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<strong>EP</strong> | PERSPECTIVE <strong>March</strong> <strong>2017</strong> • Issue 03<br />
HUMAN TRAFFICKING ARE WE<br />
LARGELY DEFENCELESS?<br />
<strong>March</strong> <strong>2017</strong> • Issue 03 • £5.00 • epmagazine.co.uk<br />
Defining Bleisure<br />
A concept core to expansion, culture and customer service<br />
JONATHAN STAPLETON A VISION INTO<br />
THE FUTURE FOR LUXURY HOSPITALITY<br />
THE LEELA PALACES THE STORY<br />
OF THE FOUNDING OF JAMAVAR
How can cities make<br />
themselves more hospitable?<br />
7th April <strong>2017</strong><br />
<strong>EP</strong> and eHotelier are bringing together an international audience<br />
to explore what we all need to do for the future – and we want you<br />
involved. Terrorism brings with it fear which impacts the entire<br />
industry, so what role should hospitality play?<br />
Leaders of the sector must now come together to discuss and<br />
debate the future. Don’t miss this unique and first of its kind event.<br />
Tickets £250 plus vat. For more<br />
information and to book, please visit<br />
www.ehotelier.com/event/hospitable-cities<br />
or contact Lauran.Bush@epmagazine.co.uk
Welcome<br />
Editor: Ben Butler<br />
ben.butler@epmagazine.co.uk<br />
<strong>EP</strong>: 4 Lombard Street, London EC3V 9HD<br />
020 7933 8760<br />
www.epmagazine.co.uk<br />
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There is no doubting that 2016 was a year of shocks<br />
and few experts were accurate in their forecasting.<br />
It was fascinating and at times worrying to observe<br />
results which went against the so-called solid<br />
predictions. In this issue of <strong>Perspective</strong> we look<br />
at why this has happened and what challenges lie<br />
ahead in <strong>2017</strong>. Has the hospitality industry simply<br />
forgotten the basics and have many principles been<br />
lost to a sluggish attitude?<br />
The argument is that the hotel industry has become<br />
so confident in itself that the market has been caught off guard twice in the last decade – the<br />
Airbnb model has posed a serious challenge and online innovators have grabbed a massive slice<br />
of the market. It is predicted that this will grow to nearly half the market in the next 5 to 7 years<br />
– few forecasted this growth.<br />
Therefore new ideas are needed to ensure no one is left behind as change takes place at<br />
quickening speeds. Is there now a need for a marriage between the experienced businesses<br />
and the young entrepreneurial talent coming into the sector? Do we need to free up potential<br />
leaders in hospitality and can this be achieved through internal think tanks and exploring<br />
innovative thinking?<br />
Our front cover features Gioele Camarlinghi surrounded by the wonderful sculptures his<br />
Melia Hotel displays during an ‘ArtRooms’ showcase. For visibility to customers and the<br />
surrounding community, adding an inspirational value through art and culture can bring<br />
numerous opportunities. Whilst trying something different can support a hotel to really stand<br />
out in the market, other demanding topics are around the corner. A complex and difficult issue<br />
is the vulnerability of trafficking of human beings. Is the hospitality sector perceived to be<br />
largely defenceless and sometimes even complicit to the activities of human tracking?<br />
Strong cultures and good leaders, aligned to objectives, are now needed. Some have forgotten<br />
this and that real strength lies with depth and numerous leaders across a hotel. There are<br />
looming challenges ahead, it is time to prepare.<br />
MEET THE TEAM<br />
Chris Sheppardson Sara Stewart Nick Sheppardson Lauran Bush Natalia Latorre Sarah Freeman<br />
epmagazine.co.uk | 3
Contents<br />
<strong>March</strong> <strong>2017</strong> • Issue 03 • epmagazine.co.uk<br />
08<br />
24<br />
34<br />
46<br />
COMMENT<br />
11 Leasehold commercial property: The Pitfalls<br />
Niall McCann, Partner at Joelson examines how businesses<br />
can avoid common mistakes.<br />
17 Finders Keepers?<br />
Peter Davies, WMT Chartered Accountants, considers how<br />
the hospitality industry is dealing with the staffing crisis.<br />
20 Marriage of leadership teams and<br />
young innovators<br />
<strong>EP</strong> asks are we brave enough to think differently?<br />
22 When the levy comes into play<br />
Bob Cotton and Miles Quest argue that the levy will not<br />
achieve its purpose.<br />
24 Who plays the lead role in social change?<br />
Both entrepreneurs and hotel general managers will<br />
play a role.<br />
27 “Culture eats strategy for breakfast”<br />
The company name and brand can no longer do the legwork.<br />
31 Looming challenges<br />
IndiCater looks at the immediate challenges facing the sector.<br />
38 The problem is: you don’t know what<br />
the problem is<br />
Heather Gibson asks how do you successfully create<br />
a new business model in a sea of disruption?<br />
INNOVATION<br />
26 Technology can replace hospitality<br />
When and how will technology impact the industry?<br />
32 Upside down, inside out<br />
<strong>EP</strong> looks at how we may need to re-engineer hospitality.<br />
40 Connecting the kitchen<br />
Winnow explain how the Pullman Dubai Creek City<br />
Centre & Residence is getting smarter on food waste.<br />
50 The era of social innovation<br />
Who will lead the change agenda following a turbulent year?<br />
FOOD & DRINK<br />
44 The missing mindset<br />
The Shangri-La Hotel looks at the lack of chefs with the<br />
right approach for the job.<br />
4 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
28<br />
EDUCATION<br />
12 Do we do enough to develop leaders?<br />
The education system may not teach the life skills<br />
fundamental to leadership – so businesses need to be<br />
prepared to step in.<br />
43 The entrepreneur has changed<br />
The education system is changing business, but maybe<br />
not for the right reasons.<br />
CUSTOMER EXPERIENCE<br />
08 From Mumbai to London<br />
The story of the founding of Jamavar.<br />
14 The 250th anniversary<br />
The Royal Crescent Hotel & Spa celebrates the<br />
250th anniversary of Bath’s historic Royal Crescent this year.<br />
18 Defining Bleisure<br />
Melia Hotels International has honed the concept of<br />
Bleisure and use it at the core of their offering.<br />
48 Anticipating the next trend<br />
Producing new experience within a hotel’s walls at W London.<br />
INTERNATIONAL<br />
28 Telling the sustainable story<br />
Jumeriah Port Soller Hotel & Spa re strong advocates<br />
of ‘eco-luxury’.<br />
36 New to the game<br />
The founders of Drake Bay Getaway Resort on leaving<br />
high tech jobs and entering hospitality.<br />
46 Preserving the past<br />
The Vivaana Culture Hotel in India has been<br />
meticulously restored.<br />
SPECIAL FEATURE<br />
06 Trafficking in the hotel industry<br />
Is the hospitality industry largely defenceless?<br />
34 Mind the skills and inequality gap<br />
Atul Pant explains how his charitable organisation<br />
provides life skills to underprivileged students.<br />
42 Introducing the NED panel<br />
A marriage of skills between the baby boomers and<br />
emerging businesses.<br />
epmagazine.co.uk | 5
SPECIAL FEATURE: HUMAN TRAFFICKING<br />
TRAFFICKING<br />
IN THE HOTEL<br />
INDUSTRY<br />
Is the hospitality sector perceived to be largely<br />
defenceless and sometimes even complicit to<br />
the activities of human trafficking?<br />
REFAT MAMUTOV | 123RF.COM<br />
Human trafficking may not be at the<br />
forefront of worries for many hospitality<br />
companies but it is, according to a new<br />
guide, vulnerable to Tracking in Human<br />
Beings (THB). All hotels, regardless of their<br />
size, brand or location are susceptible.<br />
Trafficking in human beings is a serious<br />
risk for society as a whole and with hotels<br />
often at the centre of communities, they<br />
too are at danger. THB is growing and<br />
although efforts are being made throughout<br />
Europe to combat this criminal activity,<br />
hotels must act now to ensure they are<br />
reducing the risk of modern slavery taking<br />
place on their properties.<br />
A new guide named COMBAT addresses<br />
the need for hotels to have practical steps<br />
which they can take to reduce the risk of<br />
human trafficking taking place on their<br />
premises. The guide is the result of two<br />
years of research by the University of<br />
West London and three partners; Oxford<br />
Brookes University, Lapland University of<br />
Applied Science and the Ratiu Foundation<br />
for Democracy and been funded with<br />
support from the European Commission.<br />
The European Union defines the<br />
trafficking of human beings (THB) as<br />
the recruitment, transportation, transfer<br />
or harbouring of persons who are in a<br />
position of vulnerability, using threat,<br />
force or other forms of coercion for the<br />
purpose of exploitation.<br />
Although often associated with poor or<br />
developed countries, the global criminal<br />
activity actually happens everywhere and<br />
6 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
REFAT MAMUTOV | 123RF.COM<br />
every country is a source, transit point or<br />
destination for trafficking. Many countries<br />
use different systems to collect data and so<br />
the number of victims officially reported<br />
through the organisations are just the ‘tip<br />
of the iceberg’.<br />
THB is considered to be the ‘slavery of<br />
our times’ and it is estimated there are more<br />
than 115,000 trafficked victims annually in<br />
the European hospitality industry, however<br />
the hidden nature of this crime means<br />
actual numbers are likely to be much higher.<br />
Recent research identifies that hotels,<br />
restaurants and other F&B establishments<br />
are increasingly used for both sexual and<br />
labour exploitation. Hotels are the second<br />
most popular venue for sex trafficking and<br />
restaurants and bars are two of the most<br />
popular venues for labour exploitation.<br />
According to data collected by Eurostat<br />
from EU member states, the majority<br />
of THB victims are trafficked for sexual<br />
exploitation (66%), followed by forced<br />
labour (20%) and other forms of trafficking<br />
(13%). The majority of victims are women<br />
who are exploited for sexual purposes and<br />
there has been an increase in the number of<br />
male victims exploited for labour purposes.<br />
Hotels are vulnerable because of many<br />
of their characteristics and operational<br />
practices:<br />
n Strategically there may be a belief that<br />
by admitting there may be a problem, the<br />
business or brand reputation may be damaged.<br />
n Hotels sometimes offer external ‘services’<br />
to guests, this may be commissionable and<br />
staff share in the proceeds.<br />
n Employees may have a customer<br />
orientation and willingly respond to customer<br />
requests or demands without necessarily<br />
considering the moral dimensions.<br />
n Mobile and automated check-in systems<br />
mean that the check-in process and room<br />
access is not monitored.<br />
n The privacy and anonymity normally<br />
offered to guests provides a level of protection<br />
for traffickers.<br />
n Many employment practices: lack of<br />
training on spotting signs of trafficking, use<br />
of low or unskilled labour where legislation<br />
and labour or human rights are unknown<br />
to employees and the lack of protection<br />
for potential ‘whistle blowers’ who report<br />
suspected incidents.<br />
The COMBAT guide includes thoughtprovoking<br />
case studies of THB including the<br />
following of a woman exploited for labour<br />
purposes and forced to commit a criminal act.<br />
The woman was given some basic training<br />
and provided with a CV to use to apply for a<br />
job at a city hotel’s reservations department.<br />
They made sure she was presentable and with<br />
the CV they gave her, she got the job. The<br />
hotel took the address from the CV, which<br />
wasn’t her real address – no one checked. She<br />
THERE ARE POTENTIALLY:<br />
n 93,480 victims of sex trafficking<br />
in hotels<br />
n 14,820 victims of forced or bonded<br />
labour in restaurants and bars<br />
n 6,840 victims of forced or bonded<br />
labour in hotels<br />
n In total, that means there are<br />
potentially 115,140 annual victims of<br />
human trafficking in the European<br />
hospitality industry.<br />
provided the hotel with a bank account which<br />
she wasn’t able to access – no one checked,<br />
because who would provide an account<br />
they cannot access. At work, the traffickers<br />
ordered her to change non-commissionable<br />
room reservations into ones booked by<br />
the traffickers ‘fake’ travel agency so that<br />
commission could be paid directly into their<br />
bank account. The women felt trapped and<br />
had nowhere else to go. It was a relief for her<br />
that the hotel found out what she had been<br />
doing. Her story eventually came out in court<br />
and shows the shocking exploits suffered.<br />
Some UK hotels may feel they are not<br />
impacted by trafficking but it is estimated<br />
there are 32,000 trafficking victims in the<br />
UK, but the true figure could be far higher.<br />
The industry is vulnerable to falling victim<br />
to incidences of human trafficking involving<br />
guests and staff, what happens in plain<br />
sight but is invisible if the warning signs are<br />
not spotted.<br />
The Modern Slavery Act 2015 requires<br />
companies with global turnover of more than<br />
£36m operating in the UK to take action to<br />
ensure their operations and supply chain are<br />
slavery-free. Governments are now applying<br />
pressures on hotels and their staff in the<br />
fight against human trafficking regardless of<br />
whether hotels are unknowing or unwitting<br />
participants or adopt a ‘head in the sand’<br />
approach. Some bookers are demanding to<br />
see positive anti-THB actions by hotel firms<br />
prior to booking meetings or events.<br />
Along with the legal obligations, hotel<br />
companies have ethical and moral obligation<br />
to combat THB. There are arguably few<br />
resources to educate staff and put in place<br />
measures which reduce risk but by being<br />
associated with trafficking it can cause<br />
significant damage and therefore a proactive<br />
approach may be best.<br />
Human trafficking is a significant and<br />
ongoing issue and the COMBAT toolkit has<br />
been mindfully put together as a reference<br />
and training guide. More research is needed<br />
for this significant and ongoing issue and to<br />
eradicate modern slavery, hotels must now<br />
start to reduce the risk of it taking place on<br />
their properties.<br />
With such a complex and difficult topic, it is important that a hotel has<br />
a plan and a set of practical steps they can take. The COMBAT guide<br />
includes a toolkit for training corporate and managerial hotels. The Polaris<br />
Project 2015 study of ‘Human Trafficking and the Hotel Industry’ showed<br />
how the issue manifested itself in the United States. Polaris, whilst founded<br />
in the US and Japan, is one of the largest anti-trafficking organisations and<br />
has a helpline for international support: +001 202 745 0190.<br />
epmagazine.co.uk | 7
CUSTOMER EXPERIENCE: JAMAVAR<br />
From Mumbai to London<br />
– the story of the founding of Jamavar<br />
In December last year, The Leela Palaces, Hotels and Resorts opened their first restaurant<br />
on Mount Street in London, named Jamavar. <strong>EP</strong> met with Samyukta Nair, granddaughter<br />
of the group’s founder, to learn more about their ambitions for the Group.<br />
The Leela Palaces, Hotels and Resorts are today recognised<br />
around the world for their excellence and luxury operations.<br />
Their story has always been individual and unique. The Leela<br />
Hotels were founded in 1983 by Captain C. P. Krishnan Nair, who<br />
named the group after his wife.<br />
Captain Nair, as he was often referred to, was not a traditional<br />
hospitality professional. He originally joined the Indian independence<br />
movement at the age of 13. He traveled to Bangalore in 1942 to join<br />
the Indian Army. His confidence impressed the recruiting officer<br />
and he was recruited as wireless officer, and posted in Abbottabad<br />
(in present-day Pakistan). He would later rise to rank of Captain in<br />
the Maratha Light Infantry. In 1950, he married Leela, the daughter<br />
of industrialist A.K Nair, after whom he would name his future hotel<br />
chain. Nair resigned from the Indian Army in 1951 and helped to set<br />
up the All India Handloom Board. He was instrumental in developing<br />
and exporting the “Bleeding Madras” fabric, a subtly fragrant, handwoven<br />
cotton printed with vegetable dyes, which became a fashion<br />
rage in the United States.<br />
In 1957, Nair was part of a delegation of the All India Handloom<br />
Board to West Germany, which involved visits to Frankfurt, Cologne,<br />
Munich and Hamburg. Following his stay at the Kempinski Hotel in<br />
Budapest, he realised the need for a luxury hotel chain in India that<br />
could measure up to international standards.<br />
Nair established Hotel Leelaventure Ltd. in 1983, and began<br />
construction of a hotel in Sahar on 4 acre plot of land that he owned,<br />
and an additional 6.5 acres that he leased. The Leela Mumbai, was<br />
launched in 1986.<br />
In 1991 a second hotel was opened in Goa. The Leela Goa was<br />
designed to keep the overall architecture in mind and has taken its<br />
inspiration from Portuguese heritage. The luxury seaside resort is<br />
spread over 75 acres of land in South Goa near Cavelossim Beach.<br />
In 2001 the group’s first modern Palace hotel was built with 357<br />
rooms, inspired by the Mysore Palace and the architecture of the<br />
13th century Vijayanagara empire, and is surrounded by seven acres of<br />
gardens. The Leela Group opened its second resort in 2005 – The Leela<br />
Kovalam in Thiruvananthapuram. By 2009, two more properties<br />
were added to this portfolio: in Udaipur (Rajasthan) and Gurgaon.<br />
The Leela Ambience Gurgaon is the group’s first non-owned,<br />
managed property. The Leela Palace New Delhi opened in April 2011;<br />
the palace is inspired by the work of Sir Edwin Lutyens. The Leela<br />
Palace Chennai opened in August 2012, the city’s first sea-facing<br />
Palace hotel, that reflects the opulence of Chettinad dynasty.<br />
8 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
OPPOSITE PAGE, FROM LEFT: LATE CAPTAIN<br />
C. P. KRISHNAN NAIR, FOUNDER, THE LEELA PALACES,<br />
HOTELS AND RESORTS; THE LEELA PALACE UDAIPUR<br />
THIS PAGE, CLOCKWISE FROM LEFT: JAYASRI BURMAN<br />
ART IN THE MAIN DINING ROOM AND THE LOWER<br />
GROUND FLOOR AT JAMAVAR; SAMYUKTA AND DINESH;<br />
LOBSTER NEERULI; THE BAR AT JAMAVAR<br />
“Our journey as a hospitality brand began with my grandfather<br />
Late Captain CP Krishnan Nair.” Explains Samyukta, “He was<br />
a former Captain in the army, known for transforming his own<br />
circumstances, and those of the people who worked with him. His<br />
long and diverse career saw him move from humble beginnings to a<br />
respected army officer, and then from a successful textile exporter<br />
to one of the leading hoteliers of the world. His journey began with<br />
one hotel on the outskirts of Mumbai which he named after his<br />
wife, my grandmother – Leela. In a short span of three decades,<br />
his vision transformed The Leela into a network of nine awardwinning<br />
properties that celebrate India’s diverse geography and rich<br />
architectural history. My grandfather will always be my inspiration!“<br />
In 2016, the group took a new turn with the opening of their<br />
signature Indian restaurant Jamavar in London. The design and<br />
ambience represent a fusion of India and London with its own<br />
style. So, what has prompted the opening of Jamavar in London?<br />
“My father, Dinesh Nair, is passionate about cuisines and he is the<br />
driving force behind the entire F&B portfolio of The Leela Palaces,<br />
which is much appreciated by our guests across India and around the<br />
world. Over the last few years, we started seeing a growing demand<br />
for sophisticated Indian gastronomy beyond our borders, which<br />
prompted us to bring our signature Indian offerings to the forefront.<br />
London being the world’s melting pot, it was our first choice. “<br />
Samyukta is very open in her answers and in her approach. There<br />
are no hidden sides but a genuine belief in what the group are striving<br />
to achieve.<br />
“Jamavar London takes an authentic approach to Indian cuisine.<br />
On the menu are dishes that showcase the varied flavours of the Royal<br />
Kitchens of North India along with succulent options from the shores<br />
of the South. Behind every dish is a team of highly experienced chefs,<br />
each a culinary master of a distinct regional cuisine. Our Executive Chef<br />
Rohit Ghai, who has led several Indian Michelin starred kitchens in the<br />
past, travelled through India for several months. Inspired by the street<br />
