PERFORMANCE MANAGEMENT – Articles

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.

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.

Accepting that the enchantment economy is on the horizon, leaders moving forward must have the proper mindsets and ambitions to meet the evolving expectations of customers and employees. We are researching this important issue in more depth so that detailed guidance on creating and sustaining enchanted marketplaces and workspaces will be available to seasoned and new leaders alike.

Psychology says that decision-making is complicated by a “speed-accuracy” trade-off. This issue becomes more salient as the post-pandemic “rebound and recovery” period approaches. Many organizations will need to increase their talent bench-strength quickly to meet pent-up demand. New psychometric research and AI-technologies confront the traditional trade-off by facilitating more efficient and effective hiring decisions than ever possible before.

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.

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”.

Casino Journal and AETHOS Consulting Group have been analysing board practices in the gaming industry for over a decade. The results of our recent survey show some vast improvements; however, there are still several companies that continue to lag the marketplace when it comes to corporate governance structure. Our study examined five critical areas of corporate governance:

2020 has been an incredibly tumultuous year within the restaurant industry. Due to the pandemic, the industry has seen closures, bankruptcies, acquisitions, and a complete shift in the way guests interact with restaurants. This year will be a watershed moment for every CEO and very well could determine the future of their businesses and careers. 

The top performing board in this year’s study belonged to Six Flags Entertainment, scoring an impressive 44 out of a possible 46 points. Extended Stay America and Hilton Grand Vacations tied for second with 43 points, while InterContinental Hotels and Pebblebrook Hotel Trust finished in a tie with 42 points. An impressive performance by these organizations. Each has proxy filing that was thoughtful, thorough, and easy to understand. Just what investors and proxy advisors are looking for. Other organizations such as Travel Zoo, Southerly Hotels, and InnSuites Hospitality Trust have much more work to do but should find plenty of low hanging fruit to improve their overall governance.

Throughout 2020, AETHOS witnessed first-hand how industry leaders and teams have deliberately, or inadvertently, shifted their performance dynamics in response to COVID. These shifts can be considered ‘gaps’ because they often have negative or unintended effects on the business and people practices of organisations. Intriguingly, these performance gaps are easily detected in the psychometric patterns of senior executives. AETHOS thus decided to gather empirical data and find out what new patterns might have emerged.

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.

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.

High X-Factor employees legitimately possess a widely transferrable skill set. Retaining such talent is akin to an “HR annuity” and it pays dividends in promoting productivity and ongoing bench strength in succession plans. The lesson is simple and straightforward—strive to hire and promote people who have a strong capacity for contextual performance, not just domain knowledge. Your service standards, guest satisfaction ratings and net promoter scores should increase in accordance with X Factor levels in your employees … up and down the organizational chart.

For the first time in history, five generations will soon be working side by side. Executives of the older generation are working longer while the “young guns” are quickly rising through the ranks and gaining a foothold in the professional world as a force to be reckoned with. At face value, this is a complex, yet rewarding challenge for any leader in the hospitality industry. The level of experience and the, at times, distinct attitudes and character traits which are often attributed to an executive’s tenure within the industry, are often pointed out as the differentiating factors between the generations. Yet, it would be unfair to pigeonhole executives by these factors. In fact, AETHOS has often found that those differentiating character traits are innate and disassociated to the level of experience. Yet, the cross-generational divide does exist – it is driven, though, by different personal drivers and motivations, by different world views and by different communication styles and ways to manage relationships.

Effectively predicting the future success of job candidates, both internal and external, is challenging at best. Traditionally, this process has relied heavily on interviewing – documented as one of the poorest predictors of on-the-job performance – and, occasionally, the use of psychological testing or biographical information. Yet, there are approaches available that are more effective than using such tactics alone.

Core values reflect beliefs, and company culture reflects attitudes and behaviours – together they define the “heart” and perhaps even the “conscience or soul” of an organization. But, beyond these traditional HR and leadership tenets is the more fundamental concept of what we call the organizational spinal cord. In medical terms, the spinal cord is a bundle of nerves that go to and from the brain. Its main function is to transmit neural inputs between the brain and the periphery of the body. In business terms, the organizational spinal cord is the nervous system responsible for stimulating and directing critical actions across the entire “body” of an organization. Beliefs and attitudes define why a company is in business and what it stands for, but the spinal cord is about how the company actually implements its strategic and tactical initiatives.

Some of the most memorable and effective mid-managers and senior executives utilize leadership charisma to bolster their personal brands, build alliances, gain buy-in from team members and maximize their influence internally and externally to their organizations. But some of the most charismatic leaders have used these skills to wreak havoc. Think of Charles Manson, Adolf Hitler and David Koresh, to name a few. Today, many leadership pundits promote a style of “servant leadership” and empathy that better serves leaders in a modern world. In “Good to Great,” author James Collins calls it Level 5 Leadership. But all too often the “command-and-control” management style still dominates in many workplaces.

