"Sometimes you need somebody to articulate from an outside point of view without judgment. And that's really, really important"

Had a fantastic, in-depth and extended conversation with David Brown , a Director of Horwath HTL , a global hotels, tourism and leisure consultancy.

One major part of David's work is working with hotel owners and developers on existing hotel assets and new projects, and providing advisory services to identify success factors to elevate performance and drive sustainable profitability.

I chatted with David not just about hotel asset management and hospitality trends, but also what it takes to keep staff, people management and its impact on financial performance, what leadership really asks of their leaders, and that it keeps coming down to good communication and developing employees so they can do their best.

HOTELS AND CULTURE

The hotel industry and more specifically, the major brands promote clearly defined cultures, values, and responsibilities for employee welfare with training and development programs geared toward building employee engagement, retention, and career development.

Historically, however, the hotel industry has a patchy investment record in its workforce. In an industry that relies on a large pool of casual positions and increasingly, outsourced roles, high employee turnover rates are the norm, creating an uncomfortable paradox despite committing expenditure on training programs, turnover rates remain stubbornly high. Managers may well ask, “Why bother?” The disruption caused by Covid-19 exacerbated the challenge with hospitality workers leaving the industry to pursue better-paying jobs with less arduous hours elsewhere.

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It can be challenging however the truism of “Why invest in training and development only to have employees leave?” is countered by the alternative, “What if we don’t and they stay?”

EFFECTIVE TRAINING BENEFITS REPUTATION

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it's an extremely valid point and one the industry has grappled with for years. Being mindful of the needs of employees today where six months in any one particular job may seem like a career lifetime, employers are faced with adapting to this new paradigm.

For instance, Gen Z is committed and engaged, but they're ambitious and on the lookout for the next opportunity, whether within the organisation or outside. So employers have to meet the challenge to embrace this ambition while tempering expectations by communicating a clear set of expectations. Not everyone exhibits the same level of ambition so I’m mindful of generalisations.

However, when an employee shows within a relatively short period of time that they've got the right aptitude and application, we say "OK, let's chat about your career".

THE EVOLVING LANDSCAPE OF PERFORMANCE APPRAISALS

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Well, the annual appraisal is generally a worthwhile activity to formally assess performance however, care is needed to avoid this becoming a box-ticking exercise because 'the manager just had to do it.' Managers have many competing priorities, and aside from looking after customers, employee care should be considered a priority. Providing formal and informal feedback is an ongoing process. Coaching, counseling, and offering praise should be communicated sincerely and given in real-time.

I know that failure to engage promptly risks eroding the relevance and meaning of the message being delivered. The feedback frequency cycle has shortened with managers tasked with adapting to the dynamic nature of the workplace and more specifically, to meet the expectations of their teams.

There's also the use of anonymised employee sentiment surveys. When they are used appropriately, they can elicit valuable feedback that measures outcomes against objectives to provide the business with a ‘health check’. These types of surveys encourage employees to share their thoughts and assessments of the workplace honestly. However, this can on occasion lead to venting personal issues without the right of reply.

Some may argue this is fair, “Don’t ask the question if you’re afraid of the answer!”. However, if the organisation has a mechanism to respond to grievances, these instances should hopefully be rare. From my experience taking the time to communicate the purpose and intent of the survey and to encourage feedback of a constructive nature is key.

And it's very important for managers, and I say this drawing on my 30+ years of experience, to understand that as you advance in your career, you are constantly learning.

You have to adjust yourself to your audience. You cannot afford to adopt a rigid style of management because the people around you will start falling away over time if you don’t evolve and adapt to the needs and expectations of your team.

"GENERATION Z" AND VOICING CONCERNS DIRECTLY TO MANAGERS

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Well, a curious and sometimes challenging aspect of Gen Z employees is that they are not afraid to speak up and discuss issues with management, which is a change from previous generations.

As hotel organisations become less hierarchical with an increased focus on teams, senior managers are much more accessible. Managers are far more approachable, and they are expected to have their ears to the ground to understand what's going on. If a front-line team member asks me a question or shares information that I didn't know, I would appreciate the interaction and be better informed. It’s a subtle yet powerful way of supporting the leadership.

Encouraging team members to communicate openly and directly compels managers to act. It is an interesting test of leadership to discern matters of importance that require a response. Should there be a failure to act others may form the view rightly or wrongly that their issues don’t matter and discourage speaking up in the future.

The bottom line is that you cannot ignore what's going on in your workplace.

I’ve always been aware that managers are being observed as much as they observe others.

INSIGHTS INTO STRATEGIC PEOPLE MANAGEMENT

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In my current role I don’t directly manage a hotel. However from my interactions with managers of hotels, I form a view of the capability and commitment of the teams they lead. I may share my observations with the owner or if appropriate with the hotel’s senior leadership team especially in situations where there is disconnect or correctable under-performance.

In some instances, these observations may already be apparent, but sometimes you just need somebody to articulate them from an outside point of view. And I make my comments without judgment. I feel that it’s very important to maintain trust and respect with the teams I work with.

