Running a Profitable Food Service by the Numbers

May 20th, 2013

Most hospitality managers would agree that food service is the most challenging part of their operations, but recognizing that knowledge is power, there are a number of management disciplines that will enhance any operation’s bottom line.

1.   busykitchen-2Benchmarking revenues, cover counts, and average check by day of week and meal period.  This will help you schedule staff more efficiently, monitor sales trends, and allow you to track the success of new menus and efforts to upsell.

2.   Benchmarking payroll cost, hours worked, and average hourly wage by pay period.  This essential discipline will allow you to stay within budget, monitor overtime, and control your most significant expense.

3.   Formal forecasting by using historical cover benchmarks and knowledge of upcoming events, external factors, and optimum staffing levels, you can ensure expected service levels in the most cost-effective way.

4.   Timely and accurate inventories and benchmarking of inventories.  This will ensure budgeted cost of goods sold and identify any adverse anomalies or trends for investigation.  A further discipline that will yield significant benefits is to identify and inventory high value items weekly.

5.   Sales mix analysis.  This discipline will help you understand your members’ dining preferences while protecting profit margins.

6.   Basic dining policies.  Well-thought out and advertised dining policies will give all members an equal opportunity to enjoy the dining services while ensuring the highest service levels for all customers.

7.   Consistent pre-shift meetings with a purpose and continual On the Go Training.  There is no better way to prepare and train your staff for service.

8.   Product knowledge and upselling training for servers.  They can’t sell what they don’t know and servers well-trained in upselling techniques will increase your operation’s average check while enhancing your customers’ dining experiences.

9.   Upselling feedback.  If servers are provided daily sales goals and feedback on their efforts to upsell, they will be far more engaged, enthusiastic, and effective in increasing their average checks.  You just need to provide the numbers to them on a daily basis.

10.  Tools to Beat Budget.  This powerful discipline will ensure your bottom line, make you more knowledgeable about your operation, and make preparing future budgets a breeze.

Food service managers must make these disciplines part of their daily and weekly routines.  Once these disciplines are instituted and mastered, a number of them can be delegated to properly-trained and motivated subordinates.  When consistently applied, these basic and commonsense disciplines will ensure both profitability and customer service.  What more could you want for your operation?

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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Standards for Golf Operations Staff

May 13th, 2013

Quint Studer in his important book, Hardwiring Excellence, speaks of the importance of establishing a code of behavior for employee service teams.  The purpose is to communicate to employees the basic standards of interaction with members, guests, and fellow employees.  Further, Studer expects each employee to acknowledge and commit to the standards by signing a written copy.

With this in mind, here are some basic standards for the golf operations team:

  • golf-bags-32Arrive on time according to the work schedule.
  • Meet all requirements of the dress or uniform code and personal grooming standards.
  • Get and carry with you at all times a copy of today’s tee sheet; use it to learn names of golfers.
  • Have a complete dedication to member service at all times; fully and consistently embrace the enterprise’s organizational values and culture of service.
  • Maintain a pleasant and positive attitude at all times.
  • Learn and use member names; learn and act upon their individual habits and preferences by providing personalized service.
  • Greet and assist all arriving players; introduce yourself by first name and let them know you are there to help them in any way possible.
  • By anticipation and prompt action do not permit players to pick up or carry their golf bag or clubs.
  • Provide relevant information to players, such as location of pro shop, locker rooms, and practice facility, presence and location of host and other guests, scheduled tee time, how long until scheduled tee off; walk players to pro shop or party when possible.
  • Be knowledgeable about golf operation, daily course set up and factors impacting play such as weather, frost delays, carts on the path, beverage cart running, snack bar hours of operation, etc.
  • Provide special service touches and “wow” factors.
  • Interrupt personal conversations at the approach of players; give them your undivided attention.
  • Assist golfers coming off course; clean and return clubs to club storage or cars.
  • Solve any problems encountered that are within your authority and ability to do so.
  • Report any problems encountered by golfers to the golf professional staff.
  • Maintain the cleanliness and order of your work areas; clean and straighten up work areas prior to departing as a courtesy to the next shift.
  • Work together with other staff to provide a seamless golfing experience for players.
  • Thank fellow workers for their help and assistance.  They appreciate it as much as you do.

