Hotel Organizational Analysis Sheraton Midtown Hotel Conducted by
School of Hospitality Leadership & Encompass Hospitality Group
Bernie L Mullen M.A. Managing Partner The following report details review the level of product and service quality.
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
UW Stout, School of Hospitality Leadership Organizational Details Encompass Hospitality Group takes a hands-on approach in such diverse areas as property operations, customer relationship management, direct sales management, and human resource development. These key elements have evolved that affect the customer experience and owner profitability. With extensive knowledge of hospitality marketing and corporate hotel management based on years of direct experience in the hotel and resort industry, our company's top executives are uniquely qualified to help each property gain exposure and achieve the ultimate in guest service and market penetration.
Organizational Mission Our aim is to design and deliver highly-customized consulting solutions that precisely meet our client's requirements so to increase financial performance, improve team member engagement, and build strong guest loyalty.
Organizational Decision Making Utilizing time-tested and proven strategies developed through years of services as Operators and Corporate officers, Encompass Hospitality offers a diverse selection of services to asset owners, including: Hotel Performance Management and Consulting Services, Change Management, Organizational Development, Cash Management, Assessments and Speaking Engagements.
Hotel Organizational Analysis Mission HOA is a 7 part assessment to reveal how well the hotel designs, deploys, and sustains their strategic plan. We’ve discovered when the Triple Bottom Line Hotel Performance SystemŽ modules are aligned quality of product and service improves, when quality improves Financial performance improves, Team member engagement improves, and Guest loyalty improves.
Hotel Organizational Analysis
Organizational Information
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Hotel Organizational Analysis
Hotel Organizational Analysis Mission HOA is a 7 part assessment to reveal how well the hotel designs, deploys, and sustains their strategic plan. We’ve discovered when the Triple Bottom Line Hotel Performance System® modules are aligned quality of product and service improves, when quality improves Financial performance improves, Team member engagement improves, and Guest loyalty improves.
Hotel Organizational Analysis – Report Overview
UW Stout, School of Hospitality Leadership Tasks Summary Leadership Organizational Service Leadership Public Responsibility and Citizenship
Strategic Planning Effectiveness Strategy Development Strategy Deployment
Guest and Market Centricity Guests and Market Knowledge Guests Relationships and Satisfaction
Information Analysis Measurement and Analysis of Organizational Performance Information Management Organizational Development & Human Resource Emphasis Institute Job Analysis & Training Institute Team Member Education and Development Team Member Well-Being and Satisfaction
Process Management Product and Service Processes Business Processes
Business Results 2
Guests-Focused Outcomes Financial and Market Outcomes OD and HR Outcomes Organizational Effectiveness Outcomes
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
Leadership 180 Organizational Service Leadership 100 Public Responsibility and Citizenship 80 Strategic Planning 105 Strategy Development 50 Strategy Deployment 55 Guest and Market Centricity 85 Guests and Market Knowledge 40 Guests Relationships and Satisfaction 45 Information Analysis 70 Measurement and Analysis of Organizational Performance 40 Information Management 30 Organizational Development & Human Resource Emphasis 110 Team Member Job Analysis 40 Team Member Education, Training, and Development 35 Team Member Well-Being and Satisfaction 35 Process Management 80 Product and Service Processes 40 Business Processes 40 Business Results 370 Guests-Focused Outcomes 110 Financial and Market Outcomes 110 OD and HR Outcomes 70 Organizational Effectiveness Outcomes 80
Hotel Organizational Analysis
Summation of Scores
TOTAL POINTS 1000
HOA will highlight areas of excellence and areas of improvement. Levels of score are as listed:
Excellent in Product and Service Quality Average in Product and Service Quality Subpar in Product and Service Quality
1000 - 900 899 - 700 699 and below
Excellence = Company understands operational efficiencies are separate from strategy. There is constant improvement within process of product and service, there is an atmosphere of innovation and creativity, and modules are aligned. Average = Core values of company not distinguishable in behavior of team members, top down approach not consistent, guest centric mentality not consistent, hotel only single bottom line drive. Subpar = company has no clear purpose, direction. Goals are not aligned to purpose, team members not trained adequately, no job analysis or evaluations available, company lacks business plan.
