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How to conduct a productive monthly operating review for your hotel pdf
 

How to conduct a productive monthly operating review for your hotel pdf

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In a structured management setup performance reviews are an integral part of management process. These reviews serve multidimensional purpose. While on one hand it shows the efficiency of operations, ...

In a structured management setup performance reviews are an integral part of management process. These reviews serve multidimensional purpose. While on one hand it shows the efficiency of operations, on the other it offers the operating team an opportunity to adjust their strategy to meet the targets in the balance plan period. However there is an art to extract maximum from an operating review. Read on…

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    How to conduct a productive monthly operating review for your hotel pdf How to conduct a productive monthly operating review for your hotel pdf Document Transcript

    • How to Conduct AProductive MonthlyOperating Review ForYour Hotel BY: RAM GUPTA I am often confronted with the question on the art and technique of conducting ameaningful and productive Monthly OperatingReview. Mostly the questions are on the “how toand what to” aspect of the reviews. This makesme wonder why in the first place this should bean issue. Every business must meet at least oncea month to take stock of things, where they areand where they were supposed to be.
    • Structured operating review meetings are evenmore significant for hotels which are managedby a management company. The owner mustknow how well the management company hasperformed against the agreed targets ordeliverables. However one thing must be veryclear to all of us. An operating review meetinghas relevance only if the hotel has an agreedbusiness plan, budget or targets. One mustevaluate performance against some bench marksor mile stones.Operating Reviews are a very formal andstructured process and perhaps the best way tokeep track of the performance of the hotelagainst the agreed strategic business plan. Thesereview meetings are generally conducted in avery friendly and understanding atmosphere. Itoffers you an opportunity to evaluate yoursuccess or failure in exploiting the existingmarket scenario and most importantly pushesthe team to think on possible adjustments
    • required in the strategic approach to achieve orexceed the volume, price and profit targets.Let us now discuss the specifics on youroperating review strategy.How often should you hold your MORI would say every month. No two ways about it.The ownership must be briefed on the operatingresults at least once a month on a fixed date tofall within the first five working days of thefollowing month. Reason being that unless youdiscuss the performance of the previous monthimmediately after the close of the period, youare going to lose time in implementing thecorrective measures required to stay on course.A well managed MOR generally lasts for a 90 to120 minute period.Who All should Attend the MORIdeally the owner with his professionalrepresentative or the owners representative andthe General Manager, the Financial Controller,
    • Director Marketing, Rooms Division and Food& Beverage Managers. Other functional headsshould be available on call in the hotel to jointhe meeting, if required. Your review processshould not cause any disruption to normaloperations.MOR StructureThe format of the meeting is quite simple. Thegeneral manager gives an overview followed bya crisp presentation on numbers and strategiesand concluded with an action plan to meet thevariances or improve the performance.Additionally he should also highlight theexternal factors that were influencing theperformance, positive or negative. The keyfocus areas in an MOR are,--How effectively is the management teamimplementing the business plan, what is theperformance efficiency?
    • -Are there any external or internal threats thatneed to be addressed?-Are we taking advantage of all opportunities?-Do we need to review our approach andstrategy, if yes, what all needs to be adjusted?Since owner’s representative is normally aprofessional hotelier, he must advise and leadthe ownership into key critical areas ofperformance and seek satisfactory andactionable response from the operating team.The meeting must result in a very objectiveassessment of the performance and agreementon future action plan or course that themanagement team shall pursue. These meetinggo a long way in instilling a sense ofresponsibility and ownership of actions in allfunctional heads.
    • Preparation for an MORThe success of a monthly review will depend onthe quality of data and facts circulated by themanagement team to the ownership. More thanthe quality, I have always given moreimportance to transparency. There should be noattempt to hide information or numbers betweenthe lines. The management team should follow astandard format which depicts true actualperformance against approved business plan forthis period and on a year to date basis. I havealways liked format which in addition to thisalso gives projected figures for the end of theyear.Once the operating review meeting concludes,the General Manager must send minutes of themeeting with agreed action plan assigned toeach functional head to the ownership or theirrepresentative.A regular, structured and productive operatingreview not only help in taking stock of operating
    • efficiencies but also cements the team as acohesive force, committed to achieve results.Need help to improve the productivity of yournext MOR, CLICK HEREBCG Global is a hospitality businessadvisory and consulting company whichhelps owners and managers to manage theirenterprise and functions, efficiently andprofitably. Visit athttp://www.bcgglobal.com http://www.bcgglobal.com SEPTEMBER, 2012 © BUSINESS CONSULTING GROUP GLOBAL