Kemmons Wilson

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Kemmons Wilson (January 5, 1913 – February 12, 2003) was the founder of the Holiday Inn chain of hotels.

He was born Charles Kemmons Wilson in Osceola, Arkansas, a son of Kemmons and Ruby "Doll" Wilson. His father was an insurance salesman who died when Kemmons was nine months old. Shortly thereafter, his mother, Doll, moved to Memphis, Tennessee, where she raised him.

He opened the first Holiday Inn motel in Memphis in 1952, and quickly added others to create an entire hotel chain. Holiday Inn went international in 1960.

Wilson was married to Dorothy Lee.

His autobiography, Half Luck and Half Brains, tells the story of the Holiday Inn.

Kemmons Wilson died in Memphis and is interred in Forest Hill Cemetery - Midtown in Memphis, Tennessee.

Contents

[edit] A Great Ethical Leader

Kemmons Wilson established himself as a leader in Memphis and the mid-south through his family, business, and community impact. To help us understand him as an individual and his effect on society, we must look at these attributes to understand the ethical nature of this man. Wilson gave his ‘old-fashioned and corny ideas’ on life to the USA Today (Wilson, 1997). Wilson came across an inspirational piece of writing during his lifetime and this garden philosophy provides insight to his approach to life and success:

For best results, this garden should be planted every day: Five rows of ‘P’eas: Preparedness, Promptness, Perseverance, Politeness, Prayer. Three rows of squash: Squash gossip, Squash criticism, Squash indifference. Five row of lettuce: Let us love one another, Let us be faithful, Let us be loyal, Let us be unselfish, Let us be truthful. Three rows of turnips: Turn up for church, Turn up with a new idea, Turn up with the determination to do a better job tomorrow than you did today. (p. 24).

[edit] Ethics in Family Life

To appreciate Kemmons Wilson for his ethical contributions, it is important to understand the origin of his values. His upbringing was not one of days at the pool and a round of nine holes of golf after lunch. In fact, he lived on a golf course for over fifty years, but never took it up. Wilson felt that ‘golf is for people with lots of time’ (Kerr & Wilson, 1996, p. 177).Wilson was born at the cusp of the Great Depression. His mother, Ruby Lloyd ‘Doll’ Wilson, was widowed at a young age and Wilson was less than a year old. Described as a ‘hard worker’, Wilson spanned industries as a youth to help support the family (1996).

At an early age, Wilson earned his first pay posing as the face of Sunbeam Bread and then continued doing any odd job he could find until he began selling papers for the Saturday Evening Post at the age of six. At that same age, his business spirit soon came to light after he discovered that the Ladies’ Home Journal publication could offer him the ability to work as a district manager and earn more money for his family. Wilson organized the neighborhood kids as his sales force. The children sold the magazines for three cents each, one cent went to Wilson and two went to each sales person (1996).

In 1930, with the full effect of the Great Depression upon the country, Doll was out of work and Kemmons knew that the family must make a living. Kemmons once stated, “I had to quit school to try and make us a living. At that time, it was more important for me to eat than it was to get an education” (p. 14). Going forward, he made it a priority in life to take care of his family through his business. This family first philosophy was highlighted by his vow to Doll that he would never marry. However, that changed when he met a girl from midtown Memphis by the name of Dorothy Lee (1996). Wilson married Dorothy after four years of dating and began their family soon after. Kemmons and Dorothy brought five children into the world and built their family on an ethical center they could depend on, church. Wilson was well into his business developing the Holiday Inn and found himself traveling up to fifty percent of the year. The Christ United Methodist Church was a constant in the family’s life and he made it a priority that the family attend regularly. Regardless of his hectic schedule, Kemmons and his family would sit together and participate in the service every Sunday. Wilson’s daughter Betty sums up the experience stating, “Mom and Dad gave us a tremendous Christian foundation…” (p. 109). This tradition went on to shape the strong moral philosophy of the family and helped to bring a constant in their lives.

