Automation and The Human Factor in the Hotel Industry: Leaders

AUTOMATION AND THE HUMAN FACTOR IN THE HOTEL INDUSTRY (3 of 3): LEADERS

This article is an excerpt from the book "HOTEL 4.0 - Artificial intelligence, robotics, big data, virtual reality, 5G and automation technologies for a new generation of smarter hotels". Contents:?1.0 Leadership; 2.0 Aspects for leading the transition to Hotel 4.0.

1.0 Leadership

We are living in changing times where the hospitality industry is facing numerous complex challenges. It is precisely in these times that leaders play the most important role.

Although a large part of the challenges we are facing is derived from technological development and its implications in our society, according to the survey?"CFO 3.0?—?Digital Transformation Beyond Financial Management"?conducted by Sage in 2019, only 16% of companies in the hospitality sector consider themselves to be at the forefront of technology adoption, and among the main barriers to the adoption of technology are the lack of skills and, consequently, the problems associated with the use of these new tools.

What is the general opinion on the risks of automation? According to Work Market's "Unpacking AI & Automation: Our 2020 In(Sight) Report", more than 50% of business leaders are interested in the possibilities offered by automation, at the same time, 47% of them see depersonalization as the most considerable risk from automation. At 40%, the second biggest risk would be job losses, and at 36% the inability of workers to adapt to the changes brought about by the automation process. At 34%, poor customer service is one of the main risks associated with automation.

While presenting significant opportunities for the hospitality industry, the introduction of automation, Artificial Intelligence, Big Data and collaborative robotics is not without risk. A clear vision of the future where humans understand the forces of change shaping the hospitality sector is critical when it comes to decision-making. Therefore, organizations need to seize the opportunity and use these forces to secure their future in the industry.

2.0 Aspects for leading the transition to Hotel 4.0

New needs also require a new set of knowledge, specific skills and competencies that are increasingly heterogeneous and complex, from digitalization and automation to the management of multicultural teams. We are working in exciting times of transformation, but which also require a paradigm shift in the leadership of our organizations.

What do industry professionals think? According to a study conducted in collaboration between Les Roches Global Hospitality Education and PSD Group, where they interviewed more than 135 senior hospitality executives, they recognized the need for disruptive thinking by future hospitality leaders to meet the challenges ahead.?In the same study, more than 80% of respondents recognized the growing relevance of innovation in the industry. Also evident in the same study was the importance of adopting a more transgressive innovative mindset than a transformationalist position.

There is an evolution in the competencies and talents of the leader who, together with innovative and creative thinking, will need more than ever to maintain high levels of service quality, and generate unique experiences for their guests. As the technological revolution advances, the future leader has to adapt and lead this technological change while praising the signature customer experience (CX).

What competencies will be key for new leaders? The study, carried out in collaboration between Les Roches Global Hospitality Education and PSD Group, provides a detailed list of the skills that will be decisive for the new leaders of the hotel industry. Meta competencies: emotional resilience and composure, self-management, initiative, time-management, ethical principles and integrity, flexibility and adaptability, and willingness and openness to learning new things. Social competencies: effective communication, cultural intelligence, diversity management, and people development. Cognitive competencies: strategic thinking, decision-making, creativity and innovation, critical and analytical thinking, and change management. Functional competencies: revenue management, knowledge and experience in the hotel sector, stakeholder management skills, and IT skills.

Therefore, we can describe the profile of the new leaders as people with a great capacity for observation, analysis and learning, as well as being innovative, creative, flexible and capable of adapting to the increasingly technological environment and leading change. Indeed, in this complex current scenario of volatility and uncertainty, the ability to adapt takes on a particular role.

More so now than ever, from a people management perspective, you need to lead teams where diversity will be the norm, understanding cultural differences, empathizing, communicating effectively and inspiring your employees and stakeholders.

Furthermore, the relevance of ethical aspects such as honesty and integrity is underlined, with leadership that, to be effective, cannot only be based on the?potestas?granted by the objective position in the company organization chart, but by the?auctoritas, which is recognized by personal qualities and professional capacities.

The new leaders will have to ensure efficiency and profitability while playing the difficult balancing act between technological evolution and customers who are increasingly searching for unique and personalized experiences. On the one hand, these will require a strong double profile, i.e., technical and innovative, and on the other, emotional, and empathic. The right combination of these two polarities of skills and capabilities will be the key to success.

*** This article is an extract from the book "HOTEL 4.0?- Artificial intelligence, robotics, big data, virtual reality, 5G and automation technologies for a new generation of smarter hotels". You can consult the book or contact me personally for more information on the subject or the sources I have used.