Don't Let Your Systems Drive Your Customers Crazy! - Hospitality ...
Don't Let Your Systems Drive Your Customers Crazy! - Hospitality ...
Don't Let Your Systems Drive Your Customers Crazy! - Hospitality ...
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HOSPITALITY<br />
FREE COPY ISSUE # 9 / OCTOBER & NOVEMBER 2006<br />
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<br />
Don’t <strong>Let</strong> <strong>Your</strong><br />
<strong>Systems</strong> <strong>Drive</strong><br />
<strong>Your</strong> <strong>Customers</strong> <strong>Crazy</strong>!<br />
08 Ask What Makes You Great<br />
by Rick Hendrie<br />
32 Bringing out the Best in People<br />
by Chris Longstreet, CHA<br />
36 Politics of Revenue Management<br />
By Douglas Kennedy<br />
40 The Hotel Butler<br />
by Prof. Steven Ferry<br />
46 Employee Retention Strategies<br />
by John R. Hendrie<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006<br />
1
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006<br />
LILY<br />
INTERNATIONAL<br />
PTE.LTD<br />
Exclusive distributor in Maldives: Lily F & B Suppliers
IMPRESSUM<br />
EDITOR’S NOTE<br />
Publisher<br />
This magazine is created and published by:<br />
Beyond <strong>Hospitality</strong> Pvt. Ltd.<br />
G. Comrade Hiya, 1st floor<br />
Dhonadharaadha Hingun<br />
Male’ 20350<br />
Republic of Maldives<br />
T: (960) 3344 657<br />
F: (960) 3344 658<br />
Editor-in-Chief<br />
Ahmed Saleem<br />
Managing Editor<br />
David Kotthoff<br />
david@hospitality-maldives.com<br />
Design, Layout & Photography<br />
Mooinc. Pvt. Ltd.<br />
info@mooinc.com<br />
Advertising Sales Manager<br />
Ali Muaz<br />
ads@hospitality-maldives.com<br />
Print<br />
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An online version of this magazine is available<br />
at:<br />
www.hospitality-maldives.com<br />
Contact Information<br />
Please send your feedback, questions and<br />
comments to:<br />
info@hospitality-maldives.com<br />
Also please notify us at this email if you<br />
would prefer not to receive further issues of<br />
this magazine.<br />
Credits<br />
All articles / features are property of their<br />
respective authors / owners and have been<br />
provided with the great support of the following<br />
individuals and institutions:<br />
John Bowerman-Davies<br />
Margot Cairnes<br />
Jane-Michele Clark<br />
DPPEA<br />
Joe Dunbar<br />
Tony Eldred<br />
Prof. Steven Ferry<br />
Paul Finley<br />
Julie Garrow<br />
Eric Hahn<br />
John Hendrie<br />
Rick Hendrie<br />
Doug Hissong<br />
Ron Kaufman<br />
Keith Kefgen<br />
Douglas Kennedy<br />
Rich Kussin & Lynn Helmers<br />
Denise Moretti<br />
Kelley Robertson<br />
Chris Longstreet, CHA<br />
Susie Ross<br />
Neil Salerno, CHA<br />
Terry Wisner<br />
www.ehotelier.com<br />
www.youngentrepreneur.com<br />
Dear friends and colleagues,<br />
Welcome to the 9th edition of <strong>Hospitality</strong> Maldives.<br />
Surveys. They are everywhere. You find them in newspapers, TV channels, websites, and radio stations.<br />
Whilst many solely follow the aim of broadening a business’s customer base and getting to<br />
know its clients better, surveys can be a great tool in answering very general but utmost important<br />
questions such as ‘What are we doing wrong?’ or ‘Where can we improve?’. When and where results<br />
are made public, they can further support an industry in making important decisions and in measuring<br />
performance and policies towards those of competitors.<br />
I believe there are many current issues within our industry that would make great subjects for<br />
nationwide surveys, however, for now I’d like to concentrate on two selected topics and seek your<br />
support and active participation for the same. Over the coming weeks I will conduct two surveys<br />
whose subjects I consider very important; one will be aimed at Human Resources Departments, the<br />
other at Chefs, F&B and Purchasing Managers. The respective subjects will be as following:<br />
Food Supplies, Quality and Storage<br />
Salaries, Training and Staff Turnover<br />
Participation in these surveys will be voluntary as a matter of course, however, the more hotels and<br />
resorts give their input, the more representative the outcome will be. I strongly believe that we can<br />
all learn from the results of such surveys and no one should be hesitant to express their opinions<br />
about the same.<br />
Naturally, both surveys will be conducted with absolute confidentiality and all essential results will<br />
be compiled in a public research paper. If you’d like to participate, which I hope you do, please visit<br />
http://www.hospitality-maldives.com/surveys/ to download the survey forms. Once completed,<br />
simply fax or email them back to me.<br />
I look forward to your feedback as usual and wish you HAPPY READING.<br />
<strong>Your</strong>s in hospitality,<br />
Disclaimer<br />
No parts of this magazine or its content<br />
(photographs, articles or parts thereof,<br />
design, layout) may be reproduced without<br />
the consent of the respective owner. Beyond<br />
<strong>Hospitality</strong> Pvt. Ltd. or any of its associates<br />
cannot be held responsible for the misuse<br />
of the information and intellectual property<br />
provided in this magazine.<br />
Opinions expressed in this magazine are<br />
those of the writers and not necessarily<br />
endorsed by the publisher.<br />
David Kotthoff<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006<br />
3
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
CONTENTS<br />
M A L D I V E S<br />
EDITORS NOTE 3<br />
LISTEN TO WHAT YOUR<br />
UNIFORMS ARE SAYING<br />
by Eric Hahn<br />
TIPS FOR DELIVERING GREAT<br />
CUSTOMER SERVICE<br />
by Jane-Michele Clark<br />
HOTEL/MOTEL WASTE REDUCTION:<br />
FACILITIES MANAGEMENT<br />
FINANCIAL MANAGEMENT SERIES X<br />
HOW TO REDUCE COSTS<br />
BRINING OUT THE BEST IN PEOPLE – PART 1<br />
by Chris Longstreet, CHA<br />
THE POLITICS OF REVENU MANAGEMENT<br />
by Douglas Kennedy<br />
THE HOTEL BUTLER<br />
by Prof. Steven Ferry<br />
GOOD EMPLOYEE RETENTION STRATEGIES<br />
CAN BREAK THE MYTH<br />
by John Hendrie<br />
DON’T LET YOUR SYSTEMS DRIVE YOUR<br />
CUSTOMERS CRAZY<br />
by Ron Kaufman<br />
THE IMPORTANCE OF AVOIDING<br />
CROSS-CONTAMINATION<br />
by Rich Kussin & Lynn Helmers<br />
THE DANGERS OF BEING A HOST<br />
by Tony Eldred<br />
6<br />
10<br />
20<br />
24<br />
32<br />
36<br />
40<br />
46<br />
52<br />
56<br />
58<br />
LAST WORDS 68<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SALES & MARKETING<br />
Gobble-Up <strong>Your</strong> Competition<br />
Start with the Basics, Add a Pinch of Research, and a Dash of<br />
Common-Sense<br />
A<br />
chef, I am not, but I do know how to gobble-up the<br />
competition. One of the best ways to measure the sales<br />
success of your hotel is to compare your hotel’s results<br />
with that of your competition. In many ways, this is more realistic<br />
than simply comparing results with your sales budget or last year’s<br />
numbers.<br />
Many savvy companies now use competition-set comparisons<br />
to judge the true effectiveness of their marketing programs.<br />
Hopefully one day, comp-set comparisons will find their way into<br />
monthly operating statements.<br />
Many hotels attempt to operate in a vacuum, ignorant and<br />
impervious to everything happening around them. They set rates,<br />
determine amenities, create promotions, develop their web sites,<br />
and establish operating standards, all without knowing or caring<br />
what the competition is doing. This doesn’t make sense even if<br />
your property is performing well, slow suicide if it isn’t.<br />
How Well Do You Know <strong>Your</strong> Competition?<br />
In the real world, consumers have a wide range of hotels to<br />
choose from. Experienced managers know that just having a<br />
great hotel is no guarantee of success. There are managers who<br />
sit back and wait for success to come; and those who go out and<br />
grab it. Smaller properties can play with the big boys.<br />
Smaller hotels need to borrow some techniques from chain<br />
institutions by first performing a simple competition analysis.<br />
There are many tools to do this, but my favorite is called a S.W.O.T<br />
report which compares your hotel’s Strengths, Weaknesses, Opportunities,<br />
and Threats.<br />
This report goes beyond the normal quantity and quality of<br />
rooms/rates and other physical attributes; it also includes a comparison<br />
of management styles, sales talent, operating limitations,<br />
web site popularity and productivity, and front desk staff.<br />
An honest appraisal of your hotel as compared to your competition<br />
will reveal and suggest many ways to improve your position<br />
in the marketplace. From the S.W.O.T. report, you will be able<br />
to define your comparative strengths and develop your recipe to<br />
exploit them.<br />
No evaluation can be complete without comparing financial<br />
results. I know of no better source of competition-set financial<br />
data than STR reports from Smith Travel Research. If you are<br />
fortunate enough to be in one of their participation areas, the<br />
STR report can give you an occupancy, average rate, and RevPar<br />
comparison with other hotels that compete with yours. Check<br />
STR out online; it could be the best marketing small investment<br />
you’ve ever made. No, I don’t receive compensation from STR;<br />
they are simply the best.<br />
Revenue per Available Room (RevPar)<br />
by Neil Salerno, The Hotel Marketing Coach<br />
We all know that comparisons of occupancy and average rate can<br />
be very confusing and deceptive; after-all, would you prefer to<br />
have 68% occupancy at a $125 ADR or 64% occupancy at a $138<br />
ADR? Unless your competition has exactly the same number of<br />
rooms and rates, comparing occupancy is futile. ADR alone can<br />
be very deceptive. This changed when some great minds gave us<br />
RevPar or revenue per available room, a perfect tool to compare<br />
revenue performance.<br />
RevPar gives us the ability to compare hotels of different<br />
sizes and varying average rates. Since revenue generated is the<br />
primary goal of every hotel, RevPar allows us to combine average<br />
rate with occupancy by measuring the amount of revenue generated<br />
per available room in the hotel.<br />
RevPar is also simple to compute; simply multiply your average<br />
rate times the occupancy percentage for that period; the result<br />
is the amount of revenue generated for each room available for<br />
sale.<br />
Take Names and Kick Butts<br />
It’s important to assign a face and name to your competition; get<br />
specific. Too often, I hear managers refer to “the competition”,<br />
but have to sit down and think about which hotels they actually<br />
are and why.<br />
Generally, there are only one or two hotels that present the<br />
most serious threat to your ultimate success. <strong>Your</strong> hotel is probably<br />
on their lists as well. It always amazes me how many hoteliers<br />
have so little information about specific competitive hotels. Get<br />
to know them well; as well as you know your own.<br />
Unless your hotel completely dominates your competitive<br />
environment, one or two hotels in your competition set are preventing<br />
your hotel from fulfilling its full potential. From your new<br />
S.W.O.T. report and your new STR report, you can determine<br />
who they are and develop ways to take advantage of their weaknesses<br />
and your strengths.<br />
For those, who think this may be a little cold, you were probably<br />
not around during the intense “sales warfare” of the early<br />
90’s. An intense competitive environment has always stimulated<br />
sales innovation. It benefits our industry.<br />
Focus <strong>Your</strong> Team on Challenges not just Procedures<br />
As a rule, people can be very creative in dealing with the challenges<br />
to your top-line. In far too many cases, owners and managers<br />
present procedures and solutions instead of the challenges.<br />
Try empowering your team to solve the challenges presented in<br />
your market and let them create the procedures and solutions. Put<br />
aside all your prejudices and “knowledge” of the market and let<br />
them create new ways to capture business. You might be amazed<br />
by their innovation.<br />
I will never forget what happened at a hotel in Roanoke Virginia<br />
many years ago. Every summer for years, group business fell<br />
flat. The manager hired a sales director who knew little about the<br />
Roanoke market. After just a few months on the job, she booked<br />
more summer group business than this hotel had ever seen. The<br />
manager completely forgot to tell her to concentrate her efforts<br />
on the fall and winter because summers were very poor.<br />
Neil Salerno, CHME, CHA, The Hotel Marketing Coach,<br />
www.hotelmarketingcoach.com, NeilS@hotelmarketingcoach.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SERVICE<br />
The Two-Minute<br />
Rule<br />
by Susie Ross<br />
What is the two-minute rule? Well, if you’re a server, you<br />
should know automatically what it is and, if you don’t,<br />
shame on you. The two-minute rule is the time you<br />
should allow your guests to have their food before you check back<br />
with them and make sure everything is great. Notice I didn’t say<br />
“ok” – I said “great!” That’s a topic for another newsletter.<br />
After two minutes, most guests will have had time to try their<br />
food and know whether or not it was prepared to their satisfaction.<br />
If it wasn’t, it becomes your opportunity to correct a mistake<br />
immediately and save your tip from dipping below the acceptable<br />
mark.<br />
One of the things that is most irritating to guests is needing<br />
their server and not being able to locate him. Other servers<br />
don’t seem to care that you’re looking around the restaurant for<br />
someone to offer another drink, refill beverages or just clear some<br />
plates. It becomes the classic “that’s not my table” syndrome.<br />
Another equally annoying situation is having the server hover<br />
over you, asking every five to ten minutes, “Is everything ok?”<br />
“Is everything still ok?” I can tell you that from personal experience<br />
I have wanted to throw my dish at servers who kept coming<br />
by and asking that question. It’s not necessary to keep asking that<br />
question! <strong>Your</strong> guests are trying to enjoy the dining experience<br />
and perhaps have a conversation with the other people at the<br />
table – not the server!<br />
The only time it’s ok to come by and repeat that two-minute<br />
rule is if there was a mistake and the server corrected it and needs<br />
to make sure the dish has indeed been prepared to the satisfaction<br />
of the guest.<br />
This brings up an issue that a reader recently pointed out<br />
to me, and that is the need for a sort of “silent summons” for<br />
the guest to give a waiter so as to avoid raising one’s hand or<br />
shouting out as if to a dog. There is a restaurant in Denver that<br />
has a system that is probably similar to the one suggested. This<br />
casual, cafeteria-style Mexican restaurant has little wooden stands<br />
on each table. Cleverly designed are flags attached to strings that<br />
guests can raise up to let the server of that station know that<br />
something is needed. The problem is obvious; servers may not be<br />
in their stations to know they are needed. They have to be present<br />
to see the flag! The other option could be an electronic device<br />
that signals the server wherever he/she may be. I propose that a<br />
well-trained service staff shouldn’t need any kind of “summons”<br />
system, either electronic or otherwise, to do their jobs properly.<br />
By definition, a server’s job is to be at the ready for guests.<br />
“ …you may only have to<br />
observe and step in when<br />
necessary – silently. ”<br />
After your two-minute check-back, you need to use silent<br />
service, which is merely your presence and visibility in your station.<br />
That’s who you’re there for – the customer. Don’t ever<br />
forget that. If you’re present in your station, you may not even<br />
have to intervene; you may only have to observe and step in when<br />
necessary – silently. Believe me, your guests will appreciate it.<br />
Training and information is the key! Contact me, Susie, at<br />
Waiter Training, either by phone or email. My business number<br />
is (720) 203-4615, and web address is http://www.waiter-training.<br />
com.<br />
I have restaurant training manuals available for sale, as well<br />
as my book, “A Waiter’s Training,” for the individual server who<br />
wants to learn more about his/her career and improve on skills.<br />
Susie Ross has been involved in the hospitality industry for ten years. She has just<br />
written a definitive work on front of house customer service and techniques for waiters<br />
and waitresses. For more information about Susie’s book, “A Waiters Training,” her<br />
training manuals and training seminars please visit her at<br />
http://www.waiter-training.com or email her at susie@waiter-training.com.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HUMAN RESOURCES<br />
Ask What Makes You Great<br />
We will orient you to who we are — our heart, our soul,<br />
our goals, our vision, our dreams, so you can join us<br />
and not just work for us. You have the right to know<br />
our hopes, our dreams and our goals.<br />
Horst Schultze, former President & COO for Ritz Carlton addressing<br />
new employees as quoted from Harvard Business School<br />
Case Study revised 7/02<br />
I believe that most business people, if given the chance, want to<br />
make their brand better and more competitive to achieve the twin<br />
goals of on-going & acceptable profit and life-long consumer<br />
loyalty. The realities of doing so are difficult. Many just don’t<br />
know how to get to that next level: creating a remarkable brand<br />
whose sum is greater than its constituent parts. What is a remarkable<br />
brand? It starts with absolute clarity about who you are and<br />
what you stand for. I call it ‘the sword in the sand’ — those few<br />
key values, animated by seminal life experiences that brought you<br />
to your business and get you up every day to return to the battle.<br />
As Mr. Shultze said to his new recruits, your associates (and by extension,<br />
your guests) have the right to know your ‘hopes, dreams<br />
and goals’.<br />
How would your guest<br />
describe you?<br />
The second element is a profound understanding of your consumer’s<br />
expectations, with one caveat: there is no real value in<br />
using a consumer’s current expectations as a meaningful benchmark.<br />
Most people’s expectations are exceeded when they get<br />
fundamental services provided pleasantly or products served as<br />
ordered. That’s no standard that I’m interested in using. No, go<br />
deeper and ferret out what your consumer’s hopes are around the<br />
experience you provide and make that the baseline for standards<br />
measurement. You not only will see what it is you need to eliminate,<br />
but those elements and attributes you should celebrate. It<br />
gives an entirely different context from which you develop both<br />
your brand story and the practical processes needed to deliver it.<br />
Thirdly, you have to develop your story that not only describes<br />
the ideal guest experience, but also incorporates the animating<br />
force inherent in your true values and your consumer’s hopes.<br />
The story becomes the trunk of your business tree and everything,<br />
I mean everything, else is derived from it. It includes how<br />
and with whom you do business, the ways you hire and train to<br />
the meaning you imbue in every moment of the consumer’s buying<br />
experience. It is a whole business system, whose soul is your<br />
story.<br />
Now, let me give you a handful of questions to ask yourself, if<br />
you wish to go on this journey to remarkable branding.<br />
●<br />
●<br />
●<br />
●<br />
●<br />
●<br />
by Rick Hendrie<br />
FIVE Remarkable Branding Questions<br />
What is the single most important value you hold<br />
sacred in relation to your business?<br />
Can you associates tell you what that is? Does it<br />
motivate them to be remarkable?<br />
What do your guests like and what don’t they like<br />
about what you do and how you do it?<br />
How would you describe your business or concept<br />
to a stranger?<br />
How would your guest describe you?<br />
<strong>Your</strong> staff?<br />
How do you know if your customers are loyal, not just satisfied?<br />
There are a ton of other things to ask and understand, but just<br />
start there. The service economy is finished because consumer<br />
satisfaction is no longer a guarantee of intention to return and<br />
guest expectations are pegged to mediocrity. What will make you<br />
great is the excellence of your product and service. What will<br />
make you remarkable is the inexplicable combination of feeling<br />
and sublime unconscious associations guests make when they see<br />
you or think about you. That is contained in the part of the brain<br />
called the amygdala, entirely separate from the centers of logical<br />
and rationality and it is there that your greatness must reside.<br />
If you feel like sharing your insights with me (confidentiality assured)<br />
I’d be delighted to give you my feedback, free of charge. If<br />
not, let these questions be the springboard to remarkable-ness.<br />
Rick Hendrie is President & Chief Experience Officer of Remarkable Branding,<br />
Inc., a Cambridge MA based consultancy which helps create memorable brand experiences.<br />
For a complimentary newsletter go to www.remarkablebranding.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
FINANCE & ACCOUNTING<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SERVICE<br />
Tips for Delivering Great<br />
Customer Service<br />
by Jane-Michèle Clark<br />
It almost goes without saying that good customer service is essential to sustaining any<br />
business. No matter how wonderful a job you do of attracting new customers, you<br />
won’t be profitable for long unless you have a solid customer retention strategy in<br />
place – and in action. It’s the actions that count – not what you say you’ll do, or what the<br />
policy says. People will remember what you or your employees have done – or not done.<br />
One of the key components of an effective retention strategy is exceptional customer<br />
service. Not just good service, but memorable service. Today, consumers’ expectations are<br />
higher than ever and companies that fail to deliver, risk losing market share.<br />
Tips for Delivering Good Customer Service.<br />
1. Treat me like a somebody. It’s been years since that Midas muffler commercial aired, but<br />
the “I’m a somebody” phrase can still be heard from time to time. Why? Because regular<br />
customers expect (and deserve) to be remembered. As one woman summed it up, “You<br />
don’t need to remember my name, or what I order, but do acknowledge that I’ve been<br />
there before.”<br />
One of the best examples I’ve ever seen of this is at my local coffee shop. One day I<br />
noticed that the young man behind the counter greeted some people by name and, even if<br />
he didn’t know their name, he knew what they usually ordered. As I waited for my tea (he’d<br />
already placed my ‘two milk on the side’ on the counter without me having said a word), I<br />
asked him why he said, “See you later” to some customers, “See you tomorrow” to others,<br />
yet always said, “Have a good week” to me. The smiling, friendly reply? “Because you only<br />
come in on Mondays and Fridays”. As I thanked him, I thought to myself, “Wow. He won’t<br />
be here long”. Unfortunately, I was right.<br />
10 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SERVICE<br />
2. Be polite! Too frequently company representatives ask customers<br />
for file information without saying “Please” or even being<br />
polite. It is not acceptable for a service rep to simply bark out,<br />
“Account number?” And it is never acceptable for a service rep<br />
to insult a client.<br />
Six weeks ago there was a problem with my home internet<br />
account – which is with a phone carrier I have used my entire<br />
life (and, as you know, this kind of loyalty to a phone company is<br />
almost unheard of these days). In all that time, I have never been<br />
late with a bill payment to them. There is a long and ugly story<br />
here, but the short version is that a) the problem was on their end<br />
and b) before they realized where things had gone wrong, their<br />
rep was extremely rude. When I asked him to please change the<br />
way in which he was addressing me, he snarled, “Well whadya<br />
expect? If you’d pay your bills on time you wouldn’t have this<br />
problem.”<br />
I couldn’t believe what I was hearing. In fact, if I’d just read<br />
this account (instead of being on the receiving end), I wouldn’t<br />
have believed the story. What’s worse is that although the company<br />
later apologized, their senior management seemed to feel<br />
that this was not an isolated incident.<br />
A 2005 survey conducted by Schulich School of Business<br />
MBAs suggests that this kind of problem exists in over 30% of<br />
companies, and costs them hundreds of millions of dollars in<br />
lost customers (and revenues) each and every year. Don’t let your<br />
company end up one of these statistics.<br />
“ …special gestures go a long<br />
way towards engendering<br />
customer loyalty… ”<br />
3. Thank your customers – like you mean it. When your employees<br />
conclude a transaction, they should thank the customer with a<br />
smile and a sincere “thank you for … completed by whatever<br />
is appropriate for your business”. Too often, customers received<br />
a rushed and barely civil “Thanks-Have-a-nice-day-Next”. With<br />
large purchases, the verbal greeting should be followed up with a<br />
hand-written card – not just because it leads to increased referrals<br />
