Tag Archives: management

Performance vs. Loyalty

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So if it came down to it, what would you choose?  Would you rather have high performing staff members on your team or loyal staff members?  Both you say? What if you could not have both; what if you had to choose?

I have had the privilege of working in many diverse and unique work environments, from companies with corporate cultures of promoting loyalty by accepting mediocrity and conversely in corporate cultures where performance was the only meaningful factor – darned be loyalty!

So what is the right approach?

I “love” this approach that some organizations use of promoting loyalty by accepting mediocrity. In essence they are saying: Hey! It’s OK to only give 75% of what you’re capable of, just as long as you stay loyal to us, just as long as you do not bad-mouth us, just as long as you have our back we will have yours. Well, that’s how communism works in practice. It creates a culture of everyone watching over each other, where workers simply “milk” the system and do what is barely required in order to get by and live a life of mediocrity. This is very sad and disheartening, because companies create worker bees and automatons rather than individual self thinking performers. It’s like in one of those black and white Kafka movies (don’t know what I mean – Google it). It creates an environment of entitlements, of becoming totally dependent on the company, the system and the process!

You may remember that saying of what would you choose: A hundred years as a sheep or a single day as a lion?

On the other hand, the issue with high-performance organizations, is that the corporate culture rewards top performance, but staff teams may feel under-appreciated and that the relationship is not a two way street. In such environments, where you are only as good as your last quota, where the slate gets wiped clean every month or every fiscal period, everything becomes very transient – there is no past but only the future.

Sadly enough, such organizations create environments where the pressure to deliver becomes almost insurmountable. Such companies, can and typically do grow exponentially, but at what cost? Unfortunately, the human one: there is no trust, no loyalty.

Not sure with which of the two scenarios you may identify with. As you may guess I am a proponent of the latter:the top performing culture, albeit with one minor or major (depending on how you look at it) adjustment – APPRECIATION!

True loyalty comes not from money, from cushy jobs, from exceeding quotas and achieving results through whatever means necessary – it comes from appreciation! A genuine feeling of a job well done,  that what you do has meaning and purpose and that one is not a number or a quota on a wall – but rather a free thinking individual whose efforts are contributing toward the greater good of the team and organization overall.

So which would you choose? I have always chosen performance over everything – though with some appreciation along the way!

Regardless in which environment you may find yourself in, there are always two things you can do!  Either you do it or you don’t!

At Your Service,
Aurelian

Hotel Performance

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I thought I’d take this opportunity to start a discussion on Hotel Performance or better yet under-performance!

As owners and GMs alike know, it’s all about that bottom-line. It’s that deadly “tug of war” between operators pushing for the “top line” in the hopes of being able to spend more in order to drive revenues and owners pushing for the “bottom line”, squeezing every penny possible through minimizing spending and capital improvements investments as much as possible.

One of the key performance metrics that I enjoy using, and it applies to hotels, restaurants, clubs and any business for that matter, is a concept developed and perfected by the Ritz-Carlton Hotel Company –  the Net Flow-Through!  Namely, how much of your top-line dollars, above and beyond what was budgeted, find their way to the bottom line. Owners want 100% and then some, operators would be ecstatic with 30% – 50%, but sadly enough,  if less than 80% of that makes it to the bottom line, you’re doing something wrong.

So coming back to why some hotels outperform and others under-perform? Well, in no particular order, here we go:

1. Marketing strategies across all media channels: print, social, media, in-person, etc. Marketing is not a one-time thing; it’s continuous!  As you may know, it takes 6 months or more of weekly media ads before they start making a measurable impact.

2. Customer/client resolution: how does the staff react to complaints?  How does management react? Are complaints treated with the highest priority?  Are they being viewed as opportunities rather than problems?  I learned a long time ago from one of my mentors, to treat every complaint as an opportunity to do something better and mistakes are good as long as you don’t repeat them.

3. Micro-Management.  If you take a look at organizations that have a culture of micro-management, of mistrusting the staff versus companies that empower their staff to make the right decisions to satisfy the customer, simply do your own research, and tell me, which organizations perform better than the others?

4. Hiring and Training. I know it’s an overused statement, but you are “only as strong as your weakest link”. While H/R has its functions, while department heads are empowered to hire the best candidates for their teams, how often does the GM interview new staff? Never! How could I even say such a thing, you say? “I manage a 600 room hotel, I have 250+ staff members, and you want me to interview every one of them?  You’re nuts!”  I’ve been told that more than once.

