GENERAL COMMENTARY – Articles

It is not always easy to be truly objective about oneself. When discussing career development programs, AETHOS often talks about the importance of a personal board of advisors – individuals who know the person in question from different walks of life. They can speak to professional as well as personal strengths or challenges. Besides mentorship programs, organisations can, however, also support their employees through other means.

The current economic and geo-political context is putting refreshed strain on the sentiment across many markets. The question now more frequently being raised by functional leaders is, “How do we as an organisation ensure to keep our workforce that we have so painstakingly rebuilt just months ago? And, “How do we foster loyalty when financial resources are being squeezed?” [...] Psychometrics can be applied to assess cultural fit, to spot development potential for executives, or to identify areas in which an individual is likely to be able to significantly drive performance. Looking at them through the lens of wanting to drive loyalty, the answers for the following five questions should be found [...]

Hospitality organizations cannot afford to drop the ball on sustainability. Clearly, they have done well in handling the immediate urgencies that have come out of the crisis, while addressing some fundamental sustainability practices and programs. Yet, there are seemingly more resources wished for, and required, to better engrain and align sustainable thinking within the organization and to proactively build sustainable skills. This is not only a question for a company’s HR executives: the onus is on an organization’s leadership team. Specifically, the leadership team must ensure that HR is not bogged down by the tactical implications and roll-out of initiatives that help ‘keep the head above water’ during a crisis. On the other hand, HR should continue to push for the necessary resources, and commitment, to embed sustainability. Whilst the financial and economic implications of the recent past are very real, so are those of the failure to address sustainability.

Focusing too much on overcoming a crisis, to returning to normality, runs the risk of losing sight of what the realities are. Do we not always have to somehow overcome one crisis after another? Do we not always have to fight for talent, to overcome an economic crisis, or to review operating costs because of raising food prices, rents, etc.? Do we not have to deal with either the consequences of entering or exiting a political union, a labour union, or some other type of interest groups? Are there not always, somewhere on the globe, some sort of conversations about protectionism as it relates to the local labour market — followed by talks about the need to open up the market to attract and retain people from elsewhere?

Mobile technologies have streamlined data collection more than ever but knowing how to link and act on that business information is the key here. Leaders should therefore not assume that near-instant learnings always entail fast solutions or outcomes. On the contrary, there is a psychological phenomenon known as the "speed-accuracy trade off," which implies that one can do things "quickly" or "correctly" but usually not both simultaneously. This means that organizations are well advised to start thinking early about the feedback loop, the information that they are interested in gathering, how they plan to use it, and the process (and time) it takes to build and develop such data.

Today’s employment environment is like nothing we have experienced before. The last pandemic happened in 1918, with a very different labour and economic atmosphere. There are no easy answers to a vast number of questions and nuanced circumstances. The travel industry has been particularly hard hit, as so many people were furloughed last year without any real answer about when they would return. As an “academy industry,” a large portion of these furloughed people were in line-level and entry-level management positions – the most vulnerable faction of the American economy.

Companies that apply new learnings of the enchantment economy only to product offerings or curated experience packages will fail to fully capitalise on the economic rebound and recovery. This is because the most basic component of guest experiences must also be considered, i.e., the people delivering on brand promises. Sadly, many hospitality organisations across the globe continue to struggle with entice employees back to work. It is reasonable to deduce that the economic recovery might be at risk if employees themselves are not ‘enchanted’. The obvious question becomes how businesses can effectively accomplish this.

“Organizations worldwide spend more than $350 billion on corporate training and education each year, but much of it is ineffective.” Companies will continue to look for more effective and efficient ways of delivering training and particularly for methods that support the transfer of learning into behaviors that drive workplace performance. No longer will the key measures of training be the amount of money a company invests or the number of hours each employee spends in training. Training expenditures need to answer the same question as any other business investment: Is there a justifiable return?

Post-pandemics leaders must ensure that their organizations stay intimately connected to a higher purpose and value system that reframes “loss, frustration, isolation, and adversity” as an opportunity to appreciate and model “gratitude, fortitude, humility, and service.”

I recently connected with Dr Thomas Kyritsis, Senior Lecturer at Le Cordon Bleu and Director for the Master and Bachelor programmes which the organisation runs together with Birkbeck College, University of London, Our conversation started on the impact of Brexit on education and the UK hospitality industry but quickly moved to other topics. Are industry executives still ‘taking the plunge’ to pursue their own entrepreneurial endeavours? If so, what trends or shifts in consumer behaviour should individuals keep in mind that might shape the industry …?

curiosity about the ‘hot functions’ is keeping both organisational leadership teams as well as individual executives preoccupied. How can one best reshuffle or complement one’s existing leadership team? Are there specific experiences or skills which could further enhance one’s own executive profile – and thus one’s ‘marketability’?

With local and regional lockdowns still in place, Romain and I caught up over a cup of coffee, using one of the now omnipresent video chat platforms which have, throughout the past 12 months, proven so helpful in maintaining ‘face-to-face’ contact and a sense of normality [...]. We started talking about sentiment amongst the hotel investment community, about the role of human capital and talent in the acquisition due diligence process and about prospects for 2021 and beyond.

Social and economic disruptions often shift people’s behaviours ― sometimes in small ways, other times more seismic. On this point, AETHOS conducted a ‘COVID Gap’ analysis for the C-suite within hospitality organisations at the end of last year. Yet, our ongoing interactions with industry investors and operators reveal that the pandemic has affected considerably more than an organisation’s senior leadership teams. Industry feedback consistently indicated that last year’s disruption clearly had a lasting impact throughout the organisational chart. We therefore examined empirical data to clarify the nature and extent of these apparent cultural shifts to organisations.

We are frequently asked by leaders in our industry what roles are ‘hot’ and where are we seeing movement? That curiosity is reflective of our highly competitive sector, one where individuals are eager to further their professional development but also an industry where scarcity of talent remains an issue – and the pandemic, perhaps counter-intuitively, will probably exaggerate this even further. Of course, one cannot deny that at present there is a larger than usual talent pool for employees to pick and choose from. However, the pandemic has also caused some considerable ‘talent haemorrhaging’, with executives having taken the decision to re-orient their career or to leave the sector for good. On top of that we have already witnessed well-capitalised industry players starting to ‘snap up’ talent so that they are ahead of the curve when it comes to driving and shaping the recovery.

The restaurant industry has been hit especially hard by COVID. Layoffs, closures, a shift to delivery and outdoor dining, as well as mergers and acquisitions have dominated the news this past year. Many executives and even board directors have taken pay cuts during this health crisis. We also have seen restaurant boards in the news over the last several months. For example, in March 2021, Mellody Hobson will become the first African American Chairwoman of the Board of a Fortune 500 company – Starbuck – which is long overdue.

Das vergangene Jahr 2020 hat vielen soliden Firmen den Boden unter den Fuessen weggerissen. Allerdings gibt es auch Unternehmen, die 2020 schwarze Zahlen geschrieben haben – teils aufgrund der Geschaeftmodelle, teils wegen der Agilitaet und Kreativitaet von Fuehrungspersoenlichkeiten und Managementteams. Diese Agilitaet beizubehalten bleibt daher sehr wichtig. Der Jahresbeginn ist ein guter Zeitpunkt, um das alte Jahr Revue passieren zu lassen und vom Erlebten zu lernen. Wir raten Unternehmen und Fuehrungskraeften immer dazu sich die folgenden drei Fragen zu stellen: 1. Was muessen wir weiterhin so machen wie gehabt? 2. Womit muessen wir anfangen, um ein positives Momentum zu gewinnen? 3. Womit sollten wir aufhoeren, um negative Konsequenzen zu vermeiden?

“I recognise,” Susan said, “one has to grasp opportunities when they present themselves.” The year 2021 is one such instance – “for HR professionals, it provides the chance to really leave a lasting positive impact on the way hospitality organisations are facing the uphill struggle, but also the opportunities that present themselves after a year of destruction to build back better”.

This past year has been a tough one; a year which was, for many, filled with suffering and loss and I for one, alongside most others, could not wait for 2021 to commence. In reflecting on the last 12 months, I have consciously decided to adopt a different mentality for what lies ahead. I recently came across a quote from the theologian Paul Tillich which read “suffering introduces you to yourself and reminds you that you are not the person you thought you were.” It was followed by the comment, “suffering teaches us gratitude.” Wow.