(which is does), but because it is the correct thing to do.<br />
Oh, and by the way, the word “Sure” is no way to respond<br />
when a customer thanks you. To many people in many parts of<br />
the world, this is dismissive and suggests you don’t care. The correct<br />
phrase is “You’re welcome”.<br />
4. Appearances do count! According got two independent pieces or<br />
research, nearly 90% of customers form an impression about<br />
how competent and reputable your company is based on what<br />
they see when they walk trough your doors.<br />
Preserve me from auto-attendant hell. <strong>Customers</strong> are becoming<br />
increasingly annoyed and frustrated with having to sift through<br />
a multitude of options and press numerous buttons – only to be<br />
told that the desired service can only be obtained through the<br />
company’s website. Worse is when the auto-attendant uses voice<br />
recognition – but doesn’t ‘recognize’ your voice. People want to<br />
connect with human beings; they don’t want to listen to a long list<br />
of prompts. For hints on how to use auto-attendants effectively,<br />
please read “The top 5 new things people expect for good customer<br />
service” on our ReallyGreatInfo.com webiste.<br />
5. Do what you say you will... when you say you will. The expression<br />
“Under promise, over deliver” may have become somewhat hackneyed<br />
through over use, but is still germane. One of the quickest<br />
ways to lose customer confidence is to not follow-through, or<br />
to be late delivering a service or product, without notifying the<br />
customer in advance, determining whether or not the delay will<br />
impact the customer and providing an alternate solution in the<br />
interim if necessary.<br />
One of the best examples I ever experienced of a company<br />
doing it well happened with Toyota. There was a problem with<br />
my RAV4 and Toyota couldn’t repair it easily. I was driving a loaner,<br />
but had planned to go camping with my kids. It was our summer<br />
holiday and it had been planned for months. When Toyota<br />
couldn’t repair my vehicle in time, they rented an SUV for us to<br />
use – without me having to ask. I have since purchased another<br />
vehicle from this dealership and recommended it to 6 others who<br />
have purchased from them. Coincidence? I think not.<br />
6. Surprise the customer from the time to time. When it is possible to<br />
provide an extra level of service, do so. Whether it’s an unexpected<br />
complimentary dessert in a restaurant, or an upgrade that has<br />
not been requested, these special gestures go a long way towards<br />
engendering customer loyalty and to winning you new customers.<br />
It has long been known that on average, a dissatisfied customer<br />
will tell 10 - 16 others, but people who have had an unexpectedly<br />
good experience also recount their stories.<br />
7. Provide “full” service. When Successories sends out its framed<br />
prints, it includes the hooks and a small levelling device. There’s<br />
a remote control toy vendor near me who includes the batteries.<br />
“My” gas station dispenses free coffee with gas on weekday<br />
mornings. A drive-through drycleaner in northern Ontario opens<br />
early and hands you the morning paper with your order. Small<br />
things,yes. Greatly appreciated? No question.<br />
I spoke to each of my local retailers and learned that in each<br />
case, their sales – and profits – have enjoyed double digits increases<br />
since they introduced more comprehensive service. Think<br />
about what you can add to help make things easier for your customers.<br />
In some cases, by looking at what else it makes sense to<br />
sell, you can even add a new revenue stream while improving the<br />
perceived level of customer service provided.<br />
8. Mea Culpa. When you have made a mistake, admit it and set<br />
things straight. When customers have a complaint – listen, truly<br />
listen. Then apologize and take corrective action. In many instances,<br />
the very act of listening (without interrupting) can be<br />
enough to diffuse the situation and make the person feel worthy<br />
as a customer. Then ask the customer how they would like you to<br />
resolve the situation. In most instances, your client will come up<br />
with something reasonable – and often less costly than a solution<br />
you might have proposed.<br />
9. Listen to your customers. Conduct your own surveys and get feedback<br />
on what they like and don’t like - and take corrective action<br />
as required. <strong>Let</strong> customers know that their business is appreciated<br />
and that their opinions are important to you.<br />
None of these suggestions takes a lot of time or money to<br />
implement, yet they can pay dividends in increased customer satisfaction<br />
and retention. The key, though, is to ensuring that employees<br />
understand the importance of their front-line role and<br />
get good training and supervision.<br />
Jane-Michèle Clark is president of The Q Group (http://www.theQgroup.com),<br />
a marketing firm with a solid 30-year track record. She teaches MBA marketing,<br />
is a corporate trainer & speaker, business coach and 4-time nominee for Canadian<br />
Woman Entrepreneur of the Year. Jane-Michèle can be reached at<br />
jmc@reallygreatinfo.com or by calling 416-424-4233.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 11
12 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SALES & MARKETING<br />
How to Lose the Sale, Quickly and<br />
Easily<br />
by Kelley Robertson<br />
Here are five sure-fire ways to guarantee you will not get<br />
the sale; Focus on yourself. I recall meeting several salespeople<br />
from a variety of vendors regarding an initiative<br />
I was working on for a client. EVERY single person began<br />
their presentation by telling me about their company rather than<br />
learning about my needs and wants. I ended up being subjected<br />
to information that had little or no relevance to my situation,<br />
which meant that 20-30 minutes of my time was wasted in each<br />
interview. I understand the importance of providing some background<br />
information on your company at the beginning of your<br />
presentation but keep it brief. I personally don’t care how much<br />
your company is worth, how long you have been in business, or<br />
what projects you have recently completed. I want you to focus<br />
on my needs first.Demonstrate that you care about my particular<br />
situation or show that you are interested in learning more about<br />
my business needs and I will reward you with my full attention.<br />
Don’t listen to me. When I worked in the corporate world I<br />
gave countless salespeople information pertaining to my business<br />
requirements only to have them draft a proposal that did not take<br />
these needs into consideration. Don’t waste your prospect’s time<br />
asking questions if you are not going to listen to his responses.<br />
The best salespeople ask probing questions, take written notes,<br />
and clarify their understanding of the prospect’s needs at the conclusion<br />
of each meeting. This enables them to create a proposal<br />
that addresses the client’s specific concerns, issues and situation.<br />
Make elaborate claims about your product/service.<br />
I once had a salesperson claim that his product was completely<br />
unique from anything on the market. When I questioned what<br />
he meant, I discovered this “unique feature” was something that<br />
several other companies offered as well. This salesperson immediately<br />
lost any credibility he may have established and failed to<br />
close the sale. Do your research and learn what your competitors<br />
offer. Know how to position yourself differently without exaggerating<br />
or overstating your product or service.<br />
don’t make them. I suggest that you think otherwise. The majority<br />
of people who sell a product or service fall prey to these mistakes<br />
on a regular basis. Here is a final example;<br />
When I was the manager of<br />
training for a large retail organization<br />
I was contacted by many<br />
sales trainers. One in particular,<br />
spoke at great length about the<br />
features of his program and how<br />
valuable it was because participants<br />
would learn how to effectively<br />
qualify customers.<br />
He told me that this workshop<br />
would teach people how to ask<br />
the right questions and listen<br />
to the answers. In turn, I would<br />
see a noticeable increase in<br />
sales. While I agreed with his<br />
concepts, I seriously doubted<br />
his ability to deliver. Why? He<br />
did not apply the concepts of<br />
his own workshop. In fact, he<br />
spent most of the allotted time<br />
talking rather than learning about<br />
my needs! If he didn’t practice what<br />
he preached, how could I be sure he<br />
would deliver? Pay more attention to<br />
your prospect’s needs and respect<br />
their time. Avoid these common<br />
mistakes and increase your sales.<br />
Talk too much It continues to amaze me how many people<br />
think that telling is selling. I have window shopped in a variety<br />
of stores and excellent salespeople understand the importance<br />
of silence and have learned to become comfortable with it. Unfortunately,<br />
too many people talk far too much. I recall listening<br />
to a salesperson ramble on at great length about a product I was<br />
genuinely interested in purchasing. Unfortunately, I couldn’t get<br />
a word in edgewise to tell him I wanted to buy it. In fact, when I<br />
told I wanted it, he tried talking me out of the sale by stating, “If<br />
you want some time to think about it, there’s no rush.” While I<br />
appreciated his low-pressure approach I couldn’t help but wonder<br />
how many sales he had lost in the past.<br />
Do not respect my time.Today’s business executives are extremely<br />
busy. In fact, I recently read that most decision-makers<br />
have just one hour of unscheduled time during a given week.<br />
When you are granted an appointment or are talking to someone<br />
over the telephone, respect their time constraints. Get to the<br />
point quickly and keep your presentation concise and brief. You<br />
may think these are pretty basic mistakes and you may believe you<br />
“ …I seriously doubted<br />
his ability to deliver. ”<br />
Kelley Robertson, President of the Robertson Training Group, works with businesses<br />
to help them increase their sales and motivate their employees. He is also the author of<br />
“Stop, Ask & Listen – Proven sales techniques to turn browsers into buyers.” For<br />
information on his programs, visit his website at RobertsonTrainingGroup.com .<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 13
NEWS<br />
<strong>Hospitality</strong> News<br />
Courtesy Of Ehotelier.com<br />
Indian Hotels Company Ltd.<br />
Partners With Eurocape in<br />
South Africa<br />
Indian Hotels Company Ltd. (ICHL) has announced a<br />
partnership with Eurocape, the developers of the US$137.9<br />
million Mandela Rhodes Place, to develop Cape Town’s<br />
newest addition in luxury hotel rooms and residences. The<br />
first phase of Mandela Rhodes Place is due for completion<br />
by the end of 2006. It will include an array of restaurants,<br />
bars, winery, wellness centre, offices, gymnasium,<br />
swimming pool and a rooftop garden. The second phase<br />
of construction is scheduled for completion by the end<br />
of 2008 and will feature a 174-room five-star hotel and<br />
20 private residences. The US$41.3 million hotel and<br />
residences development at Mandela Rhodes Place marks<br />
the company’s first major investment in South Africa, with<br />
two other hotels planned in Johannesburg and Durban as<br />
part of their Indian Ocean expansion plan. IHCL owns and<br />
operates 75 Taj Hotels Resorts and Palaces worldwide.<br />
Westin re-enters Singapore<br />
Starwoods Westin brand will return to Singapore as part<br />
of City Developments Limited’s (CDL) “The Quayside<br />
Isle” project, which has been awarded to the developer<br />
by Sentosa Cove for its marina quayside site. The 320-<br />
room hotel will be Singapore’s first five-star marina hotel.<br />
It will also mark the brand’s re-entry to the island-state<br />
since the Westin Hotel Singapore was rebranded Swissotel<br />
the Stamford in January 2002. In addition to the hotel, the<br />
project will also have speciality retail shops, restaurants,<br />
home office suites and luxury residences.<br />
The award is collectively worth S$255 million (US$161<br />
million) and will enhance the leisure and entertainment<br />
amenities in southern Singapore. This neighbourhood<br />
includes Sentosa Island with its planned casino resort,<br />
HarbourFront, VivoCity, Singapore Cruise Centre, St<br />
James Power Station and Mount Faber.<br />
Taj Hotels Looks To Buy<br />
Boston’s Ritz-Carlton Hotel<br />
Don’t breathe a word of this. Because nobody’s supposed<br />
to know. But the Taj Group, a hotel conglomerate<br />
from India, is the super-secret suitor negotiating to buy<br />
Boston’s Ritz-Carlton hotel. The Indian luxury chain,<br />
which recently purchased The Pierre in NYC from the<br />
Four Seasons, reportedly is seeking similar properties in<br />
so-called ‘gateway’ U.S. cities to build a five-star hotel<br />
company under The Pierre flag. The Tajies currently own<br />
57 hotels in 40 locations across India with an additional<br />
18 international hotels around the globe. ‘We’re waiting,’<br />
said one Ritz insider, ‘but there’s nothing definitive yet.’ As<br />
we told you weeks ago, the owners of the grand dame on<br />
Arlington Street, Millennium Partners, have been looking<br />
to unload the Ritz and employees have been told that the<br />
hotel may soon be under new management. Hotel spokesgal<br />
Caron LeBrun yesterday reiterated the party line saying she<br />
couldn’t comment on ‘rumors and speculation.’<br />
Surge in Thailand Arrivals<br />
The Association of Thai Travel Agents has reported that<br />
arrivals at Bangkok’s Don Muang Airport surged by 42%<br />
in the first five months of 2006. A total of 1,223,546<br />
million passengers passed through the airport between<br />
January and May 2006, compared to 860,844 in the same<br />
period last year. China led the way, with 216,919 arrivals<br />
- a 102% increase over the same period last year, followed<br />
by Korea with 101,383 arrivals - up 68%. Japan came in<br />
third with 155,537 arrivals - a 34% increase. The UK was<br />
the biggest European market, generating 60,654 visitors<br />
- up 73% on last year’s figures. Germany, with 42,583<br />
visitors (a 21% increase on 2005), was the second biggest<br />
European market. The Tourism Authority of Thailand<br />
targets 13.8 million foreign tourists and US20 billion<br />
receipts in 2006.<br />
1 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
NEWS<br />
Consultancy Role for Wolf<br />
Vierich and The Vitala Group<br />
Wolf Vierich, Chairman of the Vitala Group, and his<br />
Group Companies have been selected as consultants to<br />
Fort Dragon Hotel Management Company Ltd in the<br />
People’s Republic of China.<br />
Fort Dragon is currently the largest privately owned 5-star<br />
hotel operator and management company in China.<br />
Vitala Group’s duties will comprise advising on all matters<br />
relating to the hotel, tourism and leisure industries<br />
and in particular to further assist Fort Dragon with the<br />
administration of multiple hotel management contracts<br />
throughout the People’s Republic of China.<br />
Rihiveli construction<br />
completed<br />
Construction has finally been completed at the Rihiveli<br />
Beach Resort in the Maldives, with the luxury resort now<br />
back in operations with an even greater offering of facilities<br />
and improved features than ever before. The resort now<br />
has additional units of two new triple-sharing bungalows<br />
that feature external shower bathrooms and a new duplex<br />
villa that can accommodate four persons. The island also<br />
now boasts a refurbished dive centre, a new windsurfing<br />
school and a new spa. The existing bungalows were also<br />
refurbished with new terraces and bathrooms, and features<br />
wooden floors and new decorations. And a chill-out corner<br />
cum bar is expected to be completed in September.<br />
Hilton Plans A Boost For<br />
Seychelles Tourism<br />
The Seychelles’ hopes of luring more tourists has been<br />
given a boost by Hilton Hotels’ plans to manage a<br />
refurbished US$53 million resort. The company is now<br />
searching for a second location on the Indian Ocean<br />
islands. The international chain will manage the five-star<br />
Northolme Hotel on behalf of Maldivian investors Crown<br />
and Champa, who bought and renovated the property late<br />
in 2005. The Seychelles wants to boost tourism revenues<br />
which accounted for 43 per cent of the country’s foreign<br />
exchange last year by attracting visitors seeking top-end,<br />
luxury hotels.<br />
Vietnam, Cambodia, Laos To<br />
Join Hands In Tourism<br />
The Tourism Department of Ho Chi Minh City (HCM<br />
City), the Tourism Ministry of Cambodia and the Lao<br />
National Administration of Tourism have agreed to<br />
jointly organize International Travel Expo-Ho Chi Minh<br />
City 2007 (ITE-HCMC 2007), themed “Three countries,<br />
one destination”, in HCM City, said the Deputy Director<br />
of the Ministry at the closing ceremony of ITE-HCMC<br />
2006. Expo 2007 will focus on three main issues: making a<br />
common kiosk of the three countries; organizing a seminar<br />
to introduce Indochina adventure tourism programs by<br />
land, sea and air; and publicizing the cultural values of the<br />
three countries. The three sides will report plans to their<br />
governments to hold the Expo in October 2007. For three<br />
days, ITE-HCMC 2006 attracted about 10,000 visitors,<br />
with over 1,000 meetings and business promotions among<br />
71 international tourism agencies and 140 companies.<br />
Shangri-la Named Best<br />
Business Hotel Brand In Asiapacific<br />
By Business Traveller<br />
Asia-pacific<br />
Asia Pacific’s leading luxury hotel group, Shangri-La Hotels<br />
and Resorts, was today named the Best Business Hotel<br />
Brand in Asia-Pacific for the sixth consecutive year in the<br />
Business Traveller Asia-Pacific magazine’s readers’ poll. In<br />
addition, the Shangri-La Hotel, Singapore was voted Best<br />
Business Hotel in the World, Best Business Hotel in Asia-<br />
Pacific and Best Business Hotel in Singapore. The Makati<br />
Shangri-La, Manila won Best Business Hotel in Manila and<br />
China World Hotel, Beijing won Best Business Hotel in<br />
Beijing.<br />
The poll was conducted among the magazine’s readership<br />
of frequent travellers based mainly in the Asia-Pacific<br />
region. Results were compiled by Taylor Nelson Sofres<br />
Hong Kong Limited and will be published in the October<br />
2006 issue of Business Traveller Asia-Pacific.<br />
Hong Kong-based Shangri-La Hotels and Resorts, Asia<br />
Pacific’s leading luxury hotel group, currently manages 49<br />
hotels under the five-star Shangri-La and four-star Traders<br />
brands, with a room inventory of over 23,000. The<br />
group has over 40 projects under development in Canada,<br />
mainland China, France, India, Japan, Macau, Malaysia,<br />
Maldives, Philippines, Qatar, Seychelles, Thailand, United<br />
Arab Emirates, United Kingdom and the United States.<br />
For more information and reservations, please contact a<br />
travel professional or access the website at www.shangrila.com.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1
16 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
MISCELLANEOUS<br />
Perchance to Dream - the Guest Room<br />
of the Future [Is it Already Here?]<br />
By John R. Hendrie, <strong>Hospitality</strong> Performance<br />
Once upon a time, our Guest was thrilled with a good<br />
mattress, a clean bathroom, and access to a pool. Room<br />
amenities and design were not a loss leader, for your<br />
prices reflected a recoup of the costs, minimal, as they once were.<br />
Then, the evolution began, and you had to be quite clever to gain<br />
and retain that competitive edge, cost effectively.<br />
You witnessed the changes. A simple tub begat a Jacuzzi,<br />
siring the Spa. Cable television accelerated into Movies on Demand.<br />
Complimentary coffee in the Lobby morphed into a coffee<br />
maker, a fridge and a microwave in every room. Rigid hours for<br />
Room Service are now 24/7 with pizza. You participated in the<br />
“bedding wars”, extolling your beds, linens, furniture. For some,<br />
a budding Cottage Industry was born - anything that moves is<br />
for sale.<br />
The Guest Room has become the haven, the Business Center,<br />
the Crash Pad, the Love Lair, the extant home away from<br />
home. You are doing everything you can to make it special, safe<br />
and memorable. But, the evolution continues, as you try to exceed<br />
the expectations of the Baby Boomers and the GenX’ers and the<br />
forthcoming generations on the horizon. Remarkable <strong>Hospitality</strong><br />
is a challenge!<br />
If you are not thinking about your lodging operation in the<br />
context of the future, you will not exist in that new world. Everything<br />
is changing too rapidly – your Guests, your business,<br />
your world. To be a pioneer is critical, and to move forward with<br />
advantage you must engage the following:<br />
• your Guest<br />
• your own brilliance<br />
• your suppliers/purveyors to the industry<br />
<strong>Your</strong> Guest wants their connectivity and pleasure in private<br />
and comfort in that amorphous domain we have so carefully created<br />
for them. They want it all, they want it now, and they want<br />
it their way! <strong>Your</strong> challenge is to marry a high level of service<br />
and product to technology, which is the driving force for this<br />
evolution.<br />
Ideally, you have a relationship with your Guest, and you have<br />
reliable mechanisms to assess your performance and to specifically<br />
capture what your Guest really desires for their experience<br />
in your operation. By the way, hand-written Comment Cards are<br />
not acceptable as you plot your future, for you have lost any real<br />
time response value.<br />
Do not underestimate the power and creativity of your own<br />
perspective, your management team and fellow associates. The<br />
challenge is that you need to take some time and think outside<br />
that four wall box. No excuses; you have all the time there is, and<br />
group exercises with no boundaries create energy, commitment<br />
and, surprisingly, some very fine ideas. Another ingredient is curiosity.<br />
If you are not well read and informed, you are operating<br />
in a vacuum (a Hooverite, gathering the detritus of the Past).<br />
So, now, believe you have some wonderful ideas, culled from<br />
your Guests and your own in-house resources. Some may sound<br />
far-fetched (akin to man on the moon), while others appear<br />
sound, reasonable applications. This is where we can turn to our<br />
partners, the vendors and purveyors. They share in your success,<br />
and they can help you actualize the possibilities.<br />
What is already in the marketplace is extraordinary. Naturally,<br />
security, privacy and reliability are crucial. Some companies are<br />
“cutting edge” with their products and acumen. What follows is<br />
not an endorsement, merely an acknowledgement of the “future<br />
being now”. One company I have watched, GBCBlue, features<br />
an automated Personal E-Room Concierge system, which simply<br />
beats the band! Beyond regular PC usage for the Guest, there is<br />
a screen entry to share with Management their thoughts about<br />
the stay. As it is real time, Management also has an opportunity<br />
to demonstrate active service recovery for any shortcoming/<br />
concern. The screen also has increased Room Service Revenue<br />
threefold, using appetizing pictures for all menu items. Additionally,<br />
there is wonderful opportunity to tout property amenities,<br />
activities and services, and make reservations and purchases<br />
– right there on the Room PC, real time, up close, interactive and<br />
personal. Guest pleasing, Management proceeds. WOW!<br />
As another example of the “future being now” pertains to<br />
the Green Movement and the very simple light bulb, which creates<br />
comfort and illumination, as we know. The Fresh BulbTM ,<br />
developed by Auro Technical Consumer Products and introduced<br />
to the industry by Pineapple <strong>Hospitality</strong>, is a titanium dioxidecoated<br />
fluorescent light bulb that consumes one-fourth the wattage<br />
of a regular light bulb—cutting lighting costs by as much<br />
as 77 %. The coating reacts with the fluorescent lighting when<br />
the bulb is turned on, eliminating room odors within minutes.<br />
Another certifiable WOW. Just imagine – good lighting, reduced<br />
costs and a clean smelling room.<br />
Innovation and creativity spur societies forward, and businesses<br />
which embrace a better way, anticipate and project the<br />
needs and wants of the marketplace, and invest in the vigor of<br />
their people prosper. <strong>Hospitality</strong> is not usually in the forefront<br />
for change. However, the world stage and unchartered events<br />
all challenge our comfort zone. We simply cannot afford to be<br />
complacent.<br />
Our Guests and Visitors are far more demanding than in<br />
the past. Ladling out the same old, same old simply does not<br />
cut it! Hopefully, the business of the summer months has been<br />
encouraging, and we will take some time to assess what we have<br />
learned from our Guests, tap ourselves and our resources for<br />
new ideas, and partner with companies which support our business<br />
to advance new generations of thought and product. The<br />
Guest Room is the lab; this is where new products are created<br />
for the comfort, security and sensibility of our raison d’etre – the<br />