In 1951, inspiration struck that would change Wilson’s life. It did not come in a boardroom or on a plane; it happened on a family trip to Washington D. C. Wilson noticed a problem when he was checking his family in to a motel room. Although at the time he was a millionaire, he knew that most traveling families could not afford this per head charge rate. Kemmons set out to rectify this injustice, and saw it as an opportunity to benefit the American family (Wilson, 1997). The value of hard work was not overlooked by Kemmons Wilson. Each of his children worked during the summer. The girls would work in the corporate office sorting mail and doing odd jobs, while the boys were mostly involved in construction oriented positions. “Mother and Dad always felt the importance of teaching us the value of a dollar” (Kerr & Wilson, 1996, p. 113), stated daughter Betty when contemplating the past. This work ethic was reinforced by Wilson’s insistence that they not, “…be too impressed with themselves” (p. 114), recalls the other daughter Carole. The two ethical values, hard work and humbleness, are weaved throughout Wilson and his children’s lives. Even today, each of his children and the majority of their immediate family are still involved heavily in the business begun by Kemmons Wilson.

Since Kemmons never completed high school, he wanted all his children to have the best opportunity for education possible. Every one of his children earned a college degree. Kemmons was formerly quoted saying: One wonders if it will be possible ever again for a man to build such a business empire on little more than hard work, ambition, luck, and clever entrepreneurship, or if, instead, business-school formulas will rule the future. The Wilson family itself is taking no chances: each of Kemmons’ three sons has attended Harvard business school. (Weathers, 1985). Kemmons showed the vision and selflessness he had for his family through his insistence that they complete their educations.

Family can be considered a perfect cross-section of moral fiber and ethical conjecture. It is an ever changing shape that must have a strong hand controlling it at all times. Wilson embodied this strong hand at the age of five when he realized that it was his duty to help provide for his struggling family (Kerr & Wilson, 1996). He showed his strength when he quit school to become the breadwinner for a mother who constantly struggled to find work herself. Kemmons demonstrated his moral stance, by attending church with his children regardless of his sporadic travel demands. The value of hard work was not overlooked by Wilson, but reinforced by his insistence that every child work in the summer and earn a wage, not be given one. Lastly, Wilson, who never had a father figure, showed his true love for his kids by encouraging each one to become a more educated, well-rounded person than himself. The attributes that his family history reveals are a testimony to his ethical legacy regarding his mother, wife, and children.

[edit] Ethics in Business

Wilson was a millionaire before he ever started the Holiday Inn hotel chain in 1952, but this shrewd businessman was ethical as well. Wilson’s father died when Wilson was very young and a young Kemmons took on many jobs to support his beloved mother, Doll. In his autobiography Half Luck and Half Brains (1996), he tells of selling magazines door-to-door, selling popcorn, his slot machine and jukebox businesses and other odd jobs that earned him credibility as an entrepreneur. His dedication to his family’s livelihood and dogged persistence showed the strength of his character. Wilson was a man of his word. He made most purchases on credit, beginning with the fifty dollars he borrowed to buy the first popcorn machine. He was always good for it. In fact, he paid one dollar a week for the machine and $2.50 a week to rent the space and electricity in the lobby in front of a movie theatre (Weathers, 1985). He did business on handshakes and promises –and was successful. His reliability and trustworthiness are clear indicators of his ethics. His son Bob was previously quoted saying, Probably the best thing about him is how he instilled in us the ethic that we always do what we say we will do…I think you could work with us and never have a legal document…once you reach an agreement with him, his word is his bond with all of us. (Kerr & Wilson, 1996, p. 179).

A fateful Wilson family vacation to Washington, D.C. in 1951 changed the way that the rest of the world vacationed. Wilson was outraged at the audacity of the practices of most hotel establishments (Wilson, 1997). The basic hotel rate was about eight dollars per night (1997). However, most hotels charged an additional two dollars per child. This additional charge would send the price of one night stay for the Wilson family to $18 a night, which was astronomical for most middle class families at the time (1997). Because of this, he made the decision to create his own hotel chain, and to offer families a safe, clean and affordable place to stay, setting the standard for the future of the hotel industry.