When employees understand and commit to expected standards of behavior and service, players and other employees have a richer golfing experience.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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4 Tips for Club Operations

May 6th, 2013

Tip #24 – Real Time Tracking of Revenues and Expenses

If you have bottom line responsibility for your operation or department, your success or failure is entirely up to you.  It is your responsibility to meet your budget, made up of revenues and expenses.  While the accounting department prepares monthly financials so you and your bosses can monitor your performance, why wait until the middle of next month to see how you’re doing?

The simple expediency of tracking your revenues on a daily basis by transferring your daily sales numbers from your POS reports to an Excel spreadsheet will allow you to see if you are on track to meet revenue projections.  Such daily monitoring allows you to intervene to promote sales now instead of when it’s too late.

The same principle applies to your expenses.  Monitoring your payroll and other expenses as you incur them, as if you were writing the checks out of your personal account, allows you to monitor your expenses now, as opposed to later when you’ve missed your budget.

Tip #67 – Digital Camera Helps with Food Presentation Consistency

One of the three rules of providing consistent food products to members is to ensure uniform plate presentation.  The Chef works hard to prepare tasty, interesting menu offerings.  Part of the appeal of food is how it is plated and served.  Unless all kitchen staff are trained in the proper plate presentation, this important ingredient of high quality food service will be left to chance.

Enter the digital camera.  With the reasonable price and ready availability of digital cameras, it is easy to prepare plate presentation exactly as they should be and then photograph them.  Then print the pictures on photo quality paper with a color printer and display them prominently in the kitchen.

Presto, you now have a visual cue for all staff as to how each menu item should be presented.

Tip #98 – Creating Memories

Most clubs have recognized the value of investing in a quality digital camera to record activities and events for their club newsletter.  Members always enjoy seeing pictures of themselves and the photos of fun events encourage those who missed a good time to sign up early for the next event.

Why not carry the digital memories a step further?  For less than $150 you can purchase a good-sized digital picture frame from Walmart or an electronics store.  You can then save your photos of fun events on a memory stick and set up the digital frame to randomly display great pictures of great events.  Place the digital frame on an easel inside the club’s main entrance, lobby, or dining room foyer and watch your members stop to watch the display.  Usually a well-picked display of 20 pictures is all you need.

Some members will want copies of certain photos and these can be provided to them as an email attachment.  Once you’ve developed a large archive of fun events and continue to take photos routinely of your members enjoying their club, you can easily change out the picture display on a weekly basis.  The photos can also be used to develop an annual yearbook of club events that is given or sold to members.  Lastly, the photos can be used by the membership director to help sell prospects on the fun times to be had as a member of your club.

Tip #101 – Mastering the ABCs

As children we all mastered our ABCs, the basic building blocks of language and learning.  The term “ABCs” has long since come to signify the basics of any endeavor.

All of us who work in our industry recognize that the profession is made up of mastering the many basics of hospitality and service.  Even in an enterprise as seemingly complex as food service, it is the execution of the basics that underpin all our efforts and ultimately leads to success.

Of all the things I’ve learned in my hospitality career spanning over 35 years, the ultimate discipline of success is the necessity of executing the basics well.  Jim Collins’ research for his groundbreaking book, Good to Great, Why Some Companies Make the Leap . . . and Others Don’t, pointed undeniably to “disciplined people taking disciplined action” as one of the prerequisites to any successful enterprise.

While there are many innovative, cutting-edge ideas and technologies to improve the products, service, and performance of your operation, you must build these enhancements onto a foundation of the basics.

With these thoughts in mind, I’d like to leave you with what I consider the most basic, yet ultimate tip – that as you contemplate the many ways to add service and value to your club, you must always focus your attention and that of your entire staff on the ABCs, that is . . .

Accomplish the Basics Consistently

Ed Rehkopf, Excerpted from 101 Tips to Improve Your Club Operations, Hospitality Resources International

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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Are Your Internal Customers Also Being Served?

April 29th, 2013

While every hospitality operation focuses on serving its customers, how good of a job does it do at serving its internal customers?  If you look closely at the organization of your enterprise, you’ll see that you have two different types of departments in your organization – operating departments that directly serve the customers, such as front office, food and beverage, activities, tennis, fitness, spa and locker rooms, and support departments that serve the customers indirectly by serving the operating departments.  Included in this group are accounting, personnel, facilities maintenance, and administration.

