Systems | KRG Hospitality

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September 24, 2024by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 2

The Modern Approach to Systems: Part 2

by Doug Radkey

Six Sigma is a data-driven methodology that focuses on reducing variability and defects in processes to improve overall quality and efficiency.

The term “Six Sigma” refers to a statistical measure that indicates a process is nearly perfect, with only 3.4 defects per million opportunities. This is a methodology that aims to streamline operations, reduce waste, and enhance guest satisfaction by eliminating errors and inconsistencies systematically.

If you want to learn more about the Kaizen approach, please refer to part one of this series, in which we outline the definition and case-study use of Kaizen in bars, restaurants, and hotels.

Introduction to Six Sigma

The concept of Six Sigma was developed by Motorola in the 1980s as a means to improve manufacturing processes and product quality.

Its development was driven by the need to meet the increasingly stringent quality standards in the electronics industry. Motorola’s success with Six Sigma prompted other companies to adopt the methodology, most notably General Electric (GE).

Under the leadership of CEO Jack Welch, GE refined and expanded Six Sigma principles, applying them across various business units to achieve significant cost savings, and quality improvements. This broader application demonstrated the versatility of Six Sigma, making it relevant across industries beyond manufacturing.

The core concepts of Six Sigma revolve around a structured problem-solving framework known as DMAIC, and a strong emphasis on data-driven decision-making. These elements are crucial for identifying inefficiencies, implementing improvements, and sustaining high-quality outcomes.

Framework

The DMAIC framework is the backbone of the Six Sigma methodology, providing a systematic approach to process improvement.

It consists of five phases:

Define: In this phase, the project team identifies the problem, defines the project scope, and sets specific goals. This includes understanding guest requirements and expectations, which are crucial for ensuring that improvements align with guests needs.
Measure: The measure phase involves collecting data on the current process to establish a baseline. Key performance indicators (KPIs) are identified, and data collection methods are standardized to ensure accuracy and consistency. This phase is crucial for quantifying the extent of the problem, and providing a foundation for analysis.
Analyze: In the analyze phase, the collected data is examined to identify root causes of defects or inefficiencies. Statistical analysis tools, such as regression analysis and hypothesis testing, are used to uncover correlations and patterns. This phase helps isolate the factors contributing to variability and defects.
Improve: Based on the insights gained from the analysis, the project team develops and implements solutions to address the root causes. This phase may involve redesigning processes, implementing new technologies, or training staff. The goal is to reduce variability, eliminate defects, and enhance process efficiency.
Control: The final phase focuses on sustaining the improvements made. Control measures are put in place to monitor the process, ensuring that changes are maintained, and that the process does not revert to its previous state. This may include implementing control charts, conducting regular audits, and setting up a response plan for any deviations.

Six Sigma’s emphasis on data-driven decision-making sets it apart from other quality improvement methodologies. By relying on empirical data and statistical analysis, Six Sigma users can make objective decisions based on facts rather than intuition.

Belt System

A unique aspect of Six Sigma is its structured certification system, represented by different belt levels, similar to martial arts.

These belts denote varying levels of expertise and responsibility in Six Sigma methodologies:

Yellow Belt: Yellow Belts have a basic understanding of Six Sigma principles, and assist in data collection and process mapping within their work areas.
Green Belt: Green Belts work on Six Sigma projects part-time while performing their regular job duties. They lead smaller projects, and support Black Belts in data analysis and project implementation.
Black Belt: Black Belts are full-time Six Sigma professionals who lead major projects, mentor Green Belts, and drive process improvement initiatives. They possess advanced statistical analysis skills, and a deep understanding of Six Sigma methodologies.
Master Black Belt: Master Black Belts are highly experienced Six Sigma experts who provide strategic direction, mentor Black Belts, and oversee large-scale improvement projects across the organization. They play a crucial role in developing Six Sigma strategies, and ensuring alignment with organizational goals.
Champion: Champions are senior executives who sponsor Six Sigma projects, and ensure they align with the organization’s strategic objectives. They provide the necessary resources and support to ensure project success.

In summary, Six Sigma is a robust methodology focused on reducing variability and defects through a structured, data-driven approach.

