CONCLUSIONS & RECOMMENDATION
SHARACO’S OPERATIONS /QUALITY OF PRODUCT & SERVICE COUNSEL:
A- Conclusions Consensus of the October 2004 Diagnoses:
Operations Standards and Service Quality:
1- In General, with the exception of Riyadh Marriott, theSHARACOManagement submerges in the lower 10% of “Operations Standards” expectation, when compared to the international Standards of 4 & 5 star Hotels & Resorts, hence, to its major KSA competitors.
2- The KSA Four Star Hotels & Resorts are the most threatening competitors. Subsequently, the Five Star Hotels & Resorts (dismissing its High Price Value) and the Three Stars Hotels & Resorts (dismissing its law Supporting Attributes)
3- Even if the Product Quality level is auspicious at some of the SHARACO locations, the existing “Service Quality” Criteria conditions represent a threat of business loss. Management mustsurmount the “QUALITY OF PRODUCT SERVICE” deficiency
4- The over all unfavorable results of SHARACOKSA “Operations Standards “ Criteria, is due to Inconsistent Criteria Performance, from most of Management Company staff.
5- In the event that “Operations / Service & Product Quality” level of excellence are achieved; the favorably perceived Primary Supporting Attributes (Locations & Hotel / Resorts surroundings) accentuates the Opportunity of SHARACO’S to be one of the Hotels & Resortscompany to Dominate the upper “Four Star plus” Market in KSA. Hence, impress and persuade the clients capture factor / Market Share.
6- The SHARACO’S main office Staff gives a Government impression like, in Red Tape attitude and lack of teamwork…….”My way or the Highway” approach is perceived by the six location’s management while frustrating there aptitudes, in consequence; it is filtered to front line staff which mirrors on to the guest / clients perceptions.
7- Quality of Service and Product are the two Major elements that influence the KSA client/ Market’s preference and selection of “Hotels & Resorts” thus guarantee their repeat business.
8- The SHARACO “Operations / Quality of Service”, Criteria level, reflects the management attitude “It filters from the top”….. “Management is neither sufficiently aggressive nor assertive about the issues”. Austerely, the issues are left for chances.
9- Management Company does not listen, nor adequately react to the operation Staff input / complaints / concerns… / ideas / grievances.
10- Hospitality and feeling welcomed, is a religious and leisure travel Market interest / concern, that is in addition to the general operations efficiency….which is currently meager at SHARACO’s properties
11- Majority of the staff’s Poor attitude / Presentationsare another significant set of alarmsto mediocre “QUALITY OF SERVICE” perception, at the SHARACOManaged properties.
12- The S & M Departments Manpower (Manning Guide) and qualification areforemost demoralizing concerns for capturing business from current and new markets; however, even if in place the “QUALITY OF SERVICE” disorder threatens its efforts, continuity and clients / repeat business.
13- No up selling skills or re-enforcement of it.
14- Not only poor service is evident BUT also there is a MAJOR staff Shortage through out the operations of ALL properties at both of front line staff and management / supervisory levels.
15- Staff / employees / associates surveys are not done. Annual survey should be in place.
16- Salary scales are not in range of Market scales. Proper Surveys need conducting
17- While the Average Cost of turn over is as high as approximately 10,000 SR per person in the first 90 days, the current turn over rate at SHARACO Properties is at an average of 15%. The company’s investment in people is depleted due to poor management.
18- Majority of the current staff are over worked / falling a part and yet they are neither compensated (Under paid) nor appreciated… Hence, they are De-motivations and their low morale is hindering the productivity of both the staff and the properties Managers.
19- The Maximum annual salary increase of 5% of the minimum based on starting salary and not the current salary is not a fair dealing... it is causingthe loss of SHARACO staff to its competition..!
Operations Standards and Product Quality (Quality Assurance):
1- Reservation Systems and Procedures (At All six Properties) need to be evaluated and properly applied. Need to implement Yield and revenue Management which is essential to this business and its ROI in both short and long term.
