1. LEADERSHIP
Chapter 18
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

2. HMS – Leadership Strategy
Style (managerial and perception)
Plan/focus (mission, vision)
Communications (superior)
Motivational strategies
Business acumen
Traits
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

3. HMS – Leadership Strategy
Feedback Systems (open)
External (constituencies)
Internal (employees)
Foresight (trend reader)
Flexibility (change agent)
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

4. HMS – Leadership Strategy
Strong links (chain of command – HR)
Customer focus (responsiveness market)
Innovation (R & D/new/take risk)
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

5. Leadership Business Acumen Traits
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

6. Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

7. BUSINESS ACUMEN
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

8. Six Elements of Making Money
Cash generation
Margin
Velocity
Return on assets
Growth
Customers
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

9. Eight Questions to Assess Your Total Business
What were your company’s sales during the last year?
Are sales growing, declining, or flat?
What is your company’s profit margin? Growing or declining or flat?
How does your margin compare with competitors? And, How does it compare to those of other industries?
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

10. Eight Questions …
Do you know your company’s inventory velocity? Its asset velocity?
What is your company’s return on assets? (R = MXV)
Is your company’s cash generation increasing or decreasing? Why?
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

11. Skill Areas for Success
Sales forecasting
Inventory management
Merchandising
Product mix
Cash
Profit margin
Return sales/operating margin
Is your company gaining or losing against competition?
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

12. Making Money – Three Basic Parts
Cash generation
Return on assets (combination of margin and velocity)
Growth (consumers)
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

13. Return on assets has to be
greater than the cost of using your own or other people’s money
(the cost of capital).
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

14. “Growth has a psychological dimension—it energizes a business—attracts talent, fresh ideas, and creates new opportunities. It must be profitable and sustainable.”
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

15. Business Acumen Reduces complexity
Choose three or four priorities (no more than five)
Retain customers
Achieve money-making goals
Communicate goals clearly and often to all
Continually improve fundamentals
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

16. SYNCHRONIZE Right people in the right jobs
Deliver results consistently
Coaching
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

17. “A synchronized organization
is like a
champion rowing team.”
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

18. “Synchronization expands to capacity of the whole group.”
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

19. Synchronization Techniques
SOM’s (social operating mechanism)
Meetings (filters, priorities, ideas)
Conference calls (QMI – quick market intelligence)
(alerts, news up-dates, etc.)
Senior leadership meetings
Cut through complexity
Provide focus
Listen
Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

20. Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J

21. Hospitality Management Strategies ©2005 Pearson Education, Inc.
By R.A. Nykiel Upper Saddle River, N.J