food from the North and South, he has created innovative small plates,<br />
keeping the sophisticated palate of London diners in mind. Also, while in<br />
India his deep dive into the culinary wealth of The Leela has led to some<br />
of the most popular dishes of Jamavar’s siblings in India like Lobster<br />
Neeruli, Sidhi Ghost and Butter Chicken to be featured on the menu.<br />
What are the hopes and aspirations for the restaurant and in London?<br />
Celebration of cuisine is fundamental to The Leela Palaces, and<br />
epmagazine.co.uk | 9
CUSTOMER EXPERIENCE: JAMAVAR<br />
CLOCKWISE FROM LEFT: THE LEELA PALACE<br />
CHENNAI TERRACE SWIMMING POOL; ALEBI CAVIAR;<br />
SHAMI KEBAB WITH CHURCHUR PARATHA<br />
Jamavar, our signature Indian restaurant, is the jewel in the crown.<br />
Jamavar London being our first foray internationally, we have worked<br />
hard to recreate the same standards of luxury and high quality that<br />
Jamavar is trusted for and loved across India, and hope that our<br />
efforts will resonate with London diners.<br />
Opening in London is renowned to be difficult and especially for<br />
those that have not operated in London. How was the process<br />
and journey?<br />
We opened under a tight deadline of five months and the journey had<br />
had both great moments and great challenges. We were first slated to<br />
open at the end of October but there were unforeseen delays. We had<br />
not planned for an opening during holiday season, which is usually<br />
not advisable given it is such a busy time of the year. But we opened on<br />
December 1, and honestly, we are both surprised and thankful for the<br />
positive response Jamavar London is receiving. “<br />
Was the London opening a lead into opening a hotel at a later date?<br />
The Leela has been voted the fifth best brand in a worldwide<br />
2016 survey by the renowned Travel & Leisure USA, and we are<br />
deeply thankful to our guests for recognising us. Our immediate<br />
plans are to expand brand Leela into the Indian Ocean and the<br />
Middle East.<br />
Hotels and Resorts are renowned for their design and they bring<br />
together heritage and legacy with the modern world. Their ethos and<br />
hotels do mark them out as being different to other. What lies behind<br />
their thinking towards the design of the hotels and the restaurant?<br />
The Leela properties are India’s modern palaces, inspired by the rich<br />
heritage and architectural history of each destination, and equipped<br />
with world-class amenities and services. Each property is designed<br />
to give our guests a deep sense of place. Once inside, museum-quality<br />
art and artisanal craft is showcased in public spaces, which we view as<br />
an ultimate gift of luxury to our guests. Every restaurant has a unique<br />
identity and is designed to encapsulate a complete dining experience<br />
that feeds all five senses. This same aesthetic and ethos extends to<br />
Jamavar London which is designed by Fabled Studio, London, and<br />
takes inspiration from the majestic Viceroy’s house in New Delhi. With<br />
accents that draw on the ancient games of India combined with the<br />
vibrant colours of Jamavar shawls, rainforest emperador marbles, dark<br />
timber panelling, as well as a mirror embellished bar in celebration of<br />
the Indian textile techniques, Jamavar London is a jewel that is befitting<br />
of its surroundings in Mayfair.<br />
The Hotels are also famed for the service levels – and the service<br />
in London was exceptional – can you again tell me more about the<br />
overall approach to people and development?<br />
Our art of hosting guests reflects the centuries-old traditions of Indian<br />
hospitality which believes in Atithi Devo Bhava that literally means<br />
Guest is God. We take pride in creating truly personal and authentic<br />
experiences for our guests, and showing a special regard for every<br />
guest who crosses our threshold. And, I must add, we look for every<br />
opportunity to convey the essence of India.<br />
There is little doubt that the restaurant will be a success in London<br />
and set a new benchmark for others to meet. However, it also builds<br />
a greater awareness within London of the group. What strikes the<br />
listener from both the interview and their overall approach is that<br />
they understand that a guest’s stay is all about the experience and that<br />
an exceptional experience creates something special which in turns<br />
builds success and legacy.<br />
10 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
COMMENT: JOELSON<br />
LEASEHOLD COMMERCIAL<br />
PROPERTY: THE PITFALLS<br />
Niall McCann, Partner at Joelson, examines<br />
how businesses can avoid common mistakes when<br />
it comes to acquiring the right premises.<br />
I have seen it happen so many times.<br />
An entrepreneur in the hospitality space<br />
has an idea for a new concept. People<br />
like it. A business plan is produced. The<br />
numbers look good and funding is achieved.<br />
It is champagne all round – job done. But<br />
it is not…<br />
Often the biggest hurdle is not these initial<br />
stages but successfully acquiring suitable<br />
premises. In a rush to open the new business,<br />
here are some common mistakes and what<br />
can be done to avoid them.<br />
When is a low rent not a low rent?<br />
Sometimes what is a low rent can change<br />
significantly if the lease contains a rent<br />
review clause where the rent is shortly due,<br />
or even overdue, for assessment. Such clauses<br />
tend to specify that the rent will only be<br />
reviewed upwards and, whilst the new level<br />
can be negotiated between the landlord’s<br />
and tenant’s respective surveyors, the hike<br />
in rent can be considerable. Any increase<br />
is likely to be exacerbated if the area has<br />
become gentrified in recent years with<br />
rents of comparable properties increasing.<br />
Ironically, whilst it is businesses which can<br />
improve an area through investment and<br />
hard work, they can end up paying for the<br />
privilege via increased rents!<br />
If a rent review is looming, the rent<br />
review provisions in the lease should<br />
be checked and advice sought from a<br />
surveyor on comparable rents in the area<br />
and the prospect of a significant increase<br />
in the rent.<br />
Surely the length of the lease does not<br />
matter on a commercial unit?<br />
A common misconception is that all<br />
commercial leases are automatically<br />
renewed at the end of the term by virtue of<br />
the Landlord and Tenant Act 1954. However,<br />
a lease can opt out of this Act. When this<br />
is the case, the sale particulars should say<br />
words such as, ‘outside of the Act’. Any<br />
properties with leases outside of the Act<br />
should be treated with caution. It might<br />
be that you are happy for your new vegan,<br />
raw Korean BBQ restaurant to risk being a<br />
pop-up. However, do not fall into the trap of<br />
thinking that, just because you spend time<br />
and money creating a beautiful restaurant,<br />
that the landlord must grant a new lease on<br />
expiry of the old. They might be very grateful<br />
for you for equipping a unit with a brand-new<br />
kitchen that a new tenant would be happy to<br />
pay a premium for!<br />
Why don’t I just rent an A1 unit? They are<br />
more readily available and cheaper!<br />
A1 units are cheaper and more available for<br />
a reason! An A1 use class is for shops and<br />
retail outlets – not a full-blown restaurant<br />
and bar. Whilst operators are ‘pushing the<br />
boundaries’ with their offers from A1 units<br />
by having central off-site kitchens, limited<br />
seating and a significant percentage of offsales<br />
many start-ups, in my opinion, sail too<br />
close to the wind and have operations which<br />
really should be from A3 or A4 units (food/<br />
drink and drink establishments respectively).<br />
These businesses are at constant risk of<br />
complaints, investigations and ultimately<br />
enforcement action which can easily destroy<br />
a business before it has become established.<br />
This does not mean that A1 units should be<br />
dismissed out of hand. It might be possible<br />
to either vary the planning use (whether<br />
permanently or for two years) or, if the<br />
premises has operated as a restaurant or bar<br />
continuously for at least 10 years it might be<br />
possible to obtain a Certificate of Lawful Use<br />
provided that the necessary evidence can<br />
be gathered.<br />
What the street needs is a late-night<br />
bar! Why are the only units selling alcohol<br />
restaurants?<br />
There could be a very good reason for this.<br />
If the premises is an area heavily saturated<br />
with licensed premises it could have been<br />
designated as a special policy area. Whilst the<br />
ramifications of a premises being located in<br />
such an area differs from council to council<br />
the upshot could be that a premises licence<br />
for the sale of alcohol will only be permitted if<br />
the sale of alcohol is ancillary to the provision<br />
of food and with a relatively sensible closing<br />
hour, that would prevent the opening of a<br />
late-night bar! Alternatively, it could be very<br />
vocal local residents which are preventing<br />
certain types of premises opening even if, on<br />
the face of it, there is demand.<br />
If you have any doubts about a potential<br />
premises it is always best to ‘bottom out’<br />
issues such as the above at an earlier stage<br />
to avoid wasting the funds raised and<br />
disappointed investors!<br />
epmagazine.co.uk | 11
EDUCATION: LEADERS<br />
Do we do enough<br />
to develop leaders?<br />
The argument is that the education system is not teaching the life skills<br />
fundamental to leadership – so businesses need to be prepared to step in.<br />
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12 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
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One of the on-going debates of the last<br />
decade has been that few have emerged<br />
as genuine new leaders. Still the Industry is<br />
dominated by names that have led since the<br />
90s. It is high time that new leaders broke<br />
through and took on the mantle.<br />
There is no doubt that the industry boasts<br />
a generation that has remained in key<br />
board roles for the longest period in history.<br />
However it is not their responsibility to leave<br />
the stage but it should be a natural evolution<br />
that pushes at those at the top and, when the<br />
opportunity, arises replaces them – but there<br />
does not appear to be the depth of talent<br />
pushing to take on the key lead roles.<br />
Maybe there is a need to take a step back<br />
and think differently about the problem<br />
– to find new solutions and ideas? Talent<br />
is talent and there is some exceptional<br />
talent in the market but it is clear that more<br />
needs to be done<br />
in order to support<br />
the development of<br />
new leaders. Could<br />
it be that the base<br />
foundations for<br />
leaders is not the<br />
same as it used to be<br />
and so the system is<br />
the problem?<br />
In September (2016) a new research report<br />
by the National Citizen Service noted that:<br />
n 70% of senior business leaders think many<br />
of the skills needed to do well at work are not,<br />
and cannot, be taught in the classroom<br />
n The UK’s 15–17 year olds feel under<br />
significant pressure to excel in exams at<br />
the expense of other life skills, experiences,<br />
healthy relationships and even their own<br />
happiness, suggesting that they are struggling<br />
to juggle the demands of young adulthood<br />
n The research also shows that half of British<br />
parents believe their child should put school<br />
or college work before everything else if<br />
they want to do well in the future. Only 13%<br />
of parents think their child spending time<br />
on hobbies and non-school interests is of<br />
importance at this stage, and just one in five<br />
see gaining more work experience as<br />
a priority<br />
n In contrast, 63% of business leaders say<br />
the best young employees are those who<br />
have developed skills and interests outside<br />
the classroom and over half (55%) would<br />
like to see more young people take part in<br />
structured youth programmers to help<br />
them better prepare for the workplace<br />
n The study, which polled 1,000 15–17 year<br />
olds and 1,000 parents with children of the<br />
same age, as well as 100 senior business<br />
leaders, shows that the pursuit of good grades<br />
is affecting the ability of teens to spend time<br />
developing important skills which could be<br />
of benefit in later life. This is backed up by<br />
the views of British business leaders, 67%<br />
of whom said they believe that younger<br />
employees come into the workplace lacking<br />
some of the necessary skills, such as time<br />
management and team working abilities<br />
n In fact, 70% of business leaders agreed<br />
RESEARCH SHOWS THAT HALF OF BRITISH PARENTS<br />
BELIEVE THEIR CHILD SHOULD PUT SCHOOL OR<br />
COLLEGE WORK BEFORE EVERYTHING ELSE IF THEY<br />
WANT TO DO WELL IN THE FUTURE.<br />
that many of the skills needed to do well at<br />
work are not taught in the classroom and<br />
their top advice to teens was to develop<br />
broader life/work skills before leaving<br />
education (51%) and to try to achieve a<br />
healthy balance between studying and<br />
socialising (42%.)<br />
All the above suggests that the education<br />
system teaches intelligence, but maybe not<br />
life skills nor leadership. Leadership is not<br />
just about insight but emotional intelligence,<br />
values, principles, vision – things that<br />
require life skills. Long term success is about<br />
character as much as skill. So if the system<br />
will not teach these, can business step in?<br />
Can business create new coaching schemes<br />
to nurture potential leaders?<br />
Leaders have always held a unique<br />
position within British history and folklore.<br />
The British have always warmed to visible,<br />
clear leaders and they carry a unique<br />
responsibility in not just business but within<br />
communities and with families.<br />
Success over a long period of time requires<br />
depth and respect from others. Respect<br />
comes from many sources but one can gain<br />
instant respect through being a step above<br />
others in how one behaves. This often comes<br />
from failure and life lessons.<br />
This is where modern life does make it<br />
more difficult than in past times for there are<br />
no simple rules anymore.<br />
Too much is about grades, schools, skills<br />
and not about the ability to inspire others<br />
and to show vision or a belief in something<br />
greater than themselves – and yet the person<br />
that most will recall from their careers will<br />
possess these traits. Hospitality has more<br />
than most. We are fortunate. It is how we lay<br />
the ground for those that follow.<br />
The challenge –<br />
and the reason why<br />
people do require<br />
coaching – is that<br />
the art is to combine<br />
character with the<br />
ability to let skills<br />
and talent feel free<br />
and be productive in<br />
a socially competent<br />
fashion. In today’s<br />
world, so many people do not let themselves<br />
be free enough to let their talents be<br />
productivity. There are so many obstacles<br />
to overcome – shyness, fear, and even just a<br />
need to try and do what is right and stand<br />
out. The British love the eccentric character<br />
and yet the educational system rarely<br />
encourages talent to be brave and different.<br />
The system asks for people to conform and<br />
yet at the same time we ask for the same<br />
people to be brave and not conform when<br />
it matters.<br />
To be successful, it is no longer about<br />
grades but teams. Bringing together multitalented<br />
teams to perform as one. This<br />
requires a different set of knowledge. To be<br />
successful, it does require bravery as it is not<br />
an easy journey and it is easier to opt out.<br />
It lies with business to help nurture<br />
the future.<br />
epmagazine.co.uk | 13
CUSTOMER EXPERIENCE: THE ROYAL CRESCENT<br />
The 250th Anniversary<br />
The Royal Crescent Hotel & Spa celebrates the<br />
250th anniversary of Bath’s historic Royal Crescent this<br />
year. <strong>EP</strong> speaks to General Manager Jonathan Stapleton<br />
about this landmark and his vision for luxury hospitality.<br />
14 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
The architectural landmark is one<br />
which The Royal Crescent is eager<br />
to celebrate and began planning<br />
18 months in advance. With the aim<br />
to have everyone involved and feel<br />
part of the activities. The anniversary<br />
includes a specially created logo which<br />
will appear in printed and online hotel<br />
material. Guests may take flight in a<br />
Taittinger hot air balloon and soar over<br />
the beautiful city of Bath or if staying in a Suite receive a specially<br />
commissioned bottle of Bath Gin amongst other treats. For Jonathan<br />
the celebration begins on the doorstep with a Afternoon Tea picnic for<br />
local residents and the staff. A reward which illustrates the importance<br />
placed on the team since Jonathan joined.<br />
“When I first arrived two years ago, the mind set was to promote<br />
Bath first and The Royal Crescent Hotel & Spa second, the city was<br />
the destination and if people visited, they would hopefully stay with<br />
us. We swapped this mind-set to make the hotel the destination and<br />
Bath became an experience the guest may wish to do.” Jonathan<br />
explains how the local tourist authority has been focused on 80% day<br />
market and 20% stayer market. Not the ideal approach for hotels and<br />
therefore his aim was to make improvements to the product and now<br />
they are starting to see the benefit.<br />
The change in strategy has also been effective because this year sees<br />
400 to 500 new rooms opening in Bath. “Luckily they are mostly in<br />
the four star market and I don’t want to sound arrogant but I believe<br />
our brand is now strong enough to only feel a slight impact. It could<br />
even favour us with some guests opting to stay away from the actual<br />
conference venues if they are in town and attending an event at these<br />
“We swapped this mind-set to<br />
make the hotel the destination and<br />
Bath became an experience”<br />
new properties. I also believe the four star market may fight between<br />
themselves and with our location a little outside the centre, we<br />
shouldn’t see as much effect on business as city centre hotels, which<br />
geographically may feel something.”<br />
Jonathan has 44 years industry experience including six years as<br />
GM of The Old Course Hotel in Scotland. To ensure the hotel is ready<br />
for the future of luxury hospitality, Jonathan has also implemented<br />
a change to the hotel’s market positioning to make it competitive to<br />
those slightly further afield – Cliveden House, Chewton Glen and Le<br />
Manoir aux Quat’Saisons. “This allowed us to amend our room rates<br />
so they are more comparable with this grouping. During the high<br />
season we have brought up our rates by £100 and on the off season by<br />
£50 to £60.”<br />
Having a clear vision has helped Jonathan and team prepare<br />
themselves for the future. They formed a plan for where they<br />
wanted to be in five years and produced a mission statement for<br />
each year. This included building a profit over time and realising<br />
the full potential of the hotel, which is reflected in the anniversary<br />
celebrations. Jonathan believes that behind it all is a philosophy of<br />
what the customer journey will be and how this is delivered.<br />
“We invest heavily in our people and support them as well as<br />
continuously improving the product. I apply my experience and<br />
personally run service, sales and cultural training. I want to train<br />
epmagazine.co.uk | 15
CUSTOMER EXPERIENCE: THE ROYAL CRESCENT<br />
managers to become leaders and this year we are taking head of<br />
departments on modular training courses given by an external<br />
company. This form of classroom training can benefit the team and<br />
I feel now is the right time to apply this. I have taken them so far<br />
and if we were to do this any earlier they wouldn’t have embraced or<br />
benefitted it as much.”<br />
Training the team personally is a feat that takes up much time but<br />
Jonathan believes it is what’s needed to help the next generation<br />
through. He also trusts that external training is needed for overall<br />
development and both forms of learning allow skills and passion to<br />
grow. Jonathan understands that some may go on to other hotels,<br />
even after this heavy investment, but he just wants them to remain<br />
motivated and benefit the overall industry.<br />
This implemented educational system is connected to the vision<br />
they have set at the hotel and the team are empowered to take risks<br />
where the guest isn’t impacted. “The team are dynamic here and we<br />