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Information Review for Accurate Evaluation
Questionnaires/Surveys Interviews with Managers SOP Audit/Observations Internal Reports
Hotel Organizational Analysis
Triple Bottom Line Hotel Performance System Modules
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Hotel Organizational Analysis
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
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Hotel Organizational Analysis
Hotel Organizational Analysis Mission HOA is a 7 part assessment to reveal how well the hotel designs, deploys, and sustains their strategic plan. We’ve discovered when the Triple Bottom Line Hotel Performance SystemŽ modules are aligned quality of product and service improves, when quality improves Financial performance improves, Team member engagement improves, and Guest loyalty improves.
Hotel Organizational Analysis – Sheraton Midtown Hotel Report UW Stout, School of Hospitality Leadership Leadership Strategic Planning Effectiveness Guest and Market Centricity Information Analysis Organizational Development & Human Resource Emphasis Process Management Business Results
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Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
Hotels must stay in a constant state of improvement to compete in a rapidly changing market to achieve and sustain hotel excellence in product and service. The 7 part quality assessment will determine how well the hotel designs, deploys, and sustains their strategic plan to sustain quality of product and service.
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Excellent in Product and Service Quality Average in Product and Service Quality Subpar in Product and Service Quality
1000 - 900 899 - 700 699 and below
Excellence = Company understands operational efficiencies are separate from strategy in the fact hotel strategic plan is the purpose that drives operations. There is constant state of improvement in the value chain process for product and service, there is an atmosphere of innovation and creativity, and modules are aligned. Average = Core values of company not distinguishable in behavior of team members, top down approach not consistent, guest centric mentality not consistent, hotel demonstrates single bottom line outcome.
Hotel Organizational Analysis
Summation of Scores
Subpar = company has no clear purpose, and direction. Goals are not aligned to purpose, team members not trained adequately, no job analysis or evaluations available, company lacks business plan.
Summation of Sheraton Minneapolis Midtown Hotel Score = 890
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Hotel Organizational Analysis (HOA) Worksheet Process: Each stage:
Leadership Strategic Planning Guest and Market Centricity Information Analysis Organizational Development & Human Resource Emphasis Process Management
Hotel Organizational Analysis
Business Results of the assessment endures testing and analysis per a worksheet format. This ensures all areas of information gathered from each stage are thoroughly scrutinized increasing report integrity. Itemized scores per each stage are described next:
Leadership – examines how the hotel’s leaders address values and performance expectations and their community responsibility. Leadership 180 possible, hotel score 160 Organizational Service Leadership 100 possible, hotel score 90 Public Responsibility and Citizenship 80 possible, hotel score 70 It is evident GM has high expectations for creating an ‘Exceptional Guest Experience’ culture for the Sheraton Minneapolis Midtown Hotel. General Manager works to his strengths of understanding the essential details of the hotel to grow the ‘Exceptional Guest Experience’ by guiding, coaching and mentoring his managers. General Manager creates an environment of leadership eliminating managerial co-dependency. Hoteliers are experienced managers; however, there is a gap between GM’s expectations and manager’s execution, which explains not all managers have excelled as Service Leaders.
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Not all managers are clear what the vision statement (hotel aspirations), mission statement (actions to achieve the vision), and foundation document core values as indicated in the manager interviews. All managers have a general idea while some managers absolutely know and understand the vision and mission statements, and company core values in so much; it is carried out in their behavior. Hotel has an employee handbook and a company manifesto or foundation document explaining hotel core values which gives life to the vision and mission of the hotel; it is the purpose of the hotel, however, not all have a well-defined understanding. The
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
Foundation Document of the hotel (company manifesto) is not utilized during service culture training. Hotel understands its purpose in the market which is reflected in the leadership of the Executive committee members, driven by the General Manager. The surveys and manager interviews illustrates team members understand and are trying to put into practice the hotel purpose, which are the Vision and Mission statements. But not all managers are clear on vision, mission, and core values.
Points of Distinction: Very good tenure of GM. Hotel physical condition considered good entering eighth year of operation. Managerial staff respects, trusts, and finds the GM credible. Many staff long term employees. General Manager has support of corporate direct reports. Recommendations:
Hotel Organizational Analysis
Hotel does not embrace the community responsibility and good citizenship aspect of the Leadership section of the HOA by enhancing the community the hotel operates within. The Sheraton Minneapolis Midtown Hotel does not demonstrate a consistent approach to community involvement where all team members are given an opportunity to engage in a service project i.e. habitat for humanity, food shelters, student mentorship programs, etc., etc.
Initiate into staff meetings dialog of what the vision and mission of hotel is and how they relate. Utilize Foundation Document into service culture training and new hire orientation. Conduct team member surveys on quarterly bases. Start community involvement program established by executive committee with quarterly outcomes.