COVID-19 has drastically altered worldwide market conditions, with many countries on the brink of recession. The International Monetary Fund (IMF) expects the global economy to shrink by 3% this year, which would be the worst decline since the Great Depression of the 1930s10. A Gallup survey acknowledged this harsh reality by noting that 7 in 10 Americans now believe the US economy is either in a recession (40%) or a depression (30%). Additionally, workers’ have increased worries concerning being laid off and reductions in work hours, wages, and benefits — for instance, 27% of U.S. workers worry about being laid off, which is up from 15% in 201912. Moreover, remote workdays have doubled during the pandemic, which can threaten 'real life' office cultures; isolated environments can lower productivity by 17% for those who prefer the 'in-person' working dynamic.

The Annual Hotel Conference was held October 8th – in line with the overarching theme of ‘re-shaping’, ‘re-generating, and ‘re-inventing’, delegates were able to participate in an interactive roundtable discussion focused on professional development opportunities. The conversation centred around identifying and securing one’s next career step.

The hospitality industry finds itself in a state of flux. Many organisations have had to restructure – thus not only forcing many executives to re-evaluate their professional careers, but also the organisations themselves to more critically assess internal workflows, staffing levels and productivity, as well as general business strategies. ‘Change management’, ‘adaptability’ and ‘innovation’ are certainly the buzzwords which are front of mind.

Developing and implementing an ‘HR strategy2’ is a significant challenge for many organisations. Many of the HR executives have also stressed that part of this ‘big rethink agenda’ is a re-evaluation of governance. We have seen different strategies being pursued by countries across the globe – some have pursued a highly centralised strategy to fight this situation, others have decentralised decision-making power and let local governments/municipalities take the lead. The jury is still out as to whether or not there is one winning strategy, but HR executives are asking themselves: “Are there potential learnings for us from the different strategies being pursued by governments across the globe? During times of crisis or change, does a de-centralised structure trump a centralised one or vice-versa?”

As we fall into Fall, hospitality companies need to continue to think different. There is no playbook for a pandemic and what we may do one week can get turned upside down the following week due to a color scheme and algorithm that is supposed to tell us if we are “safe” to operate. Regardless of opinion and political views, one thing is certain – we need to continue to attract more customers and find new ways to activate revenue.

There is no doubt that Covid-19 has been devastating for the sector; however, it has also forced hospitality organisations and their CEOs to focus their attention, and to improve (amongst other areas) their ‘score cards’ as it relates to innovation and speed of action – traditionally areas which have not always been a forte for many of the internationally operating players. It seems results are starting to show, and this is to the credit of the incumbent CEOs.

As the UK prepares for reopening the hospitality industry, AETHOS sought to get a clearer picture of the sentiment amongst branded as well as independent hotel operators. The idea – to contrast the mood of the British hospitality industry with that of a country where hoteliers have already had a little ‘head start’ due to the earlier lifting of restrictions.

The first thing that came to mind when Marriott International furloughed two-thirds of its corporate and property staff was - Is this going to severely impact the Marriott brand and the relationship with their most important asset: PEOPLE. Many blue-chip companies in hospitality, gaming and travel followed suit. These same companies have spent untold millions over the past decade building both a customer and an employment brand. Would their reputation be severely impacted in ninety days?

Many hospitality students and professionals around the world recently participated in AETHOS’ series of development webinars. These sessions offered attendees the opportunity to complete the 20|20 Skills assessment to gain a personal SWOT analysis to help them navigate these challenging times of occupational crisis and change. Interestingly, the attendees consistently voiced certain concerns and follow-up questions.

Google the phrase “crisis leadership,” and you get over half a billion (yes, with a “b”) entries. It is one of the hot topics on social media now, with new entries appearing daily. Everyone in the business world is talking about it, and they all seem to characterize it the same way: that crisis leadership reflects a highly specialized skill set or psychometric profile that is significantly different than “everyday” leadership. The spirit or intent of these articles is certainly commendable. Indeed, leadership development remains as much an art as a science, and so data-driven guidance is critically important. However, the core premise of crisis leadership as it tends to be discussed is often misguided or blatantly incorrect.

Many hospitality students and professionals around the world recently participated in AETHOS’ series of development webinars. These sessions offered attendees the opportunity to complete the 20|20 Skills™ assessment to gain a personal SWOT analysis to help them navigate these challenging times of occupational crisis and change. Interestingly, the attendees consistently voiced certain concerns and follow-up questions.

"... it is difficult to imagine anything people will crave or need psychologically more than a healthy dose of enchantment following weeks of monotony, restlessness, and anxiety that accompany COVID-19 quarantines." But what exactly are the core elements of enchanting experiences? Many people have talked around this question, but few research studies have actually delved into the nature and relevance of enchantment as a psychological construct or consumer motivator. Perhaps the closest guiding principle used by the tourism-hospitality industry has been the notion of the ‘experience economy.’ This reflects the philosophy that businesses compete in today’s market by offering increasingly memorable experiences versus strictly focusing on the quality of products or services. Moreover, some research has modeled the ‘ideal’ features of such ‘memorable experiences.’ Namely, the trend over the past decade or so has been for consumers to seek experiences grounded in (i) aesthetics, (ii) authenticity, (iii) education, (iv) entertainment, (v) escapism, (vi) newness, and (vii) a sense of transformation.

It would be an understatement to say that the service-hospitality industry is experiencing unprecedented times. The global ‘Black Swan” event has arrived, and the light at the end of the tunnel appears the size of a pin hole. However, our industry is critical to the ongoing wellness, social connection, and enchantment of consumers, so it will certainly persevere ― hotels will re-open, cruise ships will set sail, restaurants will seat guests, galleries and studios will re-engage visitors, and the Vegas lights will again dazzle.

The government has effectively shut down the hospitality and travel industries. Yes, this will end, and no, it won’t go back to 'normal'. What will the new normal look like? I have heard all kinds of predictions from a V-shaped recovery to social revolution; a wide spectrum to say the least. The fact is no one can see the future and the past is not always a great predictor of future results. We at AETHOS have been spending some of our new-found 'down time' to think about the new normal.

‘Mental wellness’ is a broad topic that involves our emotional, psychological, and social functioning. In what is a reflection of the fast-paced and high-pressure environments that we nowadays live in, it has increasingly topped the management agenda of many boards and HR executives across the globe. In a high-touch and hugely interdependent business environment such as the hospitality industry, many executives had already voiced concerns about losing their ‘equilibrium’ before the current COVID-19 crisis.

As an evaluator of leadership capability, I have been asked what it takes to lead in a time of crisis, such as COVID-19. My answer has been simple, “you must be equal parts realist, pragmatist and optimist. This mixture of archetypes is essential in dealing with the fast moving and unknown outcomes of a crisis.

The COVID-19 pandemic has now become the most disruptive event in our lifetime. Understandably, virtually all organizations are bogged down in “immediate” decision-making. It is all tactical right now, because there is no place to run and no place to hide; there is no safe haven. But once the immediate circumstances settle, will your organization be hard-wired for panic or innovation?

People say every generation has its defining moments; often shared experiences which forge a common mentality, attitudes and character traits. Perhaps 2020 represents that turning point for the future generation of business leaders as Covid-19, however awful it is, has helped all of us to remember that we should be putting the interests of the ‘greater good’ first.

Investors, and the world in general, are rightfully nervous. However, in this instance, and unlike in past (economic or political) crises, central banks are unlikely to be able to help businesses – this is a consumer confidence and demand issue. When looking at the C-suite of hotel companies, there should therefore be some comfort in the fact that these are experienced and tried-and-tested CEOs.

The ‘up-and-comers’ are advised not only to be independent thinkers but to be more mindful as well. ‘Mindful’ is being used here with the intent to be aware of one’s own bad habits – or to make sure not to develop them in the first place.

Most industry leaders have established relationships with a mentor or a very select group of personal advisors for whom they can call upon for thoughts, advice, or direction as it relates to their career. AETHOS has often highlighted the importance of such ‘personal boards of advisors’. For new entrants to the industry, though, it is often difficult to know who to choose as a mentor or role model. It is no surprise, then, that during last year’s “Young Hoteliers Summit”, which annually gathers more than 200 students from hospitality universities in over 20 countries, this issue was raised the most in the one-on-one discussions.

Most industry leaders have established relationships with a mentor or a very select group of personal advisors for whom they can call upon for thoughts, advice, or direction as it relates to their career. AETHOS has often highlighted the importance of such ‘personal boards of advisors’. For new entrants to the industry, though, it is often difficult to know who to choose as a mentor or role model. It is no surprise, then, that during last year’s “Young Hoteliers Summit”, which annually gathers more than 200 students from hospitality universities in over 20 countries, this issue was raised the most in the one-on-one discussions.