have found that by setting the vision they will activity stay in touch<br />
even when they are on holiday. This isn’t because we have asked them,<br />
they want to do this. It is not seen as an extra thing to do.”<br />
“The younger generation, and by that I mean up to the mid-40s,<br />
have more of a balance to their life. Their relationship with their<br />
partners is not as traditional as my generation. We worked up to 100<br />
hours a week and our partners accepted it. I think the next generation<br />
don’t want to do this and I don’t expect them to. They would like<br />
breaks, holidays and access wellbeing through different forms.”<br />
Jonathan sets the tone for hard work at the hotel and is an example for<br />
the next generation. The hope is that this transpires down to the younger<br />
members of the team. He still walks the floor and keeps attention to<br />
detail in all areas. He praises those at grass roots level and makes sure he<br />
tells someone if they are doing a good job and thanks them.<br />
Jonathan believes in genuine care and comfort for the guest and<br />
makes sure his team are there to cater in a personalised way for each<br />
person. “Encouraging engagement with the guest builds confidence<br />
on both sides and although each guest is different, our staff are taught<br />
how to be the best they can be”.<br />
Setting a vision may be an easy task to tick yet implementing it<br />
can be one of the hardest challenges to achieve. Jonathan and his<br />
team have pictured where they want The Royal Crescent to stand<br />
and amended their strategy to ensure they are in pole position. Their<br />
educational programme has empowered their staff to allow a flexible<br />
experience for their guests and is aligned to their overall objectives.<br />
As a proven leader in the industry, Jonathan has used his experience<br />
to ensure his passion is passed down and his team understand fully<br />
where the hotel wants to be. As they celebrate 250th years in one of<br />
the country’s most famous crescents, Jonathan is making sure the next<br />
generation are prepared to take the hotel into the next chapter.<br />
16 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
COMMENT: WMT<br />
FINDERS KE<strong>EP</strong>ERS?<br />
Peter Davies, WMT Chartered Accountants,<br />
considers how the hospitality industry is dealing<br />
with the staffing crisis.<br />
Recruiting and keeping good staff has long<br />
been a challenge for the industry. The Brexit<br />
vote, and the corresponding drop in the<br />
value of the pound isn’t helping. Overseas<br />
staff feel less welcome and the money they<br />
earn here in the UK isn’t worth as much as it<br />
used to be back in their homeland.<br />
Everyone is hoping that this is all part of<br />
the adjustment process; that the economy<br />
will settle down and business optimism will<br />
return to pre-Brexit levels (or better!). In the<br />
meantime, what is the hospitality industry<br />
doing to cope with staffing issues and how<br />
can you benefit from adopting some of your<br />
competitors’ strategies?<br />
Keeping staff<br />
You don’t have to read reams of research<br />
on leadership and teamwork to know that<br />
open and transparent communication with<br />
staff helps to retain and motivate them.<br />
Operators at every level from sandwich<br />
shops to top class hotels have found that<br />
transparent two-way communication<br />
improves staff retention and helps deliver<br />
better customer service.<br />
What you do to make sure communication<br />
between staff and the business works doesn’t<br />
have to be complicated or particularly<br />
time-consuming.<br />
I’ve seen many restaurants benefit from<br />
simply briefing staff at the beginning of<br />
service – how many covers are expected,<br />
when service will be busiest, and how staff<br />
can help the business to reach its targets.<br />
Sounds obvious – but often this gets lost in<br />
the day-to-day rush to be ready for service.<br />
Others have turned to technology and set<br />
up closed social media groups, held an ‘any<br />
questions or ideas’ webinar for an hour now<br />
and again or used a specialist app to keep<br />
staff in the loop and collect their ideas.<br />
Increasing staff commitment<br />
Just as the trend in experiential dining is<br />
attracting customers to venues, employees<br />
are looking for jobs that offer a richer and<br />
more varied work experience.<br />
Online recruiter CV library reports that<br />
96% of workers say they are less likely to<br />
leave an employer if they are offered training<br />
and development opportunities. But this can<br />
add to your costs, so what sort of training<br />
should you offer?<br />
EMPLOYEES ARE LOOKING<br />
FOR JOBS THAT OFFER A<br />
RICHER AND MORE VARIED<br />
WORK EXPERIENCE.<br />
Hotels and restaurants have found that<br />
offering cross departmental training and<br />
shadowing opportunities are a win-win<br />
option. Employees learn about each other’s<br />
jobs which means they work better together,<br />
resolve issues between themselves and<br />
customer service improves as a result. It also<br />
makes the workforce more flexible.<br />
There are benefits in kind that could work<br />
for you also. A popular option is to sign<br />
up for a service that provides employees<br />
with discounts and offers such as free<br />
mobile phone insurance, money off their<br />
supermarket shop and deals on cinema<br />
tickets. It is a taxable benefit but the savings<br />
they can make far outweigh the cost to them.<br />
Other employers can always offer cash to<br />
try and lure your staff away, but if you are<br />
offering your team something else that they<br />
value as a part of their reward, that can help<br />
you fend off your competitors’ advances.<br />
Share options are also worth considering,<br />
particularly for key staff. Businesses<br />
using share options to retain a top chef or<br />
restaurant manager usually offer a share<br />
in the profits in return for meeting income<br />
levels over a period of time. Why not add<br />
other metrics into the mix such as staff<br />
retention levels and the outcomes of 360<br />
feedback on their management skills?<br />
Recruiting new staff<br />
No matter how good you are at retaining<br />
staff, you’ll always need to recruit new ones.<br />
If you’re struggling to identify potential<br />
new recruits, try offering a financial incentive<br />
to employees to introduce candidates. Just<br />
take care to strike a balance between offering<br />
a reward that makes it worth their while<br />
and one that encourages them to introduce<br />
anyone and everyone.<br />
Once you’ve got a candidate, your tronc<br />
scheme can play a key part in making an<br />
employment package look attractive. If you<br />
suspect that yours isn’t work as hard as it<br />
could, consider getting some advice on how<br />
to make it more effective.<br />
Strong competition for unskilled and<br />
semi-skilled workers is coming from other<br />
industries as well as other restaurants. The<br />
winners in this tug of war are likely be those<br />
who can combine opportunities for staff<br />
development as well as reward based on<br />
achieving goals.<br />
epmagazine.co.uk | 17
CUSTOMER EXPERIENCE: MELIÁ<br />
Defining Bleisure<br />
Meliá Hotels International has honed the concept of Bleisure and<br />
use it at the core of their expansion plans, culture and customer<br />
service offering. <strong>EP</strong> meets Gioele Camarlinghi, Area Director for<br />
Meliá Hotels International in the UK to find out more.<br />
The Meliá Group has its roots very much in Spain with the majority<br />
shareholding in the business still being held by the founding<br />
Escarrer family. The brand started as a chain of resort hotels focusing<br />
on giving the foreign traveler a true taste of Spanish hospitality, food,<br />
culture and fun and now boasts more than 370 hotels around the<br />
world on four continents. It is an impressive growth and over the last<br />
few years they have developed<br />
their strength in the UK.<br />
The UK has always been an<br />
important market for Meliá Hotels<br />
International as many British<br />
travelers, having experienced the<br />
variety of Meliá resorts abroad,<br />
enjoy access to the same at home. It<br />
is for this reason that Meliá Hotels<br />
International is planning for<br />
substantial growth with the aim of<br />
having all their brands represented<br />
in the UK.<br />
This began with the iconic<br />
Meliá White House followed by<br />
ME by Meliá in 2013, with the<br />
launch of ME London, and in the<br />
last few years the introduction of<br />
‘INNSIDE by Meliá, an urban<br />
lifestyle hotel that caters to<br />
savvy business and chic leisure<br />
travellers.<br />
Following the successful opening<br />
of INNSIDE Manchester, this<br />
contemporary brand continues to<br />
grow. Glasgow is the next scheduled<br />
city for this part of the brand in <strong>2017</strong>, followed by anticipated openings in<br />
Birmingham, Liverpool, Newcastle, Edinburgh and Cardiff will follow.<br />
“We are very fortunate that the British have a deep love for Spanish<br />
culture developed over many years,” notes Gioele Camarlinghi. “Each<br />
City has its own culture and story and we will find our place within<br />
the story.”<br />
“As a brand Meliá Hotels International is both well-known and<br />
yet not known at all. Our name builds trust and credibility as we are<br />
well established yet people still want to learn more about us. Our role<br />
is to ensure that we become part of the communities in which we sit<br />
and serve.”<br />
Expansion and culture of the group is underpinned by their concept<br />
of Bleisure, which is where they<br />
actively look for opportunities to<br />
operate and develop the business<br />
in key cities where there is a<br />
special leisure heritage. Sports,<br />
arts and cultural elements are<br />
used as a basis to create an<br />
effective and thriving business.<br />
The concept of Bleisure<br />
runs through the culture of<br />
the group which is focused on<br />
ensuring that guests, regardless<br />
of whether travelling on business<br />
or leisure are welcomed and<br />
cared for as family, inspired in<br />
a variety of ways and always<br />
enjoy the most pleasurable and<br />
memorable of experiences whilst<br />
in their care.<br />
Situated on a quiet corner in<br />
the charming area of Regent’s<br />
Park, an imposing 1930’s art deco<br />
building is home to the Meliá<br />
White House. Since April 2010<br />
Gioele Camarlinghi has been at<br />
the helm. On meeting Gioele, he<br />
is a humble, yet passionate and colourful Italian hotelier who truly<br />
believes that hotels are “theatres” and that as a GM it is his honour to<br />
be the director and producer of the theatre show. His aim is to inspire<br />
his guests in the most innovative, and emotive of ways, by putting on<br />
the best “performances” and building relationships with the brand<br />
that transcends continents and generations.<br />
18 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
“Our role is to ensure that we become part<br />
of the communities in which we sit and serve.”<br />
“For me, true hotel management is about developing a team that the<br />
guest not only trusts but likes to be with. Service sits at my heart and I<br />
love how hotels offer guests an experience that they will never forget.<br />
It is something that lives in the memory for years. However, to achieve<br />
such emotion requires the right team. Hospitality is all about people.<br />
Any GM is only as good as any of the individual staff member they lead.<br />
The guest’s experience relies on great service – so it is all about people<br />
and the environment. The more that we empower the team to play their<br />
part and enjoy their work, the guest will enjoy their stay. My job is to<br />
inspire our people to be the best they can be and to enjoy their work.<br />
I am a coach, a conducter, a parent, a confident and a chef all rolled<br />
into one.”<br />
Innovation and creative thinking is at the heart of this hotelier’s<br />
vision. Gioele has a traditional hotel in architecture and furnishings<br />
and has cleverly and seamlessly mixed this with the avant-garde and<br />
the contemporary.<br />
“The White House has a great history and legacy, which gives us a<br />
strong story to tell. We bring together this heritage and combine it with<br />
modern and creative art styles – whether in the Dry Martini Bar or in<br />
the restaurants. We have set the stage in a way that is distinctly different<br />
to other hotels and which will challenge the senses of the guest.”<br />
Visibility to customer and their loyalty is a challenge that they, like<br />
many majority privately owned hotel chains are faced with. Being<br />
innovative and creative is how they are overcoming this challenge.<br />
Meliá White House under Gioele’s vision and what started out<br />
as simply wanting to fill a large empty wall with art on a stairwell<br />
has unexpectedly turned this hotel into an art gallery for emerging<br />
artistic talent. An ever-changing collection of pieces on walls and<br />
sculptures around the hotel constantly engage and challenges guests<br />
and add inspirational value. This initiative has been such a success<br />
that for the third year running, an entire floor of 70 bedrooms is<br />
opened to over 100 artists who exhibit their art in these rooms during<br />
“ArtRooms”, this fair is free for the hotel’s guests and is open to the<br />
public. This gives the artists unique visibility, often leading to further<br />
opportunities within the industry and provides the hotel with the<br />
pleasure of connecting with guests and the local community in an<br />
inspiring and uniquely bleisurable way.<br />
As a family founded hotel, family is at the heart of many of the<br />
initiatives on offer. This includes adapting experiences and amenities<br />
for children under the Kids & Co brand (which includes unlimited<br />
ice-cream and personalised check-in) to helping parents when<br />
on business trips away from home. They soften the pang of guilt often<br />
felt by facilitating complimentary expert led talks on a variety of<br />
topics covering parenting, child behaviours and mindfulness. As well<br />
as ensuring the wellbeing of all guests with a nutritionist on site to<br />
advise on exercise, healthy eating and the ability to tailor individual<br />
menus – truly ensuring the holistic wellbeing of body and mind of<br />
all guests.<br />
Meliá Hotels International and Gioele bring fun, colour and the<br />
mix of Spanish and Mediterranean flavour into their hospitality and<br />
culture. Their bleisure environment gives guests an opportunity to be<br />
inspired by the creative, mindful hospitality and the opportunity to<br />
experience the various joys of the Mediterranean without having to<br />
leave the comfort of the UK.<br />
epmagazine.co.uk | 19
COMMENT: NEW WORLD<br />
ARE WE BRAVE ENOUGH<br />
TO THINK DIFFERENTLY?<br />
Few experts are so clever anymore. Have you ever considered<br />
creating an Internal Board made up of 25–35 year olds?<br />
Over the last ten years, many experts<br />
have had their judgements and insights<br />
face scrutiny through wrong predictions.<br />
Maybe the lesson of last decade is that it is<br />
very difficult to have complete insight into<br />
how the markets and business are vulnerable.<br />
In January, the Bank of England admitted<br />
that many of the economists got the 2008<br />
crash completely wrong. They also forecast<br />
the fall out of Brexit wrongly. They are not<br />
alone. Many have got some of the key events<br />
of the last decade wrong.<br />
Maybe the real lesson is that we need to<br />
be more open to different thinking and to<br />
encourage executives to be brave enough<br />
to think differently? However this is hard<br />
to achieve as there is a whole level that has<br />
become almost lazy in their thinking. Liam Fox<br />
was roundly criticised in late 2016 for saying<br />
many businesses had become lazy in the<br />
way they competed for business. It was a bold<br />
comment but there was some truth within it.<br />
Many companies are more internally focused<br />
than externally eyed. The customer has not<br />
always been king anymore and maybe the<br />
time is right to return to that basic rule that<br />
everyone used to know within Hospitality.<br />
However, there is also a need to free up<br />
the thinking of the younger generations that<br />
are today breaking through and are looking<br />
at the world differently to how many of the<br />
established leaders of today understood<br />
business up to the 2008 crash.<br />
Many will argue that this is a brave new<br />
world. In some ways it is but in many ways it<br />
is not. It is just the same as it ever has been.<br />
The difference is that:<br />
n Many businesses have moved away<br />
from the fundamentals that originally<br />
created success.<br />
ASAWIN KLABMA | WWW.123RF.COM<br />
n We need to free up new leaders to have a<br />
voice. It is an often discussed topic that there<br />
has been an absence of leaders breaking<br />
through which is seen as the younger<br />
generation’s fault. No, it is how that talent has<br />
been nurtured over the last twenty years.<br />
n Thinking has changed. The baby boomers<br />
grew up in an era when an entrepreneur was<br />
expected to be focused on wealth attainment.<br />
Today many are focused on their impact<br />
on society – there is a group of new socially<br />
driven entrepreneurs. How can the wealth<br />
driven entrepreneur really relate to the<br />
socially driven entrepreneur?<br />
n Many cultures have become lazy. There is<br />
an argument that the hotel industry that was<br />
so confident in itself and the dynamics of the<br />
market that it has been caught off guard twice<br />
in the last decade.<br />
n Firstly, the Airbnb model has posed a<br />
serious challenge to the mid-market. It<br />
was a model that caught many unaware but<br />
the consumer responded to the concept<br />
and the business has grown at speed.<br />
n Secondly, it is noted that online innovators<br />
have grabbed a massive 25% of the hotel<br />
industry, and it is predicted that this will rise<br />
to 45% in 5–7 years. Few forecast this growth.<br />
20 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
RACORN | WWW.123RF.COM<br />
WE ARE NOT ADVOCATING THAT THEY TAKE<br />
OVER FROM THE BOARD BUT SIMPLY THAT<br />
THERE IS MARRIAGE CREATED BETWEEN THE<br />
EXPERIENCED AND THE YOUNG – AND TO<br />
ENCOURAGE NEW IDEAS AND THINKING. NO?<br />
In terms of the global industry, there are<br />
some key points to consider:<br />
n Many hospitality companies became lazy<br />
in the basics and at times took the consumer<br />
for granted. The consumer was open to change<br />
and responded when that change came.<br />
n The last decade has been the era of the<br />
digital entrepreneur. Just as the Industrial<br />
Revolution in the 19th century changed<br />
working practices radically, we are seeing the<br />
same gain with a second revolution, although<br />
this time it is digitally led.<br />
n This is arguably one of the “inventive<br />
“eras since those days of the first Industrial<br />
revolution when everything seemed possible.<br />
However, one of the key differences to today<br />
is that most of the “creators” are under 35<br />
years of age. They create new concepts<br />
online and see their audience as global.<br />
So why not bring together groups of the<br />
young and harness their insight and ideas; to<br />
be prepared to learn from them.<br />
What are the dangers?<br />
It will be said that they will be “naive and<br />
inexperienced”. True as were many of today’s<br />
leaders when they were first trusted.<br />
We are not advocating that they take<br />
over from the board but simply that there is<br />
marriage created between the experienced<br />
and the young – and to encourage new ideas<br />
and thinking. No?<br />
Then reflect on how much change or<br />
innovation has been created by established<br />
players? How much inspirational leadership<br />
has been shown by those from the large<br />
companies with the real strength to be able to<br />
create change?<br />
The real breakthrough that have taken place<br />
– whether Airbnb or Facebook or Twitter –<br />
has been created by those brave enough to<br />
think differently. Most will agree that many<br />
cultures have become staid and ineffective<br />
but cannot see how to create change as it<br />
does take so long to happen. Within large<br />
companies this is true. It is often compared<br />
to an oil tanker changing direction but maybe<br />
the starting point is to encourage the talented<br />
young leaders to have a voice and to be<br />
encouraged to be brave. It makes a statement<br />
and places a marker in the ground.<br />
This is not a new idea.<br />
The old catering giant, Gardner Merchant,<br />
had a policy of not sacking a manager unless<br />
unavoidable as they wanted their managers<br />
to be brave enough to take risk without fear.<br />
Many of the middle Operations Managers<br />