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Strategic Planning Effectiveness – examines how the hotel sets strategic directions and determines key plan requirements. Strategic Planning 105 possible, hotel score 90 Strategy Development 50 possible, hotel score 40 Strategy Deployment 55 possible, hotel score 50
Hotel Organizational Analysis
General Manager acute with hotel strategic plan, his experience and determination not only to understand the essences of the strategic plan but also to bring to fruition speaks on its own merit. His hotel leadership is the critical force to the strategic plan. Director of Sales and Marketing is fully engaged with the strategic plan as it relates to Sales & Marketing. GM along with DOSM understand their hotel market very well, due to the fact GM has good tenure with the hotel and staff. However, a RevPar analysis is not conducted at the property level nor is organizational development, for instance, Job Designs/descriptions are antiquated, have not been audited to align to strategies on an annual basis. Job designs are constructed after a job analysis. Hotel has not conducted a job analysis since its opening. Hotel does not use Individual Development Plans – IDP’s coordinate department goals to action plans associated with skill set and attributes necessary to complete strategic goals. This explains, in part, why all managers do not have a functioning role in the hotel strategic plan. Hotel business plan is considered good, however, does not have a cash flow budget or balance sheet budget at the property level. Areas below illustrate a formidable business plan (areas in yellow indicate items not determined per the HOA):
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Market outlook
Primary market demand generators
Distribution channel production
Competitive analysis
Positioning
Rev Par Analysis
Pricing
Marketing
Annual advertising plan
Property sales objectives
Food & beverage
Housekeeping
Front desk
Accounting o
Cash flow budget
o
Balance sheet budget
HR & Organizational Development
Engineering
Property overview
Capital expense items
Insurance policy, licenses, and leases
Year-to-date guest satisfaction index
Operational benchmarks
Operations Budget
Points of Distinction:
Strategic plan is performed at property level. General Manager has conducted strategic plan with corporate support. DOSM engaged in Sales & Marketing strategic planning and understands the difference between marketing and sales. Hotel performs routine, consistent, and thorough revenue management meetings.
Hotel Organizational Analysis
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
Recommendation:
Involve all managers in the strategic planning process, with clear expectations and deadlines. Use IDP’s aligned to departmental goals and manager development. Review monthly with each manager during the financial statement analysis. GM, DOSM, and sales team conduct the RevPar analysis. Complete competitive analysis quarterly – market is changing rapidly to only perform comp analysis once a year.
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Guest and Market Centricity – examines how the hotel determines the requirements, expectations, and preferences of guests and markets. Guest and Market Centricity 85 possible, hotel score 80 Guests and Market Knowledge 40 possible, hotel score 38 Guests Relationships and Satisfaction 45 possible, hotel score 42 Hotel consistently sustains guest satisfaction levels. Front desk team is aware of the Starwood preferred guest program; a driving force, in part, to their guest loyalty. Hotel does not allow the location to be a setback.
Hotel Organizational Analysis
Hotel only conducts an annual competitive analysis; market changing too rapidly only to perform comp analysis once a year. Hotel uses brand gathered data of what customers are saying positively or negatively of the hotel and its product and services as well as data gathered from the internet. Hotel does not use software currently available which tracks all data posted on the internet in real time. This tracking is set up similar to the comp set on the Star Report and designated per department. Currently hotel uses one or another “internet – data – gathering” tool, i.e. Trip Advisor. Hotel must look at what the customers are saying about the hotel, positively and negatively as it relates to its comp set and per each department. Market continues to modify itself, 80% of hotel guests are booking online and communicating online, it is essential to use this information to improve financial performance, team member engagement, and guest loyalty. Points of Distinction:
Corporate direct reports consistent in guest experience expectations. General Manager and DOSM comprehend hotel market and community. Hotel grasps intricacies of revenue management, in as much; there is a corporate level revenue manager.
Recommendation:
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Use tool similar to Revinate to track all data on the internet. Conduct comp set analysis quarterly, utilizing entire sales team. All sales team members subscribe free to AH&LA Smart Brief (ahla@smartbrief.com) incorporate this feature into the sales & marketing meetings to increase knowledge of industry to improve innovation and creativity to enhance revenue.
