INTERVIEW

InterviewVIEW Investing in INTER Human Assets

An Interview with James J. Murren, Chairman and Chief Executive Offi cer, MGM Resorts International

media, which is when our guests go home and You have to use technology as a tool and tell their family and friends that they had a good not as a crutch and use it to assist interaction experience; that drives more revenue to us. So it among people. It’s all about the human experi- begins and ends with the employees. ence and the culture of service, and it’s a mistake Is training the reason why there is such to hide behind technology or use it as a replace- a low staff turnover within your company? ment for creating a connection with a guest. How critical is it for your guests to see the The many ways that we use technology same faces when they return? now are creating the reverse of that – they’re Our turnover is well below the industry getting the employees more in touch with the James J. Murren average and we have many multigenerational guest by liberating them from the drudgery of families that work with us. This has to do with sitting at their desks gathering data. EDITORS’ NOTE James Murren received his un- what our founder, Kirk Kerkorian, has always We’re implementing a major new HR soft- dergraduate degree at Trinity College where he been and what he represents to all of us. I can ware system, which will get a lot of our HR ex- studied art history and urban planning, and speak from personal experience in terms of his ecutives out of their offi ces and onto the fl oors continued his studies in Rome. He joined the Wall leadership, his tremendous sense of duty and with fellow employees, addressing issues and Street fi rm of Cyrus J. Lawrence as a securities an- philanthropy, and his community spirit. leading the way for other managers to spend alyst and earned the Chartered Financial Analyst Regardless of the organization, it’s about time out of their offi ces, interacting with em- certifi cation in 1991. During his career on Wall the tone at the top and how employees feel ployees and guests. Street, he served as a managing director and the about the organization that employs them. We Will much of your future growth come Director of U.S. equity research for Deutsche have always taken that to heart and I’m con- about internationally or is there still more Bank. In 1998, he joined MGM as CFO and mem- tinuing that philosophy. It involves fi nding very opportunity in the U.S.? ber of its board of directors. In 1999, he became defi nable ways to improve the employees’ way We see strong opportunities in the U.S. President and was promoted to Chief Operating of life, be it through training, our health care We are a -based company and are Offi cer in 2007; he became Chairman and CEO benefi ts, our workplace environment, the food U.S.-centric but our brands are well-known in December 2008. He was an original founder of we serve in our employee dining rooms, the around the world. We have an extraordinarily the state of Nevada’s cancer research and treat- community outreach we do for organizations successful resort in Macau and we have strong ment center, the Nevada Cancer Institute, and is that our employees care about, and the oppor- aspirations to be in other markets throughout a member of its board of directors. tunities for advancement based on one’s own Asia, perhaps in Latin America, and perhaps in capabilities regardless of race, religion, back- Europe over time. COMPANY BRIEF MGM Resorts International ground or gender. We have a non-gaming hospitality division (www.mgmresorts.com) is one of the world’s Overlying all of that has been a strong ef- that is currently in various stages of develop- leading global hospitality companies, operating fort behind internal communication, which was ing non-casino hotels in major cities such as a portfolio of destination resort brands includ- vital during the recession. Our employees want Mumbai and New Delhi; Chengdu, Shanghai, ing , MGM Grand, , and to be engaged, inspired, and communicated Beijing, and many others in China; and through- . The company also owns 51 percent with. They’re not expecting to be told that ev- out Asia, the Middle East, and Northern Africa. of MGM China Holdings Limited, which owns erything will be okay, but they want to know But most of our cash flows come from the MGM Macau resort and casino and is in the what the game plan is and they want to have the U.S. and we’re focused on U.S. and North process of developing a gaming resort in Cotai. input to that game plan. That two-way commu- American opportunities. I’m spending a lot of It also owns 50 percent of CityCenter in Las Vegas, nication has been one of my most pressing pri- time in Western Massachusetts, where we hope which features the ARIA and VDARA resorts. orities since I became Chairman and it’s yielding to develop a resort in Springfi eld to help that some good morale at our company. city that has been so badly punished by 60 What makes MGM special and allows it to How far do you go in providing the years of challenges. I’m spending time in Prince perform consistently well year after year? necessary technology without losing the George’s County in Maryland where we would We have beautiful resorts and we invest in personal relationships? love to build an international resort on the them, but the most valuable assets are our peo- You have to be extraordinarily responsive banks of the Potomac. We’re also looking at ple. We invest a considerable amount of money to consumer behavior – consumers are clearly Toronto. Over time, there will be other oppor- in the human assets of our company and it has using technology for so many of their deci- tunities as gaming has become far more main- yielded positive returns. sions. They use social media sites to determine stream in the U.S. and North America, and a far Fundamentally, we realized that people where to stay before they visit us, but also in more holistic entertainment experience rather don’t have a need to visit our resorts – we don’t terms of connecting with social groups and than simply a casino experience. fulfi ll an essential need. What we do provide is going to properties based on what they’re Large resorts are becoming more demo- special experiences, which means our best mar- getting on a real-time basis. We have invested graphically appealing to various ages and that keting dollar is the one that we don’t spend – it’s millions in this area, both through our internal plays to an MGM strength. We excel in the non- the marketing dollar spent on the most effective efforts and with several outside companies. gaming areas compared to our competitors.