today were an average ten years younger than<br />
they are today. Many of today’s Chairmen<br />
first became board directors between the<br />
ages of 28–34. This is not a radical new idea.<br />
It is a return to what worked in the past.<br />
Hospitality faces a bright and exciting<br />
future. The desire for great experiences is<br />
growing. Whatever the economic challenges<br />
that are faced, there is consumer demand<br />
for great experiences that get them to relax<br />
and have fun. There is also a consumer love<br />
affair with food. This is the time to embrace<br />
change and to ensure that there are a strong<br />
body of new leaders emerging to take the<br />
industry forward. However, their skills will<br />
be different and their perspectives.<br />
The challenge lies in a delicate balance<br />
in how we create a marriage between<br />
leadership teams and young innovators plus<br />
coach middle managers to think differently<br />
and to explore new ideas.<br />
So what is recommended?<br />
n Creation of Internal Think Tanks<br />
to explore new ideas and service offers<br />
n Training/coaching sessions that<br />
encourage lateral thinking and the<br />
exploration of the new<br />
n The freeing of potential leaders<br />
within cultures<br />
n An understanding that experts do<br />
not always know best anymore<br />
n A close eye on the consumer and<br />
their desires<br />
n A return to the old maxim “The<br />
Customer is King”<br />
epmagazine.co.uk | 21
COMMENT: APPRENTICESHIP LEVY<br />
WHEN THE LEVY<br />
COMES INTO PLAY<br />
Most large companies train their staff to their own requirements<br />
yet are subject to the new Apprenticeship Levy. Bob Cotton and<br />
Miles Quest argue that the levy will not achieve its purpose.<br />
When George Osborne rushed the<br />
Apprenticeship Levy into his last budget –<br />
at 0.5 per cent of a business’s payroll over<br />
£3m, raised monthly from PAYE returns –<br />
it gave the impression then of being hastily<br />
introduced. True to form, the details are<br />
still being worked out with announcements<br />
coming through every week even though the<br />
levy comes into force next April. With little<br />
or no prior consultation with industry before<br />
the announcement, employers now have to<br />
scramble to understand the implications of<br />
the measure.<br />
Clearly, the government, concerned about<br />
the rising cost of further and vocational<br />
education, has placed the responsibility<br />
of training fairly and squarely on employers –<br />
and is using the stick and carrot of the<br />
levy to ensure that the largest employers<br />
can’t escape. In view of the industry’s patchy<br />
training record this might be thought to<br />
benefit hospitality but there are tens of<br />
thousands of small employers who will<br />
escape the levy and only a few hundred<br />
large enough to pay it. The burden is on the<br />
largest employers.<br />
Many details, however, are still to be<br />
worked out. Each company’s levy will<br />
build up a fund, which will be added to by<br />
the government at 10 per cent, from which<br />
the company can withdraw money to pay<br />
expenses related to the training of the<br />
apprentices they employ. If the levy raised by<br />
each company is unspent after 18 months it<br />
reverts to the Treasury. So the scheme aims<br />
to encourage businesses to employ as many<br />
apprentices as possible in order to recoup<br />
as much as they can from their fund. The<br />
government believes this will create<br />
LIMONZEST | WWW.123RF.COM<br />
22 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
3m additional apprentices although it’s not<br />
clear from where.<br />
But there is clearly a limit to how many<br />
apprentices a company wants to train and<br />
employ and, in any case, only expenses<br />
directly related to the training and end-point<br />
assessment, can be claimed, which excludes<br />
‘wages, statutory licences to practise, travel<br />
and subsidiary costs, managerial costs,<br />
traineeships, work placement programmes<br />
or the costs of setting up an apprenticeship<br />
programme.’ As wages represent by far the<br />
greatest cost of employing an apprentice,<br />
a company with, say, a total payroll levy<br />
of £1.5m a year would have to employ a<br />
prodigious number of apprentices to recoup<br />
even half that amount.<br />
Worse, there are businesses which have<br />
little or no need for apprentice training or<br />
who employ them abroad; they will still pay<br />
the levy but they cannot reclaim any funding<br />
as all training has to be<br />
undertaken in the UK – a<br />
drawback for hospitality<br />
companies wanting to<br />
send key staff abroad<br />
for work experience.<br />
But, as a benefit,<br />
the government has<br />
broadened the meaning<br />
of ‘apprentice’ to include<br />
practically all kinds of training – from craft to<br />
management (even up to Level 7) so training<br />
providers reckon that with some creativity,<br />
the levy should be largely revenue neutral.<br />
Companies who comprehensively train<br />
should be able to get back as much as they<br />
pay in levy. That’s the intention. Where it gets<br />
complicated is where a business has already<br />
set up training programmes, some of them<br />
award-winning, that aim to drive it forward<br />
according to its needs. In the hospitality<br />
industry, some companies have even set up<br />
their own training schools which successfully<br />
meet their objectives in terms of quantity and<br />
quality. They have no business need to recruit<br />
more apprentices than they already recruit.<br />
This alone suggests that the levy will do little<br />
to encourage more training. The government<br />
also insists that any disbursements can only<br />
be made to employers who use a registered<br />
training provider or have their own training<br />
facilities registered and inspected by<br />
OFSTED. For those companies already<br />
providing good quality training schemes,<br />
the former is viewed as an unnecessary<br />
expense and may well make confidential<br />
training practices available to others, while<br />
OFSTED increases bureaucracy. Indeed,<br />
some companies have already failed OFSTED<br />
inspections and, for various technical reasons,<br />
are unlikely to ever pass.<br />
At the same time, as an encouragement<br />
to small employers who do not pay the levy,<br />
90 per cent of the cost of their apprentice<br />
training will be covered by government – but,<br />
again, only if they use an approved training<br />
provider. The money for the remaining<br />
10 per cent will presumably come from<br />
unclaimed levies.<br />
This might all seem rather complicated.<br />
It is. But let’s not think that 0.5 per cent of<br />
IN AN INDUSTRY WHERE MOST LARGE<br />
COMPANIES ALREADY HAVE TRAINING SCHEMES<br />
IN PLACE TO MEET THEIR NEEDS, IT’S DIFFICULT<br />
TO SEE HOW THE LEVY WILL ENCOURAGE THEM<br />
TO TRAIN MORE PEOPLE.<br />
payroll is a small amount of money. Wage<br />
costs are the biggest single element in any<br />
hospitality business – anything up to 40 per<br />
cent of total turnover. Assuming that the total<br />
turnover of the hotel and catering industry<br />
alone is in the region of £50bn payroll costs<br />
at, say, 35 per cent would add up to some<br />
£17.5bn. At a low estimate, we can assume<br />
the largest hospitality employers represent<br />
about one-third of this – nearly £6bn, of<br />
which 0.5 per cent adds up to some £30m.<br />
That’s a very quick assessment – it’s unlikely<br />
to be less and may well be much more. For<br />
the largest employers it amounts to a levy of<br />
several millions.<br />
Now £30m, for such a large industry, may<br />
not be considered much but size is hardly the<br />
issue. Hospitality is a low margin industry<br />
and 0.5 per cent of payroll is a significant<br />
cost whether sales are £3m or £500m. Other<br />
costs are rising, including the National Living<br />
Wage. Margins are low and tight, particularly<br />
in the restaurant and catering industry<br />
where employment is much higher. For those<br />
employers who do not see the business need<br />
to train as much as they can recoup in levy, it<br />
is, in effect, a payroll tax.<br />
There is a further complication. At<br />
present, the scheme only applies to England:<br />
those companies (plenty in hospitality)<br />
who operate throughout the UK will face<br />
significant back office work to sort out the<br />
arrangements required by Scotland, Wales<br />
and Northern Ireland.<br />
Now, of course the hospitality industry<br />
needs more skilled craftsmen. Of course,<br />
training them is an industry responsibility. Of<br />
course, the industry’s training record is not<br />
perfect. But in an industry where most large<br />
companies already have training schemes<br />
in place to meet their needs, it’s difficult to<br />
see how the levy will<br />
encourage them to train<br />
more people than they<br />
would otherwise have<br />
trained.<br />
It’s difficult not to get<br />
the impression that the<br />
former Chancellor’s<br />
scheme is tantamount<br />
to fining successful<br />
companies who are already seriously<br />
committed to training but who may not be<br />
able to recoup all their levy – yet rewards<br />
those for whom it is a much lower priority.<br />
It is too late to make significant amends<br />
before the scheme is introduced next April<br />
but major hospitality employers are now<br />
clearly pre-occupied in creating new and<br />
innovative ways to maximize funding from<br />
their levy pot, going so far as to consider<br />
seconding training staff to providers in order<br />
to reclaim some of their direct training<br />
costs. Doubtless there will be other similar<br />
wheezes. Will it be worth it? What is certain<br />
is that the levy will take time and plenty of<br />
management effort to implement. What<br />
is not so certain is whether the number of<br />
apprentices being trained will increase.<br />
In hospitality, no figures yet have been<br />
produced to prove this.<br />
epmagazine.co.uk | 23
COMMENT: SOCIAL CHANGE<br />
WHO PLAYS THE LEAD<br />
ROLE IN SOCIAL CHANGE<br />
IN THE FUTURE?<br />
RAWPIXEL | 123RF.COM<br />
24 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
Both Entrepreneurs and Hotel General Managers<br />
will play lead roles in social change in the future.<br />
The year 2016 was one of political change<br />
with the votes on Brexit and for Trump.<br />
There is real change in the air but maybe<br />
the one truth emerging is that no longer are<br />
the political establishment in control of the<br />
change agenda.<br />
Whatever the rights and wrongs of Brexit<br />
and the changing landscape, the reality is that<br />
politicians do lag behind many businesses in<br />
understanding the change that is taking place<br />
– and this will naturally mean that it will be a<br />
responsibility for business leaders to contribute<br />
and play key roles in supporting change.<br />
In the future businesses will not only be<br />
judged by their ability to generate profits<br />
but by their contribution to society and for<br />
many hotels, to their<br />
communities.<br />
It can be fairly argued<br />
that the Hotel General<br />
Manager in many towns<br />
across the country<br />
played important<br />
community leadership<br />
roles back in the 1960s,<br />
70s and 80s. The Hotel<br />
General Manager was<br />
one of the pillars of<br />
the community along<br />
with the bank manager.<br />
The bank manger’s<br />
community role has been eroded with the<br />
new systems developed within the banks but<br />
the Hotel General Manager is still standing.<br />
Some will argue that many General<br />
Managers have become more business<br />
managers and the old-school Hotel Manager<br />
is missing but maybe these skills will return<br />
as Hospitality leaders do have a role to<br />
play within their communities. The same is<br />
true for entrepreneurs who are driving and<br />
developing new agendas – many of which are<br />
exciting but change does concern people and<br />
the old structures are struggling to adapt at<br />
the same speed as change.<br />
All the issues are natural but what is<br />
needed is a fair balance between profit<br />
MAYBE THE<br />
IMPORTANCE OF<br />
PEOPLE BECAME<br />
SLIGHTLY DILUTED WITH<br />
THE GREAT PROFITS<br />
EARNT IN THE BOOM<br />
AND THE RISE OF THE<br />
NEW DIGITAL WORLD.<br />
generation and a responsibility to the wider<br />
community. The younger generations that<br />
are breaking through do believe in this<br />
balance. There is an argument that we lost<br />
a whole decade of talent as the boom of<br />
1996–2008 was too long and perspective<br />
was lost.<br />
Not true? Well consider how many of<br />
the leaders from the 1990s are still in<br />
position today and how many have broken<br />
through since?<br />
Well change is coming as this leadership<br />
group will naturally move on and there is an<br />
exciting new group of thirtysomethings that<br />
are breaking through with new ideals and a<br />
new vision.<br />
Most of the leaders<br />
from the 1990s first<br />
became leaders in their<br />
thirtysomethings so<br />
the argument is that<br />
the old natural order is<br />
being restored.<br />
The older generation<br />
understood the<br />
importance of people<br />
and maybe this became<br />
slightly diluted with the<br />
great profits earnt in the<br />
boom and the rise of the<br />
new digital world.<br />
It took time to find the right balance.<br />
Today we argue that there is a natural<br />
marriage between the older generation and the<br />
new leaders emerging – both need the other –<br />
but more importantly Hospitality can play a<br />
bigger role on a bigger and wider stage as the<br />
old structures struggle to adapt and change.<br />
Whether with charities, in community<br />
forums, in tourism bodies, in social and talent<br />
development, Industry’s leaders – both young<br />
and older – have important roles to play.<br />
This could be an exciting period for the<br />
industry – maybe a new golden era – but in<br />
many ways, it needs a return of old fashioned<br />
values and behaviours and a real care for<br />
people again.<br />
epmagazine.co.uk | 25
INNOVATION: AUTO HOSPITALITY<br />
TECHNOLOGY CAN<br />
R<strong>EP</strong>LACE HOSPITALITY<br />
Today the question is not “Can technology replace good old-fashioned hospitality?”<br />
but “When and how will technology impact the hospitality industry?”<br />
The sector must look outside the bubble to view important<br />
markets. Whilst some will always seek the familiar, there are<br />
others who want to work with entrepreneurs to ensure they are<br />
ready to offer what the consumer now and may desire.<br />
<strong>EP</strong> now works with over 120 entrepreneurs who have original ideas<br />
and concepts that bring a point of difference to operations and engage<br />
customers. One will look back at this period and see it as the Age of<br />
Originality which encourages entrepreneurial thinking.<br />
Last year <strong>EP</strong> created the Robin Hood Ideal Reworked campaign to<br />
promote innovation, ideas and talent. There are many entrepreneurs<br />
who are a credit to the industry and this is the platform for them to<br />
thrive. They are passionate, have real talent and a belief and courage<br />
in what they are doing. It is now especially important to nurture them<br />
because change is happening at such a fast pace.<br />
At a recent hoteliers conference the argument was put forward that<br />
technology can never replace hospitality. The warmth of a personal<br />
welcome, of attentive service and the ability to interact with a human<br />
being will never be replaced by automation and a robot.<br />
However this is already happening, albeit in a small form, and it<br />
will appeal not to different generations but to different consumer<br />
behaviours. Hoteliers may argue it is a trifling matter. Guests will always<br />
opt for what they know, but innovation will always appeal in some shape<br />
or form to certain people. The turndown in a good hotel is a special<br />
touch, the drapes are closed, the lights are dimmed and the temperature<br />
is set just right. However, this turndown can now be controlled by<br />
automation and suddenly we see the revolution has started.<br />
The Henn-na Hotel in Japan has a goal that in the near future 90<br />
percent of all tasks in the hotel will be performed robotically. With 10<br />
robots already, they know where their future is going to be. It saves<br />
costs and labour in the long run and once guests have overcome the<br />
somewhat unfamiliarity, it may be embraced.<br />
This example is the ultimate extreme in terms of innovation<br />
within the hospitality industry. But major investment and long-term<br />
decisions are needed for future competitive edge. Innovation is<br />
required to maintain and for advancement, but who is bringing these<br />
new ideas into the sector?<br />
The best ideas can often come from those who look at a problem in<br />
a different way or from an altered angle. Entrepreneurs are shaking<br />
things up and for the first time we are seeing the need for them to<br />
JOZEF POLC | 123RF.COM<br />
work with established<br />
leaders in hospitality.<br />
Both the existing<br />
leading companies<br />
require the skills<br />
and original thinking<br />
coming through,<br />
as much as the<br />
entrepreneurs needs<br />
their experience<br />
and guidance.<br />
What should we prepare for?<br />
There is no doubt that we have witnessed a rise in the need ‘for an<br />
experience’, the growth of Airbnb is a strong sign of this.<br />
Technologist Kevin Kelly has observed that the maturing of virtual<br />
reality technologies heralds a fundamental shift. He believes the internet,<br />
in which information is the basic unit of currency, is moving to one in<br />
which experiences are. Will these digital experiences impact hospitality?<br />
It is now a consumer world of material abundance, and the<br />
experiences people pick are often an important part of how they<br />
identify themselves. It can be difficult for generations coming through<br />
to spend money on limited physical experiences, which are much<br />
more expensive than an alternative in the digital world.<br />
Some will argue that guests stay for the whole experience which<br />
impacts both physically and mentally, but it is important to watch<br />
the infinite and boundless virtual world. Especially as the cost,<br />
accessibility and capability are all moving in the right direction,<br />
making time the only scarcity.<br />
Real experiences for many are becoming very difficult to achieve.<br />
From 1981 to 2012, the price of the average concert ticket rose over<br />
400%. It is these changes that bring new innovation as consumers<br />
seek less expensive alternatives. In 2018 ABBA are putting on a<br />
virtual and live experience for a new generation of fans. They want to<br />
create a sense of wonder and create lasting memories, just delivered in<br />
a different medium.<br />
Purposeful companies will find renewed opportunities in taking<br />
on the new ideas from entrepreneurs and trying to understand the<br />
changing relationship between the consumer and the experience.<br />
26 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
COMMENT: REAL DIFFERENTIAL<br />
“CULTURE EATS STRATEGY<br />
FOR BREAKFAST”<br />
The late business management guru Peter Drucker is attributed to this<br />
famous quote. Both sides are argued for being able to trump the other, but<br />
does the debate miss the key point – people are the only real differential.<br />
Did you know that the average corporate<br />
manager has, on average, twice has<br />
many internals meetings each week than<br />
30 years ago?<br />
And yet there is more information<br />
available to be able to make decisions. There<br />
is an argument that internal processes are<br />
acting as a barrier to business.<br />
We all are involved in strategy discussions.<br />
Of course, strategy is important but it is<br />
secondary to culture. In Hospitality, very<br />
little will beat a strong culture with people<br />
that are engaged and wanting to make a<br />
difference. One can argue that culture was<br />
more important than strategy in the 1980s<br />
and 90s but as the rise of<br />
technology came through<br />
strongly and new markets<br />
opened up, strategies and<br />
process became more<br />
important as the concept of<br />
Brands became dominant.<br />
Often there would be a belief<br />
that the company’s name and brand would<br />
do the legwork with customers and clients<br />
that used to be covered by those out building<br />
relationships – almost to the point whereby<br />
internal processes within companies became<br />
a block to business action.<br />
However change is now in the air. There<br />
is a growing awareness that people are<br />
Hospitality’s greatest asset and there are<br />
new philosophies developing around HR<br />
who once again feel free to focus on the<br />
development of the Human asset. Operators<br />
