Thomas Mielke – 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.

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.

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 …?

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.

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.

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”.

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.

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?”

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.

‘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.

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.

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

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.

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.

"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.

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?

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.

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?

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.

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.

Turnover of Chief Executives at the world’s 50 largest hotel groups remained flat for 2018, with new faces appearing at the head of four companies, the same number as for the prior year. Changes in CEO positions were seen at G6 Hospitality, Extended Stay, Millennium & Copthorne and B&B Hotels. Of these, three were planned moves. Jennifer Fox’s three-month stint at Millennium & Copthorne, though, can only be assumed to have been anything but planned. A sector turnover rate of 8% is well under the average for the general industry and speaks to a current period of leadership stability that has run since we last saw a spike of 14% in 2015.

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.

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.

As part of our investigative C-Suite miniseries, which takes a closer look at and profiles the key senior leadership functions at hospitality companies around the globe, AETHOS now attempts to paint a clearer picture of the Chief Marketing Officer (CMO) role and the leaders who define it. Thus far, we have profiled the changing roles, competency sets and backgrounds of the Chief Commercial Officer, the Chief Human Resources Officer and the Chief Information Officer. Arguably, the CMO is another important piece of the puzzle – not yet completing, but certainly providing a much more comprehensive picture of the management teams of hospitality organisations around the globe.

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.

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.

Technology-enabled interaction has become a “must,” not a “nice to have,” and guests expect to be engaged and recognized at an ever more personalized level—it is no longer just a marketing gimmick. However, sitting down for a conversation with Klaus Kohlmayr, chief evangelist at IDeaS Revenue Solutions, he confirmed that the sector is playing catch-up. We agreed, gutsy leadership is needed to bring the technology departments at hotel organizations worldwide into the 21st century. More importantly, we agreed that the root of the problem lies in out-of-date software, systems and infrastructure. Too many hotel operators are running on archaic platforms and trying to compete with a horse-drawn carriage in a Formula 1 race.

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.

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?

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.

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 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?

Optimism and energy were on display at this year’s Seatrade Conference in Fort Lauderdale, Florida where industry insiders proclaimed that the ‘cruise business is strong’ and ‘the future continues to look promising.’ As usual the conference’s annual keynote address did not disappoint, as executives from major cruise companies provided attendees with their candid and insightful opinion on the overall state of the cruise business and where it is heading. During the keynote we heard from strategic executives at Norwegian, Carnival, Royal Caribbean, MSC Cruises, Virgin Voyages and the Ritz-Carlton Yacht Collection. As we were in attendance this past week, AETHOS took note of a handful of major sound bites.

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.

Approximately a month ago, following Ritz Carlton’s previous announcement about moving into the cruise line sector, I contemplated the issues that must have been discussed in the board room prior to committing to such an endeavour. It stirred my thinking about a company’s transition into a new business area that requires new skill sets and a firm’s transformation from a company culture perspective to accommodate and welcome a new talent pool into its realms.

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.

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.

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 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.

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.).

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.

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?’

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 greatest return on investment lies in bridging the gap between performance expectations and the daily realities of the job. The very best way to ensure this is happening is by aligning leadership and the HR department. The plan of attack? Back to the basics. Candid and open communication is the best way forward. If leadership is truly welcoming HR to have a seat at the board table, HR executives must step up and secure their place.

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

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.

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.

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.

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?

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.

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?

The news about Boparan Restaurant Holdings (BRH) purchasing the Cinnamon Collection only days after we learned about Equistone Partners Europe Limited acquiring a majority stake in GAUCHO is an indication that the UK restaurant scene continues to be a ‘hot’ one. Private equity firms, investment companies and family offices are keen to increase their exposure to the consumer sector and the ‘hunt’ for fresh, high-growth potential restaurant concepts continues.

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.

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.

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.

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.

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.

Hotel company CEO turnover has picked up in the past two years with 12% of the world’s 50 largest hotel companies in 2011 being led by a new Chief Executive. Read the findings of this biennial CEO Turnover study.

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

The hospitality market is ever evolving, but hoteliers seem to struggle to adapt to changes in the work environment. Can they beat the constant labour shortage by adjusting to the needs and expectations of today's workforce - those of Generation Y.

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?

Congratulations to Whitbread on regaining its 2009 position as the top performing hotel board of directors in Europe. Our latest European Board Study sheds insight on latest goings-on in hotel company boardrooms.

Rezidor receives top honours in the annual review of corporate governance practices at European hotel companies.

AETHOS analysed over 420 top-performing CEOs from around the world to understand key competencies required to be an effective leader in the hospitality industry.