Improving performance and achieving success in hospitality - An introduction

Who could have predicted in 2008 that the hospitality sector would be in the position it is five years on? Of course it's a mixed picture and some businesses have done exceptionally well, but the many hoteliers and restaurateurs we speak to, still aspire to return to the heady days of the early noughties when customers would spend with gay abandon. We search for those signs that the 'green shoots' of recovery are appearing, however, there is a fear that where we are now in 2013, could be the new 'normal'.

The danger with waiting for the good times to return is that we limp along with minimal profits, just holding our heads above water, with the promise that we'll 're-invest' in the business the minute the tide turns and the money starts flowing into the coffers once again. It's the classic 'Catch 22' and sadly, in many cases, leads to the demise and eventual ruin of a business. Daily we read of once thriving, even iconic, establishments going to the wall. Nostalgia is no protection against the hard financial realities of managing a successful business.

So, what's the solution? Firstly, the good news is, there is a solution! We at Hospitality Skills (www.HospitalitySkills.org) have been studying best practise for the past 14 years through the 'good' and the 'not so good' times and have developed a programme that addresses the issues and provides the solution to put a business back on the right track to profitability and long term success, whatever the economic climate.

In this blog, we aim to address some of those issues and examine the potential solutions. We would welcome your thoughts and comments to expand the discussion and will attempt to answer any specific questions raised along the way.

To begin with, as we are in the hospitality industry, we need to create a recipe for success and as with any good menu, we need the right ingredients. So here they are:

• Vision - (If you don't know where you are going, you'll end up where you're headed!). It all starts with a five year plan for success. We'll examine the key elements and identify the necessary steps to prepare for the way forward. Understanding the thought processes, adaptive reasoning and conceptual framework required.
• Team - (Together Everyone Achieves More). Having the right people, in the right roles, with the right attitude. (See article 'Hire attitude and train the skills' http://lnkd.in/yzfyce) We'll discuss 'organisational structure', optimal reporting and communication systems as well as tips on how to conduct effective meetings. We'll uncover the myths of motivation and identify the factors that make up a great team.
• Budget - (A mathematical confirmation of your suspicions. - AA Latimer). Apart from examining all the benefits to the business, we'll look at the process of constructing a budget and who should be involved in its creation. We'll discuss industry benchmarks for costs against revenue and effective measurement systems to deliver the bottom line. This is a huge area to look at and one of the most important to the business, so we shall break this topic into several sections and examine each individually. 
• Sales - (Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust! - Zig Ziglar) We will discuss the art and/or science of generating revenue both internal and external and examine the many and varied ways to make sales in rooms, F&B, events, weddings, conferencing, leisure, spa etc. We'll look at which members of the team should be trained as salespeople and who has the responsibility for achieving the revenue requirements of the business.  
• Marketing - (The aim of marketing is to make selling superfluous. - Peter Drucker). Here we'll examine all the many and various ways to market. What works......and what doesn't. We'll discuss the key elements of an effective website, the do's and don'ts of social media. With search engines such as Google constantly changing the goal posts (algorithms) on 'how to be found'  we'll examine the latest facets of optimisation. Also,exploring return on marketing investment and how to measure our success 50% of our marketing works and 50% is a waste of time. The skill is knowing which is which!
• Management - (Management is, above all, a practice where art, science and craft meet. - Henry Mintzberg). Effective management is essential to the success of any business. Even more so in the hospitality industry, where we're dealing mainly with people. In this blog we'll discuss all aspects of being an effective manager. We'll identify the key skills needed to deal with the specific challenges in this globally competitive industry, with both rapidly changing technology and environment.
• Training - (Education is what survives when what has been learned has been forgotten. - BF Skinner) We know how important it is, but training is usually the first budget to be cut during times of austerity. Here, we want to discuss why training is essential, especially when times are tough and why reducing your investment in people is a false economy. We'll look at the most effective methods of training staff with the minimum amount of time and disruption.
• Customer Service - (Is the customer always right? Maybe not, but they are still the customer. - J  Goleczka). Here we will discuss all aspects of exceptional customer service and customer care. It's a subject that most hospitality businesses in the UK believe they have right, but the facts say something different. The Institute of Customer Service customer satisfaction index for July 2013 makes for interesting reading. 'Satisfied customers spread the word, but organisations must do more' (http://www.instituteofcustomerservice.com/167-11555/The-UK-Customer-Satisfaction-Index-July-2013-launch.html). We will look at examples of best practise and identify the key areas where a small improvement in customer service can make a significant difference to the bottom line.

.....next time, we look in detail at the first of our ingredients for the recipe for success...VISION.

David Allen - Co-Owner Hospitality Skills (www.HospitalitySkills.org)