too are becoming more aware of the guest’s<br />
overall experience and the need to empower<br />
the front line staff to ensure that they<br />
positively respond to the guest’s journey.<br />
There is an awareness that brands are<br />
not entities in themselves but need to have<br />
a connection and relationship with their<br />
customer. They appeal to the emotional<br />
side of the consumer. In an Olympic year it<br />
becomes ever more clear as the strength of<br />
the Olympics is built off the powerful people<br />
stories that emerge that make it so special.<br />
The likes of Usain Bolt and Michael<br />
Phelps will go down in history especially as<br />
it was there show-stopping exits but other<br />
stories include when the British nation<br />
gasped when Mo Farah tripped and fell midrace.<br />
The tumble didn’t stop the athlete who<br />
retained his 10,000m title with a thrilling<br />
“OFTEN THERE WOULD BE A BELIEF THAT<br />
THE COMPANY’S NAME AND BRAND WOULD<br />
DO THE LEGWORK.”<br />
victory. In the women’s 400m final, Shaunae<br />
Miller of the Bahamas somehow managed to<br />
win a dramatic gold medal by diving over the<br />
line. Miller stumbled in the final stages and<br />
then lunged forward as she headed towards<br />
the finishing line, winning by 49.44 seconds.<br />
Laura Trott won gold in the women’s<br />
omnium and then had to sit trackside as<br />
her finance Jason Kenny won his third<br />
gold of the games. Their one relationship<br />
has 10 Olympic gold medals. One of the<br />
most inspiration stories was the Brownlee<br />
brothers, Alistair and Jonny, who won gold<br />
and silver in the men’s triathlon. The British<br />
brothers collapsed into each other arms at<br />
the finish line.<br />
When creating a healthy culture, it<br />
needs to become a focal point within the<br />
company’s values. Although by putting too<br />
much emphasis on culture it simply becomes<br />
the business as opposed to strengthening<br />
the business. A balance must be found<br />
that allows for a fun, comfortable and safe<br />
environment and with time spent adding to a<br />
person’s life.<br />
A positive and inspiring culture within<br />
hospitality should not be placed ahead of<br />
strategy, but made a key driver of strategy.<br />
Anyone can copy a strategy but nobody can<br />
copy a culture. It has to originate somewhere<br />
or it will simply not happen. The leader must<br />
take responsibility and<br />
identify a cultural vision<br />
for the company and they<br />
must live and breathe it. This<br />
behaviour should inspire and<br />
involve all employees.<br />
Research tells us that<br />
all companies will change.<br />
Workforces will change. Companies will<br />
focus on creating a better balance between<br />
technology, data information and employing/<br />
empowering great people. L&D programmes<br />
will be more focused on developing<br />
individuals as great employees can make<br />
a real difference. People need to be given<br />
freedom and for new leaders to<br />
be empowered.<br />
Strong cultures need good leaders –<br />
aligned to objectives – on a number of levels<br />
and across businesses. The great companies<br />
of the past all possessed many leaders, not<br />
just a few. Strength lies with depth and within<br />
a culture. A strategy can only be a road map.<br />
No more.<br />
epmagazine.co.uk | 27
INTERNATIONAL: JUMERIAH PORT SOLLER HOTEL & SPA<br />
TELLING THE<br />
SUSTAINABLE STORY<br />
As more travellers grow conscious of their carbon footprint and crave<br />
‘eco-luxury’ stays, should hotels commit to stronger environmentally-friendly<br />
and social sustainable activities? Jumeriah Port Soller Hotel & Spa in the<br />
Mediterranean is a strong advocates of this approach.<br />
Hotels are making steps to integrate sustainable methods into<br />
their everyday operations. In well-travelled locations there is an<br />
abundance of choice for accommodation and this competition allows<br />
the opportunity for some hotels to utilise the growing eco demands<br />
from guests. Whilst not always on the top of the priority list for some<br />
hotels, for others it is becoming an essential commodity and they are<br />
reaping the rewards of the savvy traveller.<br />
Nestled in the clifftops of the Northwest coast of Mallorca,<br />
Jumeirah Port Soller Hotel & Spa is increasing its involvement in<br />
sustainable tourism. When originally built the hotel was divided into<br />
eleven low-rise structures ensuring guests experience an exceptional<br />
and natural environment during their stay. Jumeirah Port Soller have<br />
had solar thermal and photovoltaic panels installed since opening<br />
the hotel and is continuing to add to its ongoing commitment to<br />
environmentally-friendly and socially sustainable initiates.<br />
Recently the hotel celebrated its successful re-certification for<br />
sustainable tourism by meeting the strict requirements of Green<br />
Globe. It remains the only hotel on the island to have achieved this<br />
internationally recognised certification and is a clear sign of how<br />
Jumeriah Port Soller has integrated sustainable methods into its<br />
operations. It has been a busy time for the hotel, with the adding of a<br />
Tesla electronic car charging point, creating green rooftops covered in<br />
a 40cm layer of soil and introducing a greywater recycling system. The<br />
hotel is making strides in order to preserve the beauty of its natural<br />
surroundings, which should appeal to the modern traveller.<br />
Environmental initiatives are not only aimed directly at energy and<br />
water. Jumeriah Port Soller have collaborated with the Black Vulture<br />
Conservation Foundation, which protects the endangered black<br />
vulture native to Mallorca. As well as collaborating with a local olive<br />
oil co-operative ‘Cooperative de Soller’ and creating a bespoke oil<br />
available to visitors and guests.<br />
A hotel’s corporate social responsibility policies should also satisfy<br />
their employees and can be used to entice the best workers. This<br />
year Jumeriah Port Soller signed an agreement with ALLCOT, an<br />
international company that offers various services related to climate<br />
protection. Together with the hotel they developed a project which<br />
offset carbon emissions produced by employee trips in 2015.<br />
The total volume of emissions generated by the hotel’s employees<br />
came to 39 mtCO2e (metric tonnes of equivalent CO2). They chose<br />
a project located in the state of Pará, Brazil, the ‘Brazilian Rosewood<br />
Amazon Conservation’ which protects one of the most diverse and<br />
abundant ecosystems on the planet. The hotel will now invest in the<br />
project to eliminate the equivalent volume of emissions from the<br />
atmosphere to what it has produced. The project will protect the<br />
fragile ecosystem of the Amazon Rainforest and simultaneously give<br />
the depleted forests a chance to regenerate.<br />
28 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
Will other hotels follow this move? Some will argue that by respecting<br />
the harmony of the landscape they exist in, they are doing enough<br />
already. Others may look to various services that relate to the calculation,<br />
reduction and compensation of carbon footprints their teams produce.<br />
How a hotel communicates its activities may be the key for<br />
attracting future guests, especially as traveller numbers are predicted<br />
to only go up. International tourist arrivals have increased from 25<br />
million globally in 1950, to 278 million in 1980, 527 million in 1995<br />
and 1.1 billion in 2015. This is according to The World Tourism<br />
Organisation (UNWTO) which also expects international tourists to<br />
increase by 3.3% a year between 2010 and 2030 to reach 1.8 billion by<br />
2030. Many of these are likely to be of travellers who place value on a<br />
hotel’s authentic green initiatives.<br />
With this impressive growth, hotels will need to make sure they<br />
tell their story, and broadcast what difference their activities make. If<br />
there initiatives reduce impact then they must engage the guest and<br />
even invite them to support the hotels efforts.<br />
Some speak of unfair advantages and it can be argued that modern<br />
hotels gain from being able to create buildings and operations that<br />
utilise all modern advancements to reduce their impact. For older<br />
properties other challenges exist which they must overcome if they<br />
wish to become more environmentally friendly. The fear for both is<br />
that some hotels may ‘greenwash’, a deceitful practice of promoting<br />
A BALANCE BETWEEN A GREAT GUEST<br />
EXPERIENCE AND A CARE FOR THE<br />
PLANET MAY BE THE ULTIMATE AIM.<br />
environmentally friendly programs while hide ulterior motives. The<br />
ultimate consequence of this is losing credibility with guests, which<br />
may directly or indirectly alter their travel decisions in the future.<br />
Some hotels will continue to question whether green policies really<br />
matter to guests. If they chose to escape the busy modern world by<br />
relaxing and indulging in a hotel stay, do they look into environmental<br />
policies the hotel operates? It can be argued that for millennial and<br />
younger generations, the pre-thought is actually not to question the<br />
policies, because they are possibly under the assumption that all<br />
hotels must have working and successful initiatives in place by now.<br />
A balance between a great guest experience and a care for the planet<br />
may be the ultimate aim.<br />
Jumeriah Port Soller have shown an impressive work ethic by<br />
integrating environmental policies and strategies into the hotel. Its<br />
enviable location overlooking the sea on one side and the recently<br />
declared UNESCO Heritage Site of Sierra de Tramuntana on the<br />
other will tempt many travellers. How it uses its sustainable activities<br />
to guide its daily decision making process should entice even more.<br />
epmagazine.co.uk | 29
When results<br />
are required<br />
AlixPartners is a global consulting business with over<br />
1,500 employees across 25 offices around the world.<br />
We work on matters that materially affect the future of<br />
organisations, often in situations of extreme pressure<br />
and high stakes. We field small teams with deep sector,<br />
operational and situational experience who move at speed.<br />
One of our core sectors is hospitality and leisure.<br />
As part of this, in the last five years we have advised<br />
hotel companies in the UK accounting for over 5,000<br />
hotel bedrooms. We have help our clients through<br />
transactions, to restructure or to enhance their financial<br />
performance. Our clients include global brands,<br />
independent operators and financial investors.<br />
In the UK we constantly track the hotel sector, and<br />
produce a quarterly bulletin that commentates on<br />
demand, supply, pipeline and transactions.<br />
If you would like to find out more about our services,<br />
or sign up to our quarterly hotel bulletin, please<br />
email Graeme Smith at gsmith@alixpartners.com or<br />
Tom Paterson at tpaterson@alixpartners.com.<br />
When it really matters. alixpartners.com<br />
30 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
COMMENT: INDICATER<br />
LOOMING<br />
CHALLENGES<br />
Recognising and anticipating future changes<br />
may lead to a more successful and less painful<br />
few years ahead. Bob Cotton, Non-executive<br />
Director of IndiCater looks at some immediate<br />
challenges.<br />
The hospitality industry closed 2016 in good<br />
heart. The major political event, Brexit,<br />
has yet to negatively affect the industry’s<br />
well-being: indeed, the weak pound has<br />
boosted UK visitor numbers (though spend<br />
is not so buoyant) and the UK remains a key<br />
world tourism destination. The weak pound<br />
will encourage more UK residents to opt for<br />
a staycation next year. Consumer spending<br />
on eating-out remains high. The principal<br />
downside of Brexit – the likely restrictions<br />
on migrant labour, particularly the unskilled<br />
labour that the industry needs to survive in<br />
its present shape and to expand further – has<br />
yet to hit employers. When they do, however,<br />
the impact will<br />
be serious.<br />
But there are more<br />
immediate challenges.<br />
In April <strong>2017</strong>, the<br />
National Living Wage<br />
rises to £7.50 a hour,<br />
a 30p rise. That doesn’t sound much but<br />
over a 36 hour week, that’s another £10.80<br />
a week per adult employee. With so many<br />
employees on the NLW (over 60 per cent?)<br />
the cost to the industry will be significant.<br />
To reach the government’s much publicised<br />
£9 per hour by 2020, the NLW increases<br />
in 2018 and 2019 will have to be very much<br />
greater. There is also the pressure that the<br />
NLW puts on wages higher up the scale (the<br />
so-called differentials); even more serious,<br />
if Brexit does restrict the employment of<br />
migrant labour, manpower shortages will<br />
inevitably result in a natural increase in wage<br />
rates over and above the NLW. Pension costs<br />
will be an additional burden.<br />
All in all, this is a challenging scenario.<br />
The next few years will pose huge problems<br />
and employers would be wise to recognise<br />
them now. Wage percentages are going to<br />
be put under extraordinary pressure and no<br />
employer will escape.<br />
Wage increases represent one danger;<br />
food inflation is another. Already on the rise,<br />
some estimates put food inflation at four<br />
per cent in the next 12 months. Restaurant<br />
operators, already running their business<br />
on tight margins, will find rising food costs<br />
will make those margins even tighter. But, if<br />
HAVING A SOFTWARE SYSTEM TO KE<strong>EP</strong> TRACK<br />
OF YOUR MENUS’ RISING COSTS COULD ALERT<br />
YOU BEFORE IT’S TOO LATE.<br />
quality suffers, or portion sizes are reduced,<br />
reputations are inevitably harmed. And if<br />
prices are increased, the competition may win.<br />
Having a software system to keep track<br />
of your menus’ rising costs could alert you<br />
before it’s too late. Being able to adapt your<br />
recipes or change your suppliers without<br />
significantly impacting your business will<br />
allow you to keep on top of rising food costs<br />
and ensure you are maintaining a healthy<br />
margin. If inflation rises at the anticipated<br />
rate, engaging with software may not provide<br />
the definitive solution, but it will certainly<br />
help keep control of those costs.<br />
Employers need to think now about how<br />
they deal with these two looming challenges.<br />
Cost increases are already beginning to press<br />
hard on the industry’s economics but they<br />
will become much more painful in the next<br />
three years.<br />
The principal objective for any operator is<br />
to maintain standards and attract additional<br />
business. Customers, more demanding<br />
than ever, need more enticements than<br />
ever to visit a hotel or a restaurant – for the<br />
latter increasingly important will be the<br />
introduction of new tastes, value-added<br />
dishes and unusual price offers or special<br />
events that provide new excitements and<br />
extra points of interest<br />
that resonate with the<br />
needs of the target market.<br />
And realism will<br />
become more important.<br />
If Mondays are always<br />
dead it’s probably best to<br />
close and concentrate on boosting business<br />
on other days of the week which offer far<br />
greater potential reward.<br />
With a changing menu and by constantly<br />
developing the ambiance of the restaurant<br />
as a must-visit venue, the best operators<br />
will inevitably become more showman<br />
less restaurateur, more entertainer less<br />
businessman. Flair, quality, engaging<br />
early with dynamic software and being<br />
creative will most likely result in the most<br />
successful operators. Brexit and its economic<br />
consequences will demand disciplined as<br />
well as creative management.<br />
epmagazine.co.uk | 31
INNOVATION: CHANGE AGENDA<br />
There have been two common<br />
conversational themes over the last<br />
six months. Firstly, how will hospitality<br />
companies respond to the shortage of labour<br />
that will inevitably come with Brexit and<br />
secondly, how to be competitive and offer<br />
new engaging service lines in a market<br />
that is both under pressure and saturated<br />
with competition.<br />
It is true, the market is saturated with<br />
choice and options. The consumer’s<br />
expectations are constantly on the rise<br />
and skilled labour will be at a premium.<br />
However, it is an opportunity to not just<br />
follow the traditional routes but perhaps<br />
throw everything in the air and review<br />
all the fundamentals so that new and old<br />
solutions are found. Rather than these<br />
problems being a major negative, it could<br />
be that these problems offer the opportunity<br />
for positive change and growth. There<br />
is a view that many operations have<br />
become lazy in the basics. Or have moved<br />
so far from their starting point that they<br />
have lost sight of how best to action their<br />
core business activities, caught up in the<br />
noise and distraction that now surrounds<br />
business practice.<br />
UPSIDE DOWN,<br />
INSIDE OUT<br />
Re-engineering Hospitality<br />
Really? Lazy? Is this fair? Some thoughts<br />
to consider:<br />
n In the modern era, should five star<br />
hotels really charge for Wi-Fi access in<br />
their operations? It is now resented by<br />
consumers who understand the cost of the<br />
service and know they can likely access<br />
Wi-Fi freely outside of the building. Does<br />
this build customer faith and goodwill or<br />
destroy the potential relationships to be<br />
created? Is it a fair revenue line or is it a last<br />
possibly desperate way to increase revenue?<br />
Estonia now offers free Wi-Fi across the<br />
NDUL | 123RF.COM<br />
whole country and even many of the train<br />
lines in the UK offer free Wi-Fi and yet<br />
leading, expensive hotel operations do not?<br />
Why do they not see the benefit that small<br />
improvements in customer service and the<br />
customer journey can have on dwell time,<br />
loyalty and ultimately customer spend?<br />
n Airbnb is a business model that very few<br />
would have ever considered or invented – in<br />
fact most would have dismissed the model<br />
as being very unlikely to succeed and yet it<br />
has not only been successful, it has offered<br />
the consumer an excellent new service that<br />
really has challenged the mid hotel market.<br />
How has the hotel market responded in<br />
terms of innovation?<br />
32 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
AGENCYBY | 123RF.COM<br />
ESTONIA NOW OFFERS FREE WI-FI ACROSS<br />
THE WHOLE COUNTRY AND EVEN MANY<br />
OF THE TRAIN LINES IN THE UK OFFER FREE<br />
WI-FI AND YET LEADING, EXPENSIVE HOTEL<br />
OPERATIONS DO NOT?<br />
n There are very few hotels that still possess<br />
the old fashioned Mein Host General<br />
Manager that is clearly visible and yet the<br />
consumer/community really enjoyed seeing<br />
the GM on the floor, in control. It added<br />
a service line, a comfort and confidence,<br />
a sense of belonging. It declined as hotel<br />
mangers became business managers rather<br />
than service focused. Are we beginning to<br />
see a change back, is there a refocus on the<br />
importance of visible leadership and good<br />
old fashioned relationships?<br />
n It is interesting as one of the other<br />
debates that is linked to the above is that the<br />
skill of welcoming and hosting – the core of<br />
hospitality is either exceptional or pretty poor<br />
depending on which operation is entered.<br />
For a time, hotels were viewed almost as<br />
retail operations rather than hospitality<br />
centres and of course the result was a decline<br />
in core skills which are essential in order to<br />
build spend by the customer. The customer<br />
will always spend more in a venue that they<br />
are relaxed within. There is a new focus on<br />
training welcome skills and empathy for<br />
the customer and truly understanding the<br />
customer journey.<br />
There is a debate whether most corporates<br />
carry too many middle managers and<br />
whether corporate cultures have become too<br />
strategic and box ticking rather than focusing<br />
on the business and having strong external<br />
facing cultures. There are companies that<br />
are beginning to debate the return of dress<br />
down days in head offices and more flexible<br />
working hours. All very relaxed but how do<br />
the operators at the coal face – who have to<br />
operate seven days a week – feel about their<br />
leaders having such policies at head office?<br />
We have written previously that senior<br />
executives have to make decisions 40%<br />
faster and yet actions are taking 20%<br />
longer to action/implement. Is there a need<br />
to free up actioning? Is there a need to give<br />
leaders the freedom and support to enable<br />
