InnFocus Summer 2021

you know what? My client still has all his staff because he saw that as
the most important aspect of his business. The lesson here is we need
people to make our business work for the long run. Let us not make the
same mistake next time. Use every means and every program and every
cent to keep our people whole and intact, even if that means dipping into
our own pocket.
Pillar 3 – The Numbers
Pillar three is the numbers, the
financials or the owner, they are
all the same. When you look
through the 3rd pillar, it’s really a
result of the first two, the guests
and the colleagues, but hold
on because we now have an
opportunity to re-create how we manage our business.
A hotel is simply the sum of its parts. In practical terms, this means it
is the equivalent of all of its departments. Each one plays a vital role in
the execution of the business strategy and each department needs a
well-oiled financial plan to function effectively. Without these plans, we
are akin to a drifting ship.
Each department needs
a well-oiled financial plan
to function effectively.
Someone once shared that he had a recent discussion with a
government official and the comment made to him was, “our industry
is not very professional.” That can mean a lot of things, but let’s not
get all emotional. What that means to me is our business needs to up
its game when it comes to how we manage the financials. That means
monthly financial statements using
the accrual accounting process, not
an annual statement based on the
cash method. That means annual
budgets and rolling 30-, 60- and
90-day forecasts that are prepared
by department managers. That
also means the same managers
have staffing guides and formulas
alongside a zero-based system for
expenses and a balanced checkbook. The numbers will never be perfect,
and they are not going away, so let’s get our act together.
We can do better, but only if we look at what we do with the correct
lens. We do have the ability to manage better going forward, but that
means we invest in our business for the long term. A quote from JFK
sums things up: “A rising tide lifts all boats.” We know the tide will return,
but the height to which we rise depends on us.
22 InnFocus