Enabling better efficiencies within a hotel chain via an integrated digital tool:

The key objective behind such a digital tool, is to enable better efficiencies within the hotel chain as a whole, by focusing on better value proposition for three key constituencies – employees, guests, and vendors/business partners, which in turn would facilitate a better brand-value for such a hotel chain. That it would ultimately result in improved top-lines and bottom-lines is obvious.

 

Some features of such a digital tool, conceptualized for a leading hotel chain could include: 

  

Quality Initiatives:

 

• Standard checklists with regard to each process department-wise and property-wise to be posted. Basic philosophy of “Doing it right the first time” to be adopted for each process. Besides facilitating learning across group properties, this would also motivate the respective department heads to constantly raise the performance standards of their respective teams,  

 

• Deviations from agreed upon parameters as specified in the checklists with root-cause analysis to be incorporated, for easy reference by other department heads in various group properties. This would facilitate proactive measures to avoid unnecessary repetition/s of the same,

 

• Inputting each guest feedback product-wise and property-wise, to be shared with all the other group properties to enable proactive measures on any negative feedback in other group properties, besides serving as an inspiration for more positive feedbacks,

 

• Input the findings of process audits conducted department-wise in each property, along with suggested measures to plug the gaps so identified. This would facilitate proactive measures in the group as a whole, leading to non –repetition of any deviations in the said processes in other group properties in turn leading to better service levels to guests,       

 

• For each property, all allowances made due to disputes in the invoices generated, with their respective root-cause analysis to be posted. Commonly occurring root-causes to be identified and fixed at the process level itself, to prevent such disputes from re-occurring. Such root –cause analysis to be accessed by other group properties as well to enable them take corrective measures on a pro-active basis,

 

Profitability:

 

• Highlighting market-wise, product-wise, and segment-wise gross revenues and net profitability for each property. Cross-learning for respective department heads could follow,

 

• Identification of key accounts, individual guests, Travel Agencies, online sources etc who are patronizing more than one or more group properties, along-with their respective business volumes product –wise and contribution to each property’s bottom line. This would facilitate a holistic view of top revenue generators for the group as a whole,  

 

• Posting of complete details account-wise and guest–wise, such as: total number of room nights given, banquets and other F&B revenue, weighted average of the number of days taken to get the payments, number of allowances passed, commissions given to solicit the business (if any) and the net profitability of the said account. This could be on a year-to-date basis with the flexibility to do a comparison on two different periods as per the requirements of the respective Account Managers. Furthermore, a tailored MIS with respect to above can be generated from the system on a periodic basis, which could be shared with the relevant decision-makers of the respective accounts, 

 

• Generate reports/MIS through the system, based on varying sort criteria for e.g. descending order of profitability account-wise, or guest-wise, descending order of revenue account-wise or account-wise, delays in the receipt of payments in descending order account-wise or guest-wise, number of allowances passed in descending order etc. Such reports/MIS need to be generated property-wise as well as for the group as a whole, for business decisions at different levels,

 

• Monitoring of total account receivables outstanding end of each month as a percentage of say three-month moving average of total billings, along-with ageing of the same. Specifically, in case any particular account has reached higher than threshold exposure in any single group property, then other group properties need to exercise caution while extending any further credit to this particular account,

 

• ‘What if analysis’ to facilitate an impact on the profit numbers under different scenarios. For e.g. what if the room rate is negotiated higher by ‘X’ amount, what if the account is convinced to pay at the time of check out instead of availing BTC (bill to company), what if there are no allowances to be passed, what if the room nights are increased by this account by a well defined number, what if the commissions paid are reduced to a well defined amount or eliminated etc. Furthermore, the various outcomes by combining two more of such hypothetical scenarios, to enable informed decisions guest-wise, account- wise, property-wise and group as a whole,

 

• For all delays in receipt of payments pertaining to BTC cases, identifying causes for delays in realizing payments beyond the credit period as agreed upon, and post the same guest-wise, as well as property-wise. Further working out action plans for commonly occurring causes, which could again be posted for the benefit of other group properties.  

