Leisure & hospitality is an industry in which service is central….which puts labor as a critical factor in finding new paths to profitability. In this context, players struggle with labor costs in excess of 40%, labor shortage (in part due to the difficulty of attracting qualified people to work nights/weekends, long hours), high absenteeism, lagging wage rates and significant turnover. Beyond the labor issue, companies grapple with escalating construction and remodeling costs, operational costs and debt that are difficult to reconcile with the need for competitive rates. And as an industry that is dependent on consumer appeal, leisure and hospitality companies are constantly addressing changing demographics, brand proliferation/confusion and seasonality in their business models.
Argo applies a holistic transformation approach by combining and enhancing some of the worlds best operational tools and philosophies such as Lean, Six Sigma, VA/VE and the Theory of Constraints. Argo understands how operations support business strategy.
Our approach helps Leisure & Hospitality clients focus operations for better alignment with strategy achieving sustainable results by:
- Improving overall labor performance while increasing retention.
- Creating and rolling out standardized processes across multiple properties.
- Using tools like VaVe on new properties and remodels to balance capital costs with resulting long term operating expense.
- Enhancing the workforce in problem solving to create a sense of ownership.
- Using training and follow-up techniques to ensure that desired behaviors such as customer service practices become ingrained in organizational culture.
Our global team of consultants has a depth of technical operations expertise and a proven track record of leading and implementing successful transformations. Our people bring a wide range of professional experience from some of the most operationally excellent companies in the world.
We diagnose areas of waste, variability, and inefficiency in the operating system and then redesign, and implement, not just the new production system, but also the management structure that improves the bottom line and ensures accountability and sustainability. By working hand-in-hand with our client’s employees, we ensure the buy-in from the senior leadership team all the way to the front line employee, leaving behind a new culture, mindsets and behaviors.
We look deeply and broadly, not just at operational processes, but also into all functions and dynamics to leverage opportunities for improvement including Marketing & Sales, strategic pricing, supplier influences, inventory, setup reduction, standard work, back office and interface between departments.