So how well does the latter group serve their internal customers – the operating departments?  My guess is not as well as they could or should!

Here are some suggestions to get them to focus on their internal customers:

  • trainingmeeting-2Call a meeting of the support department heads and explain the concept of internal customers and how their support of the operating departments enhances the overall enterprise performance.
  • Require the support department heads to draw up a list of things they can do to better support the operators.  My main requirement would be informal weekly visits and meetings with operating department heads to determine their needs and issues with a strong emphasis on “how can I help you and your department.”
  • Have support department heads draw up a list of their frustrations with operating departments, such as slow response to accounting and personnel requirements, sloppy or missing paperwork, poorly coded invoices, late inventories, lack of timely hiring documentation, constant emergency or last minute repair requests, etc.  Then have them design outreach programs such as training and periodic assistance visits to improve their responsiveness to administrative requirements.  The benefit to this is twofold – it improves cooperation and teamwork at the same time it eliminates the ongoing frustrations of support department heads.
  • Conduct an annual survey of operating department heads to measure their satisfaction with the support and assistance they receive from support departments.  Make the results part of the support department heads’ performance reviews.
  • Conduct periodic meetings/brainstorming sessions with support department heads to gauge the success of their efforts to improve communications, training, and support to operating departments.  Identify bottlenecks and problems and work with both operating and support department heads to resolve issues as necessary.

Bottom line:  For the operation to function efficiently all department heads must understand not only their jobs, but how their actions and performance impact other parts of the business.  Recognizing and addressing the needs of internal customers is just as important as caring for the enterprise’s customers/guests/members.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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Labor Cost Control Strategies

April 22nd, 2013

While there is no single answer to controlling labor costs, there are many different things that can be done to ease the task.

Forecast Scheduling.  Using various tools at our disposal such as benchmarked levels of business, the schedule of club-sponsored events, and the catering forecast, supervisors should attempt to forecast their staffing needs at least one month out.  The one-month horizon is important in that it allows time to contact, hire, and train seasonal help.

Wedding food being servedSeasonal Hires.  When business conditions dictate (i.e., when the forecast shows business levels surpassing thresholds), supervisors should begin bringing in seasonal hires.  They can be people who you have already interviewed, hired, and trained such as former employees or employees hired specifically for seasonal work.  In either case, these new hires should be given some indication of how many hours they can expect to work each week and how long they’ll be kept on the payroll.

Conversely, supervisors should also plan for the sudden deceleration as the busy season comes to an end.  Intelligently managing both the expansion and reduction of staff results in satisfied members and significant payroll cost savings.

Budget Time Off.  Clubs have fluctuations in business on a daily and weekly basis as well as seasonally.  These fluctuations can result in legitimate overtime.

Having also said that we want to avoid overtime costs as much as possible, the same fluctuations in business that cause these costs can also help us balance them out.  Using the concept of Budget Time Off, a supervisor can send an employee home early on a slow day.  Budget Time Off is used frequently in housekeeping and the food and beverage area.  When the work is done or it’s slow, employees are sent home.

Budget Time Off should also be applied in areas where staff work established shifts, such as the reception desk, maintenance, or in administration.  The concept works like this – if, because of circumstances, an employee works more than eight hours in one day, the Supervisor should send him home early on another day in the same workweek to avoid surpassing 40 hours worked in a given week.

Cross Training and Departmental Shares.  In a small organization like the club, it does not serve us well to have a large staff of specialists.  Rather, we should have a smaller staff of people who are cross-trained to work other positions.  Often while one area of the club is slow, another is busy.  Most cross training takes place within departments and allows a supervisor to deal with sickness and emergencies.

Another form of cross training is inter-departmental and results in departmental shares – employees who can work in two or more areas as the level of business requires.  Departmental sharing requires close cooperation and communication between department heads to ensure that the needs of both staffs are met and cumulative overtime is avoided.  Supervisors who are interested in exploring the possibility of departmental shares should pick other departments whose workload is dissimilar to their own.

Project Work.  When fluctuations in business leave us with short-term lulls, supervisors who are concerned about keeping staff productively employed should assign project work.  In a club operation, particularly one that has been busy, there are many things that get deferred in the crush of business.  These deferred items, such an intensive cleaning, polishing the details, straightening out back- of-house areas, etc., make excellent project work.

