Articles

Friday, 14 April, 2006

Are your Policy and procedure manuals efficient dust collectors?

I had arrived in Jakarta, Indonesia to take over as General Manager and area director of a large 4 star hotel in a rapidly expanding hotel group in South East Asia.

During the handover procedure with the outgoing General Manager, I inquired as to where I could find the current policy and procedures. My colleague grandly pointed to the office bookshelf: It was neatly stacked with black 2" three ring binders, alphabetically organized by the policy title and decorated with the company logo.

My first priority was to get a better understanding of the Company?s policies and procedures. At random, I selected one of the binders. I quickly discovered that many of the policies had been written by a totally different hotel company!

While the bricks & mortar of a business change little, hotels can change owners, directors, management companies and/ or brand affiliation. Each change will see a "carry over" of policy and procedures and the introduction of new ones.

The service industry is fast paced; managers and employees come and go! With the popularity of contractual employment comes a nomadic lifestyle that is dangerous for the world of policy and procedures: Change in owners, directors, management companies and/ or brand affiliation cause them (policies and procedures) to morph, while the old ways carry over, and new ways are introduced.

When new employees join your organization they will "import" their previous knowledge and experience, while this does invite innovation and a fresh perspective, there is also the risk that they may erode other important processes. It is important to ask the question: "Do they have a clear understanding of my "key" standards?"
While "policy and procedures" may not sound as exciting as other aspects of the hospitality business, these are the documents by which "the Business" (its owners, directors, managers and employees ) is measured. It is important to keep them clear, since it is a question of " When" (not" if") a catastrophe arises.

Enter, "Risk Management!"

We live in a society that has become more litigious and where the public seeks redress for actual or perceived wrongs. Organizations are held responsible for the actions of their managers and employees and directors are held responsible for the organization.

The benefits to effectively manage "Risk" are very straight forward;

Protecting guests and staff from harm.
Preventing or reducing legal liability and exposure
Saving resources: income, costs (insurance & other), employee turn over
Shielding your company name and/ or brand image
Business continuance; managing the unforeseen in advance
Marketing: Increasing company product knowledge

So if you are one of many organizations or businesses that haven?t recently refreshed or reviewed your policies and procedures, where do you start?

The first stage is relatively simple and quick. Establish a list of those "risks" that would have a major impact on your business e.g., customer and staff safety (fire-hygiene-premises evacuation), cash control, managing communications etc.

Secondly, refresh or develop your overall philosophy (policy) as it relates to that "risk". The next steps are to develop specific Standards of Performance (SOP) that will establish the Objective, Scope, Responsibility and the "how to". Documents should be written in a style that is easily understood by "front line" staff and their managers.

Finally, the most important aspect of all is to determine who should view these policies/ procedures: Develop a method by which all employees have access to the information that applies to them. This will give executive management the ability to deliver questions and receive answers about company policy, and ensure that their staff comprehends what you are requesting them to know and do.

Ultimately, policy and procedures have to be "dusted off" and reviewed on a regular and defined basis i.e., the shoulder season. Failure to do so will be very expensive no only in cash value but for the organization?s reputation.

About Rodney Darwin

Darwin is the founder of Darwin Business Evolutions. He has significant executive hotel management experience in Europe, the Far East and Canada. He is based in Toronto. rdarwin@darwinbusinessevolutions.com