Don't Let Your Systems Drive Your Customers Crazy! - Hospitality ...

HOSPITALITY
FREE COPY ISSUE # 9 / OCTOBER & NOVEMBER 2006
T H E M A G A Z I N E F O R T H E H O T E L , T R A V E L A N D T O U R I S M I N D U S T R Y I N T H E M A L D I V E S
Don’t Let Your
Systems Drive
Your Customers Crazy!
08 Ask What Makes You Great
by Rick Hendrie
32 Bringing out the Best in People
by Chris Longstreet, CHA
36 Politics of Revenue Management
By Douglas Kennedy
40 The Hotel Butler
by Prof. Steven Ferry
46 Employee Retention Strategies
by John R. Hendrie
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
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HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
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IMPRESSUM
EDITOR’S NOTE
Publisher
This magazine is created and published by:
Beyond Hospitality Pvt. Ltd.
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Editor-in-Chief
Ahmed Saleem
Managing Editor
David Kotthoff
david@hospitality-maldives.com
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Credits
All articles / features are property of their
respective authors / owners and have been
provided with the great support of the following
individuals and institutions:
John Bowerman-Davies
Margot Cairnes
Jane-Michele Clark
DPPEA
Joe Dunbar
Tony Eldred
Prof. Steven Ferry
Paul Finley
Julie Garrow
Eric Hahn
John Hendrie
Rick Hendrie
Doug Hissong
Ron Kaufman
Keith Kefgen
Douglas Kennedy
Rich Kussin & Lynn Helmers
Denise Moretti
Kelley Robertson
Chris Longstreet, CHA
Susie Ross
Neil Salerno, CHA
Terry Wisner
www.ehotelier.com
www.youngentrepreneur.com
Dear friends and colleagues,
Welcome to the 9th edition of Hospitality Maldives.
Surveys. They are everywhere. You find them in newspapers, TV channels, websites, and radio stations.
Whilst many solely follow the aim of broadening a business’s customer base and getting to
know its clients better, surveys can be a great tool in answering very general but utmost important
questions such as ‘What are we doing wrong?’ or ‘Where can we improve?’. When and where results
are made public, they can further support an industry in making important decisions and in measuring
performance and policies towards those of competitors.
I believe there are many current issues within our industry that would make great subjects for
nationwide surveys, however, for now I’d like to concentrate on two selected topics and seek your
support and active participation for the same. Over the coming weeks I will conduct two surveys
whose subjects I consider very important; one will be aimed at Human Resources Departments, the
other at Chefs, F&B and Purchasing Managers. The respective subjects will be as following:
Food Supplies, Quality and Storage
Salaries, Training and Staff Turnover
Participation in these surveys will be voluntary as a matter of course, however, the more hotels and
resorts give their input, the more representative the outcome will be. I strongly believe that we can
all learn from the results of such surveys and no one should be hesitant to express their opinions
about the same.
Naturally, both surveys will be conducted with absolute confidentiality and all essential results will
be compiled in a public research paper. If you’d like to participate, which I hope you do, please visit
http://www.hospitality-maldives.com/surveys/ to download the survey forms. Once completed,
simply fax or email them back to me.
I look forward to your feedback as usual and wish you HAPPY READING.
Yours in hospitality,
Disclaimer
No parts of this magazine or its content
(photographs, articles or parts thereof,
design, layout) may be reproduced without
the consent of the respective owner. Beyond
Hospitality Pvt. Ltd. or any of its associates
cannot be held responsible for the misuse
of the information and intellectual property
provided in this magazine.
Opinions expressed in this magazine are
those of the writers and not necessarily
endorsed by the publisher.
David Kotthoff
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
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HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

CONTENTS
M A L D I V E S
EDITORS NOTE 3
LISTEN TO WHAT YOUR
UNIFORMS ARE SAYING
by Eric Hahn
TIPS FOR DELIVERING GREAT
CUSTOMER SERVICE
by Jane-Michele Clark
HOTEL/MOTEL WASTE REDUCTION:
FACILITIES MANAGEMENT
FINANCIAL MANAGEMENT SERIES X
HOW TO REDUCE COSTS
BRINING OUT THE BEST IN PEOPLE – PART 1
by Chris Longstreet, CHA
THE POLITICS OF REVENU MANAGEMENT
by Douglas Kennedy
THE HOTEL BUTLER
by Prof. Steven Ferry
GOOD EMPLOYEE RETENTION STRATEGIES
CAN BREAK THE MYTH
by John Hendrie
DON’T LET YOUR SYSTEMS DRIVE YOUR
CUSTOMERS CRAZY
by Ron Kaufman
THE IMPORTANCE OF AVOIDING
CROSS-CONTAMINATION
by Rich Kussin & Lynn Helmers
THE DANGERS OF BEING A HOST
by Tony Eldred
6
10
20
24
32
36
40
46
52
56
58
LAST WORDS 68
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SALES & MARKETING
Gobble-Up Your Competition
Start with the Basics, Add a Pinch of Research, and a Dash of
Common-Sense
A
chef, I am not, but I do know how to gobble-up the
competition. One of the best ways to measure the sales
success of your hotel is to compare your hotel’s results
with that of your competition. In many ways, this is more realistic
than simply comparing results with your sales budget or last year’s
numbers.
Many savvy companies now use competition-set comparisons
to judge the true effectiveness of their marketing programs.
Hopefully one day, comp-set comparisons will find their way into
monthly operating statements.
Many hotels attempt to operate in a vacuum, ignorant and
impervious to everything happening around them. They set rates,
determine amenities, create promotions, develop their web sites,
and establish operating standards, all without knowing or caring
what the competition is doing. This doesn’t make sense even if
your property is performing well, slow suicide if it isn’t.
How Well Do You Know Your Competition?
In the real world, consumers have a wide range of hotels to
choose from. Experienced managers know that just having a
great hotel is no guarantee of success. There are managers who
sit back and wait for success to come; and those who go out and
grab it. Smaller properties can play with the big boys.
Smaller hotels need to borrow some techniques from chain
institutions by first performing a simple competition analysis.
There are many tools to do this, but my favorite is called a S.W.O.T
report which compares your hotel’s Strengths, Weaknesses, Opportunities,
and Threats.
This report goes beyond the normal quantity and quality of
rooms/rates and other physical attributes; it also includes a comparison
of management styles, sales talent, operating limitations,
web site popularity and productivity, and front desk staff.
An honest appraisal of your hotel as compared to your competition
will reveal and suggest many ways to improve your position
in the marketplace. From the S.W.O.T. report, you will be able
to define your comparative strengths and develop your recipe to
exploit them.
No evaluation can be complete without comparing financial
results. I know of no better source of competition-set financial
data than STR reports from Smith Travel Research. If you are
fortunate enough to be in one of their participation areas, the
STR report can give you an occupancy, average rate, and RevPar
comparison with other hotels that compete with yours. Check
STR out online; it could be the best marketing small investment
you’ve ever made. No, I don’t receive compensation from STR;
they are simply the best.
Revenue per Available Room (RevPar)
by Neil Salerno, The Hotel Marketing Coach
We all know that comparisons of occupancy and average rate can
be very confusing and deceptive; after-all, would you prefer to
have 68% occupancy at a $125 ADR or 64% occupancy at a $138
ADR? Unless your competition has exactly the same number of
rooms and rates, comparing occupancy is futile. ADR alone can
be very deceptive. This changed when some great minds gave us
RevPar or revenue per available room, a perfect tool to compare
revenue performance.
RevPar gives us the ability to compare hotels of different
sizes and varying average rates. Since revenue generated is the
primary goal of every hotel, RevPar allows us to combine average
rate with occupancy by measuring the amount of revenue generated
per available room in the hotel.
RevPar is also simple to compute; simply multiply your average
rate times the occupancy percentage for that period; the result
is the amount of revenue generated for each room available for
sale.
Take Names and Kick Butts
It’s important to assign a face and name to your competition; get
specific. Too often, I hear managers refer to “the competition”,
but have to sit down and think about which hotels they actually
are and why.
Generally, there are only one or two hotels that present the
most serious threat to your ultimate success. Your hotel is probably
on their lists as well. It always amazes me how many hoteliers
have so little information about specific competitive hotels. Get
to know them well; as well as you know your own.
Unless your hotel completely dominates your competitive
environment, one or two hotels in your competition set are preventing
your hotel from fulfilling its full potential. From your new
S.W.O.T. report and your new STR report, you can determine
who they are and develop ways to take advantage of their weaknesses
and your strengths.
For those, who think this may be a little cold, you were probably
not around during the intense “sales warfare” of the early
90’s. An intense competitive environment has always stimulated
sales innovation. It benefits our industry.
Focus Your Team on Challenges not just Procedures
As a rule, people can be very creative in dealing with the challenges
to your top-line. In far too many cases, owners and managers
present procedures and solutions instead of the challenges.
Try empowering your team to solve the challenges presented in
your market and let them create the procedures and solutions. Put
aside all your prejudices and “knowledge” of the market and let
them create new ways to capture business. You might be amazed
by their innovation.
I will never forget what happened at a hotel in Roanoke Virginia
many years ago. Every summer for years, group business fell
flat. The manager hired a sales director who knew little about the
Roanoke market. After just a few months on the job, she booked
more summer group business than this hotel had ever seen. The
manager completely forgot to tell her to concentrate her efforts
on the fall and winter because summers were very poor.
Neil Salerno, CHME, CHA, The Hotel Marketing Coach,
www.hotelmarketingcoach.com, NeilS@hotelmarketingcoach.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE
The Two-Minute
Rule
by Susie Ross
What is the two-minute rule? Well, if you’re a server, you
should know automatically what it is and, if you don’t,
shame on you. The two-minute rule is the time you
should allow your guests to have their food before you check back
with them and make sure everything is great. Notice I didn’t say
“ok” – I said “great!” That’s a topic for another newsletter.
After two minutes, most guests will have had time to try their
food and know whether or not it was prepared to their satisfaction.
If it wasn’t, it becomes your opportunity to correct a mistake
immediately and save your tip from dipping below the acceptable
mark.
One of the things that is most irritating to guests is needing
their server and not being able to locate him. Other servers
don’t seem to care that you’re looking around the restaurant for
someone to offer another drink, refill beverages or just clear some
plates. It becomes the classic “that’s not my table” syndrome.
Another equally annoying situation is having the server hover
over you, asking every five to ten minutes, “Is everything ok?”
“Is everything still ok?” I can tell you that from personal experience
I have wanted to throw my dish at servers who kept coming
by and asking that question. It’s not necessary to keep asking that
question! Your guests are trying to enjoy the dining experience
and perhaps have a conversation with the other people at the
table – not the server!
The only time it’s ok to come by and repeat that two-minute
rule is if there was a mistake and the server corrected it and needs
to make sure the dish has indeed been prepared to the satisfaction
of the guest.
This brings up an issue that a reader recently pointed out
to me, and that is the need for a sort of “silent summons” for
the guest to give a waiter so as to avoid raising one’s hand or
shouting out as if to a dog. There is a restaurant in Denver that
has a system that is probably similar to the one suggested. This
casual, cafeteria-style Mexican restaurant has little wooden stands
on each table. Cleverly designed are flags attached to strings that
guests can raise up to let the server of that station know that
something is needed. The problem is obvious; servers may not be
in their stations to know they are needed. They have to be present
to see the flag! The other option could be an electronic device
that signals the server wherever he/she may be. I propose that a
well-trained service staff shouldn’t need any kind of “summons”
system, either electronic or otherwise, to do their jobs properly.
By definition, a server’s job is to be at the ready for guests.
“ …you may only have to
observe and step in when
necessary – silently. ”
After your two-minute check-back, you need to use silent
service, which is merely your presence and visibility in your station.
That’s who you’re there for – the customer. Don’t ever
forget that. If you’re present in your station, you may not even
have to intervene; you may only have to observe and step in when
necessary – silently. Believe me, your guests will appreciate it.
Training and information is the key! Contact me, Susie, at
Waiter Training, either by phone or email. My business number
is (720) 203-4615, and web address is http://www.waiter-training.
com.
I have restaurant training manuals available for sale, as well
as my book, “A Waiter’s Training,” for the individual server who
wants to learn more about his/her career and improve on skills.
Susie Ross has been involved in the hospitality industry for ten years. She has just
written a definitive work on front of house customer service and techniques for waiters
and waitresses. For more information about Susie’s book, “A Waiters Training,” her
training manuals and training seminars please visit her at
http://www.waiter-training.com or email her at susie@waiter-training.com.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HUMAN RESOURCES
Ask What Makes You Great
We will orient you to who we are — our heart, our soul,
our goals, our vision, our dreams, so you can join us
and not just work for us. You have the right to know
our hopes, our dreams and our goals.
Horst Schultze, former President & COO for Ritz Carlton addressing
new employees as quoted from Harvard Business School
Case Study revised 7/02
I believe that most business people, if given the chance, want to
make their brand better and more competitive to achieve the twin
goals of on-going & acceptable profit and life-long consumer
loyalty. The realities of doing so are difficult. Many just don’t
know how to get to that next level: creating a remarkable brand
whose sum is greater than its constituent parts. What is a remarkable
brand? It starts with absolute clarity about who you are and
what you stand for. I call it ‘the sword in the sand’ — those few
key values, animated by seminal life experiences that brought you
to your business and get you up every day to return to the battle.
As Mr. Shultze said to his new recruits, your associates (and by extension,
your guests) have the right to know your ‘hopes, dreams
and goals’.
How would your guest
describe you?
The second element is a profound understanding of your consumer’s
expectations, with one caveat: there is no real value in
using a consumer’s current expectations as a meaningful benchmark.
Most people’s expectations are exceeded when they get
fundamental services provided pleasantly or products served as
ordered. That’s no standard that I’m interested in using. No, go
deeper and ferret out what your consumer’s hopes are around the
experience you provide and make that the baseline for standards
measurement. You not only will see what it is you need to eliminate,
but those elements and attributes you should celebrate. It
gives an entirely different context from which you develop both
your brand story and the practical processes needed to deliver it.
Thirdly, you have to develop your story that not only describes
the ideal guest experience, but also incorporates the animating
force inherent in your true values and your consumer’s hopes.
The story becomes the trunk of your business tree and everything,
I mean everything, else is derived from it. It includes how
and with whom you do business, the ways you hire and train to
the meaning you imbue in every moment of the consumer’s buying
experience. It is a whole business system, whose soul is your
story.
Now, let me give you a handful of questions to ask yourself, if
you wish to go on this journey to remarkable branding.
●
●
●
●
●
●
by Rick Hendrie
FIVE Remarkable Branding Questions
What is the single most important value you hold
sacred in relation to your business?
Can you associates tell you what that is? Does it
motivate them to be remarkable?
What do your guests like and what don’t they like
about what you do and how you do it?
How would you describe your business or concept
to a stranger?
How would your guest describe you?
Your staff?
How do you know if your customers are loyal, not just satisfied?
There are a ton of other things to ask and understand, but just
start there. The service economy is finished because consumer
satisfaction is no longer a guarantee of intention to return and
guest expectations are pegged to mediocrity. What will make you
great is the excellence of your product and service. What will
make you remarkable is the inexplicable combination of feeling
and sublime unconscious associations guests make when they see
you or think about you. That is contained in the part of the brain
called the amygdala, entirely separate from the centers of logical
and rationality and it is there that your greatness must reside.
If you feel like sharing your insights with me (confidentiality assured)
I’d be delighted to give you my feedback, free of charge. If
not, let these questions be the springboard to remarkable-ness.
Rick Hendrie is President & Chief Experience Officer of Remarkable Branding,
Inc., a Cambridge MA based consultancy which helps create memorable brand experiences.
For a complimentary newsletter go to www.remarkablebranding.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

FINANCE & ACCOUNTING
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE
Tips for Delivering Great
Customer Service
by Jane-Michèle Clark
It almost goes without saying that good customer service is essential to sustaining any
business. No matter how wonderful a job you do of attracting new customers, you
won’t be profitable for long unless you have a solid customer retention strategy in
place – and in action. It’s the actions that count – not what you say you’ll do, or what the
policy says. People will remember what you or your employees have done – or not done.
One of the key components of an effective retention strategy is exceptional customer
service. Not just good service, but memorable service. Today, consumers’ expectations are
higher than ever and companies that fail to deliver, risk losing market share.
Tips for Delivering Good Customer Service.
1. Treat me like a somebody. It’s been years since that Midas muffler commercial aired, but
the “I’m a somebody” phrase can still be heard from time to time. Why? Because regular
customers expect (and deserve) to be remembered. As one woman summed it up, “You
don’t need to remember my name, or what I order, but do acknowledge that I’ve been
there before.”
One of the best examples I’ve ever seen of this is at my local coffee shop. One day I
noticed that the young man behind the counter greeted some people by name and, even if
he didn’t know their name, he knew what they usually ordered. As I waited for my tea (he’d
already placed my ‘two milk on the side’ on the counter without me having said a word), I
asked him why he said, “See you later” to some customers, “See you tomorrow” to others,
yet always said, “Have a good week” to me. The smiling, friendly reply? “Because you only
come in on Mondays and Fridays”. As I thanked him, I thought to myself, “Wow. He won’t
be here long”. Unfortunately, I was right.
10 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE
2. Be polite! Too frequently company representatives ask customers
for file information without saying “Please” or even being
polite. It is not acceptable for a service rep to simply bark out,
“Account number?” And it is never acceptable for a service rep
to insult a client.
Six weeks ago there was a problem with my home internet
account – which is with a phone carrier I have used my entire
life (and, as you know, this kind of loyalty to a phone company is
almost unheard of these days). In all that time, I have never been
late with a bill payment to them. There is a long and ugly story
here, but the short version is that a) the problem was on their end
and b) before they realized where things had gone wrong, their
rep was extremely rude. When I asked him to please change the
way in which he was addressing me, he snarled, “Well whadya
expect? If you’d pay your bills on time you wouldn’t have this
problem.”
I couldn’t believe what I was hearing. In fact, if I’d just read
this account (instead of being on the receiving end), I wouldn’t
have believed the story. What’s worse is that although the company
later apologized, their senior management seemed to feel
that this was not an isolated incident.
A 2005 survey conducted by Schulich School of Business
MBAs suggests that this kind of problem exists in over 30% of
companies, and costs them hundreds of millions of dollars in
lost customers (and revenues) each and every year. Don’t let your
company end up one of these statistics.
“ …special gestures go a long
way towards engendering
customer loyalty… ”
3. Thank your customers – like you mean it. When your employees
conclude a transaction, they should thank the customer with a
smile and a sincere “thank you for … completed by whatever
is appropriate for your business”. Too often, customers received
a rushed and barely civil “Thanks-Have-a-nice-day-Next”. With
large purchases, the verbal greeting should be followed up with a
hand-written card – not just because it leads to increased referrals
(which is does), but because it is the correct thing to do.
Oh, and by the way, the word “Sure” is no way to respond
when a customer thanks you. To many people in many parts of
the world, this is dismissive and suggests you don’t care. The correct
phrase is “You’re welcome”.
4. Appearances do count! According got two independent pieces or
research, nearly 90% of customers form an impression about
how competent and reputable your company is based on what
they see when they walk trough your doors.
Preserve me from auto-attendant hell. Customers are becoming
increasingly annoyed and frustrated with having to sift through
a multitude of options and press numerous buttons – only to be
told that the desired service can only be obtained through the
company’s website. Worse is when the auto-attendant uses voice
recognition – but doesn’t ‘recognize’ your voice. People want to
connect with human beings; they don’t want to listen to a long list
of prompts. For hints on how to use auto-attendants effectively,
please read “The top 5 new things people expect for good customer
service” on our ReallyGreatInfo.com webiste.
5. Do what you say you will... when you say you will. The expression
“Under promise, over deliver” may have become somewhat hackneyed
through over use, but is still germane. One of the quickest
ways to lose customer confidence is to not follow-through, or
to be late delivering a service or product, without notifying the
customer in advance, determining whether or not the delay will
impact the customer and providing an alternate solution in the
interim if necessary.
One of the best examples I ever experienced of a company
doing it well happened with Toyota. There was a problem with
my RAV4 and Toyota couldn’t repair it easily. I was driving a loaner,
but had planned to go camping with my kids. It was our summer
holiday and it had been planned for months. When Toyota
couldn’t repair my vehicle in time, they rented an SUV for us to
use – without me having to ask. I have since purchased another
vehicle from this dealership and recommended it to 6 others who
have purchased from them. Coincidence? I think not.
6. Surprise the customer from the time to time. When it is possible to
provide an extra level of service, do so. Whether it’s an unexpected
complimentary dessert in a restaurant, or an upgrade that has
not been requested, these special gestures go a long way towards
engendering customer loyalty and to winning you new customers.
It has long been known that on average, a dissatisfied customer
will tell 10 - 16 others, but people who have had an unexpectedly
good experience also recount their stories.
7. Provide “full” service. When Successories sends out its framed
prints, it includes the hooks and a small levelling device. There’s
a remote control toy vendor near me who includes the batteries.
“My” gas station dispenses free coffee with gas on weekday
mornings. A drive-through drycleaner in northern Ontario opens
early and hands you the morning paper with your order. Small
things,yes. Greatly appreciated? No question.
I spoke to each of my local retailers and learned that in each
case, their sales – and profits – have enjoyed double digits increases
since they introduced more comprehensive service. Think
about what you can add to help make things easier for your customers.
In some cases, by looking at what else it makes sense to
sell, you can even add a new revenue stream while improving the
perceived level of customer service provided.
8. Mea Culpa. When you have made a mistake, admit it and set
things straight. When customers have a complaint – listen, truly
listen. Then apologize and take corrective action. In many instances,
the very act of listening (without interrupting) can be
enough to diffuse the situation and make the person feel worthy
as a customer. Then ask the customer how they would like you to
resolve the situation. In most instances, your client will come up
with something reasonable – and often less costly than a solution
you might have proposed.
9. Listen to your customers. Conduct your own surveys and get feedback
on what they like and don’t like - and take corrective action
as required. Let customers know that their business is appreciated
and that their opinions are important to you.
None of these suggestions takes a lot of time or money to
implement, yet they can pay dividends in increased customer satisfaction
and retention. The key, though, is to ensuring that employees
understand the importance of their front-line role and
get good training and supervision.
Jane-Michèle Clark is president of The Q Group (http://www.theQgroup.com),
a marketing firm with a solid 30-year track record. She teaches MBA marketing,
is a corporate trainer & speaker, business coach and 4-time nominee for Canadian
Woman Entrepreneur of the Year. Jane-Michèle can be reached at
jmc@reallygreatinfo.com or by calling 416-424-4233.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 11