Because we never know when business will suddenly be slow, supervisors should have a ready list of necessary project work.  With this list at hand, it’s a simple thing to assign the work whenever staff have excess time on their hands in lieu of sending them home.

Sending Home Early.  Sending home early is self explanatory and fairly easy to do.  It requires the will to do it, vigilance on the part of the supervisor, and a feel for the business.  While there is always some risk involved that we may suddenly get busy and need the full staff, supervisors should take the risk and depend on the dedication and professionalism of remaining staff to rise to the occasion.  Experienced supervisors know that we all have an overdrive that we can kick into for short periods of time to get the job done.  For those of us who are “adrenaline junkies,” (and who in this business isn’t?), we actually get a rush from it.

Layoffs.  As long-term busy periods wind down, supervisors are often faced with the difficult task of reducing staff.  While no one enjoys laying off employees, it is much easier to do if the employee(s) involved were hired seasonally and already know that their hours will be reduced or they will be laid off when the busy season is over.

Voluntary Leaves of Absence.  Before a supervisor considers layoff staff, he should inquire if anyone on his staff – core or temporary – wants to voluntarily leave.  There may be a temporary employee who for some reason wants to leave or a core staff member may want to take an unpaid leave of absence.

While no one may be interested, it’s always worth asking before another staff member is involuntarily laid off.

Scheduling Vacations.  Full time employees earn vacation time.  Some employees, by virtue of their longevity, have substantial amounts of vacation to use each year.  Supervisors should schedule their employees’ vacations during slow times when you will not be forced to replace them on the schedule.

Summary.  Regardless what combination of strategies ultimately proves most helpful to a particular supervisor, continuing success depends upon vigilance and attention to business levels and scheduling on a daily basis.  The easiest way to achieve this is to make this vigilance and attention part of your daily routine.  Compare daily hours and schedules frequently to ensure compliance.  Checking employee hours daily will help avoid overtime.  Pay close attention to levels of business.  Know who is on the clock, what their schedule and rate of pay is.  Act decisively to control cost.  Act as if your job depends upon it.  Ultimately, it may.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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The Value of Structure

April 16th, 2013

Some weeks back I received a phone call from a general manager and former colleague to thank me for landing his dream job at an ultra-luxury private club aspiring to “national club” status.  He said the hiring process was unexpected and sudden.  His name had been passed on to the owner’s search committee who flew him in for an interview.

John (not his real name) is a consummate club professional with Certified Club Manager status and a solid record of achievement in the industry.  But according to John what really made the committee sit up and take notice during his interview was providing them with a copy of the Remarkable Service Infrastructure (found in The Quest for Remarkable Service).  John gave credit where due for the diagram, but explained that he believed in it and followed it in organizing the clubs he managed.

One of the interviewers, obviously impressed by John’s recognition of the need for organization, commented that in all his experience with club managers he had never come across one who recognized and articulated so well the need for structure in running a club.  Five days after the interview John was offered the position.

I thanked John for his kindness in calling me and giving credit to the Remarkable Service Infrastructure diagram, but assured him that the committee would never have considered him had it not been for his record of accomplishment and reputation as a consummate professional.

While I recognize the value of the Remarkable Service Infrastructure diagram, it and The Quest for Remarkable Service are only marks and words on paper and of little value without a committed general manager to initiate and execute the many leadership and management disciplines involved.

But as with any successful endeavor, the leader must have a game plan and then follow it to conclusion.  As legendary NFL coach Tom Landry said, “Setting a goal is not the main thing.  It is deciding how you will go about achieving it and staying with that plan.”

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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What is Your Club’s Mental Environment?

April 8th, 2013

assurance-2In my recent reading I came across the term “mental environment” to describe the feeling one gets, almost subconsciously, in different physical spaces.  For instance, consider how you feel in the midst of a quiet meadow and compare that to how you’d feel in Grand Central Station during rush hour.  The point is that every space we inhabit has a different mental environment made up of the attitudes, moods, activities, and pace of the people occupying that place.  Contrast the difference between an NFL stadium during Sunday’s game with that of an empty cathedral, or a doctor’s waiting room as compared to an airport with anxious travelers rushing for their departures.

While every space has its own signature feel that feeling can be dramatically altered by human events and emotions.  Compare the mental environment of a happy well-adjusted home and one that is in the midst of marital strife.  Even the same place can have a different feel at different times.  Consider the camaraderie and good spirits in a busy bar on Friday night versus the same bar that morning when it had one patron.

