Day 3:Breaking the Silence – Improving Communication

Problem:

When I first walked into a client in Voi, the lack of communication was evident in every corner of the operation. The resort owner, who was also the director, would give instructions to the staff, but then his friends and relatives—who had personal connections to the owner—would also give their own instructions to staff, creating confusion and chaos. This miscommunication caused serious problems in the day-to-day running of the resort.

The manager, who should have been the primary point of contact, had a different approach to managing, but often couldn’t enforce his authority because staff were often being hired through personal connections. The family and friends network led to a disjointed system where staff did not listen to the manager's instructions. Without clear communication, responsibilities became blurred, and this lack of structure led to inefficiencies in every department.

To make matters worse, the resort had a faulty payment system. There were three different tills for different sections—pool, rooms, and the restaurant—but payments were often being routed to a separate till off-premises, leading to massive discrepancies in the resort's finances. The owner kept injecting personal funds to keep the business running, including buying stock and paying salaries, but with no clear understanding of the resort’s financial health, the business was sinking into debt, and there were no sales to justify the expenditures. Staff, on the other hand, were being paid in cash under the table, and many had no clear understanding of their actual earnings or where the money was coming from.

Solution:

The first step I took was to conduct a comprehensive communication audit within the resort. I interviewed key players—staff, the manager, and even the owner—to understand how information was being shared and where the breakdowns were occurring. It quickly became clear that there was no centralized communication system, and the owner’s family and friends were unintentionally undermining the manager’s authority.

To address this, I implemented a few key changes:

1. Clear Communication Channels: I helped set up a clear communication hierarchy where only the manager and designated team leaders could issue instructions to the staff. This eliminated the issue of conflicting directives from the owner's relatives and friends, ensuring that everyone knew who to report to and who had the final say in operational decisions.
2. Standard Operating Procedures (SOPs): I worked with the team to develop detailed Standard Operating Procedures (SOPs) for each department, outlining the specific tasks and responsibilities of the staff. This created consistency in the way tasks were being handled, from guest check-ins to food service and housekeeping.
3. Financial Tracking and Payment System Overhaul: I immediately audited the resort's payment system. I found that the payments being processed outside the premises were causing the financial chaos. We implemented a single-point payment system, where all financial transactions were funneled into one central till, with real-time monitoring to track and manage cash flow effectively. This allowed the resort to have a better understanding of revenue and expenditures and reduced the owner’s reliance on personal funds to cover operational costs.
4. Employee Compensation Transparency: I introduced a more formal and transparent payroll system to ensure that staff were paid according to their work hours, rather than in cash under the table. This improved trust among the staff, as they were now aware of their rightful wages and no longer felt like they were being exploited.
5. Staff Training and Accountability: I conducted staff training on workplace etiquette, effective communication, and the importance of following chain-of-command instructions. I emphasized that everyone’s role was important and that the manager’s decisions should be respected.

Results:

• Within one month, the resort saw a 30% reduction in miscommunication incidents, as staff followed the new communication guidelines and SOPs.
• The financial chaos was brought under control, with a 25% increase in financial transparency. The new payment system gave the owner a clearer picture of where money was coming in and where it was going out.
• Sales started to pick up as guests noticed the improved service and streamlined operations, leading to positive reviews.
• Staff morale improved, and employee turnover dropped because they now had clear expectations and a transparent payroll system.
• Most importantly, the owner stopped using personal funds to pay staff and cover stock costs, as the resort's revenue began to align with its expenses.

Reflection: This experience taught me how important clear communication and systematic operations are to the success of any hospitality business. What seemed like a simple issue of miscommunication actually turned out to be the root cause of several operational challenges, including financial mismanagement and staff disengagement. By introducing clear structures, transparent processes, and proper financial tracking, the resort not only saved money but also started to operate efficiently, and more importantly, staff began to take ownership of their roles, resulting in a much healthier work environment.

As a result, the resort's profitability improved, and it was able to meet its financial goals without relying on the owner's personal funds. This transformation took a combination of good leadership, systematization, and a cultural shift within the team, and it all started with improving communication.

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