  

Market penetration:

 

• Pro-actively managing dormant accounts property-wise by pre-programmed alerts to highlight extraordinary time gaps in repeat business from an account or a regular guest. Furthermore, reasons behind such gaps and corrective measures taken to revive business from such dormant accounts be also posted, for the benefit of other group properties. Typically, if the office of one of the key accounts of one of the group properties,  has relocated far away thereby turning it into a dormant account for that property, then another group property which is now relatively close to this account can offer the same facilities at the same price which it had enjoyed earlier before relocating,

 

• Gauging the efficacy of loyalty program, by monitoring spending patterns of each guest so enrolled in such program, and his/her spends property-wise, department-wise, and furthermore item-wise. This in turn can be used for tailored offerings to each guest,

 

• Creating guest life-cycle and making tailored offerings. E.g. for couple married in any group property, a tailored offer to host their first wedding anniversary, first birthday of their first child in any group property at a special rate with customized menu etc,

 

• Leads generated through multiple sources for each property to be posted, along-with follow-ups done and offerings made to elicit business from such leads. Unsuccessful attempts at a property along with specific reasons, could be a lead for other group properties to work out tailored offerings to such leads, thereby attempting to elicit business from such leads. 

 

Cost Optimization:

 

• Collating total purchases item wise in both quantitative and monetary terms for each group property, to work out potential business volumes from the group as  a whole, which can be used as bargaining tool with respective vendors,

 

• Monitoring food costs as a percentage to sale revenues outlet-wise in each property, by comparing the data regarding cost of various items supplied from the food stores to respective F&B outlets viz-a-viz net sale revenues booked from such outlets in pre-specified periods. Such comparisons across identical outlets in other group properties, could lead to ideas for realizing better food costs as a percentage to sale revenues for respective F&B outlets,  

 

• Monitoring F&B related promotions with specific reference to the strategy deployed and costs incurred to promote the same viz-a-viz revenues realized. Details of the same could be viewed by other group properties for necessary fine-tuning of strategies while undertaking such F&B related promotions in future,

 

• Sharing key maintenance related information from property management modules of various group properties, with the objective of inculcating shared learning and inculcating proactive and preemptive practices to significantly reduce if not completely eliminate down-time of key machinery and equipment, besides reduction of energy related expenses,

  

• Sharing details regarding slow moving items in stores of various group properties to ensure that the same are not purchased in excess by material management teams of other properties, and if there exists a possibility of transfer of such items from one group property to another.

 

Vendor Management:

 

• Business volumes generated for each vendor with respect to his/her product/service offerings,

 

• Extent of adherence to the deadlines specified in the Purchase Orders by the vendors,

 

• Extent to adherence to exact specifications of items as mentioned in the Purchase Orders by the vendors,  

 

• Time lags involved in the receipt of invoices from the date of receipt of items/services,

 

• Quality checks and defects identified if any in such invoices,

 

• Extent of adherence to the committed credit periods for each vendor where payments are concerned, and any unacceptable delays in such payments to be identified and acted upon,

 

• Short supplies/delays in the receipt of product/services from each vendor,

 

• Feedbacks from the user departments with regard to the quality of each product/service

 

• Average delays in receipt of items/service from respective vendors from the date of issue of the Purchase Order.

  

Talent Management:            

 

• Key feedback from employee surveys and suggested corrective actions as decided by the concerned authorities in each group property be listed, for the benefit of key decision-makers at other group properties,

 

• Job vacancies in any group property could be notified to facilitate job-rotation and career development within the group as a whole, thereby reducing voluntary attrition,

 

• Extraordinary achievements by any team member at a group property to be highlighted  so as to extend the required recognition for the team member, besides to serve as  a source of inspiration to other team members within the group as a whole,

 

• Results of exit interviews property-wise along-with suggested corrective actions to be highlighted, for the benefit of key decision-makers other group properties to reduce voluntary attrition.   