What does the future leader look like? In a business environment growing more complex and ambiguous almost by the minute, leaders will need skills that allow them to navigate quickly and well across multiple information and decision-making streams. As a general rule of thumb, here are some 'top tips':

We are approaching year end and organisations will have set their strategies for 2020. In the travel and tourism sector, chances are that executives and senior leaders will have spent a significant amount of time talking about talent, or the lack therefore. The cruise sector, in particular, is facing an unprecedented challenge – to deliver on the set goals and expansion plans knowing that, at present, they do not have near enough staff to execute against the growth strategy

In this our thirteenth annual study of gaming industry pay, we evaluated the performance of 32 public gaming companies in determining whether a CEO deserved his or her pay. The AETHOS pay-for-performance model compares significant financial metrics such as company size (market cap), stock appreciation (rise in stock price over 3 years), EBITDA growth (over 3 years), and total direct compensation (combination of salary, bonus, LTIP & other). Our findings are illustrated below.

Most industry executives recognised that a cooling down of the market is inevitable. Yet, amidst a search of a ‘safe haven’ – fuelled to some extent by perceived uncertainty created by, for example, political inertia and/or drastic changed in policy making in certain parts of the world – Central Europe and, in particular, Germany are continuing to thrive. Here, the strong investor appetite coupled with the favourable interest rates have propped-up prices and somewhat ‘masked’ the turbulent times at hand. So, despite executives on the buy-side complaining about prices being too high to allow for the right returns, and irrespective of the economic and political ‘clouds’, the lodging sector appears to retain its optimism – at least for now.

Today’s restaurant industry is extremely competitive. More than ever, brands rely on technology to capture market share while, at the same time, speak to their multigenerational customer base. How to best navigate these waters falls on the company’s Chief Information Officer (CIO). Gone are the days when the CIO focused solely on internal infrastructure. Today’s CIO must be focused on customer-facing technologies, e-commerce, social media tech, cybersecurity… all while upgrading legacy POS, inventory, and labour management systems. With this shift in focus comes a shift in strategy when identifying a restaurant brand technology leader for the future.

When traveling these days, it’s not so much about planning where you might be going, but about the experience getting there. There are new apps to help you along the way with fun, time-saving features. Without listing the “usually suspects,” here are a few new apps that might pique your interest and even start a dialogue:

Findings published by the Harvard Business Review, built on research by the McKinsey Global Institute (MGI), put the hospitality industry at the bottom of 22 surveyed sectors as it relates to ‘digital advancement’. This last spot is shared with, among others, the mining industry. This is not good news for the hospitality sector – and its executives are aware of it.

Last week, many of the international senior cruise line executives gathered at Seatrade Europe in Hamburg, Germany. Industry leaders exchanged thoughts and insights with port and destination representatives as well as land-based tour operating partners. Overarchingly, “sustainability” was the topic of conversation – everyone agreed that consumers and cruise businesses alike, as well as the industry’s various partners and travel intermediaries, have grown increasingly concerned about social and environmental impacts of tourism and have started to demand, and implement, concrete action plans addressing key sustainability issues.

Later this month the 25th Annual Lodging Conference will be held in Scottsdale, Arizona, an event that historically caps off the “conference year” for many in the hotel business. It is a time to reconnect with industry friends and colleagues, but it also gives us a few days to pause and reflect on the past year and speculate on the year to come. Heading into the event there are a number of agenda items that pique our interest, so let’s dive in.

Regardless of where we are in the hotel cycle, the importance of high-performing asset management is critical to the success of any hotel owner. Over the last 20 years I have had the pleasure to work closely with this community assisting clients, such as public REITS and private equity groups, recruit high-performing executives, allowing owners to maximize value for their hotel property and/or portfolio. My thoughts regarding some important human capital misconceptions in the world of asset management will hopefully help shape the future for 1) hotel owners to attract and retain top talent and 2) for asset management executives thinking about charting their future career path.

The US Army War College introduced the term VUCA during the Cold War ― a time when the world was facing especially high levels of volatility, uncertainty, complexity and ambiguity. Since being introduced, this framework has become a trendy acronym that strategic business leaders regularly use to assess the suitability of their environment or market for launching new products, entering new markets, and embarking on other key initiatives. It allows them to pinpoint where the four challenges in their respective business are situated or skewed, as well as how to create appropriate responses.

"People are the product if the hospitality industry" – this most certainly holds true for the cruise sector. Without the continuity of the talent bench-strength cruise companies would be unable to execute on their ambitious growth plans. As the fight for talent has continued and intensified throughout the last few years, cruise companies have started to embrace an approach which can be coined as "future-casting" – in other words, rather than focusing on proven track record and/or domain knowledge, they have moved away from assessing task competencies. This shift in their recruitment efforts has enabled them to identify people with potential who are adaptable, inquisitive and knowledge-thirsty and who perform well in high-pressure work environments such as the cruise industry.

Extreme competitiveness in today’s business world demands that hotel companies consistently outthink and outpace companies within and outside their immediate hospitality verticals. Such competitors include cruise lines, home-sharing, and other luxury or niche experiences like “glamping,” all of which constantly strive to dominate market share. Identifying and securing superstars for senior leadership roles is the cornerstone for ongoing company performance in branding and profit share. Here, companies must be forward-thinking by looking at the “best-in-class” talent from other segments and specifically those within the wider hospitality industry. This is not a new idea, but with the competitor set constantly evolving and broadening, hotel companies need to raise the bar on a continuous basis. This best practice makes sense and can be extremely effective when implemented thoughtfully according to a well-defined strategic purpose.

Extreme competitiveness in today’s business world demands that hotel companies consistently outthink and outpace companies within and outside their immediate hospitality verticals. Such competitors include cruise lines, home-sharing, and other luxury or niche experiences like “glamping,” all of which constantly strive to dominate market share. Identifying and securing superstars for senior leadership roles is the cornerstone for ongoing company performance in branding and profit share. Here, companies must be forward-thinking by looking at the “best-in-class” talent from other segments and specifically those within the wider hospitality industry. This is not a new idea, but with the competitor set constantly evolving and broadening, hotel companies need to raise the bar on a continuous basis. This best practice makes sense and can be extremely effective when implemented thoughtfully according to a well-defined strategic purpose.

Over the first half of this year, I have been able to network and brainstorm with senior executives in the hotel, travel, and technology spaces. Although the conversations all came from slightly different angles, there were many similarities that all drove toward one core topic — the experience. Interestingly, “the experience,” as we have deemed it, didn’t just relate to the forward-facing guest or customer, but also to the employees and their needs and wants. The other common denominator, and this is not surprising, was the need for all-things-tech-related to be mobile-friendly. As we move into the year 2020 and beyond, 5G networks will be the new normal; speed, responsiveness, and immediate feedback will be at the forefront of every experience for the guest and employee.

At present, business podcasts, industry articles and news bulletins are all about ‘sustainability’. The fact that the topic has established itself as a regular head-line feature across different media outlets is very commendable; yet, conversations appear to be somewhat one-sided. We read about initiatives to ensure economic benefits trickle down to communities which are otherwise left behind, to reduce pollution levels and/or to safeguard the environment. In short, most news coverage is about ‘pre-packaged solutions’ – but jumping to solutions will never get rid of the underlying cause of a problem. Should the conversation therefore be more multi-faceted and deeper?

Huge faith is placed in data, often blindly. People want to believe the black and white figures in front of them; it feels safe and reassuring. In the hospitality sector alone, data have spawned a whole industry of firms that specialize in collecting, housing, distributing, compiling and helping users to understand data – data related to bookings, food cost, productivity, guest reviews, water usage, market demand, average spend, CRM, etc.

One of the biggest pitfalls for organisations is to spend money and set up an AI infrastructure but not be able to use the outputs or insights gained – based on either incorrect avenues pursued that yield in irrelevant or difficult-to-use data points or based on a lack of in-house skills to “make sense” of the AI outputs. Understanding how “digitally mature” an organisation is and how ready its employees and executives are to implement “data science” should, consequently, be one of the first assessments one undertakes when looking at applying AI within an organisation.

