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If Conrad Hilton and Paul Rasch were to look around the world and choose a company they would consider "first-class,"
it would be one that not only has size and profits, but also standards, consistency, and long-term reliability.
Here are some specific examples of what a "first-class company" looks like to them.
The criteria for a company that they currently consider "first-class"
A company that meets the following five criteria:
Does not cut corners behind closed doors.
Choosing long-term reliability over short-term profits.
Treating customers as people, not numbers.
Staying true to their core values in times of crisis.
Raising the standards of society.
Companies likely to be considered first-class
1. Toyota Motor Corporation
This is the type Hilton most highly values.
The reasons are clear:
Extremely high quality standards
A culture that openly addresses and improves problems
A reproducible philosophy known as the "Toyota Production System"
In Hilton's view,
First-class is not something that happens by chance, but something that can be replicated.
Toyota has achieved this. From Lush's perspective, it is also a company that shoulders the trust of the nation.
2. Apple
The reason is "never lowering standards."
Design
Experience
Consistency
They are extremely careful to avoid lowering standards for profit.
Hilton would say:
First-class is the courage to not compromise.
3. Patagonia
A company that Lush particularly values.
Reasons:
Decision to prioritize ideals over profit
Serious commitment to environmental protection
Words and actions are consistent.
By Lush's standards,
First-class is a company that consistently does the right thing.
4. Keyence
A type of company that Hilton values highly.
Reasons:
Extremely high added value
Deep understanding of customers
High profit margins (a sign of high standards)
It's not size that matters, but density.
5. Ritz-Carlton
They observe and embody Hilton's philosophy in the purest way.
Famous principle:
"We are ladies and gentlemen who serve ladies and gentlemen."
This is consistent with Rush's educational philosophy.
Characteristics of companies that the two feel are "not first-rate"
This isn't the name of the company, it's the characteristics.
Focusing solely on short-term stock prices.
Hiding problems.
Disregarding customers.
Changing standards depending on the situation.
Not taking responsibility.
To them, first-rate means
consistency in ethics and standards.
Most importantly,
Hilton says:
"A first-rate company isn't one that has a first-rate building."
"It's one that makes first-rate decisions."
Rush continues:
"And those decisions are made when no one is looking."