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
Information Analysis – examines how a hotel’s performance measurement systems, and how the hotel analyzes data and information. Information Analysis 70 possible, hotel score 60
Hotel information flows well as it tracks revenue, expenses, and guest information. For example, property management system, point of sale in restaurant, and payroll are interfaced. Hotel uses an impressive tool DA5 to extrapolate information into the daily report. The daily report is pooled into the ‘in house’ financial statements; hotel uses a hospitality sensitive accounting system M3. Payroll system is provided by an outside source, payroll registers are interfaced with M3. However, not all functions are utilized in DA5. For example, housekeeping does not see the daily labor output compared to budgeted and forecast daily labor nor does F&B operations. Financial statements are produced monthly, with the goal of being consistent, accurate, and timely. However, at the time of HOA the budget had not been implemented into the financial statements, and timely financial statements per departments were not in place. It should be noted, accountant is a true hotel accountant. He understands the debit/credit language of accounting; and knows how to use all functions of the information systems.
Hotel Organizational Analysis
Measurement and Analysis of Organizational Performance 40 possible, hotel score 35 Information Management 30 possible, hotel score 25
GM formulates a consistent month end reporting process culminating with an Executive Summary report for management company and ownership stakeholders. Points of Distinction:
Information systems are interfaced, i.e. PMS, POS, PR, DA5, M3. Hotel uses hospitality specific accounting system. Hotel uses formidable daily reporting system. Hotel accountant understands debit/credit functionality of financial reporting.
Recommendation:
Utilize full utility of DA5. Ensure all financial statements are delivered with report accuracy (reconciliation done on month to month basis), consistency, and timeliness to all managers. Managers perform variance reports on a monthly basis per deadlines.
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Organizational Development & Human Resource Emphasis – examines how a hotel’s team members are enabled to develop its full potential. Organizational Development & Human Resource Emphasis 110 possible, hotel score 95 Team Member Job Analysis 40 possible, hotel score 30 Team Member Education, Training, and Development 35 possible, hotel score 32 Team Member Well-Being and Satisfaction 35 possible, hotel score 33
Hotel Organizational Analysis
Hotel performs team member evaluations on annualized format. Evaluations deemed fair and consistent per the employee survey’s and manager interviews. GM plays a significant role in this consistency per his desire to improve team performance and offer feedback for career progression. Hotel does not have an HR person in particular at the property level; however, there is a corporate HR individual which offers the necessary employment law guidance. Hotel demonstrates information flows well as it tracks revenue, expenses, and guest information. For example, property management system, point of sale in restaurant, and payroll are interfaced. Hotel uses a remarkable tool DA5 to extrapolate information into the daily report. The daily report is pooled into the ‘in house’ financial statements; hotel uses a hospitality sensitive accounting system M3. Hotel performs consistent Service Culture training per brand standards, does not incorporate company foundation document completely within that training. Points of Distinction:
Hotel has corporate HR infrastructure for support. Hotel personal in accounting understand basis employment law for new hire orientation. General Manager understands the essential of organizational development as it relates to consistently offering brand Service Culture Training. Recommendation:
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Audit all job designs/descriptions annually. Depending on the market it may dictate the hotel change strategies based on the forecast hence a job design change is required; this ensures action plans/strategies per department are linked to job designs. Incorporate the 10 characteristics of Service Leadership into Service Culture training. Explained further in “Business Results” section.
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
Process Management – examines how the hotel’s processes are functioning, including guest-focused design, product and service delivery processes, support services, and supply management. Process Management 80 possible, hotel score 65 Product and Service Processes 40 possible, hotel score 30 Business Processes 40 possible, hotel score 35
Assessment in this area is predicated primarily on the Standard Operating Procedures, SOP manual for the hotel. Included in the SOP manual are the brand standards per department as well as well as the Uniform System of Accounts for the Lodging Industry, and the employment law procedures & training/development processes. Hotel does not have a SOP documented value chain per the financial, operations, and organizational development platforms. As an example, chief engineer for the Maintenance department is the only individual in that department. As an example, brand mandates rooms preventative maintenance performed four times annually; currently this SOP operational platform cannot be accomplished leaving the hotel exposed for greater expense on capital expenses.
Hotel Organizational Analysis
The goal of this section is to prove the hotel is in a constant state of improvement. This allows the hotel managers to become influencers of change instead of recipients of forced change. In other words, hotel managers are required to be proactive not reactive. One of the 10 characteristics of Service Leaders is Foresight, see improvement before crisis occurs.
Points of Distinction:
Hotel leadership team galvanized to improving product and service, per the manager interviews. General Manager demonstrates experience and leadership aptitude for sustaining a constant state of improvement for his hotel.
Recommendation:
Formulate a SOP document including the three platforms of financial management, operational efficiencies, and organizational development per brand standards and hotel management company standards. Reevaluate the hotel organizational chart to structure an operationally functional team able to produce in practice and behavior the SOP of the hotel.
