Thursday, August 31, 2006

Dialing For Dollars

8/30/2006
By Ron Feldman

If you have a question about this article, or want to learn more about telephone auditing, please feel free to contact me by e-mail at bizamerica@aol.com. Since 1994, Ron has been president of World Business Services, Inc.

This article found at:
http://www.hotelinteractive.com/

One of the most annoying aspects of running a hotel is the constant barrage of unwanted solicitations regarding telecommunications services.

The analogy that comes to mind is the “boy who cried wolf” because when an attractive offer actually comes along, the hotel executive and/or their telecom manager, just dismisses it. And, even in situations where the solicitor engages the hotel executive in a conversation, most of the time the hotel has already signed up for a term contract of three years that typically has very significant cancellation early termination penalties. The “carrot” to the hotel for signing up for three years is the property will benefit from a larger discount than signing up for a one or two year contract. The problem however is all these term contracts ensure the hotel will not change its contract for the entire term by imposing what is called an “early termination penalty” clause that can be thousands of dollars.

What if the hotel could obtain a savings without changing their current service providers? And, what if this program even allowed those hotels who were under a term contract to be able to save money? Now, there is a new way for hotels to be able to obtain refunds on their existing telephone bills, without displacing their existing phone service providers. Here’s how it works…
A telecommunications auditor can provide a hotel with a no-risk revenue recovery opportunity that has a 100 percent chance of identifying over-payments and/or future savings of five to 60 percent on all phone bills. There are two types of audits: The first generates monies to the hotel based strictly on refunds for over charges while the second authorizes the telecom auditor to negotiate with the existing service providers, even those hotels under a term agreement to obtain rate reductions from the existing vendors.

Either way, the hotel is “ahead of the game”, since this is “found money”. The telecommunications auditor acts as the hotel’s impartial advocate, and doesn’t represent any phone company. The telecommunications auditor works on a shared benefit basis, sharing the savings on a 50/50 basis with the hotel for a three year period.

The compelling rationale for the hotel to engage the services of the telecommunications auditor is that if they did nothing, they would continue to pay more and would lose the ability to obtain refunds. There is a 24 month federal statute of limitations on recovering over charges on communications expenses.

The telecommunications audit covers every type of phone bill imaginable - all voice and data lines, including cellular and internet phone bills. The audit looks at over 80 different components in phone billing.

According to the leading business, financial and communications industry sources, “If you haven’t completed a detailed analysis of your telecom bills in the past year, there’s up to a 90 percent chance you are being overcharged, possibly by as much as 20 percent”.

Paying the Phone Bill

Moreover, let’s take a look at how telephone bills are paid at any hotel, or through any hotel management or hotel corporation. First, telephone vendor contracts are typically negotiated by hotel management. Next, when monthly bills come into the Accounts Payable Department these phone bills are usually incomprehensible to the individuals reviewing them. In fact, the bills are often designed to intentionally overwhelm the client with worthless and misleading information, while hidden costs are buried. This is known as the FUD factor – Fear, Uncertainty and Doubt – in telecommunications.

Let’s take this a step further. For example, a hotel negotiates a great rate with one of the top 3 name brand long distance phone companies. For the sake of this example, we will call that long distance phone company, “American Tele-Monster.” The general manager of the hotel hires a new staff person and asks his administrative assistant to add two phone lines and one fax line for the new person. The administrative assistant then calls the incumbent local exchange carrier, “Monopoly Local Phone Services.” The customer service representative for the local exchange carrier, Monopoly Local Phone Services, asks, “Who would you like to be your long distance carrier?” At this point, the administrative assistant says, “American Tele-Monster is our long distance phone service provider. We want them to be our long distance carrier on these new phone lines.”

Then the customer service representative will ask “Who would like to handle your local toll calls?.” This is traffic that is not in your “local calling area” but not true long distance. The hotel has to choose between the local exchange carrier and the long distance company and which one they choose can impact on the amount of the discount they receive from either.
So, in the previous example, the hotel accounts payable department receives a bill from Monopoly Local Phone Services. All that the accounts payable department is going to do is simply cut the telephone company a check, so that they don’t have their phone services cut off. However, the problem here is that these three new phone lines are going to be included somewhere in the middle or end of the dozens of pages of phone bills or on a completely separate new phone bill that has to be processed every month.

If the newly ordered phone lines do show up on a separate bill they were probably not added to any existing contract and will be billed at full tariff rates for all calls. Once again the accounts payable department will simply cut a check and pay the bill every month. This can be the cause of one property receiving, processing and paying multiple phone bills every month and not knowing if the rates being charged are accurate or if they are getting all of the discounts that the hotel has contracted for.

Does this conversation seem normal to you? Well, it is normal. Here’s what’s not normal. Did you know that all local phone companies make a huge amount of money on providing “billing services” for 3rd party service providers, who usually pay them 13-18 percent of the amount of money that they bill for them on your local phone bill?

Third party billing allows all local phone companies to do business with anyone they choose, because third party billing is unregulated. So, in the scenario I constructed, instead of paying the contract rate of four cents a minute, the hotel is billed at the full tariff rate of 32 cents a minute (ballpark) or the “casual billing” rate that can be as high as $1.00 per minute for long distance traffic for the three new lines. Instead of six second increments, the hotel is billed in 60 second increments, called “full minute” rounding, which adds an additional 20 percent or more to the cost of every phone call. Think about this…

The example I provided, which is wide-spread, is just one example out of dozens of how you can be overcharged on your phone bill. And, frankly, in this case, both the local phone company and long distance company can insist they did nothing wrong. And, they didn’t. To solve this particular problem of “casual billing”, or more often referred to as “bleeding” in telephony jargon, your hotel should simply call your long distance provider and tell them you are going to be adding more long distance lines. They will instruct you on exactly what you have to do to ensure that your phone lines get added correctly to your contract and will be billed at the negotiated rates.

In the meantime, both the local and long distance companies are both happy. The local phone company provides a service to the long distance company in exchange for the local company signing up new customers for the long distance company, they get paid about 13 -18 percent. To be fair to both parties, understand that there are new business and residential lines that need to be added on a daily basis. My example, using business lines, shows you how the problem is generated. And, while it is a common problem, it doesn’t even begin to scratch the surface of a telecom audit. These telecom audits cover over 80 parameters of telephone billing.

Unregulated Means Trouble

Getting back to third party billing, I want to make it clear that because it is unregulated, the local phone companies can allow all kinds of predators to prey upon unsuspecting customers this is known as “cramming”. Let me give you a real life example. Your hotel receives a phone call asking someone in your office to confirm they want voicemail, which is usually your main billed telephone number. The person answering the phone doesn’t think too much about this, and remembers that indeed there is voicemail on that number and says, “Yes”. In some States, you do not need permission to record a phone call. So, this call gets recorded by an independent third party verification company and now the voice mail company that has a third party billing agreement with your local phone company has a new customer and the hotel management knows nothing about it. The “crammer” now bills you $20 per month per new voicemail box on your local phone bill. The local phone company receives 13 – 18 percent of the $20 per voice mail box that you don’t even know that you have and that you never use. Usually, this billing goes on unnoticed for months and sometimes years.

I remember reviewing a phone bill from an association and seeing a charge for “Psychic Hot Line”. Again, this is third party billing. Here, the local phone company gleefully makes 13 – 18 percent on the Psychic Hot Line calls. In this case, an employee of the association decided to make a Psychic Hot Line phone call while they were working in the evening, after everyone else had left the office. It gets even worse. There are actual third party billing companies who “front” for adult phone line companies, so that their clientele can be billed by a “generic” sounding company, like “Intra-Professional Phone Services”, rather than an “adult” sounding company, such as “Phone Sex Unlimited”.

Remember, the most compelling reason for you to engage a telecommunications auditor is that if you did nothing, you would continue to pay what you are currently paying. And, there is no upfront financial risk - if there are no past over billings or future savings discovered, you pay nothing.

Wednesday, August 30, 2006

NOVA SCOTIA GETS RAVE REVIEWS AT IRISH FEST

Author: Canadian Travel Press
Organization: Baxter Travel Group
Contact: ctp@baxter.net

Some 130,000 visitors at the Irish Fest in Milwaukee last weekend had an opportunity to experience Nova Scotia's unique Celtic culture first hand.

Nova Scotia tourism minister Len Goucher said the promotion was successful and productive by all measures for the province's Celtic musicians, artists and cultural representatives.
"People embraced our province and Celtic culture from the moment the gates opened right through to the farewell concert when Tommy Makem and The Irish Rovers reunited on stage and sang Farewell to Nova Scotia with our musicians in front of tens of thousands of people," said Goucher.

This was the first time Nova Scotia participated in the Milwaukee Irish Fest, the largest festival of its kind in the world. As this year's featured attraction, the province had more visibility and performance opportunities than any other participant, providing an excellent opportunity to promote Nova Scotia and its Celtic culture to people with Celtic roots or interests.
According to festival organizer Jane Anderson, the partnership with Nova Scotia was a huge success.

"The response from festival-goers to Nova Scotia's presence was incredible," said Anderson. "Nova Scotia offered people something new, innovative and exciting -- it was a great way to bring music and tourism together. People can't say enough about it, they want more of Nova Scotia."

Nova Scotia's presence at the festival was based around an exclusive performance stage and cultural village.

Monday, August 28, 2006

The Top 10 Quirkiest Hotels from Around the World

TripAdvisor(TM), the largest travel community in the world, today announced the top 10 quirkiest hotels from around the globe, according to traveler popularity and TripAdvisor editors.

