The Five C's of a Smart Analytics Budget

By Michele Walters Co-Founder, Origin World Labs | December 16, 2012

It is hard to argue with the claim that Analytics is the hottest buzzword in business today. More specifically, the impact of Big Data is now a global topic of conversation in industry, government, and education. In the hospitality industry, every function from RM to Marketing to F&B is becoming more data driven. Unfortunately, behind every technology bandwagon there are a plethora of unproven software startups cashing in on the unceasing pressure placed on managers to find a way to consistently outperform the competition or, at a minimum, beat last year's results. The smartest of these vendors are out in full force this time of year, with their flawless demos, in order to ensure inclusion in your budget for next year. Allow me to save you thousands or even hundreds of thousands of dollars. Analytics is not about software, it's about people. If you are serious about beginning the transformation to a data-driven hotel company, where decisions are based on fact rather than faith, you should first be spending your analytics dollars on brains and not on bytes. In 2013, make sure your analytics budget includes spending on the five C's of Culture, Collaboration, Communication, Critical Thinking and Cultivation.

Culture of Data

All successful analytics driven organizations have had to undergo a transformation from a culture where the HiPPO (Highest Paid Person's Opinion) guides all decisions, to one where everyone in the organization defers to data insights to illuminate the best course of action. This cultural shift will require all employees to be engaged and committed to a data centered management philosophy. That means new training, off-sites, presentations, and incentive programs that reward managers who dig deeper to understand problems before making decisions. Unfortunately, changing a company's culture does not happen overnight. For many, cultural change becomes an indefinite process which requires long-term commitment and ongoing investment. Companies that are not willing to make adequate investments in creating a culture of data typically find that their biggest analytics initiatives fall flat.

Collaboration

When you think analytics, you may picture a lone statistician in a room with a giant server, crunching through formulas that spit out perfect answers to complex questions. Similar to how the Jonah Hill character in the movie Moneyball sat in his little office analyzing player performance. Ironically, the most successful analytics driven companies work exactly the opposite way. They employ a collaborative effort among analytical, technology, creative, and operations people to create a fruitful data driven environment. Let's look at how working together is critical for the three basic steps of the analytics process.

All successful analytics projects start off with good data. Easier said than done. Many companies have reported spending millions trying to clean their data only to discover that, in hindsight, it was not worth it. Caveat emptor - you don't need clean data, you just need "clean enough" or "cleaner" data. Just clean enough to be consumable without running the risk of contaminating your decisions. Generally, you can leapfrog a lot of useless data cleansing if you can harvest the practical knowledge of those who input it and use it. This means understanding job functions and operations protocols in order to identify the dynamics that contribute to inaccurate or missing data. It also means getting everyone to re-consider why some data is collected in the first place. If you dig deep enough, you will find data that is collected for no other reason than because it has always been collected.

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Coming up in April 2019...

Guest Service: A Culture of YES

In a recent global consumers report, 97% of the participants said that customer service is a major factor in their loyalty to a brand, and 76% said they view customer service as the true test of how much a company values them. And since there is no industry more reliant on customer satisfaction than the hotel industry, managers must be unrelenting in their determination to hire, train and empower the very best people, and to create a culture of exceptional customer service within their organization. Of course, this begins with hiring the right people. There are people who are naturally service-oriented; people who are warm, empathetic, enthusiastic, pleasant, thoughtful and optimistic; people who take pride in their ability to solve problems for the hotel guests they are serving. Then, those same employees must be empowered to solve problems using their own judgment, without having to track down a manager to do it. This is how seamless problem solving and conflict resolution are achieved in guest service. This willingness to empower employees is part of creating a Culture of Yes within an organization.  The goal is to create an environment in which everyone is striving to say “Yes”, rather than figuring out ways to say, “No”. It is essential that this attitude be instilled in all frontline, customer-facing, employees. Finally, in order to ensure that the hotel can generate a consistent level of performance across a wide variety of situations, management must also put in place well-defined systems and standards, and then educate their employees about them. Every employee must be aware of and responsible for every standard that applies in their department. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.