The DMAIC framework guides project teams through problem identification, solution implementation, and control, ensuring sustainable improvements. The certification system, with its various belt levels, provides a clear path for professional development and project management within the Six Sigma framework.

As a result, Six Sigma has become an essential tool for organizations seeking to enhance quality, efficiency, and guest satisfaction.

Applying Six Sigma to the Industry

Through the use of data-driven techniques and structured problem-solving frameworks, Six Sigma helps hospitality businesses optimize processes, enhance quality, and deliver exceptional guest experiences.

Below, I explore the application of Six Sigma in bars, restaurants, and hotels, highlighting specific areas of improvement.

Six Sigma in Bars

Analyzing Beverage Preparation Times: Six Sigma methodologies can be used to analyze the time taken to prepare various drinks, identify bottlenecks, and streamline processes. By collecting data on preparation times and using tools like time-motion studies, bars can pinpoint inefficiencies in their workflow. For instance, rearranging the bar layout, standardizing drink recipes, or optimizing the order in which ingredients are prepared can reduce preparation times. The reduction in prep time leads to faster service, happier guests, and more profits.

Reducing Waste and Improving Inventory Management: Six Sigma tools such as a root-cause analysis can help identify common sources of waste, such as over-pouring, spoilage, or theft. Bars can maintain accurate stock levels, reduce over-ordering, and minimize losses through the implementation of standardized inventory tracking systems, and the conducting of regular audits. Additionally, Six Sigma’s emphasis on data analysis can guide purchasing decisions, ensuring that inventory is aligned with actual demand.

Enhancing Guest Service: Six Sigma can be used to develop and implement comprehensive training programs that cover all aspects of service, from drink preparation to guest interaction. Bars can ensure that all employees provide a uniform level of service by setting clear performance standards, and evaluating staff regularly against this set of criteria. This consistency not only enhances the experience but also strengthens your brand’s overall equity.

Six Sigma in Restaurants

Improving Order Accuracy and Reducing Wait Times: Six Sigma methodologies can optimize the entire order-to-delivery process, from taking orders to serving food. Process mapping and flowcharts can identify potential errors or delays in the process, such as miscommunication between front-of-house and kitchen team. Implementing technology solutions such as digital ordering systems or kitchen display screens (KDS) can reduce these errors, and streamline communication. Additionally, Six Sigma’s data-driven approach can help restaurants analyze peak times and adjust staffing levels accordingly, reducing wait times and improving service efficiency.

Implementing Quality Control Measures: Six Sigma can establish quality control measures for food preparation and presentation, ensuring that each dish meets established standards. This includes defining portion sizes, cooking temperatures, and plating guidelines. Regular quality checks and guest feedback can help maintain these standards and identify areas for improvement. By reducing variability in food quality, restaurants can enhance guest satisfaction, and build a more loyal base of targeted guests.

Six Sigma in Hotels

Reducing Check-In/Check-Out Times: Six Sigma can optimize these procedures by analyzing data on check-in/check-out times, and identifying factors that cause delays. For instance, complex booking systems, insufficient staffing, or lengthy verification processes can all contribute to longer wait times. Streamlining these procedures, such as implementing mobile check-in options or express check-out services, can reduce wait times, and enhance the overall guest experience.

Enhancing Guest Satisfaction: Six Sigma can help establish and maintain high standards for room cleaning and upkeep. This involves defining cleaning protocols, setting time standards for housekeeping tasks, and inspecting rooms regularly for quality assurance. By using control charts and other Six Sigma tools, hotels can monitor the consistency of their housekeeping services, and address any deviations quickly. This attention to detail ensures that guests receive a high level of service consistently, contributing to positive reviews and repeat business.

Analyzing and Reducing Service Errors and Complaints: Service errors and complaints can impact a hotel’s reputation and guest satisfaction negatively. Six Sigma can help hotel operators analyze service errors systematically, including incorrect billing, room assignment issues, or poor guest services. Hotels can implement targeted improvements to prevent future occurrences by categorizing complaints, and identifying their root causes. This might include additional staff training, process adjustments, or technology upgrades. Addressing service issues proactively allows hotels to enhance the overall guest experience, and reduce the likelihood of negative reviews.

In conclusion, Six Sigma provides a structured and data-driven approach to improving operations in the hospitality industry. Whether in bars, restaurants, or hotels, this methodology helps businesses streamline processes, reduce variability, and deliver high-quality experiences to their customers.