The natural environment is not only a reflection of current occupants and activity, but it also affects everyone who enters.  Walk into that same bar on Friday night and you’ll soon join in with the good time.  We have all heard of the “mob mentality.”  This is a perfect illustration of how the mental environment of a large, unruly crowd can move people to do things they would never do otherwise.  Clearly, the “mental environment” is a very real phenomenon.

In many dining establishments I’ve visited the prevailing mental environment is one of “horseplay” and good times, that is, a compelling sense that the restaurant is there for the amusement and pleasure of the employees.  Certainly it’s not a mental environment of service and caring for the customer.

What is the mental environment of your operation as it pertains to your staff?  Is it one of service?  Is there a sense among all employees of dedication to helping and assisting not only your customers/guests/members, but also each other?  If not, you’ve got some work to do.

As with any other skill you wish your employees to demonstrate, you must take charge and define your standards and instruct your employees.  The better job you do of training and reinforcing    basic behaviors, the more control you’ll have over your operation’s mental environment.

  • Values – your employees must understand the importance of your organizational values and service ethic and demonstrate it in all they do.
  • Attitude and Mood – it is up to you as the leader to insist upon basic requirements of positive attitude and good mood.  Say to employees, “Be of good cheer, or don’t be here.”
  • Standards of Decorum and Demeanor – as a fundamental requirement teach basic etiquette and appropriate behavior to your employees.  Working quietly, efficiently, and with purpose sends a powerful message to all who witness it.
  • Organization and Efficiency – a sense of order and efficiency says a lot about your operation.  Your staff needs to know what to do and when and how to do it.
  • Controlled Pace – while hustle is an important quality in an employee, having a well-organized and efficient operation results in fewer chaotic moments with staff rushing wildly about - which doesn’t inspire confidence in anyone.
  • Helpfulness and Good Cheer – your people create this by their absolute dedication to customers and each other, but you have to require it by direction and reinforcement.

Your enterprise and all aspects of its operation are a reflection of your vision and leadership.  Take control of your mental environment just as you would any other important part of your operation.  You’ll see the results in customer satisfaction and your bottom line.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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Personal Leadership: Adding Value to Your Organization

April 1st, 2013

smiling-woman-2If you are interested in advancing your career, the easiest and quickest way to do so is to add value to your employer.  When you consistently demonstrate your ability to take initiative, solve problems, and make your boss’ job easier, you will be recognized as one who adds value to the organization.  “Personal Leadership” will allow you to stand head and shoulders above your peers and will ultimately lead to greater and greater successes in life.

Reject the Status Quo. Every organization has its way of doing things.  Often the methods are a result of stopgap measures implemented over time to deal with various problems as they arose.  Seldom are standards, policies, and procedures formalized in writing; even less often are they well-thought out from a big picture standpoint.  Despite the haphazard nature of most methods, they are considered sacred and untouchable by employees because “we’ve always done it that way.”

A leader, however, does not accept this status quo.  She shines the fresh light of reason on the organization, continually asking questions: Is there a better way to do this?  Does this make sense?  Does this really serve our customers’ interests?  This willingness to look for new ways to do things allows the leader to realize another principle.

Seek Constant Improvement. Every aspect of an operation – from product and services to standards, policies, procedures, work methods, and training material – should be analyzed for ways to do them better, faster, more efficiently, and with higher levels of service.

When a leader is dedicated to constant improvement and seeks the input of her employees, the entire department becomes energized with ideas, innovation, and enthusiasm.  And while the organization as a whole and its customers benefit from the improvements, the employees gain the greatest benefit – knowing that their efforts contribute in a meaningful way to an organization that is vital and successful.

Be Proactive. A leader should always be looking ahead to ensure her department is ready for any contingency.  Since most businesses have a seasonal routine, the leader reviews past activity from a variety of perspectives in a search for ways to improve performance, and she continually seeks new ideas, events, and activities to keep the operations interesting and fresh for customers.

Leaders should be looking at least three months ahead for routine operations, and further for major activities, events, or projects.  This continually advancing planning horizon allows all essential requirements to be completed in a timely manner, while effectively implementing and marketing new products and services.