Guest.<br />
John Hendrie, is CEO of <strong>Hospitality</strong> Performance, Inc., a full-service hospitality<br />
consulting company. With a strong background in <strong>Hospitality</strong>, Human Resources,<br />
Organizational Effectiveness, and Communications, John has devoted his career to<br />
establishing Standards of Excellence across varied businesses. For more information,<br />
please visit www.hospitalityperformance.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 17
MISCELLANEOUS<br />
Top 10 Quirkiest Hotels in the World<br />
by ehotelier.com<br />
Ice hotel in Quebec freezes out competition. The top<br />
10 quirkiest hotels was selected according to traveler<br />
popularity, and TripAdvisor editors.<br />
1. Have an Ice Stay: Ice Hotel Quebec-Canada, Quebec,<br />
Canada Breathtaking hotel made of ice, features an<br />
ice chapel, theme suites, an ice bar, and an art gallery -- with<br />
ice sculptures, of course. Activities include cross-country skiing,<br />
ice fishing, archery, snowmobiling, snow tubing and even<br />
dogsled driving. As one TripAdvisor traveler described, “It’s<br />
like sleeping in a 5-star igloo.” The “icetablishment” is only<br />
open from January to April, just don’t forget your parka and<br />
long johns.<br />
2. Jail House Rock: Malmaison Oxford Castle, England,<br />
U.K. Everything about the Malmaison Oxford Castle is<br />
authentic enough to make you feel as if you are in the confines<br />
of an actual prison, but with better company. Can a jail hotel<br />
be romantic? According to one TripAdvisor traveler, “My husband<br />
and I decided to ‘honeymoon’ at the Malmaison Oxford<br />
Castle, feeling that this magnificent converted prison would<br />
make a grand setting to begin our ‘life sentence’ together. It<br />
certainly did not disappoint.” The first U.K. prison to be converted<br />
into a hotel, rest assured the property was renovated to<br />
ensure for more comfortable accommodations.<br />
3. Smooth Sailing: Imperial Boat House, Ko Samui,<br />
Thailand With 34 authentic teakwood rice barges converted<br />
into land-locked luxury suites, the Imperial Boat House on the<br />
beach is nautical nirvana. The lavish outdoor pools are surrounded<br />
by a lush and lovely garden. As described by one<br />
TripAdvisor traveler, “The resort is really impressive -- beautiful<br />
landscaping and accents throughout.” A final touch-the<br />
remarkable beach-front, boat-shaped pool, features cannons<br />
-- no doubt, to keep the pirates at bay.<br />
4. Entertainment Extravaganza: Fantasyland Hotel &<br />
Resort, Edmonton,Canada With over-the-top fixtures<br />
and themed rooms, the Fantasyland Hotel and Resort is a shock<br />
to the senses. According to a TripAdvisor traveler, “It gives you<br />
the feeling that you’re somewhere totally different, and when<br />
it’s -30 C and there is tons of snow, this is the perfect escape.”<br />
Great for families, it boasts a 217,800 square-foot indoor water<br />
park, an indoor ice rink, indoor golf and you guessed it, indoor<br />
roller coaster ride. Why all the indoor activities? Remember<br />
this is Edmonton, not Ibiza.<br />
5. Tree-Top Tableau: Ariau Amazon Towers Hotel,<br />
Manaus, Brazil Seventy feet up into the tree-tops of the<br />
Amazon, the Ariau Amazon Towers Hotel features catwalks<br />
connecting the entire complex. Activities include a jungle walk,<br />
swimming with dolphins, a caiman hunt and even piranha fishing.<br />
The rooms are rustic, but in the opinion of one TripAdvisor<br />
traveler, “Wouldn’t some towering monstrosity of modern<br />
conveniences be somewhat incongruous in this setting?” Don’t<br />
be surprised to see a wide variety of flora and fauna in this<br />
authentic jungle environment, where it’s okay to hand-feed the<br />
monkeys and parrots.<br />
6. Desert Rose: Al Maha Desert Resort, Dubai, United<br />
Arab Emirates Unique in its setting in the middle of the<br />
Dubai Desert, the Al Maha Desert Resort is an oasis with luxurious<br />
accommodations, including private pools and an authentic<br />
“Bedouin” encampment design. Activities that might be<br />
hard-to-find anywhere else include sand dune driving, falconry<br />
and camel trekking, and the panoramic views of the Hajar<br />
Mountains are a sight to be seen. Oryx and gazelles are known<br />
to come around the rooms at night and drink water from the<br />
private swimming pools. As one TripAdvisor traveler noted,<br />
“There are lots of wild oryx roaming the grounds, which is<br />
nice, but also a bit scary when they’re blocking the path to the<br />
room.”<br />
7. Chief Light-Wallet: Wigwam Motel, Holbrook, Arizona<br />
Operating along the historic U.S. Route 66, the Wigwams<br />
are actually teepee-style, cement tents. The bargain motel<br />
features the authentic feel of a 50s desert town -- from the<br />
furniture, to the vintage cars in the parking lot, to the sounds<br />
of the old locomotive passing through town. The rates are also<br />
a blast from the past -- the average room costs about $45 a<br />
night. According to one TripAdvisor traveler, “By the way, the<br />
rate is for real ... the youngest son of the builder commented<br />
to me that they don’t make money operating the motel, they do<br />
it ‘as a sort of public service.’” Cash and credit only, wampum<br />
not accepted.<br />
8. Caveman’s Delight: Yunak Evleri, Urgup, Turkey<br />
Carved out of a stunning mountain-side cliff, the honeycombed<br />
hotel includes six cave houses, with rooms connected by narrow,<br />
maze-like passageways and stone stairways (think Land of the<br />
Lost, without the creatures). Decorated in Ottoman style, Yunek<br />
Evleri provides private patios offering dramatic views of the<br />
Turkish Mesa. As described by one TripAdvisor traveler, “You<br />
are then whisked to this serene land with its 7th century caves,<br />
outdoor archeological museums, and the best baklava ever.”<br />
9. Toro! Toro!: Quinta Real Zacatecas, Zacatecas,<br />
Mexico Built around a 17th century bullfighting ring, it’s no<br />
longer operational, so leave the red cape at home. The Quinta<br />
Real Zacatecas incorporates the feel of “Old Mexico,” with its<br />
colonial architecture. Beautifully illuminated at night, the hotel<br />
also faces the city’s ancient arched aqueduct and the local<br />
village’s quaint shops complete the unique experience. Be sure<br />
to enjoy the comfy robes ... as one TripAdvisor traveler suggested,<br />
“Do yourself a favor and buy their robes to take home,<br />
I didn’t and I have regretted it for seven years now.”<br />
10. Inn Vogue: Madonna Inn, San Luis Obispo, California<br />
Most often referred to as kitschy, perhaps the best description<br />
for the Madonna Inn comes from a recent TripAdvisor<br />
traveler, “It’s what happens when Barbie moves in with<br />
Barney Rubble, all pink and rock.” But that’s part of the charm<br />
of the Madonna. A garish, chalet-style inn, the hotel features<br />
45 rooms with varying themes and color schemes. To many<br />
travelers, an indescribably unique experience, perhaps the only<br />
thing you need to know is that there is a famous waterfall urinal<br />
in the men’s room.<br />
18 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 19
Hotel Waste Reduction:<br />
Facilities Management<br />
0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
ENVIRONMENT<br />
A<br />
property with 350 guest rooms can spend $300,000 per<br />
year on electricity, $50,000 on natural gas, and another<br />
$60,000 annually on water and sewer. Most properties<br />
have the potential to significantly reduce energy and water consumption<br />
without any impact on guest comfort. Simple management<br />
strategies like the ones presented here can reduce your<br />
utility bills by 30 percent or more while helping your facility<br />
become a better steward of the environment.<br />
Every watt of electricity that your property uses generates<br />
air pollution and hazardous waste. Every gallon of water<br />
depletes fresh water resources and generates waste water.<br />
On the other hand, every watt of electricity or gallon<br />
of water conserved saves money and conserves natural resources.<br />
The checklists below identify cost-effective activities that<br />
also conserve resources. If your property is not already conducting<br />
these activities, plan to incorporate them into your<br />
operations in the near future.<br />
In facilities management, conserving resources and saving money<br />
often go hand-in-hand. The following examples illustrate typical<br />
cost savings.<br />
●<br />
●<br />
●<br />
Switching from an incandescent to a compact fluorescent<br />
lamp can save over $50 per year.<br />
Replacing older, water-wasting showerheads with low-flow<br />
models can save over $3,600 per year.<br />
Installing low-flush toilet devices in older toilets can save<br />
over $5,800 per year.<br />
LIGHTING<br />
Lighting accounts for 30 - 40 percent of commercial electricity<br />
consumption.<br />
Lighting energy demand can be reduced through a combination<br />
of common sense conservation measures and use of energy-efficient<br />
lamps and fixtures, such as those described below.<br />
● Fluorescent Lamps. Use energy-conserving compact<br />
fluorescent lamps (CFLs) instead of incandescent lamps for<br />
general lighting that stays lit more than four hours per day.<br />
●<br />
Lighted Exit Signs. Use low-wattage lamps in exit signs<br />
instead of the more common incandescent lamps. Lightemitting<br />
diodes (LEDs) are the most energyefficient option,<br />
but CFLs are still an improvement over incandescent lamps.<br />
Although LEDs can cost over 50 percent more than low-wattage<br />
incandescent lamps, the payback period is less than one year and<br />
they last 10 times as long.<br />
The biggest savings come from annual energy costs: LEDs cost<br />
85 percent less to operate than incandescent lamps.<br />
● Motion Sensors or Timers. Install motion sensors or timers<br />
in meeting/conference rooms, linen closets, pantries, freezer<br />
units/storage areas and as outdoor lights; such lights can be<br />
set to go off after five to seven minutes of inactivity. Some<br />
ECO•LODGE•ICAL facilities have saved over 45 percent<br />
on annual energy costs using sensors in meetings rooms and<br />
storage areas.<br />
●<br />
●<br />
Task Lighting. In common areas, direct lighting on areas that<br />
need greater illumination to avoid over-lighting whole area.<br />
For additional information on lamps and fixtures, including<br />
product-specific recommendations, contact the following<br />
organizations:<br />
EPA’s Energy Star Program has technologyspecific fact<br />
sheets, case studies, and analytical and financial tools. Call<br />
(202) 775-6650 or (800) STAR-YES or visit www.energystar.<br />
gov.<br />
“ Some ECO•LODGE•ICAL<br />
facilities have saved over 45<br />
percent on annual energy costs<br />
using sensors in meetings rooms<br />
and storage areas. ”<br />
●<br />
●<br />
The National Lighting Product Information Program<br />
publishes technical reports and independent performance<br />
tests of brand name lighting products. To purchase these<br />
publications, fax the Lighting Research Center at (518) 276-<br />
2999 or visit www.lrc.rpi.edu.<br />
The Electric Power Research Institute (EPRI) also offers<br />
technology-specific reports. To order, call the EPRI<br />
Publications Distribution Center at (510) 934-4212 or visit<br />
www.epri.com.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1
ENVIRONMENT<br />
●<br />
●<br />
Equipment. Develop and implement a monthly cleaning<br />
and maintenance program for all equipment. This program<br />
should include calibrating ovens and checking pipes for<br />
leaks.<br />
Computerized Energy Management <strong>Systems</strong>. Larger facilities<br />
should consider installing direct digital control (DDC)<br />
systems to manage lighting and HVAC. These systems have<br />
three advantages over manual or pneumatic systems: they are<br />
more precise, less susceptible to defects in the control system,<br />
and more effective in identifying sources of problems. The<br />
greatest efficiencies are achieved using fan systems with<br />
variable speed drives.<br />
●<br />
●<br />
Lawns. Restrict lawn watering to mornings, evenings or<br />
nights to decrease water loss from evaporation and maximize<br />
effectiveness. Use sensors that turn off water systems when<br />
it is raining. Better yet, use soaker hoses which “sweat” water<br />
from the hose and deliver it directly to plant roots.<br />
Ground Cover. Plant ground cover that requires minimum<br />
maintenance and water.<br />
Calculate <strong>Your</strong> Energy Savings from Fluorescent Lighting Replacing<br />
a 75 watt incandescent bulb with a 15 watt fluorescent<br />
saves over $50 per year. The example below illustrates how to<br />
calculate lighting energy savings in your facility.<br />
MAINTENANCE AND HVAC<br />
A well-maintained property can save money, increase guest comfort,<br />
and even improve indoor air quality. Include the following<br />
activities in your maintenance schedule:<br />
● Filters. Clean permanent filters every one or two months.<br />
●<br />
●<br />
●<br />
●<br />
●<br />
Leaks. Check HVAC (heating, ventilation and air conditioning)<br />
system and other equipment yearly for coolant and air leaks,<br />
clogs and obstructions of air intake and vents.<br />
Cooling and Heating. Don’t cool or heat more than necessary,<br />
especially in unoccupied areas.<br />
Condensers. Clean air conditioner and refrigerator condensers<br />
at least every two years.<br />
Sunlight. Cover west and south facing windows during the<br />
summer, and let sunlight in during the winter.<br />
Fugitive Heat. Position heat-producing appliances (such as<br />
TVs and lamps) away from room thermostats. One watt of<br />
air conditioning is required to offset the heat of one watt<br />
of light. Thus, energy-saving lamps reduce air conditioning<br />
costs watt-for-watt.<br />
WATER CONSERVATION<br />
●<br />
●<br />
●<br />
●<br />
“ Clean permanent filters<br />
every one or two months.”<br />
Low-Flow Faucets. Retrofit or replace shower heads with<br />
low-flow devices, and install faucet aerators on faucets. Lowflow<br />
shower heads can save a hotel 10 gallons of water for<br />
every five minute shower. That means saving over $3,600<br />
annually if 100 people shower each day, and water and sewer<br />
costs are 1¢ per gallon.<br />
Low-Flow Toilet Devices. Install water conservation devices,<br />
such as toilet dams or flapper balls, in older, water-guzzling<br />
toilets. These devices can save four gallons or more per flush,<br />
translating into annual savings of over $5,800 if 100 guests<br />
flush four times per day.<br />
Full Loads. Operate clothes and dish washers only with full<br />
loads, and promptly repair all leaks.<br />
Wash Water. Wash clothes and linens in the coldest water<br />
that will do the job; hot water is usually only necessary for<br />
heavily soiled loads.<br />
To calculate cost of a single light bulb:<br />
(wattage of bulb) ÷ (1,000) x (hours per days in use) x (365<br />
days/year) x (cost per kilowatt hour)<br />
For example, the cost of a 75 watt bulb that burns 24<br />
hours per day and cost 10 cents per kWh (kilowatthour)<br />
would be calculated as follows:<br />
(75 watts) ÷ (1,000) x (24 hours/day) x (365 days/<br />
year) x ($.10/kWh) = $65.70 per year<br />
A 15 watt bulb used for the same purpose would cost<br />
over $50 less:<br />
(15 watts) ÷ (1,000) x (24 hours/day) x (365 days/<br />
year) x ($.10/kWh) = $13.14 per year<br />
To calculate cost savings, simply subtract the cost of<br />
the 15 watt bulb from the cost of the 75 watt bulb.<br />
$65.70 - $13.14 = $52.56 per year<br />
Conservation of energy and water can offer savings to properties<br />
of all sizes. The following examples illustrate cost-effective<br />
measures taken by small and large properties to benefit the<br />
environment. The Budget Host Inn in Kill Devil Hills, N.C., has<br />
12 employees, 40 rooms, and has made a concerted effort to address<br />
environmental issues. Motivated by potential cost savings<br />
and a desire “to help the community to protect the environment,”<br />
Marion Peterson, manager, led the effort to manage her facility<br />
more efficiently. Starting in 1993, The Budget Host Inn began<br />
replacing incandescent lights with compact fluorescent lamps in<br />
guestrooms and common areas of the inn. The hotel also installed<br />
motion sensors in some public areas and low-flush toilets,<br />
faucet aerators and low-flow shower heads.<br />
On a larger scale, a California Radisson hotel reported a 6.5<br />
percent decrease in monthly bills from installing water-saving<br />
shower heads, turning the hot water down slightly, and installing<br />
fluorescent lights. The facility saved $3,500 per month with<br />
minimal initial costs: $15 per shower head and a slight increase<br />
in light bulb expenditures. Similarly, the Grand Westin Hotel in<br />
Seattle, Wash., began saving $30,000 per month once it adopted<br />
an aggressive energy conservation program.<br />
This waste reduction fact sheet is one in a series produced by the N.C. Division of<br />
Pollution Prevention and Environmental Assistance (DPPEA) to assist the lodging<br />
industry and concerned professionals in efforts to reduce waste and enjoy the benefits of<br />
cost savings and a public image as environmentally responsible organizations<br />
22 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
MISCELLANEOUS<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 23
NEWS<br />
Financial Management Series X<br />
How to Reduce Costs<br />
Increasing profits through cost reduction<br />
must be based on the concept of an organized,<br />
planned program. Unless adequate<br />
records are maintained through a proper accounting<br />
system, there can be no basis for<br />
ascertaining and analyzing costs.<br />
Cost reduction is not simply attempting<br />
to slash any and all expenses unmethodically.<br />
The owner-manager must understand<br />
the nature of expenses and how<br />
expenses inter-relate with sales, inventories,<br />
cost of goods sold, gross profits, and net<br />
profits.<br />
Cost reduction does not mean only<br />
the reduction of specific expenses. You can<br />
achieve greater profits through more efficient<br />
use of the expense dollar. Some of the ways you<br />
do this are by increasing the average sale per customer,<br />
by effectively using display space and thereby<br />
increasing sales volume per square foot, by getting a<br />
larger return for your advertising and sales promotion<br />
dollar, and by improving your internal methods and procedures.<br />
Profit is in danger when good merchandising and<br />
cost control do not go hand in hand. A big sales volume<br />
does not necessarily mean a big profit, as one retailer,<br />
Carl Jones, learned.<br />
Jones’s pride was stocking stylish and well assorted<br />
lines of merchandise. Each year, sales volume increased.<br />
This increase was attributed to good merchandise which<br />
Jones felt took care of the steady rise in expenses.<br />
But Mr. Jones began to have doubts when he found it<br />
necessary to get bank loans more often than had been his<br />
practice. When he discussed the problem with his banker,<br />
Jones was advised to check expenses. As the banker said,<br />
“A large and increasing sales volume often creates the appearance<br />
of prosperity while behind-the-scene expenses<br />
are eating up the profit.”<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
FINANCE & ACCOUNTING<br />
Paying The Right Price<br />
<strong>Your</strong> goal should be to pay the right price for prosperity. Determining<br />
that price for your operation goes beyond knowing what<br />
your expenses are. Reducing expenses to increase profit requires<br />
you to obtain the most efficient use of the expense dollar.<br />
Look, for example, at the payroll expense. Salesclerks are<br />
paid to sell goods, and their productivity is the key to reducing<br />
the payroll cost.<br />
If you train a salesclerk to make multiple sales at higher unit<br />
prices, you increase productivity and your profits without adding<br />
dollars to your payroll expenses. Or, if four salesclerks can be<br />
trained to sell the amount previously sold by seven, the payroll<br />
can be cut by three persons.<br />
An understanding of the worth of each expense item comes<br />
from experience and an analysis of records. Adequate records<br />
tell what has happened. Their analysis provide facts which can<br />
help you set realistic goals, you are paying the right price for your<br />
store’s prosperity.<br />
Analyze <strong>Your</strong> Expenses<br />
Sometimes you cannot cut an increase item. But you can get more<br />
from it and thus increase your profits. In analyzing your expenses,<br />
you should use percentages rather than actual dollar amounts.<br />
For example, if you increase sales and keep the dollar amount<br />
of an expense the same, you have decreased that expense as a<br />
percentage of sales. When you decrease your cost percentage, you<br />
increase your percentage of profit.<br />
On the other hand, if your sales volume remains the same,<br />
you can increase the percentage of profit by reducing a specific<br />
item of expense. <strong>Your</strong> goal, of course, is to do both: to decrease<br />
specific expenses and increase their productive worth at the same<br />
time.<br />
Before you can determine whether cutting expenses will increase<br />
profits, you need information about your operation. This<br />
information can be obtained only if you have an adequate recordkeeping<br />
system. Such records will provide the figures to prepare<br />
a profit and loss statement (preferably monthly for most retail<br />
businesses), a budget, break-even calculations, and evaluations of<br />
your operating ratios compared with those of similar types of<br />
business.<br />
Break-even<br />
A useful method for making expense comparisons is break-even<br />
analysis. Break-even is the point at which gross profit equals expenses.<br />
In a business year, it is the time at which your sales volume<br />
has become sufficient to enable your over-all operation to<br />
start showing a profit.<br />
Once your sales volume reached the break-even point, your<br />
fixed expenses are covered. Beyond the break-even point, every<br />
dollar of sales should earn you an equivalent additional profit<br />
percentage.<br />
It is important to remember that once sales pass the breakeven<br />
point, the fixed expenses percentage goes down as the sales<br />
volume goes up. Also the operating profit percentage increases at<br />
the same rate as the percentage rate for fixed expenses decreases<br />
- provided, of course, that variable expenses are kept in line.<br />
Locating Reducible Expenses<br />
<strong>Your</strong> profit and loss (or income) statement provides a summary<br />
of expense information and is the focal point in locating expenses<br />
that can be cut. Therefore, the information should be as current<br />
as possible. As a report of what has already been spent, a P<br />
and L statement alerts you to expense items that bear watching in<br />
the present business period. If you get a P and L statement only<br />
at the end of the year, you should consider having one prepared<br />
more often. At the end of each quarter might be often enough<br />
for some firms. Ideally, you can get the most recent information<br />
from a monthly P and L.<br />
Regardless of the frequency, for the most information two<br />
P and L statements should be prepared. One statement should<br />
report the sales, expenses, profits and/or loss of your operations<br />
cumulatively for the current business year to date. The other<br />
should report on the same items for the last complete month or<br />
quarter. Each of the statements should also carry the following<br />
information:<br />
1. this year’s figures and each item as a percentage of sales.<br />
2.<br />
3.<br />
4.<br />
5.<br />
6.<br />
7.<br />
last year’s figures and the percentages.<br />
the difference between last year and this year - over or under.<br />
budgeted figures and the respective percentages.<br />
the difference between this year and the budgeted figures -<br />
over and under.<br />
average percentages for your line of business (industry<br />
operating ratio) when available, and<br />
the difference between your annual percentages and the<br />
industry ratios - under or over.<br />
This information allows you to locate expense variation in<br />
three ways: (1) by comparing this year to last year, (2) by comparing<br />
expenses to your own budgeted figures, and (3) by comparing<br />
your percentages to the operating ratios for your line of business.<br />
The important basis for comparison is the percentage figure. It<br />
represents a common denominator for all three methods. When<br />
you have indicated the percentage variations, you should then<br />
study the dollar amounts to determine what line of operative action<br />
is needed.<br />
“…determine whether<br />
cutting expenses will increase<br />
profits,…”<br />
Because your cost cutting will come largely form variable expenses,<br />
you should make sure that they are flagged on your P and<br />
L statements. Variable expenses are those which fluctuate with<br />
the increase or decrease of sales volume. Some of them are: advertising,<br />
delivery, wrapping supplies, sales salaries, commissions,<br />
and payroll taxes. Fixed expenses are those which stay the same<br />
regardless of sales volume. Among them are: your salary, salaries<br />
for permanent non-selling employees (for example, the bookkeeper),<br />
depreciation, rent, and utilities.<br />
Taking Action<br />
When you have located a problem expense area, the next step<br />
obviously is to reduce that cost so as to increase your profit. A<br />
key to the effectiveness of your cost-cutting action is the worth<br />
