Developing Leader for Change & Innovation in Tourism

28th June 2010

Performance Optimisation in the Hospitality Industry

Dr Vanessa Borg

How do optimise performance within the hospitality Industry?

Being part of a team with a common goal!

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!THE

ROAD TO SUCCESS IS

ALWAYS UNDER CONSTRUCTION

WHY CHANGE

Typewriter

Gramophone

Television

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“It is not the strongest of the species that survives, nor the most intelligent,but the one most responsive to change.”Charles Darwin

The Irish Elk

• Through many generations, the Irish elk, found across Europe, became the victim of an evolutionary quirk that led to its demise.

• Each year its antlers grew longer, eventually becoming so heavy that it was unable to lift its head and forage for food and they'd become entangled between trees .

• It became weaker and weaker and eventually starved to death.

• The antlers that helped the elk survive in the first place became exaggerated over time, leading to its extinction.

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WHAT BRINGS ABOUT BEHAVIOURAL CHANGE?

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INSPIRATION

David Ogilvy

“If we always employ people smaller than ourselves, we will end up as a company of small people…”

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Mohammad Ali

PERSPIRATION

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Champions aren’t made in gyms. Champions are made from something they have deep inside them- a desire, a dream, a vision. They have to have last-minute stamina, they have to be a little faster, they have to have the skill and the will, but thewill must be stronger than the skill”Mohammad Ali

RECOGNITION

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“A basic rule for managers is 'Pass the pride down’. People like to create when they can earn recognition for their ideas”James L. Hayes

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Michael Jordan

COLLABORATION

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Talent wins games, but teamwork wins championships.Michael Jordan

Stirling Moss

SACRIFICE

“Everything is attainable if you are prepared to sacrifice, to get it.”Stirling Moss

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Walt Disney

Innovation

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“It's kind of fun to do the impossible.”Walt Disney

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Albert Einstein

DECISION-MAKING

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“If A is success in life, then A = x × y × z. Work is x; y is play; and z is keeping your mouth shut.”Albert Einstein

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Arnold Schwarzenegger

STEWARDSHIP

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“You can do it-as long as you really believe 100 percent.”Arnold Schwarzenegger

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General George Patton

GOAL SETTING

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“Success is how high you bounce when you hit bottom.”

General George Patton

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Michael Flatley

BELIEF IN SELF

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“Whenever I hear, ‘It can't be done,’ I know I'm close to success.”Michael Flatley

The Star FishA mature man spotted a young boy gathering up starfish that had been washed ashore and throwing them one by one back into the ocean.He asked the boy why he spent so much time and energy doing something that appeared to be such a waste of time. There were thousands of starfish along the beachHe replied: “If these starfish are left out here like this they will bake in the sun and by this afternoon they will all be dead

The old man replied: “ But there must be hundreds of miles of beach and thousands of starfish. You can’t possibly rescue them all. What difference is throwing a few back going to make anyway?”

And the boy held the starfish he had in his hand and replied, “It is sure going to make a difference to this one!”

The Corporate Environment

• Dynamic Markets impacting the Corporate Environment– Politics– Economy– Social Environment– Technology

• We live in a World where the only constant is Change

• Adaptability and Flexibility are the crux for success

• Systematic information is the key to success

What Is Hospitality?

• Many peoples’ definition of hospitality extends only to restaurants and hotels

• In reality, it goes far beyond this and includes any organisation that provides food, shelter and other services to people away from home

• When viewed in this light, the hospitality industry can be quite large and far reaching

• Also, the numerous career opportunities become readily apparent

Primary Sectors

• So, what are some of the primary sectors within the hospitality industry? They include:– Lodging (not just limited to traditional hotels)– Foodservice (not just limited to restaurants)– Gaming operations– Private clubs– Theme parks– Destination management companies

Primary Sectors (continued)

– Meetings and conventions (planning and operations)

– Managed park environments (natural)– Resorts– Senior living– Managed Services– Consulting services

Performance Optimisation in the Hospitality Industry

Organisation Design, Job Descriptions and Manpower Planning

Strategy models

Performance Optimisation

• What cannot be measured cannot be managed– Foundations for Performance Management

• Organisation Design, Job descriptions and Manpower Planning– Performance Management Tools

• MIS• Balanced Scorecard• Performance Appraisals• Benchmarking

– Change For Optimisation• Business Process Reenginerring• Quality Standards and Knowledge Management• Staff Consultation

Architects of Performance Optimisation

The Corporate Environment

Structures

Planning the organisation

Factors influencing choice of structure!• What is an organisation and organisation design?

Simplistically, structure concerns how work is divided between the members of the organisation and the coordination of activities needed to achieve organisational goals and objectives.

• The word organisation is broadly used to mean both the organisation as a whole as well as a subset of it. It can be made up of thousands of people as well as a handful of people

• Organisation design is the deliberate process of configuring structures, processes, reward systems, and people practices to create an effective organisation capable of achieving the business strategy.

Different Thinking• ‘Structure follows strategy’ has been a much

quoted maxim of corporate planners in the past. • The rule has been that the first priority is to

decide on a strategy for markets, products, services and finance. Following this, a structure can be designed to put the desired strategy into action.