In the end, leadership is as much art as it is science. Constant practice is necessary to keep your leadership capabilities sharp and relevant. Success in leadership today requires thoughtfulness, caring and compassion. Poor leaders may win occasionally, but never in the end. Take a tip from The Dalai Lama, and become the best leader you can possibly be.

It feels as though hotel food and beverage has received a lot of renewed attention in the industry as of late. Twenty years ago, around the turn of the millennium, we experienced a reinvention of the hotel fine dining model with the introduction of big name ‘celebrity’ chefs into hotels through outsourced, leased and/or licensing deals. One of the most prominent of such deals was that made between Blackstone and Gordon Ramsay at Claridge’s in London, which spawned a decade of followers as hotel ownership succumbed to the old adage that “hotels can’t do F&B” and instead opted to give the space over to someone who supposedly could.

True servant leaders will pause and then decide on a course of action geared by wanting to achieve best outcomes for the greater good of their teams and their perspective company. So, the real million-dollar question that the up-and-coming talent out there should ask itself is: “What impact will this action or response have on my team or company culture?”

Google ‘cruise industry’ and ‘sustainability’ and you will get approximately 100,000 hits. Those search results focus mostly on the three key pillars of sustainability: (1) economic, (2) environmental and (3) social. Here, we are suggesting that a fourth dimension should be added; namely, labour.

Taking the opportunity to sit down and ‘talk shop’ with Marloes Knippenberg, CEO of Kerten Hospitality, AETHOS explored some key leadership questions. If the hospitality industry is continuously redefining itself, as well as the boundaries of the areas in which it operates, does the same hold true for leaders and their management styles?

One wonders [...] if the days of the expatriate are numbered and if those entering the business 10, 20 years from now will have the same options open to them. My visit to Singapore also took in the HICAP Update conference. During the ‘Investment Outlook’ panel, when asked to name his number one cost-saving measure in relation to his firm’s hotel portfolio, one of the region’s leading investors half-jokingly replied, “Get rid of the expats.” While this raised a chuckle from the audience (at least 50% expats themselves), there is some seriousness in his statement that reflects an increasing move to localise many management positions in the hotel sector. The fact is that foreign executives are expensive when compared to local hires, often requiring significant additional cost above base pay in terms of allowances and benefits, such as housing, schooling, relocation, insurances, etc. With labour costs typically being one of the heaviest line items on a P&L, it is no wonder that hotel owners are keen to lessen their dependency on imported expertise.

Integrated casino resorts are moving closer to becoming a reality in Japan. While the Integrated Resort (IR) Implementation Bill was passed by Japan’s Diet last summer, it is anyone’s guess as to when the actual licenses, expected to be granted in Osaka, Tokyo, and Yokohama, will be awarded. In addition to one or two local Japanese firms such as Sega Sammy and Konami, the likes of global casino players MGM, Las Vegas Sands, Wynn and Caesars, are all pitching and lobbying furiously to win one of the coveted sites. Forecast to become the second largest gaming market in the world after Macau, and at least twice as large as Singapore, Japan has tentatively edged over the last few years towards legalising casino resorts while at the same time seeking to impose certain limitations in order to appease a nation concerned with the dangers of gambling addiction. Industry and government are making a concerted effort to overturn a negative perception of gaming and to better educate the general public on what exactly an IR comprises. In other words, pitching them as large scale entertainment venues centred on a comparatively small casino - in fact only up to 3% of floor space will be devoted to gaming. The huge amounts of patience, money and resources required on the part of these hopeful casino groups to get this far in the bidding process gives some idea as to the size of the potential payoff that is on offer.

AETHOS conducted a recent study of the leadership teams at some of the UK’s prevalent fast-casual and casual dining restaurant operators. The study indicates what many have pointed out for a while now – spearheading a restaurant company is a very ‘hot seat’ indeed.

Results from a recent gender diversity study I conducted for the lodging industry indicate that of the 238 board seats available among the 28 U.S. lodging companies, only 51 were occupied by women (21%), a woefully low number. If we live in a world where women account for 80% of consumer spending and a multitude of credible studies point to a correlation between greater gender diversity and strong board performance, it is certainly time for us to address this issue head on. I have personally facilitated countless client board meetings and can say with unwavering confidence that gender diversity within the boardroom leads to first-rate ideation and collaboration. Here are some of my thoughts to stimulate change within the lodging industry.

February saw, for the first time, the Global Restaurant Investment Forum (GRIF) come to Europe. [...] Taking the opportunity to be together in one spot, AETHOS caught up with Monique Borst over a cup of coffee in Amsterdam. Monique is a seasoned industry expert and can draw on more than 20 years of experience in food service and food retail. She has worked with world-recognised brands such as Harrods, Sodexo and the Compass Group, and has held commercial as well as board-level functions. Nowadays, Monique uses her corporate and start-up experience to help restaurant entrepreneurs kick-start and/or expand their business.

February saw, for the first time, the Global Restaurant Investment Forum (GRIF) come to Europe. [...] Taking the opportunity to be together in one spot, AETHOS caught up with Monique Borst over a cup of coffee in Amsterdam. Monique is a seasoned industry expert and can draw on more than 20 years of experience in food service and food retail. She has worked with world-recognised brands such as Harrods, Sodexo and the Compass Group, and has held commercial as well as board-level functions. Nowadays, Monique uses her corporate and start-up experience to help restaurant entrepreneurs kick-start and/or expand their business.

Hoteliers have historically considered the Food & Beverage (F&B) department as a loss leader, a ‘must-have’ to appease paying hotel guests. To put it bluntly, money was to be made on the rooms side of the business. Yet, times and attitudes have changed. Clients have become more discerning and thirstier for authentic and local experiences to tease their taste buds whilst hoteliers have recognised that their in-house F&B offering can be a point of differentiation.

Over the years we have seen many iterations of private clubs. From ale houses and social centers in key gateway cities across Europe, to golf courses and tennis resorts across the United States, private clubs continue to expand, grow and cater to those looking for a full-service experience. Today, it is less about a single activity or event and more about engaging with the membership and offering them a place to work, meet, play and eat – the full spectrum of offerings.

We are in week eight of the new year and it is fair to say that 2019 is well and truly underway. But ask yourself this, does the same hold true for your own new year’s resolutions…? Chances are that the answer to this question is a resounding “no”. As part of our personal brand building and professional visibility leadership series, we have therefore decided to inspire hospitality executives and to provide them with the one new year’s resolution which should be easy to live up to – and, if pursued rigorously, it can proof powerful in helping executives to enhance their own personal brand.

The desire to be with and around other people is an innate human characteristic. In evolutionary terms, humans quickly worked out that strength in numbers equalled survival, and this need to seek connections and to form bonds with others has remained within us over time, even as the threats to our existence have altered and diminished. The need to band together to fend off attack or to kill for food has been replaced by a want for social interaction and companionship. For most, school is the first place we begin to form relationships with like-minded fellow humans and where we form groups, teams, cliques and gangs. In 19th century London, the desire to maintain these friendships beyond school and university gave rise to the gentleman’s club. These clubs were formed on a membership basis open only to those considered to be of ‘gentleman’ status and centred on a common interest such as politics, art, sport, travel, university or section of the armed forces. As the British Empire spread so too did gentleman’s club – to India, Hong Kong, and Australia. Eventually, women were allowed to follow suit and form their own clubs. Henceforth, these exclusive clubs came to be known as ‘private member’s’ clubs.

The tech era has highlighted the importance of data mining and data wrangling and has made these processes critical when it comes to decision-making and even tactical execution. It is easy to assume that evidenced-based insights and models would only apply to business metrics and issues, but the burgeoning science of Human Resources shows that “big” data can help in “big” ways to positively impact people metrics and issues. The use of legally defensible psychometric assessments in hiring and succession planning offer clear examples of this.

Whether we are talking about a nation, a corporation or a small start-up, if the elected leadership is not challenged or upheld to its formal duties, infrastructural aspects may either start to derail or fractures appear which are fed by a growing disgruntlement with certain behaviour or decision-making. It is easy to find the fault in the person at the helm of a nation or an organisation, to brandish this particular individual as the “trouble-maker” or to call for new leadership to step in on the basis that the incumbent has not fulfilled their promises. But we are forgetting that there is a “collective responsibility.” As we are seeing in the current political landscape, leadership is in fact quite often following through with what they set out to do in the first place. We have just not fully listened or considered the consequences of what has been suggested as the course of action; nor has leadership clearly pointed it out to us. Thus, there appears to prevail a culture defined by superficial and oft meaningless conversations. Yes, of course there are also voices of concern or, at times, a challenge – yet, it seems that at the first hurdle, people are simply giving up.

