Build a strong, satisfied team to be successful in 2017
The basic tenets of any strong team are: Leadership, trust, financial skills, training and an eye for the bottom line.By Robert A. Rauch, CHA - President of RAR Hospitality
Whether you're an owner, industry executive, general manager or aspiring industry leader, 2017 is going to be a very solid year. One of the keys to success will be team member satisfaction. Without a satisfied hotel staff, we have no foundation upon which to build.
So, here is a primer that includes as a premise the following statement from Laurence Geller, founder of Strategic Hotels and Resorts and chancellor of the University of West London: "A great leader must surround him or herself with people that are better than themselves."
"Strong leaders are essentially great generalists in terms of knowledge areas, attitudes and skill sets … and focus on others and not themselves," according to Keith Kefgen, author of Loneliness of Leadership: Solitude to Success.
Leadership is one of the areas we focus on within our hotels to promote a positive environment. Attitude starts from the top and trickles down to everyone else. Good managers/supervisors with a hands-on approach can build teams up and help grow individuals. When team members have someone to lean on, learn from and that listens to them, they are much more satisfied, and their quality of work significantly increases.
In this environment where hospitality has become more science than art, it is often forgotten that to train and motivate staff, we must have a strong foundation of knowledge.
In addition to some of the basics, this knowledge must include the ability to budget by forecasting both revenues and expenses, the awareness of which distribution channels are most profitable, revenue management tenets and finally trends. These include robotics, artificial intelligence, mobile check-in with smart phones and more. Further, a "business success plan" for the hospitality industry requires a new set of disciplines.
Perhaps the most critical items for a business success plan are to have a vision, a clearly defined set of goals and a "glass-half-full" mindset. Leadership talents include being caring, giving and building others into leaders. Not only is it important to be a leader among your team and staff, it is crucial that one remains an industry leader as well.
"Where trust is high, resistance is low. Therefore, change and progress come quickly. Conversely, where trust is low, resistance is high. Therefore, change and progress come slowly," according to Dr. Randy Ross in his 2016 book Remarkable: Maximizing Results through Value Creation.
Company culture has become extremely important in retaining good talent and trust is developed through this positive company culture. Jumping ship is easy to do unless employees are truly engaged and supportive of the mission. While job benefits are always a positive, they are now so common that they cannot stand alone when it comes to employee retention. Take a note from how we treat our guests and create an environment where your team feels valued, cared for and respected. Then watch as your service scores reflect the work of a satisfied team.
Labor and related costs
Financial leadership skills are valuable for all leaders to have, especially those who want to advance.
Leadership must always be caring and compassionate, but today's increasing worker compensation costs, health insurance costs and labor costs may cause a business to fail. If that occurs, human conditions such as layoffs, bankruptcy, foreclosure or hostile takeover will be much worse than the stress of dealing with and reigning in expenses. Today's labor costs represent nearly 45% of hotel costs when we factor in worker's compensation, health care costs and other payroll related expenses, so we must hire the best available talent.
When we hire, we must look for leaders who have self-confidence, ask lots of questions and care for others. These are the types of people who can someday replace us; perhaps they have some unique skills that we do not have. After we have hired the right person, we must train the team members in the specifics of the job and coach them to do their job well. After both training and coaching, the manager (leader) needs to get out of the way and let people do their job. Delegate tasks, authority and decision-making, but hold people accountable for their actions. A manager who works seven days a week to make sure things get done right is missing the most important attribute of leadership.
The bottom line
At the end of the day, be honest, caring and hard-working, and you can begin to build the trust needed to drive your organization. Be both a teacher and a mentor so that when people learn, they also feel like they have a "go to" source for advice. Our greatest assets are our team members and our customers. If we treat them both honestly, care about them and work hard to preserve the quality and attention to detail that they require, we will have helped to create a "unique selling proposition" that sets us apart from the competition.
Robert Rauch is an internationally-recognized hotelier, CEO, and founder of RAR Hospitality, a leading hotel management and consulting firm based in San Diego, California. RAR Hospitality's hotel collection includes independent, boutique and branded properties throughout North America.
The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or its parent company, STR and its affiliated companies. Columnists published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to comment or contact an editor with any questions or concerns.
Robert A. Rauch, CHA
Robert Rauch, CHA, is a nationally recognized hotelier and President of R. A. Rauch & Associates, Inc., a leading hospitality management and consulting firm. Rauch has over 35 years of hospitality- related management experience in all facets of the industry. Widely recognized as the 'hotel guru', Mr. Rauch maintains a blog where he expounds upon insights and trends in the hospitality industry at www.hotelguru.com. Along with the blog, he also publishes Hospitality Innsights, an electronic newsletter that is distributed monthly. Mr. Rauch held nearly every position in the hotel business including General Manager of full-service Four Diamond hotels for Hilton and Embassy Suites. His education includes a bachelor’s degree in Hotel Administration from Western International University and a master’s degree in Tourism Administration from Arizona State University. He is a Certified Hotel Administrator and has served as chairman of numerous tourism organizations nationally and in the western U.S. He has been directly involved in developing several leading brand hotels, some of which the firm still owns and manages. R. A. Rauch & Associates, Inc. currently operates hotels in California, Arizona and Colorado with several under development.
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