Asking open-ended questions, "How could we be doing this differently? Could we look at other ways of achieving our goals?", encourages contribution to the discussion and it respects the skills and experience of others.

It’s easy and potentially quite lazy to arrive at the table with pre-formed opinions, which may convey to others that you have all the answers. The teams are accountable for their actions and therefore they must understand that in every respect they own their efforts. Conversations must be inclusive to encourage the input of others impacted by decisions being made.

Another important aspect of our work is sharing business insights with the owner to guide them through an understanding of variables, "If you do this, this is going to be the potential consequence on performance." And that's when we talk about strategy and working together to set a course of action to bring about positive change.

LEADERSHIP, DIRECTNESS AND GETTING THE BEST OUT OF PEOPLE

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I probably go back to my own direct hotel operations experience. Behaviours are really important in the workplace.

I'm an observer, I watch and listen and look at how people conduct themselves.

And oftentimes, it's an incredibly powerful way to form a view of someone’s interpersonal skills, communication style, and non-verbal cues, as well as their ability to think on their feet or conduct themselves when dealing with subordinates. This latter point is important. There's that dating analogy that goes “I could never be with someone who treats waiters badly”, right?

So if you observe unacceptable interpersonal practices in the workplace, these behaviours need to be addressed, and quickly. Treat people well and they will respond in kind. Do the opposite and the impact of low morale in the workplace will be felt by customers. The concept sounds simple but it does require managers to adjust their communication style to the person they are engaging with and according to the situation at hand.

And I think another important aspect of communication, especially among senior leaders, is the ability to be direct.

This applies in situations involving what we may refer to as having a ’difficult conversation’. Avoid being vague or dancing around the subject by addressing the issue directly and without unnecessary inflection. Sounds easy, but it’s not! It takes practice to balance the competing need to convey authority, an appropriate tone of voice, and empathy to ensure the recipient receives the message in a manner appropriate to the circumstance.

Some people are driven by achieving financial outcomes, which is great, however, I believe it is as much how we get there that matters. Sustained high performance is the goal, not the achievement of one-off targets. You can issue a mandate to deliver a specific result and the person in charge may hit the numbers, but ‘burn’ team members in the process. The consequence may be higher than acceptable levels of turnover, a loss of valuable IP, and customer churn, which will impact the organisation’s ability to sustain performance.

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It's many different things but it comes down to the individual. It's really about setting clear direction, and not being afraid to go in there and say, "Hey, look, I'm noticing a few things along the way that we need to deal with”. It’s important to adjust speed and direction along the way to ensure we end up at the destination together. The failure to acknowledge and remedy issues, as we go forward, oftentimes becomes substantial roadblocks down the track.

Feeling part of the team and buying into the vision is critical.

The goals cannot be achieved by relying on an individual to carry the weight of responsibility therefore the roles and expectations of each team member must be clearly understood and adapted as circumstances change.

LEADERSHIP AS SUPPORT

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Generally, the business leader doesn't perform the tasks that deliver the results. Empowering the leadership team to achieve their respective business unit goals that collectively feed into the total business performance outcomes requires a clear understanding of ‘what, how, and when’ - otherwise referred to as the goal, the strategy, and the processes employed to deliver the desired outcome. Good leaders articulate the business objectives in clear terms, and then work closely with their teams to achieve the targeted results.

Effective leadership is a reflection of the company and the values it aspires to achieve. It is no stretch to state that everyone wants to work for a good company. People know the companies that are recognised as great places to work as well as those that are not. Good companies attract good people.

It's the barbecue conversation when somebody asks, "Oh, where do you work?" and you reply, "I work for xxxx, I really enjoy my job, it's a great company." However, sometimes the response is "I work for xxxx, I have a terrible boss, I’m looking for a new job".

Leadership has a powerful influence on job satisfaction. Whether it's an employee’s direct boss or the business leader, an individual’s level of engagement is directly related to the relationship they have with their superiors.

RESPECT FOR EMPLOYEE'S CHALLENGES

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So assuming the manager’s response had a positive effect on the individual’s understanding or comfort level or authority to act, that contributed to an improvement in the employee's performance, then you'd expect it would be noticed by others.

So there's a type of cross-team conversation that occurs, and that may have a positive impact on others as well, because the employee may say, "I was really impressed with the way I was heard", or they would speak positively of that interaction. And that adds to positivity in the workplace and quite possibly an improvement in customer sentiment.

The potential flipside of that is if the employee didn't get the response hoped for from their manager, impacting their ability to perform their role, others would take notice. If a consequence of the exchange lead to a deterioration of customer experience, lowering morale, or creeping inefficiencies in the workplace, then that's something that needs to be addressed as a priority.

Setting a workplace context is very important. It sounds rather obvious to say this however, having a workplace etiquette with defined standards of communication and presentation reflects the brand’s hallmarks, market positioning, and respect for your customers.

The onboarding program for new employees proposes a commitment to the company’s, vision and values, however, it is the task of supervisors and managers to uphold standards in the workplace. Many employers place greater emphasis on a positive attitude and willingness to serve over prior industry experience, and more so now, with the industry facing a shallow talent pool.