We have previously explored the fundamental association between relatability and professional visibility. Subsequently, we have further defined that concept of professional visibility and segmented it into three components: credibility, confidence and charisma. Here, we examine the notion of ‘engaged leadership.’

Over the last several years, the function of the Chief Technology Officer (CTO) has become increasingly important to the success of almost every type of organization. Yet, despite its importance, it is still rare for hospitality firms to provide a board seat for this vital function. Consequently, the public profile of CTOs is often limited. So, what are the building blocks that form the profile of a successful CTO? And, what are the character traits that hiring committees should be looking for in a CTO?

To leverage technology to its greatest potential in the hospitality sector will require thought leaders who are open to seeing it from a different point of view - ask any hospitality executive about technology and their thoughts are likely to jump to distribution, sales and marketing, automation and organizational effectiveness. Our sector has done well in using technology to improve processes and to achieve greater efficiencies. In short, we have succeeded in effectively applying technology for, predominantly, transactional purposes. But there is so much more that could be done.

Last month, we investigated what it takes to be visible in the professional market place and concluded with the suggestion that “visibility” is only worth something if it is tied to “relatability”. In this article, we stipulate that the former and the latter should be complemented by “executive presence”. Google “executive presence” and you’ll be “inundated” with 163 million hits. You’re bound to learn useful tips if you can somehow sift through this avalanche of material to find the tried and true nuggets of wisdom. Or, you could take the Dale Carnegie’s course on public speaking or immerse yourself in leadership books that aim to describe and nurture executive presence reportedly from academic perspectives.

I’ve had the pleasure of knowing Shane Green for more than a decade. Over the course of his career, Shane has held leading operational positions at some of the most luxurious hotels and hotel companies around the world. Recently, he has re-focused his efforts with his training solutions company, SGEi. As President and Founder of SGEi, Shane leads a team of professionals who inspire iconic brands ranging from NBA to Net Jets Inc. and BMW to MGM Resorts International to “reprogram” their employees’ experiences, mindsets, and service habits to create loyal customers and raving fans.

Following our announcement last month, as part of a new “pulse” leadership mini-series, AETHOS is taking a closer look at ‘executive presence’. The purpose – to draw each and every reader’s attention to its own level of self-awareness and for everyone to critically ask themselves: “What are the competency sets which help me stand out from the crowd?” and “Which attitudes and personal habits should I hone to elevate my profile in the industry?” To kick-off this series, AETHOS investigates what it takes to be visible in the professional market place and suggests that ‘visibility’ is only worth something if it is tied to ‘relatability.’ If people cannot connect with you, or have difficulty in ‘reading you,’ you will not be able to leverage any professional visibility that you might have.

Welcome to the ‘urban, global jungle’ better known as ‘today’s job market’. Whether you’re new to the workforce or a developing leader eager to climb the corporate ladder, you’ve probably been told or read somewhere that ‘survival of the fittest’ in this jungle means being career-focused and fixated on gaining an edge, discovering your metaphorical hedgehog, carving a competitive advantage, or establishing a personal brand.

Following a breakfast meeting with a senior executive from the UK restaurant industry, my attention was drawn to the fact that a small number of Food & Beverage businesses has started to hire marketers for their most senior human resource roles. Although this is not yet an overwhelming trend in hospitality, I wondered whether this approach made sense from a competency perspective. And, if so, would others follow suit? Could this be such a “butterfly moment” – one that defines roles to come as well as HR and talent management best practices for the greater hospitality industry?

A 2009 article in Supply & Demand Chain Executive was perhaps the first authority that began publicly highlighting the increased emphasis and value-proposition of having a Chief Commercial Officer (CCO) in the C-Suite. This role has complexity, nuance and diversity that transcends that of a President, Vice President or even Chief Operating Officer. The aim is to better harness the entire commercial power of an organization and brand. In simple principle, this means being responsible for aligning commercial strategy and the development of an organization, but in practice it entails a myriad of competencies and activities tied to marketing, sales, product development and customer service, which when properly integrated, drive business growth and market share. The role can be notoriously difficult to fill with a “superstar” because it demands a professional with domain knowledge of the relevant field combined with strong marketing, financial, business development and technology skills. Arguably the role becomes even more specialized in the hospitality industry, whereby internal and external brand promises hinge on a dedicated people-first mentality.

Executive search clients consistently voice concerns about candidates who appear to be “job-hopping”– i.e., frequently move to new opportunities after relatively short stints. These concerns are reasonable and can be justified in many circumstances, although other times, movement early in an individual’s career can be both beneficial and rational. For instance, one AETHOS placement talked about how he sought different companies and experiences in the beginning years of his career to make himself more well-rounded and adaptable in the future. Aiming to understand better these different views on job-hopping, an analysis was conducted on the career paths for eleven of our recent placements in hospitality real estate related positions, including Development, Acquisitions, and Asset Management roles. The idea was to gauge the first eight years of each placement’s career for the number of different companies represented. This does not include multiple positions within the same company, graduate schooling, or internships.

Hospitality companies can profitably study and learn from the business, branding and technological lessons born from the cruise sector. What this “niche” accomplishes is nothing short of remarkable - it is a unique amalgam of hotel, restaurant, gaming, entertainment and travel-tourism components, all packaged within a mobile resort that is typically global in its operations. It is also a fierce competitive force for the broader hospitality industry. According to the ‘2018 Cruise Industry Outlook’ report published by Cruise Lines International Association (CLIA), the demand for cruising has increased over the last five years by nearly 21%, with 27.2 million passengers expected to cruise in this year alone. The vast majority of passengers still hail from the US, followed now by China and Germany. This means that growing the market share is an opportunity to be tackled by the various cruise lines.

Quick quiz, what do these leaders have in common -- “Jack Welch of GE, Steve Jobs of Apple, Mark Zuckerberg of Facebook, Steve Wynn of Wynn Casino Resorts, Elon Musk of Telsa, Richard Branson of Virgin, and Donald Trump of well… Trump”? They are all past and present individuals that arguably have developed their company brands around “cults of personality.”

Optimism Prevails as Artificial Intelligence and Process Engineering Provide Untapped Upside Potential. Undoubtedly, though, the restaurant sector across EMEA is facing numerous challenges. These range from higher business rates and landlords wanting to up rents to significant changes in the consumer behaviour, technological advancements altering the business landscape as well as broader socio-political issues. The latter ranges from Brexit in the UK, which continues to put a strain on prices, costs and the supply chain, to continued localisation efforts in some of the Middle Eastern markets, which sees a large expat community leaving. In both these markets and instances, the consequences of the socio-political movements has also had a marked impact on the availability of qualified talent. Moreover, there is of course more competition in the form of new brands. Many of those new concepts, as well as some of the more established players, have sought private equity money to help speed-up their growth plans. Burdened with an already high pressure to perform and deliver returns on investment, some of these organisations are now beginning to falter in the current difficult trading environment. In short then, it is tough out there and trading conditions are not the best either. So, why the optimism?

The setting was Las Vegas in early March of this year, and my destination was the well-organized, annual conference devoted to the major HR issues affecting the hospitality sector. Congratulations to the Cornell University planning committee and the sponsors who produced this event. It has taken me more than one month to digest all the presentations, free-flowing ideas shared during networking sessions, and the multitude of vendor claims. It has also taken time to process all the feedback received from our breakout session on assessment, as well as our panel on some of the most hot-button topics facing companies.

My son has recently started to pester me to buy him an iPhone X. A couple of his friends’ parents have Apple’s latest smartphone and for some unknown reason he thinks this means he has a chance of acquiring one for himself. I think deep down he knows that there is more likelihood of his beloved Arsenal finishing top of the Premier League this season than him getting an iPhone - any phone for that matter - but still he keeps trying to wear me down. He is 8 after all. Of course he has no interest in an iPhone for it’s phone capability but rather for it’s i-ness, specifically, its ability to play FIFA Mobile. He is not alone however. Over 1.5billion smartphones were sold around the world in 2017 and yet, in my completely unscientific opinion, people seem to be using their phones less and less for the purpose they were designed for, namely speaking to other people.