of the various expenditures. As long as you know the worth of<br />
your expenditures, you can profit by making small improvements<br />
in expenses. Keep an open eye and an open mind. It is better to<br />
do a spot analysis once a month than to wait several months and<br />
then do a detailed study. Take action as soon as possible. You can<br />
refine your cost-cutting action as you go along.<br />
Reprinted with permission of www.youngentrepreneur.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 25
26 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
FOOD & BEVERAGE<br />
The Food Cost Percentage - Decomposed<br />
Too much attention is placed on inventory accuracy. Most<br />
people miss the finer points of determining their food<br />
cost percentage. Clearly, the sales figure which dominates<br />
the formula should take center stage. A very close second is the<br />
purchases figure. The inventory obsessed need to take a different<br />
view.<br />
Many hotels and restaurants count monthly (or every four<br />
weeks) and I see too much emphasis on inventory valuation. The<br />
impact of inventory change depends on the time period. Monthly<br />
values should be reasonable given the day of week and time of<br />
year. The change in the inventory value (i.e. beginning minus ending)<br />
hardly matters once a period of 90 days is considered.<br />
Inventory is very important in a weekly analysis and all important<br />
in a daily calculation. If you’re researching a problem and<br />
perform daily calculations you need to be very exact.<br />
The wonderful POS systems available today from the best<br />
companies provide a bundle of sales analysis. My favorites are<br />
check average and covers by meal period. I break down sales using<br />
a simple matrix with a row for each meal period and columns<br />
for covers, check average and sales.<br />
On the purchases side, I break down the purchase data using<br />
a larger matrix with rows for each key item and grouped data for<br />
low impact items by category. The columns include units, average<br />
cost and total cost.<br />
For the inventory, I prefer a simple inventory change figure.<br />
One number is fine. Simply subtract the current period’s value<br />
from the previous period’s value. The net value should be a reasonable<br />
and consistent estimate. Don’t count WIP inventory one<br />
period and eliminate the figure the next period.<br />
Some quick checks on inventory value by location and category<br />
will provide enough information to locate the flour extended<br />
by case price when the count team used pounds. Perform a<br />
simple analytical review and correct major errors.<br />
by Joe Dunbar<br />
Many operators give no credit for highly perishable items like<br />
bread, fresh fish and other items specific to the operation. This<br />
helps to avoid over buying since the items are expensed immediately.<br />
Inventory valuation should not be the reason for a good<br />
or bad food cost percentage in any given period. Any operation<br />
which runs a hi-low pattern or a low-low-hi pattern has a<br />
far greater problem. These patterns typically point out cost control<br />
weaknesses. Someone is trying to hide the truth. I have seen<br />
plenty of inventory extensions with a spice valued at $1,000 plus.<br />
The people presenting these reports may be both incompetent<br />
and dishonest.<br />
“ The net value should be a<br />
reasonable…”<br />
Look long and hard at sales trends by meal period. Some operations<br />
run lunch menus with higher implicit costs. If the lunch/<br />
dinner ratio changes, the food cost will be impacted. Extremely<br />
high or low counts will have a major impact as well.<br />
Most of the real action will be in purchases since the money<br />
you spend with your suppliers is your cost. Highlight dramatic<br />
price changes on any key item. Look for flaws in your ordering<br />
strategy. Compare figures from one period to the next and over<br />
the long term.<br />
If you focus on sales and purchases, food cost percentage<br />
surprises will be fewer and more positive.<br />
Joe Dunbar Dunbar Associates 11350 Random Hills Road Suite 800 Fairfax,<br />
VA 22030 800-949-3295 jdunbar401@aol.com http://foodcostcontrol.blogspot.<br />
com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 27
SPA<br />
How to Use Spa Industry Statistics as<br />
a Business Tool<br />
Why Spa Businesses Need Spa Industry Statistics<br />
by Julie Garrow, Managing Director of Intelligent Spas<br />
Like any other small, medium or large business, it is imperative<br />
that analysis and planning activities be conducted to<br />
minimise the risk of failure. One of the first questions to<br />
ask yourself is “how is my business doing?” and this can easily be<br />
answered by comparing your spa’s performance against industry<br />
averages. The overall industry average for your country is a useful<br />
guideline, however where the survey response rates are high<br />
enough, industry averages may be broken down further to enable<br />
more accurate analysis by calculating, for example, industry<br />
averages for your particular type of spa and industry averages<br />
for your spa’s specific location.<br />
Unique and common facilities and service offerings<br />
may also be measured and analysed to assist the planning<br />
for the business’ future. Consider: At what point<br />
does a facility or service offering change from a consumer<br />
novelty to a consumer expectation? If for example,<br />
a high proportion of spas offer a relaxation room, one<br />
may assume as spa consumers become more experienced,<br />
they may come to expect a relaxing area within a spa and be<br />
disappointed if they do not have the opportunity to enjoy<br />
that type of facility before and/or after their spa<br />
treatment.<br />
28 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SPA<br />
Spa businesses that do not offer a relaxation area may decide<br />
to redesign their space to incorporate a relaxation area, aiming to<br />
increase and maintain competitiveness, retain existing clients and<br />
attract new clients.<br />
From the industry perspective, if a small proportion of spas<br />
offer a facility or service, is it a unique differentiator which they<br />
may promote to attract more visitors? For example, if only 7% of<br />
spas offer a plunge pool, do they have a competitive advantage?<br />
Could your spa business benefit from introducing new facilities<br />
or services that are currently not very common in your market<br />
place?<br />
In order to attract visitors, it is critical spa businesses offer<br />
facilities, treatments, services and products which consumers expect<br />
and prefer. Study the industry benchmarks to fill in gaps in<br />
the spa’s offerings and ensure spa menus, other printed collateral<br />
and web sites effectively promote all of the offerings so the spa<br />
does not fail a “paper” or “internet-based” evaluation by potential<br />
clients.<br />
Another purpose for industry research is to identify new industry<br />
trends, which you may choose to, or not to, adopt, depending<br />
on the business opportunity for your spa business. The trend<br />
must comply with the vision, concept and brand image of your<br />
spa, so for example, you may choose not to address the trend<br />
of “more males visiting spas”, instead specialising in women’s issues<br />
and related therapies to create a higher level of expertise and<br />
reputation for such services, in comparison to your competitors<br />
who may target both female and male clients.<br />
“ …existing businesses can act to<br />
retain existing clients by ensuring<br />
service standards are high and their<br />
offerings are effective and relevant to<br />
their clients’ needs. ”<br />
New spa developments may also use the industry statistics to<br />
assist the concept design and planning of a new business. This is<br />
often seen as a negative for existing survey participants, however<br />
the availability of industry statistics may actually benefit existing<br />
businesses as new entrants easily identify where the market is currently,<br />
or potentially saturated, and choose a different concept<br />
and path by offering alternative services. This also benefits the<br />
new entrant by offering complementary services, rather than the<br />
same services, and attempting to displace clients from existing<br />
spas. Any new entrant into the market may be challenging, however<br />
existing businesses can act to retain existing clients by ensuring<br />
service standards are high and their offerings are effective and<br />
relevant to their clients’ needs.<br />
Why Suppliers, Financial Institutions, Associations, Tourism<br />
Authorities and Other Related Organisations Need Spa Industry<br />
Statistics<br />
Over recent years, there has been a lot of hype about the<br />
spa industry which has generally been positive for spa businesses<br />
in terms of generating visits. However the downside of hype<br />
without accurate facts is that suppliers, financial institutions, associations,<br />
tourism authorities and related organisations cannot<br />
support the industry effectively. Industry statistics give these related<br />
organisations the necessary inputs for their own business<br />
analysis and planning activities and it is very challenging for these<br />
organisations to commit to the spa industry without supporting<br />
information. For example:<br />
Suppliers - design and develop relevant products and equipment to<br />
support spa business;<br />
Financial institutions - approve loans for new spa businesses or<br />
expansion of existing spa businesses to realise business visions;<br />
Associations - rally government and suppliers for industry incentives<br />
and group discounts to minimise spa business costs; and<br />
Tourism authorities - allocate funds for spa industry marketing and<br />
awareness campaigns to increase spa visits.<br />
The Connection Between Spas and Tourism<br />
Domestic and international tourism statistics are included to<br />
illustrate the volume of travellers and the incremental spa visits<br />
which may be possible by effectively using relevant channels to<br />
promote spa services and spa products.<br />
Destination spas are close to tourists, given their integration<br />
with accommodation facilities, and have a great opportunity to<br />
maximise spa visits.<br />
Day spas may also tap into this market segment through cooperative<br />
marketing campaigns with nearby hotels (Source: Intelligent<br />
Spas, Spa Integration for Hotels, Resorts, Serviced Apartments<br />
and Similar Facilities).<br />
Julie Garrow, Managing Director of Intelligent<br />
Spas represented three of the big four<br />
global tourism, leisure and hospitality consulting<br />
firms in Australia and Singapore between<br />
1992 and 2001 and draws on over seventeen<br />
years research experience from both industry<br />
and consulting perspectives.<br />
Intelligent Spas is an independent research<br />
company specializing in the spa industry.<br />
Founded in Singapore in 2001, it has pioneered<br />
spa industry research in the Asia Pacific region<br />
and continues to publish a range of Spa Business<br />
& Operations Manuals, Spa Consumer<br />
Surveys and Spa Industry Surveys to assist the<br />
development and growth of this niche industry. Intelligent Spas<br />
provides research which businesses find logistically and financially<br />
impossible to collect.<br />
Independence Defined...<br />
Intelligent Spas is unique as it offers a completely independent<br />
view of the spa industry. All our research is self-funded and Intelligent<br />
Spas:<br />
1.<br />
2.<br />
3.<br />
4.<br />
●<br />
●<br />
●<br />
●<br />
Does not conduct consulting studies for individual<br />
businesses;<br />
Does not form alliances with third parties;<br />
Does not have interests in other businesses; and<br />
Is not influenced by members, committees or sponsors.<br />
This independence policy ensures the confidentiality of all<br />
individual survey responses submitted is maintained, and publications<br />
are prepared without bias and for the benefit of all members<br />
of the spa industry.<br />
For more information, please visit www.intelligentspas.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 29
30 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 31
FINANCE & ACCOUNTING<br />
32 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HUMAN RESOURCES<br />
Bringing Out the Best in People [Part 1]<br />
by Chris Longstreet, CHA<br />
Recently, we moved our SHM office, and, during the process<br />
I came across a book I read in college that I promised<br />
I would never throw away or get rid of. The book is entitled<br />
Bringing Out the Best in People:<br />
How to Enjoy Helping Others Excel by Dr. Alan Loy Mc-<br />
Ginnis.<br />
“Have you ever wondered at the way certain people bring out<br />
the best in others? They seem to know how to get an extra effort<br />
from the people they lead. We have all known them – some are<br />
teachers or heads of companies, others are baseball managers or<br />
mothers. Frequently without good looks or extraordinary intelligence,<br />
they seem to possess a knack for inspiring people. And<br />
this remarkable skill at the art of motivation makes them highly<br />
successful at almost everything they do.”<br />
Look back over your career. Who motivated you? Who<br />
brought out the best in you? Which managers, which leaders,<br />
seemed to bring out the best in the people they served?<br />
In his book, Dr. McGinnis outlines twelve rules for bringing<br />
out the best in people. These principles can be applied to any<br />
team you lead: the front desk, the sales department, housekeeping,<br />
servers, the kitchen, or even the management team of your<br />
hotel or restaurant.<br />
These skills are valuable in creating a motivational environment<br />
where your employees want to work and feel the can contribute<br />
to the success of your organization.<br />
In part one of this three-part article, we look at the first four<br />
rules and how we can apply them to the environments in which<br />
we work.<br />
Rule 1 - Expect The Best From<br />
the People You Lead<br />
In the musical My Fair Lady, Eliza Doolittle<br />
is transformed from an uneducated<br />
woman to a sophisticated lady. One of the<br />
famous lines of the play, Goethe makes<br />
a bold statement about human nature:<br />
“Treat a man as he appears to be and you<br />
make him worse. But treat a man as if he<br />
already were what he potentially could be,<br />
and you make him what he should be.”<br />
Do you expect the best from the people<br />
you lead? Or do you settle for what they give you and find<br />
other solutions to improving the service provided to your guests<br />
and patrons?<br />
In the hospitality classes I teach, we discuss motivational theories<br />
and strategies. One theory, the Pygmalion Effect, states that<br />
the expectations your employees have of themselves determines<br />
how they will perform. If we expect great things as managers,<br />
great things will happen. If we accept and expect average performance,<br />
average performance is what we will get. By emphasizing<br />
the positives and what employees can do, employees will<br />
believe in themselves and perform at higher levels. To do this, we<br />
must communicate our belief in their skills and abilities. Setting<br />
high performance and quality standards and communicating to<br />
your team so that they can achieve them will yield positive results.<br />
Housekeepers will clean rooms to the cleanliness levels you set.<br />
Servers will up-sell menu items because you set the standards<br />
and expectations high. Positive expectations can yield positive results.<br />
Unfortunately, when people become managers or leaders<br />
within an organization, they immediately feel like a police officer<br />
and must watch every employee move to make sure standards are<br />
being met. This watchdog role is looking for failure and creates<br />
an adversarial relationship between management and line employees.<br />
Good managers, on the other hand, look for the strengths in<br />
employees and discover ways to encourage the skills and abilities<br />
of each person. If we expect good things from our employees, in<br />
most cases they take great strides in meeting those expectations.<br />
If we expect the worse, they will meet those expectations and<br />
continue to disappoint us with their performance.<br />
Rule 2 – Make a Thorough Study of the Other<br />
Person’s Needs<br />
One of the more enjoyable parts of teaching at the college level<br />
is working with students and helping them discover what excites<br />
them about the hospitality industry. When a student makes a true<br />
connection with their passion for what they want to do, it is easy<br />
to push them to succeed. Their interest level is higher when studying<br />
as they develop a passion for what they are studying. The fear<br />
of pleasing other people, like parents, disappears and the passion<br />
for discovering success becomes so clearly apparent. Whether it<br />
be working for a baseball park in the minor leagues, becoming a<br />
leader in the housekeeping department, or working toward a vision<br />
of owning a restaurant or club, discovering what a student<br />
wants makes the educational experience far more motivating for<br />
both the student and the instructor.<br />
“ The fear of pleasing other people, like<br />
parents, disappears and the passion for<br />
discovering success becomes so clearly<br />
apparent. ”<br />
McGinnis says, “Too many leaders ignore this essential early<br />
step.<br />
They see motivation as mere hype – slapping people on the<br />
back and giving rah-rah pep talks. But it is more than hype. A good<br />
motivational plan must be as carefully fitted as a designer dress.<br />
We must ask a lot of questions about where people have been<br />
and where they are going, what they believe, what are their sore<br />
spots, what they love and what they hate. In other words, we must<br />
make an inquiry into people’s present need systems.”Motivation is<br />
therefore situational. It is unique to each person. Sarah, a server,<br />
has a different set of needs than Darren, the line cook. Tamyra,<br />
the housekeeper, is motivated differently than Gerard, the maintenance<br />
engineer. What motivates you is different than what motivates<br />
the employees you lead or the person you report to.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 33
HUMAN RESOURCES<br />
How do we study these needs in the work place? We talk<br />
to our employees. We ask questions during performance reviews<br />
and interviews that give us a clue as to what our employees feel,<br />
believe, and value. We sit at breaks and listen. We ask questions.<br />
We seek information. We talk and get to know our employees. We<br />
have staff meetings where people have a chance to voice ideas<br />
and opinions. By doing this, we can more clearly identify individual<br />
needs and use them in creating a motivational environment<br />
for them to work in. Motivation is more than hype – more than<br />
just pulling a rabbit out of a hat<br />
Rule 3 – Establish High Standards of Excellence<br />
“So far,” says McGinnis, “I have been saying that the best way<br />
to bring out the best in people is to treat them in a positive, encouraging<br />
manner, capitalize on their gifts, and begin with their<br />
present needs and desires. But that does not mean that the good<br />
motivator is soft. To the contrary, most highly motivating leaders<br />
are hard as nails on standards of excellence. They hold to<br />
certain values tenaciously, and they set out to build a group of<br />
like-minded persons who share those values.”<br />
The best-run restaurants, the best-run hotels, the best-run<br />
food service facilities allow for individuality in their teams while<br />
enforcing certain standards. It is important that restaurants and<br />
hotels set standards and enforce them.<br />
While working for a family-style restaurant in college, I<br />
worked for a company that had very few standards. Each manager<br />
did what they thought was right. I worked hard to make sure<br />
that the dining room was set the same way each night I closed so<br />
the opening team would see the difference.<br />
Rule 4 – Create An Environment Where Failure is<br />
Not Fatal<br />
People handle failure in different ways. Failure, in some cases, is<br />
motivational and ignites a fire within to learn and not repeat mistakes.<br />
Others, however, start with such great energy only to have<br />
the motivational fire extinguished after one failure or miscue.<br />
What we want in our organizations are people who, when they<br />
stumble, pick themselves up, learn from their mistakes, and move<br />
on to finishing the task at hand. If we as managers in the hospitality<br />
industry can help our employees handle failure effectively,<br />
we will create an environment that is motivating and encourages<br />
high performance.<br />
A student who worked at a theme park one summer told<br />
me how one of the worst managers he worked for followed him<br />
around and regularly pointed out all the faults in the performance<br />
of his job duties. Many times he heard the phrase, “If you don’t<br />
get it right, I’m firing you!”<br />
Managers are faced with a unique challenge: creating high<br />
expectations and expecting high performance<br />
while still tolerating failure at times. Harshly criticizing a new<br />
employee for not performing a task correctly will only create a<br />
feeling of defeat and discouragement. Effective managers use<br />
whatever tactics are necessary to help employees identify the failure,<br />
what the cause is, learning from the mistake, and moving on<br />
to a higher level of performance. At times, we may need to cheer<br />
them on to try harder.<br />
Other times we may have to simply push them back into a<br />
position forcing them to start over and create a series of successes<br />
that will instill confidence.<br />
“ A chain of 14 restaurants<br />
failed, in part, because<br />
there were no standards<br />
for managers to follow and<br />
employees to work towards. ”<br />
Employees thought I was making them do extra work. The<br />
problem was that no other managers were setting the same standards<br />
that I was using. Today, this company no longer exists. A<br />
chain of 14 restaurants failed, in part, because there were no standards<br />
for managers to follow and employees to work towards.<br />
Employees like to have clear-cut objectives that are attainable.<br />
We can’t as managers set out standards so high that our employees<br />
can’t achieve them or are always falling short. People want<br />
to have their skills and abilities challenged and tested – stretched,<br />
so to speak – but they must have regular successes to feel that<br />
their efforts are valued.<br />
McGinnis concludes this rule by communicating an important<br />
lesson: “In pressing for excellence, we must be careful to<br />
have goals that are both challenging and realistic, and we must<br />
devise a graded progression of objectives so that our people can<br />
enjoy the regular feedback of success.”<br />
Conclusion<br />
Do you:<br />
1. Expect the best from your employees and those you lead?<br />
2. Understand the needs of your employees and use this<br />
information to create an environment that builds their<br />
motivation?<br />
3. Establish standards of excellence that are attainable for your<br />
employees and those you lead?<br />
4. Create an environment where failure isn’t fatal?<br />
Evaluate your own performance in these areas. Next week, we<br />
will continue with the rules for bringing<br />
out the best in people.<br />
Chris Longstreet is President & CEO of the Society for <strong>Hospitality</strong> Management.<br />
He also serves as a visiting instructor for the <strong>Hospitality</strong> & Tourism Management<br />
Program at Grand Valley State University. For more information, visit the SHM<br />
website at hospitalitysociety.org or contact Chris at clongstreet@hospitalitysociety.org<br />
34 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 35
FINANCE & ACCOUNTING<br />
The Politics of Revenue Management<br />
No, it’s not the systems that are holding so many hotels back<br />
from succeeding, but rather the people and their corporate poliby<br />
Douglas Kennedy<br />
How interesting it has been for seasoned hospitality executives<br />
to witness firsthand the emergence of the profession<br />
of revenue management, and simultaneously, the<br />
significant improvements in revenue per available room our industry<br />
has achieved these last 20 or so years. Yet as far as we<br />
have come as an industry, most revenue-management visionaries<br />
agree that we have so far actualized only a small percentage of<br />
industry’s potential benefit. Despite an up market, there is still far<br />
too much money being left on the table by hotels that have failed<br />
to actualize their revenue optimization potential.<br />
While it is true that overall most hotels do a good job at yielding<br />
their transient market segments and are increasingly aware of<br />
the costs of distribution according to channel, not enough are:<br />
●<br />
●<br />
●<br />
●<br />
●<br />
●<br />
Applying revenue management principles to group bookings,<br />
such as factoring-in the often-overlooked distribution costs<br />
of this “channel.”<br />
Integrating revenue management technology with CRM<br />
processes and systems.<br />
Using dynamic pricing for corporate and wholesale<br />
channels.<br />
Auditing actual room production midyear, versus annually,<br />
and adjusting rates/terms accordingly for key accounts.<br />
Employing channel conversion techniques to encourage<br />
guests to book directly next time through less costly<br />
channels.<br />
Training reservations agents to understand and execute<br />
pricing strategy and to maintain the various “fences” that<br />
