What everyone needs to know about hotel financial skill 1-10 (Part 2)
Applies to financial leaders’ and operational managers’ roles:
On the eve of starting my financial leadership course for the third year with Royal Roads University it occurs to me that most people have it somewhat wrong when it comes to how they think about the financials inside the hotel business.
It’s almost like they think that a mechanic is the only person who can drive a car. On that note many great drivers possess great knowledge about how the car works but they’re not mechanics; it’s not a requirement to be a great driver. You would never take your Ferrari to the driver for a repair, but man can they drive it. The exact same goes for financial skills and understanding. You don’t need to know how to be an accountant to be very well versed in hotel financial leadership knowledge and be a hotel numbers pro.
Continuing with the list from Part 1:-
- Practice.
Nothing happens without it. Nothing good ever happens by itself, it requires practice and dedication. The numbers in your career or hotel are just another example of the fact that a price must be paid to gain entrance. If we think we can prosper and grow without the rigor of practice than we are going to be less than and ultimately not reach our potential. Practice is the quintessential ingredient and teaching and learning what makes good practice is critical. Practice the wrong moves and techniques means you won’t be successful.
- They’re not going away.
The numbers are omnipresent, in other words, they’re constantly encountered, widespread and common. In the hotel world that simply means the numbers are not going away. If we’re an operations or service leader we hope and cling to the idea that someone will just take care of this for us. We think about it like grade 10 algebra, If I can just pass this course, I will never have to deal with this crap again. Wrong, this course never ends. If we’re a financial leader we must remove the dread and mundane for the operations leaders so they can see that the numbers are just another part of what we do and we’re there to make it easier. If we’re an operations leader, we need to embrace this and meet it head on with enthusiasm and vigor.
- Teach others what you know.
They’re not inventing any new hotel management techniques, just modifications on the current line-up. Your job as a leader in any capacity is to teach others what you have been taught. The numbers are no different. Regardless of what department you lead your job in a large part is to teach people on your team what you have learned. This is the first sign that you are ready for bigger and better things. Clinging to the notion that knowledge is power and should not be shared is like clinging to an ice cube in the Mediterranean. You’re going to sink. Being the financial leader is no different. Developing financial communication skills of your team and operational managers is your highest calling.
- It’s a monthly circle – practice the circle.
Each month in the hotel is an opportunity to begin again. In the financial world our window opens and closes each month. Take what worked and do it again. Figure out what didn’t and fix it. You could look at this monthly event and say it’s such a pain in the backside. To the underdeveloped that’s what it looks like. To the seasoned pro you see this as your stage. Your opportunity to practice. Your opportunity to move in the right direction. In the operational departments the same condition exists, it’s just a daily circle. Flipping the house, being ready for service, delivering a function, you name it, it all boils down to the same thing. Learn to see the different steps in the monthly financial circle, focus on these and practice. F TAR W. Forecast, Track, Adjust, Review, Write & repeat.
- Remember everyone wants it.
The numbers and being fluent in them are what all the upwardly mobile leaders in the hotel need and all want their share. They want their share because they know it’s what is needed to punch their ticket. The ticket that is going to allow them access to the big show. They also know that without the knowledge and moxy with the numbers they are going to be left behind. The great and not so wonderful reality around this desire is the fact that the only place they can get what they need is at work. They don’t teach what you really need to know in school. They don’t, because they can’t. They don’t have the one essential ingredient: the playing field.
David Lund – The Hotel Financial Coach
Contact David at (415) 696-9593
Email: david@hotelfinancialcoach.com
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