Hospitality businesses can achieve operational excellence—and gain a competitive edge in a dynamic and demanding market—by embracing and implementing Six Sigma.

Benefits of a Systematic Approach

While Six Sigma and Kaizen are distinct methodologies with unique strengths, combining these approaches can provide a comprehensive framework for achieving operational excellence in the hospitality industry.

Together, they offer a balanced focus on both long-term strategic improvements and continuous, incremental changes, addressing various aspects of business operations.

Here, I explore how these methodologies can be integrated, and the benefits of leveraging both to enhance your brand’s performance.

How to Integrate Six Sigma and Kaizen

Six Sigma: Focuses primarily on identifying and eliminating defects, reducing variability, and optimizing processes through a structured, data-driven approach. It is particularly effective for tackling complex, high-impact issues that require deep statistical analysis and root-cause identification.
Kaizen: Emphasizes continuous improvement through small, incremental changes. It encourages a culture of employee involvement and teamwork, focusing on making everyday processes more efficient and effective.

Sequential Implementation

Start with Six Sigma to address critical issues, and achieve significant breakthroughs in process efficiency and quality. The DMAIC framework can be used to tackle complex problems, ensuring that major defects and inefficiencies are identified, and resolved.

Follow up with Kaizen to maintain the momentum of improvement. Once the significant issues are addressed, Kaizen can help sustain the gains by fostering a culture of continuous improvement.

This approach ensures that even minor inefficiencies are regularly identified and addressed.

Parallel Application

In some cases, Six Sigma and Kaizen can be applied simultaneously to different areas of the business.

For instance, Six Sigma can be used to optimize high-priority processes such as inventory management and order accuracy, while Kaizen initiatives focus on enhancing guest services and staff engagement.

Comprehensive Improvement

By combining Six Sigma’s analytical rigor with Kaizen’s focus on incremental change, your hospitality business can achieve comprehensive improvement(s).

Six Sigma addresses large-scale, systemic issues, while Kaizen ensures that smaller, day-to-day improvements are made consistently. This dual approach covers a wide spectrum of operational challenges, leading to more holistic development.

Enhanced Employee Engagement

Kaizen’s emphasis on involving all employees in the improvement process complements Six Sigma’s structured project management approach at the leadership level. This combination fosters a sense of ownership and accountability among staff at all levels.

Employees are encouraged to contribute ideas and solutions, creating a more inclusive and engaged workforce. The involvement of employees in both large-scale Six Sigma projects and smaller Kaizen initiatives ensures that everyone is invested in the organization’s success.

Flexibility and Adaptability

The integration of Six Sigma and Kaizen allows businesses to be more flexible and adaptable. Six Sigma provides a robust framework for addressing well-defined, complex problems, while Kaizen offers a more flexible, grassroots approach to managing change.

This adaptability is crucial in the hospitality industry, where market conditions and guest expectations can change rapidly. Businesses can respond more effectively to new challenges and opportunities by using both methods.

Balanced Approach to Cost and Efficiency

Six Sigma’s focus on reducing defects and variability often leads to cost savings through improved efficiency, and reduced waste. Kaizen, on the other hand, emphasizes optimizing everyday processes, which can lead to incremental cost reductions and efficiency gains.

Together, they provide a balanced approach to cost management, ensuring that both significant and minor inefficiencies are addressed.

To the Future

As the hospitality industry continues to evolve, the future of systematic approaches like Six Sigma and Kaizen holds promising potential for further innovations and advancements.

With the increasing integration of technology, such as AI-driven analytics and automation, these methodologies are set to become even more powerful tools for optimizing operations, and enhancing guest experiences. The future will likely see more sophisticated data analytics capabilities, enabling real-time decision-making and predictive insights that can address issues preemptively, before they impact guests.

Additionally, the focus on sustainability and ethical business practices will drive the development of new strategies that not only improve efficiency but also reduce environmental impact.

Moreover, the rise of remote work and digital collaboration tools for larger hospitality groups and portfolios will make it easier for global teams to implement and sustain these systematic approaches, regardless of geographical location. This shift will further democratize access to best practices, allowing even smaller hospitality businesses to compete on a larger scale by adopting proven methodologies.