Regardless of previous industry experiences, all frontline employees, whether working at the front desk, concierge, restaurants, bars, housekeeping, engineering, call centres, and events, perform their duties in customer-facing roles, and have the power to influence a customer’s experience. ?Managers have far less impact. Therefore, it is important, or rather is vital, to ensure front-line teams have the resources, training, and support necessary to deliver the brand promise.

HANDLING DIFFICULT CUSTOMERS

We should not accept the premise that customers are right all the time. We know this is not true. We’re human, we all make mistakes, and we (hopefully) learn from them. Similarly, customers make errors, misunderstand information, or occasionally seek unreasonable redress in response to the hotel’s oversights and errors.

How do you handle a difficult customer? I don’t have all the answers other than to say it all depends on the context. In today’s context, however, Gen Z is well travelled, experience-oriented, and likely to be regular customers in a service environment – think cafes, bars, restaurants, hotels, clubs, retail, travel, etc. This cohort has through repeated exposure to service environments, acquired a sense of what makes a great experience, which is entirely relatable to the hospitality industry.

Empathy is borne of experience, and you want your customer-facing team members to be well acquainted with the nature of the issue, an appreciation of the inconvenience caused, and the emotion attached to the event.

It is not unreasonable to expect Gen Z employees would be able to identify with the issues, convey acknowledgment of the error, and move to resolve in a manner that accepts responsibility and appropriately addresses the concerns of the customer. ?Having a trainable workforce that understands service concepts and the steps necessary to recover missteps, goes a long way toward meeting the challenge of difficult service encounters.

UNSEEN LEADERSHIP CHALLENGES

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Managers and business leaders are answerable to senior executives within their company. And the one person sitting at the top of an organisation is most likely answerable to owners, shareholders, lenders, and regulatory bodies. Everyone is accountable to someone, and for managers, the challenge is not only being a good leader but being seen to be an effective leader.

Time can be the enemy of all great intentions and keeping control of the amount of time devoted to people, processes, and customer engagement and the myriad of other distractions during a business day requires great personal discipline while maintaining a high degree of flexibility. Let’s face it, complaints don’t just come in between 1 PM to 2 PM every day!

Managers require feedback, mentorship, and guidance. They are often the last line of ‘defense’ and tasked with the most unpleasant encounters. Some managers require more support than others, which is by no means a sign of weakness.

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Well, I encourage leaders to share their challenges, seek advice, or simply discuss matters other than work. On the other hand, I tend to be wary of leaders who operate with a high degree of autonomy and low engagement with their superiors, as this may mask deficiencies yet to be discovered. And these deficiencies have a nasty habit of revealing themselves, often with unfortunate consequences. There is a saying, “If you don’t know, you don’t know”. Managers must make it their business to know what is going on, be curious, ask questions, and walk the business. Being visible and present in the business are valuable character traits. And being recognised for possessing a ‘personal touch’ is a powerful metaphor for being a hands-on leader.

Maintaining high visibility enables managers to be available to answer questions, make observations, share insights, receive feedback, and foster relationships in the workplace. This is the part that involves knowing what goes on in the business and being seen to be supporting their teams. Listening to how people communicate, hearing their challenges, getting to know employees by name, and offering sincere words of encouragement all have a positive impact on the workplace.

Another challenge facing leaders, as previously touched on, is to ensure new people coming into the business stay in the business. Cultivating a workplace that offers inclusivity, encouragement, and flexibility may to some seem idealistic, but that is today’s reality. Leaders must be prepared to adapt and respond to the changing characteristics of today’s workforce. Adjusting behaviours to appeal to changed workplace expectations without trading off values, personal accountability, or expectations, can be challenging. This does not mean remodelling the industry to suit a broader spectrum of employee, as we should still aim to attract people with the right qualities and attributes for the service industry.

SUMMARY

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Yes, actually. One of the failings or rather, attributes common among people in hospitality is the ability to size someone up quickly, oftentimes within the first 30 seconds of meeting them. Quick judgments may sometimes seem prejudicial however, there are occasions where it is necessary. An assessment of the mood and demeanour of the person, and of the situation itself, quickly inform how best to engage, especially in threatening or difficult situations. Sometimes it may be dealing with an unhappy customer or someone like me who likes to talk!

Managers are visible to everyone. People watch you and what you do. They observe how you stand or approach someone; they listen to how you speak; they watch your gestures; they may simply watch you walk through the lobby.

The manager’s behaviours can have a powerful impact on others, especially on aspiring leaders.

Skills, knowledge, and experience are important requisites for career advancement. However, what style of manager, personal qualities, and impact you wish to develop is largely an exercise of observing and modelling the behaviours of role models we see in the workplace. These observations promotes an understanding of how we carry ourselves, walk and speak with confidence, how to engage positively, and how to make people feel good about themselves.

Mirroring the behaviours of leaders you admire is a powerful exercise in personal development, frequently without the knowledge of the manager being observed! "I want to aspire to be that person, there's something about them I like."

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It was my pleasure.

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