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Business Results – examines how a hotel’s performance and improvement in key business areas, guest’s satisfaction, product and service performance, financial and marketplace performance, HR results, supplier and partner results, and operational performance. Business Results 370 possible, hotel score 335
Hotel Organizational Analysis
Guests-Focused Outcomes 110 possible, hotel score 105 Financial and Market Outcomes 110 possible, hotel score 100 OD and HR Outcomes 70 possible, hotel score 60 Organizational Effectiveness Outcomes 80 possible, hotel score 70 Hotel ranks high among its brand competition per GSI scores. General Manager maintains and sustains results oriented objectives from the guest service scores. He and his staff have demonstrated and intense determination to consistently achieve guest experience beyond what is expected. Though the hotel is not the market leader per its comp set in the Star Report the hotel has maintained its share of the market. As for financial outcomes as it relates to statements: Balance Sheet, Income Statement, and Statement of Cash Flow; hotel consistently produces income statement monthly. Cash is typically reconciled before closing the month; however, this cannot be said for the other balance sheet line items. Other line items are reconciled on a quarterly basis but not consistently. DA5 is not utilized to its fullest capacity, the section “Informational Analysis” will explain further. Accounting department does not perform balance sheet ratio analysis. Important to note, when calculating financial ratios compared to industry standards; comparisons need to be similar in nature to increase integrity of the analysis. This means, comparing the hotel to similar other hotels in a related market. Moreover, ratio analysis at the hotel level should associate month to month comparisons against the operational benchmarks per the strategic plan. Hotel understands and functions well within its capabilities of Human Resources and employment law. Only employment law dysfunction is hotel does not perform a routine I-9 audit. Hotel touches on organizational development for it incorporates its brand mandated Service Culture training and has a formidable foundation document but does not blend the two during training nor has the foundation document been reviewed on an annual basis (during the strategic planning process) from the corporate officers and the GM.
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Organizational effectiveness is good, primarily due to the leadership of the GM. General Manager demonstrates and carries out in his behavior (employee surveys and manager interviews indicate) an autonomous managerial style which bodes well for his staff. Staff members have indicated they feel empowered to perform their day to day functions at a higher
Bernie L Mullen M.A., UW Stout, School of Hospitality Leadership Jeffry Young, Student, UW Stout, School of Hospitality Leadership
level due in large part knowing they can communicate with their GM on a regular basis for guidance and direction; and they indicate they are able to do this because the GM’s credibility and trust is considered very good. Yet the hotel lacks adequate personnel per the organizational chart, explained further in “Process Management” with the maintenance department. Organizational effectiveness is directly correlated to the strategic plan modules: Vision Statement, Mission Statement, Company Manifesto (Foundation Document), Job Designs, Individual Development Plans, Service Leadership Training, Hotel Business Plan (strategies/budget). The Sheraton Minneapolis Midtown Hotel utilizes aspects of the modules and while some are not used to fullest capacity.
Points of Distinction:
Hotel tracks business results consistently. Hotel offers GM corporate support as it relates to results compared to expectations. General Manager given autonomy and accountability from direct reports to govern business results month to month. Recommendation:
Initiate accurate, timely, and consistent reporting on all financial platforms, i.e. DA5 full capability, reconciliation of balance sheet items, and regular cash flow report at property level. Departmental income statement accountability, i.e. variance reports. Perform balance sheet ratio analysis, i.e. liquidity ratio (ability to pay short term expenses), and turnover ratio (effectively using F&B inventory). Additionally, HR should document monthly the employee turnover percentage compared to operational benchmarks per the strategic plan. Initiate a robust organizational development program, i.e. IDP’s –Individual Development Plans for each manager at minimum. This will also allow the GM to offer consistent and fair annual evaluations the first week of the New Year. Perform Service Leadership Training for managers on a quarterly basis. This incorporation the 10 characteristics that produce the 5 Human Truths the Wischermann Partners foundation document speak to. To achieve the 5 Human Truths managers need to perform the 10 characteristics of great service leaders: Listen, Empathy, Comfort, Awareness, Persuasion, Conceptual, Foresight, Stewardship, and Community. Create, implement, and sustain the Standard Operating Procedures for entire hotel. Ensure organizational chart can withstand SOP expectations.
Hotel Organizational Analysis
Hotels having established a consistent state of improvement, which produce greater financial performance, greater team member engagement, and greater guest loyalty, show dedication to a vigorous strategic plan.
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