Is the Hospitality Industry Practicing Resilient Thinking?

By Tim Trefzer Head of Environmental Sustainability, Georgia World Congress Center Authority | May 13, 2018

Over the last decade, the hospitality industry has taken advantage of the bottom-line savings stemming from simple environmental initiatives. Swapping halogen light bulbs for energy efficient LEDs; Exchanging water-heavy toilets and urinals for low-flow (or even waterless) alternatives; Instituting a recycling program resulting in lower waste hauling costs. These obvious cost-saving solutions to the overall budget weren't an integral part of the fabric of doing business but were merely actions taken for financial gain. And that is all of what sustainability was to the hospitality industry.

Today, however, sustainability in this industry has moved beyond low-hanging, easy-to-quantify, cost-saving actions. Once the financial benefits of these actions have been recognized, what's next? Guests and clients, especially highly influential millennials, are increasingly aware of a company's impact on environmental and social wellbeing. They expect businesses to address environmental and social causes in pursuit of a better society by incorporating this mindset in all aspects of business.

Serve a Social Purpose

Many of the world's most prominent organizations have taken notice of this new expectation. Look no further than to Larry Fink, founder and CEO of BlackRock, the largest asset manager in the world. In an open letter sent to CEOs earlier this year, Fink explained, "Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate." Notice he used the word "benefit" to describe how organizations need to be received by all stakeholders.

Sustainability, in its purest form, refers to the ability to be maintained at a certain rate or level. A benefit implies providing additional value. This is resilient thinking: not only the ability to sufficiently sustain but to produce a better condition than before.

Resiliency is about more than just a business, the environment, or a cause. Fink, again in his letter to business leaders, went on to state "…you must also understand the societal impact of your business as well as the ways that broad, structural trends – from slow wage growth to rising automation to climate change – affect your potential for growth." In other words, the health of our society will directly impact your bottom-line. This may or may not be true in the very near term, but as a visionary long-term asset manager, Fink can attest to the value that businesses can reap by looking beyond short-term profits. And although this may be a relatively new framework for success, it is a strategic imperative that organizations, executives, boards of directors, and other key constituents should elevate through visioning practices and leadership.

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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.