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No matter the size of your property, you have to think like a CEO, with shareholders, a board of directors and department managers.

I’m going to tell you how.

Welcome to another edition of Hospitality Property School.

I am your instructor, Gerry MacPherson.

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As the owner of an independent hotel, resort, inn or bed & breakfasts, you and you alone have manifested any problems or uncomfortable situations that have occurred.

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Does that sound harsh?

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Passing blame to or not being supportive of your employees, can develop a disease that can destroy your business and have a negative influence on your life. Your problems don’t go away until you take responsibility for them.

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Alright, you might be thinking “Wait a minute, I thought this episode was about setting up an organizational strategy.” 

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The reason for these exercises is that so when you have an organizational strategy in place and have it work, you have to have the right mindset. You have to be able to look at the big picture.

Your goal, in setting up an organizational strategy is to develop a business that you could someday sell or turnover to someone and the operation would continue to operate without missing a beat.

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You want to develop an operations manual.

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You don’t have to sell but with this thought process in mind, it will be easier to stay focused.

Now, I understand every hospitality property, independent hotel, resort, inn or bed and breakfast could be a little different but this is a model that if you follow, will work.

Don’t plan on racing through this exercise, it’s going to take time.

I recommend that you take some quiet time, away from all the action, a pen and notebook, and write down all the responsibilities required or you think would be required necessary to run your property. Take your time.

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“Remember, the big picture”        

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When you feel this is complete, assigned headings to the responsibilities. I don’t mean individual names but instead titles. When doing this exercise you have to think of yourself as a corporation, not an owner of a business.

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What job functions would you need in your corporation?

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You need a:

President or CEO (chief executive officer):  

This person where the buck stops. This person is responsible for the overall achievement of the property; all the managers’ answer to this person and this person is responsible to the investors or shareholders.

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Operations Manager:

This person is responsible for keeping guests by providing to them what is promised by the marketing department, and for discovering new ways to make the operation more efficient and to provide clients with better service.

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Marketing Manager:

You don’t have a business if you don’t have people staying with you. The marketing manager is responsible for finding new guests and retaining old guests. This is done by finding and promoting new ways to target the preferred customer and then providing these customers with an excellent experience at a competitive cost.

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Human Resources Manager: 

This person is responsible for recruiting and hiring the appropriate people with the appropriate positions. But it doesn’t stop there. They maximize employee performance by ensuring each employee is properly trained and fully aware of the employer’s strategic objectives; development of performance appraisal, and rewarding (e.g., managing pay and benefits); and the balancing of organizational practices with any governmental laws.

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Finance Manager:

This person is responsible for both the marketing and operations departments’ budgets, ensuring the property is profitable and by securing funds when needed at the best rates available.

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Salesperson:

Depending on the size of your operation, this is a person whose sole responsibility is in the marketing department or could be part of the responsibility of other employees. For example, front desk or reservations.

This is the same as an Advertising or Research person. Full-time position or an additional responsibility in another position.

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Housekeeping Manager, Front Desk Manager, Maintenance Manager, Restaurant Manager, and on and on.

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If you have a small operation, this might sound insane but in many cases, one or more of these responsibilities could fall to one person. The important thing to remember is that each of these responsibilities has to be treated like a separate entity and by this I mean each of these responsibilities has to have their duties, methods to do each duty effectively, and checklists to ensure they are done correctly.

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Do these make sense? Let me know, leave a comment.

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As I mentioned earlier the president is responsible to the investors and shareholders.

When looking at the big picture, you have to see the investors or shareholders as outside the day-to-day operation. Their main concern is that they are making a profit.

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Now that you decided which departments that are necessary to run your operation and you have assigned the appropriate names (you might see your name there quite often).

Now take the time, and I can’t stress this enough, take the time to determine all the duties that fall under each department and how they are done. When I say how they get done, look at the most effective way and what tools are necessary to complete each task.

Document this in the simplest form, and I don’t need to sound disparaging here but it should be written so that a child could understand.

Talk to your colleagues, brainstorm, and come up with easy-to-understand methods to complete each task that will, in turn, save you time and money.

When this is done for every duty that is necessary to operate your property, you will have an operation manual that can be used for training and guidelines for you and your employees.

Once the operation manual is completed to your satisfaction and agreed upon with your staff you will see a vast improvement in the consistency of your operations, which will ensure better customer service, employee happiness and increased profits.

If you want to see a template of an organizational structure, check out the Hospitality Property Organizational Structure” tutorial or eBooks, books and audiobooks on the subject. Links can be found on the top menu bar of KeystoneHospitalityDevelopment.com.

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In conclusion

Whether you are a 500 room hotel or a one-person bed and breakfast, the importance of having an organizational structure in place is invaluable. You’ll know what you’re doing when to do it, and be able to stay consistent. This will help ensure returning, happy guests.

Have you checked out the new “INNsider Tips” series released every Thursday? These are short weekly videos that are designed to help you, hospitality property owners and managers grow your property. Make sure to check the out at KeystoneHospitalityDevelopment.com or on YouTube by searching INNsider Tips.

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TO READ OR LISTEN TO THIS EPISODE ON KEYSTONE HOSPITALITY PROPERTY CONSULTING:

https://keystonehospitalitydevelopment.com/KHDC195

 

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