Simplify the Journey

In light of these advancements, we encourage hospitality businesses to embrace Six Sigma and Kaizen as integral parts of their operational strategy.

Adopting these methodologies helps businesses to improve processes, reduce costs, and enhance the quality of service systematically. This not only leads to immediate benefits, such as increased guest satisfaction and loyalty, but also positions businesses for long-term success in a dynamic and competitive market.

The journey toward operational excellence is continuous, and the integration of these systematic approaches can be a game-changer. As the industry moves forward, those who invest in these methodologies will be better equipped to adapt to new challenges, and seize emerging opportunities.

We urge hospitality businesses to take action now, leveraging Six Sigma and Kaizen to build a resilient, efficient, and guest-focused operation that stands the test of time.

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September 17, 2024by David Klemt David Klemt No Comments

The Modern Approach to Systems: Part 1

The Modern Approach to Systems: Part 1

by Doug Radkey

Must be a magician.

In the hospitality industry, where guest satisfaction and operational efficiencies are paramount, systematic strategies are essential for maintaining a high-level of excellence.

Whether you’re running a high-end cocktail bar, a fast-casual restaurant, or an elevated boutique hotel, the intricacies of daily operations demand a structured approach to ensure smooth functionality, and exceptional service delivery.

After walking through this approach recently with a client, I thought it would be a great opportunity to introduce you to two powerful methodologies that have transformed businesses worldwide: the Kaizen methodology, and Six Sigma strategies. We use both of these approaches with all our clients at KRG Hospitality because they offer comprehensive frameworks for achieving operational excellence through continuous improvement and efficiency.

Kaizen, with its focus on incremental changes and fostering a culture of constant innovation, and Six Sigma, with its emphasis on reducing variability and enhancing quality, provide invaluable tools for those in this industry.

By exploring their application in bars, restaurants, and hotels, I am going to highlight how these systematic strategies can elevate guest experiences, and create a culture of excellence that will help improve nearly every aspect of your business.

Understanding Kaizen

Kaizen is a Japanese term that translates to “change for the better,” or “continuous improvement.” It represents a philosophy that emphasizes small, incremental changes to processes, products, or services rather than large-scale transformations.

This approach fosters a culture of constant improvement, encouraging everyone in an organization to contribute to enhancing efficiency and quality.

The concept of Kaizen originated in post-war Japan, where it was developed as a response to the need for rapid industrial growth and efficiency. It gained widespread recognition and was popularized by Toyota’s production process, known as the Toyota Production System (TPS).

Toyota implemented Kaizen principles to streamline its manufacturing processes, reduce waste, and improve overall quality. Ultimately, this approach played a crucial role in establishing the company as a global leader in the automotive industry today.

The Core Principles of Kaizen

Focus on Incremental Changes and Continuous Improvement: Kaizen emphasizes making small, manageable changes regularly rather than waiting for major breakthroughs. This approach allows for the constant refinement and improvement of processes, leading to significant compounded gains over time. Seeking better ways to do things continuously helps organizations stay agile, and respond to changes in the market or industry quickly.
Emphasis on Teamwork and Employee Involvement: A key aspect of Kaizen is the active involvement of all employees, from top management to frontline workers. Everyone is encouraged to identify areas for improvement, and to contribute ideas. This inclusive approach fosters a sense of ownership and accountability, as employees at all levels feel empowered to make meaningful changes. Teamwork is essential in Kaizen, as collaboration and open communication enable the sharing of knowledge and best practices.
A Culture of Continuous Learning: Kaizen promotes a learning-oriented culture in which employees are encouraged to develop their skills and knowledge continuously. This focus on education and training helps create a workforce that is adaptable and capable of implementing improvements. By cultivating a mindset of curiosity and openness to new ideas, organizations can foster innovation, and sustain long-term growth.

The Plan-Do-Check-Act Cycle

The PDCA cycle, also known as the Deming Cycle, is a foundational tool in the Kaizen methodology. It provides a structured framework for implementing changes, and ensuring their effectiveness. The cycle consists of four stages:

- Plan: Identify an area for improvement, set objectives, and develop an action plan.
- Do: Implement the plan on a small scale, testing the proposed changes.
- Check: Evaluate the results of the implementation, comparing against objectives.
- Act: Based on the evaluation, make necessary adjustments, and standardize the successful changes. If the results are not satisfactory, revisit the Plan stage, and repeat the cycle.