1. Have an Ice Stay: Ice Hotel Quebec-Canada, Quebec, Canada
Breathtaking hotel made of ice, features an ice chapel, theme suites, an ice bar, and an art gallery -- with ice sculptures, of course. Activities include cross-country skiing, ice fishing, archery, snowmobiling, snow tubing and even dogsled driving. As one TripAdvisor traveler described, "It's like sleeping in a 5-star igloo." The "icetablishment" is only open from January to April, just don't forget your parka and long johns.

2. Jail House Rock: Malmaison Oxford Castle, England, U.K.
Everything about the Malmaison Oxford Castle is authentic enough to make you feel as if you are in the confines of an actual prison, but with better company. Can a jail hotel be romantic? According to one TripAdvisor traveler, "My husband and I decided to 'honeymoon' at the Malmaison Oxford Castle, feeling that this magnificent converted prison would make a grand setting to begin our 'life sentence' together. It certainly did not disappoint." The first U.K. prison to be converted into a hotel, rest assured the property was renovated to ensure for more comfortable accommodations.

3. Smooth Sailing: Imperial Boat House, Ko Samui, Thailand
With 34 authentic teakwood rice barges converted into land-locked luxury suites, the Imperial Boat House on the beach is nautical nirvana. The lavish outdoor pools are surrounded by a lush and lovely garden. As described by one TripAdvisor traveler, "The resort is really impressive -- beautiful landscaping and accents throughout." A final touch-the remarkable beach-front, boat-shaped pool, features cannons -- no doubt, to keep the pirates at bay.

4. Entertainment Extravaganza: Fantasyland Hotel & Resort, Edmonton, Canada
With over-the-top fixtures and themed rooms, the Fantasyland Hotel and Resort is a shock to the senses. According to a TripAdvisor traveler, "It gives you the feeling that you're somewhere totally different, and when it's -30 C and there is tons of snow, this is the perfect escape." Great for families, it boasts a 217,800 square-foot indoor water park, an indoor ice rink, indoor golf and you guessed it, indoor roller coaster ride. Why all the indoor activities? Remember this is Edmonton, not Ibiza.

5. Tree-Top Tableau: Ariau Amazon Towers Hotel, Manaus, Brazil
Seventy feet up into the tree-tops of the Amazon, the Ariau Amazon Towers Hotel features catwalks connecting the entire complex. Activities include a jungle walk, swimming with dolphins, a caiman hunt and even piranha fishing. The rooms are rustic, but in the opinion of one TripAdvisor traveler, "Wouldn't some towering monstrosity of modern conveniences be somewhat incongruous in this setting?" Don't be surprised to see a wide variety of flora and fauna in this authentic jungle environment, where it's okay to hand-feed the monkeys and parrots.
Malmaison Oxford Castle, England, U.K
Ariau Amazon Towers Hotel, Manaus, Brazil

6. Desert Rose: Al Maha Desert Resort, Dubai, United Arab Emirates
Unique in its setting in the middle of the Dubai Desert, the Al Maha Desert Resort is an oasis with luxurious accommodations, including private pools and an authentic "Bedouin" encampment design. Activities that might be hard-to-find anywhere else include sand dune driving, falconry and camel trekking, and the panoramic views of the Hajar Mountains are a sight to be seen. Oryx and gazelles are known to come around the rooms at night and drink water from the private swimming pools. As one TripAdvisor traveler noted, "There are lots of wild oryx roaming the grounds, which is nice, but also a bit scary when they're blocking the path to the room."

7. Chief Light-Wallet: Wigwam Motel, Holbrook, Arizona
Operating along the historic U.S. Route 66, the Wigwams are actually teepee-style, cement tents. The bargain motel features the authentic feel of a 50s desert town -- from the furniture, to the vintage cars in the parking lot, to the sounds of the old locomotive passing through town. The rates are also a blast from the past -- the average room costs about $45 a night. According to one TripAdvisor traveler, "By the way, the rate is for real ... the youngest son of the builder commented to me that they don't make money operating the motel, they do it 'as a sort of public service.'" Cash and credit only, wampum not accepted.

8. Caveman's Delight: Yunak Evleri, Urgup, Turkey
Carved out of a stunning mountain-side cliff, the honeycombed hotel includes six cave houses, with rooms connected by narrow, maze-like passageways and stone stairways (think Land of the Lost, without the creatures). Decorated in Ottoman style, Yunek Evleri provides private patios offering dramatic views of the Turkish Mesa. As described by one TripAdvisor traveler, "You are then whisked to this serene land with its 7th century caves, outdoor archeological museums, and the best baklava ever."

9. Toro! Toro!: Quinta Real Zacatecas, Zacatecas, Mexico
Built around a 17th century bullfighting ring, it's no longer operational, so leave the red cape at home. The Quinta Real Zacatecas incorporates the feel of "Old Mexico," with its colonial architecture. Beautifully illuminated at night, the hotel also faces the city's ancient arched aqueduct and the local village's quaint shops complete the unique experience. Be sure to enjoy the comfy robes ... as one TripAdvisor traveler suggested, "Do yourself a favor and buy their robes to take home, I didn't and I have regretted it for seven years now."

10. Inn Vogue: Madonna Inn, San Luis Obispo, California
Most often referred to as kitschy, perhaps the best description for the Madonna Inn comes from a recent TripAdvisor traveler, "It's what happens when Barbie moves in with Barney Rubble, all pink and rock." But that's part of the charm of the Madonna. A garish, chalet-style inn, the hotel features 45 rooms with varying themes and color schemes. To many travelers, an indescribably unique experience, perhaps the only thing you need to know is that there is a famous waterfall urinal in the men's room.

This article found at:
http://www.hotel-online.com/News/PR2006_3rd/Aug06_Quirkiest.html

Friday, August 25, 2006

Announcing the Demise of Diets - Top Five Dining Trends for 2006

Benchmark Hospitality International has announced Five Top Dining Trends for 2006, as observed by its properties.

Trend #1 - Announcing the Demise of Diets

Today it's about balanced alternatives instead of dieting. Low trans fat, smaller plates for reduced portions, wise choices verses opting for no or low carbohydrates, selections of natural unprocessed food planned to help the body burn properly ... and that reward with rich flavor. This is where healthy dining is headed.And today's menus are about the total experience -- fresh ingredients, taste, proper digestion -- just the way nature intended it to be. Chefs are increasing looking at cuisine from a dietician's point of view. Balanced health is as important as flavor and artistry.

Trend #2 - Not Your Grandmother's Comfort Foods!

Hand tossed, pulled, kneaded and milled ... preparation techniques that 'say' home-prepared, homemade. Couple these with the freshest organic ingredients right out of the kitchen garden and an elegant presentation and you have what is ultra current in healthy home-style dining. As cookery continues to move away from the sautéing and frying, it's rushing toward grilling, smoking, poaching and plancha seared techniques that require herbs and healthy oils for robust flavor - not fat! Oh and meatloaf and mashed potatoes lovers, take heart, ... these comfort foods will never go out of style!

Trend #3 - Breakfast is Back And Way Over The Top!

Eggs Benedict with lump crab and Smithfield Ham from the Virginias, Sweet Roll French toast, breakfast phyllo made like spanakopita with eggs, feta and gyro lamb, fresh berry Crostini and berry bread pudding with real maple syrup. Hungry yet?Breakfast is back and breakfast dining is huge! Everybody loves breakfast - now, with the demise of low & no carb diets, people are zealously returning to the meal and going for the classics. Flavors are fresh, preparations are creative, and the pay off is in the togetherness that breakfast promotes. Families, travelers and groups come together to enjoy a dining experience while launching their day, whether they're headed to the beach, the museums, the office, or the meeting room.

Trend #4 - Courses Within A Course

Confusing? Here's what we mean. Menus are moving toward total prix fixe dining that is rich in choice. A three-course meal will have several appetizers, entrees and desserts for you to 'build.'When guests order a course, a tasting is provided of the particular seasonal item ordered. If sea scallops are selected, guests will enjoy them three ways -- perhaps with Osetra Caviar and lemon confit, Thai seared with ginger slaw, and grilled with creamed Smithfield Ham. Exciting, isn't it! Great chefs are continually striving to accommodate the moving target of consumer likes and dislikes, forever reinventing flavor, texture and culinary drama -- and trying not to worry about the added kitchen stress. Whoever said the culinary arts were for the faint of heart?

Trend #5 - Lite Fare Loaded With Vegetables

Rotisserie chicken with creamy white beans, spinach and fresh basil; fresh bay scallops with English peas, prosciutto and farfalle; pulled pork shoulder with grilled vegetables, black beans and fresh tomatoes ... the trend is for lighter fare loaded with flavor and the freshest vegetables.And classic salads as Panzanella, Salad Nicoise and the Brown Derby Chop Salad are now being transformed with fresh picked fruit and fresh baked, crusty breads.

A Word about Wine

Rieslings are the comeback kid this year in the wine world. Wine lovers are discovering there is nothing more refreshing on a warm evening than these delicate wines properly chilled. They're refreshing, delicious, pleasantly sweet and have a relatively low alcohol content. And Rieslings are terrific at all levels of sweetness -- from dry to dessert sweet. They pair superbly with dinner and dessert. Oh, and look in the German section of your favorite wine merchant. The best Rieslings are, as they have always been, from Germany. Go ahead, try them again.

