Today’s topic is about setting up your properties
Organizational Structure

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So, you had made a conscious decision in the past to open an Independent Hotel or Bed & Breakfast. You loved the idea of being your own boss, spending the days chatting with customers, sharing stories, being known far and wide as the friendly innkeeper.


It was a wonderful and romantic vision.


Occasionally, you do have days like that but more often than not you find yourself in your office; taking care of the accounting; replacing staff; trying to put a marketing plan in place.


Your time for schmoozing with guests is becoming less and less. You’re feeling tired but the idea of taking a day off is out of the question. You have to be on site or things will fall apart. The romantic vision you had when you began now feels like an unrealistic notion


If you can relate to this, then it is time for you to step back and re-evaluate your organizational structure.


This may sound a little strange but instead of thinking of yourself as the friendly innkeeper, think of yourself as the owner of a franchise.


You might be thinking that sounds insane and that you have no intention of ever of ever becoming a franchise owner, but hear me out.


Think of some of the most successful franchises in the world; let’s use McDonald’s for an example. You can travel to the four corners of the world and find a McDonald’s and you know when you stop in and order a Big Mac or cheeseburger it doesn’t matter what the place of food is going to be the same.


Why is this?


Because the checks and balances in place are consistent in every McDonald’s in the world thus creating a Functional Organizational Structure.


If you buy a hamburger in Toronto Canada or in Düsseldorf Germany you can see the pickles are placed on exactly the same way.


This is not done by accident.


Much time and research went into determining how the pickles should be placed on the burger so they would not fall off.


Now think of your property. You are now a franchisor and you want an Effective Organizational Structure; find the different job titles or responsibilities that are required for your operation.

  • You need a President and Chief Operating Officer who is accountable for the overall success of your properties objective and reporting to the shareholders.
  • Vice-President/Marketing, accountable for finding customers and new ways to provide customers with the wonderful experience. They report to the COO.
  • Vice-President/Operations, accountable for keeping customers by delivering to them what is promised by Marketing. They are to do this with great efficiency so as to provide the customer with better service. They also report to the COO.
  • Vice-President/Finance, responsible for supporting both Marketing and Operations in the fulfillment of their account abilities by reaching the company’s profitability criteria, and by securing capital whenever it’s called for. They report to the COO.
  • A Sales Manager and Advertising/Research Manager who reporting to the Vice President/Marketing.
  • Production Manager, Service Manager, and Facilities Manager who report to the Vice-President/Operations.
  • Accounts Receivable Manager and Accounts Payable Manager who reporting to the Vice-President/Finance.


You might be thinking Are you insane, I only have a small property and I don’t want to or can’t afford to hire this many people.”


Well, you don’t have to.


Take a look at your property and determine, in a perfect world, the positions you would like to have and what their responsibilities would entail.


You assign positions to current staff and to yourself. More than likely you will be taking on more than one role.


Probably, most of the roles.


Each of these roles is going to require their own operations manual and it will be the responsibility of those in each role to start documenting a checklist of what is required to do each job.


This checklist or operations manual will be used in the future for anyone who steps in to that specific role. Over time these manuals will help your organization to run like a well-oiled machine.


Now this might sound like a lot of work, and it is but you have to start somewhere so to help we have included Organizational Structure Chart you can download.


Today I am just scratching the surface with this idea and I know there’s a lot more to discuss and we will do that in future episodes.


I did mention earlier that the president and COO are responsible to the shareholders.


Who are the shareholders you might ask. Well, you are.


If you have any stories about being a friendly innkeeper, your properties organizational structure or owning a franchise and would like to share, or have any questions or feedback you can leave them in the comments section.


Let’s work together to put heads in your beds.

Until next time, have a fun day.


Video Notes:

Downloadable PDF of the organizational structure chart mentioned in the video:


Written Script of Video in PDF


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