Tag Archive for: Strategy

The CEO Who Initiated a Dialogue Rather than an Instruction

The organisation had asked for performance management. At least that is what everyone believed.
The mandate sounded straightforward.
Improve performance. Increase profitability. Strengthen accountability. Introduce structure. Measure outcomes.
The objectives were sensible. The implementation began.

Managers learned. Reports improved. Discussions became more disciplined.
Departments became increasingly aligned. People started asking better questions.
At first, the questions were operational. Then commercial. Then strategic.

Then something unexpected happened. The questions started travelling upwards.
Department Heads wanted clarity. The General Managers wanted clarity. The senior leadership team wanted clarity. Eventually, the same questions began appearing repeatedly.
What are our objectives? What assumptions are they based upon? What are we trying to become? What are we optimising for?

The questions were not rebellious. They were logical. The organisation was learning.
And learning organisations tend to become curious.

When budgeting time arrived, the CEO was asking the organisation to improve profitability.
A reasonable request in any organisation.

The response from the management team was equally reasonable:

  • What is our Highest and Best Use?
  • What market positioning are we pursuing?
  • Which customer are we targeting?
  • What brand strategy supports that choice?
  • How much capital are we prepared to invest?
  • When will that investment occur?
  • What return are we expecting?
  • What organisational structure is required to deliver it?

The fascinating part was that nobody had instructed the organisation to ask these questions. The organisation had taught itself.
Performance management had created curiosity.
And curiosity has a remarkable quality. Once it takes hold, it becomes difficult to reverse.

There was no hostility in these questions. No resistance. No politics.
Simply a request for clarity in order to plan and execute effectively.

What followed was a growing realisation that important assumptions about who the organisation was, where it wanted to go, and what it ultimately wanted to become had never been fully articulated.
Eventually, the discussion returned to management itself: Tell us what you believe we can achieve. Tell us what you need to achieve it.
What had started as a project about measurement gradually became a conversation about direction.

Looking back, I believe this was the real success of the project.
Not the reports. Not the systems. Not the numbers.
The organisation had learned how to think and had begun discovering what it was and what it wanted to achieve.

Reflection

This article is about how curiosity transforms performance management into organisational learning.

This is the twelfth of a series of articles – “What hospitality taught me about myself” – in which I share lessons learned throughout my professional and personal journey, and how those experiences have shaped my thinking and led me to develop my own principles.

Many people believe performance management is about measurement.
I have gradually come to a different conclusion.
Performance management is fundamentally about setting expectations.
Measurement simply reveals whether those expectations have been achieved.

The difficult part is rarely the measurement.
The difficult part is defining the expectations first.
Governance begins with that clarity, because expectations define decision rights, accountability, information flows, and ultimately the basis upon which performance can be assessed.
And not merely the financial expectations.

Once people understand how a business works, they naturally begin asking why it works the way it does.
What started as a discussion about performance eventually became a discussion about purpose, positioning, capital, structure, and strategy.

Looking back, that was the real achievement.
The organisation had not merely learned how to measure performance.
It had learned how to think.

About the Author

Raoul Gransier is a Senior International Adviser and owner-focused hotelier with more than 25 years of operational and advisory experience in hospitality, tourism, governance, and performance improvement.

Website

https://gransier.com

The Revenue Experiment

While serving as Front Office Manager at a large hotel catering predominantly to leisure groups, I became fascinated by distribution.

At the time, revenue management – both in terms of systems and culture – was still emerging.
Convincing management and ownership to invest in dedicated systems and specialised staff often required as much selling as the rooms themselves.

Most business was negotiated with wholesalers and tour operators at fixed prices.

Something about the methodology fascinated me.
I wanted to understand how it actually worked.
Not the theory. The mechanism. The chain.
How did guests find us? Why did some channels perform better than others? Why did some market segments behave differently from others?

I became absorbed by questions such as:

  • GDS and OTAs
  • Distribution costs, commissions, mark-ups, kick-backs
  • Market segments and sources of business
  • Pricing, net or inclusive of VAT and city tax
  • Demand, pickup, washdown, pace, and double-occupancy density
  • Room categories and benefits, addressing leisure, MICE and business needs
  • Yield management
  • Reputation management

I experimented relentlessly.
Without specialised software. Without automated tools.
This was long before today’s user-friendly PMS systems and apps.
All I had were spreadsheets, observation, curiosity, and adjustment.

I changed one thing. Observed the result. Changed another.
Observed again. Slowly, patterns started to emerge. The result was not merely better occupancy.
The result was a different business model. New market segments emerged. Dependence on low-yield wholesale business decreased.
The hotel began attracting guests who had previously never considered it.

What had been considered an out-of-town wholesale hotel gradually became one of the city’s strongest online performers.

Looking back, the lesson was not revenue management.
The lesson was curiosity.
Understanding the mechanism often creates opportunities that remain invisible to others.

Thank you for reading my article.

This article is about how curiosity taught me to look beyond the obvious.

This is the seventh of a series of articles – “What hospitality taught me about myself” – in which I share lessons learned throughout my professional and personal journey, and how those experiences have shaped my thinking and led me to develop my own principles.

I hope it has provided some food for thought, encouraged curiosity, and inspired you to keep learning.

Curiosity, humility, and continuous learning remain among the most valuable tools we possess.

About the Author

Raoul Gransier is a Senior International Adviser and owner-focused hotelier with more than 25 years of operational and advisory experience in hospitality, tourism, governance, and performance improvement.

Website

https://gransier.com