The PDCA cycle is a continuous loop that encourages organizations to keep refining their processes, and strive for excellence continuously. It ensures that improvements are data-driven and based on careful analysis, reducing the risk of failure, and increasing the likelihood of sustainable success.

Applying Kaizen to the Industry

By fostering a culture of efficiency, teamwork, and guest-centricity, Kaizen helps bars, restaurants, and hotels enhance their operations, and deliver exceptional guest experiences.

Here, I explore how Kaizen can be applied, using three key areas as examples.

Kaizen in Bars

Streamlining Bar Layout and Workflow: In a bar setting, the layout and workflow are crucial for ensuring quick service, and minimizing wait times. Kaizen encourages a meticulous examination of the bar’s physical layout, from the positioning of glassware and bottles to the arrangement of mixing stations and garnishes. By optimizing these elements, bars can reduce the time taken to prepare and serve drinks, leading to faster service, and increased guest satisfaction. For example, organizing the bar setup to minimize the distance bartenders need to travel can enhance efficiency significantly.

Continuous Menu Optimization: Guest preferences and trends in the beverage industry are evolving constantly. Kaizen’s principle of continuous improvement can be applied to menu optimization, where bars review sales data and guest feedback regularly to refine their offerings. By identifying popular drinks and experimenting with new mixes, bars can keep their menus fresh and appealing. Additionally, removing underperforming items helps streamline inventory and reduce waste, contributing to overall cost efficiency.

Enhancing the Guest Experience: Kaizen emphasizes the importance of guest interaction in creating a memorable experience. Regular staff training is vital to ensure that bartenders and servers are skilled in both mixology and guest services. Training sessions can focus on refining communication skills, upselling techniques, and handling guest questions more effectively. By fostering a welcoming and engaging atmosphere, bars can enhance satisfaction, and encourage repeat business.

Kaizen in Restaurants

Implementing Lean Kitchen Practices: In restaurants, the kitchen is the heart of operations. Kaizen can be applied to implement lean kitchen practices that minimize waste, and improve efficiency. This includes optimizing food preparation processes, standardizing portion sizes, and ensuring proper inventory management. By reducing unnecessary steps and streamlining workflows, restaurants can decrease preparation times, reduce food waste, and, ultimately, lower their food costs.

Refining Service Protocols: Refining service protocols regularly is essential for maintaining high standards of guest service. Kaizen encourages continuous evaluation and improvement of service procedures, from seating arrangements to cleaning protocols to table service. Restaurants can identify bottlenecks in service delivery by analyzing guest flow and feedback, and make necessary adjustments. For instance, optimizing the sequence of service can increase table turnover rates, allowing restaurants to serve more guests during peak hours, and maximize revenue.

Encouraging Staff Participation: A core tenet of Kaizen is the involvement of all employees in the improvement process. In restaurants, this means encouraging staff to identify operational challenges and propose solutions. Restaurants can tap into a wealth of boots-on-the-ground insights by fostering an inclusive environment in which employees feel valued and heard. Regular pre-shift meetings, team meetings, and one-on-ones can be effective platforms for gathering feedback and implementing changes. This participatory approach not only enhances operational efficiency but also boosts employee morale and engagement.

Kaizen in Hotels

Optimizing Housekeeping Processes: Housekeeping is, of course, a crucial component of hotel operations, impacting guest satisfaction directly. Kaizen can be applied to optimize housekeeping processes, ensuring timely room turnovers, and maintaining high cleanliness standards. This involves standardizing cleaning procedures, scheduling, and the use of cleaning supplies. Hotels can reduce the time required to prepare rooms for new guests by implementing efficient practices, improving occupancy rates, check-in times, and guest experiences.

Improving Front Desk Operations: The front desk is still the first point of contact for guests at many hotels, and it plays a crucial role in shaping a guest’s first impressions. Kaizen encourages continuous improvement in front desk operations, focusing on streamlining check-in/check-out processes, managing guest inquiries, and handling reservations. By leveraging technology and training staff, hotels can reduce wait times, enhance service accuracy, and provide personalized experiences. For example, implementing mobile check-in options can expedite the process and cater to tech-savvy travelers while freeing up time for staff to spend with guests who are not so tech-savvy.

