The top 10 interview questions about the Hotel's finances for a General Manager and the best answers - Part 2
Continued from last week
Interviews are tricky, for both the candidate and the interviewer. A GM’s job interview is a challenge for the incumbent because they need to be ready for just about anything. This is especially true as it relates to the financial picture of the business as seen through the interviewer’s eyes. The opposite is also true as many times the person doing the grilling does not have a broad base of experience relating to the daily inner workings and nuances of the hotel world. Here is a list of common questions and good answers as well as a few bonus questions you can ask the person doing your audition.
- What will you do when you have a bad month and miss the forecast?This is a great question and one that you should expect. We will all have months when we miss the forecast; that’s just part of the game. But what will you do when you screw up is a tough question to answer. The most effective response is: learn from what didn’t work, analyze the areas where we missed, examine why and determine what we can do going forward so as not to repeat the same mistakes. There will always be challenges to overcome and learning from our mistakes is the best answer.
- What are your thoughts on managing and measuring flow thru?This is a very technical question, but it’s easily handled if you understand and utilize the concept. A super answer is: it’s always our focus to maximize profits when revenues are higher in the current period compared to the last and focus on retention when revenues are lower. Each area should have a detailed plan for their payroll and expenses as well as utilize a monthly flow-thru analysis to determine exactly where costs are higher. With this information we can take the appropriate actions going forward to ensure we don’t repeat the same missteps. The answer shows you know how to analyze the variances with the flow-thru concept and most importantly how to manage into the next month to continually get better.
- Can you tell me your specific ideas on controlling payroll in the hotel? These guys are tough and it sounds like they are really trying to nail you down, but again if you know your stuff the answer is right in front of you. Each department must have an approved staffing guide and formula in my hotel. An approved list of fixed positions by department and a formula for determining variable payroll should be provided based on rooms occupied or cover counts in rooms and F&B. From this a weekly schedule is produced that revolves around measuring productivity with the goal of always making or beating the monthly productivity targets. Wow – I think you just got the job!
- How do you go about writing an effective monthly commentary that the owners will find useful?This question is calling out your understanding of the “full disclosure principle” as well as your broader leadership philosophy. The seasoned answer falls off the W (Write) in #4. The commentary serves three main purposes to help your hotel move forward:
- To tell the stakeholders what you see coming in their business that the financial statements cannot reveal like: competition, impeding regulations, capital issues, human resource challenges, etc.
- It’s an incredibly effective way to let your stakeholders know you’re on top of the many challenges you collectively face, and you use these current variances to plan and manage future activities to mitigate negative impact and capitalize on the positive.
- By having your management team participate in the creation of the commentary you ensure that the future direction and challenges of the business are being met in all areas by your team.
- As the GM what would be your personal leadership style?This is a wide-open question that gives you an opportunity to demonstrate how you see your role and what you will bring to the table during your tenure, should you get the job. I think a great answer goes something like this and it’s two-fold. One, my belief as the GM of the hotel is that leadership is about developing my team and communicating the wants and needs of all stakeholders. This is done while continually moving the business forward. Secondly, leadership in a hotel is about knowing that all three pillars of the business are equal. We all come to work every day with a high level of enthusiasm and energy all the while knowing that the job is never done, and things will never be perfect! Sounds great right?
David Lund – The hotel financial coach
www.hotelfinancialcoach.com
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