12 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SALES & MARKETING
How to Lose the Sale, Quickly and
Easily
by Kelley Robertson
Here are five sure-fire ways to guarantee you will not get
the sale; Focus on yourself. I recall meeting several salespeople
from a variety of vendors regarding an initiative
I was working on for a client. EVERY single person began
their presentation by telling me about their company rather than
learning about my needs and wants. I ended up being subjected
to information that had little or no relevance to my situation,
which meant that 20-30 minutes of my time was wasted in each
interview. I understand the importance of providing some background
information on your company at the beginning of your
presentation but keep it brief. I personally don’t care how much
your company is worth, how long you have been in business, or
what projects you have recently completed. I want you to focus
on my needs first.Demonstrate that you care about my particular
situation or show that you are interested in learning more about
my business needs and I will reward you with my full attention.
Don’t listen to me. When I worked in the corporate world I
gave countless salespeople information pertaining to my business
requirements only to have them draft a proposal that did not take
these needs into consideration. Don’t waste your prospect’s time
asking questions if you are not going to listen to his responses.
The best salespeople ask probing questions, take written notes,
and clarify their understanding of the prospect’s needs at the conclusion
of each meeting. This enables them to create a proposal
that addresses the client’s specific concerns, issues and situation.
Make elaborate claims about your product/service.
I once had a salesperson claim that his product was completely
unique from anything on the market. When I questioned what
he meant, I discovered this “unique feature” was something that
several other companies offered as well. This salesperson immediately
lost any credibility he may have established and failed to
close the sale. Do your research and learn what your competitors
offer. Know how to position yourself differently without exaggerating
or overstating your product or service.
don’t make them. I suggest that you think otherwise. The majority
of people who sell a product or service fall prey to these mistakes
on a regular basis. Here is a final example;
When I was the manager of
training for a large retail organization
I was contacted by many
sales trainers. One in particular,
spoke at great length about the
features of his program and how
valuable it was because participants
would learn how to effectively
qualify customers.
He told me that this workshop
would teach people how to ask
the right questions and listen
to the answers. In turn, I would
see a noticeable increase in
sales. While I agreed with his
concepts, I seriously doubted
his ability to deliver. Why? He
did not apply the concepts of
his own workshop. In fact, he
spent most of the allotted time
talking rather than learning about
my needs! If he didn’t practice what
he preached, how could I be sure he
would deliver? Pay more attention to
your prospect’s needs and respect
their time. Avoid these common
mistakes and increase your sales.
Talk too much It continues to amaze me how many people
think that telling is selling. I have window shopped in a variety
of stores and excellent salespeople understand the importance
of silence and have learned to become comfortable with it. Unfortunately,
too many people talk far too much. I recall listening
to a salesperson ramble on at great length about a product I was
genuinely interested in purchasing. Unfortunately, I couldn’t get
a word in edgewise to tell him I wanted to buy it. In fact, when I
told I wanted it, he tried talking me out of the sale by stating, “If
you want some time to think about it, there’s no rush.” While I
appreciated his low-pressure approach I couldn’t help but wonder
how many sales he had lost in the past.
Do not respect my time.Today’s business executives are extremely
busy. In fact, I recently read that most decision-makers
have just one hour of unscheduled time during a given week.
When you are granted an appointment or are talking to someone
over the telephone, respect their time constraints. Get to the
point quickly and keep your presentation concise and brief. You
may think these are pretty basic mistakes and you may believe you
“ …I seriously doubted
his ability to deliver. ”
Kelley Robertson, President of the Robertson Training Group, works with businesses
to help them increase their sales and motivate their employees. He is also the author of
“Stop, Ask & Listen – Proven sales techniques to turn browsers into buyers.” For
information on his programs, visit his website at RobertsonTrainingGroup.com .
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 13

NEWS
Hospitality News
Courtesy Of Ehotelier.com
Indian Hotels Company Ltd.
Partners With Eurocape in
South Africa
Indian Hotels Company Ltd. (ICHL) has announced a
partnership with Eurocape, the developers of the US$137.9
million Mandela Rhodes Place, to develop Cape Town’s
newest addition in luxury hotel rooms and residences. The
first phase of Mandela Rhodes Place is due for completion
by the end of 2006. It will include an array of restaurants,
bars, winery, wellness centre, offices, gymnasium,
swimming pool and a rooftop garden. The second phase
of construction is scheduled for completion by the end
of 2008 and will feature a 174-room five-star hotel and
20 private residences. The US$41.3 million hotel and
residences development at Mandela Rhodes Place marks
the company’s first major investment in South Africa, with
two other hotels planned in Johannesburg and Durban as
part of their Indian Ocean expansion plan. IHCL owns and
operates 75 Taj Hotels Resorts and Palaces worldwide.
Westin re-enters Singapore
Starwoods Westin brand will return to Singapore as part
of City Developments Limited’s (CDL) “The Quayside
Isle” project, which has been awarded to the developer
by Sentosa Cove for its marina quayside site. The 320-
room hotel will be Singapore’s first five-star marina hotel.
It will also mark the brand’s re-entry to the island-state
since the Westin Hotel Singapore was rebranded Swissotel
the Stamford in January 2002. In addition to the hotel, the
project will also have speciality retail shops, restaurants,
home office suites and luxury residences.
The award is collectively worth S$255 million (US$161
million) and will enhance the leisure and entertainment
amenities in southern Singapore. This neighbourhood
includes Sentosa Island with its planned casino resort,
HarbourFront, VivoCity, Singapore Cruise Centre, St
James Power Station and Mount Faber.
Taj Hotels Looks To Buy
Boston’s Ritz-Carlton Hotel
Don’t breathe a word of this. Because nobody’s supposed
to know. But the Taj Group, a hotel conglomerate
from India, is the super-secret suitor negotiating to buy
Boston’s Ritz-Carlton hotel. The Indian luxury chain,
which recently purchased The Pierre in NYC from the
Four Seasons, reportedly is seeking similar properties in
so-called ‘gateway’ U.S. cities to build a five-star hotel
company under The Pierre flag. The Tajies currently own
57 hotels in 40 locations across India with an additional
18 international hotels around the globe. ‘We’re waiting,’
said one Ritz insider, ‘but there’s nothing definitive yet.’ As
we told you weeks ago, the owners of the grand dame on
Arlington Street, Millennium Partners, have been looking
to unload the Ritz and employees have been told that the
hotel may soon be under new management. Hotel spokesgal
Caron LeBrun yesterday reiterated the party line saying she
couldn’t comment on ‘rumors and speculation.’
Surge in Thailand Arrivals
The Association of Thai Travel Agents has reported that
arrivals at Bangkok’s Don Muang Airport surged by 42%
in the first five months of 2006. A total of 1,223,546
million passengers passed through the airport between
January and May 2006, compared to 860,844 in the same
period last year. China led the way, with 216,919 arrivals
- a 102% increase over the same period last year, followed
by Korea with 101,383 arrivals - up 68%. Japan came in
third with 155,537 arrivals - a 34% increase. The UK was
the biggest European market, generating 60,654 visitors
- up 73% on last year’s figures. Germany, with 42,583
visitors (a 21% increase on 2005), was the second biggest
European market. The Tourism Authority of Thailand
targets 13.8 million foreign tourists and US20 billion
receipts in 2006.
1 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

NEWS
Consultancy Role for Wolf
Vierich and The Vitala Group
Wolf Vierich, Chairman of the Vitala Group, and his
Group Companies have been selected as consultants to
Fort Dragon Hotel Management Company Ltd in the
People’s Republic of China.
Fort Dragon is currently the largest privately owned 5-star
hotel operator and management company in China.
Vitala Group’s duties will comprise advising on all matters
relating to the hotel, tourism and leisure industries
and in particular to further assist Fort Dragon with the
administration of multiple hotel management contracts
throughout the People’s Republic of China.
Rihiveli construction
completed
Construction has finally been completed at the Rihiveli
Beach Resort in the Maldives, with the luxury resort now
back in operations with an even greater offering of facilities
and improved features than ever before. The resort now
has additional units of two new triple-sharing bungalows
that feature external shower bathrooms and a new duplex
villa that can accommodate four persons. The island also
now boasts a refurbished dive centre, a new windsurfing
school and a new spa. The existing bungalows were also
refurbished with new terraces and bathrooms, and features
wooden floors and new decorations. And a chill-out corner
cum bar is expected to be completed in September.
Hilton Plans A Boost For
Seychelles Tourism
The Seychelles’ hopes of luring more tourists has been
given a boost by Hilton Hotels’ plans to manage a
refurbished US$53 million resort. The company is now
searching for a second location on the Indian Ocean
islands. The international chain will manage the five-star
Northolme Hotel on behalf of Maldivian investors Crown
and Champa, who bought and renovated the property late
in 2005. The Seychelles wants to boost tourism revenues
which accounted for 43 per cent of the country’s foreign
exchange last year by attracting visitors seeking top-end,
luxury hotels.
Vietnam, Cambodia, Laos To
Join Hands In Tourism
The Tourism Department of Ho Chi Minh City (HCM
City), the Tourism Ministry of Cambodia and the Lao
National Administration of Tourism have agreed to
jointly organize International Travel Expo-Ho Chi Minh
City 2007 (ITE-HCMC 2007), themed “Three countries,
one destination”, in HCM City, said the Deputy Director
of the Ministry at the closing ceremony of ITE-HCMC
2006. Expo 2007 will focus on three main issues: making a
common kiosk of the three countries; organizing a seminar
to introduce Indochina adventure tourism programs by
land, sea and air; and publicizing the cultural values of the
three countries. The three sides will report plans to their
governments to hold the Expo in October 2007. For three
days, ITE-HCMC 2006 attracted about 10,000 visitors,
with over 1,000 meetings and business promotions among
71 international tourism agencies and 140 companies.
Shangri-la Named Best
Business Hotel Brand In Asiapacific
By Business Traveller
Asia-pacific
Asia Pacific’s leading luxury hotel group, Shangri-La Hotels
and Resorts, was today named the Best Business Hotel
Brand in Asia-Pacific for the sixth consecutive year in the
Business Traveller Asia-Pacific magazine’s readers’ poll. In
addition, the Shangri-La Hotel, Singapore was voted Best
Business Hotel in the World, Best Business Hotel in Asia-
Pacific and Best Business Hotel in Singapore. The Makati
Shangri-La, Manila won Best Business Hotel in Manila and
China World Hotel, Beijing won Best Business Hotel in
Beijing.
The poll was conducted among the magazine’s readership
of frequent travellers based mainly in the Asia-Pacific
region. Results were compiled by Taylor Nelson Sofres
Hong Kong Limited and will be published in the October
2006 issue of Business Traveller Asia-Pacific.
Hong Kong-based Shangri-La Hotels and Resorts, Asia
Pacific’s leading luxury hotel group, currently manages 49
hotels under the five-star Shangri-La and four-star Traders
brands, with a room inventory of over 23,000. The
group has over 40 projects under development in Canada,
mainland China, France, India, Japan, Macau, Malaysia,
Maldives, Philippines, Qatar, Seychelles, Thailand, United
Arab Emirates, United Kingdom and the United States.
For more information and reservations, please contact a
travel professional or access the website at www.shangrila.com.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1

16 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

MISCELLANEOUS
Perchance to Dream - the Guest Room
of the Future [Is it Already Here?]
By John R. Hendrie, Hospitality Performance
Once upon a time, our Guest was thrilled with a good
mattress, a clean bathroom, and access to a pool. Room
amenities and design were not a loss leader, for your
prices reflected a recoup of the costs, minimal, as they once were.
Then, the evolution began, and you had to be quite clever to gain
and retain that competitive edge, cost effectively.
You witnessed the changes. A simple tub begat a Jacuzzi,
siring the Spa. Cable television accelerated into Movies on Demand.
Complimentary coffee in the Lobby morphed into a coffee
maker, a fridge and a microwave in every room. Rigid hours for
Room Service are now 24/7 with pizza. You participated in the
“bedding wars”, extolling your beds, linens, furniture. For some,
a budding Cottage Industry was born - anything that moves is
for sale.
The Guest Room has become the haven, the Business Center,
the Crash Pad, the Love Lair, the extant home away from
home. You are doing everything you can to make it special, safe
and memorable. But, the evolution continues, as you try to exceed
the expectations of the Baby Boomers and the GenX’ers and the
forthcoming generations on the horizon. Remarkable Hospitality
is a challenge!
If you are not thinking about your lodging operation in the
context of the future, you will not exist in that new world. Everything
is changing too rapidly – your Guests, your business,
your world. To be a pioneer is critical, and to move forward with
advantage you must engage the following:
• your Guest
• your own brilliance
• your suppliers/purveyors to the industry
Your Guest wants their connectivity and pleasure in private
and comfort in that amorphous domain we have so carefully created
for them. They want it all, they want it now, and they want
it their way! Your challenge is to marry a high level of service
and product to technology, which is the driving force for this
evolution.
Ideally, you have a relationship with your Guest, and you have
reliable mechanisms to assess your performance and to specifically
capture what your Guest really desires for their experience
in your operation. By the way, hand-written Comment Cards are
not acceptable as you plot your future, for you have lost any real
time response value.
Do not underestimate the power and creativity of your own
perspective, your management team and fellow associates. The
challenge is that you need to take some time and think outside
that four wall box. No excuses; you have all the time there is, and
group exercises with no boundaries create energy, commitment
and, surprisingly, some very fine ideas. Another ingredient is curiosity.
If you are not well read and informed, you are operating
in a vacuum (a Hooverite, gathering the detritus of the Past).
So, now, believe you have some wonderful ideas, culled from
your Guests and your own in-house resources. Some may sound
far-fetched (akin to man on the moon), while others appear
sound, reasonable applications. This is where we can turn to our
partners, the vendors and purveyors. They share in your success,
and they can help you actualize the possibilities.
What is already in the marketplace is extraordinary. Naturally,
security, privacy and reliability are crucial. Some companies are
“cutting edge” with their products and acumen. What follows is
not an endorsement, merely an acknowledgement of the “future
being now”. One company I have watched, GBCBlue, features
an automated Personal E-Room Concierge system, which simply
beats the band! Beyond regular PC usage for the Guest, there is
a screen entry to share with Management their thoughts about
the stay. As it is real time, Management also has an opportunity
to demonstrate active service recovery for any shortcoming/
concern. The screen also has increased Room Service Revenue
threefold, using appetizing pictures for all menu items. Additionally,
there is wonderful opportunity to tout property amenities,
activities and services, and make reservations and purchases
– right there on the Room PC, real time, up close, interactive and
personal. Guest pleasing, Management proceeds. WOW!
As another example of the “future being now” pertains to
the Green Movement and the very simple light bulb, which creates
comfort and illumination, as we know. The Fresh BulbTM ,
developed by Auro Technical Consumer Products and introduced
to the industry by Pineapple Hospitality, is a titanium dioxidecoated
fluorescent light bulb that consumes one-fourth the wattage
of a regular light bulb—cutting lighting costs by as much
as 77 %. The coating reacts with the fluorescent lighting when
the bulb is turned on, eliminating room odors within minutes.
Another certifiable WOW. Just imagine – good lighting, reduced
costs and a clean smelling room.
Innovation and creativity spur societies forward, and businesses
which embrace a better way, anticipate and project the
needs and wants of the marketplace, and invest in the vigor of
their people prosper. Hospitality is not usually in the forefront
for change. However, the world stage and unchartered events
all challenge our comfort zone. We simply cannot afford to be
complacent.
Our Guests and Visitors are far more demanding than in
the past. Ladling out the same old, same old simply does not
cut it! Hopefully, the business of the summer months has been
encouraging, and we will take some time to assess what we have
learned from our Guests, tap ourselves and our resources for
new ideas, and partner with companies which support our business
to advance new generations of thought and product. The
Guest Room is the lab; this is where new products are created
for the comfort, security and sensibility of our raison d’etre – the
Guest.
John Hendrie, is CEO of Hospitality Performance, Inc., a full-service hospitality
consulting company. With a strong background in Hospitality, Human Resources,
Organizational Effectiveness, and Communications, John has devoted his career to
establishing Standards of Excellence across varied businesses. For more information,
please visit www.hospitalityperformance.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 17