 

Above all, in every module pertaining to each of the functional areas as highlighted above, the right Artificial Intelligence related software and algorithms could be built in, so that this integrated digital tool enables prompt and correct decisions by the respective users.   

                                                    

While it is appreciated that any integrated digital tool may not be able to immediately support some of the features as mentioned above, yet incorporating all such features in the integrated digital tool, besides several other features related to back-end operations, could form part of future action plans for any hotel chain. And of course, such a digital tool can be improved consistently, based on user feedbacks and business related needs.

 

 

 

Game changing idea for credit card issuers

Unleash ad campaigns with the tagline, "Wishes can be horses". Then let the ad say, "Please tell us how we can reward you for your loyalty towards ‘X’ Bank’s Cards, and depending upon the feasibility, we will show you the way to get it."

 

The key advantages would be:

 

* substantial increase in card member feed backs with key focus on their desires,

 

* much higher card spends by them to qualify for their desires, 

 

* and above all, unparalleled loyalty for ‘X’ Bank’s cards. 

 

Currently, most of the card issuers in India, follow a strategy of offering set reward points for card usage, followed by a list of rewards to be offered to their card members, depending upon their card usage.

 

But, what if none of the rewards so listed are attractive enough for a card member? What if, someone is looking for home furniture, or sprucing up their house for the forthcoming festive season, or a new car, or a new refrigerator, or any sophisticated kitchen appliance, or a family vacation at a hill resort or a sea beach, but is unable to save enough for the same?

 

In any case he/she will have to spend on certain necessities such as electricity bills, groceries, clothes, business travel, school fees for children, car fuel, car maintenance, medical insurance, medical check ups etc etc, and instead of paying through cash or other payment instruments, why not through ‘X’ Bank’s Cards, to make their "Wishes become horses", and above all at no additional cost?

 

What if someone comes up with the desire, "I want to own a C-class Mercedes Benz or BMW?" 

 

Yes, this could also be possible over a period of time, provided his/her card spends aggregate to ‘N’ amount, and on the other hand, exploring options with these two car companies to offer the best deals. Let us not forget that these two car companies are also locked in a fierce competition in most of the markets, trying to be the preferred brand for their top end prospective customers.

 

One such successful deal, could then be publicized in the media, to arouse such desires among your other card holders, which can then trigger of higher spends among them. Of course, it is  assumed that there would be nil defaults where realizing payments from such card members are concerned, and nil fraudulent transactions.

 

Parallelly, ‘X’ Bank could designate select merchant establishments as ‘preferred establishments’, based on the volumes of credit card acceptance, their location, and quality of their merchandise etc. Such a move would give an enhanced visibility to such merchant establishments, among the card members of ‘X’ Bank, and could finally entail helping such ‘preferred establishments’ grow their respective businesses, without them having to spend much on advertisements etc, besides fulfilling the hidden desires of such card members.

 

Action Plan for Parag Agrawal

After formally taking over as CEO of Twitter Inc, Parag Agrawal should first identify regular users of Twitter as well as those who haven’t posted anything since quite a while. Then, should reach out to both such sets of users and elicit their feedback as to what they find attractive about Twitter and what they feel is left to be desired.

 

Such feedbacks should then be put into two baskets – positives and negatives. While the positives need to be further strengthened, the negatives need to be worked upon as to get such users into the positive territory as far as possible.

 

Based on such feedback, he should set up a core team to identify the feasibility of implementing such feedbacks, by prioritizing them accordingly.

 

As and when any of such valuable feedback is implemented, and the positive results of the same are visible, Twitter should introduce a “Hall of Fame” section,  giving due recognition to the one who gave that particular suggestion.

 

Of course, this needs to be a continuing process and not just a one-off event.

