Exceeding Carnival Guests’ Expectation with a Listening Ear

Jo-Carolyn Goode | 2/23/2018, 11:23 a.m.
As a child, my mother often said the phrase, “You have two ears and one mouth because you need to …
Arnold Donald, CEO of Carnival Corporation

As a child, my mother often said the phrase, “You have two ears and one mouth because you need to listen more than you speak.” Well, Arnold Donald, Carnival Corporation’s CEO, must have heard the same thing as a kid since he counts having a listening ear as one of the keys to his success.

“It’s the importance of listening. It seems simple, but it is not always as easy as it sounds.” He continued, “You have to embrace the role of being a good listener and you have to learn how to listen. I believe everyone you encounter has something to offer and something you can learn from, but you have to be patient, ask the right questions and sometimes extract the most important information. Even when you think you know the answer, you should listen first.” Giving examples of how he always listens to customers, guests, employees, partners, suppliers, “ Donald said, “If you are sincere in your listening, you will be rewarded with insights that can lead to short- and long-term success.”

In celebration of Black History Month, we salute Arnold Donald as we learn more about his rise to the top.

The New Orleans born native grew up poor in the Ninth Ward where murders, stabbings, and shootings were normal occurrences. He grew up during a time when America was changing. African Americans, who were thought of as inferior, were finding their voice to challenge the unjust in the world. He knew his circumstances didn’t dictate his outcome in life.

Never having been exposed to the field of business, he was determined to become a CEO of a Fortune 500 company. To obtain his goal, he knew he needed a solid education. He earned his bachelor's degree in economics from Carleton College in 1976, another bachelor’s degree in mechanical engineering from Washington University from St. Louis in 1977, and an MBA from the University Of Chicago Graduate School Of Business in 1980.

Next, he gained experience. That came with his job at Monsanto, an agricultural company. Rising through the ranks over the course of 23 years, he would hold such positions as president of their nutrition and consumer sectors and senior vice president of the parent company. He left that company in 2013 to become the CEO of the Carnival Corporation. He did it! He had achieved his goal.

“I think everything you experience in life culminates into who you are today. From my youth to my education and throughout my career, all of those different events and influences have had an impact on how I view the world, run a business and manage people to help maximize success for everyone involved,” Donald said.

Among those who highly influenced him were those who were his first role models, his parents, Warren and Hilda Donald. “They instilled in us early on that we could overcome adversity and accomplish anything we wanted in life.” Values, like getting a good education, working hard, and having compassion, are some of the nuggets that are inscribed in Donald’s brain because of the pair. “Their influences have clearly shaped my life and career. That is something I’m truly grateful for.”

As the head of the Carnival Corporation, Donald represents the company’s commitment to diversity and inclusion in all of its brands. He stirred up the company and made major changes that resulted in the growth of their profit margin by millions. The world’s largest leisure travel company generated nearly 11 percent earnings per share (EPS) growth for 2017. This is on top of 28 percent EPS growth for 2016, 40 percent EPS growth for 2015 and 25 percent EPS growth in 2014. “Our job is to help those who have never cruised to better understand why going on a cruise is such a great vacation, and at an exceptional value compared to land-based vacations,” said the Donald. To do that, Donald knows that as a company “we have to remove mental barriers by dispelling myths about cruising and tell our story in a way that stirs emotion and gets people excited about going on a cruise vacation.”

One way he is getting people excited is by offering new experiences. Carnival was the first cruise company to sail from the U.S. to Cuba in over 40 years. That makes him extremely proud. “Cuba chose to change a longstanding policy that no Cuban-born individuals, wherever they lived in the world, could come or go to Cuba by sea. The policy change was made as a national announcement and Cuba cited Carnival Corporation for the role we played in that.”

He offers Houstonians to try out those new, exciting experiences. Donald noted that the Port of Galveston, the closest port to Houston, is one of the most popular and fastest growing homeport regions. One of the company’s newest ships, the Carnival Vista, is located in Galveston and offers the latest and greatest in technology and amenities. Houstonians, as well as others, can take advantage of shorter, more affordable cruises to better fit the needs of those with tight budgets without shortchanging them of the experience that is unique to Carnival.

As one of a few African American CEOs, Donald understands what is on his broad shoulders but he doesn’t let that be the center of his focus. “While there are many capable, effective and successful African Americans in entry-level and middle management ranks of many of our Fortune 500 companies, our progress in growing the number of African American CEOs in large U.S. corporations is not where it needs to be. I’ve had great bosses and mentors, and some not-so-great, but my experiences have reaffirmed for me that it is always important to always focus on results and not let distractions creep in that keep you from delivering results and achieving your goals. Results do speak louder than words.”

Today Donald is the picture of success. He credits that success, not in a monetary value, but in the love and support that he has from his family, especially from his wife, Hazel, his children, and their six grandchildren.