MISCELLANEOUS
Top 10 Quirkiest Hotels in the World
by ehotelier.com
Ice hotel in Quebec freezes out competition. The top
10 quirkiest hotels was selected according to traveler
popularity, and TripAdvisor editors.
1. Have an Ice Stay: Ice Hotel Quebec-Canada, Quebec,
Canada Breathtaking hotel made of ice, features an
ice chapel, theme suites, an ice bar, and an art gallery -- with
ice sculptures, of course. Activities include cross-country skiing,
ice fishing, archery, snowmobiling, snow tubing and even
dogsled driving. As one TripAdvisor traveler described, “It’s
like sleeping in a 5-star igloo.” The “icetablishment” is only
open from January to April, just don’t forget your parka and
long johns.
2. Jail House Rock: Malmaison Oxford Castle, England,
U.K. Everything about the Malmaison Oxford Castle is
authentic enough to make you feel as if you are in the confines
of an actual prison, but with better company. Can a jail hotel
be romantic? According to one TripAdvisor traveler, “My husband
and I decided to ‘honeymoon’ at the Malmaison Oxford
Castle, feeling that this magnificent converted prison would
make a grand setting to begin our ‘life sentence’ together. It
certainly did not disappoint.” The first U.K. prison to be converted
into a hotel, rest assured the property was renovated to
ensure for more comfortable accommodations.
3. Smooth Sailing: Imperial Boat House, Ko Samui,
Thailand With 34 authentic teakwood rice barges converted
into land-locked luxury suites, the Imperial Boat House on the
beach is nautical nirvana. The lavish outdoor pools are surrounded
by a lush and lovely garden. As described by one
TripAdvisor traveler, “The resort is really impressive -- beautiful
landscaping and accents throughout.” A final touch-the
remarkable beach-front, boat-shaped pool, features cannons
-- no doubt, to keep the pirates at bay.
4. Entertainment Extravaganza: Fantasyland Hotel &
Resort, Edmonton,Canada With over-the-top fixtures
and themed rooms, the Fantasyland Hotel and Resort is a shock
to the senses. According to a TripAdvisor traveler, “It gives you
the feeling that you’re somewhere totally different, and when
it’s -30 C and there is tons of snow, this is the perfect escape.”
Great for families, it boasts a 217,800 square-foot indoor water
park, an indoor ice rink, indoor golf and you guessed it, indoor
roller coaster ride. Why all the indoor activities? Remember
this is Edmonton, not Ibiza.
5. Tree-Top Tableau: Ariau Amazon Towers Hotel,
Manaus, Brazil Seventy feet up into the tree-tops of the
Amazon, the Ariau Amazon Towers Hotel features catwalks
connecting the entire complex. Activities include a jungle walk,
swimming with dolphins, a caiman hunt and even piranha fishing.
The rooms are rustic, but in the opinion of one TripAdvisor
traveler, “Wouldn’t some towering monstrosity of modern
conveniences be somewhat incongruous in this setting?” Don’t
be surprised to see a wide variety of flora and fauna in this
authentic jungle environment, where it’s okay to hand-feed the
monkeys and parrots.
6. Desert Rose: Al Maha Desert Resort, Dubai, United
Arab Emirates Unique in its setting in the middle of the
Dubai Desert, the Al Maha Desert Resort is an oasis with luxurious
accommodations, including private pools and an authentic
“Bedouin” encampment design. Activities that might be
hard-to-find anywhere else include sand dune driving, falconry
and camel trekking, and the panoramic views of the Hajar
Mountains are a sight to be seen. Oryx and gazelles are known
to come around the rooms at night and drink water from the
private swimming pools. As one TripAdvisor traveler noted,
“There are lots of wild oryx roaming the grounds, which is
nice, but also a bit scary when they’re blocking the path to the
room.”
7. Chief Light-Wallet: Wigwam Motel, Holbrook, Arizona
Operating along the historic U.S. Route 66, the Wigwams
are actually teepee-style, cement tents. The bargain motel
features the authentic feel of a 50s desert town -- from the
furniture, to the vintage cars in the parking lot, to the sounds
of the old locomotive passing through town. The rates are also
a blast from the past -- the average room costs about $45 a
night. According to one TripAdvisor traveler, “By the way, the
rate is for real ... the youngest son of the builder commented
to me that they don’t make money operating the motel, they do
it ‘as a sort of public service.’” Cash and credit only, wampum
not accepted.
8. Caveman’s Delight: Yunak Evleri, Urgup, Turkey
Carved out of a stunning mountain-side cliff, the honeycombed
hotel includes six cave houses, with rooms connected by narrow,
maze-like passageways and stone stairways (think Land of the
Lost, without the creatures). Decorated in Ottoman style, Yunek
Evleri provides private patios offering dramatic views of the
Turkish Mesa. As described by one TripAdvisor traveler, “You
are then whisked to this serene land with its 7th century caves,
outdoor archeological museums, and the best baklava ever.”
9. Toro! Toro!: Quinta Real Zacatecas, Zacatecas,
Mexico Built around a 17th century bullfighting ring, it’s no
longer operational, so leave the red cape at home. The Quinta
Real Zacatecas incorporates the feel of “Old Mexico,” with its
colonial architecture. Beautifully illuminated at night, the hotel
also faces the city’s ancient arched aqueduct and the local
village’s quaint shops complete the unique experience. Be sure
to enjoy the comfy robes ... as one TripAdvisor traveler suggested,
“Do yourself a favor and buy their robes to take home,
I didn’t and I have regretted it for seven years now.”
10. Inn Vogue: Madonna Inn, San Luis Obispo, California
Most often referred to as kitschy, perhaps the best description
for the Madonna Inn comes from a recent TripAdvisor
traveler, “It’s what happens when Barbie moves in with
Barney Rubble, all pink and rock.” But that’s part of the charm
of the Madonna. A garish, chalet-style inn, the hotel features
45 rooms with varying themes and color schemes. To many
travelers, an indescribably unique experience, perhaps the only
thing you need to know is that there is a famous waterfall urinal
in the men’s room.
18 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 19

Hotel Waste Reduction:
Facilities Management
0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

ENVIRONMENT
A
property with 350 guest rooms can spend $300,000 per
year on electricity, $50,000 on natural gas, and another
$60,000 annually on water and sewer. Most properties
have the potential to significantly reduce energy and water consumption
without any impact on guest comfort. Simple management
strategies like the ones presented here can reduce your
utility bills by 30 percent or more while helping your facility
become a better steward of the environment.
Every watt of electricity that your property uses generates
air pollution and hazardous waste. Every gallon of water
depletes fresh water resources and generates waste water.
On the other hand, every watt of electricity or gallon
of water conserved saves money and conserves natural resources.
The checklists below identify cost-effective activities that
also conserve resources. If your property is not already conducting
these activities, plan to incorporate them into your
operations in the near future.
In facilities management, conserving resources and saving money
often go hand-in-hand. The following examples illustrate typical
cost savings.
●
●
●
Switching from an incandescent to a compact fluorescent
lamp can save over $50 per year.
Replacing older, water-wasting showerheads with low-flow
models can save over $3,600 per year.
Installing low-flush toilet devices in older toilets can save
over $5,800 per year.
LIGHTING
Lighting accounts for 30 - 40 percent of commercial electricity
consumption.
Lighting energy demand can be reduced through a combination
of common sense conservation measures and use of energy-efficient
lamps and fixtures, such as those described below.
● Fluorescent Lamps. Use energy-conserving compact
fluorescent lamps (CFLs) instead of incandescent lamps for
general lighting that stays lit more than four hours per day.
●
Lighted Exit Signs. Use low-wattage lamps in exit signs
instead of the more common incandescent lamps. Lightemitting
diodes (LEDs) are the most energyefficient option,
but CFLs are still an improvement over incandescent lamps.
Although LEDs can cost over 50 percent more than low-wattage
incandescent lamps, the payback period is less than one year and
they last 10 times as long.
The biggest savings come from annual energy costs: LEDs cost
85 percent less to operate than incandescent lamps.
● Motion Sensors or Timers. Install motion sensors or timers
in meeting/conference rooms, linen closets, pantries, freezer
units/storage areas and as outdoor lights; such lights can be
set to go off after five to seven minutes of inactivity. Some
ECO•LODGE•ICAL facilities have saved over 45 percent
on annual energy costs using sensors in meetings rooms and
storage areas.
●
●
Task Lighting. In common areas, direct lighting on areas that
need greater illumination to avoid over-lighting whole area.
For additional information on lamps and fixtures, including
product-specific recommendations, contact the following
organizations:
EPA’s Energy Star Program has technologyspecific fact
sheets, case studies, and analytical and financial tools. Call
(202) 775-6650 or (800) STAR-YES or visit www.energystar.
gov.
“ Some ECO•LODGE•ICAL
facilities have saved over 45
percent on annual energy costs
using sensors in meetings rooms
and storage areas. ”
●
●
The National Lighting Product Information Program
publishes technical reports and independent performance
tests of brand name lighting products. To purchase these
publications, fax the Lighting Research Center at (518) 276-
2999 or visit www.lrc.rpi.edu.
The Electric Power Research Institute (EPRI) also offers
technology-specific reports. To order, call the EPRI
Publications Distribution Center at (510) 934-4212 or visit
www.epri.com.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1

ENVIRONMENT
●
●
Equipment. Develop and implement a monthly cleaning
and maintenance program for all equipment. This program
should include calibrating ovens and checking pipes for
leaks.
Computerized Energy Management Systems. Larger facilities
should consider installing direct digital control (DDC)
systems to manage lighting and HVAC. These systems have
three advantages over manual or pneumatic systems: they are
more precise, less susceptible to defects in the control system,
and more effective in identifying sources of problems. The
greatest efficiencies are achieved using fan systems with
variable speed drives.
●
●
Lawns. Restrict lawn watering to mornings, evenings or
nights to decrease water loss from evaporation and maximize
effectiveness. Use sensors that turn off water systems when
it is raining. Better yet, use soaker hoses which “sweat” water
from the hose and deliver it directly to plant roots.
Ground Cover. Plant ground cover that requires minimum
maintenance and water.
Calculate Your Energy Savings from Fluorescent Lighting Replacing
a 75 watt incandescent bulb with a 15 watt fluorescent
saves over $50 per year. The example below illustrates how to
calculate lighting energy savings in your facility.
MAINTENANCE AND HVAC
A well-maintained property can save money, increase guest comfort,
and even improve indoor air quality. Include the following
activities in your maintenance schedule:
● Filters. Clean permanent filters every one or two months.
●
●
●
●
●
Leaks. Check HVAC (heating, ventilation and air conditioning)
system and other equipment yearly for coolant and air leaks,
clogs and obstructions of air intake and vents.
Cooling and Heating. Don’t cool or heat more than necessary,
especially in unoccupied areas.
Condensers. Clean air conditioner and refrigerator condensers
at least every two years.
Sunlight. Cover west and south facing windows during the
summer, and let sunlight in during the winter.
Fugitive Heat. Position heat-producing appliances (such as
TVs and lamps) away from room thermostats. One watt of
air conditioning is required to offset the heat of one watt
of light. Thus, energy-saving lamps reduce air conditioning
costs watt-for-watt.
WATER CONSERVATION
●
●
●
●
“ Clean permanent filters
every one or two months.”
Low-Flow Faucets. Retrofit or replace shower heads with
low-flow devices, and install faucet aerators on faucets. Lowflow
shower heads can save a hotel 10 gallons of water for
every five minute shower. That means saving over $3,600
annually if 100 people shower each day, and water and sewer
costs are 1¢ per gallon.
Low-Flow Toilet Devices. Install water conservation devices,
such as toilet dams or flapper balls, in older, water-guzzling
toilets. These devices can save four gallons or more per flush,
translating into annual savings of over $5,800 if 100 guests
flush four times per day.
Full Loads. Operate clothes and dish washers only with full
loads, and promptly repair all leaks.
Wash Water. Wash clothes and linens in the coldest water
that will do the job; hot water is usually only necessary for
heavily soiled loads.
To calculate cost of a single light bulb:
(wattage of bulb) ÷ (1,000) x (hours per days in use) x (365
days/year) x (cost per kilowatt hour)
For example, the cost of a 75 watt bulb that burns 24
hours per day and cost 10 cents per kWh (kilowatthour)
would be calculated as follows:
(75 watts) ÷ (1,000) x (24 hours/day) x (365 days/
year) x ($.10/kWh) = $65.70 per year
A 15 watt bulb used for the same purpose would cost
over $50 less:
(15 watts) ÷ (1,000) x (24 hours/day) x (365 days/
year) x ($.10/kWh) = $13.14 per year
To calculate cost savings, simply subtract the cost of
the 15 watt bulb from the cost of the 75 watt bulb.
$65.70 - $13.14 = $52.56 per year
Conservation of energy and water can offer savings to properties
of all sizes. The following examples illustrate cost-effective
measures taken by small and large properties to benefit the
environment. The Budget Host Inn in Kill Devil Hills, N.C., has
12 employees, 40 rooms, and has made a concerted effort to address
environmental issues. Motivated by potential cost savings
and a desire “to help the community to protect the environment,”
Marion Peterson, manager, led the effort to manage her facility
more efficiently. Starting in 1993, The Budget Host Inn began
replacing incandescent lights with compact fluorescent lamps in
guestrooms and common areas of the inn. The hotel also installed
motion sensors in some public areas and low-flush toilets,
faucet aerators and low-flow shower heads.
On a larger scale, a California Radisson hotel reported a 6.5
percent decrease in monthly bills from installing water-saving
shower heads, turning the hot water down slightly, and installing
fluorescent lights. The facility saved $3,500 per month with
minimal initial costs: $15 per shower head and a slight increase
in light bulb expenditures. Similarly, the Grand Westin Hotel in
Seattle, Wash., began saving $30,000 per month once it adopted
an aggressive energy conservation program.
This waste reduction fact sheet is one in a series produced by the N.C. Division of
Pollution Prevention and Environmental Assistance (DPPEA) to assist the lodging
industry and concerned professionals in efforts to reduce waste and enjoy the benefits of
cost savings and a public image as environmentally responsible organizations
22 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

MISCELLANEOUS
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 23

NEWS
Financial Management Series X
How to Reduce Costs
Increasing profits through cost reduction
must be based on the concept of an organized,
planned program. Unless adequate
records are maintained through a proper accounting
system, there can be no basis for
ascertaining and analyzing costs.
Cost reduction is not simply attempting
to slash any and all expenses unmethodically.
The owner-manager must understand
the nature of expenses and how
expenses inter-relate with sales, inventories,
cost of goods sold, gross profits, and net
profits.
Cost reduction does not mean only
the reduction of specific expenses. You can
achieve greater profits through more efficient
use of the expense dollar. Some of the ways you
do this are by increasing the average sale per customer,
by effectively using display space and thereby
increasing sales volume per square foot, by getting a
larger return for your advertising and sales promotion
dollar, and by improving your internal methods and procedures.
Profit is in danger when good merchandising and
cost control do not go hand in hand. A big sales volume
does not necessarily mean a big profit, as one retailer,
Carl Jones, learned.
Jones’s pride was stocking stylish and well assorted
lines of merchandise. Each year, sales volume increased.
This increase was attributed to good merchandise which
Jones felt took care of the steady rise in expenses.
But Mr. Jones began to have doubts when he found it
necessary to get bank loans more often than had been his
practice. When he discussed the problem with his banker,
Jones was advised to check expenses. As the banker said,
“A large and increasing sales volume often creates the appearance
of prosperity while behind-the-scene expenses
are eating up the profit.”
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

FINANCE & ACCOUNTING
Paying The Right Price
Your goal should be to pay the right price for prosperity. Determining
that price for your operation goes beyond knowing what
your expenses are. Reducing expenses to increase profit requires
you to obtain the most efficient use of the expense dollar.
Look, for example, at the payroll expense. Salesclerks are
paid to sell goods, and their productivity is the key to reducing
the payroll cost.
If you train a salesclerk to make multiple sales at higher unit
prices, you increase productivity and your profits without adding
dollars to your payroll expenses. Or, if four salesclerks can be
trained to sell the amount previously sold by seven, the payroll
can be cut by three persons.
An understanding of the worth of each expense item comes
from experience and an analysis of records. Adequate records
tell what has happened. Their analysis provide facts which can
help you set realistic goals, you are paying the right price for your
store’s prosperity.
Analyze Your Expenses
Sometimes you cannot cut an increase item. But you can get more
from it and thus increase your profits. In analyzing your expenses,
you should use percentages rather than actual dollar amounts.
For example, if you increase sales and keep the dollar amount
of an expense the same, you have decreased that expense as a
percentage of sales. When you decrease your cost percentage, you
increase your percentage of profit.
On the other hand, if your sales volume remains the same,
you can increase the percentage of profit by reducing a specific
item of expense. Your goal, of course, is to do both: to decrease
specific expenses and increase their productive worth at the same
time.
Before you can determine whether cutting expenses will increase
profits, you need information about your operation. This
information can be obtained only if you have an adequate recordkeeping
system. Such records will provide the figures to prepare
a profit and loss statement (preferably monthly for most retail
businesses), a budget, break-even calculations, and evaluations of
your operating ratios compared with those of similar types of
business.
Break-even
A useful method for making expense comparisons is break-even
analysis. Break-even is the point at which gross profit equals expenses.
In a business year, it is the time at which your sales volume
has become sufficient to enable your over-all operation to
start showing a profit.
Once your sales volume reached the break-even point, your
fixed expenses are covered. Beyond the break-even point, every
dollar of sales should earn you an equivalent additional profit
percentage.
It is important to remember that once sales pass the breakeven
point, the fixed expenses percentage goes down as the sales
volume goes up. Also the operating profit percentage increases at
the same rate as the percentage rate for fixed expenses decreases
- provided, of course, that variable expenses are kept in line.
Locating Reducible Expenses
Your profit and loss (or income) statement provides a summary
of expense information and is the focal point in locating expenses
that can be cut. Therefore, the information should be as current
as possible. As a report of what has already been spent, a P
and L statement alerts you to expense items that bear watching in
the present business period. If you get a P and L statement only
at the end of the year, you should consider having one prepared
more often. At the end of each quarter might be often enough
for some firms. Ideally, you can get the most recent information
from a monthly P and L.
Regardless of the frequency, for the most information two
P and L statements should be prepared. One statement should
report the sales, expenses, profits and/or loss of your operations
cumulatively for the current business year to date. The other
should report on the same items for the last complete month or
quarter. Each of the statements should also carry the following
information:
1. this year’s figures and each item as a percentage of sales.
2.
3.
4.
5.
6.
7.
last year’s figures and the percentages.
the difference between last year and this year - over or under.
budgeted figures and the respective percentages.
the difference between this year and the budgeted figures -
over and under.
average percentages for your line of business (industry
operating ratio) when available, and
the difference between your annual percentages and the
industry ratios - under or over.
This information allows you to locate expense variation in
three ways: (1) by comparing this year to last year, (2) by comparing
expenses to your own budgeted figures, and (3) by comparing
your percentages to the operating ratios for your line of business.
The important basis for comparison is the percentage figure. It
represents a common denominator for all three methods. When
you have indicated the percentage variations, you should then
study the dollar amounts to determine what line of operative action
is needed.
“…determine whether
cutting expenses will increase
profits,…”
Because your cost cutting will come largely form variable expenses,
you should make sure that they are flagged on your P and
L statements. Variable expenses are those which fluctuate with
the increase or decrease of sales volume. Some of them are: advertising,
delivery, wrapping supplies, sales salaries, commissions,
and payroll taxes. Fixed expenses are those which stay the same
regardless of sales volume. Among them are: your salary, salaries
for permanent non-selling employees (for example, the bookkeeper),
depreciation, rent, and utilities.
Taking Action
When you have located a problem expense area, the next step
obviously is to reduce that cost so as to increase your profit. A
key to the effectiveness of your cost-cutting action is the worth
of the various expenditures. As long as you know the worth of
your expenditures, you can profit by making small improvements
in expenses. Keep an open eye and an open mind. It is better to
do a spot analysis once a month than to wait several months and
then do a detailed study. Take action as soon as possible. You can
refine your cost-cutting action as you go along.
Reprinted with permission of www.youngentrepreneur.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 25

