The third pillar - Part 1
In the hotel business, there are three pillars: the guests, the colleagues, and the money. They are not equal.
They are not equal because we ignore the third pillar and we do so at our own peril and out of a bad habit.
We are lazy about what we can do to manage this cagey and slippery bugger. There is a fundamental disconnect in our industry, and it is high time that changed. It is no longer acceptable to throw our hands up in the air and say the numbers are the accounting department’s responsibility as if the rest of us are 5-year-olds without a clue what to do. If you are one of those, it is time to move and get some financial leadership game on. This article will show you what is possible and points you to a fantastic model that has your owner happily paying for the whole deal.
Pillar 1 – Guest Service
We manage guest interaction with an understanding and belief that we are all invested in good guest service. Even the departments that do not have direct guest contact help support the colleagues and departments that do. We are all responsible. Good guest service is a no-brainer for anyone in the hotel business. It is the very moral foundation that our business is built upon.
Finding ways to increase guest service is just good business. We invest in guest service at all levels in our hotels and we take the function of providing great service very seriously. In branded managed hotels, the management company typically has guest service programs they have either created or they provide in alliance with a vendor.
In addition, we spend serious dollars asking our guests how we are doing. Guest service scores are critical to the operations of the hotel. In every instance, the brand mandates the guest service programs inside their hotels and the owners pay 100 percent of the tab for everything related to creating and maintaining guest service. Many owners question the management company’s programs, which can be very expensive with results that are hard to nail down.
Annually, the brand will send their hotels the yearly programs via budget documents that outline all the programs the hotel needs to add to their upcoming year. Even if the hotel adds labor for training, the owner, in the end, pays 100 percent. When you think about a brand and its service reputation, it is interesting to see through this mirage—to look and see that ultimately the owners of the hotels are paying to create the brand's service promise.
This is largely a secret to most people. Understanding the relationship between the brand, the owner and what is created via this dance is an interesting segue. In most branded hotels, the annual guest service score forms part of the executive team’s bonus criteria and achieving the targeted number or better is a direct link to their pocketbooks.
The last thing I will say about guest service: Owners and managers should not tolerate leaders or staff members who do not provide excellent service.
Pillar 2 – Colleague Engagement
With colleague engagement, it is the same: We are all involved and implicated in managing departments and creating hotel teams that have high colleague engagement. No leader or department manager is excused from the mission of colleague engagement.
We have a myriad of tools to engage the staff, from employee newsletters, town halls, monthly colleague meetings, seasonal parties, special celebrations, sports teams, long service awards, the employee of the year, employee opinion surveys, whistle-blower lines, employee assistance programs, employee benefits, employee meals, etc. I could go on and on—this list is very long.
The irony in all of this is the owner pays 100 percent of the cost of any program or event. Once again, this dynamic between the brand and the owner is an interesting dance to watch. Owners question many expenses related to “creating” colleague engagement, but in the end, they pay.
So what is the benefit of good employee engagement? It is obvious: Good engagement coupled with great service equals a fantastic opportunity for our guests to have a wonderful experience.
It used to be the case that human resources were “responsible” for creating colleague engagement, but not any longer. Each department has its own employee opinion survey score and a bad apple in the bag will not last long. No leader is excused from the necessity of great colleague engagement.
David Lund – The Hotel Financial Coach Contact David at (415) 696-9593 Email: david@hotelfinancialcoach.com
|
|
|
|