 

Such moves would make this platform truly democratic, and other results in terms of better ad revenues, corporate sponsorships of certain features etc, would automatically follow, leading to better toplines and bottom lines, which the investors are desperately waiting for.

 

Certainly, other initiatives such opinions from team members, thorough review and audits of all the core processes etc can go on side-by-side. 

Agriculture reforms

Let agriculture reforms begin with those states where farmers have supported the three farm laws, now been repealed. Whatever their flaws, they were backed by venerable farm organizations like the Shetkari Sanghatana in Maharashtra and Confederation of Indian Farm Associations in Andhra Pradesh.

That such a move would also be politically prudent is anyone's guess.

Some tweaks may be required in these laws to accommodate the views of the farmers in reach of those states. One size may not fit all.

Now, seeing the overall benefits of farmers in those states, the farmers in other states too would demand similar moves in their respective states for their own benefit.

Boosting Loan Disbursements

To quote from today's Financial Express:

 “The loan growth has all been sluggish. The increase in non-food credit was flat at 0.1% between March and September this year, even over a longer period in the year to September 24, the growth is modest 6.8%. Again, much of this has been in the form of retail loans because banks claim that there is little demand from the companies. To be sure, there has been a fair bit of disbursement under the Emergency Credit Line Guarantee Scheme- the scheme promoted by the government to help MSME’s, a chunky 3.5 – 4 lakh crores has been lent to smaller companies. Even if banks fear that some of this may not come back – the government offers only a partial guarantee- they have been fairly enthusiastic about the ELCGS because the government has backed the scheme.

As such when risk aversion is running high, the government probably needs to initiate more of such schemes. There are those who will argue that it has a fiscal cost, in the event some of the bad loans go bad, and, therefore, risky. But, it is a risk worth taking because it could create a virtuous cycle and give the nascent recovery the necessary push. The fact is that bankers remain wary, even scared, of taking risks; they are reluctant to lend to companies with a credit rating below AA. They have made it amply clear that they do not intend to take even the smallest risks. While it is their business to take calculated and measured risks, the problem is they fear harassment in the event an exposure goes bad. Given how some banking executives have been treated so badly, it is a justified fear.

 

Last week, the finance ministry came up with accountability guidelines – for loans that carry some risk of default- to help ease the anxiety at public sector banks. From April next year, public sector bankers will not be held accountable for 'bonafide’ loans of upto Rs. 50 crores going bad. Moreover, banks have been given some flexibility on the scrutiny of smaller assets – in the region of 10-20 lakhs. These guidelines are helpful, but the threshold needs to be raised. While we cannot have malfeasance, bankers cannot be harassed and taken to task for every loan that goes bad. If the government wants to push credit, it needs to reassure bankers it is taking legislative steps to protect them. The level of risk aversion is threatening credit flows that cannot be good for the economy.”   

 

A key solution to this vexed challenge lies in a tie-up with some of the reputed management consultancies, which can can lend confidence to the banks. This would be by offering their services for some of their loan borrowers, who may be in need of expert advice to make best possible use of the loans so borrowed. So besides loans, the banking sector can also offer hand holding services to some of its borrowers via such kind of a tie-up with reputed management consultancies. Those borrowers availing of such services can possibly be given a preferred rate of interest by the banks, due to relatively low level of risk of defaulting.

 

Thus, while such a tie-up can prevent some loan borrowers of the banking system from turning into NPAs, thus proactively addressing “twin balance sheet problem”, it would also help such loan borrowers avoid insolvency related procedures which may even threaten the very existence of such businesses. Reputed management consultancies can keep the banks posted regarding the overall progress of such loan borrowers post disbursal of loans to them, so that there are no negative surprises when it comes to repayment of such loans. 

 

On a positive note, some of such loan borrowers can also be hand-held towards a better path to progress, which in-turn would also benefit the banking system via getting timely repayments of interest and the principal amounts due, besides significantly contributing to our overall economic revival.