26 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

FOOD & BEVERAGE
The Food Cost Percentage - Decomposed
Too much attention is placed on inventory accuracy. Most
people miss the finer points of determining their food
cost percentage. Clearly, the sales figure which dominates
the formula should take center stage. A very close second is the
purchases figure. The inventory obsessed need to take a different
view.
Many hotels and restaurants count monthly (or every four
weeks) and I see too much emphasis on inventory valuation. The
impact of inventory change depends on the time period. Monthly
values should be reasonable given the day of week and time of
year. The change in the inventory value (i.e. beginning minus ending)
hardly matters once a period of 90 days is considered.
Inventory is very important in a weekly analysis and all important
in a daily calculation. If you’re researching a problem and
perform daily calculations you need to be very exact.
The wonderful POS systems available today from the best
companies provide a bundle of sales analysis. My favorites are
check average and covers by meal period. I break down sales using
a simple matrix with a row for each meal period and columns
for covers, check average and sales.
On the purchases side, I break down the purchase data using
a larger matrix with rows for each key item and grouped data for
low impact items by category. The columns include units, average
cost and total cost.
For the inventory, I prefer a simple inventory change figure.
One number is fine. Simply subtract the current period’s value
from the previous period’s value. The net value should be a reasonable
and consistent estimate. Don’t count WIP inventory one
period and eliminate the figure the next period.
Some quick checks on inventory value by location and category
will provide enough information to locate the flour extended
by case price when the count team used pounds. Perform a
simple analytical review and correct major errors.
by Joe Dunbar
Many operators give no credit for highly perishable items like
bread, fresh fish and other items specific to the operation. This
helps to avoid over buying since the items are expensed immediately.
Inventory valuation should not be the reason for a good
or bad food cost percentage in any given period. Any operation
which runs a hi-low pattern or a low-low-hi pattern has a
far greater problem. These patterns typically point out cost control
weaknesses. Someone is trying to hide the truth. I have seen
plenty of inventory extensions with a spice valued at $1,000 plus.
The people presenting these reports may be both incompetent
and dishonest.
“ The net value should be a
reasonable…”
Look long and hard at sales trends by meal period. Some operations
run lunch menus with higher implicit costs. If the lunch/
dinner ratio changes, the food cost will be impacted. Extremely
high or low counts will have a major impact as well.
Most of the real action will be in purchases since the money
you spend with your suppliers is your cost. Highlight dramatic
price changes on any key item. Look for flaws in your ordering
strategy. Compare figures from one period to the next and over
the long term.
If you focus on sales and purchases, food cost percentage
surprises will be fewer and more positive.
Joe Dunbar Dunbar Associates 11350 Random Hills Road Suite 800 Fairfax,
VA 22030 800-949-3295 jdunbar401@aol.com http://foodcostcontrol.blogspot.
com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 27

SPA
How to Use Spa Industry Statistics as
a Business Tool
Why Spa Businesses Need Spa Industry Statistics
by Julie Garrow, Managing Director of Intelligent Spas
Like any other small, medium or large business, it is imperative
that analysis and planning activities be conducted to
minimise the risk of failure. One of the first questions to
ask yourself is “how is my business doing?” and this can easily be
answered by comparing your spa’s performance against industry
averages. The overall industry average for your country is a useful
guideline, however where the survey response rates are high
enough, industry averages may be broken down further to enable
more accurate analysis by calculating, for example, industry
averages for your particular type of spa and industry averages
for your spa’s specific location.
Unique and common facilities and service offerings
may also be measured and analysed to assist the planning
for the business’ future. Consider: At what point
does a facility or service offering change from a consumer
novelty to a consumer expectation? If for example,
a high proportion of spas offer a relaxation room, one
may assume as spa consumers become more experienced,
they may come to expect a relaxing area within a spa and be
disappointed if they do not have the opportunity to enjoy
that type of facility before and/or after their spa
treatment.
28 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SPA
Spa businesses that do not offer a relaxation area may decide
to redesign their space to incorporate a relaxation area, aiming to
increase and maintain competitiveness, retain existing clients and
attract new clients.
From the industry perspective, if a small proportion of spas
offer a facility or service, is it a unique differentiator which they
may promote to attract more visitors? For example, if only 7% of
spas offer a plunge pool, do they have a competitive advantage?
Could your spa business benefit from introducing new facilities
or services that are currently not very common in your market
place?
In order to attract visitors, it is critical spa businesses offer
facilities, treatments, services and products which consumers expect
and prefer. Study the industry benchmarks to fill in gaps in
the spa’s offerings and ensure spa menus, other printed collateral
and web sites effectively promote all of the offerings so the spa
does not fail a “paper” or “internet-based” evaluation by potential
clients.
Another purpose for industry research is to identify new industry
trends, which you may choose to, or not to, adopt, depending
on the business opportunity for your spa business. The trend
must comply with the vision, concept and brand image of your
spa, so for example, you may choose not to address the trend
of “more males visiting spas”, instead specialising in women’s issues
and related therapies to create a higher level of expertise and
reputation for such services, in comparison to your competitors
who may target both female and male clients.
“ …existing businesses can act to
retain existing clients by ensuring
service standards are high and their
offerings are effective and relevant to
their clients’ needs. ”
New spa developments may also use the industry statistics to
assist the concept design and planning of a new business. This is
often seen as a negative for existing survey participants, however
the availability of industry statistics may actually benefit existing
businesses as new entrants easily identify where the market is currently,
or potentially saturated, and choose a different concept
and path by offering alternative services. This also benefits the
new entrant by offering complementary services, rather than the
same services, and attempting to displace clients from existing
spas. Any new entrant into the market may be challenging, however
existing businesses can act to retain existing clients by ensuring
service standards are high and their offerings are effective and
relevant to their clients’ needs.
Why Suppliers, Financial Institutions, Associations, Tourism
Authorities and Other Related Organisations Need Spa Industry
Statistics
Over recent years, there has been a lot of hype about the
spa industry which has generally been positive for spa businesses
in terms of generating visits. However the downside of hype
without accurate facts is that suppliers, financial institutions, associations,
tourism authorities and related organisations cannot
support the industry effectively. Industry statistics give these related
organisations the necessary inputs for their own business
analysis and planning activities and it is very challenging for these
organisations to commit to the spa industry without supporting
information. For example:
Suppliers - design and develop relevant products and equipment to
support spa business;
Financial institutions - approve loans for new spa businesses or
expansion of existing spa businesses to realise business visions;
Associations - rally government and suppliers for industry incentives
and group discounts to minimise spa business costs; and
Tourism authorities - allocate funds for spa industry marketing and
awareness campaigns to increase spa visits.
The Connection Between Spas and Tourism
Domestic and international tourism statistics are included to
illustrate the volume of travellers and the incremental spa visits
which may be possible by effectively using relevant channels to
promote spa services and spa products.
Destination spas are close to tourists, given their integration
with accommodation facilities, and have a great opportunity to
maximise spa visits.
Day spas may also tap into this market segment through cooperative
marketing campaigns with nearby hotels (Source: Intelligent
Spas, Spa Integration for Hotels, Resorts, Serviced Apartments
and Similar Facilities).
Julie Garrow, Managing Director of Intelligent
Spas represented three of the big four
global tourism, leisure and hospitality consulting
firms in Australia and Singapore between
1992 and 2001 and draws on over seventeen
years research experience from both industry
and consulting perspectives.
Intelligent Spas is an independent research
company specializing in the spa industry.
Founded in Singapore in 2001, it has pioneered
spa industry research in the Asia Pacific region
and continues to publish a range of Spa Business
& Operations Manuals, Spa Consumer
Surveys and Spa Industry Surveys to assist the
development and growth of this niche industry. Intelligent Spas
provides research which businesses find logistically and financially
impossible to collect.
Independence Defined...
Intelligent Spas is unique as it offers a completely independent
view of the spa industry. All our research is self-funded and Intelligent
Spas:
1.
2.
3.
4.
●
●
●
●
Does not conduct consulting studies for individual
businesses;
Does not form alliances with third parties;
Does not have interests in other businesses; and
Is not influenced by members, committees or sponsors.
This independence policy ensures the confidentiality of all
individual survey responses submitted is maintained, and publications
are prepared without bias and for the benefit of all members
of the spa industry.
For more information, please visit www.intelligentspas.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 29

30 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 31

FINANCE & ACCOUNTING
32 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HUMAN RESOURCES
Bringing Out the Best in People [Part 1]
by Chris Longstreet, CHA
Recently, we moved our SHM office, and, during the process
I came across a book I read in college that I promised
I would never throw away or get rid of. The book is entitled
Bringing Out the Best in People:
How to Enjoy Helping Others Excel by Dr. Alan Loy Mc-
Ginnis.
“Have you ever wondered at the way certain people bring out
the best in others? They seem to know how to get an extra effort
from the people they lead. We have all known them – some are
teachers or heads of companies, others are baseball managers or
mothers. Frequently without good looks or extraordinary intelligence,
they seem to possess a knack for inspiring people. And
this remarkable skill at the art of motivation makes them highly
successful at almost everything they do.”
Look back over your career. Who motivated you? Who
brought out the best in you? Which managers, which leaders,
seemed to bring out the best in the people they served?
In his book, Dr. McGinnis outlines twelve rules for bringing
out the best in people. These principles can be applied to any
team you lead: the front desk, the sales department, housekeeping,
servers, the kitchen, or even the management team of your
hotel or restaurant.
These skills are valuable in creating a motivational environment
where your employees want to work and feel the can contribute
to the success of your organization.
In part one of this three-part article, we look at the first four
rules and how we can apply them to the environments in which
we work.
Rule 1 - Expect The Best From
the People You Lead
In the musical My Fair Lady, Eliza Doolittle
is transformed from an uneducated
woman to a sophisticated lady. One of the
famous lines of the play, Goethe makes
a bold statement about human nature:
“Treat a man as he appears to be and you
make him worse. But treat a man as if he
already were what he potentially could be,
and you make him what he should be.”
Do you expect the best from the people
you lead? Or do you settle for what they give you and find
other solutions to improving the service provided to your guests
and patrons?
In the hospitality classes I teach, we discuss motivational theories
and strategies. One theory, the Pygmalion Effect, states that
the expectations your employees have of themselves determines
how they will perform. If we expect great things as managers,
great things will happen. If we accept and expect average performance,
average performance is what we will get. By emphasizing
the positives and what employees can do, employees will
believe in themselves and perform at higher levels. To do this, we
must communicate our belief in their skills and abilities. Setting
high performance and quality standards and communicating to
your team so that they can achieve them will yield positive results.
Housekeepers will clean rooms to the cleanliness levels you set.
Servers will up-sell menu items because you set the standards
and expectations high. Positive expectations can yield positive results.
Unfortunately, when people become managers or leaders
within an organization, they immediately feel like a police officer
and must watch every employee move to make sure standards are
being met. This watchdog role is looking for failure and creates
an adversarial relationship between management and line employees.
Good managers, on the other hand, look for the strengths in
employees and discover ways to encourage the skills and abilities
of each person. If we expect good things from our employees, in
most cases they take great strides in meeting those expectations.
If we expect the worse, they will meet those expectations and
continue to disappoint us with their performance.
Rule 2 – Make a Thorough Study of the Other
Person’s Needs
One of the more enjoyable parts of teaching at the college level
is working with students and helping them discover what excites
them about the hospitality industry. When a student makes a true
connection with their passion for what they want to do, it is easy
to push them to succeed. Their interest level is higher when studying
as they develop a passion for what they are studying. The fear
of pleasing other people, like parents, disappears and the passion
for discovering success becomes so clearly apparent. Whether it
be working for a baseball park in the minor leagues, becoming a
leader in the housekeeping department, or working toward a vision
of owning a restaurant or club, discovering what a student
wants makes the educational experience far more motivating for
both the student and the instructor.
“ The fear of pleasing other people, like
parents, disappears and the passion for
discovering success becomes so clearly
apparent. ”
McGinnis says, “Too many leaders ignore this essential early
step.
They see motivation as mere hype – slapping people on the
back and giving rah-rah pep talks. But it is more than hype. A good
motivational plan must be as carefully fitted as a designer dress.
We must ask a lot of questions about where people have been
and where they are going, what they believe, what are their sore
spots, what they love and what they hate. In other words, we must
make an inquiry into people’s present need systems.”Motivation is
therefore situational. It is unique to each person. Sarah, a server,
has a different set of needs than Darren, the line cook. Tamyra,
the housekeeper, is motivated differently than Gerard, the maintenance
engineer. What motivates you is different than what motivates
the employees you lead or the person you report to.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 33

HUMAN RESOURCES
How do we study these needs in the work place? We talk
to our employees. We ask questions during performance reviews
and interviews that give us a clue as to what our employees feel,
believe, and value. We sit at breaks and listen. We ask questions.
We seek information. We talk and get to know our employees. We
have staff meetings where people have a chance to voice ideas
and opinions. By doing this, we can more clearly identify individual
needs and use them in creating a motivational environment
for them to work in. Motivation is more than hype – more than
just pulling a rabbit out of a hat
Rule 3 – Establish High Standards of Excellence
“So far,” says McGinnis, “I have been saying that the best way
to bring out the best in people is to treat them in a positive, encouraging
manner, capitalize on their gifts, and begin with their
present needs and desires. But that does not mean that the good
motivator is soft. To the contrary, most highly motivating leaders
are hard as nails on standards of excellence. They hold to
certain values tenaciously, and they set out to build a group of
like-minded persons who share those values.”
The best-run restaurants, the best-run hotels, the best-run
food service facilities allow for individuality in their teams while
enforcing certain standards. It is important that restaurants and
hotels set standards and enforce them.
While working for a family-style restaurant in college, I
worked for a company that had very few standards. Each manager
did what they thought was right. I worked hard to make sure
that the dining room was set the same way each night I closed so
the opening team would see the difference.
Rule 4 – Create An Environment Where Failure is
Not Fatal
People handle failure in different ways. Failure, in some cases, is
motivational and ignites a fire within to learn and not repeat mistakes.
Others, however, start with such great energy only to have
the motivational fire extinguished after one failure or miscue.
What we want in our organizations are people who, when they
stumble, pick themselves up, learn from their mistakes, and move
on to finishing the task at hand. If we as managers in the hospitality
industry can help our employees handle failure effectively,
we will create an environment that is motivating and encourages
high performance.
A student who worked at a theme park one summer told
me how one of the worst managers he worked for followed him
around and regularly pointed out all the faults in the performance
of his job duties. Many times he heard the phrase, “If you don’t
get it right, I’m firing you!”
Managers are faced with a unique challenge: creating high
expectations and expecting high performance
while still tolerating failure at times. Harshly criticizing a new
employee for not performing a task correctly will only create a
feeling of defeat and discouragement. Effective managers use
whatever tactics are necessary to help employees identify the failure,
what the cause is, learning from the mistake, and moving on
to a higher level of performance. At times, we may need to cheer
them on to try harder.
Other times we may have to simply push them back into a
position forcing them to start over and create a series of successes
that will instill confidence.
“ A chain of 14 restaurants
failed, in part, because
there were no standards
for managers to follow and
employees to work towards. ”
Employees thought I was making them do extra work. The
problem was that no other managers were setting the same standards
that I was using. Today, this company no longer exists. A
chain of 14 restaurants failed, in part, because there were no standards
for managers to follow and employees to work towards.
Employees like to have clear-cut objectives that are attainable.
We can’t as managers set out standards so high that our employees
can’t achieve them or are always falling short. People want
to have their skills and abilities challenged and tested – stretched,
so to speak – but they must have regular successes to feel that
their efforts are valued.
McGinnis concludes this rule by communicating an important
lesson: “In pressing for excellence, we must be careful to
have goals that are both challenging and realistic, and we must
devise a graded progression of objectives so that our people can
enjoy the regular feedback of success.”
Conclusion
Do you:
1. Expect the best from your employees and those you lead?
2. Understand the needs of your employees and use this
information to create an environment that builds their
motivation?
3. Establish standards of excellence that are attainable for your
employees and those you lead?
4. Create an environment where failure isn’t fatal?
Evaluate your own performance in these areas. Next week, we
will continue with the rules for bringing
out the best in people.
Chris Longstreet is President & CEO of the Society for Hospitality Management.
He also serves as a visiting instructor for the Hospitality & Tourism Management
Program at Grand Valley State University. For more information, visit the SHM
website at hospitalitysociety.org or contact Chris at clongstreet@hospitalitysociety.org
34 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 35