2- The Management mustrectify the front line / guest contact Staff Presentation (Professionalism, hospitality, customer focus, efficiency & Pride: Clean & Ironed Uniforms, Nametags and Hygiene ….etc.) …..
3- Loss Prevention is not enforced, the owners liabilities are evident at various areas, such as lack of Guest Privacy ( guest names and room numbers are easily obtained – pools, beaches and health clubs security measurements, liability signage, and professional attendants… …. Etc)
4- The staff is not well oriented with the properties (Facilities, outlets, hours of operations, menu items …etc.) as well as the local areas facilities.Also, Guest expectations and needs (Guest Relations) Lack of Awareness / Inconsistency.
5- The up selling skills are not exerted through out the Rooms Division and Food and Beverage outlets.
6- Preventive Maintenance (PM) programs are not conspicuous through out the company properties at both public areas and guestrooms. Not to mention back of the house equipments / FF&E negligent. The physical condition of the assets is an evidence of poor maintenance management (See Photos).
7- House Keeping Departments, at all six properties, lacks training, supervision; follow up and inconsistency at both public areas and guestrooms.
8- In general and through out the company; Telephone skills are not adequate for Four Star plus Hotels / Resorts through out (Operator, Room Service, Laundry, Front Desk, H.K., Lost and found, Reservations …etc.)
9- The general impression of the staff majority reflects low morale and obvious inadequacy. It is possibly due to lack of motivation and overworking. Yet they are not compensated.
10- The Food Quality at all properties outlets is unacceptable for a four or Five Star Hotels and Resort. Food presentation is also not satisfactory at times (room service), the taste, recipe, varieties and conditions were disappointing. The Buffets are not well kept up, during rush hours, not manned and no themes applied. No innovation or creativity…..
11- Food Quality control, hygiene and kitchen sanitation are utterly Out Of Order…. Extremely an important area of concern
12- Considering that HRis being the back bon department of the successful operations …. Through out the company and its properties; the Human Resources departments are lacking staff and qualified man power …Skelton staff with no experiences / skill
13- Purchasing power is not executed for savings and consistency…… at all levels and for all products, supplies, printings and merchandizes...
14- No proper / accurate Guest Satisfaction Index program is in place. Guest Comment Cards and surveys is an essential tool for operation and company success measurement.
15- The Saudization (Sawada) program is not properly executed and haphazardly applied. Yet, the company overall achievement is under the government’s quota of 30%
B- Counsel Introduction and Suggested Recommendations:
Introduction:
Given the above conclusions of the October 2004 Diagnoses /experiences and the identified “Operations” criteria set low ratings, affirms that the majority of the operations are not up to neither the international industry standards nor the KSA Market expectation.
Service Quality:
Training programs (Seminars & Workshops) for the staff, especially guest contact staff are essential.
Hospitality / “QUALITY OF SERVICE”, being an attitude, it is not easy to tutor. To teach attitudes, they must be understood objectively, reinforced consistently, evaluated regularly and periodically measured (Assessed).
To deal strategically with the significant “Operations / Quality of Service” challenges faced, The SHARACO management has to foster a Genuine Service Oriented Culture within its Hotels and Resorts. With an aggressive approach, the management will be able to create effective programs to reach, orient and develop “QUALITY OF SERVICE” aim / objectives with new and existing employees at every level.
The management has to define straight – forward methods to assess The Various Staff’s “QUALITY OF SERVICE” level and needs, define a strategy to deliver the necessary programs that result in high “QUALITY OF SERVICE” performance throughout the hotels Guest Contact Areas. In the process, they should communicate the Property’s unique business goals and objectives, so that the hotels employees clearly understand the importance of the Service Quality and its significance.
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The following Recommendations of this “QUALITY OF SERVICE” research /diagnoses testing are based on true assessment, of how the “QUALITY OF SERVICE” Criteria at SHARACO Hotels and Resorts are perceived when compared to the industry standards both regionally and internationally.
To insure that employee’s performance, are meeting industry benchmarks, and expectations, The Management must work closely together with each of the properties, to:
@ Identify departments that need most improvement for training.
