Achieving Excellence in the Hotel Industry How to

Achieving Excellence in the Hotel Industry How to Run a Great Hotel Enda Larkin

Focus of Today THEME 1 DEFINE DIRECTION What are you trying to achieve? THEME 2 THEME 4 CAPTIVATE YOUR CUSTOMERS Are you truly customer focused? Drivers of Excellen ce THEME 3 ENGAGE YOUR EMPLOYEES Are your employees fully engaged? LEAD TO SUCCEED How effective is Leadership at all levels within your hotel?

“Everything should be made as simple as possible, but not simpler. ” Albert Einstein

Principles of Excellence Review Think Do

Why Bother Striving for Excellence?

Impact of the Drive for Excellence § One definitive study – presented by the British Quality Foundation - examined performance in nearly 600 award winning companies. § Looked at a period from five years before achievement of an award to five years after the award was achieved.

British Quality Foundation - Research

THEME 1 DEFINE DIRECTION What are you trying to achieve?

Direction Always Matters

Direction Can/Must Change

Direction won’t cure all ills. . . But can make a massive difference Delphi Mountain Resort, Connemara The Shelbourne Hotel, Dublin

Basic Questions What How Who Why

Having a ‘Why’ - Foundation of Business Success Stakeholder Focused

Stakeholders Primary Stakeholders Owners/ Investors Customers Employees Hotel Community Government Suppliers Secondary Stakeholders

The Strategic Map Stakeholder Focused Where are we Now? Current Position Where do we want to be? Vision & Mission Goals How will we get there? Strategy Annual Plan How will we know we are getting there? Measure Progress Continuous Improvement

Where are we now? Stakeholder Focused Where are we Now? Current Position

Where are we now? Means truly understanding your current position by conducting research and preparing a fact-based SWOT analysis: q The current internal Strengths and Weaknesses of your hotel - which in essence helps you to answer where are we now? q The Opportunities and Threats you face in the external business environment which will later influence how you answer where do we want to be?

Where do we want to be? Stakeholder Focused Where are we Now? Current Position Where do we want to be? Vision & Mission

Vision To become the leading independent 4* hotel in London providing excellent products and services at reasonable prices to every customer, every time

Mission Our customers are our priority and we will provide them with a quality experience which is second to none. We recognise the importance of our employees in achieving this and we will create a positive working environment which encourages their loyalty, commitment and hard work. We strive to be excellent leaders and will undertake all our business activities in an honest and ethical manner to provide a fair return on our investment

The Strategic Map Stakeholder Focused Where are we Now? Current Position Where do we want to be? Vision & Mission Goals

From Mission to Goals Mission Our customers are our priority and we will provide them with a quality experience which is second to none. • To increase the number of repeat customers to 40% within three years • To increase Customer Satisfaction levels to 90% within two years • To continuously increase our scores on internal and external quality audits

From Mission to Goals Mission We recognise the importance of our employees in achieving this and we will create a positive working environment which encourages their loyalty, commitment and hard work. Goals • To reduce employee turnover to 20% within three years • To achieve an average rating of 75% from employee engagement surveys • To introduce a bonus scheme for all employees within three years

From Mission to Goals Mission We strive to be excellent leaders and will undertake all our business activities in an honest and ethical manner to provide a fair return on our investment Goals • To increase net profit to 15% of sales within two years • To increase Rev. Par by 5% annually • To increase restaurant throughput to 1500 covers per week within two years • To reduce labour costs to 40% within two years

The Strategic Map Stakeholder Focused Where are we Now? Current Position Where do we want to be? Vision & Mission Goals How will we get there? Strategy Annual Plan How will we know we are getting there? Measure Progress Continuous Improvement

Funnel Approach Vision Mission Goals Strategy Annual Plan Results Increasing the amount of detail at each level

THEME 2 LEAD TO SUCCEED How effective is Leadership at all levels within your hotel?

Leadership Concerns. . . What you want to achieve The What § Goals & Objectives § Targets § Plans § Outcomes How the work is done Who does the work § Processes § Procedures § Employees Dimensions of Work The How The Who

The Human Equation The Who Engaged Employees The How Lead to The What Productivity, efficiency and quality Outcomes Achieved & Satisfied Stakeholders Processes Results in Results Engaged employees deliver better results. Effective leadership engages employees!