FINANCE & ACCOUNTING
The Politics of Revenue Management
No, it’s not the systems that are holding so many hotels back
from succeeding, but rather the people and their corporate poliby
Douglas Kennedy
How interesting it has been for seasoned hospitality executives
to witness firsthand the emergence of the profession
of revenue management, and simultaneously, the
significant improvements in revenue per available room our industry
has achieved these last 20 or so years. Yet as far as we
have come as an industry, most revenue-management visionaries
agree that we have so far actualized only a small percentage of
industry’s potential benefit. Despite an up market, there is still far
too much money being left on the table by hotels that have failed
to actualize their revenue optimization potential.
While it is true that overall most hotels do a good job at yielding
their transient market segments and are increasingly aware of
the costs of distribution according to channel, not enough are:
●
●
●
●
●
●
Applying revenue management principles to group bookings,
such as factoring-in the often-overlooked distribution costs
of this “channel.”
Integrating revenue management technology with CRM
processes and systems.
Using dynamic pricing for corporate and wholesale
channels.
Auditing actual room production midyear, versus annually,
and adjusting rates/terms accordingly for key accounts.
Employing channel conversion techniques to encourage
guests to book directly next time through less costly
channels.
Training reservations agents to understand and execute
pricing strategy and to maintain the various “fences” that
exist around rates without creating ill will.
In making the rounds on the conference circuit these days, it
seems to me there’s a huge discrepancy between the way revenue
management is practiced between hotels and hotel companies.
On one side of the equation, you have hotels that have embraced
revenue management as an integral part of their entire corporate
culture; besides having a director of revenue, you also have a general
manager, director of sales, and the even ownership/investment
stakeholders understanding that how fundamental revenue
management principles impact financial performance.
At the other extreme, you have other hotels and hotel companies
that still believe that revenue management is nothing more
the new title of their old reservations manager, who is now in
charge of managing electronic distribution channels since reservations
was outsourced. Why this discrepancy? How is it that
some company cultures have evolved while others have been
stuck in their past ways?
“…revenue management is
both an art and science, ”
It’s been said that revenue management is both an art and science,
but perhaps we should say revenue management is mostly
about political science. In today’s industry environment, most
financially successful hotels have the necessary technology to
forecast demand, manage their inventory, and adjust to changing
trends in the market as they are emerging. Those that don’t no
longer have an excuse, as there is a wide variety of supplier/partners
who are marketing systems of all levels of sophistication,
according to the property’s needs and budgetary constraints.
36 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

tics. It’s the director of sales who stands up at the end of the
revenue management meeting and says, “Yeah, but I still think
we should take them because it’s a sure thing,” after the transient
displacement report and banquet-room demand forecast both indicate
the dates are peak demand. It’s the general manager who
sits atop an org-chart where the revenue management is an assistant/supervisor
level staff member. It’s the vice president of
operations who still thinks that revenue management is a person
rather than a core hotel management function crossing all disciplines
within his or her company. It’s the owner/investor who
doesn’t see the need to pay for the competitive-set pricing reports
on the market these days and says “Why can’t they just check the
Web and call around themselves?”
To remove these barriers, we first of all need capable revenue
management professionals who possess the analytical skills necessary
to collect and evaluate myriad reports and data resources and
to make sound revenue management decisions, which are already
highly coveted skill sets in the labor market. But we also need revenue
management professionals who are able to bring more than
the numbers to the revenue meeting and can convincingly present
their paradigm and convince others of its validity.
So how can we help our revenue management professionals
prepare themselves for dealing with the political side of revenue
management? Here are some suggestions:
●
●
●
●
●
●
Make sure you have a reporting structure that gives your
director of revenue management (DORM) the necessary
authority to execute their strategies.
Avoid becoming “ethno-centric” regarding your company’s
revenue management’s philosophies.
Encourage your DORM to network with their colleagues at
conferences and meetings at the regional/destination level as
well as within the brand/company if applicable.
If necessary, encourage them to build their presentation
skills by attending organizations such as Toastmasters
International.
Purge your company culture of old-school bias towards
certain market segments or distribution channels; if there’s a
new way to make more GoPAR (Gross Operating Profit Per
Available Room) then be open to it.
Educate owners and investors, because the key to a functional
and healthy revenue management corporate culture is an
appreciation of the concepts at the ownership levels.
Finally, if you are looking to looking to help your DORM get
to the next level, you’ll definitely want to encourage join to participate
in HSMAI’s revenue management special interest group.
By attending this association’s annual strategy conference, (scheduled
this year on June 19 in Minneapolis), or by participating in
one of the regional workshops or Webinars to be presented by
HSMAI University, you’ll make sure they are exposed to the latest
suggestions and ideas of their piers. See www.revmanagement.
org for more details about this association and its events.
By supporting your DORM and giving them the tools they
need to succeed, you’ll not only by winning at the politics of Revenue
Management, but you’ll also make sure that your hotel has
the right numbers when the “results are in.”
Doug Kennedy is the owner of The Douglas Kennedy Company. He delivers keynote
addresses and conference presentations for lodging and tourism organizations,
and provides sales and training consulting services. For more information visit www.
douglaskennedy.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 37

HUMAN RESOURCES
Corporate Orientation Programs
Retaining Great People Begins Before Day One
by Denise Moretti
The Hamister Group Corporate success depends
upon having a tight group of people united by
the common goal of accomplishing great
things. The best way to accelerate the period
of time necessary for new co-workers to feel
a part of your team is to implement an effective
orientation program. You hired
these individuals because you thought
they would be great assets to your department
and a competitive advantage
to your company. So take the time to
develop an orientation program that
will allow both of you to begin your
new journey together on the right foot.
Here’s how:
Eight Keys to an Effective Orientation
Program :
1. Prepare. Have a designated person or
HR team that prepares all paperwork, handbooks,
workbooks, and minor details before
hand. This will ensure that you are organized and
consistent. Minor details may include: making sure
that office/desk areas are clean, supplies ready, computer
set-up, telephone programmed, name badge made, etc.
2. Provide an itinerary. Prepare an agenda from start to finish,
including meet and greets with other co-workers, informational
sessions with key players, etc.. By completing these
basic tasks BEFORE the first day you show new employees
that you are ready and eager for their arrival.
3. Get the word out. Send out an e-mail informing your
current co-workers who the new employees are, where they
are from, what position they will be assuming, as well as some
background information.
4. Details, Details, Details. Send essential information to
the new co-workers’ homes before the first day. Welcome
them to the company and provide them with details regarding
their orientation. Make them feel as comfortable as possible.
Inform them of simple things, such as: where to park, what
door to go in, whom to ask for when they arrive, what room
the orientation session is in, etc.. Little things like this lessen
first-day anxiety.
5. Mix it up. Have more than one “presenter.” There
is nothing worse than sitting in an orientation session for 8
hours straight with the same person: your audience will lose
interest and won’t retain information. Involve technology
and different modes of communication. For example, rotate
between videos, PowerPoint presentations, talking/conversation,
etc..
6. Avoid information overload. Spread the orientation program
out over a 2 to 3 day period, maybe even longer. Don’t
focus on every little detail, but provide general overviews; the
new co-worker will take in more specific information during
the on-the-job training process.
7. After the fact. Have something that new-hires can take
home and review. It should contain the majority of the
information conveyed during the orientation. This will allow
them to re-examine what they have learned and determine any
questions they might need to ask.
8. Evaluate. Have a feedback mechanism in place, such
as a written evaluation form, that the new co-worker can
complete. This tool will help you continually improve your
orientation program.
Development and implementation of an effective orientation
program is a challenge, but one that should be of high priority,
as well as a team effort. I pride myself in watching others succeed
because they were provided with the necessary tools and
resources. Do it right the first time by making new co-workers
feel welcome and prepared, even before their first day!
The Hamister Group, Inc. is a rapidly growing hotel management company. A leader
in assisted living and health care management for over 25 years, the company now
manages fi ve hotels in Tennessee and Kentucky.
3 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 3

SERVICE
The Hotel Butler
Recognizing the Value Butlers
Bring to the Bottom Line
by Prof. Steven Ferry
We all know the cliché, but what did the do that made
him so uncharacteristically the focus of attention? In
movies and board games, he generally is the one the
police want to question further. In the hotel environment, the
butler has turned out to be either a failed and somewhat embarrassing
experiment, or the ultimate offering in Guest Services that
helps keep high-rack occupancy rates at 100%.
Where the butler concept fails, it is because he (or she) is
cast in (frankly) degrading-to-the-profession roles such as ‘bath
butler,’ ‘fireplace butler, ‘technology butler,’ ‘baby butler’ (who
provides rocking chairs and watches children), ‘dog butler,’ ‘ski
butler,’ and ‘beach butler.’ The idea being, apparently, that anything
offering superior service in some small area is called ‘a butler’
in an effort to siphon some of the prestige of the profession.
At best, the idea is myopic, at worst, self-defeating.
40 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE
At least when the term valet was extended to ‘dumb valet,’
that furniture item upon which one lays out clothing for the following
day, there was no pretence that this was the real item. Fortunately
for the profession, the public were not fooled or taken
in by these ‘dumb butlers’ and the practice has faded relatively
rapidly-hopefully before it soured guests on the value of being
serviced by (real) butlers in hotels. And fortunately so for the
butlers working in top hotels around the world, who do justice to
the profession, and the hotel managements who have recognized
the value butlers bring to the bottom line and the repute of word
of mouth for their establishments.
In an industry that is completely premised on the idea of service,
and in which service is a key differentiator, it’s a no-brainer
to institute butler service. Butlers have always represented the
pinnacle in service quality. After the initial required training, the
running of a butler service is not much more expensive to provide
than regular service, yet it allows rack rates to be raised and
creates a loyal following of repeat visitors, as well as enhancing
word of mouth and thus new business that make the investment
most sound.
Instituting butler service can be done gradually, perhaps instituting
it on one floor, and at not such a great cost, especially
when considering the return on investment. Fifteen rooms can be
well serviced by four butlers on three shifts, for instance, with one
of them assigned as Head butler. If service is to be 24-hour, then
a fifth butler would be needed.
Assuming an owner or manager decides to institute butler
service, the next question is, ‘How?’
The first step is to bring on board the most service-minded
of your employees to undergo training. The second: Bring in one
of the handful of
butler trainers who
can train hotel
butlers (as distinct
from butlers in private
residence, as
the hotel environment
is very different
and requires
fewer and different
skills than the
traditional butler).
In putting together a training program, it is important to
know the four main elements that hotel butler trainees and hotel
butler programs need in order to succeed.
First of all, there are the mechanical actions, the skills that
butlers need, such as how to clean shoes, how to greet guests and
tour them around their suite, how to arrange events for their stay,
how to draw baths, pack suitcases, etc.
Then there is knowing and adopting as second nature the
psyche or mindset of the butler. In order to do something effectively
and with conviction, one has to be able to be the role that
one is playing fully. This is obvious when watching a great actor
in a movie. But it is also true in life, too. Unless a trainee butler
has the right demeanor, attitude and approach as a starting point,
he or she will never be able to carry off the role convincingly or
handle guests and even fellow staff with the aplomb that makes
butlers such quintessential service professionals.
This is why the training has to include the history, rationale,
characteristics and communication skills of the traditional butler,
and enough drilling-in of these elements so that when the novice
butler is faced with a tricky or embarrassing situation, he or she
is not left tongue-tied, upsetting guests, or proving that he is not
the smooth, low-key character that guests expect in their butlers.
When friendly American hospitality employees chatter endlessly
and over-familiarly with guests and follow mantras about always
greeting the guest by name at least three times within so many
minutes, they are presenting ingrained training patterns that do
not add up to the butler experience. This is not to say that the
butler is not friendly, but there are other ways of expressing it
than by well-worn phrases and compulsive chatter.
Thirdly, having covered the theory and done copious drills
on applying the skills in a classroom environment, the trainer
needs to move out with the butlers and expose them gradually to
guests in the actual areas they will be providing butler service. By
this is meant that trainees use each other and then senior staff as
guest guinea-pigs, and they then service known-to-be-easy guests,
and finally are allowed to service VIPs and known-to-be-difficult
guests. The trainer should correct them on an internship or
apprenticeship basis until the trainees can confidently do their
duties.
Finally, for training to be practical and workable, it needs to
tie the general actions of butling into the specific hotel environment
in which they are working. This means the trainer has to
work with hotel management and butler trainees to adapt existing
SOPs (standard operating procedures) and propose new ones
that align with existing SOPs.
It is workable to develop such SOPs during the early training
steps and then drill them and correct them as needed during the
apprenticeship period, fine-tuning against the hotel environment
until they are smooth and effective. The result is best compiled
into a butler manual that can be referred to as needed by the
butlers, and which can also be used to train more butlers. The
program will probably
“ …building a whole new hotel at $1.5
million per-room-cost just to be able
to expand on the butler service pilot
he had run.’’
expand based on the
successes of the initial
pilot. That has certainly
been the experience to
date-one owner even
building a whole new
hotel at $1.5 million
per-room-cost just to
be able to expand on
the butler service pilot
he had run.
It is also possible that there will be some attrition or turnover,
but to date, hotel butlers that have been trained as above
have proven happy enough with their situation to politely decline
the inevitable offers from guests to return home with them and
run their private households or yachts.
The end result of the whole program as outlined above is
generally employees with high morale who competently carry
out their duties, wowing guests and resulting, as stated before, in
higher-than-usual occupancy, a high rate of return visits, and the
opportunity to increase rack rates while enjoying stellar word of
mouth.
Perhaps it would be better to ask then, not what the butler
did, but what he (or she) could do for your hotel.
This article was originally published by hotelexecutive.com.
Professor Steven Ferry trains butlers in hotels, resorts, and private estates, and spa
butlers in spas. He is Chairman of the International Institute of Modern Butlers
(www.modernbutlers.com) and author of the best-selling industry texts, Hotel Butlers,
The Great Service Differentiators and Butlers and Household Managers, 21st Century
Professionals. He can be contacted at stevenferry@modernbutlers.com.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 41

RECIPE
Recipe
C H O S E N
TUNA PASTA CASSEROLE
This homely and comforting tuna casserole is a welcome addition
to any weeknight dinner. Round out this quick and easy dinner
with a tossed green salad.
Ingredients
1 1/2 cups wide egg noodles or pasta of your choice,
cooked, drained and kept warm
1 Tbs butter or margarine
1 Tbs all-purpose flour
1/8 tsp dried dill
1 Tsp chopped garlic
1/4 cup chopped onion
1 cup fresh cream
1/2 cup water
1 Tsp Knorr Concentrated Chicken Bouillon or
1 Knorr Chicken Cube
2 (6-oz.) cans tuna, drained
1/2 cup green peas
1 Tbs chopped pimiento
1/4 cup chopped, peeled canned tomatoes
1/3 cup crushed potato chips
2 Tbs grated parmesan cheese (optional)
1.
2.
3.
4.
1.
2.
3.
Procudure
Preheat oven to 400°F. Grease 1-quart casserole.
Melt butter in medium saucepan. Sauté garlic & onion, stir in
flour and dill. Gradually stir in water and Knorr Concentrated
Chicken bullion or the Knorr Chicken Cube, then the fresh
cream. Cook over Medium heat, stirring constantly, until
mixture is thickened. Stir In pasta , tuna, pimiento and
chopped peeled tomatoes. Spoon into prepare casserole dish.
Sprinkle with chips and the grated parmesan cheese.
Bake for 8 to 10 minutes or until chips are golden brown.
Season with and ground black pepper.
As another option the chips could be omitted and greeted
mozzarella cheese could be added instead.
For Freeze Ahead
Prepare as above; do not top with chips. Do not bake. Cover;
freeze for up to 2 weeks. Thaw overnight in refrigerator.
Uncover.
Preheat oven to 400°F.
Bake for 35 to 40 minutes. Sprinkle with chips. Bake for
additional 8 to 10 minutes or until chips are golden brown.
Season with salt and ground black pepper.
Recipe by Chef Aliessio Berenger
Unilever FoodSolutions, Best Buy Maldives Pvt Ltd
Servings: 4
Preparation time: 10 minutes
Cooking time: 20 minutes
42 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 43

SERVICE
Listen to What Your
Uniforms are Saying
by Eric Hahn
Ever had an employee show up for work in a dirty, wrinkled
or smelly uniform? Sure, haven’t we all? Any veteran of
the hospitality business has seen or been through this before.
We’ve all heard the same excuses, ‘I didn’t have time to wash
my uniform,’ or ‘It was the only shirt or apron I could find.’ If
image means everything, your servers and kitchen staff are the
front lines of your overall image.
We posed this question to a group of frequent restaurant
customers: ‘What does a dirty, wrinkled or smelly uniform on a
server or kitchen person mean to you when you go out to eat.’
Almost universally, they all said it means that the establishment
itself is likely to also be dirty, or that it shows a lack of care and
attention to detail. Further, most indicated that it would be an
additional factor as to whether they wanted to visit the restaurant
again.
A good three-dimensional uniform policy will help safeguard
your image:
The Stinky or Smelly Uniform: Showing up for work with
a clean, ironed uniform should be part of your employee policy.
A uniform service is often the best solution to this issue, but
for those who don’t use a uniform service, this rule should be
required among your staff. And by all means, perfume should always
be off limits! Perfume masks the senses and prevents your
customers from enjoying the value of their meal.
The Wrinkled Uniform: A wrinkled uniform represents
untidiness among your staff. The respondents in the survey we
conducted indicated that a wrinkled uniform reminded them of
someone who had just crawled out of bed. Consider a uniform
that is a polyester woven fabric that is easier to keep tidy.
The Dirty / Soiled Uniform: Sure, we all know this unpreventable
by the end of a shift. But at the beginning of a shift is
preventable. If your kitchen staff spends any time in the dining
room, make sure they change their aprons before they go in
front of your customers. Additionally, if they are cutting meat at
a buffet table, remind them that a bloody apron is unacceptable!
A solid uniform policy should be embedded with your hiring
and training policies. A uniform that looks neglected speaks
silently to your customers in the dining room about the person
wearing it. Unfortunately, the customers see a dirty, smelly, wrinkled
uniform as a larger part of your overall operation, and usually
incorporate that image into their overall experience at your
establishment. To the contrary, a clean uniform says the exact
opposite: neat and clean atmosphere, with tidy and respectful service.
Having a uniform policy is a disciplinary issue that speaks
volumes about the nature of your staff and your establishment.
It’s a policy that is relatively simple to enforce and maintain. Clean
uniforms mean a clean restaurant in the eyes of your customers
which is a wonderful reason for them to keep coming back.
Eric Hahn is the Founder and Research Developer for RestaurantEdge.com. Hahn is
a 25-year industry veteran with a diverse background in the restaurant business and
skilled research developer. RestaurantEdge.com. produces a free monthly newsletter
that provides insight to changes in the restaurant industry.
Service = Respect
by John Bowerman-Davies
Yes, I’m back to chatting with you about service in restaurants,
and I think that I have hit upon one of the key
reasons why service is soooooo bad. In too many cases
there’s no respect for the waitstaff from the owners and managers
of restaurants.
And all too often I hear restaurant owners describing their
staff as being complete idiots with negative intelligence. And I
don’t hear this in private - I hear it out loud in restaurants for
both the waitstaff and customers to hear. Now if I was one of
those so-called idiots, my mind would not be on table #33, but on
where I was going to apply for my next job. Plus the customers
start wondering whether or not they should be in this place.
Why can’t every hotel &
restaurant live by that standard?
One wonderful establishment where the above does not occur
is the Ritz-Carlton. The first thing that every employee sees
when they enter the hotel is a sign that reads: “WE ARE LADIES
AND GENTLEMEN, SERVING LADIES AND GENTLE-
MEN.” Why can’t every hotel and restaurant live by that standard?
By treating all their staff as real people, and by showing
them respect, the Ritz-Carlton elicits a much better feeling from
the management, staff, and most importantly, their clients!
Another wonderful local establishment that long ago realized
that the entire staff is important is the Rittenhouse Hotel. David
Benton, the General Manager, takes the traditional leadership
pyramid and turns it upside down (with David at the bottom). His
very correct reasoning is that he can only see/meet/greet a small
number of guests every day, but his staff (especially those on the
other end of the pyramid) will meet all the guests everyday! And
the guest’s impression of the establishment can be completely
changed by a meeting with any given member of the staff.
So why is it that restaurant owners spend buckets of money
designing great new looks, concocting fabulous menus, hiring the
best chefs in the universe (this week anyway), and then spend
minimal time and money on the waitstaff. Not too many restaurant
clients will meet the owner or the chef, but they will ALL
meet some of the waitstaff. Doesn’t it make sense to invest some
time, energy and money in these folks?
Is it difficult to train waitstaff? NO. All that is needed is motivation
(from the owner and the waitstaff) and a little respect!
JBD John Bowerman-Davies is with LACAS COFFEE CO and can be contacted
at jbdespresso@juno.com.
44 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 45

