THE LEAN TEAM
What’s the number one priority for hospitality investors/hotel owners?
The naked truth is ROI…everything else comes next unless it’s a charity business.
Although hotels’ profitability is directly tied to revenue, ADR, occupancy…etc., the devil is actually in the details…which, in this case, is the process to achieve that goal (ROI), and it starts from your work environment and management style.
The human asset will always be the most important factor of your business, the more you invest in it, the more outcome they will bring back to your business. Likewise, the more you ignore it, the less they will give back to your investment.
Every man-hour costs you money, and it is up to you how you manage that cash flow. So looking at your current business flow throughout every department; are you getting the maximum output or is there a lot lost in the process?
Observing work environments can tell a lot about the behaviour, success and maturity of an organization, department or a specific team. Hence, running a lean team/organization should be your optimum goal.
So what is a LEAN process?
Without getting too technically boring, it simply is delivering the highest value that is desired by your niche with zero waste. Using less effort & time to produce exactly the amount of work needed to produce your value offering, which eventually leads to an overall cost reduction.
The concept started in the industrial/manufacturing business and later started spreading across different industries, including hospitality, with the goal to perfectly run a business with no waste to reduce spending and effectively achieve a better ROI.
5 steps to implement a lean process in your work environment:
Start by identifying your value offering, this is everything you offer that your client is willing to pay for.
Map the value stream by tracking back all your activities to the value offering. Every activity, process, procedure that doesn’t add value is considered a waste.
Create a waste free flow that is seamless, quick, efficient and cost saving.
Establishing “pull” by optimizing the effort needed to achieve the value offering. When the demand is less, divert that effort somewhere else to create or serve a different value that is in demand.
Process perfection is the ultimate goal, and applying the previous 4 steps is only the beginning. An ongoing and “continuous process improvement” should be a corner stone to your business culture that is adopted & promoted by everyone starting from the CEO down to the new intern who had just joined.
Where and how can you optimize/eliminate waste? Here’s a few examples:
Limit the time allowed for meetings and conference calls.
Adopt agile and dynamic policies and procedures that can easily be adjusted and updated as often as needed.
Cut down the approval process layers to the minimum possible.
Establish a “Continuous Process improvement” board that is led by middle to entry level management ensuring that everyone in the organization has a chance to suggest and express their improvement ideas.
Empower your teams.
Eliminate process duplications.
Enhance cross-department workflow.
Minimize unproductive administration.
Adopt digital technologies and tools that saves time and effort.
To cultivate and grow a culture of lean mindset, it is important to lay down a strong foundation by elevating every team member’s skills and business maturity to become an active contributor to the improvement of your business rather than being just an executer, which circles back to the importance of investing in your human asset to achieve your goal, and this starts with 3 simple steps:
Provide the right professional and personal training and coaching.
Building trust in your teams’ capabilities and fostering accountability over dependability.
Empowerment to make changes & mentoring programs to ensure they’re always on the right track.
The conclusion
Do not lose money on waste. Instead, invest in transformation into a lean organization that will positively impact every team member’s productivity, maturity & morale, and ultimately your ROI.
Connect with us to learn more about how our LEAN process strategies can help improving your business environment, productivity and profitability.
LUXNATION Hospitality Consulting GmbH i.Gr.
Seefeld in Tirol, 6100, Austria
+43 676 4022 455
connect@luxnationconsulting.com