Sunday, January 11, 2015

Change At Norwegian and Regal Princess Part Two



In my experience, it does not usually make much difference who is the CEO of a large corporation. Most of the time, the corporation just proceeds along much as it did in the past despite changes in the CEO. Perhaps there is some change in the corporate slogans or some acquisitions or spin offs but no meaningful changes.

This general rule, however, has not been true in the cruise industry. The three major lines have all had leaders who not only made a visible mark but who became synonymous with their companies. This has certainly been true at Norwegian Cruise Line.

Since coming to Norwegian Cruise Line seven years ago, Kevin Sheehan has turned things around. Prior to his arrival, the line had some quite creative ideas but you only had to go on its ships to see that there were execution problems and poor morale. When Sheehan arrived, he gave the line new direction and released the talent of its executives and employees.
Just about a year ago, I was on a press cruise on Norwegian Getaway. Mr. Sheehan made a short presentation to the assembled journalists. The charts and Powerpoint slides that he presented told a good story of growth and profitability. But what was interesting was the charismatic style of leadership. Sheehan was not the stereotypical MBA executive but rather delighted in playing the street-wise New Yorker, energetic, fun to listen to and likable.

He told us to talk to the crew about how they felt about the company, confident that we would find them solidly behind him. At that time, Getaway had just come into service and the cruise lines usually use their best people to bring a ship into service. Naturally, they were going to support the boss. But the next week, I was sailing on Norwegian Sky, one of the line's older ships. How did its crew feel about Norwegian? I found that not only did those people enthusiastically support Norwegian but that they loved the CEO. To hear them talk, you'd think that Sheehan was a popular athlete or television personality.

As a result, it was disappointing to learn that Mr. Sheehan has now left Norwegian. When a person has done so much to change a company (or any organization for that matter), you have to wonder how it will fare without him. Hopefully, the corporate culture he created will endure but without his dynamic leadership, the future is clouded in mystery.

Mr. Sheehan's successor is Frank Del Rio from Prestige Holdings, the luxury cruise company (Oceania and Regent Seven Seas) that was recently acquired by Norwegian. We wish Mr. Del Rio success in his new job.

This week on Beyondships, we have part two of our profile of Princess Cruises' latest ship, Regal Princess. This includes interviews with the captain, http://www.beyondships2.com/regal-princess-captain.html the hotel general manager http://www.beyondships2.com/regal-princess-hotel-general-manager.html and the cruise director http://www.beyondships2.com/regal-princess-cruise-director.html. We also have a review of the Crown Grill specialty restaurant. http://www.beyondships2.com/regal-princess-crown-grill.html Finally, we present a collection of menus from the main dining rooms and specialty restaurants on Regal Princess. http://www.beyondships2.com/regal-princess-menus.html


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