The hospitality industry is one of the world’s largest employers; the cruise sector is arguably one of the sub-segments which records one of the strongest growth rates (note: The Cruise Line Industry Association, CLIA, predicts 27 million passengers by the end of 2018). With that in mind, it is no surprise that everyone wants a piece of the pie. Although the market is dominated by just a few big players, new competition is muscling in. AETHOS recently assessed what it takes for one of those new competitors, the traditional lodging operator, to move into the cruise sector – looking predominantly, at human resources and talent management. One key decision that we have not yet discussed is the relevance of the country where a cruise ship is registered – does or does it not impact the ability to attract and retain talent? Could it have an adverse impact on employer branding?

GDPR. Four letters of the alphabet that are proving to represent one of the biggest challenges facing businesses in 2018. The General Data Protection Regulation (GDPR) comes into effect on 25th May across the European Union (including the UK) and impacts any organisation that operates within the EU and/or that processes data of EU citizens wherever they may be in the world. How organisations hold, store and process personal data will now be subject to higher, and more consistent, scrutiny with the potential penalty for non-compliance being significant.

All people and places give off “vibes.” Forming impressions of other people depends on much more than what we consciously see or hear. One UCLA study found that up to 93% of communication effectiveness is determined by more subliminal, nonverbal cues. Our impressions of places are created in a similar manner. In hospitality settings, “staff-guest interactions” are critically important determinants of positive guest experiences, but so too are the unspoken aesthetic aspects that define the physical environments that set the stage for hospitality services.

In a meeting with the CEO of a student housing owner-operator just before the holidays, our conversation steered from ‘anticipated challenges for 2018’ to local politics and frustrations caused by difficulty in getting through planning permission for new-build developments. The conversation reminded me of others that I have had with hotel companies and developers as well as restaurant operators in the recent past – they all referenced the rise of ‘NIMBYism’ as something that has caused a lot of frustration to them and their companies.

One of the most difficult and humbling things for us human beings is to admit we don’t know something. Our brain has evolved over thousands and thousands of years into a three-pound, organic computer with the sole task of “making things more certain.” Gaining mastery and a sense of control over our physical and psychological environments is a natural, inherent human drive.

This year marked the 4th annual meeting between academics and industry practitioners at Cornell University in beautiful upstate New York. Like past years the October conference was well-attended, and the speaker slate was varied albeit markedly skewed toward hotel and lodging. Despite this, there was enough general content that was applicable for businesses across the spectrum of hospitality.

It’s not speculation, opinion or assumption…. the fact is that the common mantra of “Hire for attitude, train for skill” is a misguided perspective on hiring, promotion or performance. Many so-called attitudes, motivational or temperament factors are in fact learnable skills themselves. Research consistently reveals that personality tests are poor predictors of workplace performance, whereas measures of General Mental Ability (reasoning, planning, abstract thinking, comprehending complex ideas and learning quickly) and role-specific skills are stronger and more consistent predictors of performance. Think about it, cognitive and emotional intelligence underpin ability and speed to new learn things, as well as capacity to adapt to new circumstances and handle stress. Personality factors, on the other hand, have been shown by independent research to be an inconsistent predictor of professional performance. It seems counterintuitive, but personality factors per se do not drive success in the workplace.

One of the greatest coaches in history, Vince Lombardi, once said, “Perfection is not attainable, but if we chase perfection we can catch excellence.” We love Lombardi but in this instance we profoundly disagree. We believe that perfection is all around us. That said, we do believe that perfection is fleeting, given that the universe—and the nature of the reality in which we live and work – is in a constant state of flux.

One has to applaud the blue-sky thinking of Ritz Carlton's management team for having the guts to 'go for it'. Whilst the brand continues to proliferate across the globe in city and resort destinations alike, and remains an estate agent's and developer's darling when it comes to branded residences, it has not yet, to date, conquered the other 72% of the world - which is the percentage of the world covered by oceans. This is about to change with the launch of Ritz-Carlton Yacht Collection in 2019.

It’s no secret that the timeshare industry has witnessed its fair share of change over the last few years, especially with all the consolidation and spin-offs. Just recently, Wyndham Worldwide (NYSE: WYN) announced it will be mirroring the actions of Marriott and Hilton and will be spinning off its vacation ownership division, ultimately resulting in two publicly traded companies.

Mark and I spoke about how a significant number of employees in the UK received their biggest pay rise to date as the National Living Wage leapt to £7.50 an hour on April 6th, 2017. In line with Chancellor Philip Hammond’s Autumn Statement and Spring Budget announcement, more than two million employees over the age of 25 benefited from the 4% increase. Further to this, 21- to 24-year-olds received a rise of 10 pence per hour. This is in a bid to reach the government’s target of £9 per hour by 2020 for over 25s, with further demand to extend this increase to 21- to 24-year-olds. According to Tahola, an industry’s leading business analytics provider, this could result in operators facing an annual increase of £100,912.50. However, it’s not just labour costs that will hit operators; planned increases in employer pension contributions from 1% to 3% could elevate the cost to operators to more than £109,000 by 2020.

AETHOS Consulting Group Managing Director & CEO Keith Kefgen and Axis Global Logistics Managing Partner Wesley Cheringal sat down earlier this week at the 39th Annual NYU Hospitality Industry Investment Conference to discuss the importance of their strategic partnership. Kefgen and Cheringal share insights on why Axis, a logistics and supply chain solutions company, is important in the hospitality sector.

Agnelo Fernandes serves as Senior Vice President of Sales & Marketing for Terranea Resort. Providing leadership as brand champion, he actively serves on Terranea’s strategy committee, as well as regional and corporate marketing committees with Two Roads Hospitality. With more than 25 years of experience, Agnelo held senior executive positions with brands including Canyon Ranch, Sonesta Hotels International and Rex Resorts.

Industry observers will have noted that restaurant organizations worldwide are facing a more crowded market space. With it comes a plethora of old and new challenges. Those that restaurant entrepreneurs and larger corporations have struggled with for decades, and that will continue to be “hot topics” going forward, include, for example, skill shortage, succession planning and retention as well as fierce competition from the “new kids on the block” (i.e. the up-and-coming and sexy start-up brands). “How do we keep our staff?” and “Who is the person best equipped to handle the expansion plans of our business?” are questions discussed at most senior management meetings.

The issue of diversity, and the lack of it, has popped up frequently in recent conversations with leaders in the hospitality world to the point where it seems that if a candidate for a job is neither female nor of a minority ethnicity, then their application is at a disadvantage. Grey-haired white men continue to be the largest faction of leaders sitting around most hotel company boardroom tables. The good news is that a lot of these companies are self-aware enough to recognise that the composition of their leadership needs to better represent their customer and employee bases. In the same way that a fish rots from the head down, the thinking goes that changes at the top of the organisation will percolate down through the rest of the employee body, as staff become inspired by the leaders above them.

The hospitality industry remains one of the backbones of the economy in the Middle East, and the food and beverage (F&B) sector is certainly contributing its fair share. In the past, many regional businesses opted for an internationally recognised concept, but, nowadays, the market has matured and witnessed diversification. The UAE, in particular, has become a foodie destination in its own right and there is a notable appetite – from investors, developers and the consumers – for home-grown concepts. Not surprisingly, new outlets have sprung up (from ‘Cougley,’ to ‘Cocoville,’ to other home-grown start-ups such as Folly, Hikina, Matto Italian Restaurant, Publique or Ruya). The list is endless.

There are five enduring core issues (and potential pain points) in HR – Compliance, Compensation and Benefits, Organizational Dynamics, Selection and Retention, and Learning and Development. Of course, each can be impacted by real or perceived changes in market conditions and advances in HR theory and practice. Thus, we have the rise of specific buzzwords and increased attention to particular hot-button topics.

At last month’s International Hotel Investment Forum/Berlin, the event organisers arranged a panel discussion with four entrepreneurs and (co-)founders of new hotel concepts. The question up for debate: “Where is the innovation?”. [...] I caught up with Dr. Nikolai Jaeger. Nikolai is an entrepreneur and business founder, currently managing MQ Real Estate, a development company which specialises in and builds modular hotels on top of car parks, above parking lots and on top of existing buildings in European cities.

"Some of the CEOs and leaders of big lodging brands today are not professional hoteliers. Is this a disadvantage or an advantage to the groups they are leading?" On the one hand, working your way up within the same industry across a number of different functions and positions can clearly add value and credibility to any aspiring business leader. Those CEOs will be intricately familiar with the nuances and pressure points of the business, and they will probably be able to relate more easily to staff. On the other hand, an industry outsider can offer a different perspective – challenging group thinking, fostering fresh thinking and driving innovation. Synergies can come from similar business dynamics and overlaps regarding the importance of customer service or comparable growth models (via franchising, acquisition, etc.).