them to lead? Is there a need to review<br />
existing processes and question why we do<br />
certain things, or why they are done in a<br />
specific way. What would the impact be if<br />
you just stopped?<br />
It is easy to be negative about the<br />
challenges that lie ahead but maybe the<br />
question is how does one re-engineer<br />
services and businesses?<br />
Far from being a negative challenge,<br />
this could be a great opportunity for those<br />
that are prepared to review just how they<br />
deliver hospitality.<br />
epmagazine.co.uk | 33
SPECIAL FEATURE: TIMELESS LIFESKILLS<br />
MIND THE SKILLS<br />
& INEQUALITY GAP<br />
Atul Pant, founder of London-based charitable organisation<br />
Timeless Lifeskills, explains how they provide 21st-century<br />
life skills to the underprivileged students.<br />
In one of the three tiny rooms that make up ‘Jeevanshala’ school<br />
in village Madham, 7,000 feet up in the Indian Himalayas, a small<br />
group of fifth graders is racking their brains trying to figure out<br />
how can they make the balloon-powered car they have made with<br />
used plastic water bottles go faster. Once they figure out that the<br />
trick is not filling in more air in the balloon but attaching two balloons<br />
to the bottle instead of one, they will move to the next task – replace<br />
the balloon with a DC motor fitted with a propeller. Later still they<br />
will tinker and figure out the circuit required to make a toy car go<br />
forward, reverse and turn left and right. They will then learn about<br />
sensors and convert their toy car into a robot.<br />
These tinkering workshops on 21st-century life skills are conducted<br />
by Timeless Lifeskills (TLS), a London-based charitable organisation.<br />
In earlier TLS workshops these young students have made electronic<br />
art using copper tape, coin cell, and LEDs; they have been on field trips<br />
as citizen journalists to produce a school newspaper; learnt to create<br />
stop-motion animation on various topics of study like the solar-system<br />
and the local environment; role-played standing for local village-level<br />
elections; run a mock village council meeting, and a lot more.<br />
Like Jeevanshala, TLS has been working with 14 other rural schools<br />
and schools for the underprivileged in several villages in the Indian<br />
Himalayas, in Kutch region of the Western Indian state of Gujarat,<br />
and in villages in the vicinity of New Delhi, to impart skills that have<br />
become essential for success and wellbeing in the 21st century.<br />
When advances in technology transform the economic landscape,<br />
and required skills are not imparted at the same pace, the result is<br />
inequality. The ongoing industrial revolution, which is being described<br />
as the 4th Industrial Revolution, is transforming the global landscape<br />
like never before. This poses a big risk that the already wide inequality<br />
gap will become even wider. The raison d’être of TLS is to impart<br />
life skills essential for thriving in the 21st century, to less privileged<br />
students, through a combination of hands-on workshops, online<br />
34 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
Learning different modes of thinking<br />
enables students to look at a topic<br />
through several different lenses and<br />
enriches their perspective.<br />
learning content, and the creation of learning communities using social<br />
media and messaging services like Whats App. Given the growing<br />
ubiquity of mobile phones and internet connectivity, even in rural India,<br />
the online component will help reach a large number of students.<br />
At TLS, we believe that like the primary colours, Red, Green and<br />
Blue, that can be mixed to create millions of colours, there are three<br />
fundamental life skills that are essential for flourishing in the 21st<br />
century: ‘Yearning to Learn, Learning to Learn, and Learning to Be’.<br />
Yearning to Learn means firing up the intrinsic motivation of young<br />
learners by remaining ever curious and becoming self-inspired to<br />
learn all life long. Learning to Learn means becoming self-directed<br />
learners who can take ownership of their learning, think critically,<br />
know how to make the most of the online and other learning resources<br />
available, and understand how they learn (i.e. meta-cognition, or<br />
learning about own learning). Learning to Be is having the ability to<br />
live a joyful life, of meaning and purpose.<br />
We imagine these three fundamental skills to be the bottom layer<br />
of the education cake and to this, we add another layer – the ‘Mode of<br />
Thinking’ layer. Too much emphasis on exams and on completing the<br />
syllabus has led to schools teaching only the ‘content’ of a discipline and<br />
not the mode of thinking of that discipline – how an expert in a discipline<br />
thinks. For example, a scientist will follow the scientific method of<br />
observation, hypothesis/prediction, experimentation and inference;<br />
while a historian will analyse a claim on the basis of the provenance of<br />
primary and secondary sources. Learning different modes of thinking<br />
enables students to look at a topic through several different lenses and<br />
enriches their perspective, an essential skill when so many businesses of<br />
influence – media, advertising, politics and even religion – are constantly<br />
trying to persuade youth to think in a particular way.<br />
The third layer in the education cake is ‘familiarity with the emerging<br />
technologies’ that will shape the future of today’s youth – robots, drones,<br />
sensors, internet of things, virtual reality, 3D printing and more.<br />
In the context of rural India, the dearth of employment opportunities<br />
in rural areas which is leading to emigration to over-crowded cities<br />
to get low-wage jobs, implies adding another layer to the education<br />
cake – a layer that prepares the rural youth for self-employment in<br />
emerging domains, like setting up their own micro-enterprises in<br />
graphic design, animation and other futuristic areas. The youth also<br />
needs to be empowered to make the most of the emerging ‘gig’ or<br />
freelance economy, where online marketplaces like Etsy, that aggregate<br />
the fragmented global demand for hand-made art & craft, or online<br />
platforms that aggregate demand for B&Bs and homestays offer microentrepreneurial<br />
opportunities like selling a rural home-stay experience<br />
to a global market. Tapping into this gig economy requires being IT<br />
savvy and cultivating the spirit of entrepreneurship.<br />
Instead of following a didactic pedagogy, TLS imparts these skills<br />
through tinkering and project-based learning. In addition to the<br />
workshops, TLS is setting-up Tinkering Labs, or Laboratory 2.0,<br />
where children get hands-on with emerging technologies by doing<br />
projects. While working on projects students also learn other essential<br />
21st century skills like creativity, collaboration, problem-solving and<br />
decision making. Along with the Tinkering Labs, TLS is also setting-up<br />
Library 2.0 where with the help of tablets and smartphones children<br />
can access a multitude of online learning resources. Using tablets and<br />
the Internet for project work also helps students learn information<br />
literacy skills in a fun way. These Tinkering Labs and Digital Libraries<br />
are low cost and easy to set up thus offering potential scalability.<br />
The burgeoning problem of lack of relevant skills resulting in<br />
widening of the inequality gap is not limited just to the developing<br />
world. Even in the developed countries, including the United<br />
Kingdom, this is becoming a major challenge. Thus, TLS in<br />
association with <strong>EP</strong>, is shortly going to start its ‘new skills for the new<br />
economy’ programmes for the less-privileged students in London.<br />
Watch this space!<br />
epmagazine.co.uk | 35
INTERNATIONAL: DRAKE BAY<br />
NEW TO THE GAME<br />
Moving from one sector to another is often a daunting task, but to sell all<br />
that you own and move from fast-paced, high tech jobs in the USA to build<br />
a luxury, sustainable hotel in Costa Rica is a different challenge altogether.<br />
It can often be one of hardest<br />
feelings in the industry to<br />
describe, but being welcomed<br />
by an hotelier who treats you<br />
as an old friend can make all<br />
the difference in a new location<br />
and environment. The ability to<br />
offer personal warmth that can<br />
make one feel at ease and which<br />
sets the scene for an enjoyable<br />
and relaxing stay.<br />
Yens Steller and partner Patrick Ludwig (pictured) possess this<br />
talent and provide this hospitality in five hillside cabins they have<br />
designed and built in Costa Rica. The proprietors dreamed up a vision<br />
for their property located on the Pacific coast of the Osa Peninsula<br />
when working in the technology sector in the US. Dissatisfied with the<br />
stress and increasing speed of that world, the duo decided it was time<br />
to leave the tech industry behind and embark on a new adventure in<br />
the tourism industry.<br />
They built Drake Bay Getaway Resort as a luxury sustainable<br />
jungle lodge which appeals to both those who want an eco-friendly<br />
stay but also one that matches the demands of the growing number<br />
of travellers who want a personalised experience or simply need to<br />
switch off and relax.<br />
Yens, who is originally from Costa Rica, explains what made them<br />
turn their dream into a reality, “In our old jobs the money was good<br />
but we hardly found any time for life. We would travel to Costa Rica<br />
for holidays and finally decided to sell up and build our hotel on<br />
the Southern coast, where I grew up. We had some land which we<br />
purchased from my family a few years earlier. This would be the home<br />
for our luxury sustainable hotel.”<br />
They sold their cars and house and built their dream in an area<br />
of the world famed for its incredible diversity of animal and plant<br />
life. “We wanted to do something very different than the technology<br />
industry. We love people and this is the perfect environment for that<br />
passion. In the tech world, our mind-set was always to look towards<br />
the future, to innovate and think about how something would look and<br />
work in 3 or 5 years’ time. We simply apply this same thinking to our<br />
resort. One of the main differences we have encountered is that in the<br />
technology sector you can sometimes drop the ball and think ‘it’s ok;<br />
we can fix that in the next update’. In hospitality, there is no chance for<br />
this, we are in the business of happiness and have to ensure everything<br />
is perfect for our guests. We cannot forget to pick someone up from<br />
the local airport or leave them behind in one of our adventure tours.”<br />
“Opening the resort was a shock at the beginning but we learnt<br />
so much in such a short space of time. We saved money during the<br />
construction process by buying the materials directly from the suppliers.<br />
If we hadn’t sourced in this way, we would have paid at least double<br />
the amount. We had $10,000 left to our names when we first opened<br />
the hotel doors. We felt sick knowing that’s all we had left in our bank<br />
account. This feeling soon disappeared once the guests started staying.”<br />
Making such a career change takes a lot of courage and<br />
determination. Yens and Patrick would have had to have the belief<br />
“BUILDING A SUSTAINABLE JUNGLE<br />
LODGE WAS ALWAYS PART OF OUR<br />
VISION AND WE HAVE ACHIEVED THIS<br />
IN MANY DIFFERENT WAYS.<br />
36 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
they were doing the right thing. “We felt in the states we had fallen into<br />
a routine and really needed to experience something else – a trend<br />
we are actually seeing with our guests now. They need to feel alive<br />
and don’t want to get stuck in the system, which is what happened to<br />
us. I believe you have to be genuine in this sector and not in it for just<br />
making money. If it was just about that we would have stayed in our<br />
technology jobs in the US! We are fortunate that some of our guests<br />
have invited us to their homes and we believe this shows the deep and<br />
emotional connection we make with those who stay here.”<br />
Drake Bay Getaway Resort is popular with honeymoon couples but<br />
50% are actually made up of families and solo travellers, especially<br />
those looking for adventure. “It’s difficult to explain, but guests do<br />
really want an experience which they remember and has a deep<br />
meaning in their life.”<br />
“Building a sustainable jungle lodge was always part of our vision<br />
and we have achieved this in many different ways. Not only during<br />
the creation of the property but in how is it operated as a business.<br />
We have no air-conditioning which is better for the environment and<br />
does keep the bills down too. Instead, we have used ‘Passive Cooling’<br />
design principles in all our buildings to keep them cool naturally. We<br />
catch rainfall for our gardens and laundry with all clothes sun-dried in<br />
a special transparent room we built. Water is solar-heated and cabins<br />
are built from 90% recyclable materials.” These initiatives would<br />
lead to Drake Bay Getaway Resort being awarded the Platinum level<br />
GreenLeader by TripAdvisor, their highest environmental standards<br />
for commitment to environmental sustainability.<br />
Yens and Patrick may be new to the sector but 95% of their hotel<br />
bookings come direct with only 5% from travel agents, a figure some<br />
UK hoteliers can only dream of. “We go against the local curve. Most<br />
of the hotels that we know receive 60% of their bookings from travel<br />
agencies, which require at<br />
least 15% commission.”<br />
Yens argues that they<br />
spend little to no money<br />
on marketing and instead<br />
use their search engine<br />
optimisation knowledge to<br />
ensure their website is an<br />
influential tool.<br />
Business has exceeded<br />
their expectations as<br />
the hoteliers have had to<br />
tackle the challenges of being a remote property. The logistics of food<br />
means that it all arrives by boat which relies on weather conditions.<br />
However, so far the boat has never failed, which is just as well as Drake<br />
Bay’s only other option to get food is by dirt track roads and they<br />
are around three hours’ drive from the nearest town. “We ask all our<br />
guests their food preferences and tolerances in advance of their stay.<br />
This tackles any issue which may have otherwise come up during a<br />
stay. We never give anyone a food menu. Instead, we provide unique<br />
dishes every day of a stay based on the guest’s diet. It can be stressful<br />
when choosing a meal, so we have removed this option and surprise<br />
our guests with each meal. We also have unlimited speciality coffee<br />
and tropical fruit drinks which is a real hit.” It will be interesting to see<br />
if this trend is carried out by other hotels and restaurants to improve<br />
the experience for those with more sensitive diets.<br />
It is clear to see why guests want to stay at Drake Bay Getaway<br />
Resort. Costa Rica is a wildlife paradise and each cabin overlooks the<br />
sapphire bay, beautiful beach and tree-topped jungle. Yens and Patrick<br />
have taken an ethical approach and are passionate for conserving,<br />
protecting and enjoying the surrounding environment. Matched with<br />
their personal hospitality and combining luxury with an eco-stay, they<br />
may be new to the game but these hoteliers are making real headway.<br />
epmagazine.co.uk | 37
COMMENT: BUSINESS MODEL<br />
THE PROBLEM IS:<br />
YOU DON’T KNOW WHAT<br />
THE PROBLEM IS<br />
Ambiguity is everywhere; it is the one constant. How do<br />
you successfully create a new business model in a sea of<br />
disruption? Build your foundations through emotional<br />
engagement and values based change says Heather<br />
Gibson, Managing Director at Pendulum Partnership.<br />
Imagine mining for resources but not<br />
being sure whether to upscale the final<br />
product to sell to luxury markets in Asia or<br />
expand your tried and tested product into<br />
new markets across the globe. Imagine<br />
too that the complexity of the challenge is<br />
amplified by speed of change in the external<br />
environment and the need for new capability<br />
to deliver a new business model, or even<br />
conceive of one. Further factors could be<br />
added such as political or regulatory change,<br />
demographic and human shifts, but suffice to<br />
say that this mining scenario is not pretend<br />
or isolated. This fundamental question<br />
– how do we build a model to sustain our<br />
organisation into the future – is being played<br />
out across all corners of the world at this very<br />
moment in time in boardroom conversations.<br />
The problem is, you don’t know what the<br />
problem is and, if there is one thing to glean<br />
from reading this article, it is that this is okay.<br />
Accepting this constant ambiguity is the first<br />
step towards building strong leadership and<br />
cultivating new thinking to be successful<br />
in change.<br />
Leading change involves incredible<br />
resilience and agility. Acceptance of<br />
ambiguity as the norm provides a leader with<br />
the mental freedom to ask the questions<br />
that need to be asked and explore scenarios<br />
without limitation. With so many variables,<br />
particularly the intensity of information flow<br />
and the pace of change driven by digitisation,<br />
leaders must adopt an open mind and<br />
incessantly question the potential for new<br />
impacts on their strategy. To effectively<br />
conceptualise the scope of the challenge<br />
and then respond appropriately, desired<br />
outcomes need to be driven through an<br />
approach to change that is fluid and agile.<br />
Values based change is fundamentally about<br />
establishing a set of specific values that<br />
recognise the need for change leadership<br />
THE TRUTH IS THAT<br />
CHANGE FAILS BECAUSE<br />
IT IS FRONT-LOADED TO<br />
FOCUS ON A ‘BIG BANG’<br />
APPROACH AND A<br />
SHORT-TERM OUTCOME.<br />
across an organisation as part of the culture;<br />
prizing authentic, real discussions; growing<br />
creativity and curiosity; and allowing passion<br />
to thrive. It’s also about coaching leaders<br />
to align themselves with these values and<br />
giving them freedom to communicate and<br />
engage in a way that continues to tell a story<br />
of change, which will inspire discussion and<br />
build trust. Focusing on these values creates<br />
a base for emotional connection with your<br />
key audience – your employees – to build<br />
a state of change readiness and sense of<br />
urgency around the agenda, in addition to<br />
breaking down historical mental barriers.<br />
Most individuals resist change through the<br />
lens of what has happened before, and it’s<br />
vital that these are unblocked in order to be<br />
able to deliver outcomes.<br />
Many of us look at change within the<br />
context of what has failed and why. It’s true<br />
that change does fail but the mistake is often<br />
to focus on the symbol of that failure – the<br />
ousted CEO, the bust company, a restructure<br />
destroyed by resistance – without focusing on<br />
the real issue. The truth is that change fails<br />
because it is front-loaded to focus on a ‘big<br />
bang’ approach and a short-term outcome,<br />
without enough investment in the back-end to<br />
see change embedded and get to the desired<br />
future state. The issue here is a failure to invest<br />
in sustaining engagement with employees who<br />
will make the change happen. Resistance to<br />
change is complex and hard worn employees<br />
who have ‘seen it all before’ have often just<br />
learnt to ride things out until the current<br />
wave disappears, as it so very often does.<br />
This is a bad outcome for both parties, and<br />
no longer good enough. The financial cost of<br />
failed change is significant and it is troubling<br />
to see organisations waste money in wave<br />
after wave without adopting a more holistic,<br />
values centric approach that embeds change<br />
into the culture of an organisation. This is<br />
why investment in emotional engagement is<br />
CONVISUM | 123RF.COM<br />
38 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
CONVISUM | 123RF.COM<br />
crucial to meeting the challenge of disruption<br />
head on. It’s vital to understand the story<br />
behind your team’s individual perceptions<br />
of change and to acknowledge what has<br />
happened before in a meaningful way. This is<br />
simple step, but so often not done well, or even<br />
at all. Transparency of dialogue is needed and<br />
is often a huge barrier to overcome, largely<br />
because leaders’ shy away from these more<br />
conflicted discussions. However, without<br />
them, change will fail.<br />
Communication and language is central<br />
to leading values based change. In part this<br />
is because the language we use to facilitate<br />
