interview Building a Better Park Ocean Park CEO Tom Mehrmann has been making waves by involving staff more closely in the park’s strategy. Human Resources sits down to learn about human capital at Hong Kong’s native theme park. by Sebastian Bitticks I n 2011, the eighth year as Chief Executive of Ocean Park, Tom Mehrmann wrote 850 thank you notes to his staff. When he first took over as the top leader in 2002, he made a promise to thank a member of the staff when a customer gave a positive comment. These are not common, as anyone in services can tell you – people take the time to complain, but to get a person to go out of their way to sing a business’ praises, something very good must have happened. That first year, Mr Mehrmann reckons he wrote about a dozen notes. The massive expansion in his personal project underscores the success Ocean Park has seen in recent years. For the last eight consecutive years, Ocean Park has set records for revenue and attendance. Going from a conservative, wait-forthe-storm-to-pass approach to dramatic expansions and considerable investment, 20 HUMANresources m a y 2 0 1 2 the park has become a major success. A life-long veteran of the theme park business, Mr Mehrmann started in a front line position at a family-owned American theme park. His focus on open management and balancing people development with business development sent his career international, first to Spain, and then here to Hong Kong. Human Resources spoke to him about the strategies and techniques that have helped him succeed at one of the Hong Kong’s signature attractions. Ocean Park is not like most businesses. What makes it special from a human capital perspective? Mehrmann: As a fixture of the community, we’ve had generations that have worked here. We have husbands and wives working here; people that have worked here for 37 years. People’s children work here. Those mean a lot to the culture of the company, and how you redefine the company when you want to move forward without losing your past. There’s been a real effort to continue to build internal channels of development and growth. We’ve made progress, but we’re not all the way there yet… This is a tough one. If my operations director has an opening for a rides manager, it’d be easy to say ‘I’m going to go out and find someone’. But you’re not going to find a rides manager in this market; especially before Disney came. [But] maybe there’s someone in the line-level ranks who’s prepared. I’ve been saying to the team that they should look around the whole park. Don’t limit yourself to the discipline, limit yourself to the talent. Find the leader; you can place them anywhere. We took the word succession planning out of our vocabulary. [When you name interview a successor] you’re telling [everyone else] that they are not going to be your successor. ‘None of you have a chance.’ We shouldn’t be focused on a successor per se, we should be focused on individual development planning (IDP). We began rolling IDP plans for those who aspired to do more, indentifying all the high-fliers. We wanted everyone in the company to know they too could be a high-flier, they too can grow into whatever they want to be. That the opportunities abound here. In a recent interview, you said you try to surround yourself with talent. What is your philosophy for talent development? Mehrmann: The base talents have to be there in the first place. [People] can’t be taught to be passionate, you’re either going to be passionate or not passionate about what you do. When I’m building or reinforcing the team… I’m looking for those innate qualities. They have to have a sense of humour, they have to be passionate about what they do, and have a sense of curiosity. Typically, you’re not going to find leaders who do things by rote, and our business is rote memorisation. Our business is reactive to the moment. [When I joined,]I found those qualities in the people that were here. They just weren’t allowed to express them because of whatever – business conditions or whatever it may have been. It used to be a very top-down company. I had the same thing in Spain; everyone was waiting for me to say what we were going to do. I wanted to get in place a different approach where you [the staff] tell me what you’d like to do. You see the situation – what do you think is the best response? I wanted to get some two-way dialogue going [to help] set direction, set strategy, set objectives. For the last five years, I’ve been pulling in the assistant executives and we do an offsite meeting [where] we literally go through the process of lining up our next three years. We’re going to have a follow-up meeting in May. You’ve been praised for involving staff in the strategic planning for the company. How exactly have you done this, and how would you advocate it to other organisations? Mehrmann: It happens in many ways. It happens by giving them the opportunity to run events, run assignments. Giving them the sole responsibility of developing something. If you could see the media events we do today compared with what we did back in ’04, they’re megaproductions today. Three years ago, I presented the goal of [having] seven million guests [visit the park in a year]. At the time we had just hit five million. We spent three days going through a programme talking about it. We asked everyone to draw a picture – if we’re doing seven million people in five years, what would the park look like if we achieved this? We had pictures drawn by 80 different managers. Some were chaos, some were beautiful harmonies, some were poetic, some were a mass of things. The fact is, though, that in asking them to draw the picture, we opened the dialogue. And then the dialogue became pervasive. The dialogue was happening in every corner of the company. It became the underlining tone of everything in the company. When I first got here, I wanted to know what our engagement was. The team suggested we do an employee satisfaction survey, but I shared with them being happy is ok – I don’t mind knowing if the staff are satisfied, but being satisfied and being engaged are two different things. It was somewhat new thinking at the time in Hong Kong. I wanted to know how engaged our employees were so that whatever limited resources HR had could be allocated to the right spots. We couldn’t do a ‘shot-gun’ approach with a little bit of everything. We needed to be focused and productive. I wanted to look at the drivers of engagement and take action on those. Of the top ten, pay was either number eight or nine; it wasn’t number one. Pay is important and I think you can never discount it or remove it, but what showed up at the top was a career path. People wanted to know they could grow with the company. How did Ocean Park make that employee commitment? Mehrmann: We built a competency model based on the engagement survey – from the employees themselves, this wasn’t top-down. It was the employees defining what they saw as the competencies to be an employee here. On top of that we came up with eight competencies for leaders. Those competencies then became a driver for our training programme. The team was able to focus on building a curriculum that focuses on these competencies and has become the framework that has set everything in our training and development programmes for the last six years. And it’s been huge in continuing to build upon engagement. When there’s a downturn, lots of company say ‘cut training’. [This is] because save money immediately, and you won’t feel the effects of it until three, four, five years down the road. You save some money, but what’s the ultimate cost? One of the commitments we made earlier was, whether we had a bad year or not was to not change our training programmes. No matter how bad the economy is, we won’t feed [the animals Ocean Park’s zoo attractions] less; we won’t take care of them any less. The point is: you shouldn’t take care of your employees any less, no matter how bad the times are. Whatever commitments we make, we have to fulfil them. That’s who we are. HUMANresources m a y 2 0 1 2 21
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