality television show "Now Who's Boss?"

The following year, he began filming his very own talk show, where he conducts candid exchanges on everything from politics to business strategy with the likes of Mort Zuckerman, Donald Trump, Clive Davis and Cathleen Black on Plum TV's "Open Exchange." You can even find him on YouTube doing what may have been one of his toughest interviews so far, a conversation in the Hamptons with fellow Plum TV celeb Duncan the Sock Puppet.

Ironically, given his own media endeavors, finding ways to break through the "clutter" of Internet, cable and print media today is one of the themes of Chocolates on the Pillow Aren't Enough, in which Tisch asserts that 24/7 access to information has changed the nature of the customer relationship. On the plus side, the Internet lets the Loews Hotels of the world--an 18-hotel David competing with the mega-marketing budgets of Goliaths like Marriott and Hilton--reach customers more cost-effectively. On the negative, the Web has become a vast bazaar where brands underbid one another competing for a fickle customer base.

"Customers today are spoiled," says Tisch. "In our industry, for example, they can go to any number of Web sites and blogs and learn a tremendous amount in a short period of time about a hotel, an airline or a car rental company. Then they can exercise their ability to choose between some highly regarded and well-run companies."

What's more, a single misstep can have disproportionate and lasting ramifications. Remember AOL's travails after a blogger posted an audio file of his conversations with a mind-bogglingly argumentative customer service representative? "Bad news is viral," says Tisch. "It's incumbent on senior management to monitor all your touchpoints on a continual basis--to read the blogs and call the 800 numbers. You can get in real trouble today from one negative blog."

So how can companies build and maintain a competitive edge in such an environment? Cutting through the clutter to make an impression is only half the battle, says Tisch, whose book cites success strategies from companies like Build-A-Bear, In-N-Out Burger and Target among others. "It all comes back to fulfilling the promise--to getting it right on every transaction every time. In the hotel business," Tisch explains, "the only way you can achieve that is by having individuals at every level of your organization back up what you're trying to do as a company. It can't just come from the CEO because he or she is limited as to who they deal with."

Except at Loews, where Tisch found experiences like working the front desk and making huevos rancheros as a cook so valuable that he started an annual "Now Who's Boss" day for senior executives at Loews. The program gives managers insight into front-line operations and the day-to-day challenges of their staffers.

"The line workers also enjoy the chance to work side by side with people who they've only seen in senior positions," says Tisch, whose own experience making beds as a housekeeper led to new uniforms with less polyester and more "natural fibers that breathe."

When not taping television shows, writing books or overseeing his lodging empire, Tisch serves as chairman of the Travel Business Roundtable, as a member of the Travel and Tourism Advisory Board, and as treasurer for the New York Giants, the football team he and his family own. He also is an empassioned supporter of the New York City tourism industry, serving as chairman of NYC & Company, the city's official tourism agency and, in the wake of 9/11, as chairman of the "New York Rising" task force.

How does he fit all these sidelines around life as CEO of a major hotel company? "It helps that I only sleep five hours a day," says Tisch, who estimates he's doing the equivalent of four full-time jobs. "The only way I can get all this done is that I'm surrounded by really smart, talented people," he adds.

Tisch's track record of diverse interests and passion for New York have led to much recent speculation about the prospect of him "pulling a Bloomberg"--a possibility he demurs. "I'm flattered people would think of me in the same context," he says. "But right now, I'm focusing on working with my cousins to continue to grow Loews."

In addition, make sure to read these articles: