4 Finance objectives every hotel and restaurant should have to create success
Performance driven by passion is what makes hospitality industry flourish. As a hospitality consultant you come across much more than just buildings, the beauty of the industry are the people. Employees and guests from all over the world, each with their own view on quality, on life and on experiences.
In 2016 I published the book ‘A Hotelier’s mind, setting strategy for the future’. This is part 3 out of 5 in total, where I will share fragments out of the book. I wish to share to inspire.
The finance department is not just a number crunching department
The finance department needs to be a department full of communicative people, who want to be involved in the many decisions management or department heads need to make. With financial information, the power of being able to influence the business is large. The way business decisions are made are often based on the financial results. The task of communicating that information internally is the main job of the finance department and the people in it.
Employees should join departmental meetings, innovation sessions, workshops and branding efforts. The transparency of the numbers and results need to be understood well by others, as they can have immediate effect on how the business is managed. For accounting reasons, most of these people have a certification that is required to do the bookkeeping in a legal and efficient manner. In the goal setting of the finance department, the following objectives should be included in the personal goals as well as the departmental goals.
1. Build in an analytical effort in the data collected: Analytics drive decisions and the department should take on this responsibility of asking for data when it’s not available to them from HR or Departmental heads. Analyzing existing data is a logic step towards change. On almost every visit, the team and I do ask for financial data in advance. It says a great deal about how the hotel or department is run and an opportunity can be identified easily
2. Communicate information and data: Data that is available on Food & Beverage for example could be of great value for other departments too. Sales can use this to create a marketing plan, housekeeping might learn from the scheduling results, or room division can use the same purchasing policies. There is so much information to share and give and as long as finance is part of key decisions, they will be more open and transparent with numbers
in the future.
3. A small team form part of a bigger team: Hotels are the worst example of the finance set up, they sit in dark offices at the end of the corridor, or in the basement. They are not involved in the large ‘happy’ remainder of the teams. That starts internally of course. Every effort should be made to make a department feel comfortable by setting team goals, arrange kick offs, ideas or innovation sharing and celebrating success. Once the confidence
and importance of the department is communicated, the team can enter the large operation and be part of departmental meetings, client events and much more; that will motivate the entire hotel team to understand the value of finance.
4. Creating a key account culture: Every person in finance is dealing with crucial contacts like suppliers, bookers, third party engines, purchasing and so on. These relationships can and will result in better pricing, regular offers, improved knowledge, improved processes and much more. Their relationship are a vital element of the overall well-being of the hotel.
With clear objectives, any operation will do better setting objectives, short term as well as long term will result in team work. A small reminder is that objectives needs to be smart, Specific, Measurable, Attainable, Realistic and Timely. There is plenty of reading to do about setting objectives on the internet. The finance department should not only set objectives internally, but clearly be a part of the entire hotel goal setting.
About the Author
Jeroen Gulickx is a well-traveled hospitality professional with two business degrees and extensive experience within the hotel-and-spa segment.
The main capabilities vary from streamlining cost and operational models to strategy yielding, business development, and marketing and digital marketing.
In 2006, he started Mocinno International, a hospitality consulting company that now has offices and representation in seven countries in Europe, USA, Middle East, Asia, and Russia. The team is focused on delivering incremental revenues for hotels and spas and also develops and strategizes hotel suppliers, using mainly the Six Sigma methodology.
Mocinno International works with a network of highly experienced, energetic, and innovative people based in key locations. The team also leads client or Mocinno-originated projects or concepts.
Jeroen shares his over 20 years of industry knowledge through his blog, and other social media, and speaks in travel, marketing, innovation, or strategy related forums.
‘A Hotelier’s Mind, Setting Strategy for the Future’
The book is available in most local online bookshops, or over 1000 bookstores all over the world.
Barnes & Noble
Art by Alexandra Sarantidi http://www.alexandradesign.net/
Mocinno International is a Hospitality Management Company