change is also evolving. In short, the<br />
discussion needs to be authentic, challenging<br />
and honest in order to recognise the volatile,<br />
uncertain, complex and ambiguous (VUCA)<br />
operating environment we all live within.<br />
It is shifting towards growing creativity and<br />
fostering collaboration at all levels. Everyone<br />
is creative in their own individual way, and<br />
this can be applied in a business context;<br />
unfortunately most of us are blocked from<br />
seeing our own skillset in this light – but this<br />
needs to change. By fostering transparency<br />
of communication and driving face-to-face<br />
dialogue, leaders build a platform of trust and<br />
create emotional connection to understand<br />
past legacies, move on and absorb new<br />
messages aimed towards the future. Although<br />
communication needs to have a purpose and<br />
clarity of messaging, the real need is just to<br />
communicate, communicate, communicate.<br />
It cannot be overstated, yet it so often is<br />
overlooked or too tightly controlled. Change<br />
requires investment in communication – it is<br />
make or break – and without it the platform<br />
of trust becomes eroded. The problem is,<br />
you don’t know what the problem is, and you<br />
also don’t have all the answers. This too is<br />
okay. Let people know this and see barriers<br />
break down.<br />
Ambiguity is everywhere; this fact will not<br />
change. In an era of digital disruption change<br />
is not an easy journey, but it is the right one.<br />
The problem is, you don’t know what the<br />
problem is and you need to begin asking the<br />
questions, incessantly, that need to be asked<br />
right now. This is a conceptual, strategic<br />
and challenging conversation within your<br />
leadership team as we face the rapid dawning<br />
of a new era of work. Take heart though. I will<br />
leave it to one of the great leaders of our time<br />
– John F. Kennedy – who in 1963 gave us one<br />
of the most inspirational quotes a leader in<br />
<strong>2017</strong> can live by: “Change is the law of life.<br />
And those who look only to the past or the<br />
present are certain to miss the future.” Some<br />
things have not changed.<br />
epmagazine.co.uk | 39
INNOVATION: WINNOW<br />
CONNECTING<br />
THE KITCHEN<br />
How The Pullman Dubai Creek City Centre<br />
& Residences is getting smarter on food waste.<br />
Energy and water are the main issues hotel groups take into<br />
consideration when adopting sustainable practices. However,<br />
one of the biggest opportunities is often neglected with huge<br />
environmental and financial impact: food waste. This month we<br />
travelled to the UAE to meet with Dwayne Thomas Krisko, Executive<br />
Chef at the Pullman Dubai Creek City Centre & Residences who has<br />
used Winnow to cut waste and costs.<br />
While food waste has been generating attention internationally,<br />
it presents a huge challenge especially to countries that have seen a<br />
sudden growth in the hotel and catering sector. A good example of this<br />
is the booming hospitality market in the UAE and Dubai in particular.<br />
Tourism has helped Dubai become the fifth-highest performing<br />
metropolitan economy in the world. The city offers exciting shopping<br />
and entertainment opportunities as well as great venues for meetings<br />
or conventions. Yet over a year, 365,000 tonnes of food is discarded in<br />
Dubai and there is an enormous savings potential for the hospitality<br />
sector in addressing the issue.<br />
The team at Winnow are on a mission to help the hospitality<br />
industry cut down on food waste by ‘connecting the kitchen’. “Our<br />
technology consistently cuts food waste in half by automatically<br />
measuring what gets thrown away and providing data to help chefs<br />
reduce overproduction,” says Marc Zornes, Winnow Co-Founder.<br />
One of the first hotels to adopt Winnow’s technology in the<br />
region is the Pullman Dubai Creek City Centre & Residences. The<br />
contemporary 5-star hotel, located in Deira, Dubai’s heritage hub,<br />
is a beautiful hotel with over 300 elegant rooms and an event space.<br />
Its restaurants and bars serve world class food tailored to foreign<br />
travellers and local customers alike.<br />
The hotel places environmental and social responsibility at the top<br />
of their list of priorities and by implementing food waste prevention<br />
strategies they work towards AccorHotels’ Planet 21 initiative. As part<br />
of the initiative the hotel chain is aiming to reduce food waste by 30%<br />
before the year 2020 across their entire portfolio of hotel brands.<br />
Using Winnow’s reporting, the hotel has been able to dramatically<br />
reduce waste (over 5 tonnes annually) which has led to a 4% reduction<br />
in food purchasing costs. We asked the hotel’s Executive Chef,<br />
Dwayne Thomas Krisko to share some insight into his culinary origins<br />
and how Winnow’s technology helped him work towards less food<br />
waste in his kitchen.<br />
What inspired you to become a Chef?<br />
Cooking has always been my passion and it was something I<br />
enjoyed doing at home with my family. So when the opportunity<br />
raised I accepted it with a great enthusiasm and made it my career.<br />
Where and how were you trained?<br />
I studied at the Culinary School in Pittsburgh Pennsylvania in the<br />
USA. After graduating, I travelled around the US and Europe where<br />
I worked with some of the top chefs of the time.<br />
What challenges did you face when you decided you wanted to<br />
cut waste from your kitchen?<br />
One of the main challenges was to pass the trend of the new mentality<br />
around food waste on my staff. We had to shift the team’s thinking<br />
on the consequences of their actions and to make the right decisions<br />
on the produce process. It has resulted in optimised workflow and of<br />
course, less food waste.<br />
How does Winnow help you in your daily operation?<br />
First of all, food is too valuable to be wasted. Winnow is a great tool<br />
which Pullman Dubai Creek City Centre uses to monitor our daily<br />
making and waste. Also, having the system in my kitchen helps me plan<br />
a better control production, which automatically means significant<br />
cost reductions as we are saving US$400 weekly on food cost.<br />
40 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
IT’S EASY TO PLAN AND IT IS A<br />
BET FOR US TO HOW LOW CAN WE<br />
GET THE WASTE. IT IS ALSO A GREAT<br />
OPPORTUNITY AS WELL SINCE WE<br />
CAN USE THOSE SAVINGS TO<br />
PURCHASE BETTER PRODUCTS.<br />
What initiatives have you implemented based on the data from<br />
Winnow’s reporting?<br />
Reports provide us a very clear picture that highlight where changes<br />
could be made. It’s easy to plan and it is a bet for us to how low can we<br />
get the waste. It is also a great opportunity as well since we can use<br />
those savings to purchase better products.<br />
How do you think technology will have an impact upon how<br />
customers engage with the stories of the food, the chef, and<br />
the restaurant?<br />
It is a subject that affects everyone as we all feel guilty about the<br />
mounds of food likely to go waste. With Winnow’s technology we<br />
have the opportunity to engage our customers to the whole story<br />
and become involved with the operation. We are exposing this effort<br />
through our Pullman social media platforms and website – giving as<br />
much information as possible for the people who is interested in to<br />
found out exactly what is that we are doing and what is the goal.<br />
How do you see your kitchen develop towards a more sustainable<br />
operation in the future?<br />
With the advancement of technological tools and social recognition<br />
of waste, our goal at Pullman Dubai Creek City Centre is to optimise<br />
usage and achieve zero waste. We will all need to make smaller<br />
portions, use sustainable products and minimise when possible; that<br />
will achieve major cost control and essential loss of food.<br />
If you could give just one piece of advice to chefs on how to tackle<br />
food waste, what would it be?<br />
I would advise every young chef to be transparent and make wastage<br />
a positive issue and give constructive re-enforcement to the staff<br />
so people will respect the issue and pay more attention to how to<br />
waste less.<br />
Winnow is on a mission to solve the problem for restaurants on a<br />
global scale. They are already live in 18 countries and are saving to<br />
their clients millions. They encourage operators to come on board and<br />
look strategically at food waste reduction for clear economic as well as<br />
environmental reasons. With the right tools, you can dramatically cut<br />
waste, saving costs and improving your offer at the same time.<br />
epmagazine.co.uk | 41
SPECIAL FEATURE: NED<br />
INTRODUCING<br />
THE NED PANEL<br />
A marriage of skills between the baby boomers and emerging businesses.<br />
There has been so much written about the pace of change and<br />
it is remarkable but the one truth is that everyone – however old<br />
or young – needs to be open to learning new ideas and skills.<br />
This is arguably the first time in history whereby the older generation<br />
is learning new skills from the younger generation but it is also true<br />
that the latter do need the skills of the former just as much.<br />
The Baby Boomers led lives based on actions. Their generation<br />
grew up in a different era but one that developed some very special<br />
character traits. They were invariably independent and worldly at a<br />
younger age. They networked and socialised in a different way and<br />
they understood most of all the importance of relationships and trust.<br />
Generation Y is more strategic and global.<br />
The world is changing at such pace, it is easy to miss key pieces of<br />
information and all need to be open to learning and listening to new<br />
ideas and concepts.<br />
PWC have published a fascinating report about the workforce<br />
in 2022. The report goes onto to visualise the world’s first fully<br />
automated and robot-served hotel opens in 2022. In 2021, licences<br />
will be granted for driverless car. How the world has changed.<br />
In a recent discussion with a group of students, they talked proudly<br />
of the way that social media has made the world open and transparent<br />
and there is free information at everyone’s fingertips. It is true. It has<br />
encouraged an era of learning and information flow that is arguably<br />
never been seen before. However, how does one explain the joy of<br />
letters and post; the excitement of escaping to phone partners and best<br />
friends on pay phones as invariably the money would run out? It seems<br />
like a different age but was in truth it was less than thirty years ago.<br />
The modern flow of information has arguably led to increased<br />
process, analysis and transparency. Arguably what is missing is the<br />
action-led nature of the Baby Boomers to whom strategy was often<br />
what was discussed on the M1 motorway. The focus was on getting<br />
things done; and less talk and analysis.<br />
Strangely too in a world that is so easy to communicate in, the<br />
Baby Boomers possessed great skills in networking and in the art of<br />
conversation. They also have lived through a series of crisis from the<br />
3 day week in the 1970s, the oil crisis, 4 recessions, Black Wednesday,<br />
the first Iraq war, the financial crash of 2008 and many more dramas.<br />
There is a whole bank of knowledge and experience that can be<br />
called upon.<br />
Most business books are based off the philosophies and experiences<br />
of proven business leaders and expert observers. However often<br />
business leaders are being led by the younger generation too. There<br />
have been very few business books written by an audience of emerging<br />
leaders but maybe that would have real value.<br />
Beyond this the baby boomers have worked through periods of<br />
turbulence. Their perspective and knowledge can only be of value,<br />
which younger businesses can use for their learning.<br />
We are therefore delighted to launch the NED panel which is<br />
a group of some of Industry’s greatest leaders from over the past<br />
thirty years and who can add real value to emerging businesses that<br />
would like a proven industry player that they can call upon and work<br />
with their boards. Nothing is more important in making decisions<br />
than experience and understanding of market dynamics beyond the<br />
workings of the business. This is one of the values a good NED brings<br />
to the table – a broader, more objective perspective. A good NED<br />
brings real hidden value that enables business to make good decisions<br />
The Hospitality Industry possesses a deep bank of knowledge<br />
and experience that every business can call upon. Hence the value<br />
of the NED panel. It is a turbulent period and the NED panel allows<br />
businesses of all sizes – whether £100k or £100m – to call upon<br />
proven experience to help guide and support board decisions in this<br />
period of change.<br />
Change has become a constant and experience/knowledge is an<br />
invaluable commodity to possess for every company.<br />
42 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
EDUCATION: SOCIAL BUSINESS<br />
The entrepreneur<br />
has changed<br />
The Education System is changing Business – but maybe not for the right reasons.<br />
However it could mean that students are the future agents of change.<br />
There are many theories about why there<br />
has been a lack of leaders’ breakthrough in<br />
the last ten years. One of the reasons that<br />
has been researched is that the education<br />
system is more interested in exam results<br />
than teaching life skills to the young. In olden<br />
times, the school system was supposed to<br />
develop balanced, rounded young adults<br />
ready for life beyond education. In fact,<br />
this was the reasoning for the development<br />
of sport in Victorian times. The Victorian<br />
Public Schools embraced sports as a method<br />
for teaching good character and discipline.<br />
However the balance has shifted as league<br />
tables were introduced and there is a direct<br />
correlation between the advent of league<br />
tables and the supposed fall in emerging<br />
leaders breaking through. The view is that<br />
life skills, and understanding of human<br />
nature, of teams and communities are crucial<br />
to leadership. The generation at University<br />
today is sometimes even referred to as “the<br />
Snowflake” generation as they are, in theory,<br />
more sensitive and less hardened in life skills.<br />
A touch harsh towards the young as there is<br />
some exceptional young talent and they view<br />
the world through different eyes to previous<br />
generations. But there is undoubtedly a<br />
change in focus.<br />
The system may not be generating natural<br />
leaders but they have arguably created a<br />
new raft of social entrepreneurs that want<br />
to create change. They are arguably turning<br />
to entrepreneurship earlier as they carry<br />
higher level of debt that they want to lose<br />
and also as they want to play active roles in<br />
changing society.<br />
Higher education institutions across the<br />
country are seeing more students – young<br />
disruptors, innovators and entrepreneurs –<br />
impatient to changing the world. Many of them<br />
are already armed with the ideas, curiosity, and<br />
creativity to solve big problems by the time<br />
they graduate. Over the past several years,<br />
programs geared specifically toward social<br />
innovation and entrepreneurship have grown,<br />
mostly driven by student demand and in some<br />
cases even developed by students themselves.<br />
In the days of Thatcherism, the idea was<br />
that entrepreneurs created wealth and<br />
employment. It was a relatively self-focused<br />
discipline. Today it is different.<br />
So what exactly is a social entrepreneur?<br />
While definitions vary, most social<br />
entrepreneurs are simply individuals with<br />
innovative solutions to society’s most<br />
pressing social problems. They are ambitious<br />
and persistent, tackling major social issues<br />
and offering new ideas for wide-scale change.<br />
The movement is growing all across<br />
the globe. More people want more from<br />
their job than just a salary, and social<br />
entrepreneurship is one way to get there.<br />
There have been a number of studies – both<br />
with company employees under 35 and with<br />
graduates – and often the results state that<br />
one of the prime motivators is to create eco<br />
and social change.<br />
On this basis, it is fair to argue that:<br />
n Entrepreneurs will be the lead change<br />
agents in society<br />
n Corporates will need to change the<br />
way they nurture talent and leadership.<br />
Far more work needs to put into place<br />
in relation to leadership development<br />
n Corporates will need to match<br />
entrepreneurs in their care for a<br />
world beyond their own organisations.<br />
Quality of life and care for the<br />
community will be important to attract<br />
the best talent<br />
RAWPIXEL | WWW.123RF.COM<br />
epmagazine.co.uk | 43
FOOD & DRINK: SHANGRI-LA<br />
The Missing Mindset<br />
Ask hotel executives their thoughts on the biggest issues facing the sector and<br />
many will cite the ‘chef shortage’ in the top three. However, is there a lack of people<br />
or is the underlying problem that the chefs lack the experience, skills and most<br />
importantly the mindset for the job. <strong>EP</strong> met with Heather Kaniuk, the recently<br />
appointed Executive Pastry Chef at Shangri-La Hotel to look into this issue.<br />
Heather Kaniuk is a confident, outgoing chef who<br />
is in charge of running a brigade of 17 chefs in the<br />
pastry section at the highest hotel in the capital<br />
at the Shangri-La Hotel, At The Shard, London.<br />
Originally from New Zealand, Heather came to<br />
London on a scholarship programme and stayed<br />
for longer then she expected. The passionate rising<br />
star has worked across some of the most revered<br />
pastry kitchens in the capital and has observed some<br />
growing trends which may impact the sector more so<br />
then ever before.<br />
“I’ve been with Shangri-La a short time, and like<br />
every kitchen in London we are missing a few chefs.<br />
We’ve been searching<br />
Today’s young chefs don’t want to spend ten<br />
hard years getting to this level. We are lucky to<br />
keep staff for more than one to two years.”<br />
for people with the<br />
correct drive and<br />
attitude needed but we<br />
are struggling to find<br />
those with a passion and<br />
desire to learn. Many<br />
young chefs seem to be misled by fame, the promise of fortune and the<br />
celebrity chef lifestyle – what should drive them is the search for new<br />
skills, and a sense of teamwork which is driven by the right work ethos.<br />
There are young chefs out there, but not enough of them.”<br />
Whilst working hours in kitchens have reduced for many from the<br />
eighty hours plus weeks that were once the norm. Heather, amongst<br />
others, is struggling to find candidates willing to go the extra mile, or<br />
work in excess of their contracted forty hours. During her formative<br />
years, Heather was driven in her learning and gained experience<br />
from working around the globe, spending time working on-board<br />
luxury superyachts that toured the world. She also spent time in San<br />
Francisco and Canada, working for Michel Suas, a renowned leader<br />
in French artisan baking. She believes that young chefs need to be<br />
pushed, taught and trained to become the best they can be, and whilst<br />
many have the ambition, some lack the drive needed to reach the top.<br />
“There are colleges out there who are great at teaching the technical<br />
knowledge but not the practicalities of a working kitchen. The long<br />
hours, speed of production and service and the ability to<br />
think on your feet in a stressful environment all comes<br />
as a shock. We are finding people joining often come<br />
from a wide variety of backgrounds and ethnicities, and<br />
for many it’s their first job in the UK. We have to teach<br />
them about the kitchen but also life skills. I have found<br />
that my leadership style has had to change to adapt to<br />
this situation. You need to be able to wear many ‘hats’–<br />
that of the parent, the friend and the counsellor.”<br />
“I am where I am by putting my head down and<br />
working hard pushing the boundaries of what I<br />
thought I could achieve. Today’s young chefs don’t<br />
want to spend ten hard years getting to this level.<br />
We are lucky to keep<br />
staff for more than one<br />
to two years.”<br />
The concern facing<br />
the sector is that a<br />
chef may work only six<br />
months and then move<br />
on. This impacts those who are investing valuable time in teaching<br />
them. Although it can seem beneficial to the young chef eager to<br />
learn many new skills in a short term, it may also cause strain on an<br />