exist around rates without creating ill will.<br />
In making the rounds on the conference circuit these days, it<br />
seems to me there’s a huge discrepancy between the way revenue<br />
management is practiced between hotels and hotel companies.<br />
On one side of the equation, you have hotels that have embraced<br />
revenue management as an integral part of their entire corporate<br />
culture; besides having a director of revenue, you also have a general<br />
manager, director of sales, and the even ownership/investment<br />
stakeholders understanding that how fundamental revenue<br />
management principles impact financial performance.<br />
At the other extreme, you have other hotels and hotel companies<br />
that still believe that revenue management is nothing more<br />
the new title of their old reservations manager, who is now in<br />
charge of managing electronic distribution channels since reservations<br />
was outsourced. Why this discrepancy? How is it that<br />
some company cultures have evolved while others have been<br />
stuck in their past ways?<br />
“…revenue management is<br />
both an art and science, ”<br />
It’s been said that revenue management is both an art and science,<br />
but perhaps we should say revenue management is mostly<br />
about political science. In today’s industry environment, most<br />
financially successful hotels have the necessary technology to<br />
forecast demand, manage their inventory, and adjust to changing<br />
trends in the market as they are emerging. Those that don’t no<br />
longer have an excuse, as there is a wide variety of supplier/partners<br />
who are marketing systems of all levels of sophistication,<br />
according to the property’s needs and budgetary constraints.<br />
36 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
tics. It’s the director of sales who stands up at the end of the<br />
revenue management meeting and says, “Yeah, but I still think<br />
we should take them because it’s a sure thing,” after the transient<br />
displacement report and banquet-room demand forecast both indicate<br />
the dates are peak demand. It’s the general manager who<br />
sits atop an org-chart where the revenue management is an assistant/supervisor<br />
level staff member. It’s the vice president of<br />
operations who still thinks that revenue management is a person<br />
rather than a core hotel management function crossing all disciplines<br />
within his or her company. It’s the owner/investor who<br />
doesn’t see the need to pay for the competitive-set pricing reports<br />
on the market these days and says “Why can’t they just check the<br />
Web and call around themselves?”<br />
To remove these barriers, we first of all need capable revenue<br />
management professionals who possess the analytical skills necessary<br />
to collect and evaluate myriad reports and data resources and<br />
to make sound revenue management decisions, which are already<br />
highly coveted skill sets in the labor market. But we also need revenue<br />
management professionals who are able to bring more than<br />
the numbers to the revenue meeting and can convincingly present<br />
their paradigm and convince others of its validity.<br />
So how can we help our revenue management professionals<br />
prepare themselves for dealing with the political side of revenue<br />
management? Here are some suggestions:<br />
●<br />
●<br />
●<br />
●<br />
●<br />
●<br />
Make sure you have a reporting structure that gives your<br />
director of revenue management (DORM) the necessary<br />
authority to execute their strategies.<br />
Avoid becoming “ethno-centric” regarding your company’s<br />
revenue management’s philosophies.<br />
Encourage your DORM to network with their colleagues at<br />
conferences and meetings at the regional/destination level as<br />
well as within the brand/company if applicable.<br />
If necessary, encourage them to build their presentation<br />
skills by attending organizations such as Toastmasters<br />
International.<br />
Purge your company culture of old-school bias towards<br />
certain market segments or distribution channels; if there’s a<br />
new way to make more GoPAR (Gross Operating Profit Per<br />
Available Room) then be open to it.<br />
Educate owners and investors, because the key to a functional<br />
and healthy revenue management corporate culture is an<br />
appreciation of the concepts at the ownership levels.<br />
Finally, if you are looking to looking to help your DORM get<br />
to the next level, you’ll definitely want to encourage join to participate<br />
in HSMAI’s revenue management special interest group.<br />
By attending this association’s annual strategy conference, (scheduled<br />
this year on June 19 in Minneapolis), or by participating in<br />
one of the regional workshops or Webinars to be presented by<br />
HSMAI University, you’ll make sure they are exposed to the latest<br />
suggestions and ideas of their piers. See www.revmanagement.<br />
org for more details about this association and its events.<br />
By supporting your DORM and giving them the tools they<br />
need to succeed, you’ll not only by winning at the politics of Revenue<br />
Management, but you’ll also make sure that your hotel has<br />
the right numbers when the “results are in.”<br />
Doug Kennedy is the owner of The Douglas Kennedy Company. He delivers keynote<br />
addresses and conference presentations for lodging and tourism organizations,<br />
and provides sales and training consulting services. For more information visit www.<br />
douglaskennedy.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 37
HUMAN RESOURCES<br />
Corporate Orientation Programs<br />
Retaining Great People Begins Before Day One<br />
by Denise Moretti<br />
The Hamister Group Corporate success depends<br />
upon having a tight group of people united by<br />
the common goal of accomplishing great<br />
things. The best way to accelerate the period<br />
of time necessary for new co-workers to feel<br />
a part of your team is to implement an effective<br />
orientation program. You hired<br />
these individuals because you thought<br />
they would be great assets to your department<br />
and a competitive advantage<br />
to your company. So take the time to<br />
develop an orientation program that<br />
will allow both of you to begin your<br />
new journey together on the right foot.<br />
Here’s how:<br />
Eight Keys to an Effective Orientation<br />
Program :<br />
1. Prepare. Have a designated person or<br />
HR team that prepares all paperwork, handbooks,<br />
workbooks, and minor details before<br />
hand. This will ensure that you are organized and<br />
consistent. Minor details may include: making sure<br />
that office/desk areas are clean, supplies ready, computer<br />
set-up, telephone programmed, name badge made, etc.<br />
2. Provide an itinerary. Prepare an agenda from start to finish,<br />
including meet and greets with other co-workers, informational<br />
sessions with key players, etc.. By completing these<br />
basic tasks BEFORE the first day you show new employees<br />
that you are ready and eager for their arrival.<br />
3. Get the word out. Send out an e-mail informing your<br />
current co-workers who the new employees are, where they<br />
are from, what position they will be assuming, as well as some<br />
background information.<br />
4. Details, Details, Details. Send essential information to<br />
the new co-workers’ homes before the first day. Welcome<br />
them to the company and provide them with details regarding<br />
their orientation. Make them feel as comfortable as possible.<br />
Inform them of simple things, such as: where to park, what<br />
door to go in, whom to ask for when they arrive, what room<br />
the orientation session is in, etc.. Little things like this lessen<br />
first-day anxiety.<br />
5. Mix it up. Have more than one “presenter.” There<br />
is nothing worse than sitting in an orientation session for 8<br />
hours straight with the same person: your audience will lose<br />
interest and won’t retain information. Involve technology<br />
and different modes of communication. For example, rotate<br />
between videos, PowerPoint presentations, talking/conversation,<br />
etc..<br />
6. Avoid information overload. Spread the orientation program<br />
out over a 2 to 3 day period, maybe even longer. Don’t<br />
focus on every little detail, but provide general overviews; the<br />
new co-worker will take in more specific information during<br />
the on-the-job training process.<br />
7. After the fact. Have something that new-hires can take<br />
home and review. It should contain the majority of the<br />
information conveyed during the orientation. This will allow<br />
them to re-examine what they have learned and determine any<br />
questions they might need to ask.<br />
8. Evaluate. Have a feedback mechanism in place, such<br />
as a written evaluation form, that the new co-worker can<br />
complete. This tool will help you continually improve your<br />
orientation program.<br />
Development and implementation of an effective orientation<br />
program is a challenge, but one that should be of high priority,<br />
as well as a team effort. I pride myself in watching others succeed<br />
because they were provided with the necessary tools and<br />
resources. Do it right the first time by making new co-workers<br />
feel welcome and prepared, even before their first day!<br />
The Hamister Group, Inc. is a rapidly growing hotel management company. A leader<br />
in assisted living and health care management for over 25 years, the company now<br />
manages fi ve hotels in Tennessee and Kentucky.<br />
3 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 3
SERVICE<br />
The Hotel Butler<br />
Recognizing the Value Butlers<br />
Bring to the Bottom Line<br />
by Prof. Steven Ferry<br />
We all know the cliché, but what did the do that made<br />
him so uncharacteristically the focus of attention? In<br />
movies and board games, he generally is the one the<br />
police want to question further. In the hotel environment, the<br />
butler has turned out to be either a failed and somewhat embarrassing<br />
experiment, or the ultimate offering in Guest Services that<br />
helps keep high-rack occupancy rates at 100%.<br />
Where the butler concept fails, it is because he (or she) is<br />
cast in (frankly) degrading-to-the-profession roles such as ‘bath<br />
butler,’ ‘fireplace butler, ‘technology butler,’ ‘baby butler’ (who<br />
provides rocking chairs and watches children), ‘dog butler,’ ‘ski<br />
butler,’ and ‘beach butler.’ The idea being, apparently, that anything<br />
offering superior service in some small area is called ‘a butler’<br />
in an effort to siphon some of the prestige of the profession.<br />
At best, the idea is myopic, at worst, self-defeating.<br />
40 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SERVICE<br />
At least when the term valet was extended to ‘dumb valet,’<br />
that furniture item upon which one lays out clothing for the following<br />
day, there was no pretence that this was the real item. Fortunately<br />
for the profession, the public were not fooled or taken<br />
in by these ‘dumb butlers’ and the practice has faded relatively<br />
rapidly-hopefully before it soured guests on the value of being<br />
serviced by (real) butlers in hotels. And fortunately so for the<br />
butlers working in top hotels around the world, who do justice to<br />
the profession, and the hotel managements who have recognized<br />
the value butlers bring to the bottom line and the repute of word<br />
of mouth for their establishments.<br />
In an industry that is completely premised on the idea of service,<br />
and in which service is a key differentiator, it’s a no-brainer<br />
to institute butler service. Butlers have always represented the<br />
pinnacle in service quality. After the initial required training, the<br />
running of a butler service is not much more expensive to provide<br />
than regular service, yet it allows rack rates to be raised and<br />
creates a loyal following of repeat visitors, as well as enhancing<br />
word of mouth and thus new business that make the investment<br />
most sound.<br />
Instituting butler service can be done gradually, perhaps instituting<br />
it on one floor, and at not such a great cost, especially<br />
when considering the return on investment. Fifteen rooms can be<br />
well serviced by four butlers on three shifts, for instance, with one<br />
of them assigned as Head butler. If service is to be 24-hour, then<br />
a fifth butler would be needed.<br />
Assuming an owner or manager decides to institute butler<br />
service, the next question is, ‘How?’<br />
The first step is to bring on board the most service-minded<br />
of your employees to undergo training. The second: Bring in one<br />
of the handful of<br />
butler trainers who<br />
can train hotel<br />
butlers (as distinct<br />
from butlers in private<br />
residence, as<br />
the hotel environment<br />
is very different<br />
and requires<br />
fewer and different<br />
skills than the<br />
traditional butler).<br />
In putting together a training program, it is important to<br />
know the four main elements that hotel butler trainees and hotel<br />
butler programs need in order to succeed.<br />
First of all, there are the mechanical actions, the skills that<br />
butlers need, such as how to clean shoes, how to greet guests and<br />
tour them around their suite, how to arrange events for their stay,<br />
how to draw baths, pack suitcases, etc.<br />
Then there is knowing and adopting as second nature the<br />
psyche or mindset of the butler. In order to do something effectively<br />
and with conviction, one has to be able to be the role that<br />
one is playing fully. This is obvious when watching a great actor<br />
in a movie. But it is also true in life, too. Unless a trainee butler<br />
has the right demeanor, attitude and approach as a starting point,<br />
he or she will never be able to carry off the role convincingly or<br />
handle guests and even fellow staff with the aplomb that makes<br />
butlers such quintessential service professionals.<br />
This is why the training has to include the history, rationale,<br />
characteristics and communication skills of the traditional butler,<br />
and enough drilling-in of these elements so that when the novice<br />
butler is faced with a tricky or embarrassing situation, he or she<br />
is not left tongue-tied, upsetting guests, or proving that he is not<br />
the smooth, low-key character that guests expect in their butlers.<br />
When friendly American hospitality employees chatter endlessly<br />
and over-familiarly with guests and follow mantras about always<br />
greeting the guest by name at least three times within so many<br />
minutes, they are presenting ingrained training patterns that do<br />
not add up to the butler experience. This is not to say that the<br />
butler is not friendly, but there are other ways of expressing it<br />
than by well-worn phrases and compulsive chatter.<br />
Thirdly, having covered the theory and done copious drills<br />
on applying the skills in a classroom environment, the trainer<br />
needs to move out with the butlers and expose them gradually to<br />
guests in the actual areas they will be providing butler service. By<br />
this is meant that trainees use each other and then senior staff as<br />
guest guinea-pigs, and they then service known-to-be-easy guests,<br />
and finally are allowed to service VIPs and known-to-be-difficult<br />
guests. The trainer should correct them on an internship or<br />
apprenticeship basis until the trainees can confidently do their<br />
duties.<br />
Finally, for training to be practical and workable, it needs to<br />
tie the general actions of butling into the specific hotel environment<br />
in which they are working. This means the trainer has to<br />
work with hotel management and butler trainees to adapt existing<br />
SOPs (standard operating procedures) and propose new ones<br />
that align with existing SOPs.<br />
It is workable to develop such SOPs during the early training<br />
steps and then drill them and correct them as needed during the<br />
apprenticeship period, fine-tuning against the hotel environment<br />
until they are smooth and effective. The result is best compiled<br />
into a butler manual that can be referred to as needed by the<br />
butlers, and which can also be used to train more butlers. The<br />
program will probably<br />
“ …building a whole new hotel at $1.5<br />
million per-room-cost just to be able<br />
to expand on the butler service pilot<br />
he had run.’’<br />
expand based on the<br />
successes of the initial<br />
pilot. That has certainly<br />
been the experience to<br />
date-one owner even<br />
building a whole new<br />
hotel at $1.5 million<br />
per-room-cost just to<br />
be able to expand on<br />
the butler service pilot<br />
he had run.<br />
It is also possible that there will be some attrition or turnover,<br />
but to date, hotel butlers that have been trained as above<br />
have proven happy enough with their situation to politely decline<br />
the inevitable offers from guests to return home with them and<br />
run their private households or yachts.<br />
The end result of the whole program as outlined above is<br />
generally employees with high morale who competently carry<br />
out their duties, wowing guests and resulting, as stated before, in<br />
higher-than-usual occupancy, a high rate of return visits, and the<br />
opportunity to increase rack rates while enjoying stellar word of<br />
mouth.<br />
Perhaps it would be better to ask then, not what the butler<br />
did, but what he (or she) could do for your hotel.<br />
This article was originally published by hotelexecutive.com.<br />
Professor Steven Ferry trains butlers in hotels, resorts, and private estates, and spa<br />
butlers in spas. He is Chairman of the International Institute of Modern Butlers<br />
(www.modernbutlers.com) and author of the best-selling industry texts, Hotel Butlers,<br />
The Great Service Differentiators and Butlers and Household Managers, 21st Century<br />
Professionals. He can be contacted at stevenferry@modernbutlers.com.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 41
RECIPE<br />
Recipe<br />
C H O S E N<br />
TUNA PASTA CASSEROLE<br />
This homely and comforting tuna casserole is a welcome addition<br />
to any weeknight dinner. Round out this quick and easy dinner<br />
with a tossed green salad.<br />
Ingredients<br />
1 1/2 cups wide egg noodles or pasta of your choice,<br />
cooked, drained and kept warm<br />
1 Tbs butter or margarine<br />
1 Tbs all-purpose flour<br />
1/8 tsp dried dill<br />
1 Tsp chopped garlic<br />
1/4 cup chopped onion<br />
1 cup fresh cream<br />
1/2 cup water<br />
1 Tsp Knorr Concentrated Chicken Bouillon or<br />
1 Knorr Chicken Cube<br />
2 (6-oz.) cans tuna, drained<br />
1/2 cup green peas<br />
1 Tbs chopped pimiento<br />
1/4 cup chopped, peeled canned tomatoes<br />
1/3 cup crushed potato chips<br />
2 Tbs grated parmesan cheese (optional)<br />
1.<br />
2.<br />
3.<br />
4.<br />
1.<br />
2.<br />
3.<br />
Procudure<br />
Preheat oven to 400°F. Grease 1-quart casserole.<br />
Melt butter in medium saucepan. Sauté garlic & onion, stir in<br />
flour and dill. Gradually stir in water and Knorr Concentrated<br />
Chicken bullion or the Knorr Chicken Cube, then the fresh<br />
cream. Cook over Medium heat, stirring constantly, until<br />
mixture is thickened. Stir In pasta , tuna, pimiento and<br />
chopped peeled tomatoes. Spoon into prepare casserole dish.<br />
Sprinkle with chips and the grated parmesan cheese.<br />
Bake for 8 to 10 minutes or until chips are golden brown.<br />
Season with and ground black pepper.<br />
As another option the chips could be omitted and greeted<br />
mozzarella cheese could be added instead.<br />
For Freeze Ahead<br />
Prepare as above; do not top with chips. Do not bake. Cover;<br />
freeze for up to 2 weeks. Thaw overnight in refrigerator.<br />
Uncover.<br />
Preheat oven to 400°F.<br />
Bake for 35 to 40 minutes. Sprinkle with chips. Bake for<br />
additional 8 to 10 minutes or until chips are golden brown.<br />
Season with salt and ground black pepper.<br />
Recipe by Chef Aliessio Berenger<br />
Unilever FoodSolutions, Best Buy Maldives Pvt Ltd<br />
Servings: 4<br />
Preparation time: 10 minutes<br />
Cooking time: 20 minutes<br />
42 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 43
SERVICE<br />
Listen to What <strong>Your</strong><br />
Uniforms are Saying<br />
by Eric Hahn<br />
Ever had an employee show up for work in a dirty, wrinkled<br />
or smelly uniform? Sure, haven’t we all? Any veteran of<br />
the hospitality business has seen or been through this before.<br />
We’ve all heard the same excuses, ‘I didn’t have time to wash<br />
my uniform,’ or ‘It was the only shirt or apron I could find.’ If<br />
image means everything, your servers and kitchen staff are the<br />
front lines of your overall image.<br />
We posed this question to a group of frequent restaurant<br />
customers: ‘What does a dirty, wrinkled or smelly uniform on a<br />
server or kitchen person mean to you when you go out to eat.’<br />
Almost universally, they all said it means that the establishment<br />
itself is likely to also be dirty, or that it shows a lack of care and<br />
attention to detail. Further, most indicated that it would be an<br />
additional factor as to whether they wanted to visit the restaurant<br />
again.<br />
A good three-dimensional uniform policy will help safeguard<br />
your image:<br />
The Stinky or Smelly Uniform: Showing up for work with<br />
a clean, ironed uniform should be part of your employee policy.<br />
A uniform service is often the best solution to this issue, but<br />
for those who don’t use a uniform service, this rule should be<br />
required among your staff. And by all means, perfume should always<br />
be off limits! Perfume masks the senses and prevents your<br />
customers from enjoying the value of their meal.<br />
The Wrinkled Uniform: A wrinkled uniform represents<br />
untidiness among your staff. The respondents in the survey we<br />
conducted indicated that a wrinkled uniform reminded them of<br />
someone who had just crawled out of bed. Consider a uniform<br />
that is a polyester woven fabric that is easier to keep tidy.<br />
The Dirty / Soiled Uniform: Sure, we all know this unpreventable<br />
by the end of a shift. But at the beginning of a shift is<br />
preventable. If your kitchen staff spends any time in the dining<br />
room, make sure they change their aprons before they go in<br />
front of your customers. Additionally, if they are cutting meat at<br />
a buffet table, remind them that a bloody apron is unacceptable!<br />
A solid uniform policy should be embedded with your hiring<br />
and training policies. A uniform that looks neglected speaks<br />
silently to your customers in the dining room about the person<br />
wearing it. Unfortunately, the customers see a dirty, smelly, wrinkled<br />
uniform as a larger part of your overall operation, and usually<br />
incorporate that image into their overall experience at your<br />
establishment. To the contrary, a clean uniform says the exact<br />
opposite: neat and clean atmosphere, with tidy and respectful service.<br />
Having a uniform policy is a disciplinary issue that speaks<br />
volumes about the nature of your staff and your establishment.<br />
It’s a policy that is relatively simple to enforce and maintain. Clean<br />
uniforms mean a clean restaurant in the eyes of your customers<br />
which is a wonderful reason for them to keep coming back.<br />
Eric Hahn is the Founder and Research Developer for RestaurantEdge.com. Hahn is<br />
a 25-year industry veteran with a diverse background in the restaurant business and<br />
skilled research developer. RestaurantEdge.com. produces a free monthly newsletter<br />
that provides insight to changes in the restaurant industry.<br />
Service = Respect<br />
by John Bowerman-Davies<br />
Yes, I’m back to chatting with you about service in restaurants,<br />
and I think that I have hit upon one of the key<br />
reasons why service is soooooo bad. In too many cases<br />
there’s no respect for the waitstaff from the owners and managers<br />
of restaurants.<br />
And all too often I hear restaurant owners describing their<br />
staff as being complete idiots with negative intelligence. And I<br />
don’t hear this in private - I hear it out loud in restaurants for<br />
both the waitstaff and customers to hear. Now if I was one of<br />
those so-called idiots, my mind would not be on table #33, but on<br />
where I was going to apply for my next job. Plus the customers<br />
start wondering whether or not they should be in this place.<br />
Why can’t every hotel &<br />
restaurant live by that standard?<br />
One wonderful establishment where the above does not occur<br />
is the Ritz-Carlton. The first thing that every employee sees<br />
when they enter the hotel is a sign that reads: “WE ARE LADIES<br />
AND GENTLEMEN, SERVING LADIES AND GENTLE-<br />
MEN.” Why can’t every hotel and restaurant live by that standard?<br />
By treating all their staff as real people, and by showing<br />
them respect, the Ritz-Carlton elicits a much better feeling from<br />
the management, staff, and most importantly, their clients!<br />
Another wonderful local establishment that long ago realized<br />
that the entire staff is important is the Rittenhouse Hotel. David<br />
Benton, the General Manager, takes the traditional leadership<br />
pyramid and turns it upside down (with David at the bottom). His<br />
very correct reasoning is that he can only see/meet/greet a small<br />
number of guests every day, but his staff (especially those on the<br />
other end of the pyramid) will meet all the guests everyday! And<br />
the guest’s impression of the establishment can be completely<br />
changed by a meeting with any given member of the staff.<br />
So why is it that restaurant owners spend buckets of money<br />
designing great new looks, concocting fabulous menus, hiring the<br />