Have a Plan. Every event, activity, project, or initiative demands a plan.  Without a proper plan a leader approaches everything helter-skelter, wastes valuable resources and time, and subjects employees to her own disorganization and lack of discipline.

By putting a plan in writing – even something as simple as a one-page outline of timing and responsibilities – a leader is better able to communicate with employees and with other affected departments.  A written plan broadcasts a leader’s competence and abilities to everyone who sees it.

The Army has a phrase to express the need for planning.  The sanitized version of the six P’s is:

“Prior Planning Prevents P. . .-Poor Performance”

Yet poor performance won’t be prevented simply by planning.

Follow Through and Follow Up. Whatever she undertakes, the leader will follow through to ensure that all details are covered and all actions completed.  Often follow through requires modification of the original plan when unexpected situations arise.

Lastly, the leader will follow up on all completed actions or projects to learn from mistakes and to ensure that the initiative met the expectations of customers, other managers, and employees.

Summary.  Demonstrating Personal Leadership is more of a mindset than possessing specific skills.  It involves the willingness to tackle any problem, the understanding that every problem has a solution, and the realization that problems are opportunities in disguise.

The choice to be a Personal Leader is up to you.  You can tread water and wonder why your career isn’t going anywhere; or you can add value to your organization and ensure your future success.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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Onboarding Managers – An Often Overlooked Best Practice

March 25th, 2013

mgmt-team-21A long-recognized best practice is to develop an onboarding plan for your operation’s new hires.  The purpose of such a plan is to ensure that new employees are welcomed to the enterprise, receive the appropriate orientation and introductions, and are indoctrinated into the organizational culture, as well as receiving a basic review of enterprise information, employee benefits, operating policies, and work rules.  When the onboarding process is formalized and consistent, all employees have an appreciation for the story of the organization, an awareness of their job requirements, and a common understanding of expectations for their conduct and performance.

While there is no denying the benefits of a thorough onboarding process for line employees, it is even more critical that the enterprise put a similar effort into onboarding newly-hired managers and supervisors.  Regardless of education, work history, and experience, these individuals act as agents of the enterprise and set the standard for everything their employees do.  With so much riding on their leadership and example, ensuring they convey consistent direction and standards to their employees cannot be left to chance.

My optimum onboarding process for managers and supervisors includes the following:

  • The same onboarding process as line employees receive so that they hear and understand what line employees are told.
  • A copy of the Employee Handbook provided for the same reason.
  • A thorough indoctrination in organizational values, presented by the General Manager for maximum impact and effect.
  • Leadership guidance from the General Manager to ensure that all managers have a common understanding of service-based leadership and their critical role in communicating with and motivating employees.
  • A copy of a Managers Handbook, written specifically to spell out expectations for those who direct the line employees with emphasis on employment law, legal and liability issues, work rules, fiscal responsibilities, safety and security, as well as an in-depth discussion of counseling, conduct, discipline, and performance requirements.
  • A detailed review of job description and performance expectations by immediate supervisor
  • A copy of the operation’s Strategic and Annual Plans so they understand its direction and trajectory.
  • In concert with immediate supervisor, the development of an individual work plan with first year reviews at 30, 90, and 180-days.  Early engagement, counseling, and intervention as necessary are critical to the long-term performance and success of any newly hired manager.
  • Introduction to and review of personnel and accounting standards, policies, and procedures by Human Resources Manager and Controller, respectively.
  • Introductions to key management staff.
  • For managers of private club, presentation to board and key committee members.
  • A first-year reading list of management and leadership books to include Jim Collins’ Good to Great: Why Some Companies Make the Leap . . . and Others Don’t, John Maxwell’s Developing the Leader Within You, and Stephen Covey’s The 7 Habits of Highly Effective People.  To be most effective, these books and other periodically assigned reading material should be discussed on an ongoing basis at weekly staff meetings.
  • Office or work space set up, fully prepared, and waiting for the new hire.  Minimum support requirements include a personal computer or laptop, cell phone or PDA, a list of key phone numbers, a listing of department heads and managers with land line and cell numbers, security codes for work areas, and a set of keys for all necessary spaces.
  • After several weeks the General Manager will set up a one-on-one meeting with the new hire to see how he or she is settling in, to answer any questions, and to once again reinforce basic leadership concerns, organizational values, and enterprise goals.

