BY KERRY PIPES
ceoprofile
THE ULTIMATE TRAIN SET
Mike Whalen scales his childhood passion into franchising and more
Heart of America Group is a diversified company that operates hotels and restaurants across the Midwest as both franchisee and franchisor . The company , which began in 1978 as a single restaurant , also is a successful design , construction , and management firm , with more than $ 100 million in development at any given time , says founder and CEO Mike Whalen .
Since the beginning , nearly 40 years ago , Whalen , an Iowa native and Harvard law school graduate , has led the company to its current heights . But his sense of wonder for how to build and scale things began long ago .
“ As a child , my favorite toy was my Lionel train set . I loved to build it , take it apart , and redo it to make it better ,” says the 62-year-old president and CEO .“ As an adult , I realized Heart of America Group is like my train set . Now I play with hotels , restaurants , and retail complexes . Our developments have become our ultimate train sets .”
Today , Whalen oversees a business em-
pire that employs more than 1,500 across dozens of restaurants , hotels , and retail outlets throughout 7 states . While juggling hotel and restaurant developments as a franchisee , Heart of America also operates its own restaurant concepts , including The Machine Shed Restaurant , Wildwood Lodge , Thunder Bay Grill , and the brand they are busy franchising , Johnny ’ s Italian Steakhouse . The company ’ s four hotel groups are Marriott , Holiday Inn / IHG , Hilton , and Choice Hotels .
In his 38 years at the helm , Whalen has
NAME : Michael Whalen TITLE : President , CEO COMPANY : Heart of America Group NO . OF UNITS : 37 ( 13 as franchisee ) AGE : 62 YEARS IN FRANCHISING : 35 YEARS IN CURRENT POSITION : 38 learned plenty about what works and what doesn ’ t in business . One big lesson , gaining buy-in from his team members , involves reminding them regularly that “ they are a part of our team for more than what they do on a day-to-day basis — that they make a difference in the big picture at Heart of America Group . That engenders engagement . Engagement yields excellence .”
Leadership
What is your role as CEO ? To take the lead on development , and to make sure we are in a good place operationally . I let good people do their jobs and intervene only when necessary . Development and operations are equally important to me .
Describe your leadership style . I ’ ve spent nearly 40 years in hospitality and have held onto a sense of childlike adventure . While business is serious , I feel sorry for those who don ’ t get to have fun with their work .
What has inspired your leadership style ? As a child , my favorite toy was my Lionel train set . I loved to build it , take it apart , and redo it to make it better . As an adult , I realized Heart of America Group is like my train set . Now I play with hotels , restaurants , and retail complexes . Our developments have become our ultimate train sets .
What is your biggest leadership challenge ? Finding people who want to be excellent , who want to do more than just collect a paycheck , who see beyond the day-to-day and focus on the bigger picture .
How do you transmit your culture from your office to front-line employees ? The biggest challenge is to maintain the existing culture , developed from our roots . The book The Coming Jobs War by Jim Clifton notes that unengaged people are a company ’ s biggest liability . Two years ago , we extensively surveyed our staff at all levels of our restaurants and hotels and found that we have a high level of engagement relative to most other companies . We have to continue to show them that they are a part of our team for more than what they do on a day-to-
12 Franchiseupdate ISSUE IV , 2016