How to run a Great Hotel - Presentation to Northern Ireland Hotels Federation

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A Presentation of Themes of Excellence in Hotels

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How to run a Great Hotel - Presentation to Northern Ireland Hotels Federation

  1. 1. Achieving Excellence in the Hotel Industry How to Run a Great Hotel Enda Larkin
  2. 2. Focus of Today THEME 1 DEFINE DIRECTION THEME 1 DEFINE DIRECTION What are you trying to achieve? What are you trying to achieve? Drivers of Excellence Drivers of Excellence THEME 2 LEAD TO SUCCEED THEME 2 LEAD TO SUCCEED How effective is Leadership at all levels within your hotel? How effective is Leadership at all levels within your hotel? THEME 3 ENGAGE YOUR EMPLOYEES THEME 3 ENGAGE YOUR EMPLOYEES Are your employees fully engaged? Are your employees fully engaged? THEME 4 CAPTIVATE YOUR CUSTOMERS THEME 4 CAPTIVATE YOUR CUSTOMERS Are you truly customer focused? Are you truly customer focused?
  3. 3. “Everything should be made as simple as possible, but not simpler.” Albert Einstein
  4. 4. Principles of Excellence
  5. 5. Why Bother Striving for Excellence?
  6. 6. Impact of the Drive for Excellence  One definitive study – presented by the British Quality Foundation - examined performance in nearly 600 award winning companies.  Looked at a period from five years before achievement of an award to five years after the award was achieved.
  7. 7. British Quality Foundation - Research
  8. 8. THEME 1 DEFINE DIRECTION THEME 1 DEFINE DIRECTION What are you trying to achieve? What are you trying to achieve?
  9. 9. Direction Always Matters
  10. 10. Direction Can/Must Change
  11. 11. Direction won’t cure all ills . . . But can make a massive difference The Shelbourne Hotel, Dublin Delphi Mountain Resort, Connemara
  12. 12. Basic Questions WhatWhat HowHow WhoWho WhyWhy
  13. 13. Having a ‘Why’ - Foundation of Business Success Stakeholder FocusedStakeholder Focused
  14. 14. Stakeholders Secondary StakeholdersSecondary Stakeholders HotelHotel Community Suppliers Government Primary StakeholdersPrimary Stakeholders Owners/ Investors Customers Employees
  15. 15. The Strategic Map Stakeholder FocusedStakeholder Focused How will we know we are getting there? How will we know we are getting there? How will we get there? How will we get there? Where do we want to be? Where do we want to be? Where are we Now? Where are we Now? Current Position Current Position Vision & Mission Vision & Mission GoalsGoals StrategyStrategy Annual PlanAnnual Plan Measure Progress Measure Progress Continuous ImprovementContinuous Improvement
  16. 16. Where are we now? Stakeholder FocusedStakeholder Focused Where are we Now? Where are we Now? Current Position Current Position
  17. 17. Where are we now? Means truly understanding your current position by conducting research and preparing a fact-based SWOT analysis:  The current internal Strengths and Weaknesses of your hotel - which in essence helps you to answer where are we now?  The Opportunities and Threats you face in the external business environment which will later influence how you answer where do we want to be?