best chefs in the universe (this week anyway), and then spend<br />
minimal time and money on the waitstaff. Not too many restaurant<br />
clients will meet the owner or the chef, but they will ALL<br />
meet some of the waitstaff. Doesn’t it make sense to invest some<br />
time, energy and money in these folks?<br />
Is it difficult to train waitstaff? NO. All that is needed is motivation<br />
(from the owner and the waitstaff) and a little respect!<br />
JBD John Bowerman-Davies is with LACAS COFFEE CO and can be contacted<br />
at jbdespresso@juno.com.<br />
44 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 45
MISCELLANEOUS<br />
There have been a slew of articles recently<br />
about the crisis of Human Capital. Advisory<br />
Boards, Associations, pundits all<br />
decry the turnover figures within <strong>Hospitality</strong><br />
(50%), point to the changing and contracting<br />
labor pool, note the Unions cranking up enlistment<br />
activities, and government on the local,<br />
state and national stage legislating “living” wage<br />
and benefits.<br />
Good Employee Retention Strategies<br />
Can Break the Myth ... The Grass Is<br />
Greener<br />
by John R. Hendrie<br />
46 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HUMAN RESOURCES<br />
Much has been touted about Retention Strategies, Cost Containment<br />
and Talent Management. Some companies are at the forefront<br />
of change and enlightenment; most are not, accepting the<br />
“revolving door” of staff as the cost of doing business. Will this<br />
picture change? Probably not, for the subject has a redundancy<br />
and a long history. When business is good and growth is booming,<br />
few really ever take a long, strategic look. Turnover at an unearthly<br />
rate takes place during upturn as well as downturn. Sadly,<br />
it is part of our <strong>Hospitality</strong> psyche.<br />
But, to affect change, one needs to consider three factors, which<br />
should dictate a retention strategy:<br />
The cost of Turnover<br />
The Labor Pool realities<br />
What your Brand represents<br />
The Cost of Turnover:<br />
Time is money, and your costs accelerate, based upon the level<br />
of the open position and the size of the organization. <strong>Let</strong>’s just<br />
start with the basics. For recruitment, there is the cost of advertising<br />
to begin an applicant flow. The selection process includes<br />
culling through applications, several “cuts” to decide who will<br />
be interviewed, often two to four interviews for the hire decision,<br />
processing time, new hire orientation, and then sufficient on<br />
the job training (which is also down time for the trainer and the<br />
operation). The higher up in the organization the vacancy is, the<br />
greater the cost for the process. For the sake of this example, let’s<br />
use $300 for entry level, $2,500 for Salaried/Middle Management,<br />
and $10,000 for Senior/Executive Management. Do the math on<br />
your own operation, appreciating that the above costing assumption<br />
is very conservative. That is money walking out the door!<br />
Labor Pool Realities:<br />
Consider first the Generational Differences. There are the Matures<br />
(1909-1945), who used to believe in “cradle to grave” employment,<br />
now totally disillusioned. Then the Boomers (1946-<br />
1964), beaten up by the marketplace, transitioned, downsized,<br />
darkly skeptical. Next, the Generation X’ers (1965-1978), who<br />
want a balance in their lives, crave good communications, and approach<br />
work like 1099’ers. Lastly, there are the Millenials (1979-<br />
1988), who want it their way, now. The “onion” layers are just<br />
beginning, for a hard look at the further demographics show, for<br />
the bulk of the <strong>Hospitality</strong> Workforce, a heavily female population,<br />
mostly immigrant with different cultures and languages,<br />
less educated, feeling quite disenfranchised. What a tough market<br />
from which to draw!<br />
What <strong>Your</strong> Brand Represents:<br />
Well, we are in the Experience Era, and we know that our Guests<br />
and patrons look for value, uniqueness, high level service, a quality<br />
product and exceptional delivery. Our Brand is our story, and<br />
we promote ourselves like crazy to entice that wary Consumer.<br />
And, we depend upon our Ambassadors, our worthy staff, to<br />
make the Experience memorable. They represent our interests<br />
and dictate our success. But, wait a moment, there is a disconnect.<br />
Fifty percent of our people are leaving, their departure is<br />
costing us money, and the replacement effort is ever more challenging.<br />
If this does not move <strong>Hospitality</strong> Businesses to establish<br />
a forthright Retention Strategy for 2006 and beyond, we deserve<br />
the reputations we invite and the devaluation of our product and<br />
service. Most bemoan the obvious; few take the initiative. But,<br />
for those who see the situation as critical, consider some of the<br />
following components for a successful Retention Approach.<br />
Retention Strategy:<br />
“A fair days work…” This simple phrase has immense implications.<br />
To perform, our employees need the tools, the direction,<br />
the encouragement, and the environment in which to achieve.<br />
1.<br />
2.<br />
Why are people leaving? <strong>Your</strong> Human Resources offices<br />
should be doing Exit Interviews. The information gleaned<br />
from these exercises often demonstrates problems and<br />
reasons with an easy fix apparent.<br />
What do your current employees feel about the organization?<br />
Employee Surveys do surface information about the<br />
organization and items which are actionable. Do not survey<br />
if you are not prepared to address the issues.<br />
3. Communication. <strong>Your</strong> workforce is diverse, and your<br />
communication systems and mechanisms must recognize the<br />
audience.<br />
4.<br />
5.<br />
6.<br />
Work environment. A quick look at your employee locker<br />
room is often indicative the value you place on the staff.<br />
<strong>Your</strong> employees want and deserve respect, involvement and<br />
particularly leadership.<br />
Training and Development. We must provide the necessary<br />
tools to perform the current job and opportunity to improve<br />
the skill set and ability to move onward in the organization.<br />
“…for a fair days pay”.<br />
Retention is impacted by reward, and this starts with a<br />
meaningful compensation package, both wage/salary and<br />
benefits. You get what you pay for! Additionally, there is a<br />
requirement for recognizing and rewarding performance<br />
excellence.<br />
“ Why are people leaving?<br />
<strong>Your</strong> Human Resources<br />
offices should be doing<br />
Exit Interviews. ”<br />
Conclusion<br />
This is not rocket science or even Best Practices — this is just<br />
common sense. The answers have been around for generations,<br />
however, the impetus, always hovering, was seldom grasped. <strong>Your</strong><br />
employees are just as discerning as your Guests. We have been<br />
smacking crocodiles, and the swamp becomes deeper, murkier<br />
and more deadly. The numbers do not lie; matter of fact, a good<br />
Retention Strategy is more than supported by the money saved<br />
on Turnover. We all tend to look over that fence, admire the<br />
landscaping and the greener grass we assume is the better alternative.<br />
Tend to your own yard properly, and you can put the neighborhood<br />
to shame!<br />
John Hendrie, is CEO of <strong>Hospitality</strong> Performance, Inc., a full-service hospitality<br />
consulting company. With a strong background in <strong>Hospitality</strong>, Human Resources,<br />
Organizational Effectiveness, and Communications, John has devoted his career to<br />
establishing Standards of Excellence across varied businesses. For more information,<br />
please visit www.hospitalityperformance.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 47
HUMAN RESOURCES<br />
The Quest for Productivity<br />
by Tony Eldred<br />
How often do you come across the word ‘productivity’?<br />
The word is used quite liberally in the present economic<br />
environment, but I find that a surprising number of<br />
managers and supervisors attending my training courses have<br />
only a vague notion of what it means.<br />
In Australia we are in the unfortunate position where we pay<br />
staff for attendance; that is, we pay wages for the number of<br />
hours the staff member is present, irrespective of the work done<br />
during that time. If I asked you to design a remuneration system<br />
to base our economy on, would you pay staff to attend? I hardly<br />
think so — it’s really quite bizarre when you think about it.<br />
Productivity can be expressed as a percentage. For example,<br />
a productivity of 75% means that for each 8 hours paid for, there<br />
are 6 hours of actual work performed. The percentage represents<br />
the ratio of work performed against time present. Some of you<br />
would be shocked to discover what your staff productivity really<br />
is. Unfortunately, accurate figures are difficult to establish because<br />
it is necessary for you to monitor all staff activity and log<br />
the results using a stopwatch to work it out accurately.<br />
Australian research tells us that the average productivity for<br />
our industry is in the range of 45-55%. This may seem low, but<br />
apart from the obvious time wasters such as social conversations,<br />
unscheduled smoke breaks, astral travelling and the like, you have<br />
to consider the nature of your trade. We tend to have concentrated<br />
peaks of activity followed by quiet times during which there is<br />
a reduced sense of urgency.<br />
The financial implications of staff productivity are profound.<br />
<strong>Let</strong>’s say you hire a kitchen hand for $10 per hour. By the time<br />
you add the on-costs and other costs associated with employment<br />
your kitchen hand costs you double the base rate — a total of $20<br />
per hour, just to be there. If you roster him for an eight hour shift<br />
“ A person who wants to do the job or who<br />
has a talent for the kind of tasks required<br />
will generally have a much higher rate of<br />
productivity than one who does not. ”<br />
and he’s 85% productive it will cost you $26 per hour to get real<br />
work done; if he’s 50% productive the cost goes up to $40 per<br />
hour; and so on — just to get basic work performed.<br />
It is unrealistic to ever expect to achieve 100% productivity<br />
from any staff, but 85% is possible and is a good target to aim<br />
for. This gives the average business owner a potential for a 30%<br />
increase in staff productivity across the board. If you have ever<br />
thought you are understaffed, think about this: if you can gain an<br />
extra 30% productivity, you gain the equivalent of one new staff<br />
member for every three you’ve already got on the payroll.<br />
The obvious question is: How do you lift your staff productivity?<br />
The answer involves the use of a number of different<br />
leadership skills; some of them advanced.<br />
The first involves understanding the preliminary steps to the<br />
recruitment and selection process. Before you advertise a position,<br />
the responsibilities and duties within that position should be<br />
carefully defined. This may involve you rationalising existing jobs<br />
and reallocating duties to different people in order to efficiently<br />
group appropriate tasks.<br />
Next, you must analyse the time and motion aspect of the<br />
position. <strong>Your</strong> procedures and the physical layout of your workplace<br />
must be arranged to minimise wasted effort. Perhaps in<br />
your work environment you have remote storerooms or other<br />
necessary facilities which could be rearranged to waste less time?<br />
Whenever you or your staff move from A to B it’s a dead economic<br />
loss to your business. Eliminating unnecessary movement<br />
increases productivity dramatically.<br />
You can also enhance productivity by careful staff selection.<br />
A person who wants to do the job or who has a talent for the kind<br />
of tasks required will generally have a much higher rate of productivity<br />
than one who does not. The extra time and cost taken<br />
to attract and select high quality staff will be repaid many times in<br />
terms of improved quality and efficiency.<br />
Once you select staff you have to train them properly. Someone<br />
said that the purpose of training is not simply to adorn the<br />
mind, but to direct the will. Good training fosters and builds<br />
positive attitudes and solid work ethics. Before you train a person<br />
you should attempt to ascertain standard times for each task and<br />
challenge the trainee to meet these times. The simple provision<br />
of goals and targets goes a long way to increasing work output<br />
— the average person likes to compete with themselves and with<br />
others.<br />
Finally, the standard of your supervision has a great bearing<br />
on your ultimate productivity. If you understand the process of<br />
motivation and can get staff to<br />
want to perform for you, your<br />
productivity will be far higher<br />
than if you rely on authoritarian<br />
discipline. All your staff need<br />
to know your general business<br />
plan and how you want them<br />
to fit into the scheme of things.<br />
They should be allocated responsibilities,<br />
not tasks. If your<br />
staff regularly have to come to<br />
you or your supervisors and<br />
ask: ‘What do you want me to do now?’, you should re-examine<br />
the way you lead — they should know what is expected and how<br />
long it should take, without having to ask. Every time they ask<br />
they are fracturing their work flow as well as yours.<br />
An amusing aspect to the whole subject of productivity is<br />
that I keep seeing business owners who staff their operations<br />
with what we call warm bodies; i.e, those who spend little time<br />
recruiting, those who pay the low wages and provide little or no<br />
training. They think they’re saving money, but they often have the<br />
highest labour costs — the result of poor productivity.<br />
Tony Eldred is the Managing Director of hospitality management consultants Eldred<br />
<strong>Hospitality</strong> Pte. Ltd. For more information visit www.eldtrain.com.au or email<br />
Tony directly at teldred@eldtrain.com.au<br />
48 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 49
0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SALES & MARKETING<br />
Build Strong, Sustained Customer<br />
Relationships with V.I.A.G.R.A.<br />
by Terry Wisner<br />
The bonds that tie long lasting customer relationships are<br />
very important in today’s world. It is said that the average<br />
person has 50,000 thoughts go through their mind daily.<br />
As a sales person and supplier, you want a few of those to be<br />
about you. More importantly, you want those thoughts to be positive.<br />
●<br />
●<br />
●<br />
If you maintain strong customer relationships, you will;<br />
Gain more business and make more money<br />
Be respected and people will refer you<br />
Enjoy your work (and personal) life<br />
Building strong customer relations is easy. First, you need<br />
to have a high level of self-esteem and truly want to satisfy your<br />
customers. Then all you need to do is follow the six V.I.A.G.R.A.<br />
steps to long lasting customer relations.<br />
V- VALUE THEM - Sincerely value them and their business.<br />
The most important thing is to show you care about them and<br />
their business. When you see them, always offer a “good” handshake.<br />
Always use their name and show genuine interest in them.<br />
It should go without saying, but a smile on your face will go a<br />
long way. As Groucho Marx said about acting, sincerity is important<br />
to sales; “once you can fake that, you’ve got it made.”<br />
I- INTEGRITY IS PARAMOUNT - Always do what you<br />
commit to do. Follow through with your commitments and if<br />
you cannot deliver, then let them know. If something goes wrong<br />
with their order, make sure they hear it from you. Remember, if<br />
you always do as you promise, your customer will trust you, and<br />
trust is the foundation for solid customer relations.<br />
with a little humor. Recognize important accomplishments they<br />
have made. Also sharing important personal things about you will<br />
help develop relationships, but don’t forget the 80/20 rule.<br />
A- AMELIORATE THEIR LIVES - To ameliorate means<br />
to improve or make better. Everything you do for your customer<br />
should improve their business or personal life. This is one of<br />
the biggest reasons successful sales people site as to why they<br />
enjoy being a sales person. As the old saying goes; sow so shall<br />
ye reap.<br />
If you fail to maintain strong customer relationships, you will:<br />
● Lose business and money<br />
●<br />
●<br />
Not be respected and get few (if any) referrals<br />
Experience a miserable personal and professional life<br />
So share V.I.A.G.R.A. with your friends and help them build<br />
strong, sustained customer relationships. Terry Wisner, of Partnering<br />
To Success, says; “Everyone wants to add value to their<br />
selling proposition,” following these six steps on a consistent basis,<br />
will result in higher levels of customer satisfaction and loyalty.<br />
Terry delivers keynote speeches and seminars, like “Be A Customer<br />
Service Star” and other teambuilding, sales, and leadership<br />
topics.<br />
“ Ask plenty of<br />
questions…”<br />
A- ASSESS NEEDS - Ask plenty of questions…then listen.<br />
The old 80/20 rule fits well in the selling transaction. You should<br />
spend 80% of the time talking and 20% of your time listening.<br />
Truth be known, many sales reps exhibit just the opposite, they<br />
talk 80% of the time. It is important to note that customers<br />
are often, what I like to call, “informationally challenged.”<br />
Therefore, the rep must ask questions to elicit vital information<br />
from the client in an effort to understand the need<br />
behind the need.<br />
G- GIVE MORE - One of the biggest complaints customers<br />
site as to why they left a particular supplier is that they did not<br />
get what they expected. Disney World is the best example of exceeding<br />
customer expectations. Delight your customers by giving<br />
them what they want, and more. Now that doesn’t mean giving<br />
away the store. Send them an email or better yet a hand written<br />
thank you note. Call them to see how pleased they are with their<br />
decision. Treat them the way you like to be treated or better yet,<br />
like Dr. Tony Alessandra says; “treat them the way they want to<br />
be treated.”<br />
R- RELATE TO THEM - One of the best ways to sustain<br />
great customer relationships is to get to know them on a personal<br />
basis. Remember their birth date and send them a card or give<br />
them a call. Whenever you transact with them, lighten things up<br />
If you want your Sales and/ or Service team members to delight their customers, call<br />
Terry. If you want to increase customer retention, call Terry. If you want to attract<br />
new customers, call Terry Wisner, the “Partnering Pro.” <strong>Your</strong> team members will<br />
learn how to delight your customers every time and how to encourage each other to<br />
do the same. Visit www.p2s.us or contact us at terry@p2s.us and let’s discuss the<br />
possibilities.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 1
TRAINING<br />
Don’t <strong>Let</strong> <strong>Your</strong><br />
<strong>Systems</strong> <strong>Drive</strong> <strong>Your</strong><br />
<strong>Customers</strong> <strong>Crazy</strong>!<br />
by Ron Kaufman<br />
52 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
SERVICE<br />
<strong>Customers</strong> are often left frustrated by a company’s smoothrunning<br />
and standardized, but inflexible policies.<br />
Does your company “run like clockwork?” Are your<br />
accountants pleased with how smoothly everything moves along?<br />
Are your managers content with how customers are managed<br />
throughout your system?<br />
If so, watch out! <strong>Your</strong> present methods may include policies<br />
and procedures that are convenient for the company, but utterly<br />
frustrating for your customers.<br />
<strong>Customers</strong> discover these land-mines of dissatisfaction in<br />
your company almost by accident. They usually stumble upon<br />
them in the course of normal business. Dedicated customers will<br />
speak up and complain. Others will just go away.<br />
I am one customer who makes a point of letting companies<br />
know when their polices are frustrating, preposterous or just<br />
plain customer-unfriendly. Unfortunately, many organizations<br />
have built up a thick layer of resistance and defensiveness towards<br />
such comments. They have stopped listening to the voice<br />
of the customer...especially the customer with a complaint.<br />
In recent weeks I have had a series of actual experiences bizarre<br />
enough to make me wonder whether anyone is listening at<br />
all! I think you’ll find them both funny and disturbing.<br />
My protests were to no avail. She checked with her supervisor,<br />
who concurred. “I’m sorry, but that’s our policy,” she said<br />
without much concern.<br />
I surrendered to her insistence, listened as she cancelled my<br />
Hilton Honors Club reservation, declined to have her book me<br />
back into the same hotel at the higher conference rate, and hung<br />
up the phone in disbelief.<br />
I called right back. I reached a different reservations clerk<br />
and made another reservation. I used my frequent flyer award<br />
coupon and the new Hilton Honors Club membership number<br />
I had received in the previous phone call. This time I kept my<br />
mouth shut about attending any conference!<br />
I paid just US$85 when I went to Los Angeles. I enjoyed the<br />
Hilton Towers room and enjoyed the complimentary fruit basket<br />
upon arrival. No thanks to Hilton’s absurd policy and customer<br />
unfriendly procedures, though.<br />
Somewhere deep inside the marketing department of Hilton<br />
Hotels, yield management professionals have carefully calculated<br />
the maximum rate they can, and will, charge participants at an<br />
international conference.<br />
Meanwhile conference participants are also thinkers, communicators<br />
and frequent flyers... real-live customers! Hilton Hotels,<br />
are you listening?<br />
“The Conference Rate” at Hilton Hotel in Los<br />
Angeles:<br />
I was making arrangements to attend the American Society of<br />
Training and Development Annual Conference in Los Angeles.<br />
As a frequent flyer, I have many award coupons offering a 50 per<br />
cent discount from usual hotel rates.<br />
I called Hilton Hotels in California to make my reservations.<br />
The reservations clerk was infinitely helpful. First, she took my<br />
name, then my contact numbers. She confirmed the dates, my<br />
room preference and credit card number.<br />
She asked if I was a Hilton Honors Club member, which I<br />
was not. She signed me up on the spot and then remarked: “Now<br />
that you are a Hilton Honors Club member, I can offer you an<br />
even lower rate, and an upgraded Towers room on a higher floor.<br />
A fruit basket will be waiting for you upon arrival.” I was delighted.<br />
And my special discount rate was just US$85 per night.<br />
In signing off, I said: “Thank you for your help. I am looking<br />
forward to staying at the Hilton during the conference.” “The<br />
conference?”, she shot back<br />
quickly. “What conference are<br />
you attending?”<br />
I replied that I was attending<br />
the American Society for<br />
Training and Development’s<br />
50th Annual Conference at Disneyland.<br />
She said quickly: “Mr<br />
Kaufman, if you are attending<br />
a conference during your stay,<br />
you must use our special conference<br />
rate of US$112.”<br />
I laughed at her proposal and stated that I was happy with<br />
the special rate she had already confirmed on my behalf. “Oh no,”<br />
she repeated. “If you are coming for a conference, you must use<br />
the special conference rate. We have a block of rooms set aside<br />
for conference participants on a lower floor. These rooms are<br />
specially reserved for the people who are attending the conference.”<br />
“Frequent Flyer Coupons” with Hertz Rent-A-Car in<br />
San Francisco.<br />
My next step was to make a three-day car reservation for a preconference<br />
visit to San Francisco. I called Hertz, where I am a<br />
member of the “Hertz Number One Club” for frequent travellers.<br />
I planned to use an award coupon for one free day rental<br />
from American Airlines and additional award coupons for two<br />
more free days from United Airlines.<br />
The telephone reservation officer gave impeccable service.<br />
She greeted me pleasantly, acknowledged me as a member of the<br />
Number One Club, confirmed my dates, flights, pick-up location<br />
and my choice of automobile.<br />
Then she asked me what time I would be returning the car<br />
after the first day of rental. “I want the car for all three days,” I<br />
replied. “You can’t keep the same car for all three days,” she asserted.<br />
“After the first day you have to bring the car back and pick<br />
up a different car for the next two days. The first day is paid for<br />
with your American Airlines coupon, but the next two days are<br />
with your United coupons.”<br />
“ She greeted me pleasantly, acknowledged<br />
me as a member of the Number One Club,<br />
confirmed my dates, flights, pick-up location<br />
and my choice of automobile. ”<br />
I was sceptical. “But I am the same person, with the same<br />
Hertz Number One Club member. I am the rightful owner of<br />
all the awards coupons, and I want a Hertz automobile for three<br />
consecutive days. Surely you will let me keep the same car, and<br />
