Tone from the top for economic value addition (EVA) - Part 1The General Manager flanked by the Front Office Manager started my suitability assessment for the post of Guest Services Agent …..Mr. Arunajith, you are seeking career opportunities in a prestigious Hotel. A hotel with a colorful history and we expect our people to be charismatic and of high Integrity.The year was 1981. The two words were not within my comprehension, for I was yet refining my vocabulary. Lo and behold, I was hired! My safe assumption now being, whatever those two words meant, I possess the qualities…..
As time marched on, soon realized the hospitality industry landscape was getting competitive and moving in tandem with changing regional competitive set. To this end, ‘personal branding’ was becoming essential for survival and career advancement.Professionals, are expected to be able to introduce comparative advantages from a strategic thrust. Success and failure was contingent upon the ability for ‘value addition’. Yet in my infancy in the hospitality industry, I commenced my journey to explore the true meaning of, Charisma and integrity. Soon I realized these words were misunderstood by the most and in our day to day affairs across the cross the society, Charisma and integrity was a lacuna.
In the absence of Charismatic Leadership, Integrity fails to survive – Karl Marx. Charismatic leadership is an attribution based on follower perception of their leaders observed behavior. Key component thereof is the leaders’ ability to create a conducive culture to transform an organization from the current state to a future state to create value: conceptualize the transformation process.
Stage one is critically important as poor analysis (identification of deficiencies and disconnects) results in poorly exploited opportunities. Charisma fades if the leader is insensitive to the environment that the individual has to operate. If an organization is dysfunctional or leading towards a crisis, the leader will then capitalize on the precipitating conditions to bring about radical changes and foster an image of a charismatic leadership for themselves. The leader must articulate the vision. In doing so, the emphasis must be on the positives of the envisaged vision and negatives of the current process tend to get traction among the followers with unprecedented success.
The key takeaway from the foregoing must be, the leaders must create an image among the followers that the leader has the ability to have control over uncontrolled situation: perception management. As the leader ‘walks the talk’ and manages the perception, in all situations and relationships the leader will be good to the word in the eyes of the stakeholders. Not inferring that the leader be good to all at all times and be that people pleaser, but the idea is to deliver win-win outcomes. Process Integrity is the driver that will deliver win-win outcomes. Words and action be aligned.
A study done in a hospitality management company that manages a portfolio of multiple brand properties revealed a link between profitability and integrity. The survey involved a population of 6000 staff members. The consensus was that, those properties that scored high on integrity (brand integrity and individual integrity) on a sustained basis, reflected higher profits, low absenteeism and low staff turnover. More importantly, there was clear evidence that there was high guest satisfaction. Integrity is a quality that is acquired: those properties that invested on integrity enhancement initiatives further refined in the overall performance collectively. I place a huge emphasis on demonstrating that I trust my subordinate’s ability, achieved by changing the mind-set, giving them the confidence and holding them accountable.
Two approaches: Transactional Influence and Transformational Influence. The former, in the realm of expectancy theory. The followers are motivated to comply with the behavior expected by the leader. Non-compliance is potentially punishable. Herein, the leader must be of high integrity and be seen as living by the word. Transformational influence, the leader uses charisma to transform the follower attitude, and mind-set and give the follower the confidence to meet the organizational overall goals. It empowers the follower by increasing the follower self-efficacy belief. Empirically, the latter approach has stood the test of time.
From a share-holder standpoint, how can these qualities, charisma and integrity add value to share-holders? As I alluded to the follower sentiments and link betweenhigh performing organizations, these qualities will get the individual and the organization over the Tipping point in terms of Economic Value Addition (EVA). The brevity of the write should not discount the significance of the EVA, which I endeavor to discuss herein: One can catch more ants with honey!
Upul Arunajith Upul holds a Ceylon Hotel School Diploma. He has worked at Taj Samudra Hotel, Aitken Spence Hotels and Mount Lavinia Hotel. After migrating to Canada, he made the transistion from hotels to finance, when he joined the ABN Amro Bank, whilst studying in pursuit of a career in derivatives. Currently, he overlooks the business and training operations at Zen Capital.
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