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Hitting the Jackpot: Executive Outsourcing for the Casino Industry
The current economic downturn has got the casino chains looking for ways to optimize their profitability, as I recently found in my consulting work for one such company. But since the casino industry is closely related to the hospitality industry, it only made sense that we could transplant some of the best practices from that world into this relatively closed circle to breathe new life into the company’s supply chain operations.
One of the biggest challenges involved the group purchasing processes for the casino company. I was working directly with the service group — people who literally worked in the bowels of the organizations, performing procurement, facilities management and other vital casino functions from sometimes basement-level offices. This rather insular atmosphere was reflected in their adherence to long-held relationships with trusted vendors and supply-chain partners, people who had been brought into the circle many years ago. It was my job, then, to find ways of introducing new perspectives without alienating these industry veterans.
It’s largely a cultural issue. Each industry, each business, has its own unique culture, expectations and time-honored ways of doing things. If I wear my suit into an initial meeting with a shirt-sleeved group, for instance, I’ll let them know that once I get started I’ll be ditching the jacket so I can be as comfortable as they are. You have to enter into the culture. You have to ask questions so you’ll understand where the resistance to change may lie. And then you have to let the team members in on the solutions so they can take partial ownership of them. Once the culture decides on its own to adopt the necessary changes, a new “tradition” forms — hopefully one that will help ensure profitability and productivity for many years to come.
Sometimes it’s good when the house wins!