 

For such reputed management consultancies, the benefit would chiefly be in terms of greater market penetration, adding to its revenues through fees from the banks with whom such a tie-up is made, as well as some of their loan borrowers which avail of such services.

 

Thus, such an arrangement would be a ‘win-win-win’ for all the three participants, that is- the banking system, reputed management consultancies so associated, and the loan borrowers. Attendant multiplier effects in the economy as a whole in terms of greater employment, boost in overall demand, improved tax collections etc, would be a natural by-product of such an arrangement.   

  

Challenges for some of the listed Unicorns

Three key factors which any potential investor need to consider while considering an investment in any enterprise are :

1. A definite and lasting 'unique competitive advantage' commanded by that enterprise in its industry,

2. Able top-level team running the show committed to ethical and transparent corporate governance practices, and

3. Clear path-to-profitability which is demonstrated on a consistent basis periodically via beating the market expectations.

These three factors also need to be kept in mind by all those tech based unicorns, which have either already listed or are about to be listed on our stock exchanges.

Their astronomical valuations simply on the basis of some 'hidden value' seen by some investors, is indeed worth applauding, but this is where their main challenge lies.

They now need to convince their innumerable shareholders and other key constituencies, that their 'unicorn status' was not devoid of any merit.

Thus, by first getting their act together in terms of strategic planning backed by laser-like execution, and then consistently interacting with the media and various analysts, to effectively demonstrate that they are on the right track to deliver superlative returns to their shareholders, and without compromising on any ethical and transparent corporate governance standards, would such unicorns command the necessary confidence among all their key constituencies, both internal and external.

That, by commanding such kind of confidence, would such enterprises become the latest icons of our corporate world is anyone's guess.

Ever-increasing petrol and diesel prices. Some options

Given the severe hit which even the OPEC economies had to suffer last year due to pandemic related restrictions worldwide, which saw the crude prices plunge to negative territory, it would be unrealistic to expect them to pay heed to our request to beef up the supplies to keep the crude prices in check ,so as to serve ours as well the interests of other major importers of crude oil.

It's but natural that OPEC countries too are now trying to recoup their losses, given the fact that their respective economies too have suffered. Given such a situation, it's now anyone's guess that the international price of crude oil would cross $100 per barrel by December when it's demand peaks.

That the ever increasing retail prices of petrol and diesel can have major negative impact on our economic revival, is certainly not lost on our policy-makers. And, at this rate given the limitations of our government because of which a cut in taxes on the same is currently being ruled out, the retail prices of petrol and diesel by the year end is anyone's guess.

Some options worth considering are:

a) Issuing oil bonds or revisiting our fiscal deficit targets to defer the costs of increasing oil prices for another few years ,when it is expected that our economy would be back on its' all-inclusive growth trajectory. But simultaneously, keep up with reforms in various sectors, and keeping all key domestic and international constituencies well-informed consistently, on our plans to ensure macro-economic stability while pursuing our 'growth without pain' strategy,

b) Try working out a quid-pro-quo relationships with each member of OPEC for mutual assistance in our common overall economic objectives. It is well known that OPEC is not a monolithic entity, and each member has its own priorities and compulsion. A rupee trade or a barter deal involving oil imports from them and access to our technology and market could be a key element,

c) Actively working with some European nations and China to ensure the revival of US-Iran nuclear deal, thereby leading to lifting of all sanctions against Iran. This would force OPEC to boost oil supply thereby leading to softening of oil prices,

d) On a parallel note, working out more reliance on Iran as a trusted supplier of energy, and on a quid-pro-quo basis to address its needs post pandemic, and

e) Other measures such as thrust on non-conventional energy sources etc, need to be kept on track with as many international alliances as possible, especially given the urgent need to combat the threats of climate change confronting the planet as a whole. But, these would take their own time to yield dividends.

Top-end Movie Theatres and Star-Rated Hotels

With both top-end movie theatres like PVRs etc struggling to win back audiences, and hospitality sector (except those in leisure or holiday destinations) struggling to win back guests, it would be great if both join hands to woo the same target audience.