While this level of effort to onboard management staff seems like a lot of work for something that may only happen a couple of times a year with normal turnover, the potential repercussions of not providing consistent information and expectations to new managers and supervisors and continuing to reinforce it on a regular basis can have a significant and long-term impact on the quality of the operation.

While there are many important and valuable HR best practices, I don’t believe there is any as important as establishing the basis for how your organization runs with those who must lead employees.  The time and effort put into individually developing your management staff and forging them into a team with a common understanding of purpose and means is the single most critical driver of an enterprise’s success, yet how often is it overlooked in the ongoing press of daily operations?

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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Benchmarking Your Way to Improved Performance

March 18th, 2013

William Thomson, Lord Kelvin, one of the leading lights of 19th century science said, “If you cannot measure it, you cannot improve it.”  While he was speaking of scientific inquiry and measurement, the same statement could be made regarding any desire to improve your company’s operating efficiency.

budget-41If you cannot accurately measure your current operating performance, how would you know where to best apply your corrective efforts?  Or even if those efforts were working or not?  This, in a nutshell, expresses the necessity of detailed benchmarking of all aspects of hospitality operations.

Every business operation monitors its performance by accounting for its revenues and expenses, thereby determining its level of profitability.  In the broadest sense the monthly financial statements are the measure of how the business is doing, but you must understand that the financial statements are summary numbers derived from the interplay of a large number of operational variables.

So if you want to increase your profitability, the numbers from your financial statements only allow you to say, “We need to increase revenues” or “We need to reduce our expenses.”  Without further detail as to where the problems are, you’ll never know where best to apply your efforts to increase revenues or cut expenses.

The key underlying variable for revenues in any operation is the number of customers patronizing the establishment, or volume of business.  This measure will be different for different areas of the operation – diners for the food and beverage operations, rooms occupied for lodging establishments, golf rounds for golf operations, retail transactions for the pro shops or other retail outlets.  The second and no less important variable is how much each customer spends on average while utilizing these facilities – the average check per diner in the dining room, the average room rate in a hotel, the green or cart fees per round on the golf course, and the average sale in the retail outlets.

The basic benchmarks of volume and average spend are computed by every POS system, but the real benefit of monitoring these benchmarks is in tracking them by day of week, week to week, month to month, and year to year.  This tracking over time allows the operator to monitor daily, weekly, and seasonal trends which is important because every area of an operation has its own variations based on time of day, day of week, and season.

Here’s an example of how benchmarks can help:

When dining revenues are down it’s important to know what combination of volume and average spend is causing the shortfall because the solution to one or the other is very different.  If volume is down, you need to figure out a way to bring in more customers more often.  If average spend is down, you need to figure out why – are they spending less because of the general economy, is your menu pricing appropriate to their expectations, or do your employees need more training in suggesting and upselling?

Other benchmarks can shed more light on the problem.  Are lesser priced menu items selling better?  If so it might indicate price sensitivity.  Are the cover counts down on Wednesday night when you offer your seafood special?  If so, this might indicate that customers are growing tired of this longstanding menu, or maybe another restaurant is luring them away with their own special pricing and fare.

Another example:  What if revenues are steady, but net income is down?  By benchmarking what menu items are selling, you might notice that you are selling large quantities of a low margin item from your menu.  By carefully tracking your food costs, you might discover that a key ingredient in your best-selling menu item has risen dramatically in recent weeks.  By benchmarking your labor hours and comparing it to revenues or cover counts you might find that your net is shrinking due to low productivity or over-scheduling.

What these examples demonstrate is that the more information you have about the details of your operation, the better able you are to analyze operational weakness and implement corrective action.  This premise of benchmarking key operating statistics is basic to any business, but in order to be most effective benchmarking must be a routine process with data being compiled, monitored, formally reported, and acted upon.  Only then can you use this wealth of information to proactively address emerging issues.  Without a formal system of benchmarking you will forever be reacting to the bad news from last month.

Thanks and have a great day!

Ed Rehkopf

This weekly blog comments on and discusses the hospitality industry and its challenges. From time to time, we will feature guest bloggers — those managers and industry experts who have something of interest to say to all of us. We also welcome feedback and comment upon the blog, hoping that it will become a useful sounding board for what’s on the minds of hospitality hardworking  managers throughout the country and around the world.

Hospitality Resources International – Management Resources for the Hospitality Industry!

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