According to the Encyclopedia of Arkansas History and Culture, Wilson saw the benefits of having a dependable chain with no surprises and is quoted as saying, “…I wanted to create a brand that people could trust” (Hendricks, 2006). He believed in giving people ‘consistent quality at an affordable price’ (De Lollis, 2007). People loved the chain’s clean pools, free ice, uniform layouts, and four-story-tall garish green road signs (2007). Wilson pioneered a new hotel practice with his ‘Great Sign’ (Hendricks, 2006). He removed the ‘vacancy, no vacancy’ wording from the sign because whether or not there were vacancies, each innkeeper would make sure a visitor would have a place to sleep (2006). If a Holiday Inn had no vacancy, the innkeepers, would phone ahead and make reservations at the next available hotel, be it Holiday Inn or the local Bed and Breakfast. He was customer-centric and fair-minded, which is both ethical and admirable.

In the 1970s the controversial decision to enter the gambling business was made. Holiday Inn lost two board members in the process of closing the deal and it was rumored that older board members opposed Holiday Inn's foray into gambling for religious reasons. Wilson himself resigned from his role as chairman of the board as the gambling deal was being concluded which made outsiders wonder if he too found gambling offensive. In fact, it was Wilson who initiated the gambling deal with Harrah's casinos. "I never had any problems with gambling," he insisted (Weathers, 1985). "If it's run right, it's just like any other business. Besides, I don't think you can change the morals of the world" (1985). Wilson illustrated this by telling how he once had to talk to partner Wallace Johnson, who was also very religious, into allowing the hotel chain to serve whiskey: "I said, 'Wallace, we've got to have whiskey. I mean, it's all part of the hotel business.' And he understood" (1985). Wilson, who kept a Bible on his desk, had no trouble reconciling his business principles with his religious beliefs.

His obituary explains that, like the Big Mac—another American invention that gained a world market, the Holiday Inn was based on a simple idea (2006). For years, travelers must have grumbled about the grubby premises they were offered. Wilson saw an opportunity and provided an alternative. He probably would not have minded his hotels being compared to Big Macs. ‘You can cater to rich people,’ he said, ‘and I’ll take the rest. The good Lord made more of them’ (Economist, 2003). This sense of humility and fairness is a strikingly refreshing perspective. His focus on the common man, desire to give families a fair and reasonable price, and the trust that his brand established show the integrity of Wilson as a businessman. But that is not to say he was perfect. In fact, Wilson built a house on the wrong lot – not once, but twice (Kerr & Wilson, 1996). He also advised a friend to sell the Elvis Presley record label to RCA, costing his friend millions down the road and enduring years of teasing for it afterward (1996). Wilson freely admits that he is not flawless, saying that he had made a million mistakes. Kemmons once stated:

My own success was attended by quite a few failures along the way, but I refuse to make the biggest mistake of all –worrying too much about making mistakes. A man who never makes mistakes is one who never does anything. I have made as many or more mistakes as most people, but I always try to learn from them and to profit from my failures… (Wilson, 1997).

Yet, he spelled out his philosophy of leadership by example, “I am always leading. I feel the boss has got to lead. I never ask anybody to do anything I wouldn’t do myself” (Success, 1997). This unpretentious charisma, humility and respect for employees are exactly what made him a great ethical leader.

Wilson was not overly concerned with great wealth. He stated, “It was one way to keep score, but certainly not the best” (Weathers, 1985). True to the ideals of an ethical leader, he was fiscally responsible and a good steward of money.

You can often tell a lot about people by the legacy they leave behind. Wilson’s five children have each grown up to be successful businesspeople and citizens, carrying on the family hotel business, and even starting some of their own. To honor their father, Kemmons Wilson Jr. and his two brothers have teamed up with InterContinental Hotels Group—a London-based firm, to ‘restore[ing] the great legacy my father and others worked so hard to establish’ (De Lollis, 2007). Kemmons Wilson is a shining example of a man who overcame tumultuous times and obstacles to be successful. He chased the American Dream and caught it.

