I was talking to one of our general managers recently about a sudden change (not a good change) in the ability to accurately forecast NOI for his hotel, only to find he had stopped doing what helped him be successful.
Six months ago, for two months in a row, he and his team missed their NOI forecast by more than 7%. After conducting a very thorough “autopsy” he discovered there were some daily steps he needed to add to his forecast accuracy daily regimen to return his hotels’ NOI to one meeting the owners’ expectations. With a return of his team’s daily detailed focus on cost management and revenue management, the hotels’ NOI once again returned to the “green” zone. Seems pretty fundamental.
Fast-forward four months. To my surprise, the GM called to tell me they were going to miss their NOI forecast by a whopping 12%. When I asked him what had changed, he indicated he and his team assumed they had “fixed” the problem and had stopped doing what had made them successful in recent months.
Pretty basic stuff, huh? What can we all learn from this story? Whether you are a lineman in football, a centerfielder in baseball or a hotel GM, consistent execution of fundamentals should be as regular as breathing.
How are your teams doing?