Self-confidence can be a friend and foe to emerging leaders and seasoned executives alike. In many cases, leaders must think and act against popular wisdom, and thus must exhibit confidence and grit in the face of severe—and even very public—opposition. Of course, self-confidence can also lead one down a very dark path of narcissism, nepotism and grandiosity if untampered, much less uncontrolled. As Herbert Joly, CEO of Best Buy told us, arrogance is the foe of self-confidence, not its equal. A healthy ego comprised of a sense of self-competence and self-esteem is important, but it is invariably dangerous if it lacks a corresponding sense of introspection.

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.

This era of disruption, innovation and increased global competition means that businesses arguably endure more demands on their time, budget and human resources than ever. Some of the stress in organizations is inherent to today’s market conditions and customer expectations; however, leaders must constantly be wary of self-inflicted wounds. Here, we mean the kind of sustained but avoidable workplace stress that demotivates teams, causes unwanted turnover, reduces productivity and decreases profitability. Here are six strategies that can help guard against self-inflicted stress in a team or entire organization.

If you have attended any hotel sector related conference this year, or kept up to date with industry press, you will have been unable to ignore the dialogue taking place around brands and the argument posited by some that we are reaching a point of brand oversaturation in the market. Are the lines of differentiation between brands, often within the same company, becoming blurrier; is the brand proposition to the consumer and to the hotel owner being diluted; is too much choice overwhelming? The big chains of course counter that they have to compete with the OTAs; their earnings are nowadays based on management fee growth rather than real estate appreciation; and the value of their loyalty programme drives the need to provide greater consumer choice. This scenario gives independent hotels an opportunity to be differentiators, to stand out from the crowd and to offer something more unique that captures the consumer not looking to follow the crowd. The reality nonetheless is that, commercially, independent properties are having to compete against an increasing number of 800lb gorillas who are getting bigger by the day.

All companies have pain points during growth or stabilization phases, so leaders face two critical questions: Where are they, and how can we ease them? There is now an evidence-based model to help business leaders confront these issues more efficiently and effectively. It starts with understanding the “joints” in a company’s anatomy — joints being areas where strategic and tactical components in an organization intersect and are thereby particularly vulnerable to friction or bottlenecks.

New leaders eager to prove themselves by taking a plethora of visible and impactful decisions and actions – aka “Caesar on a march” – can fall into a trap of doing much but accomplishing little. With respect to setting priorities and achieving goals, the problem is that even seasoned leaders can confuse important and urgent, as well as fail to realize they cannot do everything. Important means a task needs to be done, whereas urgent means it must be done immediately. Knowing the difference between the two simplifies priorities. Leaders can forget in the moment that tasks and projects have a domino effect. If you do one task, yet fail to do another, you may have wasted effort on the first task. There are seven tactics that make goal- and priority-setting easier for you and others. Read about these below.

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.

Over the years spent collaborating on in-depth studies of hospitality leadership — including over 100 analytical interviews and assessment tests — my interest and co-research in the “anatomy” of leadership and the interplay of nature versus nurture has led to several studies published in the North American Journal of Psychology and the Cornell Hospitality Quarterly. Our work in this area has consistently found that leadership is more a mental state than a professional role or pursuit. The human brain has evolved over tens of thousands of years into an approximately-three-pound organic computer whose sole task is to make things more certain.

Individuals will only think and act as “managers when focusing on the tactical aspects of business, or the first three characteristics. These speak more to the “cognitive engagement” of team members. However, managers evolve into “leaders” when they focus on maximizing the most weighted characteristic, i.e., relationships. Indeed, research shows that “emotional engagement” with a brand promise or mission drives the greatest loyalty and performance. This lesson is typically not taught in business programs, but rather is learned the hard way during one’s climb up the corporate ladder. Save some time by using the cheat sheet below to foster more effective teamwork.

If you want to improve employee performance, think about your daily (or “rolling”) conversations with employees. No better opportunity exists to reinforce and help refine excellent employee performance. You have the chance to discuss new projects, talk about overdue assignments, give updates about completed tasks, and more. Unfortunately, many managers miss these opportunities and instead try to influence or control teams with the counterproductive “FUD” method, i.e., using explicit or implicit threats of Fear, Uncertainty or Doubt. Leaders instead should use rolling conversations to reinforce the importance of meeting or exceeding goals by linking an employee’s performance to a specific workplace result. How? Read below for some in-depth guidance.

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.

Behind every failed leader is an excuse. In our experience studying and working with global leadership in the hospitality industry, successful leaders consistently tell us in one way or another that excuses were for “losers” whereas “winners” find solutions to tough challenges, or at least look at failed initiatives with a winning attitude and use the situation to adopt key learnings to apply to future scenarios.

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.

It’s the Super Bowl, and you are the quarterback for one of the teams facing off. Wearing your football jersey, helmet, shoulder pads and cleats, you look at your teammates coming onto the field for the kickoff. Now, imagine the confusion and looming sense of defeat you would feel being the team captain when you realize that each of your teammates was instead dressed and ready to play something other than football — say, soccer, baseball, basketball, hockey, tennis… and yes, a few even came prepared for 18 holes of golf, and one person had expected bocce ball. It’s an absurd scenario that dramatically illustrates the state and consequence of “misalignment” within a team. It is no different in the corporate world — misalignment is the proverbial kiss of death.