[edit] Ethics in the Community

George Bernard Shaw once stated, “I am of the opinion that my life belongs to the community, and as long as I live it is my privilege to do for it whatever I can” (Shaw, 2006). How can an individual exemplify ethical behavior in the community? One way for individuals to demonstrate ethical behavior is by recognizing their responsibility and consistently engaging in the activities that positively support the entire community.

Throughout his life, Kemmons Wilson demonstrated ethics in the community through numerous ways. During World War II, Wilson not only served his community, but his country (Kerr & Wilson, 1996). At the age of 31, Kemmons decided to join the United States Air Force which commanded Kemmons to participate in The Hump Airlift operation (1996). This operation has been described as ‘a military miracle that saved one-fifth of the world’s people’ (1996). In this situation, Kemmons recognized and accepted his responsibility to his community, by serving his country.

Kemmons Wilson was a hard-working businessman. Although his business life often required much of his time, Wilson maintained the desire and enthusiasm to involve himself with organizations that help support the community. His desire and enthusiasm is apparent because: Kemmons was active in various charitable as well as civic organizations (Shook & Bingaman, 1975). In 1973, Wilson served as a national chairman for the American Heart Fund—an organization associated with the American Heart Association (1975). Also in the same year Wilson received recognition as an honorary regional chairman for the March of Dimes (1975). Wilson’s involvement with organizations such as the American Heart Fund, and the March of Dimes, exemplify his commitment to the local communities. Kemmons Wilson held several positions with other organizations as well including but not limited to: member of the Board of Managers for Methodist Hospital, the Century Club of Memphis State University, the Newcomen Society; and the Advisory Board of Greater Memphis State Inc. (1975). Also in 1972, Wilson served as the president of the Home Builders Association of Memphis and as a board chairman for the Memphis Area Chamber of Commerce (1975).

Not only was Kemmons Wilson charitable, his wife, Dorothy Wilson, was also considered a philanthropist. She is noted for her involvement with local schools in the midsouth community. Dorothy honored her husband by establishing the Kemmons Wilson Counseling and Leadership Development Center at the University of Memphis ( Salomon, 2001). Dorothy Wilson’s charitable works did not go unnoticed. She received several recognitions along with local buildings honoring her name. Dorothy received many honors including: Tennessee Mother of the Year, American Mother of the Year—an award presented by President Richard Nixon, the Wilson Field House on campus at a local private school displays her honored name, while another establishment founded the Dorothy Lee Wilson Learning Center (2001). It is clear that both Kemmons and Dorothy Wilson shared the same fervor for giving back to the community.

Although Kemmons Wilson is no longer with us, his legacy remains alive through his children. Through The Kemmons Wilson Family Foundation, Kemmons’ children, Spence, Robert, Kemmons Jr., Carole Wilson West, and Betty Wilson Moore, are able to uphold their father’s values and beliefs. The Foundation states,

The Kemmons Wilson Family Foundation is a family-run foundation, which honors the legacy of giving, established by its founder Kemmons Wilson. The Foundation intends to positively impact and transform the Memphis community through its grant-making and has established the following categories for giving: community outreach and development, advancement of youth, enrichment of education, faith-based ministries, and health and research-related organizations. (Kemmons, 2005).

The Foundation reflects the beliefs, interests and passions of the family and recognizes the importance of giving to organizations that impact the community in a direct and positive manner. Also the Foundation expects the grant-receiving organization to be careful stewards of the funds entrusted to them.

Wilson and children have made a positive impact in the community. Their positive influence and support is continually shown throughout many Memphis communities and organizations. The Foundation, currently governed by Kemmons’ five children, has made a strategic financial commitment to the growth and advancement of Memphis by funding 120 organizations on an annual basis (2005). Kemmons Wilson and his children have supported organizations such as Bridges, Youth Villages, Pink Palace Family of Museums, Memphis University School, St. Jude Research Hospital and Memphis Grizzlies House. Although Kemmons did not complete his education, he continually provided support for colleges and universities in the community. Kemmons’ children, through The Kemmons Wilson Family Foundation, have established several scholarship funds at Christian Brothers University and Rhodes College. In 2002, The University of Memphis opened The Kemmons Wilson School of Hospitality and Resort Management (2005). This school was sponsored by a fifteen million dollar gift from Kemmons Wilson (2005). Kemmons Wilson has left a legacy that fosters dedication to community involvement and support.

