December 18, 2008

Mr. Jack Callison: CEO
Holiday Retirement
2250 McGilchrist St.
Salem, Oregon 97302

     After due deliberation and extensive research of Holiday Retirement and Fortress Investment Group I have decided to ‘step outside the box’, realizing the possible complications/results of doing so. My wife and I have worked for Holiday Retirement just over ten months as co-managers. In that time we have worked under three different sets of managers in the same community. Each set of managers claim a different “Holiday” concept.
     Our second set of managers signed us off on the Grass Roots book. After a ten minute ride to the hospital and back with the bus driver we were told it is all that was needed and signed off. We were signed off the maintenance part after a single tour with the maintenance man. The dishwasher sign-off was done because I had to fill in one night for a no-show. My wife was signed off regarding the kitchen simply because we used to own a restaurant (same for me). And so on.
     Having been allowed only once to muddle my way through Kronos payroll (with the help of home office) I was informed that the manager was not about to have me do Kronos because home office would be calling him to verify it was done correctly. He stated he did not intend to do Kronos twice just to verify, so he would do it. He saw no reason for co-managers to deal with petty cash (he locked the cash box) or PCards, so we were not allowed to do so – he did not believe in a ‘proxy’.
     The present managers do allow me to handle Kronos on a daily basis, which is appreciated. My wife and I have the knowledge and background to run the building, but at this point I am unsure whether we could comfortably run the business. We are growing familiar with the ‘Portal’ due to our self-exploring and we know how to call home office for help. I pour a pretty decent cup of coffee and my wife does tours and related paperwork while I handle the building.  To date neither of us has ever been shown anything regarding Sysco ordering, nor most other records pertaining to the operation of the business. I handle the paperwork relating to hiring staff and the separation thereof.
     So far I have completely revamped personnel files and various other filings on three separate occasions because each manager claimed a different requirement according to Holiday policy. I have read through the books pertaining to the operation of a Holiday Community, but a co-manager would have to be a complete idiot to go against a manager when it comes to operating according to Holiday guidelines; especially if they wish to keep their jobs. Each manager claims they ARE Holiday – and we must forget what we might have learned with any prior managers because their way was wrong. The present managers are to train us in the various phases/paperwork and we realize we will make mistakes. This is part of the process.
     How much longer we will continue to deal with these attitudes is unknown, but the truth is it makes absolutely no sense for it to be allowed. This is not how a successful business was built and remained profitable. At what point was each community allowed to become its own tiny fiefdom with its own set of rules running counter-productive to the corporate guidelines. I cannot relate how many managers I have heard use the word “MY” regarding the community – “This is MY building”, “This is MY food", "MY tables", "MY residents”. This MY factor replaces the Managerial position with a sole ownership mind frame. It is not MY community – a manager is only entrusted to conduct community business for the betterment and profitability of the parent organization (Holiday/Fortress). They are Managers – they are not owners.
     With the economy taking a hard downward slide the census will naturally suffer (already proven) and unless a “Mickey D” effect is initiated throughout the system – and enforced – then the downward spiral will continue. We are in an Official Recession! Children are taking their parents home in order to ease the financial burden. Homes are not selling, which prevents potential residents from being eager to put out the non-refundable amounts required for moving in. Elderly people are taking in boarders to help meet the cost of ‘getting by’. Holiday Retirement IS a great deal for the elderly, but convincing them of this grows more difficult each day. One of the primes for doing this is having them know, beyond a doubt, each and every community operates in the exact same way – without exception, utilizing the Touch. Offering clients a lifestyle is much more than just renting an apartment and collecting the rent. Holiday offers things which I, personally, at almost sixty-five, would consider for my own retirement.
     My wife and I came out of semi-retirement because we fell in love with the Holiday Touch concept – and we are not seeing it. One Manager tells of throwing a glass against a dishwashing machine and shattering it in order to ‘get the attention’ of employees because the glass was dirty – and tells the story with pride. Another one claims every female staff member in every community he has worked made offers to leave her husband for him because he is so wonderful to be around. Yet another screams at employees and residents in anger. Another displays blatant bigotry against Jews and lesbians, especially employees. Others use the threat of eviction when they feel the residents complain too much. A manager buys a pressure washer for the kitchen, takes it home to use it on his travel trailer where he drops and breaks it, but does not replace it – community budget money out the window, and yet another takes pride in the number of co-managers they ‘get rid of’.