• Structure has now become a primary business concern.

• Tom Peters recently assigned top weighting to structure followed by systems and people.

Food for thought!

‘‘…good organisation structure does not by itselfproduce good performance. But a poororganisation structure make good performanceimpossible, no matter how good the individualmanagers may be. To improve organisationalstructure will therefore always improveperformance.’’

‐ Peter Drucker

• All businesses have to organise what they do

• A clear structure makes it easier to see which

part of the business does what

• There are many ways to structure a business

Why have a Structure?

The structure is influenced by:

• Personal choice of the senior management

• National laws• The environment in which the

organisation operates• Organisational culture

Types of Business

The organisation and the structure are not an end in themselves…i.e. they are not the reasons why a business exists. It depends on the type of business:

• Global businesses – complex organisation structures• National – organisation possibly stretches throughout the

country• Regional – could be through a county or wider area• Local – small organisations serving local area or

community.

Trends In Organisational Design• Organisations are becoming flatter with

fewer levels of management.

• Organisations are increasing decentralisation and reducing staff.

• Organisations are increasing delegation and empowerment.

• Organisations are reengineering work processes for greater efficiency.

Trends In Organisational Design• Decentralisation

– Top management allows lower levels to make many decisions

• Empowerment– Gives people the freedom to do their jobs as they think best

• Delegation– The process of entrusting work to others

Three Steps in Delegation

1. Assign responsibility—explain task and expectations to others. 2. Grant authority—allow others to act as needed to complete task. 3. Create accountability—require others to report back, complete task.

Span of Control

• The number of persons directly reporting to a manager

Trends In Organisational Design• Bureaucracy

– Emphasizes formal authority, rules, order, fairness and efficiency

• Mechanistic Designs– Are bureaucratic, using a

centralized and vertical structure– perform best in stable

environments with mostly routine and predictable tasks.

• Organic Designs – are adaptive using a

decentralized and horizontal structure

– perform best in change environments requiring adaptation and flexibility.

Nature of Organisational Design• Organisational culture is the personality of the organisation.

• Successful organisations tend to have strong and positive cultures.

• The observable culture is what you see and hear as an employee or customer.

• The core culture is found in the underlying values of the organisation.

Characteristics of Successful and Strong Organisational Cultures

• Emphasize teamwork. • Allow and support risk taking. • Encourage innovation. • Make well-being of people a top management

priority. • Strong cultures are clear, well

defined, and widely shared among members.

Nature of Organisational Design

Core Culture– Beliefs and values shared by an organisation

Nature of Organisational DesignS C O R E S—How to read an organisation’s culture

– S - How tight or loose is the structure? – C - Are decisions change oriented or driven by the

status quo? – O - What outcomes or results are most highly valued? – R - What is the climate for risk taking, innovation? – E - How widespread is empowerment,

worker involvement? – S - What is the competitive style, internal

and external?

Position Descriptions

Position Descriptions

• Why do we need them?

• Communication– Employees know what is expected in job– Defines accountability

• Organisational Efficiency– Helps eliminate duplication of

responsibilities– Identifies hiring criteria

Use of Job Descriptions….

• Performance evaluation

• Training needs

• Recruitment

• Clear understanding of jobs

• Clear positioning of individuals

Writing of job descriptions

• Recognise the role in the Organisation Structure

• Involve people – interviews

• Write specifically what the job is about • use simple language• keep it accurate and up-to-date

Sections on Job Description• Position Title• Department• Position Summary• Lines of Communication• Functions• Job requirements

• Skills• Knowledge• Qualities Qualifications• Education• Experience

• Career Path

Job Summary• Brief overview of the reason the position exists

• Written in broad terms identifying functions of job, but not the specifics

• Easier to write after the essential functions are determined

• Think of as an essay question: “Describe the essence of the job

in 30 words or less

Essential Functions

• Identifies the functions that are essential to the existence of the position

• Functions should be arranged in order of importance

• Use action verbs to begin each function

Organisational Relationships

• Identify positions reporting directly and indirectly to the position

• To what position(s) does this position report

• List frequent and occasional contact, i.e., employees, outside agencies.

Minimum Requirements

• Education/Experience

– Identify what education and experience are minimally required to successfully carry out the essential function of the job

– Remember to think in terms of the “position” not the “person”

• Licenses, Certifications, etc

Knowledge, Skills and Abilities

• Identify specific KSAs needed to successfully perform the

essential functions of the job

• Only list the KSAs needed to achieve the desired results,

not those the ideal candidate might possess

Knowledge, Skills and Abilities

• Use examples from the job to help define the KSAs

concisely.

– Ability to interact effectively with visitors, administration, and staff

– Knowledge of applicable laws and regulations

– Skills in computer hardware repair and troubleshooting

Working Conditions

• Physical Demands– Physical activities– Lifting weight and exerting force– Vision requirements

• Work Environment– Exposure to extreme conditions,

i.e. weather, chemicals– Noise level

Career Path

• Criteria for promotion

• Grades / Scales

• Performance appraisals