Fostering a Culture of Hospitality and Attentiveness: Beyond operational efficiency, Kaizen promotes a culture of hospitality, and attentiveness among hotel staff. This involves training employees to anticipate guest needs, provide courteous service, and handle special requests with care. Hotels can cultivate loyalty and encourage positive reviews by creating a welcoming environment, and exceeding guest expectations consistently. Regular feedback loops, such as guest satisfaction surveys, can help hotels identify areas for improvement, and ensure that staff remain committed to providing exceptional service.

Takeaway

The application of Kaizen in bars, restaurants, and hotels leads to enhanced efficiency, improved service quality, and increased satisfaction.

By focusing on continuous improvement and involving all employees in the process, your business can create a dynamic and responsive environment that adapts to changing guest needs and market conditions. This commitment to excellence not only drives operational success but also strengthens your brand reputation, and guest loyalty.

To keep this from being too long, I’ve broken this article into two parts. Look for part-two on developing Six Sigma, and how combining both Kaizen and Six Sigma can take your business to new heights.

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July 19, 2024by David Klemt David Klemt No Comments

Entrepreneurship with Purpose

Entrepreneurship with Purpose: Your Why, How & What

by David Klemt

Don’t freak out! This is subtext, and a nod to the Death & Co. brand and their Big Horn Sheep cocktail mug.

Not every operator can transform their vision for owning a bar into building a hotel, so when someone who does just that wants to talk, it’s wise to listen.

I can’t be sure if the Death & Co. team knew they were building an empire when they opened their first cocktail bar. After listening to David Kaplan’s keynote at the 2024 Flyover Conference, I do believe the team laid the foundation to ensure their success before ever greeting their first guests.

Further, I like to think that opening in NYC on NYE and ushering in 2007 with a brand-new concept embodies the Death & Co. ethos. Literally, the bar and its first patrons marked the passage of time from one year to the next. Figuratively, death symbolizes change, and Death & Co. as a brand is certainly a metaphor for revolution and metamorphosis.

As a bar, Death & Co. is noteworthy for the significant contributions it made to the modern Cocktail Revival. Among the craft cocktail bar’s New York scene peers were Pegu Club, Milk & Honey, and Employees Only.

According to Kaplan, six years went by before the team even considered taking on a new location. In 2018, Death & Co. Denver opened inside The Ramble Hotel. A year later came Death & Co. Los Angeles. Four years after opening in LA, in 2023, the craft cocktail brand entered the Washington, DC, market. Announced a couple of weeks ago, there will be a fifth outpost in Seattle.

And those are just the Death & Co. locations.

Why, How & What

The type of unrelenting success achieved by the Death & Co. team doesn’t happen overnight. It takes drive and clarity, and a ruthless dedication to understanding purpose, process, and outcome.

Expanding on the point of clarity, Death & Co. falls under the Gin & Luck umbrella, of which Kaplan is the CEO.

During his keynote, titled “Crafting Success: The Journey of Purpose-Driven Entrepreneurship,” he shared his personal and professional approaches to business. Along with being engaging and informative, Kaplan is also transparent.

For example, he shared his personal core values and those of the Death & Co. brand. Kaplan’s are the pursuit of excellence, meaningful work, relationships, challenges, and creativity. As a brand, Death & Co. core values are curiosity, pursuit of excellence, Always Be Knowing (ABK), contagious joy, and connection.

But, I get ahead of myself. To start his keynote, Kaplan explained a few key terms and how they relate to one another. A person’s why, personal or professional, is their purpose for doing something. On a grander scale, their why can be the purpose that drives their entire life.

How is process, the systems and procedures that will move one forward. What, in this context, is outcome, or the result that a person is working to achieve.

As Kaplan explained, when one comes to understand their purpose, that leads them down the path of understanding and developing their process. Ultimately, understanding the why and how leads to an understanding of their what.

Do the Work

Among the excellent points made by Kaplan was this: None of us are born with an understanding of entrepreneurship (including those who make being an entrepreneur look so easy).

