Archive for the ‘measurable accountabilities’ Category

Freedom and Responsibility within a Framework

Monday, April 27th, 2015

Throughout my career I have struggled to balance the competing needs for entrepreneurial thinking, innovation, and initiative and the necessities of organization, structure, consistency, and control.  How does one create and sustain a nimble organization that can quickly respond to new technologies, changing member wants and desires, and the competition of the marketplace while maintaining an efficient operation and conscientiously meeting regulatory requirements?

No thinking business person wants to saddle their operation with a bureaucratic mindset, yet efficient operations need systems to function properly and avoid risk, liability, and regulatory problems.  The very word “bureaucracy” carries the negative connotation of inefficiency and stultifying processes where crossing the t’s and dotting the i’s become an organization’s reason for being.

In examining this never ending challenge for businesses, Jim Collins and his research team at Stanford University found that the good to great companies they examined gave people the freedom to do whatever was necessary to succeed within a highly developed system or framework.  Then their people were held strictly accountable for their results.

The analogy that he gave was a commercial airline pilot who works within rigid air traffic control and safety systems on the ground and in the air, but who has the ultimate responsibility for success – that is, the safe delivery of plane and passengers from location to location.  That singular responsibility allows a pilot, at his or her discretion, to remove unruly passengers, abort landings, fly to alternate airports, and take any other action deemed necessary for the safety of the flight.

But essential to bestowing such freedom and responsibility is the necessity of defining the system and clearly identifying constraints.  In the airline industry the Federal Aviation Administration establishes all standards, policies, and procedures for both commercial and private pilots and ensures their ongoing understanding of the system through licensure, certifications, simulator and cockpit training, as well as continual flight and safety bulletins.  To quote from the book:

“The good to great companies build a consistent system with clear constraints, but they also gave people the freedom and responsibility within the framework of that system.  They hired self-disciplined people who didn’t need to be managed, and then managed the system, not the people.”

As a club manager at any level of the organization, you cannot do it all yourself.  Holding the reins tightly creates a bottleneck where all decisions have to come through you, thereby stifling the initiative and creativity of your subordinates.  It also puts a tremendous burden on you to perform, requires you to be on property at all hours, and leads to burnout.

The only way to be truly successful in any complex enterprise is to empower those under you and give them the freedom and responsibility to succeed in their portion of the operation.  But to do this successfully you need to fully develop the framework for their empowerment and a means to hold them accountable.  This means you have to have well-defined organizational values and written standards, policies, and procedures.  Lastly, you need measurable accountabilities for performance.

With these in place you have started on the path to greatness in your enterprise, but it’s only the start – Collins offers much more proven guidance for those willing to invest the time in this well-researched and written, as well as entertaining, book.

The book is Good to Great – Why Some Companies Make the Leap . . . and Others Don’t, Harper Business, New York, NY, 2001.

Thanks and have a great day!

Ed Rehkopf

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

Hospitality Resources International – Management Resources for Hospitality Operators!

 

The Hospitality Challenge

Monday, September 6th, 2010

I’ve learned a lot about the hospitality business since my first position as General Manager of an historic hotel in the late 70s.  In a variety of positions in hotels, resorts, and private clubs – in startups, turnarounds, and repositionings, I’ve learned a number of key lessons from my efforts to deliver high levels of service.  Here they are:

The customer is King.  The only perception of quality, service, and value is the customer’s.  Hospitality managers must learn as much as possible about their customers in order to meet their needs and wants – where they come from, why they come to your establishment, what are their expectations, what do they like or dislike about your property, what are their complaints, what would they like improved?

The hospitality business is detail and people-intensive.  It takes a lot of people doing all the right things everyday to deliver consistent, quality service.  Therefore:

  • Written standards, policies, and procedures ensure every employee knows what to do and how to do it; help develop specific training materials; and ensure consistency and continuity in the operation.
  • Formal training is a necessity.  Operational processes cannot be left to oral history or chance.
  • Continuous process improvement is a must.  We can never rest on yesterday’s accomplishments.
  • Thorough benchmarking of all areas of the operation ensures that we know what is going on and what our customers are telling us by their spending habits.