My father worked for the Midland Bank (better known today as HSBC) for 33 years. His brother, too, had been employed by the same bank. In addition, their father had similarly spent the majority of his professional life at Midland. Their respective generations were of a time when you picked a profession and, if you were lucky enough to be offered a job, you then dedicated your working life to one company until you reached retirement age.

If traditional “Employee Engagement” or “Opinion Surveys” are akin to what employees and team members say to an organization’s proverbial face, then Glassdoor.com is what they’re saying behind the organization’s back. Therefore, this particular social media feedback can give companies an opportunity to gain unique insights to help evaluate and improve its internal and external branding. That’s the business case for monitoring Glassdoor in principle. But, what tends to happen in actual practice within organizations? AETHOS recently surveyed more than 50 HR professionals from best practice hospitality companies to understand the extent to which they give credence to and leverage Glassdoor as a business tool.

Our January article presented our nominee for “2016 Hospitality Leader of the Year,” though we clearly noted there were many worthy candidates. [...] Since the publication of this article, however, we have been asked to reveal some of the “runners-up” we deliberated. We are happy to oblige.

Figures from the European Gaming & Betting Association (EGBA) show that the European online gaming and betting market is thriving. [...] Yet, despite the significant size of the sector, online gaming and betting only represented 17.5% of the total gaming market in Europe. [...] Traditional bricks-and-mortar operations will thus continue to generate the bulk of the revenues for the industry. With this in mind, we got in touch with senior casino executives to talk shop.

The concept of servant leadership has long been rooted in philosophy and religion, the grad student correctly noted that older, formal leadership theories did not explicitly support or address the concept. However, the same can be said of many currently held scientific theories, including continental drift or human evolution.

To the service-hospitality industry, holidays like Valentine’s Day often make a positive contribution to a company’s bottom line. For example, Americans spent an estimated $13 billion for Valentine’s merchandise in 2004, and in the process, purchased approximately one billion greeting cards, 36 million heart-shaped boxes of chocolate, and 156 million roses. And we have not even touched on the significant revenue from romantic get-a-ways, cruises or dinners...

Today’s careers tend to be “boundaryless” and unfold outside traditional organizational structures, not to mention the fact that personal values have evolved such that people increasingly change work settings for greater autonomy, life balance and meaning in work. The result is that modern workspaces are becoming as much mental as they are physical domains.

Wherever I go, I see signs of people wanting to hit the pause button, to take a moment to assimilate what is happening around them. [...] Wearing my hat as an organisational advisor in talent management and human resources, I have been asking myself, ‘Is hitting the pause button the right thing to do? What is needed for leadership talent in the hotel industry to adjust to and not be overwhelmed by the continuous catching up to keep up-to-date with progress?’

In a continuous effort to provide a broad range of advisory services, AETHOS Consulting Group has partnered with leading logistics-solutions firm Axis Global Logistics. Axis is revolutionizing the logistics processes by providing a single-source supply chain solution for clients in the retail and luxury retail segments.

Millennials (aka “Generation Y” or “Echo Boomers”) are the talk about town. A day rarely passes without a new report explaining what this generation wants out of life and how their value set are economic and cultural disruptors. As consumers and employees, GenY is therefore fast becoming the focal point of marketers, as well as cultural, religious and political leaders.

The referendum result in the U.K. this past summer has plunged the U.K. into a period of uncertainty as the country waits to find out what the decision to leave the European Union will mean exactly. A plummeting in the value of the pound was the most apparent immediate impact of the vote in June, along with a whirlwind of successive resignations among the country’s political leadership. As the U.K. waits for Article 50 to be triggered and for the terms of exit from the EU to become apparent, we take a look at what immediate impact there has been on the U.K. hospitality sector and what the future may look like.

Over the holidays, I sat down with Andre Zotoff, Vice President & General Manager of the iconic Hotel Del Coronado resort in southern California. The conversation turned to talent – how to cultivate and retain it – and Andre had an amazing story that deserves to be shared.

A month has passed since my initial conversation with Pizza Rossa founder and CEO Corrado Accardi. Since then, we have continued our exchange about the fast casual dining industry. Because I was keen to see him in action, Corrado and I met at his restaurant in the City of London and started going through our agenda items, which included, this time around, third-party delivery companies as well as marketing and social media.

The past year was full of compelling events and personalities within the hospitality industry, and looking back, many leaders stand out as strong contenders for the title of “Leader of the Year.” To our way of thinking, anyone receiving this designation must exhibit true “servant leadership” by aligning people practices to business practices, and in so doing, bring about tremendous quantifiable results and return on investment (ROI) for all shareholders.

Like it or not, corporate governance is about to change in a big way. President-elect Donald Trump has already been talking tough about “dismantling” the Dodd-Frank Act. Many of the Dodd-Frank policies were put in place to curb banks from causing another financial crisis, but others like “Say on Pay” make little sense. While the U.S. Congress and Trump battle it out in 2017, there are a number of trends and actions in corporate governance that public boards should be thinking about in the New Year:

This time of year, I find myself reflecting upon the past 12 months, what I’ve accomplished, what I could’ve done differently, and what I’m planning on doing in the new year. Along with reflection comes gratefulness, and this year I am extremely grateful for my family and young son.

This week’s briefing jointly organised by Dentons, Horizons and the Global Restaurant Investment Forum/Bench Events proved to be as insightful as expected. It was a mix of market updates and intelligence, news on up-and-coming restaurant concepts as well as a talk on the do’s and dont’s when expanding internationally and an earnest discourse on Brexit. Read More

Successfully merging corporate cultures in today’s environment of consolidation takes more of a social science degree than a business degree. Fields like cultural anthology, social psychology, and sociology have long studied and described the way groups – and members within them – think and behave. Insights from traditional and well-validated social models are invaluable tools for navigating both the expected and unanticipated consequences of bringing new teams, cultures and brands together.

Everyone is a chatty customer in the world of social media. It’s no surprise therefore that brands are no longer created or its perceptions managed by marketers, but rather by consumers. And these talkative consumers now include your employees. Welcome to the new reality of transparency courtesy of the 500-pound social media gorilla called “Glassdoor.”

Corrado Accardi is one of those London entrepreneurs who took the plunge and who left a corporate career in order to become the founder of Pizza Rossa, a by-the-slice Italian eatery. I was keen to talk to him about entrepreneurship and leadership, financing a start-up and the challenges represented by changes in consumer behaviour as well as his views on industry disruptors – in particular third party delivery companies – and social media.

The start of this college and professional football season reminded me of a semi-cult football classic, “The Program.” In this coming-of-age movie the head coach pushes a college football team to do whatever it takes to win. At one point, a key player goes down with an injury and the coach asks the pivotal question, “Are you hurt or are you injured?” He goes on to explain, “if you’re hurt, you can still play. If you’re injured, you can’t.” This film inspired me to make a connection between one’s career path decisions and the “hurt or injured” distinction from the movie.

“I expect there are a lot of people out on the market at present?” - I have been presented with this supposition on a large number of occasions this year, mostly by small to medium sized hotel groups who are hopeful that the consolidation currently underway in the sector equates to an abundance of laid off talent that they can snap up.

AETHOS has recently profiled more than a 1,200 HR leaders from around the world. Results across ten core competencies that independent studies validate as significant predictors of performance in the service-hospitality industry indicate that modern HR pros look increasingly like CEOs and decreasingly like their peer set from five years ago.

AETHOS Consulting Group was honoured to co-sponsor “Next, A Future Leaders Summit” together with HTL Capital Advisors as part of HotelsMegaMeet in Sydney last month. “Next” was aimed at providing rising stars of the Australian hospitality industry with an opportunity to learn from, and to interact with, leading players from the industry as well as their peers. Key takeaways of the event included:

Consequences of M&A activity in the hospitality industry are increasingly making headlines, fuelled by a greater complexity of owning- and operating structures and an ever larger number of international stakeholders... What are the best practices to protect oneself from unwanted consequences?

There may be no better way for hospitality firms to learn and gain inspiration for successfully transforming their businesses by leveraging technology than by looking at some of the “unicorns” that have successfully tapped into the hospitality sector.

How you feel about and treat yourself directly affects your relationships – and in the hospitality industry managing internal and external relationships is a fundamental and critical business skill. Often success in building relationships is rightfully credited to factors like a person’s level of Extroversion, Service Orientation, or Emotional Intelligence... Yet, a critical element that can be overlooked or minimized in the mix is Self-Esteem.