Don’t get me wrong, I am not suggesting the GM should interview every employee for 30-minutes, but a quick 1-5 minute meet-up will make all the difference. Oh! And by the way, who should conduct Staff Orientation? H/R or the G/M or both? Depending on how you answer this question you know if you have a property that performs or underperforms. Lastly, when selecting candidates, please remember that skills can always be taught but, talents are unique and what truly makes the biggest difference!

5. Cleanliness!  Housekeeping is everyone’s job!  If you don’t have that culture in place, good luck!

6. Financials!  Know your metrics!  GMs should never hate the Asset Manager (representing the owner)… they should be the Asset Manager!

7. Management By Walking Around (MBWA).  This is the key to success! Your staff need to know that you can do their job, that you can help them at any point and that you are shoulder to shoulder with them in the trenches and that you do have their back! Your guests, members, customers need to know who you are and what you can do for them.

I could go on and on, but I won’t. These 7 points should get one started on the right path. Oh, and one last thing: You’re never too big to do the smallest thing!

At Your Service,
Aurelian

Profitability

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Let me ask you a question:  why are companies in business? Or better yet, what is the purpose of a business?  To make money! And, sadly that is why so many companies get it wrong.

It doesn’t really matter what line of business a company is in, but anyone that is totally focused on making money will soon be out of money!  As Peter Drucker  once said, the purpose of a business is to create a customer.

I am not detracting from net-flow-through, from the art and science  of managing the P&L.  By focusing on solely making money, companies lose focus and truly don’t see the forest for the trees. It can’t always be about cutting costs to the bone, increasing prices to the point of gouging the marketplace and, it has to be about more than that.

Here’s an example near and dear to my heart!  I think that we can all agree that banks for the most part are gouging their customers. From ATM fees, to all sorts of other banking fees, whether online or not, we all know that banks are in it for the money and they are raking it in!  Yet, at most banks, you can never find a pen to fill out your deposit slip, or if you do find one it’s usually on a chain. At the amount of money that they’re making, wouldn’t it be more sensitive and customer oriented to simply give pens away? Through economies of scale and large volume ordering, one can get decent pens for 1-2 pennies each - so wouldn’t it make a great advertising strategy to have the bank name and website address on the pens?  But no, banks will typically not do that; they’d rather spend 1000 times more in all sorts of campaigns whereby one would get $100.00 for opening an account with a certain branch, etc. instead of having their customers and visitors feel appreciated.

Anyway, as I always say: There are two things you can do! Either you do it or you don’t!

At Your Service,
Aurelian

Managing Sideways

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Today I thought I’d share some insights on management.  I think we all know what management is and I bet that 9 times out of 10 times, when one thinks of management one thinks of supervisors and subordinates, task planning, etc. To manage a team is to plan, organize, coordinate and assess activities and objectives.

I bet some of you have also heard about the art of managing upwards (i.e. your boss) and the importance of properly, efficiently and effectively managing the relationships with those above you on the food chain (sorry meant to say corporate ladder).  But we’ll save this topic for another time.

I am also willing to bet that most of you have not heard of the art of managing sideways, and this is what I want to talk about today!

The art of management is not to dictate what needs to be done but to team-build, and collectively plan activities, coordinate and provide support in order to achieve the objectives in the most efficient and effective way.  I can already hear some of you say: But that’s leadership!! No it’s NOT!  Leadership is the art of inspiring and motivating someone to do more than they ever thought they could.  Leadership is JFK going to a “janitor” (aka sanitation engineer) at NASA and spending time with him/her instead of the program director. Leadership is giving more attention to the line-staff in the “trenches” than the department heads. Leadership is the answer when JFK asked that janitor what his job was and the resounding reply was: “my job is to put us on the moon”! That is leadership – where everyone on the team feels like they’re contributing to the mission and things could not be achieved without their input.

Now, in terms of managing sideways, this is the art of providing lateral support and service without making it apparent that you’re actually managing the processes.  Remember the art of management is not for one person (the boss) to look good at the expense of everyone on the team, but rather, to make your boss look good while the whole team looks good as well!

For example, instead of telling your coworker: Bobby – could you please do this, I’m swamped with this time sensitive project…(now you’re bossing your peer).  You could say: Bobby – anything I can help you with? Once I’m done with this time sensitive project I’ll be able to help you with XYZ! By the way, how do you do this?  Can you show me quickly? And so on. Now you’re offering help while asking for help as well, except that when you’re asking for help you’re actually empowering someone to showcase their strengths while you get to achieve your goals.

Please do not misunderstand. Managing sideways  is not about fooling others and tricking them into helping you, it’s about you making your coworkers realize that their priorities are just as important to you as to them, and that Together, Everyone does Achieve More than on their own (T.E.A.M). Managing sideways is about empowering people to showcase their skills, their strengths and making everyone realize their value to the team overall!