This article found at:
http://www.hotelnewsresource.com/article23778.html

Thursday, August 24, 2006

Checking Into the Hotel Industry

We all know that a week's vacation on the beach in Waikiki is a nice change of pace from life in a fluorescent-lit cubicle, but Randy Goldberg, executive director of recruiting for the privately-held Hyatt hotel chain, says many business students don't realize that a job in hospitality can be a lucrative way to avoid that cubicle forever.

Goldberg recently spoke to BusinessWeek.com reporter Kerry Miller about the opportunities for business students within the hospitality industry. Here are edited excerpts of their conversation:

What misconceptions do business students have about the hospitality industry?
I think the biggest misconception for people that have not studied hospitality or worked in it is that it may not be a good long-term career choice. A lot of times people look at it and say, "Well, those are the food servers in the restaurant or the front-office clerks," and they don't think about the higher-level positions that we have in a hotel.

A front-office manager at the Hyatt Regency Chicago is probably making about $60,000 or $70,000 a year. A general manager in one of our average hotels is making over six figures, depending on the size of the hotel. And a lot of students coming out of the business schools don't always know about what that career can really take you to if you're interested in doing that.

What are some of the areas you hire for that would be of interest to an undergraduate business student?
We traditionally recruit about 300 students into our Management Training Program, and while a majority of the students we get come through hospitality schools, we also recruit straight from business schools. That's because while most hotel companies really only look for what we call the operations trainees, we also have programs specifically for things like accounting and sales.
While accounting and sales are going to be where most of the general business students go, we always get quite a few general business students that are interested in our operations program, which is a focus on either the rooms part of the hotel or the food and beverage part, because that's basically a management training program that can be utilized in all different types of areas.

What does your management training program entail?
The program length is on average about six months, and the first three months is a rotation throughout the hotel.

We have every single trainee work in every department and just about every position within the hotel. That means working at the front desk, working in sales, working in accounting, working in human resources, changing light bulbs with our facilities-maintenance department, cleaning rooms—it's a little bit of everything. We're trying to give them a full scope of what it takes to operate a hotel. After that rotation, the trainee would focus on their area of interest.
When they're done with their training, they're placed into an entry level management position, typically at the same hotel in that area of focus. So again, if that area is sales, that person is usually placed as an entry level sales manager. If it's rooms division, that person is placed either as an assistant for an office manager or an assistant housekeeping manager.

After the program is completed, what does the career trajectory for a new hire look like?
Typically the goal of the people that are going into the operations areas is to become a general manager of the hotel. So let's say I decide I'm going to go into the rooms division. I may start off as an assistant manager at the front desk. The next promotional opportunity is going to be at the department-head-level position, such as for an office manager or what we would call an executive housekeeper, someone who oversees the housekeeping department.

The next position is usually going to be what we call an assistant rooms exec, the No. 2 person overseeing the rooms division of the hotel. The next position would be rooms executive, who oversees all rooms operations of the hotel. And that final position is really going to be general manager of a hotel.

Obviously it depends on the person, but that process—from an entry-level manager to a managing committee or rooms exec-level position—on average is probably going to be about six years.... General manager, somewhere between six and eight years. The next position after that is going to be a senior vice-president overseeing a region of Hyatt, which is typically about 25 hotels, or oversight at the corporate office, overseeing one of those regions.

What's the appeal of hospitality for business students?
First of all, the environment is going to be very different: You're in a functioning, operating, mini-city. You're not going to be just sitting there in a cubicle all the time. The other appealing thing is that there's a lot of flexibility in what you might end up wanting to do.

We have people that have gone up the accounting route who decided to become comptrollers and then switched to become a general manager, which isn't probably something most people would think about, that you would be doing all the number crunching in a hotel and then say, "You know, I really would like to manage the entire property." That's something that is very doable at a Hyatt Hotel.

How common are those kids of leaps? Can people really move from sales to accounting, or accounting to operations?
That's something that happens all the time. In fact, when I'm on campus and we do our presentation, I'll usually ask the students, "Where do you think you're like to be?" And some will say, "Well, I want to be a food and beverage director."

And I kind of go around the room and say, "Well, just so you know, there's a good chance that five years from now you guys will be doing something completely different," because I think as they go through the hotel, they start to figure out that there's another area that they may like more.

I think I'm a good example. I started off interested in the rooms division. I went through our management training program, and then I was a front office manager, I was an assistant rooms exec, and then I made a decision to go into human resources, so I completely switched over to a whole new focus. And most people that you talk to at Hyatt would probably tell you they started off in one area and ended up switching to a whole different position.

What's the most unique benefit that Hyatt offers its employees?
I think we all have 401(k) plans and medical/dental benefit plans, but with Hyatt Hotels, you can actually stay at another Hyatt Hotel for free. We hold 1% of our inventory just for employees. It's a nice benefit, because if you do want to go to Hawaii, for example, the room rates for resort hotels can be $300 to $500 a night, but those are complimentary for Hyatt employees.

This article found at:
http://www.tourismexchange.com/exchange/en/newsroom/home/getArticle.jsp?articleID=1041&languageID=1

Employee Incentive Systems: Why, and When, They Are So Hard to Change

Changing the incentive system is not a straightforward activity

In the late 1980s, as part of an effort to beef up its core IT business, Andersen Consulting (now Accenture) began to hire specialist strategy consultants from outside the company. These consultants were more experienced than the usual Andersen employees, and they were accustomed to "much more aggressive individual performance incentives" than was the norm among Andersen's existing IT staff, according to Wharton management professor Sarah Kaplan.

When these new 'hot-shot' hires began to ask for the kinds of compensation they had received in their former firms, the existing employees complained. After all, Kaplan notes in a recent paper -- "Inertia and Incentives: Bridging Organizational Economics and Organizational Theory," co-authored with Rebecca Henderson from MIT's Sloan School of Management -- the existing compensation system "had been reinforced through extensive training and socialization of all new hires." Efforts to change it were "complicated by the fact that no one at Andersen really knew how this new business would operate or what it would take to succeed."

The company came up with a few variations on the existing incentive system that it thought would satisfy the new hires' demands but not alienate the employees already there. It also tried to shoehorn the new hires into the mold of the existing IT staff. Neither effort was successful and many of the new hires simply left the firm. Andersen's efforts to build the new business had a rocky start.

Kodak faced similar issues when it made the switch to digital photography, a vastly different proposition and one that required not just a "transition of technical capabilities from chemical to digital," but a whole new business model, says Kaplan. Senior managers didn't see it that way; they wanted to keep the traditional economic formulas that had been established years earlier by founder George Eastman. Consequently, rather than accept that the digital business required radical change -- including new skills and new managers -- the company tried instead to develop a hybrid business ("film-based digital imaging" and the photo CD). That initiative was "widely viewed as a failure and Kodak eventually created a new digital imaging division separate from the traditional photography group," Kaplan and Henderson note in their paper.

What these two companies have in common, says Kaplan, is that "conflicts around the understanding of what the new business would be, and around how to reward the people building it, led to failures" in creating the type of organization needed to pursue the new opportunity.

Exactly why these conflicts develop is the focus of Kaplan and Henderson's research. "We wanted to understand the systems within an organization that might affect why firms have trouble changing, especially when it comes to a major event, like a technology shift. We started with the question of incentives." Economists tend to say that if you change the incentive system, then the firm can change as well, says Kaplan. But "in fact, changing the incentive system is not a straightforward activity, because it's not always clear what you are changing to," especially when a company is trying to respond to a new technology or market shift. What needs to be taken into account in these situations, Kaplan says, "are managers' interpretative processes -- their 'cognitive frames' -- about what is going on in the marketplace. The incentive system and these interpretations are tightly intertwined." Incentives, she adds, rely very much on measures of performance, yet in a time of uncertainty those measures can change in ways that are hard to predict or prepare for.

Incentives are generally defined as "what managers put in place to get people to do their jobs," says Kaplan. In many organizations, they are about things other than straight salary, such as bonuses, benefits, a corner office, a plaque, praise from senior staff, promotions, the ability to work on high-profile projects, and so forth. "I know from the general business press that firms are trying these days to do more with non-salary incentives, like stock options. But no matter what set of incentives a company has, it will encounter the same problems. For example, some companies found that when they offered employees more stock options and lower salaries, employees resisted the move. In a lot of organizations, people only trusted the old incentives."

Kaplan and Henderson's paper deals with incentive structures across the board, in startups as well as more established firms. But they note that established firms face particular challenges because they have long histories of operating -- and rewarding employees -- in specific, well-known ways. "Not only do you have to figure out a new method [of providing incentives to employees], but you also have to break the set of promises you made based on the old incentive system.

"Kaplan gives her own case as an example. "As a professor at a university, I would not trust that I would get tenure unless I had seen the university's long track record of granting tenure to professors who meet certain criteria. But when things change, there is no track record. People don't know whether to trust the new incentive system." In such situations, says Kaplan, "the interpretation, or the cognitive frame of what is going on in the marketplace, will dramatically affect how employees understand what they should be doing and thus what incentives might be needed in order to promote a new set of activities."

Ambiguous Measures

In their paper, Kaplan and Henderson focus on the complexities involved in "ambidextrous organizations -- those in which one part of the organization continues to operate as before while another attempts to combine the best aspects of small, entrepreneurial firms with the advantages derived from being part of a more established company." They look specifically at the constraints established firms face as they attempt to build appropriate incentive systems for new ventures. They argue, first, that "incentives are likely to be based on measures that are subject to interpretation. However, where the economic literature assumes that, even if measures are subjective, they can be instantaneously observed by everyone in the firm, we argue that building a common understanding of the relationship between actions and outcomes ... is not easy." Each of these measures, the authors write, "can be quite ambiguous, with its meaning only emerging over time as a result of shared history and the slow development of collective cognitive frames .... We believe that in any situation of even moderate complexity, incentives are always defined in relation to other existing cognitive frames of the firm's managers and employees."