     This is the Holiday Touch? Yet it is allowed, and apparently even condoned. The elderly residents depend upon management and staff for ‘stability’ in their lives. The Holiday concept personifies this, but the indifference to this concept out in the communities is felt by the residents. This indifference, this MY feeling, results in a growing census problem throughout the company. All of the weekly conference calls being done are meaningless as long as the indifference to the Holiday concept is in practice. The calls are reminiscent of the old Amway meetings.
     Soon we may simply write Holiday off as an experience and retire again. We love our jobs and we are appreciative of the residents we are allowed to care for, but we would be failures if we did so under this indifference.
     At the Leadership Academy in Oregon I was presented with the Heart of Holiday Award on October 31, 2008, which was most humbling to me. The week long session showed us what the Holiday concept SHOULD be. My question is – why isn’t it this way? When any employee, from management to staff, is constantly under pressure of implied termination that employee cannot perform to their best potential. When threats take precedence over compliments the employee becomes hesitant to display an extra effort. Without the employee’s willingness and eagerness to put forth that extra effort the work becomes unfulfilling and employee turn-over increases, as well as resident census problems.
     We recently had the privilege of our RD asking us to cover another community in order to give the onsite management team a couple of days off. The Executive Chef, (xxxxx xxxxxxxx), was coping with a kitchen steam table replacement. His performance during this nightmare was exemplary. The food preparation and presentation never faltered from his usual ability. He is a true Holiday Chef. I mention this because he deserves complimenting for the extra effort put forth by him and his staff.
     Mr. Callison – people talk – and the rumor mill flies. As CEO you are in a position where you most likely do not realize the degree of uncertainty out in the field. Managers, co-managers, staff, and even the residents of the communities, are extremely concerned and fearful for their jobs and/or communities. It does not actually matter whether there is a factual basis for the talk – it matters that the unease and fear lend credibility. As the new CEO of Holiday/Fortress, a group barely above ’flat lining’ on the market, you are the unknown focal point. Wal-Mart had the visible icon of Sam. KFC had the Colonel. Holiday had Bill Colson. Each of them was a personal touch for the public and the employees to believe in, to ‘look up to’ in hard times – and in good times. People need such an icon to give their work meaning and purpose. Whether or not the icon is real is not important – it is the fantasy of the belief which creates a belief of its own.
     The consensus is as follows: Fortress is going to eliminate a lot of RDs by increasing the number of communities handled by each RD. The recent addendum to the re-hire policy is construed as meaning Fortress is about to ‘dump’ the ‘sweet sixteen’ and several other communities. The addendum is to allow personnel to remain after their jobs are eliminated; causing a fear others will lose their jobs as closed community staff gets transferred. The biggest talk is that Fortress is considering a bankruptcy restructure. People believe the worst; it has a better credibility to explain an unknown.
     As the CEO, with your background, you are the ‘fall guy’ – taking the brunt for whatever evolves. Bill Colson (and family) were a constant to their employees, most never saw (or set aside) his business acumen. They believed in him because he did occasional acts of benevolence which were publicized. CEOs, to employees, are the scapegoats – they change rapidly. CEOs are a distant phantom with the authority to effect an instant disruption in employee lifestyle – the ‘icon’ isn’t there. Only you (and Fortress) can create the viability and a semblance of stability to weather the downturn. As it stands now I would not be surprised to learn about employees beginning to leave Holiday starting not long after the New Year. I hope I am wrong.
     Fortress needs to create a totally new and modernized concept. The one so far is a remake of Bill Colson - and XL Management is doing a much better job.
     On a final note, Mr. Callison, my wife and I have notified our RD of our resignation. We wish you a positive experience as CEO and wanted to express what we have experienced and observed. Actually, sir, we both have researched you and believe if anyone can turn this company around – it is you. We both hope Fortress will give you the time to do so.
    

Thank you for your time;

(xxxxxxxxx xxxxxxxxx)
Co-Manager
(Community name deleted)