So next time you’re at work, give it a try, and let me know how it works for you!  I for one know that I would not have had the success that I have had to date, had it not been for using the three types of management approaches in an interconnected way!

As I always say: there are two things you can do – either you do it or you don’t!

At Your Service,

Aurelian

Check Mate

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Do any of you play chess?  It has to be one of the greatest strategy games of all times.  My father taught me chess – he was a champion player.  Wish I could say the same about myself but alas, no luck there!  One thing I did learn is that there are so many comparisons between chess and everything that we do in life, both personally and professionally. Mainly, the risk-reward and consequences of decisions.

To be a good chess player and to be successful in life, you must always be 5-7 moves ahead and considering all the various outcomes and possibilities of each one of those moves!

When was the last time when you decided to accept a role that you thought about your next 3-5 moves in the future?  The ripple effect in taking the job at hand and the impact it will have on your long-term path?  What about deciding on whom to select for a key opening that you have in your organization? Or discharging a key staff member and the ripple effects that it will have?  I could go on and on, but I’m sure you get the point.

Don’t have life, work and everything else give you a check-mate!  Think ahead and always be prepared to act not only in the present but 3, 5 and even 7 moves ahead that way you will hopefully never have to deal with a stale-mate or worse a check-mate!

Like I always say, there are two things you can do: either you do it or you don’t!

At Your Service,
Aurelian A.

Talent versus Skill

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If given the choice would you hire someone based on their skill level or their talents? I can hear many of you say that one must hire on skill, the more skilled a person is the less training they will require, the quicker they can start taking care of all the various problems and challenges.  I can also hear some of you faintly saying, hire talent, skills can always be taught but talent is innate.

Therein lies the challenge!  As managers and leaders we tend to focus on the easy way out, the path of least resistance, hence we look to hire highly skilled individuals that would have a perfect fit for whatever role we’re looking to fill in the organization. But, is that really the best course of action?

Don’t get me wrong, skills are crucial and I am not belittling them, but there is truth that skills can almost always be taught.  If you have a strong training program, SOP manuals and the like you can teach anyone to do almost anything. Talent on the other hand?  Talent cannot be taught; at the most it can be improved upon much like polishing a diamond in the rough, as they say.  Talent is what people are born with; it is a natural ability which is not acquired through any effort whatsoever.  A person with talent for a particular job almost always receives intrinsic satisfaction when their talents are maximized!

Here’s a simplified example:

A person with very strong analytical, administrative and organizational skills is hired to work the Front Desk of a hotel.  Yet, they don’t have a talent to be service driven, to be around people, to be thriving on human interactions. Would such a person succeed in their job?  Most likely yes, but will they thrive?  Will they excel? Will they be happy?

Conversely, a similar person with a similar skill level BUT with an innate talent for being in social interactions, service driven, thriving on human contact and interactions, is assigned to a back of house function such as Accounting, would such a person succeed in their job?  Most likely yes, but will they thrive?  Will they excel? Will they be happy?

Have you ever done a job or held a role where this applied to you? Do you know what your talents are? Are you happy and ecstatic going to work every day? Think about it!

Yes, hire skill but always choose talent over it!

There are two things you can do: either you do it or you don’t!

At Your Service,
Aurelian

Perception is Reality

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Today I wanted to share with you the concepts of “perception is reality” and “driving the market”.  Meaning, what people perceive does become their reality and driving the market as in the Kevin Costner movie, Field of Dreams, where he kept hearing/saying “if you build it they will come”. While you’re probably thinking I’m crazy in stating the markets can be driven, I’ll share with you a story from my past.

A little while ago, OK…a long time ago, I had the privilege of working at a very high-end and exclusive establishment with a fine dining restaurant that only open for dinner from Wednesday through Saturday.  A small place with only 70-80 covers, and while Fridays and Saturdays were doing OK, Wednesdays and Thursdays were a different story!  Quite embarrassing actually, fine dining place with 80 covers doing only 10-15 covers a night,and uncomfortable for the patrons being the only ones in the large room.

So what did we do? Close the restaurant for those days? No! Quite the opposite!  For a period of two months, every time someone called for reservations for a Wednesday or Thursday evening they were informed that the restaurant was full with no availability, With the only open spots two weeks away.  Little by little, we built this mystique that something special was going on Wednesdays and Thursdays evenings and that people had to call weeks in advance to be able to get a table. Now, as those evenings booked up, we did add special things such as live jazz band and such, and before you know it the little restaurant “that could” became a sold-out success on all evenings that it was open.

Perception is a reality and the market can be driven!

As I always say: there are two things you can do, either you do it or you don’t!

At Your Service,
Aurelian A.