Terry Lanni would ask questions to his team . What are we good at ? What are our capabilities ? What do we need to grow our business ? How do we do it ?
’ 90s Vegas
“ Atlantic City was gifted an enormous opportunity ,” he said . “ As casinos expanded into other jurisdictions , AC had not planned or prepared to offer the necessary infrastructure to become anything more than a regional gaming destination . The tragedy of the city was Mr . Wynn leaving the market and then becoming an instrumental actor in reinventing the Las Vegas product through his vision , one that could have been possible in Atlantic City , if different decisions had been made .”
THE LION TAMER IN THE PALACE
J . Terrence Lanni graduated from the University of Southern California in 1965 with a degree in business , where he undoubtedly read Peter Druker ’ s Managing for Results . After working as treasurer for the Republic Corporation and for Gerald Ford ’ s campaign , he joined Caesars World in 1977 . He was the right person , at the right place , at the right time .
Caesars was already the market leader in Las Vegas , but the company faced many challenges that by no means guaranteed success . It needed structure , control and organization , plus diplomacy , credibility and clear leadership .
Lanni provided all of these , rising through Caesars ’ organization to president and COO from 1981 to 1995 , with Henry Gluck as chairman .
His leadership philosophies were values-driven , prizing the potential of people and acting on opportunities . This was translated to building strong internal capabilities within the business , developing and empowering leaders to make collective , informed decisions , and having a perspective outside the existing constraints to deliver customer value .
Within his 18-year tenure at Caesars World , the company surfed the BCG experience curve of growth . In addition to Caesars-branded resorts , the company partnered with Native American tribes and cruise liners , and formed joint ventures in the newly deregulated regional gaming market , becoming the market leader .
After fending off several hostile takeovers , Caesars World was finally acquired by ITT in 1995 for $ 1.7 billion .
In late 1993 , Luxor , Treasure Island and the new MGM Grand all opened their doors . Opening a new resort was one thing ( and the opening of MGM Grand was far from smooth ), but building the business that the highlevel , hands-off Kirk Kerkorian wanted was something else .
In June 1995 , Lanni joined MGM Grand Inc . as president , CEO and board member . He made immediate changes to the property , removing the literal theme , instead seeking to capture aspiration , which was implicit in Caesars Palace . Within a year he was chairman of the company . Kerkorian was the majority shareholder , but MGM was Lanni ’ s show .
At MGM , Lanni first built the foundations needed inside the company , investing in human capital , championing diversity from top to bottom , growing capability internally . Notably , he promoted those who had served in HR functions into senior operating positions . It was observed that he liked to end the day with a clean desk , a symbol of a well-run business .
“ Terry by nature was a consensus builder ,” notes Alan Feldman , former MGM executive and recent inductee to the AGA Gaming Hall of Fame .
“ He believed in diversity , and diversity of opinions . He wanted to know everyone ’ s thoughts before making decisions , and as a result , those were better decisions . Although the traditional top-down style has value , having a more inclusive management allowed MGM to grow in a more considered and dynamic manner , seeing more of the big picture than was historically possible in the industry .”
Lanni would ask questions to his team . What are we good at ? What are our capabilities ? What do we need to grow our business ? How do we do it ?
After five years from developing the comparatively small MGM Grand into one of the best-run gaming companies in the country , Lanni retired . But he was to be back ; his work was far from done .
IT ’ S NOT ABOUT THE CASINO
Much has been written about the impact Steve Wynn had in reinventing Las Vegas , after selling his Atlantic City property for $ 440 million in 1987 . However , much of the success was due to the internal management model that Mirage Resorts had developed .
“ It ’ s always been that the non-casino story was the story ,” Wynn admits . “ It was never the slot machines — they ’ re all the same , there ’ s no chance for differentiation — so it ’ s about something else .”
At The Mirage , it was all about entertainment and escapism , with Wynn ’ s proven top-down , culture-heavy approach evident , focused on meeting customers ’ emotional needs .
His own personal growth as part of the increasingly sophisticated baby boomer generation had evolved from affluent escapism of their parents , and instead he observed the need to reinforce personal validation via luxury and aspiration .
For Wynn , this evolution was to be found in Beau Rivage and Bellagio . His Treasure Island was for families . Each property had a different customer in mind , and he focused the offer to that segment . Others were watching what Wynn was doing with his customer intimacy strategy , and coveted his success .
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