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.

Speedy and transactional recruitment processes do not automatically equal quality outcomes. Until AI (artificial intelligence) can accurately and consistently mimic or perfect what human interaction can discern, technology can only assist in the match-making. The ultimate decision takes a bit more finesse. Let’s revisit the basic challenges hiring managers continually face, and then consider our thoughts on how to best tackle each.

Many businesses are projected to double, even triple, in size over a short time frame, and the pressure this puts on all aspects of the current operation is extreme. One area of particularly potent stress can be the company’s leadership. For example, is the management team that has been running 10 hotels equipped to suddenly manage 20 hotels in the next 12 months? Does the management team have the necessary capabilities to manage new layers of organization, to integrate new accountabilities and to adjust to new lines of authority?

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.

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.

Speedy and transactional recruitment processes do not automatically equal quality outcomes. Until AI (artificial intelligence) can accurately and consistently mimic or perfect what human interaction can discern, technology can only assist in the match-making. The ultimate decision takes a bit more finesse. Let’s revisit the basic challenges hiring managers continually face, and then consider our thoughts on how to best tackle each.

There has been much discussion lately about disruptors – present and future – to the hospitality industry and what this means for leaders and strategic planning. What measures should an organization take to position itself to compete in this “continuously disruptive” environment? A quick answer that comes to many is “better use of technology” – to digitally transform the business.

The sobering truth is that personal and professional development hinges on the ability to be self-critical. Some might use softer language like “contemplative, introspective, and reflective,” but that undermines the rather raw and unforgiving nature of the task itself.

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.

Studies generally show that assessment outperforms traditional behavioural interviews 4:1 in predicting job performance, so a targeted and valid assessment can give organizations a major competitive edge in identifying and retaining top talent. But that’s only the first part of the equation. The other part is to correctly choose and use these tools.

Alignment has been a commonly spoken “business mantra” for years, although Human Resources professionals would agree that misalignment is a common issue that is neither comprehensively discussed nor addressed in today’s workplaces. That performance gaps and lapses in resources exist is not debated. What’s now needed to advance the conversation is evidence-based guidance on identifying and rectifying the catalysts of misalignment.

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.

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.

Coachability goes beyond the simple notion of training or trainability, which often involves teaching a specific set of skills in a highly structured manner. Coaching, for lack of a better term, is a more intuitive process whereby an individual “absorbs” knowledge, attitudes, and skills via guided (versus highly structured) learning and development. It’s more nuanced since it partly involves an employee’s self-directedness in identifying and seizing learnings opportunistically, as well as an employee being positively motivated to devote time to attend structured learnings too. In other words, the most effective coaching clients have the insight, awareness, and self-directedness to recognize and seize leanings wherever they reside.

New research reveals that your workplace surveys and assessments are not as legally-defensible or valid as you expect. James Houran, Ph.D., AETHOS’ organizational psychologist and psychometrician, shares his latest peer-reviewed research on the hidden biases in your tools that could be putting you at risk for bad business decisions and even discrimination lawsuits.

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.”

There are three major shifts within the industry and the workforce as a whole that drive the growing need for transformation within the HR department and the relationship between business leadership and HR professionals. Considering each on a case by case basis, it is subsequently questioned whether there are no other talent management tools beyond the established that are worthwhile applying.

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.

20|20 Skills™ and Regent Hospitality Services share strategies to maximize HR and training programs. These best practices enhance short-term productivity and reinforce a culture of thinking and working smarter and more strategically.

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

With the financial crisis and economic downturn being omnipresent in the media and people’s minds, companies seek security and stability. Does “Emotional Intelligence” help leaders to cope with such an ever changing work environment?

These days demanding investors, stringent regulators and scandal-hungry media are forcing companies to operate under much heightened scrutiny.

Questionnaires are undermined by three key factors of which organizations are typically unaware. This Q&A with a noted expert provides knowledge to help organizations turn their questionnaire projects into powerful business tools.

Conducting surveys is a science. Surveys are competitive advantages only if you can act with confidence on the data since poorly designed instruments waste organizational resources. This article provides insight on the fundamentals of survey strategy.

Building a satisfied and valuable work-force is no quick-fix procedure; it needs a focused and committed approach. Deepika Malkani takes a look…

Starwood Hotels & Resorts wins top spot in the 12th annual US hotel company board performance study.

Personality testing is popular, but research reveals it is a limited tool for selection and training. However, HR initiatives in 2009 can be bolstered by replacing or augmenting personality testing with best practice skills or competency testing.

Cognitive ability is often undervalued by organizations that otherwise strive for high performance and a competitive advantage. A renewed focus on nurturing this competency will strengthen talent management across all employment levels.

The recession has motivated organizations to refocus on the critical issue of professional development for employees who have survived downsizing. We discuss how employee reviews are a strategic tool for performance management.

AETHOS is a model for organizations wanting to implement best practices for recruitment. Read how 20|20 Skills™ assessment bolstered our candidate due diligence and sharpened our competitive edge in the war for talent.