industry already struggling to recruit. The question to ask is why is<br />
this happening now?<br />
“Social Media does play a role. People look on their platforms or<br />
watch The Great British Bake Off, recreate the dishes at home and<br />
think they’re a chef. Whilst they may be able to do one dish well, they<br />
lack any other techniques or knowledge.”<br />
“When I was travelling I worked in various kitchens with different<br />
set-ups and attitudes. In Europe we are very traditional, maintaining<br />
the classical hierarchy. Working in the States, I found it much more<br />
relaxed and laid back. There is an emerging culture of strong female<br />
chefs, with the likes of Dominique Crenn, Belinda Leong and Nicole<br />
Krasinski, who are changing the face of kitchens. I do find that many<br />
female chefs are precise, dedicated and have great attention to<br />
detail. We must look at ways to keep females in the kitchen longer –<br />
44 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
I’ve seen too many burn out or change<br />
careers to be able to juggle their family life<br />
with their career.”<br />
Whilst the potential ideal of a relaxed<br />
kitchen may be in the distance for many<br />
hotel restaurants, Heather does believe<br />
that the chef culture is starting to shake<br />
off its reputation as a male dominated,<br />
aggressive environment. “There is less<br />
yelling and screaming.” Heather says<br />
with relief. “Whilst I was working my way<br />
up this was often normal. However this<br />
method, whether rightly or wrongly, did<br />
bring with it respect and an understanding<br />
of hierarchy.”<br />
“I’ve also found that many people are<br />
trying to enter the industry at a later age.<br />
However it’s a demanding space to work in<br />
– both physically and mentally. People may<br />
see it as a fun and creative job, but can they<br />
handle standing up all day, long hours versus<br />
the low salary, adapting to the fast-paced<br />
environment? Unless you’ve grown up with<br />
it, it’s very hard to adapt to it.”<br />
“Like many other industries, if the person<br />
wants to learn, they can go far. Within<br />
Shangri-La we offer the opportunity to<br />
learn all aspects of pastry across our outlets –<br />
plated desserts, afternoon tea, event catering<br />
and private dining, amenities and also<br />
our retail offering – LÁNG, an artisan deli.<br />
This gives young chefs a much broader<br />
skillset than what you typically learn in<br />
a restaurant.<br />
When Heather does bring on new team<br />
members, she needs to bring them up to<br />
speed quickly. “They need to understand<br />
allergens, dietary requirements and<br />
ingredients. This can be as simple as<br />
‘where does honey come from, or what<br />
is an egg made up of ? The lack of basic<br />
knowledge is scary, but this is a reality<br />
for some.”<br />
Heather proposes that we may need<br />
to reinvent what it is to be a chef and do<br />
more to encourage others to enter the<br />
industry with the right attitude. By focusing<br />
on hands-on training, motivating staff,<br />
working more efficiently, people should join<br />
who want to go far in a place of learning,<br />
not just working.<br />
epmagazine.co.uk | 45
INTERNATIONAL: VIVAANA CULTURE HOTEL<br />
PRESERVING THE PAST<br />
<strong>EP</strong> speaks to Shiven Khanna on how he and his family<br />
meticulously restored a 19th century Haveli in India and<br />
turned it into the Vivaana Culture Hotel.<br />
Restoring antiques, artwork and buildings runs in the Khanna<br />
blood. Shiven and his farther opened the Vivaana Culture Hotel four<br />
years ago following a long restoration process. Their story is one of<br />
passion, reward, hope and preserving beauty forever.<br />
“My mother and father, Atul and Devna, are an entrepreneurial<br />
couple and together we found a haveli in Mandawa, Rajasthan. A<br />
haveli is a mansion in India. My father said on his 50th birthday he<br />
wanted to do something different and due to his love of restoration, so<br />
we decided to transform the beautiful property into a hotel.”<br />
“When we purchased the haveli we also wanted the one next door to<br />
ensure the hotel had enough rooms and space. However the owner of<br />
this second haveli said we could not see inside until we have purchased<br />
the property. We were under the assumption the inside would need<br />
much restoration and would be in a poor condition. However, to<br />
our surprise and delight once we had purchased the property we<br />
discovered it actually contained the best painted frescos and some<br />
were so beautiful we decided to use the spaces as public areas and not<br />
turn them into bedrooms.”<br />
Shiven recalls how they had to install water and electricity with the<br />
whole restoration taking quite a long time. The experience was all<br />
very new to the family because none of them had a hotel background.<br />
However, they tackled it head on and the Vivaana Culture Hotel has now<br />
been open for four years and is doing well. The Khanna’s have gone on<br />
to purchase other properties in Delhi and are in the process of restoring<br />
a smaller 1850s mansion with the aim of providing a glimpse of how life<br />
was back then. As with Vivaana they are restoring and maintaining the<br />
character of the buildings but with the modern necessities the modern<br />
traveller craves. This has become their family’s passion and why they<br />
undertook and continue to restore these grand charming properties.<br />
“We want guest to see the unique Mandawa district and use us as a<br />
window into the culture and heritage of the surroundings. At Vivaana<br />
we focus on many public areas for our guests and include a gallery<br />
walk through within the haveli.”<br />
“We have embraced the community around us and now the person<br />
who looked after the property during the restoration shows our guests<br />
his home and sells drinks when they visit. We feel this experience<br />
of viewing local homes and culture is very important. We also work<br />
closely with a local farm who provide camel tours, guests can see<br />
what’s around the area this way and our community feel we are<br />
supporting them by bringing them business.”<br />
Within the haveli are painted frescos which are over a hundred years<br />
old. They show Hindu Gods and Goddesses as well as everyday life.<br />
46 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
They were painted by artists from all over India, the shekhawati<br />
region is known as the ‘open art gallery’. Within the hotel guests<br />
can view the paintings depicting the British influence in india which<br />
existed in the 19th century and even some exotic images which were<br />
discovered during the restoration process. “We soon discovered why<br />
this had been covered up.” Shiven explains. “The central façade really<br />
has some very interesting paintings of everyday life which have survived<br />
the tests of time.”<br />
Vivaana is not only a symbol of craftsman excellence and hidden<br />
grandeur, Shiven explains how their hotel packages also entice the<br />
guest to the small unexplored village where the haveli sits. “We have<br />
packages which contain massages, designed diets, village walks,<br />
mediation and yoga and herbal tonics. It’s all designed to calm, renew<br />
and invigorate the guest and provide a rejuvenating experience.”<br />
The Elephant House Spa is named after its original use as the stables<br />
which were included in the richer traveli’s to house their family’s<br />
elephant. As well as the packages the hotel includes O – The Organic<br />
Kitchen, which serves world cuisine and local delicacies.<br />
“The region is made up of around 50 small villages and each has<br />
haveli’s with paintings in them. Our area has a huge concentration<br />
of them and they were particularly favoured by merchants who lived<br />
in the area due to the silk route. They built these to showcase their<br />
wealth but would often have tiny doors to enter into their haveli’s.<br />
This was so when the King or hierarchy arrived they would have<br />
to bow when entering to avoid hitting their head, thus allowing the<br />
merchant to feel they had gained some respect.”<br />
The mascot for the hotel is a donkey and a life sized statue is on<br />
show at the hotel. “We wanted to have the hardest working animal<br />
of the region as our mascot. We plan in the future to open a donkey<br />
sanctuary because these animals are sometimes mistreated and have<br />
to lift heavy items.”<br />
Shiven, a lawyer by trade has relished the experience of working<br />
on a hotel and notices the huge differences between the two worlds.<br />
“I go to the hotel and see people having a great time and then I go to<br />
the courts and see some sort of fight and high levels of stress. I think<br />
you know which I prefer!”<br />
With its typical Rajasthani architecture and beautiful fresco<br />
paintings, Vivaana is an art lovers delight. Stories unravel from each<br />
wall and the Khanna’s family passion for restoring the traditional look<br />
is clear to see. Shiven and his family has produced an authentic and<br />
historic hotel and preserved beautiful frescos of an old world for many<br />
in the future to savour.<br />
epmagazine.co.uk | 47
CUSTOMER EXPERIENCE: W LONDON<br />
Anticipating<br />
the next trend<br />
<strong>EP</strong> speaks to Martijn Mulder, General Manager of<br />
W London, on defying traditional thinking and producing<br />
new experiences within a hotel’s walls.<br />
The guest is forever changing and<br />
hotels are often chasing the current<br />
trends and attempting to equal the<br />
guest desires.<br />
To truly match and surpass this<br />
expectation a hotel has to predict<br />
what the guest may want next, rethink<br />
their offering or for W London hotel,<br />
completely turn something upside down<br />
to make it truly memorable.<br />
Being able to predict the guest’s<br />
movements is a rare gift and one which<br />
brings with it a touch of risk. However, when an experience hits the<br />
mark it can create waves across the market and bring guests from<br />
around the world. W London, located on the corner of Leicester<br />
Square, has recently introduced their own trend prediction, a new inroom<br />
service, a luxury mobile cocktail bar named the Mega Bar.<br />
“We are industry disruptors in the luxury hotel market, pushing<br />
boundaries with innovative new thinking.” Explains Martijn, who<br />
has been General Manager of W London since 2016. The relaxed<br />
Dutch GM is visibly in tune with the hotel, its guests and the market.<br />
He proudly explains how W Hotels are charged with redefining the<br />
hospitality sector and how W London wants to be the best at doing<br />
this. With the group on track to reach 75 hotels by 2020, Martijn has<br />
his work cut out but is embracing the challenge.<br />
The mobile cocktail bar is linked to the hotel’s ‘W Insider’, an<br />
in-the-know tastemaker who sets the stage for amplified guest<br />
experiences, offering insider insight and tips and is part of W Hotels<br />
‘Whatever/Whenever’ service. “This is where we grant any wishes of<br />
the guest, we make special moments in all shapes and sizes and all we<br />
say is that it just has to be legal.” Martijn jokes.<br />
“When I first came to the hotel I received an email from a guest<br />
who had looked me up on LinkedIn. They explained they wanted to<br />
surprise their wife and told me what their partner likes. They said she<br />
loved dolphins and told me her favourite drink. I forwarded all of this<br />
to our Insider who explained that this was actually quite common<br />
to receive and so we set up sea life music in the room, an inflatable<br />
dolphin in the bath tub and prepared her favourite drink. They were<br />
thrilled and it is this experience we try to offer to all guests.”<br />
Martijn believes this is what makes them different to other<br />
properties within the luxury segment. “The team are challenged<br />
each time and we all love trying to surpass the requests we receive”.<br />
The guest experience is high on the list for the hotel but the team<br />
also understand that the staff, who they call ‘talents’, need to see and<br />
understand the offering. “We have an internal Facebook page where<br />
we post photos, videos and other messages. We want to look after our<br />
staff and share with them. An idea may start big but we know they<br />
eventually are the ones putting on the show and so their engagement<br />
and comments are welcomed.”<br />
The new in-room experience includes a personal mixologist, sound<br />
system, disco ball and unique choice of cocktails. These come with<br />
additional add-on’s, such as a pair of sunglasses for their ‘Here Comes<br />
The Sun’ cocktail. Inspired by a music freight case, the Bar can be<br />
wheeled into each suite.<br />
With W London’s location in the centre of the capital, it raises<br />
the question of whether the hotel is trying to keep their guests at the<br />
property to ensure they spend their whole night there. “We get lots of<br />
nightlife seekers who may book us for the location. We want to show<br />
48 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
our commitment and passion for creating new and next experiences<br />
for them. We have guests who use the Mega Bar as the start of their<br />
night, go out for dinner and come back to the hotel for drinks and<br />
dancing in our secret nightclub.” Hidden behind a door named Room<br />
913, W London has a hideout overlooking Leicester Square with bar,<br />
dancefloor, DJ’s and a huge disco ball.<br />
W Hotels are a strong brand in their market and Martijn believes<br />
this helps with the introduction of new experiences. “We often have<br />
guests visit that have stayed in a W Hotel before, they understand<br />
our ethos and know we push boundaries. Our role is to surprise them<br />
and do something completely unexpected. For example we recently<br />
created a pretend snowstorm within the hotel longue. We are close to<br />
the theatres, the restaurants and the cool vibe of Soho but if we can<br />
enhance a stay then we will.”<br />
The Mega Bar is not the first experience with a difference that the<br />
hotel has introduced. ‘Walk Out Wardrobe’ was a revolutionary in-hotel<br />
designer-wardrobe in partnership with Girl Meets Dress. “They have<br />
4,000 outfits to choose from and so our guests can select designer<br />
dresses, which they can wear on a night out. We were the first hotel to<br />
introduce this service and it has been very popular.”<br />
Being first is something Martijn and his team work hard on. With<br />
many hotels focusing this year on wellbeing and looking at how the<br />
guest no longer wants to indulge as much as they used too, Martijn is<br />
looking at how they may actually want both. “Our AWAY Spa provides<br />
treatments which make our guests red-carpet ready, they can use the<br />
spa as a sanctuary and revitalise their body. However with our inroom<br />
experiences we can then reenergise them for a night out.<br />
“Linked to this is our healthy food offering where guests can enjoy<br />
superfoods in their room. It’s perfect for recovery from the night<br />
before and allows them to go again the next night. We call this ‘Fuel’<br />
and focus on a detox, retox, repeat schedule.”<br />
Although the Mega Bar may appeal to leisure guests on the<br />
weekend, Martijn explains how during the week the hotel has a high<br />
percentage of corporate guests that also look to have fun. “They stay<br />
a few nights for business, in the day you see them in their suits, but by<br />
night they have become less formal and want to have a good time.”<br />
The hotel’s strategy is to promote their exciting offering through<br />
online channels and ensure their experiences are aligned to their<br />
philosophy of being what’s new and next. They recently teamed up<br />
with several young fashion designers during London Fashion Week,<br />
offering them a platform to present their collections and designs.<br />
“This allows them to showcase their creative work in a pop-up style<br />
within the hotel. At the last event we held a virtual reality show<br />
which included attendees being able to view a catwalk through the<br />
technology.” Martijn explains.<br />
W London is challenging the current thinking of the guest and some<br />
may argue goes against current trends but they are quite possibly<br />
predicting the next moves. The in-room experiences have hit the<br />
mark with a certain calibre of guest and their bold approach may just<br />
motivate other hotels to rethink their offering for future generations.<br />
To defy traditional thinking should be embraced and the results<br />
carefully monitored, if guests have an endless appetite for something<br />
‘new’ Martijn and his team may have chosen the best road to become<br />
an even more powerful London destination.<br />
epmagazine.co.uk | 49
INNOVATION: SOCIAL INNOVATION<br />
THE ERA FOR<br />
SOCIAL INNOVATION<br />
Who will lead the change agenda following a turbulent year?<br />
2016 has been a year that has created<br />
genuine shock waves that have been felt<br />
across the world. Brexit...The election<br />
of Donald Trump...it does seem that the<br />
traditional middle and working classes are<br />
asking to see change in the political arena but<br />
how can one expect to see change within a<br />
group that does not really possess the skills<br />
or craft to be leaders of change.<br />
It is more likely that it will be entrepreneurs<br />
and innovators that do lead the change agenda.<br />
Of course, in past times – maybe the years<br />
of Thatcherism – the argument would have<br />
been that entrepreneurs were selfish and all<br />
about wealth creation.<br />
However, this may be the most important<br />
change of all. Innovation, change for social<br />
good, and change for a better future – these<br />
are phrases we hear a lot of nowadays,<br />
and there is a desire amongst emerging<br />
entrepreneurs that they want to change<br />
the world for the better. There is a genuine<br />
optimism and belief amongst the young that<br />
is quite inspiring.<br />
Social Innovation can come in a range<br />
of forms including the traditional social<br />
enterprise where an organisation has both<br />
a social and for profit focus and the lesser<br />
known social innovation which is not about<br />
profit, but rather benefits society as a whole<br />
and not just the individual.<br />
The idea of doing things to make life better<br />
isn’t a new thing, but the focus on creating<br />
novel solutions to address social problems<br />
that are more effective, efficient, sustainable<br />
and a step up from current solutions is<br />
rapidly gaining momentum.<br />
In a recent report in Australia, it was<br />
noted that there has been a 37 percent<br />
increase on the number of social enterprise<br />
businesses operating from five years ago.<br />
THERE IS A DESIRE AMONGST EMERGING<br />
ENTR<strong>EP</strong>RENEURS THAT THEY WANT TO CHANGE<br />
THE WORLD FOR THE BETTER.<br />
The majority of these have been operating<br />
for an average of 3 years, indicating that<br />
growth has been quite rapid. Those social<br />
enterprises with a commercial aspect to their<br />
operations generate around $22 million<br />
annually, accounting for 39 percent of their<br />
income and around 2 percent of GDP.<br />
The level of investment in social<br />
innovation is a bit harder to estimate,<br />
but according to the Australian Centre<br />
for Social Innovation the amount is in<br />
the billions if you take into account the<br />
investment made by government in welfare<br />
and social inclusion programs – think<br />
about Medicare and its origins and more<br />
recently the National Disability Insurance<br />
Scheme. The government focus in on<br />
increasing productivity and participation and<br />
stimulating a vibrant, dynamic and inclusive<br />
social economy.<br />
It is setting a tone and one can see similar<br />
change taking place in the UK. Just think of<br />
the Scottish sandwich business “Social Bite”<br />
that has attracted huge profile with the visits<br />
of Leonardo DiCaprio and George Clooney<br />
in successive years.<br />
This is a new era and change is happening,<br />
the leaders of social change could well be you.<br />
© SANIPHOTO | DREAMSTIME.COM<br />
50 | <strong>Perspective</strong> | <strong>March</strong> <strong>2017</strong>
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deliver information and advice you can<br />
act on.<br />
Outsourcing the finance function was a completely new concept for the business,<br />
Ecovis bought a new dynamic to the team which strengthened internal controls.<br />
I was particularlly impressed with the effort made by the team in engaging with<br />
the business in various locations, rather than working remotely. Ecovis showed<br />
commitment at all levels and their support went beyond the accounting and finance.<br />
Head of Finance, International Hotel Group<br />
Robert McCann<br />
Hospitality Partner<br />
0207 495 2244<br />
robert.mccann@ecovis.co.uk<br />
www.ecovis.co.uk