Thoughts from a profit prophet

Thoughts from a profit prophet

It seems to me that “ordinary” companies focus on profit as their reason for existing. “What?” you say. “Isn’t that the reason we invested in this building?” Consider for a moment that profit is a result and not necessarily the singular purpose for being in business. (As in theater, success is defined by standing ovations and box office receipts, but a purpose exists in the art itself.)

When a company takes time to discover and realize its “noble purpose,” extraordinary things happen, and sizable profits flow beyond expectations. To exist merely for profit is akin to human beings existing just to procreate — there is more to the art of living and business than being in survival mode. Besides being more profitable in the short and long runs, “noble purpose” companies will thrive when others feel the need to bottom feed. 

Owners and managers in “ordinary” hotels typically believe they are in the business of selling guestrooms, food and beverage, and event space. I view those offerings as currency. In economics, currency is what we use to buy something of value (value belonging to the eyes of the beholder). It is the experience that makes the currency valuable — not the currency itself. Great businesses exist beyond that in the experience economy.

I work with companies on a program I wrote called “No Ordinary Moments,” and it is worth pondering various ways to interpret the title. 

Certainly, as it might sound, if there are “no ordinary moments,” am I saying there are only extraordinary ones? Alas, that would be unsustainable, but anything “extraordinary” is attained with a focus on holistic principles. 

The term “holistic” implies caring for the interrelatedness of all parts of a system. Investing in training but not in culture is not holistic. Ranting to your team about providing great service but having employee areas you wouldn’t proudly walk a guest through is not holistic. Leading but not being a student of whom you lead is not holistic. To act in a holistic manner is to have all parts in balance — in a dance with each other — like RevPAR.

Until the notion of RevPAR, a hotel’s rate and occupancy tended to be at odds in terms of how to maximize revenues. Utilizing RevPAR as a metric was a holistic step to optimize a hotel’s results. It was the way to integrate systems to work together versus tending to  disparate parts that cannot deliver maximum yield.

Extraordinary people are microcosms for extraordinary cultures. Holistically, they tend to community, environment, mind, body and spirit. Opportunity, eh?