In conclusion, Kemmons Wilson has displayed ethical behavior throughout his life. In his family life, Kemmons demonstrated ethical behavior by his willingness to support his family during the Great Depression. Wilson clearly accepted his responsibility to sustain the family. Kemmons Wilson was also an ethical businessman and is noted for the ‘kids stay for free’ revolution (Kerr & Wilson, 1996, p. 55). Due to his personal experiences during family vacations, Kemmons recognized that allowing children, who shared the room with their parents, to stay for free was not just a wise business move, but a decision based on ethics. Although Kemmons’ hotel success boosted him to multi-million dollar status, he never failed to consistently support his local community. From supporting organizations, such as the American Heart Fund and March of Dimes, which help the community to establishing scholarship funds at local colleges and universities, Kemmons was continually involved with giving back to the community. After their father’s death, Kemmons’ children kept his legacy alive by generously supporting the community through The Kemmons Wilson Family Foundation. The ethics exhibited by Kemmons Wilson weave together a man truly deserving of being a highlighted as a Great Ethical Midsouth Leader.

[edit] Basketball team owner

In July, 1974, Wilson, along with Isaac Hayes, Al Wilson (singer), Mike Storen and others, bought the Memphis Tams franchise in the American Basketball Association. They changed the team to the Memphis Sounds. They quickly built a strong roster, obtaining players such as Mel Daniels and Rick Mount. The team was the most successful pro basketball team that Memphis ever fielded; it finished fourth in the ABA's Eastern Division, advancing to the 1975 ABA Playoffs before losing the Eastern Division semifinal series four games to one to the eventual 1975 ABA champion Kentucky Colonels. Following the season, the Sounds were sold to a group in Baltimore, Maryland where they moved to become the short-lived Baltimore Claws.

[edit] References

  • De Lollis, Barbara. (2007). Holiday Inn chain gives itself a face-lift. USA Today. Retrieved on September 23, 2007 from http://usatoday.com/money/industries/travel/2007-07-19-holiday-inn_N.htm
  • Economist, The. (2003). Kemmons Wilson. Economist, 366 (8313). Retrieved September 12, 2007 from Academic Search Premier.
  • Hendricks, Nancy. (2006). Charles Kemmons Wilson (1913-2003). [Electronic version]. The Encyclopedia of Arkansas History & Culture. Retrieved on September 23, 2007 from http://encyclopediaofarkansas.net/encyclopedia
  • Kerr, Robert, & Wilson Kemmons. (1996). Half Luck and Half Brains: The Kemmons Wilson, Holiday Inn Story. Nashville, TN: Hambleton-Hill Publishing, Inc.
  • Salomon, Alan. (2001). Dorothy Wilson, Wife Of Holiday Founder, Dies At 84. Retrieved on September 27, 2007 from http://www.hotelinteractive.com.
  • Shaw, George Bernard. (2006). George Bernard Shaw. Retrieved on September 27, 2007 from http://www.wisdomquotes.com.
  • Shook, Robert L. & Bingaman, Ron. (1975). Total commitment. New York, NY: Frederick Fell Publishers, Inc.
  • Success secrets of Memphis’ most prolific entrepreneur. (1997). [Electronic version]. Business Perspectives. 10 (1). Retrieved on September 23, 2007 from EbscoHost.
  • The Kemmons Wilson Family Foundation. (2005). Retrieved on September 23, 2007 from http://kwilson.com/wilsonfoundation.html.
  • Weathers, Ed. (1985). The Last Tycoon Is This Man America’s Happiest Millionaire? [Electronic Version] Memphis. Retrieved September 23, 2007 from http://www.orangelake.com/kem_archive_07.html.
  • Wilson, Kemmons. (1997). What accounts for success? USA Today Magazine, 126 (2628). Retrieved September 12, 2007 from Academic Search Premier.

[edit] External links