Rather, in Kaplan’s opinion, we’re all faking it until we make it. This goes for business partners and investors, as well. Basically, people who are faking it until they make it are walking into rooms with people who are doing the same, or have done so to get into a particular room themselves.

That doesn’t mean that every new business owner is being disingenuous. Nor does it mean that every partner is being deceitful about what they bring to the table.

In my interpretation of what Kaplan shared during his keynote, every entrepreneur—until they’ve achieved their desired outcome—is an unknown quantity. They need to develop the confidence to share their vision clearly to their future leadership team, front- and back-of-house teams, partners, investors, and guests.

So, how does an entrepreneur develop an optimistic view of the challenges they’re about to face? And how do they gain the confidence to inspire others to buy into their ideas?

There are a number of exercises that will help a person understand their identity, path, and another “why.” Another way to state this is that one can find their true calling, take psychological ownership of their journey, and develop the entrepreneurial passion to make their dream a reality.

However, to gain this understanding, people need to put in the work.

Effective Exercises

If one works hard now, they can develop the psychological capital necessary to take on difficult challenges in the future.

In the context of Kaplan’s keynote, this means if a person works toward self-awareness today, they’ll put themselves in a better position to be a successful operator before they open their doors for the first time.

There are all manner of self-defining activities and questions that can help a person understand who they are. As importantly, they can give a person an idea of their true aspirations. A few examples are completing the University of Pennsylvania’s Values in Action Strength Test, practicing mindfulness (being present in the moment), journaling, and meditation.

As far as self-defining questions, here are a few examples:

What are my dreams and goals?
What’s my biggest strength?
What’s my biggest weakness?
Am I the type of person who makes decisions based on intuition or logic?

Again, that’s barely a handful of the questions one can ask themselves to gain self-awareness.

Another important exercise is to identify personal and professional core values. Kaplan recommends people do this in a setting outside of their normal routine. So, not at home, their current workplace, a cafe one frequents regularly, etc.

Core Values

When a client signs on with KRG Hospitality, part of the process includes identifying core values, as well as creating a mission statement. This important exercise is known as Napkinomics.

Questions and prompts include:

How important is growth to you, professionally and personally?
Where do you want to see the brand within the next five years?
Describe a similar brand, and why you’re drawn to it.

Helpfully, Kaplan shared his approach to identifying core values during his Flyover keynote.

First, he considers peak experiences. Then, crucially, he flips that on its head and recalls negative experiences. Another key step is considering important aspects to experiencing fulfillment. Ask yourself what feels essential, adding context to each answer. At the end of this exercise, one should have a list of personal core values. (As a reminder, Kaplan’s and Death & Co.’s core values are shared at the top of this article.)

There is, however, another step that Kaplan shared during his presentation: Revisiting core values.

As he said, a person can—and I’ll add absolutely should—revisit their personal core values. They’ll likely change throughout the years. So, a person should update them from time to time.

Also, Kaplan advises people to give themselves grace; one should realize that they may not live their core values every day of the week. That’s perfectly acceptable. However, if someone finds that they’re routinely not living their core values, it’s time to revisit and update them.

The Mission

During his keynote Kaplan explained that a mission statement should encompass several key components. These are one’s skills and abilities, personality traits (a.k.a. how they operate), values, dreams, and passions.

A mission statement is a declaration of purpose, which is why it’s such a powerful tool. Again, we walk KRG Hospitality clients through this process utilizing Napkinomics.

During his keynote, Kaplan shared the following fill-in-the blanks-style sentence. It should provide someone with an idea of how to identify a personal or brand mission statement.

“I will [action] for [audience] by [skills] to [desired result].”

From there, one can polish and restructure the sentence to craft a non-negotiable declaration of purpose that fits them or their brand. For example, Kaplan shared Death & Co.’s mission statement:

“Creating experiences and connecting people through cocktail-anchored hospitality.”

Providing context, Kaplan shared a long-form version of the above: “We create experiences to foster and allow for deeper human connection through cocktail anchored hospitality.”

With the mission statement in place, Kaplan, his partners, and the Death & Co. team have been able to identify and work toward a key goal:

“To become the most established cocktail-anchored hospitality company in the world by December 31, 2028.” For the eagle-eyed, that’s a deadline of 20 years after the NYC bar’s grand opening.