MISCELLANEOUS
There have been a slew of articles recently
about the crisis of Human Capital. Advisory
Boards, Associations, pundits all
decry the turnover figures within Hospitality
(50%), point to the changing and contracting
labor pool, note the Unions cranking up enlistment
activities, and government on the local,
state and national stage legislating “living” wage
and benefits.
Good Employee Retention Strategies
Can Break the Myth ... The Grass Is
Greener
by John R. Hendrie
46 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HUMAN RESOURCES
Much has been touted about Retention Strategies, Cost Containment
and Talent Management. Some companies are at the forefront
of change and enlightenment; most are not, accepting the
“revolving door” of staff as the cost of doing business. Will this
picture change? Probably not, for the subject has a redundancy
and a long history. When business is good and growth is booming,
few really ever take a long, strategic look. Turnover at an unearthly
rate takes place during upturn as well as downturn. Sadly,
it is part of our Hospitality psyche.
But, to affect change, one needs to consider three factors, which
should dictate a retention strategy:
The cost of Turnover
The Labor Pool realities
What your Brand represents
The Cost of Turnover:
Time is money, and your costs accelerate, based upon the level
of the open position and the size of the organization. Let’s just
start with the basics. For recruitment, there is the cost of advertising
to begin an applicant flow. The selection process includes
culling through applications, several “cuts” to decide who will
be interviewed, often two to four interviews for the hire decision,
processing time, new hire orientation, and then sufficient on
the job training (which is also down time for the trainer and the
operation). The higher up in the organization the vacancy is, the
greater the cost for the process. For the sake of this example, let’s
use $300 for entry level, $2,500 for Salaried/Middle Management,
and $10,000 for Senior/Executive Management. Do the math on
your own operation, appreciating that the above costing assumption
is very conservative. That is money walking out the door!
Labor Pool Realities:
Consider first the Generational Differences. There are the Matures
(1909-1945), who used to believe in “cradle to grave” employment,
now totally disillusioned. Then the Boomers (1946-
1964), beaten up by the marketplace, transitioned, downsized,
darkly skeptical. Next, the Generation X’ers (1965-1978), who
want a balance in their lives, crave good communications, and approach
work like 1099’ers. Lastly, there are the Millenials (1979-
1988), who want it their way, now. The “onion” layers are just
beginning, for a hard look at the further demographics show, for
the bulk of the Hospitality Workforce, a heavily female population,
mostly immigrant with different cultures and languages,
less educated, feeling quite disenfranchised. What a tough market
from which to draw!
What Your Brand Represents:
Well, we are in the Experience Era, and we know that our Guests
and patrons look for value, uniqueness, high level service, a quality
product and exceptional delivery. Our Brand is our story, and
we promote ourselves like crazy to entice that wary Consumer.
And, we depend upon our Ambassadors, our worthy staff, to
make the Experience memorable. They represent our interests
and dictate our success. But, wait a moment, there is a disconnect.
Fifty percent of our people are leaving, their departure is
costing us money, and the replacement effort is ever more challenging.
If this does not move Hospitality Businesses to establish
a forthright Retention Strategy for 2006 and beyond, we deserve
the reputations we invite and the devaluation of our product and
service. Most bemoan the obvious; few take the initiative. But,
for those who see the situation as critical, consider some of the
following components for a successful Retention Approach.
Retention Strategy:
“A fair days work…” This simple phrase has immense implications.
To perform, our employees need the tools, the direction,
the encouragement, and the environment in which to achieve.
1.
2.
Why are people leaving? Your Human Resources offices
should be doing Exit Interviews. The information gleaned
from these exercises often demonstrates problems and
reasons with an easy fix apparent.
What do your current employees feel about the organization?
Employee Surveys do surface information about the
organization and items which are actionable. Do not survey
if you are not prepared to address the issues.
3. Communication. Your workforce is diverse, and your
communication systems and mechanisms must recognize the
audience.
4.
5.
6.
Work environment. A quick look at your employee locker
room is often indicative the value you place on the staff.
Your employees want and deserve respect, involvement and
particularly leadership.
Training and Development. We must provide the necessary
tools to perform the current job and opportunity to improve
the skill set and ability to move onward in the organization.
“…for a fair days pay”.
Retention is impacted by reward, and this starts with a
meaningful compensation package, both wage/salary and
benefits. You get what you pay for! Additionally, there is a
requirement for recognizing and rewarding performance
excellence.
“ Why are people leaving?
Your Human Resources
offices should be doing
Exit Interviews. ”
Conclusion
This is not rocket science or even Best Practices — this is just
common sense. The answers have been around for generations,
however, the impetus, always hovering, was seldom grasped. Your
employees are just as discerning as your Guests. We have been
smacking crocodiles, and the swamp becomes deeper, murkier
and more deadly. The numbers do not lie; matter of fact, a good
Retention Strategy is more than supported by the money saved
on Turnover. We all tend to look over that fence, admire the
landscaping and the greener grass we assume is the better alternative.
Tend to your own yard properly, and you can put the neighborhood
to shame!
John Hendrie, is CEO of Hospitality Performance, Inc., a full-service hospitality
consulting company. With a strong background in Hospitality, Human Resources,
Organizational Effectiveness, and Communications, John has devoted his career to
establishing Standards of Excellence across varied businesses. For more information,
please visit www.hospitalityperformance.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 47

HUMAN RESOURCES
The Quest for Productivity
by Tony Eldred
How often do you come across the word ‘productivity’?
The word is used quite liberally in the present economic
environment, but I find that a surprising number of
managers and supervisors attending my training courses have
only a vague notion of what it means.
In Australia we are in the unfortunate position where we pay
staff for attendance; that is, we pay wages for the number of
hours the staff member is present, irrespective of the work done
during that time. If I asked you to design a remuneration system
to base our economy on, would you pay staff to attend? I hardly
think so — it’s really quite bizarre when you think about it.
Productivity can be expressed as a percentage. For example,
a productivity of 75% means that for each 8 hours paid for, there
are 6 hours of actual work performed. The percentage represents
the ratio of work performed against time present. Some of you
would be shocked to discover what your staff productivity really
is. Unfortunately, accurate figures are difficult to establish because
it is necessary for you to monitor all staff activity and log
the results using a stopwatch to work it out accurately.
Australian research tells us that the average productivity for
our industry is in the range of 45-55%. This may seem low, but
apart from the obvious time wasters such as social conversations,
unscheduled smoke breaks, astral travelling and the like, you have
to consider the nature of your trade. We tend to have concentrated
peaks of activity followed by quiet times during which there is
a reduced sense of urgency.
The financial implications of staff productivity are profound.
Let’s say you hire a kitchen hand for $10 per hour. By the time
you add the on-costs and other costs associated with employment
your kitchen hand costs you double the base rate — a total of $20
per hour, just to be there. If you roster him for an eight hour shift
“ A person who wants to do the job or who
has a talent for the kind of tasks required
will generally have a much higher rate of
productivity than one who does not. ”
and he’s 85% productive it will cost you $26 per hour to get real
work done; if he’s 50% productive the cost goes up to $40 per
hour; and so on — just to get basic work performed.
It is unrealistic to ever expect to achieve 100% productivity
from any staff, but 85% is possible and is a good target to aim
for. This gives the average business owner a potential for a 30%
increase in staff productivity across the board. If you have ever
thought you are understaffed, think about this: if you can gain an
extra 30% productivity, you gain the equivalent of one new staff
member for every three you’ve already got on the payroll.
The obvious question is: How do you lift your staff productivity?
The answer involves the use of a number of different
leadership skills; some of them advanced.
The first involves understanding the preliminary steps to the
recruitment and selection process. Before you advertise a position,
the responsibilities and duties within that position should be
carefully defined. This may involve you rationalising existing jobs
and reallocating duties to different people in order to efficiently
group appropriate tasks.
Next, you must analyse the time and motion aspect of the
position. Your procedures and the physical layout of your workplace
must be arranged to minimise wasted effort. Perhaps in
your work environment you have remote storerooms or other
necessary facilities which could be rearranged to waste less time?
Whenever you or your staff move from A to B it’s a dead economic
loss to your business. Eliminating unnecessary movement
increases productivity dramatically.
You can also enhance productivity by careful staff selection.
A person who wants to do the job or who has a talent for the kind
of tasks required will generally have a much higher rate of productivity
than one who does not. The extra time and cost taken
to attract and select high quality staff will be repaid many times in
terms of improved quality and efficiency.
Once you select staff you have to train them properly. Someone
said that the purpose of training is not simply to adorn the
mind, but to direct the will. Good training fosters and builds
positive attitudes and solid work ethics. Before you train a person
you should attempt to ascertain standard times for each task and
challenge the trainee to meet these times. The simple provision
of goals and targets goes a long way to increasing work output
— the average person likes to compete with themselves and with
others.
Finally, the standard of your supervision has a great bearing
on your ultimate productivity. If you understand the process of
motivation and can get staff to
want to perform for you, your
productivity will be far higher
than if you rely on authoritarian
discipline. All your staff need
to know your general business
plan and how you want them
to fit into the scheme of things.
They should be allocated responsibilities,
not tasks. If your
staff regularly have to come to
you or your supervisors and
ask: ‘What do you want me to do now?’, you should re-examine
the way you lead — they should know what is expected and how
long it should take, without having to ask. Every time they ask
they are fracturing their work flow as well as yours.
An amusing aspect to the whole subject of productivity is
that I keep seeing business owners who staff their operations
with what we call warm bodies; i.e, those who spend little time
recruiting, those who pay the low wages and provide little or no
training. They think they’re saving money, but they often have the
highest labour costs — the result of poor productivity.
Tony Eldred is the Managing Director of hospitality management consultants Eldred
Hospitality Pte. Ltd. For more information visit www.eldtrain.com.au or email
Tony directly at teldred@eldtrain.com.au
48 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 49

0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SALES & MARKETING
Build Strong, Sustained Customer
Relationships with V.I.A.G.R.A.
by Terry Wisner
The bonds that tie long lasting customer relationships are
very important in today’s world. It is said that the average
person has 50,000 thoughts go through their mind daily.
As a sales person and supplier, you want a few of those to be
about you. More importantly, you want those thoughts to be positive.
●
●
●
If you maintain strong customer relationships, you will;
Gain more business and make more money
Be respected and people will refer you
Enjoy your work (and personal) life
Building strong customer relations is easy. First, you need
to have a high level of self-esteem and truly want to satisfy your
customers. Then all you need to do is follow the six V.I.A.G.R.A.
steps to long lasting customer relations.
V- VALUE THEM - Sincerely value them and their business.
The most important thing is to show you care about them and
their business. When you see them, always offer a “good” handshake.
Always use their name and show genuine interest in them.
It should go without saying, but a smile on your face will go a
long way. As Groucho Marx said about acting, sincerity is important
to sales; “once you can fake that, you’ve got it made.”
I- INTEGRITY IS PARAMOUNT - Always do what you
commit to do. Follow through with your commitments and if
you cannot deliver, then let them know. If something goes wrong
with their order, make sure they hear it from you. Remember, if
you always do as you promise, your customer will trust you, and
trust is the foundation for solid customer relations.
with a little humor. Recognize important accomplishments they
have made. Also sharing important personal things about you will
help develop relationships, but don’t forget the 80/20 rule.
A- AMELIORATE THEIR LIVES - To ameliorate means
to improve or make better. Everything you do for your customer
should improve their business or personal life. This is one of
the biggest reasons successful sales people site as to why they
enjoy being a sales person. As the old saying goes; sow so shall
ye reap.
If you fail to maintain strong customer relationships, you will:
● Lose business and money
●
●
Not be respected and get few (if any) referrals
Experience a miserable personal and professional life
So share V.I.A.G.R.A. with your friends and help them build
strong, sustained customer relationships. Terry Wisner, of Partnering
To Success, says; “Everyone wants to add value to their
selling proposition,” following these six steps on a consistent basis,
will result in higher levels of customer satisfaction and loyalty.
Terry delivers keynote speeches and seminars, like “Be A Customer
Service Star” and other teambuilding, sales, and leadership
topics.
“ Ask plenty of
questions…”
A- ASSESS NEEDS - Ask plenty of questions…then listen.
The old 80/20 rule fits well in the selling transaction. You should
spend 80% of the time talking and 20% of your time listening.
Truth be known, many sales reps exhibit just the opposite, they
talk 80% of the time. It is important to note that customers
are often, what I like to call, “informationally challenged.”
Therefore, the rep must ask questions to elicit vital information
from the client in an effort to understand the need
behind the need.
G- GIVE MORE - One of the biggest complaints customers
site as to why they left a particular supplier is that they did not
get what they expected. Disney World is the best example of exceeding
customer expectations. Delight your customers by giving
them what they want, and more. Now that doesn’t mean giving
away the store. Send them an email or better yet a hand written
thank you note. Call them to see how pleased they are with their
decision. Treat them the way you like to be treated or better yet,
like Dr. Tony Alessandra says; “treat them the way they want to
be treated.”
R- RELATE TO THEM - One of the best ways to sustain
great customer relationships is to get to know them on a personal
basis. Remember their birth date and send them a card or give
them a call. Whenever you transact with them, lighten things up
If you want your Sales and/ or Service team members to delight their customers, call
Terry. If you want to increase customer retention, call Terry. If you want to attract
new customers, call Terry Wisner, the “Partnering Pro.” Your team members will
learn how to delight your customers every time and how to encourage each other to
do the same. Visit www.p2s.us or contact us at terry@p2s.us and let’s discuss the
possibilities.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1

TRAINING
Don’t Let Your
Systems Drive Your
Customers Crazy!
by Ron Kaufman
52 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

SERVICE
Customers are often left frustrated by a company’s smoothrunning
and standardized, but inflexible policies.
Does your company “run like clockwork?” Are your
accountants pleased with how smoothly everything moves along?
Are your managers content with how customers are managed
throughout your system?
If so, watch out! Your present methods may include policies
and procedures that are convenient for the company, but utterly
frustrating for your customers.
Customers discover these land-mines of dissatisfaction in
your company almost by accident. They usually stumble upon
them in the course of normal business. Dedicated customers will
speak up and complain. Others will just go away.
I am one customer who makes a point of letting companies
know when their polices are frustrating, preposterous or just
plain customer-unfriendly. Unfortunately, many organizations
have built up a thick layer of resistance and defensiveness towards
such comments. They have stopped listening to the voice
of the customer...especially the customer with a complaint.
In recent weeks I have had a series of actual experiences bizarre
enough to make me wonder whether anyone is listening at
all! I think you’ll find them both funny and disturbing.
My protests were to no avail. She checked with her supervisor,
who concurred. “I’m sorry, but that’s our policy,” she said
without much concern.
I surrendered to her insistence, listened as she cancelled my
Hilton Honors Club reservation, declined to have her book me
back into the same hotel at the higher conference rate, and hung
up the phone in disbelief.
I called right back. I reached a different reservations clerk
and made another reservation. I used my frequent flyer award
coupon and the new Hilton Honors Club membership number
I had received in the previous phone call. This time I kept my
mouth shut about attending any conference!
I paid just US$85 when I went to Los Angeles. I enjoyed the
Hilton Towers room and enjoyed the complimentary fruit basket
upon arrival. No thanks to Hilton’s absurd policy and customer
unfriendly procedures, though.
Somewhere deep inside the marketing department of Hilton
Hotels, yield management professionals have carefully calculated
the maximum rate they can, and will, charge participants at an
international conference.
Meanwhile conference participants are also thinkers, communicators
and frequent flyers... real-live customers! Hilton Hotels,
are you listening?
“The Conference Rate” at Hilton Hotel in Los
Angeles:
I was making arrangements to attend the American Society of
Training and Development Annual Conference in Los Angeles.
As a frequent flyer, I have many award coupons offering a 50 per
cent discount from usual hotel rates.
I called Hilton Hotels in California to make my reservations.
The reservations clerk was infinitely helpful. First, she took my
name, then my contact numbers. She confirmed the dates, my
room preference and credit card number.
She asked if I was a Hilton Honors Club member, which I
was not. She signed me up on the spot and then remarked: “Now
that you are a Hilton Honors Club member, I can offer you an
even lower rate, and an upgraded Towers room on a higher floor.
A fruit basket will be waiting for you upon arrival.” I was delighted.
And my special discount rate was just US$85 per night.
In signing off, I said: “Thank you for your help. I am looking
forward to staying at the Hilton during the conference.” “The
conference?”, she shot back
quickly. “What conference are
you attending?”
I replied that I was attending
the American Society for
Training and Development’s
50th Annual Conference at Disneyland.
She said quickly: “Mr
Kaufman, if you are attending
a conference during your stay,
you must use our special conference
rate of US$112.”
I laughed at her proposal and stated that I was happy with
the special rate she had already confirmed on my behalf. “Oh no,”
she repeated. “If you are coming for a conference, you must use
the special conference rate. We have a block of rooms set aside
for conference participants on a lower floor. These rooms are
specially reserved for the people who are attending the conference.”
“Frequent Flyer Coupons” with Hertz Rent-A-Car in
San Francisco.
My next step was to make a three-day car reservation for a preconference
visit to San Francisco. I called Hertz, where I am a
member of the “Hertz Number One Club” for frequent travellers.
I planned to use an award coupon for one free day rental
from American Airlines and additional award coupons for two
more free days from United Airlines.
The telephone reservation officer gave impeccable service.
She greeted me pleasantly, acknowledged me as a member of the
Number One Club, confirmed my dates, flights, pick-up location
and my choice of automobile.
Then she asked me what time I would be returning the car
after the first day of rental. “I want the car for all three days,” I
replied. “You can’t keep the same car for all three days,” she asserted.
“After the first day you have to bring the car back and pick
up a different car for the next two days. The first day is paid for
with your American Airlines coupon, but the next two days are
with your United coupons.”
“ She greeted me pleasantly, acknowledged
me as a member of the Number One Club,
confirmed my dates, flights, pick-up location
and my choice of automobile. ”
I was sceptical. “But I am the same person, with the same
Hertz Number One Club member. I am the rightful owner of
all the awards coupons, and I want a Hertz automobile for three
consecutive days. Surely you will let me keep the same car, and
avoid having to come back to the airport in the middle of my Bay
Area vacation.”
“That’s not the way our system works here, Mr Kaufman,”
she replied.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 53