The authors also suggest that, in an established firm, the incentive system is likely to be "embodied in a series of relational contracts" -- meaning ones that cannot be fully written out but are enforced by the fear of repercussions if they are not followed. For example, a manager might be tempted to renege on paying a promised bonus for good performance in one year, but will resist because the employee would no longer work hard for a bonus in the future. It is in situations where interactions are repeated that these kinds of relational contracts exist. While the economics literature portrays relational contracts as relatively easy to construct, the authors suggest, in contrast, that these contracts take years of experience to establish, and are based on a shared knowledge of terms and conditions which the employees have come to trust will be honored by the firm.

In addition to relying on external research, Kaplan and Henderson talked to employees inside organizations to figure out why their companies find it difficult to respond to change. "People came up with a number of reasons -- the company is paying attention to the wrong customers, or investing in the wrong technology. Those reasons could be true," the authors note, but add that they are "manifestations of problems in the underlying structure of the organization" that affects any efforts at change on a basic level.

"How We Do Things around Here"

In order to explain their thesis further, Kaplan and Henderson look into firms' inability to respond to "architectural" innovation -- innovation that is not about changes in the underlying components but about changes in the links between them. The difficulty comes because these firms continue to rely on "accumulated knowledge, such as mental models and problem-solving strategies, from the previous generation of products." Kaplan and Henderson tie that point into their discussion of the "interplay between incentives and cognition" by suggesting that as these collective frames become "more deeply embedded in the organization, they become implicated in the incentive system and the mutual understanding of 'how we do things around here.' Architectural innovations thus require not only new cognitive frames, but also new incentives."

Some argue that changes in incentives might be difficult because of questions of equity. The authors quote other research suggesting that internal norms make it difficult to offer employees of a new unit any incentives that are significantly more high-powered than those offered to employees in the existing firm. Yet Kaplan and Henderson don't think the equity issue alone can explain "why the incentive regimes in many new units are so similar to that of their parent company. It is often the case, for example, that employees working in sales may be much more highly compensated than many other employees. This creates relatively little tension as other employees come to accept that working in sales is different, difficult and unpleasant, or simply that salespeople need different forms of compensation to keep them motivated."

According to Kaplan and Henderson, many people just assume that if the world changes "such that the firm should reward a different set of subjective measures, the firms can simply announce the change. Employees will know that it is rational for the firm to enforce the new contract, and employers will know that employees will therefore behave appropriately. Both parties will move seamlessly to the new equilibrium and change will be unproblematic."

But that is not what actually happens in "the messy world of a real organization" where significant change requires the establishment of a new contract [incentive system] between a firm and its employees," Kaplan and Henderson argue, adding that establishing that contract involves three particular challenges. First, identifying exactly what an employee is likely to do without being paid to do it, or what his or her true interests are, is a complicated process. Also, employees' interests may evolve over time as they gain experience... and respond to changed incentive structures. Second, there is "tremendous task uncertainty in the mapping from actions to useful output ... For any task of even moderate complexity inside a modern firm, managerial knowledge of these mappings is, at best, a partial and incomplete model that has evolved through many years of individual experience. In the case of an entirely new business opportunity, they are likely not to exist at all. So [for example] when the manager of the new digital film business tells us that the things she is doing are most likely to lead to growth, how do we know if she is right?"

Third, "as situations become more dynamic and ambiguous, it is even less clear what the employees' interests are and it is increasingly unlikely that an employer can easily gain this knowledge. Employees may also react in unanticipated ways to the bonuses that they are offered. ... This problem is often compounded by the fact that the firm has no history of rewarding people who behave in the desired new ways, leaving managers and their employees without a familiar -- and hence effective -- relational contract."

One way companies have tried to facilitate this transition is to consider offering new incentive structures to the people in the entrepreneurial units. Yet what happens in these cases, the authors note, is that while managers "recognize that radically different incentive structures might encourage their employees to pursue more high-risk radical technologies, they often hesitate to implement them" because they would "violate the existing relational contract with employees in the traditional business." This results in a "selective intervention" into the incentive regime, one which is bound to fail because the entire system is not realigned to fit the new environmental context.

The Traditional Road to Promotion

All this makes it hard to design incentives for ventures operating in new arenas, but it is particularly difficult in established firms, the authors say. It takes many years for existing incentive schemes to become "embedded both in the cognitive frames of the employees and employers and in the routines and procedures of the firm. ... We suspect it may be harder to learn how to evaluate and reward people than to learn how to do the work itself because there is nearly always a distance between effort and outcome.

"Indeed, in established businesses, senior managers have most likely developed intuitions over years of experience that enable them to evaluate their subordinates effectively. "The most senior managers may themselves have been promoted as much on the basis of this knowledge as on the basis of task knowledge because their primary task is to evaluate and reward the people who report to them," the authors write. But this might get in the way of anticipating or seeing changes in the market. "The fact that managers might see things in a particular way is partially a product of their past and current incentives. ... This is especially true for very successful managers who have been promoted on the basis of their subtle understanding of what should be done. If, over time, managers have developed the kinds of local, focused cognitive frames that are likely to get them promoted, then they may plausibly reject information alerting them to radical shifts in the environment as unimportant."

As employers are faced with entirely new markets and technologies, "or with the need to evaluate a manager who is running a highly risky, rapidly growing unit, old intuitions as to what constitutes good efforts are unlikely to be correct. Both employers and employees will need to relearn what constitutes good effort and identify appropriate measures of this effort under changed circumstances."

One particular problem is that employees and employers may develop different senses of what the new incentive regime is -- "so that for any given action, employees may feel betrayed while managers believe they are following through," the authors write. Also, managers might feel that because there are so many complications associated with new technology and new job descriptions, the best thing to do is simply impose an existing incentive scheme on the entrepreneurial venture.

Thus, the "need to use subjective measures and implicit contracts to motivate the organization to do one thing may make it very difficult to do another (such as undertake a radical change). If, as some researchers have argued, routines are truces in the organization, and if these truces embody certain cognitive frames about the business and a set of incentives for acting on that understanding, then any changes in either the frames or the incentives will result in a breakdown of the truce" which in turn can cause misdirected effort and ultimately failure.

Creating a New Model

What can be concluded from all this, the researchers say, is that "first, local routines -- whether tacit knowledge, codes or procedures -- are the product of not only a cognitive process whereby individuals learn about how things are done, but also an incentive-related process, whereby individuals learn what kinds of behaviors are likely to be rewarded. The effects of an incentive regime -- 'I act like this because this is in my best interests' -- cannot be clearly separated from cognition: 'I act like this because this is what I believe to be the case.' Rather, cognition and incentives evolve simultaneously in a complex, reciprocal process."

Second, with regards to the adoption of a radical new technology within an organization, the researchers suggest that "the barriers are both cognitive -- 'We know this won't work, and we doubt that it will ever make money even if it does' -- and incentive related: 'You won't pay me for trying to learn.' Because cognitive frames and incentives are tightly intertwined in an organization, any attempt to change one must be accompanied by a change in the other."

Their paper, the authors note, "highlights the importance of the degree of 'embeddedness' of cognitive frames and incentives in dealing with change. The less embedded they are, the more likely that alternative views of the world (views that could better accommodate radical technological change) can emerge. Yet a deeply embedded system has its advantages -- allowing smooth decision-making processes and effective implantation of strategic actions." A model that views "incentives and cognitive frames as intertwined in an organization recognizes that both are possible. Forces for tradition exist when cognitive frames and incentives are deeply embedded. Yet ... change is possible when managers can reshape these links."

Kaplan and Henderson view their paper as an attempt to dig deeper into the set of explanations for why change can be so difficult to achieve in certain situations. Says Kaplan: "We have tried to explore a potential new pathway for research, linking economic thinking about incentives with what is going on in the organization and, in particular, with managerial interpretive processes."

This article found at:
http://www.hotelnewsresource.com/article23753.html

Wednesday, August 23, 2006

Polls Reveal Hotel Guests' Perceptions of Housekeeping Issues

Bad experiences have ripple effect on sister establishments, say consumers

Atlanta-based pest control company Orkin, Inc. announced the results of two independent polls of hotel consumers and hotel insiders about their respective perceptions of pest control and other housekeeping issues in the hospitality industry.

For regular hotel users (i.e., those who spend at least one night a month in a hotel), bathroom cleanliness is a top concern. When asked to select conditions that might cause them not to return to an establishment, more than nine out of every 10 (92 percent) chose 'visibly unclean bathtub.'

Pests aren't far behind in their ability to turn off guests. Eighty-five percent of regular hotel-goers reported they might never return to an establishment if they saw or heard a mouse, while 80 percent indicated they might never return to an establishment if they found a cockroach in the bathroom.

Linen cleanliness is not as great a concern for hotel guests, though half (51 percent) of regular hotel-goers said a hair on the pillowcase of a 'freshly-made bed' might stop them from returning to an establishment.

Perhaps the most important point for chain hospitality brands: a bad experience at one hotel in the chain has a ripple effect. Over 70 percent of all poll respondents reported that housekeeping problems at one hotel would impact the way they felt about its sister hotels.