Now, “most established” can be seen as somewhat nebulous. So, the Death & Co. team has identified metrics to ensure their lofty goal is SMART (specific, measurable, achievable, relevant, and time-bound):

A great place to work.
The thought leader in the space (being part of the overall hospitality conversation, and helping lead others).
A healthy, profitable business.
Regionally and globally recognized.

Tie it Together

Considering the symbolism of death as change, you and your team are undergoing a metamorphosis.

Taking the steps to pull your concept out of your imagination and bring it to life involves change. Changing your personal relationships, your position within the hospitality industry, your relationship with risk… Changing your life, and significantly so.

Further—no pressure—you’re also transforming the lives of everyone who buys into your dream and decides to work with you. You’re asking people to bet on you as a leader, and buy into your vision. Whoever accepts that challenge is risking a lot, and this cannot be overstated.

Keeping your business alive and moving forward also requires change. It will have to evolve with the times and guest expectations. And should you scale your business you’ll once again face significant changes.

Becoming an entrepreneur requires the “death” of your previous life. In the infancy of this process, you’re going to feel discomfort. You may feel fear, and you’ll feel uncertainty. A deep understanding of why, how, and what are crucial to navigate the process and work through those feelings.

After all, if you don’t know what you’re working toward, why would you endure this challenge? How will you achieve your “what” if you haven’t developed the process to get there? And without a “why,” no entrepreneur’s vision becomes reality.

There’s no reason to fear the death of your life prior to the beginning of your journey as an entrepreneur and operator. The only things to fear are never taking the first step, and not starting off in the strongest position possible.

Sit down today to identify your why, your how, and your what. If you need help, we’re here for you.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

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October 11, 2022by David Klemt David Klemt No Comments

The Crucial Role Systems Play

The Crucial Role Systems Play

by David Klemt

Having efficient systems in place does more than just streamline day-to-day restaurant, bar, and hotel operations and increase productivity.

Of course, that’s an excellent reason for operators to ensure they implement multiple systems. Front-of-house, back-of-house, and leadership team members need systems to perform at their best.

Six Sigma, kaizen, the technology stack, checklists, manuals, marketing strategies, the guest journey… Each of those systems and more are key to the long-term success of restaurant, bar, and hotel operations.

In fact, these systems should be developed and ready for implementation before the doors ever open for the first time.

Further, effective systems communicate the expectations for roles and tasks. Onboarding and training systems improve recruitment and retention. Also, they provide the transparency that today’s professionals expect from their employers. On top of that, systems help develop consistency, which keeps guests coming back.

A strong leadership team is effective at implementing and following systems. Overall, a strong team is one that understands, embraces, and adheres to a systematic approach to operations to achieve shared goals.

Simply put, the only way achieve success is to be strategic. One can’t be strategic without the implementation of systems.

But there’s another crucial role that systems play in restaurants, bars, and hotels.

Get Out

This topic is the byproduct of a recent KRG Hospitality client call. While explaining our approach to projects, our team touched on the importance of systems.

However, the topic wasn’t brought up simply to detail what systems the client would need to have in place.

A crucial role systems play in a successful operation is getting an owner away from their four walls. More importantly, allowing them to confidently and comfortably leave their business.

If an owner—be they a sole proprietor or business partner—can’t step away from their restaurant, bar, or hotel without worrying, something is wrong. Either the systems in place are ineffective, they don’t address every element of the business, they aren’t being adhered to, or they don’t exist.

Effective systems allow an owner to take time away from their business without micromanaging staff. Systems should also be in place so the owner or owners don’t feel anxious when they’re not working on the business.

Breathe

Stepping away to pursue a hobby, engage in self care, spend time with family and friends, or just because one wants to take a “lazy day” is necessary.

The strategic implementation of systems makes it possible for someone to take time away from their business. They can take that vacation, pursue that goal that doesn’t relate to their business directly, recharge, etc.

Of course, having systems in place also mean an owner and members of their team can travel. They can comfortably attend industry shows, make a guest appearance at a peer’s bar, or host a pop-up without worrying about the business. Having systems in place also makes it possible to travel to discover new F&B items, learn new techniques, and forge relationships with industry peers.

In other words, systems help owners and operators do something they likely haven’t done in months, if not years: breathe.

Image: Fabian Møller on Unsplash