avoid having to come back to the airport in the middle of my Bay<br />
Area vacation.”<br />
“That’s not the way our system works here, Mr Kaufman,”<br />
she replied.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 53
SERVICE<br />
“But it should work that way, don’t you agree?” I asked, appealing<br />
to her sense of logic, concern and elementary customer<br />
care.<br />
“I don’t make the rules here, Mr Kaufman. Just follow them.<br />
What time will you be returning the car after the first day?”<br />
Somewhere deep inside the heart of Hertz, a group of senior<br />
accountants live comfortably with their precise policy of “one<br />
airline, one coupon, one car, no exceptions”. But somewhere<br />
closer to this customer’s heart lies, frustration, inconvenience,<br />
and incredible disbelief.<br />
But I’m not the type of customer who gives up in these situations.<br />
When my Hertz reservation commenced in May, I took<br />
along a copy of this article to San Francisco and had a long chat<br />
with the most senior manager I could find at the airport. I ended<br />
up keeping the same car for three days. Hertz Rent-A-Car was<br />
listening.<br />
“You Don’t Get Juice” with a Broiler Meal at Burger<br />
King:<br />
You don’t have to call a reservations<br />
officer to experience procedural<br />
insanity instead of convenience<br />
and customer care. Before going vegetarian, I used to<br />
visit Burger King for their BK Broiler meal, a fast food lunch of<br />
broiled chicken sandwich and french fries.<br />
But instead of taking the large Coca-Cola included in the<br />
package, I always asked for a small glass of orange juice instead.<br />
The counter staff would freeze up in uncertainty and refer my<br />
request to the floor manager.<br />
One young manager was particularly memorable. “I’m sorry,<br />
sir,” he told me. “You can’t have the orange juice with the BK<br />
Broiler Meal.”<br />
“Oh, sure I can,” I replied, “I do it all the time at the other<br />
Burger Kings. I know there is a 65-cent price difference and I am<br />
happy to pay the difference.”<br />
“That’s not the problem,” he said with a touch of annoyance.<br />
“There’s no key here on my computer to make the substitution,<br />
so I can’t let you do it.”<br />
“Hey, sometimes you just have to break the rules,” I said, reminding<br />
him of Burger King’s own multi-million dollar advertising<br />
campaign. “I’ll take the BK Broiler meal, with orange juice.”<br />
He realized I was not going to take “No” for an answer and<br />
he could not very well go against Burger King’s well-known advertising<br />
promise. “I’ll do it for you just this once, as an exception,”<br />
he said curtly.<br />
“Oh c’mon, you can do it for me anytime,” I replied.<br />
“No,” he stated, looking at me straight in the eye. “I will do it<br />
for you this once, but I won’t do it again the next time.”<br />
“Wait a minute,” I asked gamely. “You are about to make me<br />
a happy customer. Do you really mean you wouldn’t make me a<br />
happy customer again?”<br />
“I will do it for you this once,” he repeated flatly. When I<br />
received my meal, with orange juice, I gave the manager a genuine<br />
smile and said, “See you again next time.”<br />
He quietly replied, just below his breath but loud enough for<br />
me to hear, “No, I don’t want to see you again.”<br />
Somewhere deep inside Burger King, computer programmers<br />
design point of purchase terminals to carefully limit the<br />
choices and options of customers around the world.<br />
Accountants are happy. The daily sales reports are neat and<br />
accurate and clean. But at the counter of the restaurants, face to<br />
face between customers and staff, both parties experience frustration.<br />
The advertising slogan says “Sometimes you’ve just got to<br />
break the rules”, but the restaurant manager cannot.<br />
After this article first came out, Burger King called and invited<br />
me to lunch. They asked me to tell my story. They asked me<br />
for suggestions.<br />
The following week I returned to the same outlet seeking<br />
a BK Broiler Meal, with small orange juice. The counter staff<br />
smiled brightly and keyed in my order.<br />
“How did you do that!?” I asked in a state of pleased amazement.<br />
“Oh, now it’s easy,” she replied. “Last week they gave us a<br />
new key on the computer to make simple menu changes.”<br />
Congratulations, Burger King. You are listening!<br />
Now each of<br />
these stories is completely<br />
true, but they<br />
are only valuable if<br />
they inspire you to<br />
listen more closely to your customers and more carefully examine<br />
your policies and procedures.<br />
“ How can we serve you better?… ”<br />
And remember, although certain polices may cause customers<br />
to fume in frustration, the rest of your system may quietly<br />
conspire to keep the complaining customers’ voice at bay.<br />
Ask your customers:<br />
“How can we serve you better? Is there anything that frustrates<br />
you most about the way we provide our service? Is there anything<br />
you would like us to do more of? less of? start doing? stop doing?<br />
What do other companies do for you that we don’t do here?”<br />
Ask your staff:<br />
“What do our customers ask for that frustrates you the most? Are<br />
there any special customer requests that really drive you crazy? Is<br />
there anything they ask for that is against our company policy?<br />
Is it the customer that makes your staff so mad, or are they driven<br />
to distress by limitations in your systems, policies and procedures?<br />
Make special requests:<br />
You can learn how to improve your own systems by testing the<br />
flexibility of others.Whenever you dine, travel, shop, purchase or<br />
rent, make requests that are slightly different from the usual routine,<br />
ask for specials “not on the menu”.<br />
Watch carefully how each establishment responds to your requests.<br />
Are they fast, flexible and friendly? What is it about their<br />
policy and systems that allows them to respond?<br />
Finally, ask yourself: Are you willing to make the change?<br />
<strong>Your</strong> accountant is comfortable. <strong>Your</strong> managers are content. But<br />
who are you in business for?<br />
<strong>Your</strong> accounting department will still be with you tomorrow.<br />
Will your customers be with you, too?<br />
Ron Kaufman is an internationally acclaimed innovator and motivator for partnerships<br />
and quality service. He is the author of the bestselling “UP <strong>Your</strong> Service!”<br />
books and the FREE monthly newsletter “UP <strong>Your</strong> Service!”. For more information<br />
and a sample newsletter, visit www.RonKaufman.com<br />
54 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 55
FOOD & BEVERAGE<br />
The Importance of Avoiding<br />
Cross-Contamination<br />
by Rich Kussin & Lynn Helmers,<br />
Procter & Gamble Foodservice<br />
Though invisible to the human eye, bacteria are omni-present<br />
in kitchens – both at home and in restaurants. They<br />
can affect food taste, but more importantly they can also<br />
impact the safety of the food we eat. Many bacteria live and can<br />
grow very rapidly in food particles, especially in moist foods with<br />
temperatures between 41 and 140 degrees Fahrenheit. Left untreated,<br />
they can cause salmonella or E coli food poisoning and<br />
other serious illnesses.<br />
The best defense against the dangers of bacteria is a clean<br />
kitchen. And while it’s extremely difficult to make cooking and<br />
food preparation surfaces and utensils fully bacteria-free, there<br />
are many steps foodservice professionals can and should take<br />
to both reduce the amount of bacteria present, and lower the<br />
likelihood of cross-contamination of bacteria between food ingredients<br />
and prepared dishes.<br />
First Line of Defense<br />
Hands are one of the major causes of cross-contamination. Bacteria<br />
that can cause illness are often present on hands, so it is<br />
important to wash hands frequently throughout the day. Washing<br />
hands before doing dishes helps to ensure that bacteria living<br />
on hands are not transferred into the dish water. And, washing<br />
hands after doing each task associated with food preparation<br />
helps to minimize the transfer of bacteria from raw to cooked<br />
foods, cold foods to hot and many more.<br />
Hot and Cold<br />
At the top of the list is making certain cooked foods and raw<br />
foods remain separated. This means using different cutting<br />
boards and utensils for cooked and uncooked foods during the<br />
preparation process, and making sure to wipe prep surfaces clean<br />
after every use.<br />
Cleaning Sink - Be certain the water in the cleaning sink is<br />
hot, ideally between 120 and 140 degrees Fahrenheit. Hot water<br />
helps to break up baked-on, caked-on food particles and to melt<br />
dried grease. This temperature is also necessary to activate the<br />
grease cutting and cleaning chemicals formulated into dish detergents.<br />
But chemicals added to the cleaning sink need to be strong<br />
enough to get the job done, too. Detergents such as the professional<br />
grade Dawn® Manual Pot and Pan Detergent include<br />
exclusive surfactant and solvent systems that work together to<br />
breakdown tough grease and clean more effectively. Dawn, for<br />
instance, delivers longer-lasting suds. And since suds are the signal<br />
of when it’s time to switch over the dish water in the cleaning<br />
sink, long-lasting suds mean less sink-turnover and more efficient<br />
dishwashing.<br />
In this step of dishwashing, a brush or cloth may be used to<br />
scrub food surfaces and completely remove all soils. However,<br />
the brush or cloth must be cleaned between uses to clear food<br />
particles that may become trapped in the bristles or fibers which<br />
can cross-contaminate the next batch<br />
of dishes.<br />
Proper Storage<br />
It is equally important to store foods properly, both in<br />
terms of temperature and containers. Foods that are<br />
meant to remain cold should be stored at temperatures<br />
under 41 degrees Fahrenheit. Foods meant to be hot<br />
should be held at temperatures above<br />
140 degrees Fahrenheit. And all foods must be stored in foodgrade<br />
packages, wrappings and containers.<br />
Cleansing and Sanitation<br />
The best method for cleansing and sanitization is a three-step<br />
process. In restaurants, this is completed in a three-compartment<br />
sink – in which one sink is dedicated to each step. And<br />
while some products claim to clean and sanitize all in<br />
one step, contentious food service pros continue<br />
to stress the importance of separately performing<br />
each step of the three-step process.<br />
‘‘ …all foods must be stored<br />
in food-grade packages,<br />
wrappings and containers. ”<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
FOOD & BEVERAGE<br />
Rinsing Sink - Though the rinsing process is perhaps the<br />
most intuitive, there are three techniques often used in restaurant<br />
kitchens to ensure all dish detergent has been removed from food<br />
surfaces and items are rinsed thoroughly. The first is to rinse the<br />
food surfaces under running water. The second is to dip the surface<br />
in and out of rinse water in the sink compartment. The third<br />
is to soak the clean dishes in a sink compartment filled with clean<br />
rinse water. Whatever option is used, it is imperative to change<br />
the rinse water as soon as soap begins to rise to the rinse water’s<br />
surface.<br />
Sanitization Sink - Sanitization is the crucial third and final<br />
step to further reduce bacteria and other microorganisms that<br />
may be remaining on the already washed and rinsed food surfaces<br />
including pots, pans and cooking utensils.<br />
“ Drying a sanitized surface<br />
with a towel can start the<br />
cross-contaminate process<br />
all over again,…’’<br />
There are two common types of sanitizers: chlorine and<br />
quaternary. Because it is a common household product, chlorine<br />
bleach can be used for cleaning in the home. But many food<br />
service professionals do not find chlorine stable enough for use<br />
in a professional setting. Food particles tend to break down the<br />
chlorine after only a few uses, requiring the sanitizing sink to be<br />
changed over more frequently. And, without the benefit of bubbles<br />
as an indicator – as in the cleaning sink – it is not as easy to<br />
tell when it’s time for a sanitizing sink to be changed over.<br />
One of the key advantages of quats is their stability. Free<br />
chlorine is not stable in solutions, so it deactivates over time. The<br />
process is accelerated in higher temperature solutions, in the presence<br />
of food residues, or in lower pH solutions. Thus, many<br />
operators choose quaternary ammonium sanitizers to maximize<br />
the effective life of their sanitizer solution and reduce concerns<br />
of deactivation. Whichever sanitizer is used, it is important to follow<br />
the instructions on the packaging to ensure correct amounts<br />
are mixed with the sink water. Too little will not effectively get the<br />
job done, and too much will leave a film on the food surface and<br />
will require additional rinsing, which can remove the sanitizer and<br />
negate its ability to remove bacteria from the surface.<br />
And finally, let all clean cookware and utensils air-dry. Drying<br />
a sanitized surface with a towel can start the cross-contaminate<br />
process all over again, since towels can contain tiny particles of<br />
food and bacteria. Foods provide a warm, moist environment<br />
where bacteria can thrive. Ingredients such as meat, fish, dairy<br />
products, eggs, cooked rice and cut melons are a ready-made incubator,<br />
and bacteria seem to know just how to use them. Though<br />
it’s impossible to rid the kitchen of all bacteria, the suggestions<br />
included here will help keep food preparation and cooking surfaces<br />
-- as well as kitchen tools -- clean and sanitary. Applying<br />
these tips judiciously in food preparation environments will not<br />
only reduce the amount of bacteria and keep foods tasting great,<br />
they will also help provide a safe dining experience for guests by<br />
protecting against the dangers of bacterial infection and crosscontamination<br />
in the kitchen.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 57
SERVICE<br />
The Dangers of Being a Host<br />
A<br />
recent dining experience of mine might be of interest to<br />
some of you. My girlfriend and I go to a particular restaurant<br />
at least once a week. As people have a habit of doing,<br />
we had discovered a place that impressed us, and we’d fallen into<br />
a pattern of regular patronage. We knew what we were going to<br />
get; there were never any surprises just good food and informed,<br />
friendly service.<br />
The food is a blend of traditional Japanese artistry and local<br />
ingredients. Always very fresh, always presented superbly, and<br />
good value. The ambiance is modern, airy, chic. We bring the tone<br />
of the place down by coming-in dressed in tracksuits after playing<br />
sport in the evening.<br />
I’d never had any disappointments eating there, so when a<br />
group of my friends prevailed on me for a suggestion for a good<br />
night out, I broke my usual golden rule and extolled it’s virtues. I<br />
should have known better.<br />
If a hospitality consultant gives a restaurant recommendation,<br />
it is taken as gospel and creates very high expectations. I’ve<br />
found that very few restaurants are consistent enough in their<br />
performance for me to feel totally confident in their delivery. I<br />
might go there myself, but I don’t usually recommend them to<br />
others.<br />
This particular night everything conspired against me. Sadly,<br />
I was there as the host, cringing in excruciating embarrassment as<br />
a performance worthy of Basil Fawlty unfolded around me.<br />
We arrived at about 8.00pm, and were seated and offered<br />
a drink. I noticed that there were less front of house staff than<br />
“ `Bring me the owner’s head on<br />
a plate!’, I seethed inside, smiling<br />
through clenched teeth. ”<br />
normal and that the tables were filling-up fast. The staff were<br />
starting to move rapidly and gesticulate in that urgent manner<br />
that denotes a foodservice system that is beginning to unravel at<br />
the seams.<br />
We ordered several large platters of sushi and sashimi. My<br />
guests commenced a lively conversation which was punctuated<br />
by the waiter returning at regular intervals to take orders for more<br />
drinks. My friends were not being bashful with the alcohol, and<br />
I’d foolishly suggested that Tadcaster Porter (a fairly potent stout)<br />
went particularly well with sushi. They accepted this recommendation<br />
with gusto and bounced into it.<br />
Out of the corner of my eye I could see the restaurant owner<br />
and the waiters going into little huddles and conversing in an animated<br />
manner. What was happening? I was beginning to become<br />
concerned we had been there nearly 45 minutes, we’d had about<br />
six large glasses of stout each, and no food in sight. I called the<br />
waiter.<br />
“I’m terribly sorry, Mr Eldred. We have twice the number of<br />
customers we usually get on a Thursday night, and every table has<br />
by Tony Eldred<br />
ordered sushi. There will be a delay.” I confirmed this myself by<br />
checking-out the sushi chef — this `sensitive artiste’ was resisting<br />
all efforts to increase his productivity and was hiding behind a<br />
decidedly hostile expression and a malevolent looking cleaver.<br />
“I thought you said this was a good restaurant, Eldred. I’m<br />
starving! Where’s the food?” It began good naturedly and slowly<br />
rose to a venomous crescendo. An hour had passed; still no sushi.<br />
I wanted to run away. It was time for action. I did the only thing<br />
that seemed sensible at the time: I ordered sake for myself and<br />
drank it. Then I ordered another.<br />
The waiter finally approached the table after an hour and<br />
twenty minutes and deposited three small plates of sushi, each<br />
containing five pieces, on our table. You could feel the wave of<br />
disappointment. “That’s not what we ordered. Where’s the sashimi?<br />
This won’t feed six people,” said one guest. “Eldred, this is<br />
ridiculous, what kind of restaurant have you brought us to? I<br />
thought you were supposed to be the expert.”<br />
Six stouts and two sakes can have different effects on different<br />
people. I was half pissed and furious. Out of the hundred or<br />
so times I had visited the place, why had they chosen to screw up<br />
on the occasion I had brought guests? Why me Lord? . . . I called<br />
the waiter.<br />
He wasn’t having a good night either, and was obviously fedup<br />
with dealing with irate customers. His response to my assertion<br />
that we were not happy brought the full, shrill, bitchy, handson-hips<br />
routine: “What are you complaining about? We’ve given<br />
you something to eat! I wrote the right order on the docket, it’s<br />
not my fault.”<br />
`Bring me the owner’s head on a plate!’, I seethed<br />
inside, smiling through clenched teeth. I stood-up<br />
and went to confront the great man himself. He was<br />
having a bad night too. Stifling the intense urge to<br />
commit a violent crime of passion, I approached him<br />
and told him of my disappointment. “What can I<br />
do?” he replied with a shrug more reminiscent of Tel<br />
Aviv than Tokyo.<br />
Eventually we ordered something they could supply and we<br />
all got fed after two hours waiting. The crowd died down, the sushi<br />
chef became less menacing and the owner regained his composure.<br />
He was most apologetic. He even sent us a complimentary<br />
bottle of wine. Nice one — more alcohol — that’s just what<br />
I felt we needed. My friends were already primed to the point<br />
where they were drooling and talking shorthand.<br />
Despite the owner’s attempt at conciliation, they were so unimpressed<br />
with the place they elected to leave a ten cent tip after<br />
a deliberately loud debate.<br />
I still get rubbished about that night, and I’ve had reservations<br />
about going there ever since. I know that I’m being unreasonable;<br />
one in a hundred isn’t a bad screw-up ratio, but now I’ve<br />
got this subconscious mental association linking the restaurant<br />
with pain and social humiliation.<br />
Tony Eldred is the Managing Director of hospitality management consultants Eldred<br />
<strong>Hospitality</strong> Pte. Ltd. For more information visit www.eldtrain.com.au or email<br />
Tony directly at teldred@eldtrain.com.au!<br />
58 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 59
MISCELLANEOUS<br />
The Art & Science Of <strong>Hospitality</strong><br />
by Keith Kefgen<br />
To be successful, today’s hospitality executive must be a service<br />
fanatic, marketing guru, Wall Street analyst, real estate<br />
appraiser and a first-rate coach.<br />
In the literary masterpiece, The Bhagavad-Gita , it says,<br />
“Through selfless service, you will always be fruitful and find<br />
the fulfillment of your desire”. Service is the essence of the<br />
hospitality industry, whether you are a waiter or a Chief Executive<br />
Officer. Unfortunately, economic and geo-political<br />
circumstances have made it more difficult to deliver<br />
world-class service and business profitability. To be successful,<br />
today’s hospitality executive must be a service<br />
fanatic, marketing guru, Wall Street analyst, real estate<br />
appraiser and a first-rate coach.<br />
Take the typical day in the life of Terrance<br />
Lanni, CEO of MGM/Mirage. He wakes up to<br />
a conference call with Wall Street analysts<br />
reviewing financial forecasts and earnings<br />
estimates. Soon after, he attends a meeting<br />
to evaluate a new advertising and<br />
casino marketing campaign. He then<br />
answers mail, which includes guest<br />
comments from some of the twenty<br />
thousand people who visit his casinos<br />
every day. He then chairs a meeting<br />
of his executive team to articulate the<br />
company strategy. He then reviews<br />
the construction plans for an expansion<br />
of the MGM, and no day would<br />
be complete without talking to Kirk Kirkorian,<br />
the billionaire investor and largest company shareholder.<br />
Besides Lanni, when I think of the premier leaders in the<br />
hospitality industry a number of names come to mind, Steve Bollenbach,<br />
Isadore Sharp, Barry Sternlicht, Bill Marriott, Edouard<br />
Ettedgui, Jonathan Tisch and Steve Wynn. Each has a unique<br />
style that makes them successful. For example, Bollenbach is<br />
known for his strategic and financial acumen, while Steve Wynn<br />
is recognized as a creative genius. Ettedgui is renowned for his<br />
passion for quality and his international savoir-faire, while Tisch<br />
is known as a great spokesman and political powerhouse. Sternlicht<br />
and Sharp are both known as communicators, Sternlicht with<br />
Wall Street and Sharp with employees and guests. Marriott, on<br />
the other hand, has built a conglomerate based on systems and<br />
market segmentation. Mix these attributes with an obsession for<br />
service and you have a set of skills that is difficult to find in any<br />
industry.<br />
Strategic Savvy<br />
Bollenbach, the CEO at Hilton Hotels has earned a reputation as<br />
a savvy financial executive and a strategic thinker. While at Marriott<br />
Hotels, he engineered the split of the company into Marriott<br />
International and Host Marriott. In one strategic move he separated<br />
Marriott’s management business and its real estate holdings.<br />
He created a win/win proposition for management and investors.<br />
At Hilton he has crafted a simple strategy based on four “value<br />
drivers” that every constituency believes in and has culminated in<br />
the merger with Hilton International.<br />
In many C-Level searches, strategic thinking has been a priority.<br />
For example, Arlington <strong>Hospitality</strong> engaged me to find a new<br />
CEO following a proxy battle. The direction of the company and<br />
the strategic plan were at the heart of the conflict. As part of the<br />
interviewing process we made candidates draft a “strategic white<br />
paper” articulating their opinions regarding the future direction<br />
of the company. It became a distinguishing feature for the winning<br />
candidate. Other candidates who “presented” well did not<br />
have the same intellectual focus or vision for the company in their<br />
white paper. Many other candidates were discounted because they<br />
appeared to represent the “status quo” and did not appear to be<br />
progressive thinkers.<br />
International Savvy<br />
Like many other industries, hospitality is truly global. Leaders<br />
must understand business, political and social issues in every part<br />
of the world. Edouard Ettedgui, CEO of Mandarin Oriental Hotel<br />
Group epitomizes the international leader. Schooled in Paris,<br />
he has managed businesses in Morocco, Zambia, Zimbabwe,<br />
Peru, London and Hong Kong. His global experiences are helping<br />
Mandarin expand faster than any other luxury hotel brand<br />
with development projects in New York, DC, Boston and Tokyo.<br />
The complexity of those development projects made very few<br />
companies suitable as an operating partner.<br />
0 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
MISCELLANEOUS<br />
Balancing Profits & Guest Satisfaction<br />
Bill Marriott, CEO of Marriott International has been adept<br />
at one of the greatest balancing acts in the industry. Marriott’s<br />
business interests involve every market segment of the hospitality<br />
industry. Ritz-Carlton in the luxury segment, Marriott in<br />
full-service, Courtyard in mid-rate, Residence in extended stay,<br />
timeshare, food service, senior living and so forth. Furthermore,<br />
Marriott has accomplished his success by having the finest systems<br />