The Great Debate Lead or Manage? Lead Manage

Lead and Manage Engage Achieve Engaging People to ensure their commitment, competence and motivation (The Who) Focusing on Process to ensure productivity, efficiency and quality, in order to achieve the Performance and results required (The What and How) The ‘leading’ part The ‘managing’ part

Developing a Leadership Competence Model

Clarifying what your Leaders ‘Do’

Clarifying the ‘What’ – Process Mapping Monitor & Review Food & Beverage Service Effectiveness Ensure Full Legal Compliance Support Marketing & Promotion Efforts Food & Beverage Service Prepare for Service Manage the Quality of the Customer Experience Manage HR Activities Optimise use of IT Resources Manage Facilities Complete Financial Duties

Clarifying the ‘What’ – Process Mapping Handling Reservations Gather Feedback according to agreed procedures Deal with complaints/problems (SOPs) Manage the Quality of the Customer Experience Handle Billing & Payment Greeting & Seating (SOPs) Deliver high quality service (SOPs)

Clarifying what your Leaders must ‘Achieve’

Leadership Competence Model The What Possible Targets q Meet revenue targets q Achieve cost percentages Expected q Increase customer satisfaction ratings for Results – What their area they must Achieve q Lower employee turnover in their area q Reduce number of accidents in their area q Meet the requirements for training hours provided to staff Page 57

Leadership Competence Model The How Possible Criteria q Effectively plan and organise the workload in their department Expectations in relation to how the workload is managed q Manage resources to achieve the objectives agreed for their area q Provide clear direction and guidance to their employees q Ensure that work in their area is consistently carried out to the standard required q Constantly strive to improve overall quality and promote continuous improvement in their area

Leadership Competence Model The Who Possible Criteria q Demonstrate high levels of energy, enthusiasm and professionalism Expectations q Show concern for their team members and regarding how interact with them in a positive manner they lead (Engage) q Treat all team members equally and fairly q Apply flexible leadership styles and regularly show an ability to adjust their approach to deal with different people and situations q Communicate in a structured and effective manner with their team

THEME 3 ENGAGE YOUR EMPLOYEES Are your employees fully engaged?

Some Evidence Gallup Q 12 Survey The Three Types of Employees Engaged – employees work with passion and feel a profound connection to their company Not Engaged – employees are essentially ‘Checked Out’. Sleepwalking through their working day Actively Disengaged – employees aren’t just unhappy at work, they’re busy acting out their unhappiness 29% 55% 16%

Some Evidence CIPD Employee Engagement Survey Actively Engaged 35% Moderately Engaged 57% Actively Disengaged 8%

CIPD Survey q Only 37% of employees had confidence in their senior management team q Only 34% trusted their senior managers q 42% didn’t feel they were kept well informed about what’s going on in their organization q 30% indicate that their manager rarely or never gives feedback on their performance q 25% felt completely undervalued q Only 50% of employees feel that their senior managers have a clear vision of where the organisation is going

Benefits of Employee Engagement - Towers Martin Research

Research q Organisations with highly engaged employees achieve twice the annual net income of organisations whose employees lag on engagement. (Kenexa Research Institute - Work. Trends Report, 2008) q Organisations with high levels of employee engagement have 2. 6 times the earnings per share (EPS) growth rate compared to organizations with lower engagement in the same industry. (Gallup - Engagement Study) q Highly engaged employees miss 20 percent fewer days of work and are almost 80 percent more likely to be top performers. (Towers Watson)

Framework for Employee Engagement Culture Change Composition Compensation Clarity Conflict Competence Challenge Cooperation Communication Control

THEME 4 CAPTIVATE YOUR CUSTOMERS Are your truly customer focused?

Achieving Consistency (S) The Route to Service Excellence What are your customers’ common and specific expectations? How do you define them? Experience Evaluation Physical Expectations How does the experience you offer rate against the quality continuum? Are you exceeding your customers’ expectations? How do you know? Products People Procedures

Quality Continuum Below Expectations Meets Expectations S-1 S Exceeds Expectations S+1

Cultural Change S-1 S S+1 Inconsistent Delivery Consistent Delivery Responsive Anticipative Low Quality High Quality Reactive Service Proactive Service Internal Focus Customer Focus Impersonal Personal Inefficient Efficient

Achieving S + 1 q Adding value through providing +1 s for customers. q +1 s may be relevant to physical, product, people or procedural elements within the customer experience. q They can be designed to meet specific customer expectations identified from your interactions with your key customer groups. q Most of the time though, the +1 s are common sense and can be very simply applied, such as the little things that your employees say or do to make your customers feel special.

Thank You