Read more of the interview below.

Arnold Donald, CEO of Carnival Corporation

Arnold Donald, CEO of Carnival Corporation

Jo: How have your life experiences made you the leader you are today?

Arnold: I think everything you experience in life culminates into who you are today. From my youth to my education and throughout my career, all of those different events and influences have had an impact on how I view the world, run a business and manage people to help maximize success for everyone involved.

For me, it started with my parents and my three sisters and brother, and my teachers. They gave me the confidence to know that if I was a good student and earned an education and was determined to work hard for what I wanted, I could do anything I put my mind to. It was important for me to learn how to set goals, form a strategy and a plan, and then take all the necessary steps to maximize my chances for success. I’m extremely grateful for the positive influences I had at home and at school who took the time to teach me those early lessons and encourage me to set my sights on achieving great things.

Those influences still impact how I lead at Carnival Corporation and work with colleagues at all levels of the corporation. I want to inspire those around me by collaborating with them and determining together what it is that we are trying to accomplish, which creates an environment where people feel ownership over the work, the goals and, ultimately, the success.

Jo: What is the most important lesson you’ve learned in your career to date?

Arnold: This one is easy – it’s the importance of listening. It seems simple, but it is not always as easy as it sounds. You have to embrace the role of being a good listener and you have to learn how to listen. I believe everyone you encounter has something to offer and something you can learn from, but you have to be patient, ask the right questions and sometimes extract the most important information. Even when you think you know the answer, you should listen first.

If you listen to your customers, in our case our guests, they will tell you what they want. If you listen to your employees, they will tell you how to deliver on what the customer wants, which for us means consistently exceeding guest expectations and constantly innovating every aspect of the guest experience on a cruise vacation. If you listen to your communities, partners, suppliers and other stakeholders impacting your business and your goals, they will also help provide solutions and ideas. If you are sincere in your listening, you will be rewarded with insights that can lead to short- and long-term success.

Jo: How do you encourage minorities to be economically independent?

Arnold: Looking back, I am still deeply impacted by the encouragement from the teachers at St. Augustine, my all-black Catholic high school in New Orleans. Every day, several times a day, they would announce over the intercom: “Gentlemen, prepare yourselves, for one day you will run the world!” In an era of desegregation, they made us believe, despite what others or some parts of society were saying, that we could overcome any obstacles we faced and achieve the goals we set for ourselves, which is something that applies to every single one of us in life.

I tell future leaders to pursue what you are passionate about and don’t be afraid to chase your dreams. If you are doing something you love, then that passion will always burn hot, and it will help you have strength in the face of challenges and a sense of humility when you taste success. If you can focus on your goals, stay determined to do whatever it takes to get there and block out distractions, you will have the foundation to be rewarded in whatever you choose to do.

Jo: There are very few African American CEOs. What do you think is keeping African Americans out of the executive suite?

Arnold: You are right. While there are many capable, effective and successful African Americans in entry level and middle management ranks of many of our Fortune 500 companies, our progress in growing the number of African American CEOs in large U.S. corporations is not where it needs to be. I’ve had great bosses and mentors, and some not-so-great, but my experiences have reaffirmed for me that it is always important to always focus on results and not let distractions creep in that keep you from delivering results and achieving your goals. Results do speak louder than words.

It is also important to seek “sponsorship” for opportunities that would help validate and test one’s capabilities for consideration as a CEO. For example, leading a key growth market or taking an expatriate assignment or building out a key innovation for the corporation. These experiences can make a difference and build confidence with a Board when they consider CEO candidates. At Carnival Corporation, we actively engineer diversity of thinking into how we do business, and actively seek visible development opportunities for our diversity leaders.

Jo: What other leaders do you admire?

Arnold: I will always admire my parents, Warren and Hilda, who were incredible role models for our family, and they instilled in us early on that we could overcome adversity and accomplish anything we wanted in life. They made it very clear that education and doing our best in school was extremely important, along with working hard to get ahead and having compassion for others. Their influences have clearly shaped my life and career. That is something I’m truly grateful for.

From a business perspective, our chairman Micky Arison has been an inspiring example of great leadership to me. When he brought me in as CEO after I had served 12 years on the Carnival Corporation board, he made it very clear that I was in charge. He promised to be there for me around the clock for guidance and insights based on his experience, which has been invaluable, but he was empowering me to lead the company he had spent most of his life building. To this day, that level of trust he put in me remains a rewarding and humbling responsibility, and an important lesson he taught me in leadership.

Jo: With the emphasis on being an African American CEO, do you think it takes away from your personal accomplishments?