“The soft stuff is always harder than the hard stuff.”

  • Consistent, property-wide leadership is a must.  Disparate and competing leadership styles confound the staff and sow divisions in the team.
  • Values and behaviors must be spelled out in detail and reinforced continually.
  • Excessive employee turnover is damaging to an organization in continuity, lost time, and cost.  Except in extreme cases our first impulse (especially in difficult labor markets) is not to fire, but to examine causes; improve processes, organization, disciplines, and training; and instruct, counsel, and coach employees.
  • Employees must be empowered to think and act in alignment with organization values, the property’s mission and vision, and carefully defined management guidelines.  “Without empowerment an organization will never be a service leader.”  Why?  Because there is far more to do and monitor on a daily basis than any management team can possible handle.  Authority for service and service delivery must be pushed down to the lowest levels of the organization – where it takes place.

Work planning and ongoing performance review are essential to holding managers accountable for their performance and the performance of their departments or work teams.  Without accountability only the General Manager is accountable and he or she will fail or burnout trying to succeed.

Leadership is key at all levels of the organization:

  • To set an unimpeachable example for employees.
  • To uncover, analyze, and solve problems.
  • To thoroughly communicate standards, policies, procedures, information, and training.
  • To engage customers and staff continuously.

All of the foregoing requirements must be institutionalized so that the operation continues undisturbed in the face of any turnover and 80% of the operation functions routinely – allowing management to focus on strategic issues, planning, execution, problem-solving, and customer interface.

These lessons learned have led me to formulate a plan to create and deliver high levels of service.  This plan can be found in a white paper I’ve written entitled The Quest for Remarkable Service.

Thanks and have a great day!

Ed Rehkopf

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

Club Resources International – Management Resources for Clubs!

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Eight Steps to Performance Accountability

Monday, July 19th, 2010

The greatest failure in performance management in any enterprise is the failure to hold managers accountable for their performance.  Many clubs do a poor job in the area of accountability.  This failure is crippling to the long term health and viability of the club.  Here are eight steps to help measure performance and hold managers accountable:

  1. Work Plans.  Have each manager prepare an annual work plan spelling out goals, proposed accomplishments, and timelines for completion of each item.  It’s always a good idea to involve managers in preparing their own work plans though these must be based upon broad guidelines from the board and general manager.  While their buy-in is important to their commitment to their individual plans, ultimately plans must meet the needs and desires of the board and general manager.
  2. Budgets.  In order for managers of profit or cost centers to be held accountable for meeting budgets, they must participate in developing their own budgets.  An unrealistic budget will defeat a manager from the get-go, but “softball” budgets cannot be accepted either.  One of the best ways to budget is to use volume and average sale/hourly wage benchmarks to build the revenue and payroll parts of the budget.  Not only do historical metrics make for more accurate budgets, but analyzing these benchmarks on an ongoing basis makes for a better understanding of shortfalls in revenue or overages in payroll costs.
  3. Benchmarks.  Club departments must be benchmarked in detail – at a minimum revenues, cost of goods, payroll, and other operating expenses should be benchmarked monthly.  These and other benchmarks are the most objective measures for holding managers accountable.
  4. Tools to Beat Budget.  Use the Tools to Beat Budget program whereby all managers with bottom line responsibility track their revenues and/or expenses in real time, thereby exercising greater control over their budget and financial performance.  Properly maintaining the Tools to Beat Budget binder provides all the information necessary for in-depth monthly reviews of performance by the General Manager and other interested parties.
  5. Monthly Review Meetings.  Hold monthly meetings with individual department heads to review progress on annual plans, actual to budget performance, benchmarks, and efforts to correct operational and performance deficiencies.  These meetings permit ongoing review and course corrections or added emphasis as necessary.
  6. Routine Departmental Inspections.  Use routine inspections with a standardized checklist to inspect all club operating areas on an ongoing basis.  Such inspections should monitor and note cleanliness, order, maintenance, safety, security, and other signs of organized and efficient operations.  These inspections when standardized, scored, and benchmarked provide an ongoing measure of these basics of an operation.
  7. Interdepartmental Support Evaluations.  Since all departments of a club are interrelated and depend upon one another for peak performance, each department head should fill out standardized evaluations on interdepartmental support and cooperation.  As an example:  the accounting department will have a hard time meeting its requirements if operating departments do not submit coded invoices, payroll data, inventories, benchmarks, and other financial data in a timely fashion.  If department heads know that their performance in these areas is being monitored and rated, they will put greater emphasis in meeting these requirements.
  8. Performance Reviews.  Base periodic performance reviews for each manager on specific accomplishments and meeting well-defined performance measures.  Meaningful reviews are directly dependent upon the effort put into defining expectations, establishing specific work plans, and creating objective measures for accomplishment and performance.  While it takes some effort to set up a system of objective measures, the rewards for doing so are immense and well worth the effort.