  18. 18. Where do we want to be? Stakeholder FocusedStakeholder Focused Where do we want to be? Where do we want to be? Where are we Now? Where are we Now? Current Position Current Position Vision & Mission Vision & Mission
  19. 19. Vision Vision To become the leading independent 4* hotel in London providing excellent products and services at reasonable prices to every customer, every time
  20. 20. Mission Mission Our customers are our priority and we will provide them with a quality experience which is second to none. We recognise the importance of our employees in achieving this and we will create a positive working environment which encourages their loyalty, commitment and hard work. We strive to be excellent leaders and will undertake all our business activities in an honest and ethical manner to provide a fair return on our investment
  21. 21. The Strategic Map Stakeholder FocusedStakeholder Focused Where do we want to be? Where do we want to be? Where are we Now? Where are we Now? Current Position Current Position Vision & Mission Vision & Mission GoalsGoals
  22. 22. From Mission to Goals Mission Our customers are our priority and we will provide them with a quality experience which is second to none. Mission Our customers are our priority and we will provide them with a quality experience which is second to none. Goals • To increase the number of repeat customers to 40% within three years • To increase Customer Satisfaction levels to 90% within two years • To continuously increase our scores on internal and external quality audits Goals • To increase the number of repeat customers to 40% within three years • To increase Customer Satisfaction levels to 90% within two years • To continuously increase our scores on internal and external quality audits
  23. 23. From Mission to Goals Mission We recognise the importance of our employees in achieving this and we will create a positive working environment which encourages their loyalty, commitment and hard work. Mission We recognise the importance of our employees in achieving this and we will create a positive working environment which encourages their loyalty, commitment and hard work. Goals • To reduce employee turnover to 20% within three years • To achieve an average rating of 75% from employee engagement surveys • To introduce a bonus scheme for all employees within three years Goals • To reduce employee turnover to 20% within three years • To achieve an average rating of 75% from employee engagement surveys • To introduce a bonus scheme for all employees within three years
  24. 24. From Mission to Goals Mission We strive to be excellent leaders and will undertake all our business activities in an honest and ethical manner to provide a fair return on our investment Mission We strive to be excellent leaders and will undertake all our business activities in an honest and ethical manner to provide a fair return on our investment Goals • To increase net profit to 15% of sales within two years • To increase RevPar by 5% annually • To increase restaurant throughput to 1500 covers per week within two years • To reduce labour costs to 40% within two years Goals • To increase net profit to 15% of sales within two years • To increase RevPar by 5% annually • To increase restaurant throughput to 1500 covers per week within two years • To reduce labour costs to 40% within two years
  25. 25. The Strategic Map Stakeholder FocusedStakeholder Focused How will we know we are getting there? How will we know we are getting there? How will we get there? How will we get there? Where do we want to be? Where do we want to be? Where are we Now? Where are we Now? Current Position Current Position Vision & Mission Vision & Mission GoalsGoals StrategyStrategy Annual PlanAnnual Plan Measure Progress Measure Progress Continuous ImprovementContinuous Improvement
  26. 26. Funnel Approach Vision Mission Goals Strategy Annual Plan Increasing the amount of detail at each level Results
  27. 27. THEME 2 LEAD TO SUCCEED THEME 2 LEAD TO SUCCEED How effective is Leadership at all levels within your hotel? How effective is Leadership at all levels within your hotel?
  28. 28. Leadership Concerns. . . Dimensions of Work The What The What The How The How The Who The Who What you want to achieve  Goals & Objectives  Targets  Plans  Outcomes How the work is done  Processes  Procedures Who does the work  Employees
  29. 29. The Human Equation The Who Engaged Employees Employees Lead to The How Productivity, efficiency and quality Processes Results in The What Outcomes Achieved & Satisfied Stakeholders Results Engaged employees deliver better results. Effective leadership engages employees!
  30. 30. The Great Debate - Lead or Manage? ManageManage LeadLead
  31. 31. Lead and Manage Engage Engaging People to ensure their commitment, competence and motivation (The Who) The ‘leading’ part Achieve Focusing on Process to ensure productivity, efficiency and quality, in order to achieve the Performance and results required (The What and How) The ‘managing’ part
  32. 32. Developing a Leadership Competence Model
  33. 33. Clarifying what your Leaders ‘Do’
  34. 34. Clarifying the ‘What’ – Process Mapping Monitor & Review Food & Beverage Service Effectiveness Monitor & Review Food & Beverage Service Effectiveness Ensure Full Legal Compliance Ensure Full Legal Compliance Optimise use of IT Resources Optimise use of IT Resources Manage Facilities Manage Facilities Complete Financial Duties Complete Financial Duties Manage HR Activities Manage HR Activities Manage the Quality of the Customer Experience Manage the Quality of the Customer Experience Prepare for Service Prepare for Service Support Marketing & Promotion Efforts Support Marketing & Promotion Efforts Food & Beverage Service Food & Beverage Service
  35. 35. Clarifying the ‘What’ – Process Mapping Gather Feedback according to agreed procedures Gather Feedback according to agreed procedures Handle Billing & Payment Handle Billing & Payment Deliver high quality service (SOPs) Deliver high quality service (SOPs) Greeting & Seating (SOPs) Greeting & Seating (SOPs) Handling Reservations Handling Reservations Manage the Quality of the Customer Experience Manage the Quality of the Customer Experience Deal with complaints/problems (SOPs) Deal with complaints/problems (SOPs)
  36. 36. Clarifying what your Leaders must ‘Achieve’
  37. 37. Leadership Competence Model The What Possible Targets Expected Results – What they must Achieve  Meet revenue targets  Achieve cost percentages  Increase customer satisfaction ratings for their area  Lower employee turnover in their area  Reduce number of accidents in their area  Meet the requirements for training hours provided to staff Page 57
  38. 38. Leadership Competence Model The How Possible Criteria Expectations in relation to how the workload is managed  Effectively plan and organise the workload in their department  Manage resources to achieve the objectives agreed for their area  Provide clear direction and guidance to their employees  Ensure that work in their area is consistently carried out to the standard required  Constantly strive to improve overall quality and promote continuous improvement in their area
  39. 39. Leadership Competence Model The Who Possible Criteria Expectations regarding how they lead (Engage)  Demonstrate high levels of energy, enthusiasm and professionalism  Show concern for their team members and interact with them in a positive manner  Treat all team members equally and fairly  Apply flexible leadership styles and regularly show an ability to adjust their approach to deal with different people and situations  Communicate in a structured and effective manner with their team
  40. 40. THEME 3 ENGAGE YOUR EMPLOYEES THEME 3 ENGAGE YOUR EMPLOYEES Are your employees fully engaged? Are your employees fully engaged?
