June 10, 2020
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So here we are, and you have no choice but to cut your overhead to the bone. How are you going to do it? Sacrifice the young’ uns you have invested so much in and who are just about to give you a superb return on your investment? Just because they are at the bottom or only halfway up your seniority pole? And keep some loyal key players who, frankly, may be past their prime? I am not referring to age, but to the ability to think outside the box and look at your company with a fresh set of eyes. You know, those folks who, for instance, will be totally unaware of their competition’s key numbers and statistics. Because your company, in its pre-COVID arrogance, conveyed to them the thought that there is no such thing as competition. So, you have been trying to change the company from the top, and 50% of your General Managers (some of them subconsciously) have been systematically putting the brakes on because status quo is all they know. These fellas are VERY expensive, not only to you but to your hotel owners. Juicy pension plans, huge relocation packages, up to 40 years worth of annual salary increases and then some. The young’ uns, in terms of salary, are less than half your 30-year General Managers. Don’t you think you owe it to your hotel owners to save that money (their money, incidentally)? Is the 9 to 5 General Manager still seeing the forest from the trees? I guess the “normal” or traditional reaction, in COVID-19 times, is to let go of your Hotel Managers: after all, who needs a Number Two, when you have a Number One? Not so fast, I will take a Number-One-in-training anytime over a stale and expensive Number One.

Food for thought?

Remember what they taught us at Cornell or Lausanne about inventory systems: FILO (first in last out) is about as bad a way to manage an inventory as can be. Learn about LILA (last in, last out) and you will prosper.

How do you like them apples? Stale or fresh?

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