Insiders and Consumers Agree on Bathroom Cleanliness but Not on Pest Control So how do the industry's housekeeping priorities line up with guests' concerns? When asked to prioritize five housekeeping concerns - linen cleanliness, bathroom cleanliness, dishware cleanliness, chemical safety and pest control - the results revealed some differences in perception.

Given guests' deep aversion to an unclean bathtub as revealed by the consumer poll, one might say the hospitality industry has its priorities straight. Two-thirds of hotel insiders (67 percent) rate bathroom cleanliness in their top two concerns and 87 percent rate it in the top three.

Pest control is a different story. While pest control issues cited in the poll can stop more than four in five regular hotel users from returning to an establishment, only 19 percent of hotel insiders rate pest control as their top housekeeping concern.

'Pest control isn't always a top priority for many hotels and motels until there's a problem,' said Orkin's Quality Assurance Director Zia Siddiqi, Ph.D. 'That's why it's so important for hospitality establishments to have an effective, ongoing program that's invisible to guests and, frankly, invisible to most hotel staff. The less they have to think about it, the better.

'How Common Are Pests in Hotels?The insiders' poll also asked how often various pests were found in and around respondents' establishments. Highlights include:
• 45 percent of respondents reported that flies are a 'somewhat common (every 3-6 mos.)' or 'very common (once a month or more)' problem at their establishments.
• 32 percent of respondents reported that cockroaches are a 'somewhat common (every 3-6 mos.)' or 'very common (once a month or more)' problem at their establishments.
• Rodents are slightly less common. Twenty-six percent of respondents reported that rodents are a 'somewhat common (every 3-6 mos.)' or 'very common (once a month or more)' problem at their establishments.
• 20 percent of respondents reported that bed bugs are present in their establishments 'once every year or so.' For complete poll results, visit: www.orkincommercial.com/apps/pressmanager/ARFiles/HospitalityPollResultsOnline.pdf.

Poll Methodology

Hotelier perception data is based on the responses of 95 hospitality industry insiders to an online poll promoted via an industry publication. Titles included:
• General Manager - 28.4 percent
• Housekeeping - 12.6 percent
• Marketing - 8.4 percent
• Concierge - 3.2 percent
• Foodservice - 3.2 percent
• Other - 44.2 percent (titles included Assistant General Manager, Director of Operations, Front Desk Manager, Maintenance, Human Resources)

Hotel consumer data is based on a subset of 85 (out of 410) respondents to an online poll promoted via email campaign to a wide demographic target. The subset included only respondents who indicated they spend at least one night per month in a hotel.

This article found at:
http://www.hotelnewsresource.com/article23732.html

Tuesday, August 22, 2006

When First Impressions Flop: The Power of Getting a Second Chance

STANFORD GRADUATE SCHOOL OF BUSINESS

It's your big night. You've somehow landed at the same party as the CEO of your dream company. You want desperately to impress him, but when you're introduced you find yourself trying too hard, talking too loudly, and even blurting out an off-color remark. You know this is not who you really are, but the expression on the guy's face makes it plain: You've blown it.

According to Jerker Denrell, assistant professor of organizational behavior at the Stanford Graduate School of Business, what's key in dispelling negative images is making sure you get a second—and third and fourth—chance. Having the opportunity to show different sides of yourself to bosses and colleagues in numerous situations—both social and professional—is, in fact, critical to your career advancement.

Denrell's research shows that when someone makes a negative impression on us, we're less likely to seek out that person again, making it difficult to gather additional information that could change our first impression. If, however, external factors force further interaction, there is opportunity to soften the first negative judgment, if not reverse it altogether.

The problem has interesting workplace implications, particularly in environments where social activities are encouraged outside of work. "People tend to socialize with those who are similar to themselves in terms of gender, race, educational level, and so forth," Denrell says. In most organizations, for example, men tend to socialize with other men in bars or on golf courses. By getting to know one another better, they have the opportunity to change an incorrect negative opinion as they learn about that person's other qualities and strengths. But because men don't usually interact in this way with women coworkers, they don't have the same opportunity to alter false negative evaluations. The same phenomenon similarly affects people who are members of minorities or perceived to be in any sort of "out" group in an organization.

Such a dynamic can have serious consequences for people's careers. Individuals who actually possess similar skill levels may be evaluated differently simply because they have different social ties. People who come across badly early on—whether due to real errors or biased perceptions on the part of their evaluators—can be disadvantaged when it comes to promotions because they don't have the same opportunity as others to interact with their evaluators and correct the poor image.

The power of second chances is a fairly intuitive but overlooked phenomenon in social psychological research. "Most of the literature of the past 50 years has stressed how our stereotypes and expectations about others influence the way we perceive them and what we remember about them," Denrell explains, but that's not the whole story. The research doesn't consider that when we have a negative reaction to someone we generally try to avoid the person in the future and so never gather additional information. "Even if it were possible to evaluate that individual in a completely objective fashion—without stereotypes or expectations—a bias would still remain because we end up working with only limited information," he notes.

Denrell's broad area of research involves how people learn. "In learning, if you only care about accuracy, the ideal practice is to gather a lot of information about each alternative," he says. This, however, costs time and energy, so people often have to decide what and whom they want to learn more about. As a result, they are more likely to follow up on people they like rather than laboring to find out more about those who rub them the wrong way.

Organizations that are serious, then, about promoting diversity and equal opportunity will want to be on the lookout for ways to ameliorate dynamics that prevent people from getting to know others outside their usual crowd. "Companies may want to establish more formal mechanisms that promote interaction among different groups of people, for example," Denrell concludes.

—Marguerite Rigoglioso

This article found at:
http://www.gsb.stanford.edu/news/headlines/denrell_firstimpressions.shtml

Monday, August 21, 2006

Nobody Asked Me, But… No. 14

Impact Studies, Stretching Segments, Short-Stay Rentals, Smoke-free Marriotts, Franchising in China, Save the Belleview Biltmore Hotel.
By Stanley Turkel, MHS, ISHC, August 2006


1. In June 2006, I wrote that “The study of impact by a new hotel franchise on an existing franchise is an art not a science. The conclusions of impact studies are, therefore, subjective.”

Now, Steve Rushmore, president and founder of HVS International has confirmed my thesis that impact studies “are at best educated guesses. It’s like trying to guess what the Dow Jones Industrial Average will be a year from now.” Rushmore says “… the solution isn’t to try quantifying impact, but rather to head off the problem before it occurs.”

Rushmore proposes the following solutions:

  • All new hotel franchise agreements should contain a defined geographic area in which the hotel chain could not franchise, operate or invest in a hotel having either the same or a competitive brand over the term of the agreement.
  • Existing franchisees (with no exclusive territories) should be given an option either to negotiate a territory or accept the use of impact studies over the remaining life of their agreements.
  • Franchisees who decide to go the exclusive territory route but cannot reach agreement should be subject to arbitration. Franchisees who are not satisfied with the findings of the arbitrator should then be allowed to terminate the franchise without payment of liquidated damages.
  • Franchisees who opt for the use of impact studies should have the right to terminate the franchise without paying liquidated damages if they do not agree with the findings of the impact study. Impertinent Question in Search of a Pertinent Answer: Which major franchise company will be the first to adopt this commonsensical position?
2. Professor Larry Selden (Columbia Business School) and Professor Ian C. MacMillan (Wharton) wrote in the April 2006 Harvard Business Review about the growth gap between insular research and core customer requirements. They suggest a three-step process for closing the gap by understanding what the customer wants and then using the understanding to drive innovation. Here’s my take on how the hotel industry can benefit:

Step One in the process is identifying and developing a better understanding of the
core customer. How many more guests could you attract if your hotel featured
the following amenities:
  • Free in-room high speed internet access and wireless internet throughout the entire hotel
  • Smoke-free environment
  • Flat screen panel TV with high definition
  • Stereo FM radio music system with Ipod/MP3 connection and an easy-to-program alarm clock
  • Refrigerator and microwave in every guestroom
  • Walk-in shower with side sprays and hand holds
  • Better lighting throughout the guestroom but especially over the headboard for reading in bed
  • Healthful foods in the restaurant and room service
Step Two is to enlarge the core business by satisfying the customers’ other needs and looking for customers who have needs like those of the core customers.

For example, for senior citizens, provide specially-trained staff members who understand the needs and wants of the older traveler provide services that appeal to them. The staff must be taught how to communicate with persons with poor hearing or weak eyesight or both. Many mature travelers prefer locations on the low floors near an elevator. Safety and security are concerns, so smoke detectors and floor-located fire exit signs in corridors can be a strong selling point. More than other travelers, older guests prefer designated public areas where they can talk and socialize. Such rooms should generally be separated from the noisy cocktail lounges. (See my “Nobody Asked Me, But… No. 13 Turning Gray Into Gold” www.HotelOnline.com, July 18, 2006).

Step Three is to “stretch” segments, that is find customers beyond the core who can be served with your expertise.

For examples, for the VFR (Visiting Friends & Relatives) market, D. K. Shifflet & Associates has identified a 60 million room-night opportunity. Even in these busy times, only 65% of our guestrooms are occupied. On an average day, therefore, 1.5 million rooms are vacant. If we could capture just 5% of that potential business, it would add millions of dollars of revenue. Many of these leisure travelers want to stay in a hotel for freedom, privacy and comfort but their hosts are the key resistance factor to moving guests to hotels. Therefore, hosts need to get over “the guilt of not inviting them” and “the need to save them some money.” The challenge is to activate a strong industry advertising program (probably humorous) with guilt-reducing messages.

