TOUGH TALK: The perfect hotel manager

Seven Tides Hospitality managing director Mike Scully says the brand man’s reign is over and ask the entrepreneurs to step up and take control, as he reveals exactly what hotel owners are seeking from their managers

The business world is changing and management needs to change with it. Over the last 30 years, we have all noticed that management evolves in cycles — from the entrepreneur running our companies, to the brand marketing specialist taking over, through to the accountant taking the reins to either squeeze additional profits or start the cull as the economy gets overheated.

We have now witnessed the cull and I believe are heading for the new regime to take office. It is time for the entrepreneur to strike once again and repair the damage done by our over-zealous marketing men, who merrily tried to make our hotels look and feel like a can of soup with no individuality. With the brand man’s belief that all good things came from the ‘factory’, very little in the form of flair, imagination or individuality was allowed at property level. Zealous accountants have now made their cuts, which in many cases became necessary due to management not being able to fill hotels or restaurants — part of the problem being that management had not been taught at ground level to initiate and create business as it was always being supplied by the ‘factory’. Now that the cupboard is bare and the ‘factory’ is not producing, it is time for the entrepreneurial “operators” to once again fly to the rescue.

I believe that we should all get inspiration from fellow industrialists and we only have to look at the most successful of these to understand that the best of them have all three of the above qualities. I look at Richard Branson as one of these. First and foremost, he is an operator having created innovative businesses; secondly he is a master of the brand in creating Virgin; and thirdly, he is obviously very financially aware. The same could be said for Steve Jobs of Apple or Donald Trump. I call this three-dimensional (3D) management as it encompasses three pillars of successful management.

Why then do modern corporations insist on hiring one-dimensional (1D) CEOs, presidents and managers?

We know the main reason and that is the drive for shareholder value in today’s market. I believe that this is short-sighted and leads to bubbles, which ultimately lead to crashes. More importantly, 1D operators do not create long-term value and I believe that governments will legislate against the practice of bubble creation, as we are now seeing with banks. As importantly, owners are looking for managers with passion for their product and industry. We live and work in a capitalist society; however, it is important that we maintain socialist virtues. Is it acceptable that families, lives and aspirations can be destroyed and children’s education and homes can be taken away, all by the whims of the 1D operator who desires to appease shareholders after having created a bubble.

Managers in our industry do not work nine to five, but equally are not expected to aimlessly walk around their properties — instead they should be mixing with their guests, analysing their competitors, and actively taking business from them through knowing their competitors’ weak points, strengths and customers through firsthand experience.

Too many times in recent years I have heard the comment “why do we not see other managers around”. How are they able to understand their market if they do not mix within it? And I am not talking about the token monthly meal in a competitor restaurant on expense accounts.

Starting with graduates

Our graduates have to understand that education at college is only one aspect of their learning and that theory merely prepares them for the industry. Enthusiasm, involvement and participation on the ground is what will make them into successful managers. We are only as good as our most recent successes, which means we can never rest on our laurels; graduates who have not created success have to learn how to and that will be one of their most important lessons. Equally, many managers who have operated for years in the industry have not created success themselves; they have only been in some cases part of it due to a very favourable economic climate.

Following the likes of Richard Branson or Sol Kerzner in our industry will give graduates benchmarks to go by, as these are two professionals who have created success through their own ingenuity and have most of the 3D qualities that I am talking about. I also believe that ownership is key to motivation and job satisfaction and that as owners and operators we must never lose sight of this.

Similarly, managers must take the challenge upon themselves to succeed through good management practices. We want to see our managers at charity events, sports events, product launches, concerts, promotions and at events that the competitor is running successfully and profitably — they need to be pillars of society.

Corporations must never make the same mistake and downgrade the quality of their management in the belief that the brand and system is bigger than the individual. With the choice now available to the customer, it will be the properties where the management is experienced, motivated and good that the real difference will be made and owners will see the best return on their investment. We only have to look around town to see the properties where the management “know their stuff” by looking at their marketing and promotions. Generally those managers who are not driving events and food and beverage to their hotels are not driving business to their hotels, and this very often can be seen in the month-end competitive results — one thing even the best manager cannot hide from his owner!

What the operators said

Darroch Crawford
Managing Director
Premier Inn Hotels LLC

For me, hotel general managers need first to be great leaders, with the ability to pick great talent. The best and most successful hotels are operated by a team of good and motivated people who work together to first secure business, maximise its potential, service it brilliantly, measure its impact, lock it in for the future and understand its value.

Hotel GMs don’t need to be great marketers, accountants or chefs, but they must know how to manage them. It is important to build good relationships with key customers, although many of the same skills of communication serve both the colleague and the guest equally well.

Integrity is important too. Do what you say you will do and be honest. I was fortunate enough as a young manager to learn from some great GMs, but I always felt I learned as much from the bad ones as the good, because I could see the damage that they did, from which I learned what not to do. So in summary, when the chips are down, look for great leaders with honesty, integrity and commitment and you won’t go far wrong.

Naim Maadad
Managing director
Minor Spas Global & Hotels Middle East

Without any iota of doubt hotels should be run by entrepreneurs. It is a lifestyle business which should be driven by entrepreneurs who have a passion for excellence. Success will come from aggressive and creative marketing strategies and a balance of real “hospitality”.

The best managers are those who can manage business and lead people. Where failure lies is when there is a crossed wire and the focus is on just “managing” people.

True leaders are those who focus on creative marketing and driving business — not cost cutting and staff layoffs. We need to give guests a reason to return despite the challenges we face.

Those who think out of the box and drive their intuition with a passion to succeed are the only ones who have ensured long-lasting success in this global industry of hospitality — those who believe in creating their own path where none lies, and not copying what already is.

Ambition and determination to succeed are the key words for young graduates to be successful in the hospitality industry. They need to learn management skills in each discipline by climbing the ladder and thereby gaining vital exposure and critical experience — there are no short cuts.

Those who believe in taking the lead and following their intuition would continue to be successful at all times; there is no restriction at all for entrepreneurs in this industry, only opportunities.

Christophe Landais
Managing Director
Accor Hospitality ME

Hotels should be run by entrepreneurs because they are business people with a marketing flair. They are able to anticipate and adapt to trends and business needs, as well as have the courage and vision to spearhead growth and move the company forward.

The financial crisis has highlighted the fact that we need innovative managers with a very good grasp of economics. We need entrepreneurs who are prepared to take risks and think about the mid-term and long-term growth instead of looking at immediate returns.

The growth and variety of new brands and hotel/ restaurants concepts being introduced into the hospitality market shows that entrepreneurs are not restricted. In fact, their creative and innovative ideas are making the industry more interesting, robust and vibrant.

The main traits we look for in a manager are: the capacity to unite people on their projects to make them happen; capacity to think on their feet and fast and yet to be able to step back and take a broader view for a strategic outlook. Hotel managers today more than ever, need to have a high business acumen and be well versed in commercial interactions and strategies.

In terms of role models, Paul Dubrule and Gerard Pelisson who founded the Accor Group more than 40 years ago were definitely visionary. Both of them have driven the development of the economy to mid-scale hotel segments as standardised hospitality outside of the United States.  

Mike Scully has worked for some of the leading hotel management companies worldwide — Sun International, Holiday Inn, Accor and Starwood — as well as developing and managing properties for the Dubai Government. He is currently managing director of Seven Tides — Hospitality, which will be opening four luxury properties in Dubai within the next 12 months and which also owns Dukes Hotel in London.