Good to great is one of best books I’ve ever read about what differentiate companies that achieve success vs the ones that remain just “good”.
Let’s review first its core principles:
The hedgehog concept
– The Hedgehog Concept is a simple, yet powerful idea that helps companies achieve greatness. It involves finding the intersection of three key questions:
1. What are you deeply passionate about?
2. What can you be the best in the world at?
3. What drives your economic engine?
– Companies that focus on their hedgehog concept and relentlessly execute on it are able to make the leap from good to great.
Level 5 Leadership
– Level 5 leaders are humble, yet driven to do what’s best for the company. They display a paradoxical blend of personal humility and professional will. They are more likely to come from inside the company, often rising through the ranks. They are ambitious for the company, not themselves.
The flywheel effect
– Sustainable change and greatness are achieved through a cumulative process, like pushing a giant flywheel. It takes immense effort to get the flywheel moving, but once momentum builds, the flywheel propels the company forward.
Good-to-great transformations are not driven by one defining action, but by a series of good decisions and consistent effort applied over an extended period of time.
First who, then what
– First get the right people on the bus, the wrong people off the bus, and the right people in the right seats. Then figure out where to drive it.
Great companies focus on getting the right people in place before deciding on strategy. They understand that the right people can adapt to changes and figure out the best path forward.
With that in mind, let’s see how these principles can be applied, specifically, to the Hospitality industry:
The hedgehog concept in Hospitality
For hospitality businesses, this means:
1. Passion: Understanding and embracing what the company is passionate about—whether it’s delivering exceptional guest experiences, creating a unique culinary offering, or providing unparalleled luxury.
2. Excellence: Identifying the areas where the business can excel beyond competitors. This might be in providing the highest standards of service, having the most innovative amenities, or being the most guest-centric.
3. Economic Engine: Focusing on the key metrics that drive profitability, such as RevPAR (Revenue per Available Room), ADR (Average Daily Rate), or customer retention rates.
By honing in on these elements, hospitality businesses can develop a clear and focused strategy that leverages their strengths and passions to drive economic success.
Level 5 leadership in Hospitality
Level 5 Leadership is characterized by a combination of personal humility and professional will. In the hospitality industry:
– Humble leadership: Leaders should prioritize the success of the organization over personal acclaim. This means recognizing the contributions of staff, being open to feedback, and maintaining a guest-first mindset.
– Professional will: Leaders must be driven to ensure the business achieves its highest potential. This involves setting high standards, being relentless in the pursuit of excellence, and making tough decisions when necessary.
Hospitality leaders who embody these qualities can inspire their teams, foster a strong organizational culture, and drive the business toward greatness.
The flywheel effect in Hospitality
The Flywheel Effect emphasizes that greatness is achieved through cumulative, consistent efforts rather than one-off actions. For hospitality businesses:
– Consistent improvement: Focus on making small, incremental improvements in service delivery, guest satisfaction, and operational efficiency. Over time, these efforts build momentum and lead to significant progress.
– Long-Term vision: Understand that building a great hospitality business is a marathon, not a sprint. Commit to sustained effort and patience, recognizing that lasting success comes from a series of good decisions compounded over time.
By maintaining this focus, hospitality companies can build a strong foundation that propels them forward continuously.
First who, then what in Hospitality
The principle of «First who, then what» highlights the importance of getting the right people in place before deciding on the strategy. In hospitality:
– Right People: Ensure that the team comprises individuals who are not only skilled but also aligned with the company’s values and culture. This includes hiring passionate and dedicated staff who can deliver exceptional guest experiences.
– Role Fit: Place the right people in the right roles. This means understanding the strengths and potential of each team member and aligning their roles accordingly to maximize their contributions.
– Adaptability: With the right people in place, the organization can be more agile and adaptable, capable of navigating changes and seizing new opportunities effectively.
By prioritizing talent and cultural fit, hospitality businesses can build a resilient and dynamic team that drives the organization toward its goals.
The key is to make disciplined, consistent decisions and to foster a culture that values excellence, adaptability, and continuous improvement. This strategic approach can help hospitality businesses not only meet but exceed guest expectations, ensuring long-term success and industry leadership.
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