ises keynote speech
TRANSCRIPT
Middle Management in the Hospitality Business:Road to Improved Customer Satisfaction
David L Jones, PhDProfessor and Programme Director –
Hospitality BusinessSingapore Institute of Technology
Agenda
• Understanding Gen Y – Our future leaders …. middle managers
• Changing expectations and/or perceptions …. Hospitality Business
• Road to customer satisfaction improvement
Secret Formula
25 + 24 = 18
Secret Formula25 + 24 = 18
Grandpa!!
Reality versus Expectation
Generation Gap
Baby Boomers
Gen Y
Change Expectation or
Change Perceptions?
Traditional Baby-Boomer Values
• Long hours• Pay your dues• Do shift work• Start with peeling potatoes and cutting carrots….
.. or making beds
Gen Y Perceptions
• Silicon Valley reality• Start-up mentality• Non-hoteliers success in hospitality
When Expectations and Perceptions Don’t Match …. Middle Management Gap
Transitioning the Expectations
• No longer a trade or skill based industry….. now a business …. a big business!
• Owners are financially focused– Developers don’t call it a hotel, to them its an asset
Hospitality is Big Business
Who is in the Hospitality Business C-Suite?
• C-suite has changed …. where is the hotelier?– Lawyer (Marriott)– Finance (Hyatt – MBA, Hilton)– Economics (IHG, FRHI)
• Not hospitality grads …. why not?
Who is in the Hospitality Business C-Suite?
• C-suite has changed …. where is the hotelier?– Lawyer (Marriott)– Finance (Hyatt – MBA, Hilton)– Economics (IHG, FRHI)
• Not hospitality grads …. why not?
Answer: Teach Hospitality Business!!!
What is Hospitality Business?
Business is a system of interconnected, interactive parts
Educational Pathway to Business
Operations Management Business
Changing Our Perception to Hospitality Business
Fresh Grad
Fresh Grad
Future Leader …..
…. Middle Manager
SIT HB Degree Student Profile
• Average age = 22, which means they’ll be 24 or 25 when they graduate
• All will have at least 1 year of industry internship/work experience, one already has 5 years
• Future will be more industry experience as older students return for degrees
• Candidly, SIT grads will have more experience than most faculty teaching them at other universities
Pathway to Middle Management
Operations Management Business
What? How? Why?
Subjective Objective
Middle Management Preparation
• Need to understand the business – business acumen• Passion to follow the companies• Understand the mindset of an owner• Know how to defend customer service for profit
HB Graduate Characteristics
• Burning desire – passion for the industry• Specialized knowledge– Customer and ownership
• Goal orientated – have a vision• Action orientated – willing to put theory into practice
They will be ready!
Take a Risk!
• Drop the fear of failure• Give a transparent career path• Empower the future leader …. soon to be middle
manager
Transparent Talent Management Process
Talent acquisition
Talent development
Talent retention
Context• Hospitality industry
• Employees vs employers
Malcolm Leong - Head, Revenue Management & Distribution, Far East Hospitality Management
Transparent Talent Management Process
Talent acquisition
Talent development
Talent retention
Context• Hospitality industry
• Employees vs employers
Malcolm Leong - Head, Revenue Management & Distribution, Far East Hospitality Management
Set a Timeline
RM Analyst Director RM
Vice President of
Revenue Optimization
Designing a Career Path – Revenue Management Example
Doris Inkman, Regional Director of Revenue, FHRI Hotels Asia Pacific
Road to Improved Customer Satisfaction
Filling the Middle Management Gap
The Service Profit Chain
Source: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, “Putting the Service-Profit Chain to Work,” Harvard Business Review, March-April 1994, p. 166.
The Service Profit Chain and Middle Management
Source: An exhibit from J. L. Heskett, T. O. Jones, W. E. Sasser, Jr., and L. A. Schlesinger, “Putting the Service-Profit Chain to Work,” Harvard Business Review, March-April 1994, p. 166.
Middle Management Gap Business Acumen
Big, Global Business with Service at the Core
Hospitality Business Middle Management is Key
Facts About Gen Z – 1998 or later• Can’t recall a time before Google• Or smartphones• Wear watches that’s primary function isn’t to tell
time• Never had the feeling of holding a paper map in their
hands• Favorite apps are Snapchat, vine and Instagram• FOMO – Fear of Missing Out
Joe Mele, ehotelier.com