@ Determine specific “QUALITY OF SERVICE” criteria and “QUALITY OF SERVICE” skill levels representing the most urgent needs.
@ Ensure “QUALITY OF SERVICE” consistency and the right fit between improvement plan content and delivery.
@ Establish a system of “QUALITY OF SERVICE” assessments and a rewarding program for superior performances at all levels.
Once a strategy is set to meet “QUALITY OF SERVICE” and operations need, management must accordingly, tailor the SHARACO “QUALITY OF SERVICE” development programs, together with detailing a comprehensive action plan, including short – and long – range solutions.
Although some of the following, maybe, a SHARACO Hotels & Resorts considered ideas. We are providing good counsel, which we find fit for the existing poor “QUALITY OF SERVICE” conditions. The SHARACO Management has the responsibility of deciding whether or not to act on any, or all:
Counsel General HRRecommendations:
Providing that a properly staffed HR department is established at each SHARACO location and at a regional level, the following should be implemented:
As settled earlier, Service Quality intensification must have aggressive plans and actions that are consistent. From the Start of the Human Resources activities sequence of: recruiting – interviewing – hiring – training – developing – and motivating staff. In each of these stages, suppresses a synergy percent of the total operation success. However, at first the fair Salary scale should be applied, after conducting an accurate salary survey for each of the six properties competition / market, As well as reevaluating and reestablishing a fair policy of annual increases that based on the current wages of the associate.
A- Recruiting, Interviewing and Hiring “Guest Contact Staff”
In addition to the skilled interviewer’s evaluation of the candidate’s character / general attitude:
- Develop a “Service Quality” assessment checklist to be uniformed in the interviewing process, for an accurate selection.
The assessment should contain a controversial set of the criteria related questions.
The assessment results should conclude the candidate’s abilities and whether or not heis fit for the required excellence level, of the given position.
B- For Training & Development
1- Tailor a series of hospitality / Service Quality criteria workshops and seminars modules for each division
(Rooms: Front Office / Housekeeping --- F & B: Restaurants / Room Service / Lounges…. etc.).
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2- Develop on the job, criteria assessment sheet / checklist (each employee will have a separate file).
- The assessment should include all criteria measurements.
- The management team will select a hotel “Service Quality” assessment Coordinator and an Assessor for each department.
- Each Department Head with his / her assessor, are responsible for observing, measuring and tracking each employee’s Service Quality criteria progress, on his/her assessment sheet.
- On a monthly base, the department head and assistant will counsel / coach, each of the department employees on their criteria assessment results / target / objectives and dates to meet required standards.
- This assessment sheet becomes an essential part of the hotel’s periodic, employee Performance Evaluation process.
C- For Motivation:
1- Script a SHARACO “Service Quality” slogan, many of the Hotel companies, today have a service motivating slogan / “QUALITY OF SERVICE” trade mark (Radisson Hotels: YES I CAN – Marriott Hotels: WHAT EVER IT TAKES – SHARACO’s: I PROMISE … etc.)
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2- Promote “Service Quality” criteria, through out back of the house areas, employees’ lockers, and cafeteria (Posters – Flyers...etc.)
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3- Develop “Service Quality” criteria driven incentive programs (Positive Re-Enforcement):
A- Certificate for achieving excellence on the “Service Quality” assessment checklist / sheet.
B- Hotel / Department, specific criteria Champions of the month (announcement with the regular, employee of the month and in the News letter, if applicable).
C- Rank per department, on quarterly basis, of best “Service Quality” employee (Posters) in staff hallways. And staff cafeteria (from the employee “Service Quality” assessment sheets)
D- After re-enforcing “GSI” Comment Cards a credit system should be implemented. When an employee’s name is (positively) mentioned on a comment card, a points program should be applied (i.e.: For each time the name is mentioned, 20 points apply. For every 100 points, the employee receives a Commendation Letter from the General Manager. For every 1000 points, the employee receives a SHARACO “Service Quality” Excellence Certificate. For every 10,000 points the employee receives Complimentary Weekend at one of the SHARACOHotels & Resorts hotels with a cash award.