70 LEADERS DISTRIBUTED WITH PERMISSION. COPYRIGHT © 2013 LEADERS MAGAZINE, INC. VOLUME 36, NUMBER 2 chair a CSR committee of men and women who direct that committee to implement train- ing and diversity programs in a granular and increasingly comprehensive fashion, which has been gratifying to all of us. It’s the concept of “inspiring our world”. We had an event in December in Las Vegas to announce this and we’re taking that show on the road to our employees in Detroit and Mississippi. We look to touch every one of our employees with the messages of our mission – to engage, entertain, and inspire – our vision as a company; our core values of Teamwork, Integrity, and Excellence that link our 62,000 employees; and what we stand for regarding the vital issue of inclusion and diversity in our workplace. How important is diversity when you’re dealing with such a varied customer base? Today, more than half of our employees are women. We are constantly looking for CityCenter in Las Vegas features ARIA and VDARA resorts ways to attract the best and brightest women to our company and to promote from within Does the market truly understand the I’m proud of what we have accom- wherever we can. quality product and value that Las Vegas of- plished there. It was not easy and was not We feel strongly that the company’s goals fers today? an initial success when it opened mid-reces- should be to refl ect the customers that we are There aren’t many positives about the re- sion, but it’s getting stronger every day and accommodating, and I’m driven toward equality cession, but one silver lining has been a strong is now one of the most important resorts in and opportunity for everybody here. desire for the consumer to focus on value- Las Vegas. This industry wasn’t much better than added for dollar spent. I see this universally How critical is corporate responsibil- Wall Street in terms of diversity when it began among all consumers – not just the value-con- ity to the culture of MGM Resorts and in the ’70s and ’80s. However, we have made scious; every type of consumer at every differ- do you focus on meeting needs that align it a major goal of the company, and I have ent household income range is focused on it. with the business? made it a mission of mine, to be an employer They’re willing to spend some money but they I’ve never met a more modest philanthropic of choice that values the contributions of all of expect to get a tremendous value for their dol- individual than Mr. Kerkorian. He mostly gives its employees. lar spent. anonymously and does it simply to help peo- Any time that we can help create that Las Vegas scores well there in terms of a ple. All 62,000 people at MGM know that giving overarching view that you’re going to be valued value destination in a more broadly defi ned is a core value of this company; it is part of the regardless of who you are and what your back- sense than what we used to traditionally think DNA. Our employees are expected to give in ground is, we win as a company. This has to of value, which would be more moderate-spend whatever fashion they can. be my most important role here. customers. We focus our attention on areas where How challenging is it to lead an organi- The scars left by the recession on con- we can have the most immediate impact, zation like yours? What has made you so sumers and businesses are not fully healed, and we have to focus our philanthropy pri- successful as a leader today? and none of us will forget quickly, but that marily in the markets in which we operate. In this company, I look for the best can- plays to Las Vegas’ advantage over some It’s where our employees live and work and didate for the job at hand, regardless of back- higher priced cities or higher priced conven- where our partners, vendors, and tenants are ground. I have been a fan of bringing people tion or tourist destinations. That’s one reason based. in from outside of our industry to shake up the why Las Vegas had an all-time record in terms That is a focus of our philanthropy, be it status quo. I have tried to create clear delinea- of visitors to the city in 2012 – and that trend in Nevada or Michigan or in Mississippi, but tions of responsibilities, because I’m not a fan will continue. we’re not limited to those markets. We give of a lot of bureaucracy. We also see that trend continuing with broadly to national and international organiza- When I became the CEO, we had to de- the convention planners and Fortune 500 com- tions and many times it’s event-specifi c, when fine our mission and vision. We interviewed panies that are far more willing to move their there is a crisis in the U.S. or overseas. thousands of our employees about their issues, conventions away from locations that had been We have tried to marry corporate dollars which helped educate us on how to move for- their tried-and-true spots. with organizations that we feel not only have ward. We established a set of core values; we Once people try us, we will more than met the essential need but are well run, ef- empowered people to make decisions and to likely win them over for many reasons: con- fi cient, and that need our help. We’re particu- not be afraid of making mistakes. ventions here do better in terms of delegate larly moved by organizations that are not as The men and women here today have attendance and spend, and it’s more convenient established that could use some organizational withstood the recession – they didn’t give up. and less expensive for many of the convention assistance. They’re working just as hard today as ever. hosts. We focus primarily on children, health I’ve tried to provide an environment CityCenter, specifi cally, was an attempt to care, education, seniors, and hunger. Our in- where people feel like their contributions are broaden people’s awareness and experi- dependent foundation, the MGM Foundation, going to be recognized, and that they will be ences beyond those of the typical Las Vegas is employee run; the employees decide where communicated with and rewarded for their ef- resort. It goes beyond the boundaries in resort that money goes because it’s their own. The forts. Broken down that way, a large company design, development, and management, but company pays the administrative costs and or- can be a series of smaller organizations that also expands the consumers’ own expectations ganizes everything for them, and we give sev- are all part of the same team. It gets to be more of design and of hospitality. That is a principal eral million dollars away to the targeted areas manageable in terms of the work product. I reason people come to Las Vegas – they want we believe we need to focus on. feel confi dent that the people around me are to experience something they can’t get at home We have an extraordinarily strong board- the most competent and I know we can tackle and they want to see something innovative level Corporate Social Responsibility commit- future challenges because we’re handling the and appealing. tee that is active with management. Internally, I present very admirably.• VOLUME 36, NUMBER 2 DISTRIBUTED WITH PERMISSION. COPYRIGHT © 2013 LEADERS MAGAZINE, INC. LEADERS 71