Unless a General Manager does everything himself, he must rely on the efforts and performance of his subordinate managers.  But without measurable accountabilities he has no real means to drive his agenda, performance, and other initiatives to improve operations.  When department heads aren’t held accountable, only the General Manager will be.

Thanks and have a great day!

Ed Rehkopf

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

Club Resources International – Management Resources for Clubs!

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Creating Measurable Accountabilities

Monday, February 15th, 2010

I have spent a good deal of time over the course of a career trying to establish a basis for meaningful work plans with measurable accountabilities for club department heads.  Looking back on a long career, I would reluctantly admit that I spent too much time doing and not enough time planning and appropriately delegating.

Sure, work planning takes time, particularly if you put enough effort into it to be of value . . . and finding measurable accountabilities for department head performance seems an elusive goal.  Now, though, on the tail end of my career, I have finally found the time to give the whole matter some serious thought.

As far as work planning goes, what I expect from subordinate managers is to meet goals and budgets and to help measure their progress toward specific objectives.  To do this I find it important to establish monthly reviews of financial performance, as well as timelines and milestones toward non-monetary goals, such as developing departmental operation plans and effective training programs.

On the other side of the coin, measurable accountabilities have continued to be a challenge.  Over the years I’ve developed and deployed several versions of managers’ performance evaluation criteria.  Each ultimately proved unsatisfactory though they included a number of meaningful and worthwhile objectives such as “builds teamwork and morale,” “directs work effectively,” and “follows through and implements well.”  As good as these criteria may look on paper; they turned out to be practically meaningless as I attempted to do reviews because I had no hard evidence or objective means of measuring them.  Once again my reviews degenerated to my “gut feel” or “overall sense of things.”  Clearly measurable accountabilities continued to prove elusive.

In recent months I’ve taken another stab at finding performance criteria for which I could establish specific measurable goals.  Here’s what I’ve come up with.

On the big picture scale, I’ve broken down performance expectations for department heads into 6 major categories — leadership, management, training, performance, compliance, and member satisfaction.  These can be weighted based upon changing emphases, but must equal 100%.  Within each major category are sub-categories that can in some way be measured.  These are also weighted, again totaling 100%.  The following chart lays out the major and sub- categories, as well as the means to evaluate and who is responsible for creating the measurements.

measurable-accountabilities-3

This whole process presupposes that the club has already instituted certain disciplines such as holding monthly reviews of financials and departmental plans with each department head; measurements such as departmental and personnel benchmarks; and both member and employee surveys.

I’m sure that there may be other worthwhile things to measure and for which subordinates should be responsible, and I’m equally sure that there will be some challenges in implementing such a system.  But ultimately I believe the benefits of holding subordinate managers strictly accountable for their performance outweighs any and all challenges encountered.

Thanks and have a great day!

Ed Rehkopf

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

Club Resources International – Management Resources for Clubs!

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