3. Did you hear about the short-stay apartment rental market? It is an off-shoot of the corporate housing industry which traditionally provides apartments for employees who need to work off-site temporarily or who need transitional housing after relocation to another city. But while those services usually require a stay of month or more, short-stay apartments are geared to travelers who need a place for a week or less. According to the New York Times (July 9, 2006), short-term rental firms say that short-stay guests typically save 25 to 50 percent of the cost of a deluxe hotel room. Most apartments feature full kitchens with pots and pans, silverware and utensils, dishes and glassware. The major suppliers of such apartments are:

  • Oakwood Worldwide which offers stays with minimums of five to seven days in cities across the United States and in Asia
  • Metro-Home, a New York service whose apartments are equipped with cable television, VCR’s, telephones with dataport for Internet access and answering machines.
  • Resortquest, a division of Gaylord Entertainment which manages thousands of properties in 50 destinations, mainly in resort areas
  • Furnished Quarters, a service based in New York offers apartments in the metropolitan area and in Boston, Florida and a few overseas locations. Its apartments are stocked with items like ironing boards, tea kettles and cookie sheets.
  • Adobe, a New York-based service 4. Congratulations to Marriott for going 100% smoke-free at all hotels in North America beginning in September. This represents the industry’s largest move to a non-smoking environment with more than 2,300 hotels and corporate apartments and nearly 400,000 guest rooms under the Marriott, JW Marriott, Ritz-Carlton, Renaissance, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn, TownePlace Suites and Marriott ExecuStay brands.

5. Most of us know that Kemmons Wilson started Holiday Inns in 1952 when, on a family vacation, he couldn’t find decent accommodations on the road. Within sixteen years, there were 1000 Holiday Inns built in conjunction with the construction and expansion of the United States interstate highway network under President Dwight Eishenhower.

As I wrote last month, in the next 10 years, China will become the largest in-bound travel destination in the world. It is estimated that there will be 180 million trips in China. Where will all these tourists stay?

If Andrew Cosslett, CEO of the Intercontinental Hotel Group has his way, most of them will be staying at Holiday Inns who built their first hotel in Beijing in 1984. Coslett says that most people in China think that Holiday Inn is a Chinese name, not one that started in the United States.

Since the Chinese are registering 4000 cars a day, building 85000 kilometers of freeway and 47 airports, the need for new hotels is extraordinary.

And since only 10 percent of the “away from home” market in China is branded there is a once-in-a-lifetime opportunity for the major U.S. hotel brands and their franchisees. Is it time to suggest that the Chinese governmental authorities create a model franchise agreement that avoids the one-sidedness of most U.S. franchise contracts? On January 1, 2006, the Vietnamese government passed a new commercial law which for the first time provided a general framework for franchising by defining franchising and requiring registration by prospective franchisors. (see Philip F. Zeidman’s article in Franchise Times August 2006)

6. Save the Belleview Biltmore Hotel: “The White Queen of the Gulf”. The owners of this historic landmark hotel in Bellaire, Florida have applied for a permit to raze all the buildings on this resort property and are planning to demolish seven buildings totaling 440,000 square feet including the removal of resort pools and tennis courts.

The hotel was built in 1897 by Henry Bradley Plant, the prominent railroad, steamboat, express mail and hotel developer (the FedEx/UPS man of his time). The Belleview Hotel at Bellaire opened with 145 rooms, Georgia-pine construction, swiss-style design, golf course and race track. The Belleview became a retreat for the wealthy whose private railroad cars were often parked at the railroad siding built to the south of the hotel. Guests at the Belleview enjoyed the amenities of regal rustic living; yachting and sailing on Clearwater Bay; horseback riding, golfing, tennis, skeet shooting and bicycling.

In 1920, the hotel was acquired by John McEntee Bowman, international sportsman and owner of the Biltmore chain of hotels (Los Angeles, New York, Atlanta, Delaware, Santa Barbara, Havana, Providence).

Since the hotel is listed on the National Register of Historic Places it would be a tragedy if the owners (Di Bartolo and Urdang) ignored the one-of-a-kind history and tore down this historic hotel.

This article was found at:
http://www.hotel-online.com/News/PR2006_3rd/Aug06_STurkel.html

Friday, August 18, 2006

The Friday Editor's Column

by Marc Simard

Unbelievably ( well at least to me) a new academic year will soon be upon us. Here at the NSCC, faculty return to the office on Monday, August 28th with the students arriving on the following Tuesday (September 5th).

I have often thought that for most of us, at leastparents and children , September is the real New Year. While we don't stay up late at night ( Ok, I confess I do the night before classes as I am always exciting to start afresh), blast off fire works and drink inexpensive champagne it is a time for new goals, that plan to do better this year, a time where we in the academic world promise to do better, to improve, to make a difference in our world.

So my new year's resolution this year is to provide the readers of our little blog an article written by NSCC staff or industry each Friday. I was speaking to an alumnae yesterday who reminded me that the blog is useful as who has the time to do all the reading to find articles of interest to industry. So I promise not to loose sight of that !

I would sincerely invite yout to set up a dialogue , a discussion of articles that resonate with you or perhaps you disagree with mildly or strongly. Just click on the comment icon and write away. We would really like student industry interaction and think this is a real time (or nearly) way of doing that.

Don't hesitate to email me ( marc.simard@nscc.ca) with comments or story suggestions or even rants of your own that I could add on a Friday Afternoon.

I read some blogs more regularily than others and would like to share with you a portion of my regular "Tom Peters Times". I have been a big fan ever since I first ran across his search for excellence("Search for Excellence"). I encourage you to read his blog (There is a link just to the right in the links section) it still to this day is a "blinding flash of the obvious". It startles me with insight and some time just damn annoys me. At any rate this article from this weeks Times to perhap wet your interest.

Tom Peters Times! August 2006

Tom's Necessity for Boldness
Five Bold Objectives In an Office Solutions article, Tom rants: I am an avowed incrementalist. Try, test, and experiment are among my favorite words. I still fervently believe that a pragmatic, incrementalist approach to progress is sound. But I also believe the visions to which we aspire must be grand ones. Not so much because inspiring visions are superb motivators, which they are, but because we must markedly pick up the pace of change in our businesses. If we don't, we face the prospect of a permanently reduced standard of living. Bold Objective No. 1: Speed of innovation Whether retailer, banker, or science-based company, reduce your product development cycle time--this year--by 50 percent. If we are to master the new competitive environment, shortening the product development cycle is imperative in every industry. Bold Objective No. 2: Premium products Through service, quality, and enhanced innovation, shift your product or service portfolio to differentiated, higher price, and higher value-added plateaus immediately. The specialty steel, specialty retail, specialty chemical, and specialty forest product companies outperform the diversified and generalist members of their industries by 50 percent or more. Bold Objective No. 3: People and organization Reduce the number of layers of management at any operating activity to two. Pare corporate staff by 80 percent; eliminate all first-line supervision jobs; get 100 percent of the people on the payroll into a profit-sharing program. Bold Objective No. 4: Paperwork reduction Reduce the paperwork and procedures in every operation by half. Bold Objective No. 5: Time and attention This year, devote fully half of your time to the single strategic priority that is most vital for you to achieve lasting distinction in your markets. Visit the customers--visit the stores! Any of these five goals is imposing, especially for an old or large firm. Yet, I strongly believe these or like objectives are essential to the survival of most firms, whether they are high- or low-tech, service or manufacturing. Originally published in Office Solutions, Volume 20, Issue 5, pp. 44-45

You can subscribe to Tom Peter's Times by going to:
Subscribe at http://www.tompeters.com/your_world/join_the_fray/

Hotel Common Sense | “A Bakers Dozen” of Strategies for Hotel Directors of Housekeeping

By Dr. John Hogan, CHA MHS CHE

Top ten lists are often quoted or used to catch people’s attention, but this series has been expanded to be certain that no one is “short-changed.” The number thirteen has evolved into what is called “baker’s dozen”.

Following is A Bakers Dozen” of Strategies for Hotel Directors of Housekeeping

Learn to look at your hotel from an operational perspective as if you owned it. The most successful housekeepers are those who take ownership of their property. Directors of Housekeeping are critical to making the first impressions positive, whether it is in public space, the guest room or bathroom. Housekeeping has responsibility for corridors, pool and patio areas, management offices, storage and linen areas, the laundry and many related areas. Strong and successful housekeepers plan the work of the department effectively, using inventory control, setting standards and maintaining schedules.


Honor the idea that the hotel guest is your guest, as if in your own home. While this has some parallels to the number 1 above, Aleta’s experience demonstrated to her that it was the sense of pride and hosting that makes a huge difference in whether someone has a job or a career.

Particulars include:

  • Maintain your awareness of the property of the whole, even if it outside of your particular direct area of responsibility. This includes parking areas, public areas, access points to the hotel and the all important curb appeal.
  • Work with the other property managers (as opposed to “hiding” in the office) because it takes the whole team to create a great experience for guests.
  • Effective directors of housekeeping show their pride by offering to assist senior management in other areas of discussion, even in some cases in the sales effort as appropriate. Remember, EVRYONE SELLS should be a mantra for success and housekeepers regularly come in contact with vendors and others who need hotel services.

Know about the condition of the property from first-hand experience. Personally and regularly inspect every type of accommodation in your hotel. This does NOT mean personally inspecting EVERY ROOM DAILY, but with some kind of rotation and scheduling. Being aware of changes in the hotel can also help management to be better aware of potential problems. Aleta said she “always imagined that somewhere in the hotel there was a dirty washcloth hanging on the back of a bathroom door hook or over a shower curtain rod. . . and she didn't want someone else to find it first.”