D- Rally, a “Service Quality” Criteria Excellence Campaign: -
When all of the above mentioned (A,B,C) tailored programs and assessments system are in place for implementations, the management should rally the “Service Quality” criteria campaign with an existing kick – off party / event. At which time:
1- A full written summary introduction of the projects Elements,
Procedures, System and programs will be presented.
2- General Manager and Department Heads presentation (Speech) of the “Service Quality” criteria goals, objectives and end results will be addressed
3- Few of theguests (high volume Producers) will be present and perhaps address their appreciation and expectations of the campaign.
E- Immediately Implement. All of the Above…………!
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F- Follow Up ……. Follow Up……… And Follow Through………….!
The following additional HR activities must be in place:
-A hotel annual Training plan must be implemented
-Orientation Plan must be established for new hires
-A new hire training plan / schedule, per department per position, must be established
-Job Description per property positions must be done and up to date.
-A supervisory development workshops must beimplemented
-A company Employee hand book must be developed.
-Cross training / cross utilization program should be developed
-Procedure Manuals must be applied and consistently up dated.
-Positive re-enforcement and incentive programs must established and implemented.
-A quality assurance / Training Manager must be hired
Product Quality
Providing that the proper manning guide is applied at ach property, and the qualified / trained manpower (Staff & Managers) are in place, the following must be implemented:
-The Prevent Maintenance Program can not be compromised. The Chief Engineer, department heads and the General Manager will be held accountable for the PM set schedule (weekly, monthly, quarterly and annually). Each department head will be assisting in the process via a monthly report/ check list of his area’s assts (IE: Exec. Chef for the kitchen equipments - Exec. HK for the Laundry equipments and guest rooms / …..Etc.). The GM will conduct a weekly round with the chief engineer to ensure the execution of thePM set schedule.
-The F&B director and Executive chef are responsible for Kitchen sanitation,hygiene up keep and food safety. A company / Regional Hygiene / Quality Control officer should be hired to follow up and regularly train kitchens staff.
- A manager on duty program / procedure manual MUST be developed / established and customized for each property accordingly.
- A qualified Executive House Keeper per property will be accountable for the cleanliness in rooms and public areas. Daily the GM and Manager in duty will randomly inspect at least three rooms each and the manager on duty report will reflect any deficiency in the public areas (PS: The manager on duty check list / room inspection list may be available now at some location, but not applied nor enforced or properly executed due to lack of the know how!)
Sales & Marketing
Option One:
A FULL Regional Sales & Marketing QUALIFIED team+on property Business Development Manager must be hired to develop and implement a comprehensive Sales and Marketing plan for each property. The Regional staff’s wags will b distributed among the properties based on the # of rooms / units…..
Option Two:
A full Sales & Marketing QUALIFIED team per property must b hired based on the number of rooms, a Minimum of 3 people for the smallest property (DOS&M, Sales Manager and Sales executive) and with ad additional sales person per 50 rooms there after.
A fair salary scale and a bonus program (Based on productivity and target achievement) MUST b applied.
A separate banquette sales manager will be hired where applicable.
A QUALIFIED Regional Communication and Public relations Manager will be hired
A Qualified Regional MARKETING manager will be hired to develop and implement a marketing and PR plan for ALL SHARACO hotels and resorts through out the Moslem world….worldwide.
A centralized QUALIFIED reservation department / staff will be hired to properly develop and implement a yield / revenue management system for the various SHARACO Locations and to cross sell the company products / locations.
Develop and implement a cross selling Cross marketingprograms between the properties with a standard rack in lobby / front deskholding all fact sheets / brochures display. Implement cross marketing PACKAGES.
Management Company
The current Regional Management (style and Staff) is inadequate to deliver the owners expectations of ROI and maintain the operations intact. Also, the current concept of The Owner / Managerhypothesis has proven to be abortive and impracticable...Based on this diagnoses results as wellas the last four years down trend (of People - Product – Profit – Promotion) …..