Developing Leader for Change & Innovation in Tourism 28th June 2010
Performance Optimisation in the Hospitality Industry Dr Vanessa Borg
! THE ROAD TO SUCCESS IS ALWAYS UNDER CONSTRUCTION
WHY CHANGE Typewriter
“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.
David Ogilvy “If we always employ people smaller than ourselves, we will end up as a company of small people…”
PERSPIRATION Mohammad Ali
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 the will must be stronger than the skill” Mohammad Ali
“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
COLLABORATION Michael Jordan
Talent wins games, but teamwork wins championships. Michael Jordan
SACRIFICE Stirling Moss
“Everything is attainable if you are prepared to sacrifice, to get it.” Stirling Moss
Innovation Walt Disney
“It's kind of fun to do the impossible.” Walt Disney
DECISION-MAKING Albert Einstein
“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
STEWARDSHIP Arnold Schwarzenegger
“You can do it -as long as you really believe 100 percent.” Arnold Schwarzenegger
GOAL SETTING General George Patton
“Success is how high you bounce when you hit bottom.” General George Patton
BELIEF IN SELF Michael Flatley
“Whenever I hear, ‘It can't be done,’ I know I'm close to success.” Michael Flatley
The Star Fish A 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 beach He 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 organisationthat 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
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 • BusinessProcessReenginerring • Quality Standards and Knowledge Management • Staff Consultation
Architects of Performance Optimisation The Corporate Environment
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 itself produce good performance. But a poor organisation structure make good performance impossible, no matter how good the individual managers may be. To improve organisational structure will therefore always improve performance.’’ ‐ 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.