SERVICE
“But it should work that way, don’t you agree?” I asked, appealing
to her sense of logic, concern and elementary customer
care.
“I don’t make the rules here, Mr Kaufman. Just follow them.
What time will you be returning the car after the first day?”
Somewhere deep inside the heart of Hertz, a group of senior
accountants live comfortably with their precise policy of “one
airline, one coupon, one car, no exceptions”. But somewhere
closer to this customer’s heart lies, frustration, inconvenience,
and incredible disbelief.
But I’m not the type of customer who gives up in these situations.
When my Hertz reservation commenced in May, I took
along a copy of this article to San Francisco and had a long chat
with the most senior manager I could find at the airport. I ended
up keeping the same car for three days. Hertz Rent-A-Car was
listening.
“You Don’t Get Juice” with a Broiler Meal at Burger
King:
You don’t have to call a reservations
officer to experience procedural
insanity instead of convenience
and customer care. Before going vegetarian, I used to
visit Burger King for their BK Broiler meal, a fast food lunch of
broiled chicken sandwich and french fries.
But instead of taking the large Coca-Cola included in the
package, I always asked for a small glass of orange juice instead.
The counter staff would freeze up in uncertainty and refer my
request to the floor manager.
One young manager was particularly memorable. “I’m sorry,
sir,” he told me. “You can’t have the orange juice with the BK
Broiler Meal.”
“Oh, sure I can,” I replied, “I do it all the time at the other
Burger Kings. I know there is a 65-cent price difference and I am
happy to pay the difference.”
“That’s not the problem,” he said with a touch of annoyance.
“There’s no key here on my computer to make the substitution,
so I can’t let you do it.”
“Hey, sometimes you just have to break the rules,” I said, reminding
him of Burger King’s own multi-million dollar advertising
campaign. “I’ll take the BK Broiler meal, with orange juice.”
He realized I was not going to take “No” for an answer and
he could not very well go against Burger King’s well-known advertising
promise. “I’ll do it for you just this once, as an exception,”
he said curtly.
“Oh c’mon, you can do it for me anytime,” I replied.
“No,” he stated, looking at me straight in the eye. “I will do it
for you this once, but I won’t do it again the next time.”
“Wait a minute,” I asked gamely. “You are about to make me
a happy customer. Do you really mean you wouldn’t make me a
happy customer again?”
“I will do it for you this once,” he repeated flatly. When I
received my meal, with orange juice, I gave the manager a genuine
smile and said, “See you again next time.”
He quietly replied, just below his breath but loud enough for
me to hear, “No, I don’t want to see you again.”
Somewhere deep inside Burger King, computer programmers
design point of purchase terminals to carefully limit the
choices and options of customers around the world.
Accountants are happy. The daily sales reports are neat and
accurate and clean. But at the counter of the restaurants, face to
face between customers and staff, both parties experience frustration.
The advertising slogan says “Sometimes you’ve just got to
break the rules”, but the restaurant manager cannot.
After this article first came out, Burger King called and invited
me to lunch. They asked me to tell my story. They asked me
for suggestions.
The following week I returned to the same outlet seeking
a BK Broiler Meal, with small orange juice. The counter staff
smiled brightly and keyed in my order.
“How did you do that!?” I asked in a state of pleased amazement.
“Oh, now it’s easy,” she replied. “Last week they gave us a
new key on the computer to make simple menu changes.”
Congratulations, Burger King. You are listening!
Now each of
these stories is completely
true, but they
are only valuable if
they inspire you to
listen more closely to your customers and more carefully examine
your policies and procedures.
“ How can we serve you better?… ”
And remember, although certain polices may cause customers
to fume in frustration, the rest of your system may quietly
conspire to keep the complaining customers’ voice at bay.
Ask your customers:
“How can we serve you better? Is there anything that frustrates
you most about the way we provide our service? Is there anything
you would like us to do more of? less of? start doing? stop doing?
What do other companies do for you that we don’t do here?”
Ask your staff:
“What do our customers ask for that frustrates you the most? Are
there any special customer requests that really drive you crazy? Is
there anything they ask for that is against our company policy?
Is it the customer that makes your staff so mad, or are they driven
to distress by limitations in your systems, policies and procedures?
Make special requests:
You can learn how to improve your own systems by testing the
flexibility of others.Whenever you dine, travel, shop, purchase or
rent, make requests that are slightly different from the usual routine,
ask for specials “not on the menu”.
Watch carefully how each establishment responds to your requests.
Are they fast, flexible and friendly? What is it about their
policy and systems that allows them to respond?
Finally, ask yourself: Are you willing to make the change?
Your accountant is comfortable. Your managers are content. But
who are you in business for?
Your accounting department will still be with you tomorrow.
Will your customers be with you, too?
Ron Kaufman is an internationally acclaimed innovator and motivator for partnerships
and quality service. He is the author of the bestselling “UP Your Service!”
books and the FREE monthly newsletter “UP Your Service!”. For more information
and a sample newsletter, visit www.RonKaufman.com
54 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 55

FOOD & BEVERAGE
The Importance of Avoiding
Cross-Contamination
by Rich Kussin & Lynn Helmers,
Procter & Gamble Foodservice
Though invisible to the human eye, bacteria are omni-present
in kitchens – both at home and in restaurants. They
can affect food taste, but more importantly they can also
impact the safety of the food we eat. Many bacteria live and can
grow very rapidly in food particles, especially in moist foods with
temperatures between 41 and 140 degrees Fahrenheit. Left untreated,
they can cause salmonella or E coli food poisoning and
other serious illnesses.
The best defense against the dangers of bacteria is a clean
kitchen. And while it’s extremely difficult to make cooking and
food preparation surfaces and utensils fully bacteria-free, there
are many steps foodservice professionals can and should take
to both reduce the amount of bacteria present, and lower the
likelihood of cross-contamination of bacteria between food ingredients
and prepared dishes.
First Line of Defense
Hands are one of the major causes of cross-contamination. Bacteria
that can cause illness are often present on hands, so it is
important to wash hands frequently throughout the day. Washing
hands before doing dishes helps to ensure that bacteria living
on hands are not transferred into the dish water. And, washing
hands after doing each task associated with food preparation
helps to minimize the transfer of bacteria from raw to cooked
foods, cold foods to hot and many more.
Hot and Cold
At the top of the list is making certain cooked foods and raw
foods remain separated. This means using different cutting
boards and utensils for cooked and uncooked foods during the
preparation process, and making sure to wipe prep surfaces clean
after every use.
Cleaning Sink - Be certain the water in the cleaning sink is
hot, ideally between 120 and 140 degrees Fahrenheit. Hot water
helps to break up baked-on, caked-on food particles and to melt
dried grease. This temperature is also necessary to activate the
grease cutting and cleaning chemicals formulated into dish detergents.
But chemicals added to the cleaning sink need to be strong
enough to get the job done, too. Detergents such as the professional
grade Dawn® Manual Pot and Pan Detergent include
exclusive surfactant and solvent systems that work together to
breakdown tough grease and clean more effectively. Dawn, for
instance, delivers longer-lasting suds. And since suds are the signal
of when it’s time to switch over the dish water in the cleaning
sink, long-lasting suds mean less sink-turnover and more efficient
dishwashing.
In this step of dishwashing, a brush or cloth may be used to
scrub food surfaces and completely remove all soils. However,
the brush or cloth must be cleaned between uses to clear food
particles that may become trapped in the bristles or fibers which
can cross-contaminate the next batch
of dishes.
Proper Storage
It is equally important to store foods properly, both in
terms of temperature and containers. Foods that are
meant to remain cold should be stored at temperatures
under 41 degrees Fahrenheit. Foods meant to be hot
should be held at temperatures above
140 degrees Fahrenheit. And all foods must be stored in foodgrade
packages, wrappings and containers.
Cleansing and Sanitation
The best method for cleansing and sanitization is a three-step
process. In restaurants, this is completed in a three-compartment
sink – in which one sink is dedicated to each step. And
while some products claim to clean and sanitize all in
one step, contentious food service pros continue
to stress the importance of separately performing
each step of the three-step process.
‘‘ …all foods must be stored
in food-grade packages,
wrappings and containers. ”
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

FOOD & BEVERAGE
Rinsing Sink - Though the rinsing process is perhaps the
most intuitive, there are three techniques often used in restaurant
kitchens to ensure all dish detergent has been removed from food
surfaces and items are rinsed thoroughly. The first is to rinse the
food surfaces under running water. The second is to dip the surface
in and out of rinse water in the sink compartment. The third
is to soak the clean dishes in a sink compartment filled with clean
rinse water. Whatever option is used, it is imperative to change
the rinse water as soon as soap begins to rise to the rinse water’s
surface.
Sanitization Sink - Sanitization is the crucial third and final
step to further reduce bacteria and other microorganisms that
may be remaining on the already washed and rinsed food surfaces
including pots, pans and cooking utensils.
“ Drying a sanitized surface
with a towel can start the
cross-contaminate process
all over again,…’’
There are two common types of sanitizers: chlorine and
quaternary. Because it is a common household product, chlorine
bleach can be used for cleaning in the home. But many food
service professionals do not find chlorine stable enough for use
in a professional setting. Food particles tend to break down the
chlorine after only a few uses, requiring the sanitizing sink to be
changed over more frequently. And, without the benefit of bubbles
as an indicator – as in the cleaning sink – it is not as easy to
tell when it’s time for a sanitizing sink to be changed over.
One of the key advantages of quats is their stability. Free
chlorine is not stable in solutions, so it deactivates over time. The
process is accelerated in higher temperature solutions, in the presence
of food residues, or in lower pH solutions. Thus, many
operators choose quaternary ammonium sanitizers to maximize
the effective life of their sanitizer solution and reduce concerns
of deactivation. Whichever sanitizer is used, it is important to follow
the instructions on the packaging to ensure correct amounts
are mixed with the sink water. Too little will not effectively get the
job done, and too much will leave a film on the food surface and
will require additional rinsing, which can remove the sanitizer and
negate its ability to remove bacteria from the surface.
And finally, let all clean cookware and utensils air-dry. Drying
a sanitized surface with a towel can start the cross-contaminate
process all over again, since towels can contain tiny particles of
food and bacteria. Foods provide a warm, moist environment
where bacteria can thrive. Ingredients such as meat, fish, dairy
products, eggs, cooked rice and cut melons are a ready-made incubator,
and bacteria seem to know just how to use them. Though
it’s impossible to rid the kitchen of all bacteria, the suggestions
included here will help keep food preparation and cooking surfaces
-- as well as kitchen tools -- clean and sanitary. Applying
these tips judiciously in food preparation environments will not
only reduce the amount of bacteria and keep foods tasting great,
they will also help provide a safe dining experience for guests by
protecting against the dangers of bacterial infection and crosscontamination
in the kitchen.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 57

SERVICE
The Dangers of Being a Host
A
recent dining experience of mine might be of interest to
some of you. My girlfriend and I go to a particular restaurant
at least once a week. As people have a habit of doing,
we had discovered a place that impressed us, and we’d fallen into
a pattern of regular patronage. We knew what we were going to
get; there were never any surprises just good food and informed,
friendly service.
The food is a blend of traditional Japanese artistry and local
ingredients. Always very fresh, always presented superbly, and
good value. The ambiance is modern, airy, chic. We bring the tone
of the place down by coming-in dressed in tracksuits after playing
sport in the evening.
I’d never had any disappointments eating there, so when a
group of my friends prevailed on me for a suggestion for a good
night out, I broke my usual golden rule and extolled it’s virtues. I
should have known better.
If a hospitality consultant gives a restaurant recommendation,
it is taken as gospel and creates very high expectations. I’ve
found that very few restaurants are consistent enough in their
performance for me to feel totally confident in their delivery. I
might go there myself, but I don’t usually recommend them to
others.
This particular night everything conspired against me. Sadly,
I was there as the host, cringing in excruciating embarrassment as
a performance worthy of Basil Fawlty unfolded around me.
We arrived at about 8.00pm, and were seated and offered
a drink. I noticed that there were less front of house staff than
“ `Bring me the owner’s head on
a plate!’, I seethed inside, smiling
through clenched teeth. ”
normal and that the tables were filling-up fast. The staff were
starting to move rapidly and gesticulate in that urgent manner
that denotes a foodservice system that is beginning to unravel at
the seams.
We ordered several large platters of sushi and sashimi. My
guests commenced a lively conversation which was punctuated
by the waiter returning at regular intervals to take orders for more
drinks. My friends were not being bashful with the alcohol, and
I’d foolishly suggested that Tadcaster Porter (a fairly potent stout)
went particularly well with sushi. They accepted this recommendation
with gusto and bounced into it.
Out of the corner of my eye I could see the restaurant owner
and the waiters going into little huddles and conversing in an animated
manner. What was happening? I was beginning to become
concerned we had been there nearly 45 minutes, we’d had about
six large glasses of stout each, and no food in sight. I called the
waiter.
“I’m terribly sorry, Mr Eldred. We have twice the number of
customers we usually get on a Thursday night, and every table has
by Tony Eldred
ordered sushi. There will be a delay.” I confirmed this myself by
checking-out the sushi chef — this `sensitive artiste’ was resisting
all efforts to increase his productivity and was hiding behind a
decidedly hostile expression and a malevolent looking cleaver.
“I thought you said this was a good restaurant, Eldred. I’m
starving! Where’s the food?” It began good naturedly and slowly
rose to a venomous crescendo. An hour had passed; still no sushi.
I wanted to run away. It was time for action. I did the only thing
that seemed sensible at the time: I ordered sake for myself and
drank it. Then I ordered another.
The waiter finally approached the table after an hour and
twenty minutes and deposited three small plates of sushi, each
containing five pieces, on our table. You could feel the wave of
disappointment. “That’s not what we ordered. Where’s the sashimi?
This won’t feed six people,” said one guest. “Eldred, this is
ridiculous, what kind of restaurant have you brought us to? I
thought you were supposed to be the expert.”
Six stouts and two sakes can have different effects on different
people. I was half pissed and furious. Out of the hundred or
so times I had visited the place, why had they chosen to screw up
on the occasion I had brought guests? Why me Lord? . . . I called
the waiter.
He wasn’t having a good night either, and was obviously fedup
with dealing with irate customers. His response to my assertion
that we were not happy brought the full, shrill, bitchy, handson-hips
routine: “What are you complaining about? We’ve given
you something to eat! I wrote the right order on the docket, it’s
not my fault.”
`Bring me the owner’s head on a plate!’, I seethed
inside, smiling through clenched teeth. I stood-up
and went to confront the great man himself. He was
having a bad night too. Stifling the intense urge to
commit a violent crime of passion, I approached him
and told him of my disappointment. “What can I
do?” he replied with a shrug more reminiscent of Tel
Aviv than Tokyo.
Eventually we ordered something they could supply and we
all got fed after two hours waiting. The crowd died down, the sushi
chef became less menacing and the owner regained his composure.
He was most apologetic. He even sent us a complimentary
bottle of wine. Nice one — more alcohol — that’s just what
I felt we needed. My friends were already primed to the point
where they were drooling and talking shorthand.
Despite the owner’s attempt at conciliation, they were so unimpressed
with the place they elected to leave a ten cent tip after
a deliberately loud debate.
I still get rubbished about that night, and I’ve had reservations
about going there ever since. I know that I’m being unreasonable;
one in a hundred isn’t a bad screw-up ratio, but now I’ve
got this subconscious mental association linking the restaurant
with pain and social humiliation.
Tony Eldred is the Managing Director of hospitality management consultants Eldred
Hospitality Pte. Ltd. For more information visit www.eldtrain.com.au or email
Tony directly at teldred@eldtrain.com.au!
58 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 59

MISCELLANEOUS
The Art & Science Of Hospitality
by Keith Kefgen
To be successful, today’s hospitality executive must be a service
fanatic, marketing guru, Wall Street analyst, real estate
appraiser and a first-rate coach.
In the literary masterpiece, The Bhagavad-Gita , it says,
“Through selfless service, you will always be fruitful and find
the fulfillment of your desire”. Service is the essence of the
hospitality industry, whether you are a waiter or a Chief Executive
Officer. Unfortunately, economic and geo-political
circumstances have made it more difficult to deliver
world-class service and business profitability. To be successful,
today’s hospitality executive must be a service
fanatic, marketing guru, Wall Street analyst, real estate
appraiser and a first-rate coach.
Take the typical day in the life of Terrance
Lanni, CEO of MGM/Mirage. He wakes up to
a conference call with Wall Street analysts
reviewing financial forecasts and earnings
estimates. Soon after, he attends a meeting
to evaluate a new advertising and
casino marketing campaign. He then
answers mail, which includes guest
comments from some of the twenty
thousand people who visit his casinos
every day. He then chairs a meeting
of his executive team to articulate the
company strategy. He then reviews
the construction plans for an expansion
of the MGM, and no day would
be complete without talking to Kirk Kirkorian,
the billionaire investor and largest company shareholder.
Besides Lanni, when I think of the premier leaders in the
hospitality industry a number of names come to mind, Steve Bollenbach,
Isadore Sharp, Barry Sternlicht, Bill Marriott, Edouard
Ettedgui, Jonathan Tisch and Steve Wynn. Each has a unique
style that makes them successful. For example, Bollenbach is
known for his strategic and financial acumen, while Steve Wynn
is recognized as a creative genius. Ettedgui is renowned for his
passion for quality and his international savoir-faire, while Tisch
is known as a great spokesman and political powerhouse. Sternlicht
and Sharp are both known as communicators, Sternlicht with
Wall Street and Sharp with employees and guests. Marriott, on
the other hand, has built a conglomerate based on systems and
market segmentation. Mix these attributes with an obsession for
service and you have a set of skills that is difficult to find in any
industry.
Strategic Savvy
Bollenbach, the CEO at Hilton Hotels has earned a reputation as
a savvy financial executive and a strategic thinker. While at Marriott
Hotels, he engineered the split of the company into Marriott
International and Host Marriott. In one strategic move he separated
Marriott’s management business and its real estate holdings.
He created a win/win proposition for management and investors.
At Hilton he has crafted a simple strategy based on four “value
drivers” that every constituency believes in and has culminated in
the merger with Hilton International.
In many C-Level searches, strategic thinking has been a priority.
For example, Arlington Hospitality engaged me to find a new
CEO following a proxy battle. The direction of the company and
the strategic plan were at the heart of the conflict. As part of the
interviewing process we made candidates draft a “strategic white
paper” articulating their opinions regarding the future direction
of the company. It became a distinguishing feature for the winning
candidate. Other candidates who “presented” well did not
have the same intellectual focus or vision for the company in their
white paper. Many other candidates were discounted because they
appeared to represent the “status quo” and did not appear to be
progressive thinkers.
International Savvy
Like many other industries, hospitality is truly global. Leaders
must understand business, political and social issues in every part
of the world. Edouard Ettedgui, CEO of Mandarin Oriental Hotel
Group epitomizes the international leader. Schooled in Paris,
he has managed businesses in Morocco, Zambia, Zimbabwe,
Peru, London and Hong Kong. His global experiences are helping
Mandarin expand faster than any other luxury hotel brand
with development projects in New York, DC, Boston and Tokyo.
The complexity of those development projects made very few
companies suitable as an operating partner.
0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