When recruiting people, pay attention to the “human” resource role: balance “high touch” and “high tech”. Recruit and select people wisely. Encourage your General Manager to pay competitively or better and lead in incentives. As Director of Housekeeping , recognize your team regularly with “thank you’s “and expressions of appreciation. Retain the champions by whatever it takes to keep them. Give them the training to succeed and then share in their successes with incentives and the chance to be part of a very cohesive and proud team..

Maintain and increase training. This is crucial in housekeeping. The development of the staff to the point where room keepers can be completely trusted to finish their jobs with “pizzazz” because they take pride/ownership in their rooms should be a goal for everyone. There is no excuse today for inadequately prepared or untrained housekeeping and laundry staff.

  • There is enormous training support available at very low cost online from the major brands and a wealth of support from CDs, books, newsletters and the internet. When running high occupancy, many managers claim to be “too busy” to train. When occupancy is flat or declining, cutting ongoing training to “save money” will really cost more as it will drive the good staff to consider leaving and the loyal customers to the competition because it appears you don’t care. Remember “the only thing worse than an untrained staff that leaves, is an untrained staff that stays to service your customers.”
  • Today’s successful and confident director of housekeeping will also embrace technology in training. Use of computers and training DVDs should be the norm.
  • Recognize and address the language challenge if appropriate to your market, even to the point of getting your hotel to pay for your learning of a new language to improve your effectiveness.

Share the professional expectations provided to you from ownership and or management clearly with all members of the staff. Newcomers to the industry sometimes imagine huge profits when they compare their hourly wage with the rooms’ rates paid by guests. Those of us who have been in the industry for more than just a few years realize that profits and losses go in cycles, and that it is important to share the realities of the cost of doing business at all levels. All staff should understand the total costs of ownership, including support staff such as engineering and sales, franchise or royalty fees, management company fees, the concepts of debt service and more. Make those expectations understood, explain the value and rationale to all staff and be certain these expectations can be measured fairly.


Hold regular one-on-one sessions with all direct reports in this department, including the laundry. These sessions should not be formal “reviews” but guide posts to reinforce positive actions or to correct a potentially dangerous course of action. When I first started doing these more than 20 years ago, the 1st time was awkward because people were “gun-shy” or afraid of hidden agendas. When it becomes apparent that these are honest dialogues, they sessions evolved into the opportunities to clear the air on potential problems.

Constantly assess time management. The 80-20 rule of priorities and value remains true much of the time. 80% of our problems often come from 20% of the rooms or staff. Research why things go smoothly and replicate that success. The question needs to be not are we doing things “right”, but are we doing the “right” things correctly?


Work with the front office management to capitalize on forecasts for long term efficiencies. Operating budgets are usually approved by the ownership or Management Company in a remote location and the housekeeping budget is tied to occupancy. Working with the front office however, allows effective directors of housekeeping to plan for deep cleaning in slower periods or to replace capital items on a schedule that does not interfere with periods of high activity.


Master the art of inventory controls. There are many inventories to attend to, including:

Linens and appropriate par levels

  • F&B materials
  • Pillows and furniture Uniforms
  • Cleaning equipment
  • Cleaning Supplies
  • Guest Supplies
  • Guest Loan items

Properly addressing the ordering, receipt, use, storage and security of these (and other) items is a financial necessity.


Study, embrace and insist on proper safety and security. Room and laundry attendants regularly deal with an array of chemicals. While most may be initially in the proper containers and concentrations, care must be maintained to continue to use them accurately and safely.There should be training given and follow up checklists provided for linen rooms, housekeeping carts, using equipment and the laundry.Government regulations, such as OSHA or state/provincial guidelines, must be posited and followed. Specific security practices should be considered, reviewed, discussed and constantly monitored. Housekeeping staff may be working in isolated areas and should be trained in the best ways to provide cleaning services safely. Reasonable Care should be identified and practiced.


Embrace the Brand Standards and Suppliers. A majority of hotels in the US today are part of a brand, and the trend is growing globally. The Director of Housekeeping should learn what the brand’s requirements and expectations on housekeeping services and programs.

  • Have you, as the Director of Housekeeping, explained to your staff your brand’s expectations and standards on housekeeping services ?
  • Do you take the time to work with your GM to understand the brand’s supply programs and preferred suppliers that likely have great pricing and delivery options? If there is a better local price or distribution, have you made certain those products effectively do the job?

A WORD TO INDEPENDENTS - if your hotel is not part of a brand, your local hotel association will likely know of qualified programs or products


Know your budgets, costs and results. Housekeeping usually employs the largest number of people in a hotel. The outstanding housekeeping managers are those who are able to often obtain higher compensation for their staff by effectively reducing turnover and managing their total budgets while exceeding guest expectations.


Budgets need not be a mystery and most caring general managers should be pleased to share that portion of their operating budgets because it helps everyone.


Think Tank

Questions of the day

These questions are offered to stimulate discussion about the way we do business. There is not necessarily only one “correct” answer – the reason for this section of the column is to promote an awareness of how we might all improve our operations. Consider using these or similar questions at staff meetings encourage your team to THINK!


Topic


“A Bakers Dozen” of Strategies for Hotel Directors of Housekeeping

  1. How do you recruit for new staff? Is there a plan or do you accept whoever walks in?
  2. Do you schedule your long term projects with the Front Office Manager? How are your projects planned ? When? By whom?
  3. When was the last time you had an open forum with your laundry crew and listened to their suggestion on how to deal with problems?
  4. How much of your budget do you prepare? How often do you compare the results of the income statement with the budget?

This article found at:
http://www.hospitalitynet.org/news/154000392/4028519.html

Thursday, August 17, 2006

The Farm-to-Table Fetish

Restaurants that grow their own food have the right idea. But can it work for anyone but a Rockefeller?

By JOHN CLOUD

I was standing naked in a linen closet at the old Rockefeller farm outside New York City when I began to wonder if I had gone too far for a meal. John Rockefeller Sr. probably wouldn’t think so: in the late 19th and early 20th centuries, he had assembled some 4,000 acres in this part of New York State, some of the most verdant land in the Hudson River valley. It’s a lovely spot that brims with history — Sleepy Hollow, N.Y., is nearby — and as good as any place to be naked in a linen closet.

Actually, I wasn’t naked: I was wearing socks. But I was wringing out my rain-soaked boxer briefs and nervously eying the door; just beyond toiled young women from the kitchens, helping prepare dinner. On the theory that I should make some noise so no one would open the door, I began to sing, but for some reason all I could think of was “Mary Had a Little Lamb.” At which point the door opened onto this view — a nearly nude 35-year-old man holding his wet underwear. Before I caught a glimpse of the person, she — I’m not sure why, but I think it was a she — quickly slammed the door. To whoever you were, I deeply apologize.

What had led me here? Over the years, the Rockefellers have given away much of their country estate; now 80 acres of it are devoted to the Stone Barns Center for Food and Agriculture, which I had come to visit. The old milk barn is the center’s eat-like-a-Rockefeller, hundred-dollar-plus-per-person restaurant, Blue Hill at Stone Barns. That’s where I had come to eat, which is ultimately why I was in that closet.

Chef Dan Barber and I had been caught in a thunderstorm as he gave me a preprandial tour of the center, which includes not only the eponymous barns (they now house the restaurant, the education center, an espresso café and a vegetable market) but also a working farm, which grows much of the food for the restaurant and its sister Blue Hill outpost in Manhattan. The center cost David Rockefeller — the last of John Sr.’s six grandchildren, he is now 91 — about $30 million.

Rockefeller built the place as a tribute to his wife, Peggy, who — before her death in 1996 — had helped found the American Farmland Trust. The center is only three years old, but already it has become a model for how a farm can directly supply a restaurant, which in turn helps fund educational programs for anyone who wants to learn more about where their food comes from.
(This should include you, by the way, since it seems highly uncontroversial — like something Mother might say — that you would want to know where a bit of organic matter came from before you put it into your mouth and swallow. Most of us don’t, of course, which isn’t a new problem: in the Dark Ages, as M.F.K. Fisher wrote, food was “only a necessity” — “like sleep and sweating.” So it is for most of us.)

Restoring the link between the farm and the table is an ambition shared by a growing number of restaurants. That’s also not new: it was the driving idea behind the fresh-above-all restaurants that launched the U.S. food revolution in the 1970s and ’80s. But most of those pioneering restaurants — led by chef Alice Waters’ Chez Panisse — were in California, where anything can grow and where it would be silly not to supply a restaurant from a nearby farm.

Today the farm-to-table ideal has spread across the nation. In its July issue, Gourmet magazine ran a feature on what it cleverly called “plow-to-plate” restaurants from Milwaukee to Maine. These aren’t just places that source their ingredients from local farmers, as Waters and many others have urged for years. Rather, these restaurateurs actually operate farms themselves. For instance, Dan Kary, who owns Cinque Terre in Portland, Maine, farms two and a half acres that provide about 40% of the restaurant’s vegetables. On the day I spoke to him a few weeks ago, he had brought in Swiss chard, cherries, scallions and mint. This produce hadn’t suffered a ride from California or South America, like most of the vegetables you ordinarily eat. “I pick the Swiss chard and put it in the car. They wash it off in the kitchen, and then we eat it. I can’t tell you the difference that makes,” Kary told me.