There’s a right and wrong way to mine for talent. It’s tempting to follow the latest crazes in testing, assessment, and interviewing – striving for some elusive silver bullet. Even iconic, trend-setting organizations fall prey to innovative-sounding approaches that ultimately fail. For instance, BusinessInsider.com famously reported that Google recently abandoned its legendary interviewing tactic of asking brainteaser questions in favor of interviewing against a set of competencies that were relevant to the role in question. Competency-based assessments have long been best practice in HR and workplace psychology. Google learned that lesson the hard way, and lessons like that cost money.

What do Belmond, Caesar’s Entertainment, Carlson, China Lodging, Jumeirah, Mandarin Oriental, Millennium & Copthorne, Starwood Hotels & Resorts, and Whitbread have in common? The answer is they all announced a change of CEO during the past 12 months.

Keeping in mind the heightened M&A activity and the international buy-out or take-over activity that the hospitality industry is currently witnessing: How well do you think your organisation would fair if it were made up of likeminded individuals not used to be challenged or questioned by a different perspective? By individuals who predominantly come from the Western world and, although having gained international work experience, who have first and foremost made their careers in European or American institutions with belief systems quite distinct from their Asian counterparts?

Many of the restaurant industry’s brightest young brands are seeking private equity partners in a search for rapid growth. Led by a founder’s passion and capital commitment by private equity, this partnership has allowed for unprecedented growth with many brands serving as disruptors to the major chains. Done well, this dynamic duo can offer unprecedented results, but regrettably many founder-private equity relationships are turning adversarial due to a lack of clarity concerning how and when a founder should let go of the leadership reigns.

How many people do you know who would tell legendary tech mogul Bill Gates, “Thanks for the many opportunities at Microsoft, but now I see my career going in a different direction”? It sounds crazy, but essentially this is what Jennifer Jobin did as part of her deliberate development as a female executive. The journey challenged her to define her priorities and personal brand, find workable ways to manage and leverage the demands of both a fulfilling career and ever-evolving personal life, and mature as a leader of people versus stagnate as a manager of things.

With the ALIS conference kick-starting today, it is fair to say that the hotel and investment community ‘formally’ begins its year. It is a foretelling summit which sets the tone for events around the globe to follow – whether it is the International Hotel Investment Forum in Berlin, the Hotel Investment Conference Asia-Pacific in Hong Kong, the Africa Hotel Investment Forum in Toga or HotelsWorld in Sydney. So, what topics are likely to be discussed by the delegates and industry experts?

Greger/Peterson Associates, Inc., a retained search and advisory firm with offices in Los Angeles, CA and Portland, OR merges with New York-based AETHOS Consulting Group, a global executive search and advisory firm. Both firms are leaders in providing services to the Hospitality & Leisure industry, plus Greger/Peterson brings experience in Entertainment & Media as well.

Casino Journal and AETHOS Consulting Group have be examining corporate governing practices for more than a decade. This year’s study includes 26 companies that have significant business concerns in the gaming industry. This study examines board makeup, independence, committee structure and pay-for-performance in determining a governance score for each company.

Keith Kefgen and Dr. Jim Houran on the recent trend of consolidation within the hospitality industry: "It’s not about trying to force a square peg into a round hold, but rather about building new, novel, and profitable configurations altogether".

Determining whether an employee “can be saved” or “coached to greater success” isn’t a simple “yes or no” question. It’s an educated risk or assessment. The best guess answer is arguably grounded in the CHIC variables, which define a continuum of likely coaching success.

Millennials are easily bored if not intellectually or socially stimulated the right ways - this is a significant and potentially costly challenge for businesses as they strive to curb turnover of employees with lower engagement, loyalty to company and a threshold for job-hopping.

Most restaurant chains receive failing grades when it comes to corporate board gender diversity - according to a recent study by Harvard Business Review, females are one of the most powerful economic forces in the world. In the U.S., women make up more than 50% of the population and account for over 80% of consumer spend. If this is the case, why do so few females occupy seats in the corporate boardroom?

As a global advisory firm, we constantly meet new and interesting professionals. Occasionally some individuals offer innovative perspectives or hold such unique positions that we are keen to hear their insights and profile their experiences in human interest stories – that is, case studies that speak to broad issues of development, leadership or culture-building.

Is HR Suffering from Multiple Personality Disorder? - During a recent mini TED-talk AETHOS held in Las Vegas with senior leaders in casino and gaming, one speaker noted the difference between aspiration and aspirational. This distinction strongly resonated with attendees who lamented that while the hospitality industry does well innovating on the product and service side (business practices), the industry has yet to advance its people practices and simply relies on familiar but outdated modus operandi.

The AETHOS Hotel CEO Turnover study has been reviewing annual turnover in the sector since 2004. The study’s peer group is the world’s 50 largest hotel companies by number of rooms count as reported each year by HOTELS magazine. Companies range in size from IHG with 679,050 rooms to Okura with 23,686 rooms, some are publicly listed, others are private family owned businesses. 23% of the peer group is headquartered in Asia, 32% in Europe, and 45% in North America.

"Bringing in someone from outside [the sector] can lend new perspectives and experiences and produce extremely positive outcomes. The key is to know where to look, identify the needed skill-set, and then be sure to have a systematic on-boarding process in place to set up your new leader for ultimate success."

Dr. Jim Houran assesses global leadership profiles and specifically hones-in on the potential challenges faced by employers and senior executives on the African continent. Dr. Jim shares best practices in driving performance in the work place and identifies key issues that need addressing - the psychometric GM and CEO/COO profiles revealed in the article provide a data-driven response to the critical question posed as to what types of leaders will meet the guests defining the new haven of hospitality. Arguably that answer is leaders who are “technical capable but perhaps not fully prepared in their service mindset.”

Every proxy season for the past 20 years I have evaluated the performance of CEOs in the hotel industry using a proprietary pay-for-performance model which looks at key financial metrics such as company size, stock appreciation, EBITDA growth, and total direct compensation within a defined peer group.

CEO turnover among the world’s 50 largest hotel firms in 2013 was 10% down from a 2012 figure of 16%. Leaders who took office in 2013 were Sébastien Bazin (Accor), Lee Chee Koon (Ascott), Wolfgang Neumann (Carlson Rezidor), Frank Fiskers (Scandic), and Peter Gowers (Travelodge). New CEO arrivals always tend to prompt speculation from employees, shareholders, analysts, media, and industry colleagues as to the likely performance of the hire and of the hiring organization. Such transition events also give us a chance to take stock, look at the CEO role in the hotel world from a holistic standpoint and explore the profile of these industry titans.

Qestionnaires are popular tools for measuring many outcomes, yet their usefulness can be hugely affected by three key factors of which organizations are typically unaware of - Dr. James Houran speaks with Dr. Rense Lange about the importance of getting it right from the get go, understanding the type of data you are after and the best way to obtain it.

Is the social media phenomenon really a paradigm shift, or are these technologies merely new tools for doing things people have been doing for thousands of years? The authors look at the likely evolution of social media, and remind us that – especially in the world of hospitality – human interaction will still trump contact through technology.

Progressive consumer modeling combined with modern analytics allow businesses to identify key but hidden drivers behind consumer behavior. This approach "reads consumers' minds" in a way far superior to "recommendation engines" used today.

We question recent suggestions to increase taxes on the highest spending consumers in the U.S. Will such a revenue stream really help balance the country's massive budget deficit?

Should Congress Limit CEO Pay? Keith responds to the a NY Times article written by economist Robert Frank.

To be successful, today’s hospitality executive must be a service fanatic, marketing guru, Wall Street analyst, real estate appraiser and a first-rate coach. Keith Kefgen has some advice for aspiring leaders in hospitality.

AETHOS looks at the Say on Pay bill passed in the United States - a real reform or just good politics?

AETHOS reviews CEO turnover at the 50 largest hotel companies in the world.

In this article, the authors discuss how the practice of ‘hedging’ has become popular during the past few down years in the stock market.

As a year ridden with corporate scandal drew to a close it seemed fitting that President Bush nominated a new chairman of the US Securities and Exchange Commission.

Organization structure can affect the quality of corporate governance. Companies need to carefully analyze their strengths and weaknesses and recruit new directors that can enhance the competency of the overall board of directors.

Aethos Consulting Group recommends a separation of the roles of CEO and Chairman on a hotel company board.