MISCELLANEOUS
Balancing Profits & Guest Satisfaction
Bill Marriott, CEO of Marriott International has been adept
at one of the greatest balancing acts in the industry. Marriott’s
business interests involve every market segment of the hospitality
industry. Ritz-Carlton in the luxury segment, Marriott in
full-service, Courtyard in mid-rate, Residence in extended stay,
timeshare, food service, senior living and so forth. Furthermore,
Marriott has accomplished his success by having the finest systems
in the business. When you hear that Marriott “does it by the
book” it is the real deal.
Communication Savvy
Barry Sternlicht, former CEO at Starwood Hotels was the consummate
communicator. His reputation on Wall Street was that
he was the most accessible CEO in the business. His financial
background allowed him to understand the Wall Street mentality
and anticipate investor sentiment. Isadore Sharp at Four Seasons
is also acknowledged for his ability to connect with people.
He has a long-standing policy that every phone call to him or
a company manager is returned promptly. He has developed an
uncanny ability to establish loyalty with employees and customers
alike. Four Seasons is consistently ranked as the best Luxury
hotel chain in the world. For six straight years, they have also been
named to Fortune Magazine’s list of the Top 100 Companies to
Work For .
Creative Savvy
Steve Wynn of Las Vegas fame is probably the most creative executive
of the group. His capacity to create a vision and then turn
it into reality is unrivaled. When Steve sold the Golden Nugget
in Atlantic City to build the largest casino in Las Vegas, most
thought he was crazy. At a cost of nearly a billion dollars, the
Mirage was ridiculed as a pipe dream. The Mirage of course was
nothing short of incredible. The Mirage’s success set off a building
boom in Las Vegas that has gone unabated for the last decade.
Wynn followed that up with the Bellagio and most recently the
“strategic white paper”
Wynn Resort Las Vegas. Wynn is also one of the great promoters
of our era. His casino promotions and his flair for advertising
have made him a household name. Another source of Wynn’s
success is his ability to attract top talent. Talk to anyone in the
casino industry and ask who they would most like to work with,
and Wynn’s name comes up most often.
Community/Government Relations
Solid relations with local, state and federal governments have
become a requirement in the travel industry. Two standouts are
Jonathan Tisch at Loews Hotels and Terrance Lanni and MGM/
Mirage. Tisch almost single-handedly turned back the repressive
tax code in New York City making it one of the most business
friendly cities in the world. Lanni has also been a leader in creating
win/win public policy for the gaming industry and has supported
research on the social effects of gaming.
Service Mentality
Interestingly, from our historical research it appears that a service
mentality must be nurtured at a young age. Selling widgets and
selling an experience are dramatically different. Empathizing and
anticipating the desires of guests must be learned. How many
times have I heard an executive say, “I stay in hotels all the time
so I understand what a guest wants”. Just because someone is a
discriminating customer doesn’t prepare him/her for the service
industry. In fact, very few industry outsiders have done well at
the CEO level. Prominent CEOs such as Stewart Bainum, Gary
Mead, Rand Araskog and Norm Blake all saw more value in selling
their companies. In addition, the research suggests that many
of these outsiders got frustrated with the hospitality work environment.
Moving the needle in hospitality is very difficult to do
without significant time and money.
Practical Experience + Degree
If you were building the perfect resume for hospitality, what
would it look like? First, it would combine practical experience
with a college degree. Gone are the days of apprenticeship programs
and the school of hard knocks. College programs such as
the Hotel School at Cornell University are becoming the norm
rather than the exception. With the shift in many world economies
to a service orientation, colleges are responding with programs
that are geared to those needs. Even the Laussane hotel
school in Switzerland (the oldest hotel school in the world) has
changed its curriculum to be less focused on apprenticeship and
more on western business philosophy.
Practical experience should include experiences in operations,
marketing, finance and real estate. Chains such as Hilton
and Marriott are better at providing these cross training opportunities,
and as such, have more marketable employees. Likewise,
tenure at the chains average 7-10 years versus the industry average
of 2-3.
Secondly, the resume would also have some international experience
and a consistent increase in responsibilities. Hospitality
employers are also very brand conscious. For example, managers
at Four Seasons, Ritz-Carlton and Mandarin get recruited
much more often than a candidate from an independent operation.
Hospitality’s reputation as a job-hopping industry has also
been changing. With the enormous investment in human capital
required today, employers are insisting on stability and commitment
from new employees. To garner commitment, the better
employers are offering a structured succession plan and the cross
training previously discussed.
My advice to aspiring leaders in hospitality:
●
●
●
●
●
●
Train your brain – Try distance learning, association &
university workshops, become a voracious reader and learn
from your mistakes
Pledge to serve – Take a personal oath to serve others, do
volunteer work, give back to the local community, learn
empathy
Show passion and commitment – Understand that success is
based on purpose, perseverance and patience
Think like an entrepreneur – Owners think differently than
laborers, put yourself in the shoes of an owner and act like
they would
Get creative – Creative power comes from exercising the
mind and body, challenge both. Workout, do yoga, take a
painting or creative writing class or join a sports team.
Lead, don’t manage – You manage things, but you lead
people.
Keith Kefgen HVS Executive Search Office: New York
Email: KKefgen@hvsinternational.com Address: 372 Willis Avenue Mineola, NY,
11501 Phone: +1 516 248-8828 ext. 220 (Work) +1 516 770-2331 (Mobile)
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 61

62 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HUMAN RESOURCES
To be Effective, Leaders Need
to Know Who They Are
by Margot Cairnes
On 1 April Vittoria Coffee announced to Australia through
a series of advertisements that it had discovered the
white coffee bean. No longer did you need to add milk
or cream. Brew up your white coffee from Vittoria’s specially developed
white beans.
Well, it was April Fools Day. But Les Schirato, CEO of Cantorella
Brothers, owners of Vittoria Coffee, is no fool. The ads
received coverage on every Australian radio and TV channel. Discussion
of the ads made all the major Australian dailies. Exposure
spread to Canada, Hong Kong and Europe. The media monitor
reports came in a box, not an envelope. Vittoria Coffee had never
had such press.
The silly thing was that Les had written that ad five years
ago. For five years it sat in his desk drawer. Whenever he brought
it out someone told him he couldn’t use it. It would attract the
attention of the Trade Practices Commission. Vittoria was now
the leader in its niche; it couldn’t do something as silly as play an
April Fool’s joke.
“ Leaders are different. ”
“It took me several years of hard work,” Les told me, “to
have the courage to listen to myself and ignore the blockers.”
It takes a strong sense of self to listen to our own council. To
take the risk of being different. It takes strong character to follow
our own lead when everyone else tells us we are wrong. It takes
great judgment to take calculated risks.
But isn’t this what leadership is all about? Leadership is about
being out in front. Being ahead of the crowd. Leaders are different.
To be different and effective, leaders need to know who they
are; what they want and where they are going; to have emotional
strength to be in touch with the people around them; the character
to build and maintain relationships; the judgment to take
risks.
These are very human capacities. Capacities forged by our
personal beliefs, our individual value systems, our life experiences
and our emotional health. All these things in turn rest on the decisions
we made when we were growing up. It was as our brains
were forming and maturing that most of the key frameworks of
our character and judgment were laid.
The old Jesuit dictum of “Give me a boy until he is seven
and I can shape him for life” is very true. So a big part of developing
character and judgment - the key to good leadership - is
raising awareness as to early decisions that are still shaping our
thinking, acting and being.
Margot Cairnes is an international leadership strategist. She delivers exceptional
results through a unique approach to identifying and solving the issues facing organizations
at times of great change, particularly implementing mergers and acquisitions.
In addition to major change problems Margot acts as a mentor to leaders of global,
commercial organizations. This confidential service provides a safe forum for leaders to
explore the issues and beliefs that create and limit their success. You can visit Margot
Cairnes web site at http://www.MargotCairnes.com or e-mail her at: cmuzard@
changedynamic.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 63

MISCELLANEOUS
What Value Quality?
Most Hospitality Operators Use the Term “Quality” In their Advertising.
What Exactly Does that Mean?
by John R. Hendrie
Most Hospitality Operators use the term “Quality” somewhere
in their advertising and promotion. What exactly
does that mean? One would compile multiple responses,
as Management tried to define “Quality”. The same would be
said for their Staff, and, just as importantly, the Guest. We all have
different perspectives.
Hospitality invites a Quality Experience, but, if expectations
are not met, you have a disappointed Guest, reduced Revenue,
unhappy employees and a deteriorating reputation. So, what is
the Value of Quality: the Concept, the Experience and Reward,
and how does this relate to your Hospitality Business?
The Basics: Quality is a Process. There are Performance Standards
created, communicated and implemented. The Standards
are reviewed constantly to stress Continual Improvement. Success
Stories are heralded. Problem Areas are immediately addressed.
Steady “feed back” is required. This is not a one day
exercise. Quality must become integral to your Business Performance.
The Bottom Line: Does your definition of Quality translate
to the Guest’s expectations? Hospitality Operations are boldly
diverse. We present to the Consumer various locations, architecture,
ambiance, price, amenity, and activity. When they make a
reservation – book a room, a table, or a ticket – the Guest has an
Expectation. Now, we must deliver and not create a disconnect,
because we may be at cross purposes with our Guest and their
concept of Quality.
The Assignment: How do we create a “common ground” to
meet these expectations and avoid the false steps in fully serving
our Guest? The Quality Process begins with recognized, reasonable
Hospitality Performance Standards. ALL parties understand
cleanliness. The environment you represent must be clean and
not assault the five senses.
We need to feel safe and secure. We require certain “creature
comforts”. We look for our needs to be attended with some
courtesy, accuracy, speed and pleasant attitude. Finally, we expect
the facility to present an acceptable appearance / condition.
These elements are how you will be judged by your Guest. They
represent the Benchmarks for a memorable Quality experience or
not. These Performance Standards are the foundation, and the
Guest needs to know you are serious and sincere. Particularly for
those Destinations which are Family oriented, recognize that the
greatest influence on where the Family will stay, dine and recreate
is the Mother, and she holds Quality Standards dearly.
The Report Card: The success of a Process needs to be measured
– a Performance Evaluation. Where do you rate with these
Hospitality Standards? Do you deliver, and, just as importantly,
does your Staff? Your Quality message must be communicated
daily. Your Staff must abide by your Message. Clear guidelines,
need to be in place, practiced and assessed. Attention to detail
and meeting the Guest’s needs are the Mantra.
There are many means to evaluate your Performance: the
personal relationship you have with your Guests; in-house mech-
anisms, like Comment Cards; Mystery Shop Services; Assessment
Companies; and formal Guest Satisfaction Systems. They are all
meaningful.
In Summary: The Guest Experience all begins with Expectations,
and success is built upon how well you deliver your product/service
in relation to those Expectations. Performance
Standards are the Hospitality Norm, and they “frame” the experience.
Your adherence to these Standards has definite Value in
the Marketplace, particularly if your efforts have been validated ,
designating your Operation a Quality Destination. You also have
at hand mechanisms to continually improve your performance,
for Guest Satisfaction “feed back” is critical and actually creates
Customer Loyalty opportunities.
Does Quality have Value? Absolutely. It is the bedrock of
our Industry. Quality establishes your Reputation, becomes your
competitive edge, and results in increased Revenue. Let’s restore
that Consumer Confidence!
John Hendrie, is CEO of Hospitality Performance, Inc., a full-service hospitality
consulting company. With a strong background in Hospitality, Human Resources,
Organizational Effectiveness, and Communications, John has devoted his career to
establishing Standards of Excellence across varied businesses. For more information,
please visit www.hospitalityperformance.com
64 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

Top 7 Ways to
Keep Your Team
Motivated
by Kelly Robertson
1.
2.
3.
4.
5.
6.
7.
Involve them. Many employees want to be involved in the
ongoing development and progress of their company. Plus,
they often have insightful ideas that can make a significant
difference in the company.
Communicate. A frequent axiom in business is, “No news
is good news.” However, employees want regular updates on
the progress of the business and their personal performance.
Use memos, email, telephone, and one-on-one and group
meetings to keep your team apprised of changes, updates,
new products, etc.
Celebrate individual and team performance. Catch
people doing something right and focus on recognizing
excellent performance. Provide positive reinforcement,
issue awards, use a corporate newsletter to highlight specific
achievements. Send thank-you cards and congratulatory notes,
make phone calls, and send emails.
Set challenging goals. My experience has taught me that
people strive to achieve what is expected of them. If you set
challenging goals your team will work hard to accomplish
them, providing of course, they are realistically attainable.
Give them the tools to succeed. No team will stay
motivated if they do not have the necessary tools `required
to do their job. This includes; equipment, internal support,
inventory, marketing materials, training, etc.
Manage poor performance. Your team expects you
to manage individuals who do not perform to standard.
However, many managers ignore these situations because they
are afraid to deal with them, hoping instead that the situation
will resolve itself. It never does and this “blind” approach
affects profitability, causes higher turnover, and generates low
morale.
Believe in your people. The majority of people want
to do well – very few individuals approach a job with the
intent of screwing up. Yet, many managers run their business
thinking that employees must be treated with a “watchdog”
mentality. They install hidden cameras, monitor email, and set
up procedures that require employees to get multiple approval
signatures for decisions.
Kelley Robertson, President of the Robertson Training Group, works with businesses
to help them increase their sales and motivate their employees. He is also the author
of “Stop, Ask & Listen – Proven sales techniques to turn browsers into buyers.”
For information on his programs, visit his website at www.RobertsonTrainingGroup.
com .
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 65

HUMAN RESOURCES
Creating a More Productive Workplace
by Doug Hissong
Today all commercial organizations large and small want
to make their work environments more productive. They
know that’s the key to competing well in today’s tough
environment. They know their employees are their most important
asset and that those employees can do more. But what are
the keys to making employees more productive? Let me suggest
a few.
Raise the expectations
You probably know the story of Pygmalion from Greek mythology.
Pygmalion was a sculptor who wanted to create a statue of
the most beautiful woman imaginable. He worked painstakingly
to create this exquisitely beautiful, ivory statue. When completed,
she was so beautiful that he fell in love with her and became
obsessed with her. In answer to his prayer, a goddess turned the
statue into a living woman whom Pygmalion married.
Pygmalion expected the statue to be beautiful, and it was.
The “Pygmalion effect” refers to the fact that things tend to turn
out as we expect them to be. This is not merely a statement of
good fortune. It means that our expectations cause things to
work out that way. It’s a self-fulfilling prophecy.
The story of Pygmalion was the basis for Bernard Shaw’s
play “Pygmalion”, which in turn gave rise to the musical play and
movie “My Fair Lady”. Professor Henry Higgins falls in love
with the beautiful woman he “creates” from a poor, common
flower girl. She had become the true lady that he had expected
her to become. Expectation had become reality.
The Pygmalion effect has been demonstrated in a number
of studies by psychologists. People definitely respond to our expectations.
They behave the way we expect them to behave. I
bet you can think of examples you’ve seen; I certainly can. What
a powerful tool this is for us! If you want to get people to do
more, raise your expectations. Don’t tell them what you want
or hope for. Let them know what you expect. Do this in a very
positive way. Let them know that you respect them, that they’re
very capable, and that you know (expect) that they will
come through with the best.
They will.
Align the rewards
What does your organization truly reward employees for? Do the
rewards go to those who avoid screw-ups by clinging to a conservative
status quo? Do they go to the innovators, visionaries,
and true leaders? Do long-service employees feel good about the
personnel actions they’ve seen over the years?
Where does your organization’s leadership or management
style place the emphasis? Does your “management by objectives”
emphasize “bean counting” and easy targets over less tangible
improvements and stretch goals? Does your “management by
exception” emphasize hunting for “who’s screwing up today” and
cautious CYA, creating an atmosphere of fear? Do you cling to
management based on a “Theory X” view of your employees in
spite of evidence that they’re “Theory Y” employees (as by far
most employees are)?
Whatever kind of behavior you reward most is the kind of
behavior you’ll get. Is the behavior you’re fostering what’s truly
best for your business? Does it lead to maximum productivity?
Is there a more people-related leadership/management style that
will be more effective?
Focus on attitudes
Employee performance is very rarely limited by abilities. It’s limited
by attitudes! Attitude is the paintbrush of the mind; it colors
everything. A person with a positive, “can do” attitude is bound
to be more productive than one with a negative attitude. And
each of us has absolute control over his attitude! We choose it.
Attitudes are extremely contagious. I like the bumper sticker
that says, “Courtesy is contagious. Let’s start an epidemic”.
Courtesy is an attitude. We say that someone has “infectious
enthusiasm”. Enthusiasm is an attitude, and it’s definitely infectious.
And Emerson said, “Nothing great was ever accomplished
without enthusiasm.“
Is criticism prevalent in your organization? Benjamin Franklin
and Charles Schwab are two highly successful individuals who
have said that they don’t criticize because it’s not effective. It
doesn’t help anything. Praise and encouragement help people
and improve productivity.
All attitudes, both positive and negative, are infectious or
contagious. They’re passed from one person to those around
him or her. One person can pull a whole group up or down with
his or her attitude. We need to be alert to what we and others
are passing around, and to control it. We need to keep a positive
and enthusiastic attitude and pass it on to everyone we can. We
need to work to make positive, enthusiastic attitudes permeate
our organization.
Doug Hissong has a doctorate in engineering and has worked over 35 years in
industrial companies. His experience has shown him how important interpersonal
and communication skills are to effective job performance (as well as
effectiveness in non-work endeavors). He feels so strongly about it that
he has collected his thoughts and a myriad of stories supporting them
into a book titled Positive Impacts, (subtitle “Discovering the
keys to better interpersonal and communication skills”). He
calls it “food for thought that tastes good, like a healthful
dessert.” He can be reached at doug.hissong@
sbcglobal.net.
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 67

FOOD & BEVERAGE
Last Words
Letters to the Editor
“This magazine is a very good thing, especially for Maldives. I was in Maldives the last four years
and we didn’t have such information earlier. I wish you all the best and hope people will use this
for their benefit.”
Saman Weerasinghe, F&B Cost Controller, Al Murooj Rotana Hotel & Suites, Dubai, UAE
“Your magazine is fantastic; indeed this will help develop the tourism industry in the Maldives.”
Ali Moosa, Cashier, Sun Island Resort & Spa
“You are doing a great job for promoting the tourism business in Maldives! Keep it up!”
Shameem Ibrahim, Managing Director, Shell & Sand Maldives Pvt. Ltd.
“I am currently studying Travel, Tourism and Hospitality and find your magazine very helpful and
a useful resource to my studies. I believe that even after my studies, the magazine will always help
me stay up-to-date with this industry.”
Aishath Lahufa Asim, Student, Male’
“This is the first time I have seen a magazine full of information for any age and with great tips
for one’s work place. It is a very good magazine for any staff. I love it and I’m sure I can use it in
my work place as well.”
Ali Shiyam, Customer Service Executive, Maldivian Air Taxi
“It’s simply the best.”
Aishath Nuga Abdul Gadheer, Deputy Offi cer, Bank of Maldives
“I am an avid reader of your magazine and I deeply salute the brilliant ideas incorporated with
useful schemes found in every issue. It’s worth reading from cover to cover! All your topics had
been affluent and I am sure it has brought an enormous leap to the hospitality readers.”
Jazzie L. Ranque, General Manager’s Secretary, Kuredu Island Resort
“One of the best knowledge review magazines. Superb articles! I lived in Maldives for six years
and still want to read your magazine.”
Tilak, Executive Chef, Taj Hotel Company, Sri Lanka
“Hospitality Maldives is the best school in the Maldives for educating the industry. Keep up the
good work!”
Mohamed Waheed, Assistant Manager, Summer Island Village
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
info@hospitality-maldives.com

HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 69

70 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006