Some,issues,Thai,hotel,owners, business, insurance Some issues Thai hotel owners have with their managers!

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Normal 0 false false false EN-US X-NONE TH MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-qformat:yes;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin:0in;mso-para-margin-bottom:.0001pt;mso-pagination:widow-orphan;font-size:10.0pt;font-family:"Calibri","sans-serif";mso-bidi-font-family:"Cordia New";}Our previous articles did focuson hotel owners and investor’s shortcomings, their habits and mistakes.  This article I like to focus onthe shortcomings of some general managers. A general manager is a leadingposition that can lead to either failure or success.  The below are some of thecomments we get from hotel owners and investors when they are talking to us abouttheir hotel manager or general manager here in Thailand. We trust that you see ourarticles as a benefit for hoteliers, owners and investors at all times.However, knowing the industry well, I foresee that this article might welltrigger lots of comments.  However, we all have to beopen-minded and accept that there are also managers, not only owners and investors,who are in-capable and who take advantage of others and abuse their authorities.We also have to accept that some managers have even shortcomings in ethics andpersonal values. The below did actually happen! ·        The Manager andSuppliersOne manager I got to know ofone general manager who never stopped recommending certain suppliers and it wasfound that he did receive commission on the sale of utensils, equipments andother goods from at least two of the supplier he recommended.  Commission and leader is like “water and oil”in term of ethical practices! Leadership style has a problem if this subject isrumored, raised, discussed.  ·        Sales and MarketingAt least twice -as I know, theappointed opening general manager who has also been in charge for sales and marketingof two small scale resorts did cheat the owners with room revenues from travelagents.   As the resorts were in the pre-opening stage,the resort owners have not yet set up the proper company accounts. The un-ethicalmanagers did give their own bank account numbers to agents for payments.  In one case, the damage was over 5 MillionThai Baht!! ·        Entertainment andComplimentaryAll too often the managerentertains people who don’t bring any benefit for the business. Complimentaryroom nights for friends, lots of dinners and drinks for buddies are given!  Some managers did argue about that and saythe privilege to entertain friends and others come with the position.  I do not agree! If this benefit is not writtenin a contract or on a approved benefit list, the manager should be a sample toother managers and show most ethical behavior.  In my opinion it is not acceptable to have2000-3000 us$ entertainment bill for friends who don’t bring any benefit to thebusiness.  ·        The Manager only sitsin the office.Yes, this disturbs many owners.I do not disagree that some ‘office based’ managers in certain operations arevery effective indeed.  However, forsmaller boutique resorts and hotels, no system beat an ‘on the floor’ managerwith ongoing staff and guest contact.  ·        The Manager doesn’tunderstand the culture!Several times I hear the ownerstelling me that their manager don’t understand Thai culture. Some owners just want theirmanager to ‘blend in’ a little more, but the manager don’t want.What owners most comment to meis that their manager never “Wai” (Thai greeting gesture); never smile(important in Thailand); never participate in certain staff activities, neverrespect certain things like a spirit house. ·        The Manager onlycomplaints!Yes, there are managers whofocus more on the problems than on solutions. Some inexperienced manager don’t understand that there are alwayschanges in plan, changes in lay-out and changes in design during constructionwhen working for the opening of a hotel.  Some changes are the result of poor planning,some changes are needed for unforeseen obstacles, and then, some changes areneeded because of certain misunderstanding or mistakes which is human. ·        The Manager doesn’tprioritize during pre-opening.Some manager just cannot focuson importance. The owner worries on how to finish the hotel as the constructioncompany is not performing as promised. One case I experienced, the manager only talked for over two weeks abouthis comfort and standard of his own living such as “my temporary apartment isnot comfortable enough!”.  It is notwrong at all, but hearing about his apartment over weeks but never hearingabout his work plan as a general manger may actually give a-not-so-goodimpression to the owners.   Hotel and resort openings are always rough andneed 100% commitment and dedication.  Focusingonly on one’s own comfort without focusing on work might give owners the wrongimpression about the manager.   ·        Consider the ownerwhen prioritize the work.Many times the manager andowner see the importance of outstanding “To Do’s” differently. As the manageris in the operation more often than the owner, the manager tries to prioritizewhat needs to be addressed and many times the ‘owner issues’ are not on thislist. As every manager and owner in this world has his or her own habits andviews, this becomes fast an issue with the owner.  May be, it is not general manager’s priority,but it is important for owner.  To avoidclash between GM and owner, consider owner’s priority as well.   ·        The Manager is notprofessionalYes, this also doeshappen!  There are managers who are notethical and unprofessional and only want to have his or her personal gain.  I experienced one resort where the new managerduring pre-opening did not lead the preparation and implementation of any hotelpolicies and procedures at all.  He onlywanted to get the authority to make FF&E purchases.  Without any focus on preparing a policy forcash use, purchase policy, accounting standards etc, the manager only wantedcash to go buy things himself. Everyone wondered why he also needs a purchasingmanager.   Manager should never forget, ina country like Thailand where kickbacks and commissions are everywhere, themanager soon will lose the respect and trust of the owners as the objective ofevery owner will be to avoid cash and to have transparent accounting andpurchasing policies in place.  There is much more to bewritten about this!  I sincerely hope that the abovewill help some managers to understand the Thai owners and investors better andthe above tips should result in a longer lasting business relationship betweenowners and managers.  ©Klaus R. RauterManaging Directorhttp://mai-bs.com