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Innovation And Change | Addressing The “High Touch” Side Of Hospitality | By Dr. John Hogan CHE CHA MHS
15 January 2010

John Hogan, CHA MHS CHE NEW

The definition of innovate is “to bring something new to an environment.” Hospitality business owners and senior managers must embrace “high tech” changes available to keep the industry fresh. They must also understand as part of their responsibility the need to welcome and support business practices that address the human element of the business.

Tourism and the hospitality industry play a major role in the global economy and contribute significant revenues and net wealth to many countries. Hospitality and tourism arguably make up the world’s largest industry, although some internet searches conflict in interpretation. When we think about it, we recognize that numerous components of hospitality focus heavily on the personal, “high touch” side of life.

The industry has adopted many innovative changes and improvements in the past ten years. Many of them are in the high tech side of the business, including revenue management, marketing, payroll management and scheduling, distribution systems, guest history and communication within organizations. Others have been in operations and design, including the GREEN movement and sensitivity to the global environment. These have been positive changes and helped the industry remain current and sensitive to consumers and trends.

This column on INNOVATION addresses the “high touch -people” side of Hospitality.

Change is not made without inconvenience,
even for worse to better
.
Richard Hooker (1554-1600),
as quoted in the Preface of Johnson’s English Dictionary.

This quote from several centuries ago remains true today – change requires effort. We have all learned in our professional and personal lives that the status quo does not remain as is for very long. We have come to understand that if we do not move forward, we will fall behind.

Making diversity “real” in today’s work environment has been an evolution I have seen in this industry over the past 20 years. Those organizations and individuals who have embraced the culture of inclusion and diversity are far ahead of their competitors in many areas of business success. They have enjoyed lower recruitment and turnover costs, retained capable staff, improved both customer and associate satisfaction and usually led their markets in share and revenues.

Gaining a competitive edge in any economy is important, but becomes even more noticeable in a challenging environment.

This article identifies three long-term successful organizations that have made cultural diversity such an integral part of their core of every day business to the point where it is no longer a “special initiative”, but rather is a piece of their plans of success. Information from each company and how they address their innovative ways to make cultural diversity an essential piece of their business success is provided. Partial listings of public recognition of accomplishments are included at the end of each recap. The companies’ efforts do not focus on awards, but their results and success have earned these acknowledgments.


The online report on Global Diversity and Inclusion includes A message from CEO1 , Joseph Neubauer

This message states “Aramark, as one of the largest private companies in the United States, and with a global presence that spans 22 countries, has as it’s vision is to be a company where the best people want to work. Together, our combined skills, insights, creativity, and commitment allow us to provide the greatest value to our clients who rely on us to provide excellent service every day. We serve millions of people in a variety of settings and our customers represent a broad and diverse spectrum of the consumer marketplace.

A diverse workforce means we are better positioned to understand their preferences and develop innovative solutions to ensure their satisfaction. More satisfied customers means more successful clients, which will help us continue to be a leader in our industry. For this reason, diversity is far more than a Human Resources initiative or simply the right thing to do. It is a business imperative that is crucial to ARAMARK’s competitive advantage…………………

The ARAMARK website lists a section on SOCIAL RESPONSIBILITY

At ARAMARK, we create positive experiences and environments that enable people and organizations to thrive. Every day our 260,000 employees worldwide enrich lives through business and community activities.

Each day we consider and address issues that matter most to clients, customers, employees and communities.

We focus our energy on initiatives that support our diverse workforce; enhance and protect our environment; strengthen our communities; and advance consumer health and wellness. We seek to lead by example and continuously improve in those areas of our business that are under our direct control. We work with clients and suppliers to develop innovative product and service options that operationalize their corporate social responsibility objectives.

Together, we are enriching lives every day.

Our Board of Directors has adopted governance principles and committee charters to ensure that ARAMARK conducts business with the utmost integrity and according to the highest ethical standards. We have chartered a Corporate Social Responsibilities Practices Committee whose purpose is to lead and focus ARAMARK’s commitment to advancing our enterprise commitment towards social responsibility. And each day we work hard to continuously improve on our actions.

At ARAMARK, our mission is to be a company where the best people want to work…people from all backgrounds, perspectives, and experiences. That mission is reflected throughout our organization – from our executive offices to our operations at ballparks, universities, elementary schools, and beyond. We are comprised of a rich mosaic of individuals who together make us what we are as a company.

Key Focus Areas

ARAMARK recognition and awards are significant. Recent awards in the areas of diversity, inclusion and social responsibility include:

2008 Employee Awards 2009 2008 Community Awards 2009 2009

2008


Company size or age does not need to be a factor in making an impact in diversity and success.