Certainly, those movie-goers who can afford movie tickets worth a few hundred rupees, could as well be potential target audience for star-rated hotels as well. Thus, if both these segments undertake cross-promotional activities for each other's benefit, it could be of mutual benefit to each other.

Going further, both such businesses could conceptualize an eco-system, whereby the complimentary needs of the same target audience could be addressed by different businesses forming such an eco-system. Furthermore, cross-promotions by each such business would enable everyone to reap benefits from synergies evolving from such an arrangement.

The basic principle underlying such an idea is:

"Wherever the target audience of a business congregates, be it in any physical or any virtual environment, there exists scope for a targeted marketing activity, with an aim to address complimentary needs of such a target audience"

Re-imagining LinkedIn

Re-imagining 'LinkedIn' by making it the ‘first port of call’ for anyone seeking help, such as:

•  An individual seeking employment opportunities, or fame, or recognition,
•  Start-ups desirous of reaching out to potential investors or customer base in a highly cost effective manner,
•  Businesses seeking to identify the extent of awareness and perceptions regarding their products/services, among their intended target audience through focused communication strategies, and
•  Progressive organizations experimenting with out-of-the-box techniques for identifying the right talent, etc

Broad outline of the strategies to accomplish the same could include the following:

• Re-imagining recognitions and appreciations on one’s posts which currently are generally limited to ‘likes’ and ‘comments’ or ‘shares’ through one’s own circle of friends on LinkedIn. Create a “Hall of Fame” in LinkedIn, where certain individuals or groups who have surpassed certain standards in the quality and popularity of their posts or professional accomplishments in their respective fields, are granted recognition in this coveted section. And what’s more, this section can be viewed by any member in LinkedIn,
• Re-imagining motivations to post something meaningful on this platform. Going beyond the number of ‘likes’ ‘comments’ or perhaps ‘shares’ of one’s posts from one’s own circle of friends. Allow any ‘worthwhile post’ to be accessed by even those who are not a part of one’s friend circle by creating a section say “Special posts” where some worthy posts can be placed and viewed by any one who is interested. The definition of ‘worthwhile post’ can be in terms of it’s relevance, clarity of thought, articulation, and depth of knowledge in the particular domain. Such posts can be placed in the section of “Special posts”. Certainly, this can facilitate interactions between those who are not connected to each other in LinkedIn which can be an important motivator,
•  Re-imagining support to promising start-ups. A separate section for promising start-ups to showcase their respective venture ideas, quality of talent driving such ventures, milestones reached, and strategies under consideration for future growth. Any interested venture capitalist or talent desirous of being part of their success journey can then always connect with the respective ventures on a one-on-one basis,    
•  Re-imagining the way businesses connect with their target audience. For example, by organizing contests on LinkedIn by such businesses, to identify extent of awareness or familiarity of sample of their target audience, their opinions, perceptions etc. with regard to the products/services of such businesses.  Such inputs can then serve as a valuable source of information for such businesses for key decisions while working out their product strategies or service offerings, as well as for their marketing communications. Attractive prizes could be sponsored by such businesses for those members who offer useful insights and suggestions, which yield good dividends for such businesses in terms of improved toplines and market share,
•  Re-imagining hiring techniques by some of the progressive corporates. For example by organizing contests on LinkedIn to identify the analytical abilities and attitudes of their potential talent pool. Such identified talent can serve as a valuable resource pool  for such progressive corporates who can be considered at an appropriate time by further evaluations and interviews etc, and
•  Re-imagining talent contests for the entertainment industry on similar lines as above. Specifically, now the entertainment industry too is looking for a new paradigm for revival post the pandemic. Why not use LinkedIn as one of the key mediums to elicit some insightful ideas, sample videos of some promising talent etc to arrive at the new paradigm for revival?  

More of such innovative ideas can be deliberated upon.