I met with the Group CEO of a prominent, and expanding, hotel chain across AsiaPacific and we discussed some interesting topics.
Here are some highlights:
- Strategy is let down by execution often times because the team doesn’t know how to deliver the strategy. Knowing what is needed to be delivered is normally clear, but knowing how isn’t.
- Communicating strategy must cater for this. Leaders need to take responsibility for anticipating that their management/execution team is not going to ask for help, despite them needing it.
- Assuming capability already exists to execute a new strategy is a big assumption to make!
- Negative “press” via social media is a blessing not a curse. Before the voice of the customer was so easily heard it was a nightmare trying to understand what the customer really thought. At least now, leaders get direct market feedback; versus a diluted version through their people.
- In Singapore hotel occupancy rates are around 86%, seemingly resilient to market forces. Yet Singapore hotels are fast to offer discounts to secure business. In Hong Kong the occupancy is about the same and yet they don’t capitulate on price. Cultural differences are playing a big part in profitability. Paradigm shift needed in Sg!
- Carve out your differentiator and communicate it clearly. Suggest to the customer, if that is not what they are looking for then the “partnership” wont work anyway. Pick your battles, you can’t win them all.
- Compensation schemes drive behaviour. Ensure that it drives the right behaviour! Start with this for the sales folks and then have a galvanising leader to reduce attrition and create culture. Good people leaving your business is an issue within your control.
- In a market where sales talent is so hard to find, losing good people can wipe out a quarter.
Some nice perspective and insight into what’s on this particular CEOs agenda…