The Original5
Bill Kimpton was an investment banker-turned-hotelier who became a pioneer in the hospitality industry. He conceived and developed the first "boutique" hotel in the United States, a distinct alternative to the cookie-cutter hotels of the early 80s.


Staying True
The Kimpton web sites states a belief "in a culture that includes people, one that celebrates the individuality of our guests and employees alike. We're equally devoted to the greater good and have led the hospitality industry with our innovative EarthCare program. Perhaps it's this unique mix of individual expression and social responsibility that inspires a strong emotional connection with our guests. According to Market Metrix Hospitality Index™, Kimpton has the highest customer satisfaction scores (93%+) and emotional attachment scores (89%) of any hotel company operating in the United States..... "

Evolving and Growing. Kimpton takes pride in its commitment to social responsibility and leads the hospitality industry in ecological practices through its innovative EarthCare programs.

A Truly Diverse, Incredibly Inclusive Culture. Kimpton Hotels & Restaurants strive to create a work force as diverse, inclusive and multifaceted as its customer base. It is our desire to respect culture and ethnic diversity by hiring and nurturing individuals with an array of talent, experience, perspective, and backgrounds that will recognize the needs of, and provide exceptional service to our guests.

Here's how diversity and inclusion looks at Kimpton:

Our Culture Encourages Innovation. Just as our architecture and interior designs stand out in a crowded marketplace, our employees are becoming legendary in their individualized approaches to care. This arises from a culture of inclusion that recognizes and welcomes individuality and encourages each employee to be the most authentic person he or she can be. The management at Kimpton works hard to create an environment where employees can feel free to be themselves on the job.

Kimpton has always embraced diversity. In our culture, diversity goes beyond the traditional definition. Our approach requires a complete understanding of different interests, perspectives and backgrounds. That means creating an environment that reflects all the experiences of the employees and the guests. It means developing an open mind. To achieve these goals, Kimpton has established a number of policies and programs to increase awareness, understanding, acceptance, and respect for differences which ultimately promotes more trusting and productive working relationships

Diversity & Inclusion Interactive Training for All Staff Levels. Kimpton's diversity work includes interactive training that offers employees innovative perspectives on diversity and inclusion. It gives them a unifying look at Kimpton's values with the opportunity to integrate their own. Each hotel and restaurant has a unique personality, as does each employee. The training recognizes that diversity is the fuel that drives creativity and innovation. The training also incorporates effective leadership skills, with an emphasis on honoring diverse cultures, personalities and points-of-view.

THE FOLLOWING ARE TAKEN FROM THE KIMPTON WEB SITE

KIMPTON CARES
When it comes to social responsibility, Kimpton Hotels is all business. Kimpton's commitment to social responsibility is evident at every level from the local and national level to the global community. This commitment to care permeates every aspect of Kimpton Hotels, beginning internally with its employees at all Kimpton Hotels, making a positive social and environmental difference in the community...

EARTHCARE

We recognize that it is our social duty to reduce our ecological footprint as we go about our business. Kimpton EarthCare is the official program that supports this philosophy and includes a powerful combination of environmental standards, an internal Eco-Champions organization, and partnerships (such as Trust for Public Land). We invite you to read more about our industry leading environmental program, Kimpton EarthCare.

PLANT A BILLION TREES -- THE NATURE CONSERVANCY

The Nature Conservancy has been deeply involved in preserving the earth's natural places since 1951. Their mission: preserving the plants, animals and natural communities that represent the diversity of life on Earth by protecting the lands and waters they need to survive. This hard-working organization has recently launched a bold plan to help restore the Atlantic forest. Kimpton is partnering with The Nature Conservancy to turn the tide on centuries of deforestation.

PARKS FOR PEOPLE - THE TRUST FOR PUBLIC LAND (TPL)

The Trust for Public Land is a nonprofit organization that conserves land for people to enjoy as parks, gardens and other natural places. Since its founding in 1972, TPL has helped protect more than 2 million acres in 46 states. TPL depends on the support of individuals, foundations and corporations. Visit TPL on the Web at www.tpl.org. TPL offers each Kimpton Hotel guest a free subscription to its four-color national magazine, Land&People, through www.tpl.org/kimpton

DRESS FOR SUCCESS

Behind every great woman, there's a great suit! Kimpton Hotels invite you to celebrate Woman's History Month by supporting Dress for Success, a not-for-profit organization that provides interview suits and career development to low-income women entering the job market.