But this isn’t a restaurant model for the faint of heart — Kary is often working his land after dark, by his tractor’s headlights — and I wondered if the farm-to-table concept could work for any but the most elite places.

One of the core purposes of the Stone Barns Center is to convince restaurateurs that they can get more of their products from local farms (whether they own them or not). More ambitiously, the center also hopes to convince farmers who now sell to big food processors or Wal-Marts that they can, instead, grow most of what a local restaurant needs — not just vegetables but meat, too — while improving their soil and making money. But how?

When the storm was still just a threatening cloud, chef Barber — who is also the center's creative director — took me down from Stone Barns' headquarters to its 23,000-sq. ft. greenhouse. Wait a second: a greenhouse? Isn't that a cop-out? What about farm-to-table?
“It's a cop-out to have a greenhouse if you're growing, say, tomatoes and mangoes here in Westchester County in the middle of winter, because you're pumping fossil fuel in to heat your greenhouse so you can do it,” Barber told me. “But we're not doing that … We're pumping a little bit of fossil fuel in, but we're growing for the most part hearty winter greens, root vegetables and salad greens.”

This was Lesson 1: Grow what you can grow. Don't overburden your soil with petroleum-based fertilizers so you can yield copious bushels of corn that will be factory-processed into syrup for soft drinks.

But it was also Lesson 2: Make money. Stone Barns devotes more than half the space in the greenhouse to salad greens not only because they will flourish there without the use of chemicals but also because they draw a good price in a health-conscious place like Westchester County. (Despite the close links, Barber insists that the Stone Barns farm sells its produce to his Blue Hill restaurants at fair-market value. The farm also sells to retail customers at a small but busy on-site market.)

Barber, 36, is a wiry guy, a talker, a fuzzy-haired and friendly type. He pretty much always wears chef's whites, but he is most passionate about farms; he grew up in New York City but worked summers at his family's farm in Massachusetts. (Full circle: that farm is named Blue Hill.)

He is a bit of a dreamer, and his dreams have been fueled by a Rockefeller-size budget, but Barber is no purist. Stone Barns is an organic farm, but Blue Hill doesn't serve only organic food. The fruit, for instance, is almost all grown with chemical inputs. Organic fruit is available from California — which doesn't suffer from the Hudson Valley's humidity — but Barber prefers to buy locally. That's partly because the fruit tastes better without being trucked across the continent and partly because Barber wants to encourage non-industrial, regional agriculture. That means he lives with some pesticide residue.

Other compromises are made with the farm's livestock. Stone Barns is raising roughly 450 turkeys this season, and most of them are Broad-Breasted Whites, the conventional breed you can buy in a regular grocery store. The Whites are distinguished by their genetically huge breasts and — as a consequence — their inability to have sex with one another. (Virtually every turkey you have ever eaten could not copulate without human aid.) These turkeys are a freak of human engineering, so what are they doing at an idyll like Stone Barns? Ditto the Cornish/Rock Cross chickens, a quick-growing, large-breasted breed used by the massive Perdues of the world?

“The answer is, in part, the technology is not that bad,” says Barber. “Perdue may be evil incarnate, but they have bred a chicken that is goddamn profitable. And easy.”
The difference at Stone Barns is that the chickens — and the turkeys, and the pigs, and the lambs, and the calves — eat the farm's grass rather than fattier, less healthy grain feed purchased from a supplier. The grass is carefully maintained by rotating the animals on it — veal calves eat the tastiest grass and drop their manure on the remainder. Chickens then come in and clean the calf manure by foraging in it; they also eat some of the less desirable grass. Chickens leave their own manure, which helps the grass rejuvenate. Unlike animals raised in feedlots and pens, Stone Barns' animals oxygenate their muscles with all their ranging and grass-eating, and thereby develop more sapid meat. They also keep the grass healthy — and ready for the next season.

This is Lesson 3, a point that writer Michael Pollan makes in his influential book The Omnivore's Dilemma, which was published earlier this year: to produce the most flavorful meat in the most sustainable way, livestock farmers may need to think of themselves instead as grass farmers. “When you manage the grass incorrectly, you have to supplement, whether it's antibiotics to keep [the animals] healthy or grain to fatten them up,” Barber told me as the rain began to fall. “And the reason that the industrial system looks at [grass-farming] as a crazy system is that it takes work. It takes intensive management. Whereas instead of feeding a flock of lambs on grass that has to be just right, you just stick them in a barn and you feed them grain. And they get fatter twice as quick.”

Barber is a bit obsessive; he didn't stop his tour when the rain began to fall. I didn't really mind getting wet — it had been a hot day, and I was reminded of summers as a kid. But later, as I donned some of Barber's dry clothes, I realized I wasn't entirely convinced that Stone Barns' complexly symbiotic, intensely managed system could work on a large scale. Not because it would necessarily require a Rockefeller to fund it — as Pollan points out, there are other “grass farmers” around the country who are succeeding with the help of proselytizing websites like eatwild.com. But not every farm will have a Dan Barber behind it — an obsessive, a guy who won't come in from the rain so he can show you the compost pile.

After the tour, Barber helped cook one the best meals of my life. My notes are filled with superlatives: "by far the best chicken I've ever eaten"; "tomatoes so fresh and tomato-y that they taste like a pure idea of tomato, not the thing itself"; "delish corn"; "a peach poached, perfumed so beautifully it seems to be solid, liquid, gas at once." After I paid, I took the train back to Manhattan. I was still wearing Barber's clothes and was now filled with his food. I'm not sure I was "impregnated with nutrient density," as he had promised, but I was heady with his agrarian dream.

This article found at:
http://www.time.com/time/nation/article/0,8599,1227016,00.html

Wednesday, August 16, 2006

Motivating the Heart

By Lizz Chambers, CHA/CHE


How many of us get up in the morning absolutely on-fire looking forward to another day at work? Yes, another glorious day at work cleaning up after our hotel guests-some of whom are not the personification of cleanliness and order.

Another beautiful day scrubbing toilets and feeling that the rest of the staff somehow looks at us differently because of the menial tasks we perform. Yes, those menial tasks that enable our hotels to fill rooms, make raving fans of our guests, promote repeat business, protect our hotel's assets and up that profit margin. If you define that as menial you and I are using different dictionaries.

First of all, our housekeepers and every member of our hotel staff still need more answers to this very important personal question: "What's in it for me?" This is not a cynical question. It is just another way of asking: "How much am I worth?" As an owner or manager we should all ask ourselves the same question? So why should we be surprised or, worse yet, offended when our associates ask this same question of us.

Our housekeepers play a major role in helping us to achieve our main objective-building a profitable business by satisfying our guests. We must always remember that our staff members have heart-felt needs, feelings and ideas. If we are going to be successful we must nurture those needs. If nurtured properly we can create an energy that can be used for our associates' good and for ours. How do we create an environment to nurture and then harness the energy it will ultimately produce? How do we motivate these crucial people who take care of our guests and our tangible assets day after day?

How do we motivate the Heart of the Hotel (our housekeepers)? I can give you a few suggestions. But your personal success will depend on your answers and on what you choose to implement:

1. Communicate Successful hotel managers and supervisors build good attitudes by keeping associates well informed of business affairs. Example: Meetings are one of the best forms of management-associate communication. Holding regular meetings is one of the best means of motivating your staff and building self-esteem. If you have a Spanish speaking staff and you are not fluent...hire an interpreter once a month, it is worth the expense. The housekeeping supervisor can write up the minutes and distribute them to all concerned. Hotel Executive Committee meetings are usually held for supervisors and department heads. Have you ever invited a room attendant, laundry worker, house person, or any other hotel associate to attend this meeting once a month or perhaps once each quarter? This can make each person on your staff feel important to the success of the hotel. The associate recognizes their value and sees how their efforts help create success.

2. Ask for and implement THEIR ideas. To feel very much a part of the hotel team, each associate must understand that they are free to contribute ideas. Management must encourage associate ideas and provide the necessary method for obtaining them. Suggestion boxes and brainstorming sessions are a couple of possibilities. As manager, you must carefully consider all ideas, and if adopted reward the contributor. If not adopted, you must give a word of explanation and appreciation. Example: Suppose you need a method for folding the new 'massive' bed linen supply so it can not only be stored in the supply room, it can fit properly on a housekeeping cart that has not changed size since the 50's. (Many hotels are facing this challenge with Marriott, Holiday Inn Express and several other franchises changing the bed linen requirements). Ask the people who work with this dilemma everyday. You will find that not only have you instilled in their minds an appreciation for your thoughtfulness in seeking their ideas about the problem...I will wager that their ideas may be much more user friendly than yours because you do not work with this challenge on a daily basis.

3. Show that you care Each morning take a walk back to the housekeeping department and talk to the staff as they prepare for work. (And to the kitchen, front desk, maintenance etc.)Another excellent way to create motivation is a personal meeting over lunch or breakfast with each associate. Example: Managers should find time at least once each year or with a smaller staff once a quarter/month to sit down in private with each associate over breakfast or lunch. (Not just housekeeping) In this setting you can discuss both business and personal matters in a friendly manner. These talks smooth out problems and difficulties which may be blocking the motivation of an associate. The talks are also helpful to you as you may receive information which may not have come to you in any other way.

Since much personal motivation is derived from a competent and caring manager, your efforts to improve the quality of the housekeeper's working environment will reflect directly in higher motivation, achievement, and morale. One last suggestion: Please lose the term Maid ...it went out with the 60's.

This article found at:
http://www.hotelnewsresource.com/article21788.html