in the business. When you hear that Marriott “does it by the<br />
book” it is the real deal.<br />
Communication Savvy<br />
Barry Sternlicht, former CEO at Starwood Hotels was the consummate<br />
communicator. His reputation on Wall Street was that<br />
he was the most accessible CEO in the business. His financial<br />
background allowed him to understand the Wall Street mentality<br />
and anticipate investor sentiment. Isadore Sharp at Four Seasons<br />
is also acknowledged for his ability to connect with people.<br />
He has a long-standing policy that every phone call to him or<br />
a company manager is returned promptly. He has developed an<br />
uncanny ability to establish loyalty with employees and customers<br />
alike. Four Seasons is consistently ranked as the best Luxury<br />
hotel chain in the world. For six straight years, they have also been<br />
named to Fortune Magazine’s list of the Top 100 Companies to<br />
Work For .<br />
Creative Savvy<br />
Steve Wynn of Las Vegas fame is probably the most creative executive<br />
of the group. His capacity to create a vision and then turn<br />
it into reality is unrivaled. When Steve sold the Golden Nugget<br />
in Atlantic City to build the largest casino in Las Vegas, most<br />
thought he was crazy. At a cost of nearly a billion dollars, the<br />
Mirage was ridiculed as a pipe dream. The Mirage of course was<br />
nothing short of incredible. The Mirage’s success set off a building<br />
boom in Las Vegas that has gone unabated for the last decade.<br />
Wynn followed that up with the Bellagio and most recently the<br />
“strategic white paper”<br />
Wynn Resort Las Vegas. Wynn is also one of the great promoters<br />
of our era. His casino promotions and his flair for advertising<br />
have made him a household name. Another source of Wynn’s<br />
success is his ability to attract top talent. Talk to anyone in the<br />
casino industry and ask who they would most like to work with,<br />
and Wynn’s name comes up most often.<br />
Community/Government Relations<br />
Solid relations with local, state and federal governments have<br />
become a requirement in the travel industry. Two standouts are<br />
Jonathan Tisch at Loews Hotels and Terrance Lanni and MGM/<br />
Mirage. Tisch almost single-handedly turned back the repressive<br />
tax code in New York City making it one of the most business<br />
friendly cities in the world. Lanni has also been a leader in creating<br />
win/win public policy for the gaming industry and has supported<br />
research on the social effects of gaming.<br />
Service Mentality<br />
Interestingly, from our historical research it appears that a service<br />
mentality must be nurtured at a young age. Selling widgets and<br />
selling an experience are dramatically different. Empathizing and<br />
anticipating the desires of guests must be learned. How many<br />
times have I heard an executive say, “I stay in hotels all the time<br />
so I understand what a guest wants”. Just because someone is a<br />
discriminating customer doesn’t prepare him/her for the service<br />
industry. In fact, very few industry outsiders have done well at<br />
the CEO level. Prominent CEOs such as Stewart Bainum, Gary<br />
Mead, Rand Araskog and Norm Blake all saw more value in selling<br />
their companies. In addition, the research suggests that many<br />
of these outsiders got frustrated with the hospitality work environment.<br />
Moving the needle in hospitality is very difficult to do<br />
without significant time and money.<br />
Practical Experience + Degree<br />
If you were building the perfect resume for hospitality, what<br />
would it look like? First, it would combine practical experience<br />
with a college degree. Gone are the days of apprenticeship programs<br />
and the school of hard knocks. College programs such as<br />
the Hotel School at Cornell University are becoming the norm<br />
rather than the exception. With the shift in many world economies<br />
to a service orientation, colleges are responding with programs<br />
that are geared to those needs. Even the Laussane hotel<br />
school in Switzerland (the oldest hotel school in the world) has<br />
changed its curriculum to be less focused on apprenticeship and<br />
more on western business philosophy.<br />
Practical experience should include experiences in operations,<br />
marketing, finance and real estate. Chains such as Hilton<br />
and Marriott are better at providing these cross training opportunities,<br />
and as such, have more marketable employees. Likewise,<br />
tenure at the chains average 7-10 years versus the industry average<br />
of 2-3.<br />
Secondly, the resume would also have some international experience<br />
and a consistent increase in responsibilities. <strong>Hospitality</strong><br />
employers are also very brand conscious. For example, managers<br />
at Four Seasons, Ritz-Carlton and Mandarin get recruited<br />
much more often than a candidate from an independent operation.<br />
<strong>Hospitality</strong>’s reputation as a job-hopping industry has also<br />
been changing. With the enormous investment in human capital<br />
required today, employers are insisting on stability and commitment<br />
from new employees. To garner commitment, the better<br />
employers are offering a structured succession plan and the cross<br />
training previously discussed.<br />
My advice to aspiring leaders in hospitality:<br />
●<br />
●<br />
●<br />
●<br />
●<br />
●<br />
Train your brain – Try distance learning, association &<br />
university workshops, become a voracious reader and learn<br />
from your mistakes<br />
Pledge to serve – Take a personal oath to serve others, do<br />
volunteer work, give back to the local community, learn<br />
empathy<br />
Show passion and commitment – Understand that success is<br />
based on purpose, perseverance and patience<br />
Think like an entrepreneur – Owners think differently than<br />
laborers, put yourself in the shoes of an owner and act like<br />
they would<br />
Get creative – Creative power comes from exercising the<br />
mind and body, challenge both. Workout, do yoga, take a<br />
painting or creative writing class or join a sports team.<br />
Lead, don’t manage – You manage things, but you lead<br />
people.<br />
Keith Kefgen HVS Executive Search Office: New York<br />
Email: KKefgen@hvsinternational.com Address: 372 Willis Avenue Mineola, NY,<br />
11501 Phone: +1 516 248-8828 ext. 220 (Work) +1 516 770-2331 (Mobile)<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 61
62 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HUMAN RESOURCES<br />
To be Effective, Leaders Need<br />
to Know Who They Are<br />
by Margot Cairnes<br />
On 1 April Vittoria Coffee announced to Australia through<br />
a series of advertisements that it had discovered the<br />
white coffee bean. No longer did you need to add milk<br />
or cream. Brew up your white coffee from Vittoria’s specially developed<br />
white beans.<br />
Well, it was April Fools Day. But Les Schirato, CEO of Cantorella<br />
Brothers, owners of Vittoria Coffee, is no fool. The ads<br />
received coverage on every Australian radio and TV channel. Discussion<br />
of the ads made all the major Australian dailies. Exposure<br />
spread to Canada, Hong Kong and Europe. The media monitor<br />
reports came in a box, not an envelope. Vittoria Coffee had never<br />
had such press.<br />
The silly thing was that Les had written that ad five years<br />
ago. For five years it sat in his desk drawer. Whenever he brought<br />
it out someone told him he couldn’t use it. It would attract the<br />
attention of the Trade Practices Commission. Vittoria was now<br />
the leader in its niche; it couldn’t do something as silly as play an<br />
April Fool’s joke.<br />
“ Leaders are different. ”<br />
“It took me several years of hard work,” Les told me, “to<br />
have the courage to listen to myself and ignore the blockers.”<br />
It takes a strong sense of self to listen to our own council. To<br />
take the risk of being different. It takes strong character to follow<br />
our own lead when everyone else tells us we are wrong. It takes<br />
great judgment to take calculated risks.<br />
But isn’t this what leadership is all about? Leadership is about<br />
being out in front. Being ahead of the crowd. Leaders are different.<br />
To be different and effective, leaders need to know who they<br />
are; what they want and where they are going; to have emotional<br />
strength to be in touch with the people around them; the character<br />
to build and maintain relationships; the judgment to take<br />
risks.<br />
These are very human capacities. Capacities forged by our<br />
personal beliefs, our individual value systems, our life experiences<br />
and our emotional health. All these things in turn rest on the decisions<br />
we made when we were growing up. It was as our brains<br />
were forming and maturing that most of the key frameworks of<br />
our character and judgment were laid.<br />
The old Jesuit dictum of “Give me a boy until he is seven<br />
and I can shape him for life” is very true. So a big part of developing<br />
character and judgment - the key to good leadership - is<br />
raising awareness as to early decisions that are still shaping our<br />
thinking, acting and being.<br />
Margot Cairnes is an international leadership strategist. She delivers exceptional<br />
results through a unique approach to identifying and solving the issues facing organizations<br />
at times of great change, particularly implementing mergers and acquisitions.<br />
In addition to major change problems Margot acts as a mentor to leaders of global,<br />
commercial organizations. This confidential service provides a safe forum for leaders to<br />
explore the issues and beliefs that create and limit their success. You can visit Margot<br />
Cairnes web site at http://www.MargotCairnes.com or e-mail her at: cmuzard@<br />
changedynamic.com<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 63
MISCELLANEOUS<br />
What Value Quality?<br />
Most <strong>Hospitality</strong> Operators Use the Term “Quality” In their Advertising.<br />
What Exactly Does that Mean?<br />
by John R. Hendrie<br />
Most <strong>Hospitality</strong> Operators use the term “Quality” somewhere<br />
in their advertising and promotion. What exactly<br />
does that mean? One would compile multiple responses,<br />
as Management tried to define “Quality”. The same would be<br />
said for their Staff, and, just as importantly, the Guest. We all have<br />
different perspectives.<br />
<strong>Hospitality</strong> invites a Quality Experience, but, if expectations<br />
are not met, you have a disappointed Guest, reduced Revenue,<br />
unhappy employees and a deteriorating reputation. So, what is<br />
the Value of Quality: the Concept, the Experience and Reward,<br />
and how does this relate to your <strong>Hospitality</strong> Business?<br />
The Basics: Quality is a Process. There are Performance Standards<br />
created, communicated and implemented. The Standards<br />
are reviewed constantly to stress Continual Improvement. Success<br />
Stories are heralded. Problem Areas are immediately addressed.<br />
Steady “feed back” is required. This is not a one day<br />
exercise. Quality must become integral to your Business Performance.<br />
The Bottom Line: Does your definition of Quality translate<br />
to the Guest’s expectations? <strong>Hospitality</strong> Operations are boldly<br />
diverse. We present to the Consumer various locations, architecture,<br />
ambiance, price, amenity, and activity. When they make a<br />
reservation – book a room, a table, or a ticket – the Guest has an<br />
Expectation. Now, we must deliver and not create a disconnect,<br />
because we may be at cross purposes with our Guest and their<br />
concept of Quality.<br />
The Assignment: How do we create a “common ground” to<br />
meet these expectations and avoid the false steps in fully serving<br />
our Guest? The Quality Process begins with recognized, reasonable<br />
<strong>Hospitality</strong> Performance Standards. ALL parties understand<br />
cleanliness. The environment you represent must be clean and<br />
not assault the five senses.<br />
We need to feel safe and secure. We require certain “creature<br />
comforts”. We look for our needs to be attended with some<br />
courtesy, accuracy, speed and pleasant attitude. Finally, we expect<br />
the facility to present an acceptable appearance / condition.<br />
These elements are how you will be judged by your Guest. They<br />
represent the Benchmarks for a memorable Quality experience or<br />
not. These Performance Standards are the foundation, and the<br />
Guest needs to know you are serious and sincere. Particularly for<br />
those Destinations which are Family oriented, recognize that the<br />
greatest influence on where the Family will stay, dine and recreate<br />
is the Mother, and she holds Quality Standards dearly.<br />
The Report Card: The success of a Process needs to be measured<br />
– a Performance Evaluation. Where do you rate with these<br />
<strong>Hospitality</strong> Standards? Do you deliver, and, just as importantly,<br />
does your Staff? <strong>Your</strong> Quality message must be communicated<br />
daily. <strong>Your</strong> Staff must abide by your Message. Clear guidelines,<br />
need to be in place, practiced and assessed. Attention to detail<br />
and meeting the Guest’s needs are the Mantra.<br />
There are many means to evaluate your Performance: the<br />
personal relationship you have with your Guests; in-house mech-<br />
anisms, like Comment Cards; Mystery Shop Services; Assessment<br />
Companies; and formal Guest Satisfaction <strong>Systems</strong>. They are all<br />
meaningful.<br />
In Summary: The Guest Experience all begins with Expectations,<br />
and success is built upon how well you deliver your product/service<br />
in relation to those Expectations. Performance<br />
Standards are the <strong>Hospitality</strong> Norm, and they “frame” the experience.<br />
<strong>Your</strong> adherence to these Standards has definite Value in<br />
the Marketplace, particularly if your efforts have been validated ,<br />
designating your Operation a Quality Destination. You also have<br />
at hand mechanisms to continually improve your performance,<br />
for Guest Satisfaction “feed back” is critical and actually creates<br />
Customer Loyalty opportunities.<br />
Does Quality have Value? Absolutely. It is the bedrock of<br />
our Industry. Quality establishes your Reputation, becomes your<br />
competitive edge, and results in increased Revenue. <strong>Let</strong>’s restore<br />
that Consumer Confidence!<br />
John Hendrie, is CEO of <strong>Hospitality</strong> Performance, Inc., a full-service hospitality<br />
consulting company. With a strong background in <strong>Hospitality</strong>, Human Resources,<br />
Organizational Effectiveness, and Communications, John has devoted his career to<br />
establishing Standards of Excellence across varied businesses. For more information,<br />
please visit www.hospitalityperformance.com<br />
64 HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
Top 7 Ways to<br />
Keep <strong>Your</strong> Team<br />
Motivated<br />
by Kelly Robertson<br />
1.<br />
2.<br />
3.<br />
4.<br />
5.<br />
6.<br />
7.<br />
Involve them. Many employees want to be involved in the<br />
ongoing development and progress of their company. Plus,<br />
they often have insightful ideas that can make a significant<br />
difference in the company.<br />
Communicate. A frequent axiom in business is, “No news<br />
is good news.” However, employees want regular updates on<br />
the progress of the business and their personal performance.<br />
Use memos, email, telephone, and one-on-one and group<br />
meetings to keep your team apprised of changes, updates,<br />
new products, etc.<br />
Celebrate individual and team performance. Catch<br />
people doing something right and focus on recognizing<br />
excellent performance. Provide positive reinforcement,<br />
issue awards, use a corporate newsletter to highlight specific<br />
achievements. Send thank-you cards and congratulatory notes,<br />
make phone calls, and send emails.<br />
Set challenging goals. My experience has taught me that<br />
people strive to achieve what is expected of them. If you set<br />
challenging goals your team will work hard to accomplish<br />
them, providing of course, they are realistically attainable.<br />
Give them the tools to succeed. No team will stay<br />
motivated if they do not have the necessary tools `required<br />
to do their job. This includes; equipment, internal support,<br />
inventory, marketing materials, training, etc.<br />
Manage poor performance. <strong>Your</strong> team expects you<br />
to manage individuals who do not perform to standard.<br />
However, many managers ignore these situations because they<br />
are afraid to deal with them, hoping instead that the situation<br />
will resolve itself. It never does and this “blind” approach<br />
affects profitability, causes higher turnover, and generates low<br />
morale.<br />
Believe in your people. The majority of people want<br />
to do well – very few individuals approach a job with the<br />
intent of screwing up. Yet, many managers run their business<br />
thinking that employees must be treated with a “watchdog”<br />
mentality. They install hidden cameras, monitor email, and set<br />
up procedures that require employees to get multiple approval<br />
signatures for decisions.<br />
Kelley Robertson, President of the Robertson Training Group, works with businesses<br />
to help them increase their sales and motivate their employees. He is also the author<br />
of “Stop, Ask & Listen – Proven sales techniques to turn browsers into buyers.”<br />
For information on his programs, visit his website at www.RobertsonTrainingGroup.<br />
com .<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 65
HUMAN RESOURCES<br />
Creating a More Productive Workplace<br />
by Doug Hissong<br />
Today all commercial organizations large and small want<br />
to make their work environments more productive. They<br />
know that’s the key to competing well in today’s tough<br />
environment. They know their employees are their most important<br />
asset and that those employees can do more. But what are<br />
the keys to making employees more productive? <strong>Let</strong> me suggest<br />
a few.<br />
Raise the expectations<br />
You probably know the story of Pygmalion from Greek mythology.<br />
Pygmalion was a sculptor who wanted to create a statue of<br />
the most beautiful woman imaginable. He worked painstakingly<br />
to create this exquisitely beautiful, ivory statue. When completed,<br />
she was so beautiful that he fell in love with her and became<br />
obsessed with her. In answer to his prayer, a goddess turned the<br />
statue into a living woman whom Pygmalion married.<br />
Pygmalion expected the statue to be beautiful, and it was.<br />
The “Pygmalion effect” refers to the fact that things tend to turn<br />
out as we expect them to be. This is not merely a statement of<br />
good fortune. It means that our expectations cause things to<br />
work out that way. It’s a self-fulfilling prophecy.<br />
The story of Pygmalion was the basis for Bernard Shaw’s<br />
play “Pygmalion”, which in turn gave rise to the musical play and<br />
movie “My Fair Lady”. Professor Henry Higgins falls in love<br />
with the beautiful woman he “creates” from a poor, common<br />
flower girl. She had become the true lady that he had expected<br />
her to become. Expectation had become reality.<br />
The Pygmalion effect has been demonstrated in a number<br />
of studies by psychologists. People definitely respond to our expectations.<br />
They behave the way we expect them to behave. I<br />
bet you can think of examples you’ve seen; I certainly can. What<br />
a powerful tool this is for us! If you want to get people to do<br />
more, raise your expectations. Don’t tell them what you want<br />
or hope for. <strong>Let</strong> them know what you expect. Do this in a very<br />
positive way. <strong>Let</strong> them know that you respect them, that they’re<br />
very capable, and that you know (expect) that they will<br />
come through with the best.<br />
They will.<br />
Align the rewards<br />
What does your organization truly reward employees for? Do the<br />
rewards go to those who avoid screw-ups by clinging to a conservative<br />
status quo? Do they go to the innovators, visionaries,<br />
and true leaders? Do long-service employees feel good about the<br />
personnel actions they’ve seen over the years?<br />
Where does your organization’s leadership or management<br />
style place the emphasis? Does your “management by objectives”<br />
emphasize “bean counting” and easy targets over less tangible<br />
improvements and stretch goals? Does your “management by<br />
exception” emphasize hunting for “who’s screwing up today” and<br />
cautious CYA, creating an atmosphere of fear? Do you cling to<br />
management based on a “Theory X” view of your employees in<br />
spite of evidence that they’re “Theory Y” employees (as by far<br />
most employees are)?<br />
Whatever kind of behavior you reward most is the kind of<br />
behavior you’ll get. Is the behavior you’re fostering what’s truly<br />
best for your business? Does it lead to maximum productivity?<br />
Is there a more people-related leadership/management style that<br />
will be more effective?<br />
Focus on attitudes<br />
Employee performance is very rarely limited by abilities. It’s limited<br />
by attitudes! Attitude is the paintbrush of the mind; it colors<br />
everything. A person with a positive, “can do” attitude is bound<br />
to be more productive than one with a negative attitude. And<br />
each of us has absolute control over his attitude! We choose it.<br />
Attitudes are extremely contagious. I like the bumper sticker<br />
that says, “Courtesy is contagious. <strong>Let</strong>’s start an epidemic”.<br />
Courtesy is an attitude. We say that someone has “infectious<br />
enthusiasm”. Enthusiasm is an attitude, and it’s definitely infectious.<br />
And Emerson said, “Nothing great was ever accomplished<br />
without enthusiasm.“<br />
Is criticism prevalent in your organization? Benjamin Franklin<br />
and Charles Schwab are two highly successful individuals who<br />
have said that they don’t criticize because it’s not effective. It<br />
doesn’t help anything. Praise and encouragement help people<br />
and improve productivity.<br />
All attitudes, both positive and negative, are infectious or<br />
contagious. They’re passed from one person to those around<br />
him or her. One person can pull a whole group up or down with<br />
his or her attitude. We need to be alert to what we and others<br />
are passing around, and to control it. We need to keep a positive<br />
and enthusiastic attitude and pass it on to everyone we can. We<br />
need to work to make positive, enthusiastic attitudes permeate<br />
our organization.<br />
Doug Hissong has a doctorate in engineering and has worked over 35 years in<br />
industrial companies. His experience has shown him how important interpersonal<br />
and communication skills are to effective job performance (as well as<br />
effectiveness in non-work endeavors). He feels so strongly about it that<br />
he has collected his thoughts and a myriad of stories supporting them<br />
into a book titled Positive Impacts, (subtitle “Discovering the<br />
keys to better interpersonal and communication skills”). He<br />
calls it “food for thought that tastes good, like a healthful<br />
dessert.” He can be reached at doug.hissong@<br />
sbcglobal.net.<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 67
FOOD & BEVERAGE<br />
Last Words<br />
<strong>Let</strong>ters to the Editor<br />
“This magazine is a very good thing, especially for Maldives. I was in Maldives the last four years<br />
and we didn’t have such information earlier. I wish you all the best and hope people will use this<br />
for their benefit.”<br />
Saman Weerasinghe, F&B Cost Controller, Al Murooj Rotana Hotel & Suites, Dubai, UAE<br />
“<strong>Your</strong> magazine is fantastic; indeed this will help develop the tourism industry in the Maldives.”<br />
Ali Moosa, Cashier, Sun Island Resort & Spa<br />
“You are doing a great job for promoting the tourism business in Maldives! Keep it up!”<br />
Shameem Ibrahim, Managing Director, Shell & Sand Maldives Pvt. Ltd.<br />
“I am currently studying Travel, Tourism and <strong>Hospitality</strong> and find your magazine very helpful and<br />
a useful resource to my studies. I believe that even after my studies, the magazine will always help<br />
me stay up-to-date with this industry.”<br />
Aishath Lahufa Asim, Student, Male’<br />
“This is the first time I have seen a magazine full of information for any age and with great tips<br />
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<br />
my work place as well.”<br />
Ali Shiyam, Customer Service Executive, Maldivian Air Taxi<br />
“It’s simply the best.”<br />
Aishath Nuga Abdul Gadheer, Deputy Offi cer, Bank of Maldives<br />
“I am an avid reader of your magazine and I deeply salute the brilliant ideas incorporated with<br />
useful schemes found in every issue. It’s worth reading from cover to cover! All your topics had<br />
been affluent and I am sure it has brought an enormous leap to the hospitality readers.”<br />
Jazzie L. Ranque, General Manager’s Secretary, Kuredu Island Resort<br />
“One of the best knowledge review magazines. Superb articles! I lived in Maldives for six years<br />
and still want to read your magazine.”<br />
Tilak, Executive Chef, Taj Hotel Company, Sri Lanka<br />
“<strong>Hospitality</strong> Maldives is the best school in the Maldives for educating the industry. Keep up the<br />
good work!”<br />
Mohamed Waheed, Assistant Manager, Summer Island Village<br />
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006<br />
info@hospitality-maldives.com
HOSPITALITY MALDIVES OCTOBER/NOVEMBER 2006 69
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