Arnold: Not at all. My general mindset in my career has always been to focus on business results knowing that the rest will take care of itself, including any personal accolades that may come along the way. As a leader, my belief is that you need to create an environment where everyone around you works together to achieve common objectives and approaches each day with a results-oriented mentality. In our case, we want to consistently exceed guest expectations and provide the best vacation experience in the world. When we are aligned around a strategy, with a true dedication and a commitment to working together we’ll achieve success together.

I’m proud to be the CEO of Carnival Corporation, and I’m certainly proud to be African American. I look at my role as a great responsibility, and also as an opportunity to engineer diversity of thinking into our teams, which drives our innovation and will continue to make this company one of the best places to work in the world. But at the end of the day, I’m responsible for our performance, and we have to focus squarely on working together to get results and better serve our guests.

Jo: What have the highlights and challenges been during your tenure at Carnival?

Arnold: One of the things I'm most proud of was being the first cruise company to sail from the U.S. to Cuba in over 40 years. But I’m even more proud of the fact that through that process, Cuba chose to change a longstanding policy that no Cuban-born individuals, wherever they lived in the world, could come or go to Cuba by sea. The policy change was made as a national announcement and Cuba cited Carnival Corporation for the role we played in that. It was a tremendous experience and had far-reaching implications for the people of Cuba, including feeling more positive about a brighter future.

My highlights about how great this experience has been would take up too much space, but the bottom line is that we're in a wonderful business. We bring people together and we bring the world closer, which helps us celebrate our differences rather than to fear them. That is what travel does, and that's what the cruise industry does in a big way. That's why I'm so happy to be in the business and work with our teams around the world to help our guests make great vacation memories.

The primary challenge today – and also a significant opportunity for our industry – is the same as it was when I took this role nearly five years ago. Our job is to help those who have never cruised to better understand why going on a cruise is such a great vacation, and at an exceptional value compared to land-based vacations. More and more people are discovering cruising as a great vacation, which is why cruising is growing 20 percent faster than land-based vacations. Our challenge is to help people understand what cruising is all about so that they will consider a cruise for their next vacation.

We have made great progress in driving the cruise industry to be the fastest-growing segment of the vacation market, but the reality is that we are still underpenetrated in every region and have significant growth opportunities everywhere in the world. Our goal is simple: We want to be in the consideration set when people are sitting around the kitchen table making their vacation plans. To do that, we have to remove mental barriers by dispelling myths about cruising and tell our story in a way that stirs emotion and gets people excited about going on a cruise vacation.

People from all walks of life love to travel, so our focus is on finding ways to show them that cruising is the best vacation in the world and an exceptional value. Once travelers try a cruise for the first time, most of them are hooked for life, and you can’t ask for a better growth opportunity than that.

Jo: What are your priorities as CEO?

Arnold: Our goal in everything we do across the company is to consistently exceed guest expectations. That mantra drives our whole business and our performance. We also collaborate across our nine global cruise brands to leverage our global scale and constantly innovate how we serve guests through the sharing of best practices and by utilizing the power of diversity of thinking across the organization. For our shareholders, we exceed expectations by creating new demand for cruising, growing the market and achieving on our financial metrics, including reaching and sustaining a double-digit return on invested capital (ROIC), which we are on pace to do in 2018.

Jo: Is there something that you want the Houston community to better understand about your work at Carnival?

Arnold: With its proximity to the Port of Galveston, the Houston area is one of our most popular and fastest-growing homeport regions. People from Houston and all over Texas enjoy the convenience and affordability of being able to drive to Galveston to enjoy a cruise to the Caribbean, the world’s most popular region for cruise vacations.

We are also growing our presence in Galveston to offer even more options to our guests, including what is currently the newest ship from our Carnival Cruise Line brand, Carnival Vista, which relocates to Galveston this September. Carnival Vista is an amazing new ship that will provide guests from the entire region with a great opportunity to explore the latest in onboard innovations and amenities while visiting several beautiful destinations as part of two seven-day Caribbean itineraries.

Jo: Is there anything else you want to add?

Arnold: For those of you in Houston who have not been on a cruise, our ships in Galveston also offer shorter cruises at great values that will enable you and your family to unwind for few days and enjoy a vacation on the open sea, while seeing some beautiful areas and experiencing new cultures. It is something new to try with little commitment – and my bet is that we will exceed your expectations and you will want to go on another cruise real soon.

I should add that with nine cruise brands, we have a vacation for everyone and every occasion. You may want to do family trip to Alaska on our Princess Cruises, Holland America Line or Carnival Cruise Line brands. Or a Mediterranean cruise on one of our U.S. or European brands. Or an anniversary trip with your spouse on our ultra-luxury Seabourn brand. Whatever it is, I encourage people to talk to a travel agent and plan a cruise that matches what you are looking for in that particular trip. That way, you’ll end up with the right brand experience – and a great vacation.

Money.CNN.com was used as a source.