  41. 41. Some Evidence Gallup Q 12 Survey The Three Types of Employees Engaged – employees work with passion and feel a profound connection to their company Not Engaged – employees are essentially ‘Checked Out’. Sleepwalking through their working day Actively Disengaged – employees aren’t just unhappy at work, they’re busy acting out their unhappiness 29%29% 55%55% 16%16%
  42. 42. Some Evidence CIPD Employee Engagement Survey Actively Engaged Moderately Engaged Actively Disengaged 35%35% 57%57% 8%8%
  43. 43. CIPD Survey  Only 37% of employees had confidence in their senior management team  Only 34% trusted their senior managers  42% didn’t feel they were kept well informed about what’s going on in their organization  30% indicate that their manager rarely or never gives feedback on their performance  25% felt completely undervalued  Only 50% of employees feel that their senior managers have a clear vision of where the organisation is going
  44. 44. Benefits of Employee Engagement - Towers Martin Research
  45. 45. Research  Organisations with highly engaged employees achieve twice the annual net income of organisations whose employees lag on engagement. (Kenexa Research Institute - WorkTrends Report, 2008)  Organisations with high levels of employee engagement have 2.6 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in the same industry. (Gallup - Engagement Study)  Highly engaged employees miss 20 percent fewer days of work and are almost 80 percent more likely to be top performers. (Towers Watson)
  46. 46. Framework for Employee Engagement CultureCulture CompositionComposition ClarityClarity CompetenceCompetence CooperationCooperation ControlControlCommunicationCommunication ChallengeChallenge ConflictConflict CompensationCompensation ChangeChange
  47. 47. THEME 4 CAPTIVATE YOUR CUSTOMERS THEME 4 CAPTIVATE YOUR CUSTOMERS Are your truly customer focused? Are your truly customer focused?
  48. 48. Achieving Consistency (S) The Route to Service ExcellenceThe Route to Service Excellence ExperienceExperienceExpectationsExpectations EvaluationEvaluation What are your customers’ common and specific expectations? How do you define them? What are your customers’ common and specific expectations? How do you define them? PhysicalPhysical ProductsProducts PeoplePeople ProceduresProcedures How does the experience you offer rate against the quality continuum? Are you exceeding your customers’ expectations? How do you know? How does the experience you offer rate against the quality continuum? Are you exceeding your customers’ expectations? How do you know?
  49. 49. Quality Continuum Below Expectations Below Expectations Meets Expectations Meets Expectations Exceeds Expectations Exceeds Expectations S-1S-1 SS S+1S+1
  50. 50. Cultural Change Inconsistent Delivery Inconsistent Delivery Consistent Delivery Consistent Delivery ResponsiveResponsive AnticipativeAnticipative Low QualityLow Quality High QualityHigh Quality Reactive ServiceReactive Service Proactive ServiceProactive Service Internal Focus Internal Focus Customer Focus Customer Focus ImpersonalImpersonal PersonalPersonal InefficientInefficient EfficientEfficient S-1S-1 SS S+1S+1
  51. 51. Achieving S + 1  Adding value through providing +1s for customers.  +1s may be relevant to physical, product, people or procedural elements within the customer experience.  They can be designed to meet specific customer expectations identified from your interactions with your key customer groups.  Most of the time though, the +1s are common sense and can be very simply applied, such as the little things that your employees say or do to make your customers feel special.
  52. 52. Thank You

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