RED RIBBON CAMPAIGN

Kimpton Hotels has been a leader in the fight against HIV for decades. The Kimpton Red Ribbon Campaign assists HIV service organizations across North America at the local level, through employee volunteerism, HIV educational campaigns, corporate donations, and raising funds for the nonprofits through special events.

EMPLOYEE STORIES
Kimpton's strong commitment to contribution begins and ends with its employees, all of whom play an active role in maintaining the company's mission: here are some of their stories.

Kimpton Firsts and Recent Highlights6 on diversity, inclusion and social responsibility


Diversity understanding began here with company founder J Willard Marriott, Sr. who always had a commitment to bringing people into the organization with the appropriate skills or potential and to encourage those people to grow with the company.

People first—the foundation of Marriott's corporate culture and success for over 80 years! Marriott's belief is that our associates are our greatest assets. Marriott Culture is the experience we create for our customers, which is demonstrated by the behavior of our associates. It is people serving people.[5]

CEO Bill Marriott, Jr. audited the company's supplier-diversity numbers personally to keep the commitment real. The company is participating in a pilot program by the Australian Indigenous Minority Supplier Council (AIMSC) and Marriott is partnering with Message Stick, a company owned by indigenous Australians that will supply Marriott hotelswith technology, communications, and media services.

Without question, Marriott International recognizes that the "notion of diversity is continually evolving and for Marriott, it's about more than just tolerance." In the October 2009 Lodging Magazine cover story[6], global diversity officer and senior vice president of external affairs at Marriott International, Jimmie Walton Paschall detailed Marriott's diversity initiatives surrounding "inclusion" and placing a higher value on increasing a true comfort level among employees with different backgrounds and cultures.

Minority Ownership is also a focus and the Lodging article quoted Ray Bennett, senior vice president of lodging development at Marriott International that "by 2010, women or minorities will own more than 500 of Marriott's 3,200 hotels worldwide. Currently, 61 percent of all Marriott employees are minorities and 55 percent are women". Bennett, who oversees Marriott's diversity ownership initiative, points out that Marriott continues to increase its multi-ethnic ownership base, because it is vitally important that the owners reflect the diverse communities in which Marriott conducts business. Marriott sponsors a Diversity Ownership Education Symposium, held four times a year, for the purpose of introducing future hotel owners to the world of lodging.

Marriott recognition and awards are significant. Some of the 2009 awards[7] in the areas of diversity, inclusion and social responsibility include

These three very different hospitality companies each have exceptional stories and successes, based on making cultural diversity, inclusion and social responsibility a very real innovation in every day activities.

What are you doing at your hospitality business today?


  1. hwww.aramark.com/Documents
  2. www.aramark.com/SocialResponsibility
  3. www.aramark.com/AboutARAMARK
  4. www.businessweek.com
  5. www.kimptonhotels.com/HR/cul_history
  6. www.kimptonhotels.com/hr/fortune
  7. www.marriott.com/corporateinfo
  8. www.lodgingmagazine.com
  9. www.marriott.com/news/corporateProfile

Feel free to share an idea for a column at info@hoganhospitality.com anytime or contact me regarding consulting, customized workshops, speaking engagements … And remember – we all need a regular dose of common sense.

John Hogan is a successful hospitality executive, educator, author and consultant and is a frequent keynote speaker and seminar leader at many hospitality industry events. He is Co-Founder of a consortium (www.HospitalityEducators.com) of successful corporate and academic professionals delivering focused and affordable counsel in solving specific challenges facing hospitality today. www.HospitalityEducators.com is a membership site offering a wide range of information, forms, best practices and ideas that are designed to help individual hoteliers and hospitality businesses improve their market penetration, deliver service excellence and increase their profitability. Individuals wishing to contribute materials may send them Kathleen@HospitalityEducators.com. Special introductory pricing is in effect for a limited time that also includes a complimentary copy of LESSONS FROM THE FIELD- A COMMON SENSE APPROACH TO EFFECTIVE HOTEL SALES.

Consulting Expertise and Research Interest
1. Sales Management and training
2. Turn-around and revenue management
3. Professional Development for the Organization and the Individual
4. Customer Service
5. Making Cultural Diversity Real
6. Developing Academic Hospitality programs
7. Medical Lodging Consultants

If you need assistance in any of these areas or simply an independent review or opinion on a hospitality challenge, contact me directly for a prompt response and very personalized attention.

www.HoganHospitality.com
Your Hospitality Resource for Hotel Owners, Innkeepers, Managers and Associations

ORGANIZATION
Hospitality NetJohn Hogan, CHA MHS CHE
www.hoganhospitality.com/
USA - Phoenix, AZ Phone: 602-799-5375
Email: info@hoganhospitality.com

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