Success Story: Managing the Budgetary Control and Monitoring of a Hotel Reform
Objective
The main objective was to keep exhaustive financial and budgetary control, with daily monitoring. It was a 6 million USD overall project, divided into several projects in separate locations. The work had to be done within a maximum of three months.
This made it possible to meet the planned cost figure and to have reliable information to avoid unnecessary deviations from the initial plan.
Context of the Actions
The management was conducted in a highly demanding environment, where the person in charge simultaneously held the position of Eco-Fin Corporate Director during normal working hours.
In addition, different projects coincided temporarily, some of them interdependent, which increased the complexity of coordination.
The urgency to complete all the work was critical due to the imminent start of the Christmas season. This circumstance demanded maximum efficiency and precision in management.
Actions Taken
The following actions were implemented to achieve the objectives set:
– Design and adaptation of a detailed follow-up chart by concepts and items for each project. Thus, allowing detailed control of the status, costs, and progress.
– Creation of an efficient circuit for the flow of relevant information and documentation. Such as invoices, purchase orders and work certifications. This circuit ensured traceability and constant updating of data.
– Maintenance and daily updating of information on the development of each project and the assigned financing. Facilitating real-time decision making and reaction to any unforeseen event.
These practices are aligned with the best budgetary management methodologies in the hotel industry. They consider the budget as a key instrument for both planning and control. Allowing coordination between departments and delegation of responsibilities.
An approach aligned with the idea of involving company departments in cost restraint.
Challenges Overcome
The project faced several significant challenges:
– Impossibility of constant physical presence at the construction sites, which was solved by implementing daily monitoring and reporting systems. As well as establishing periodical control meetings.
– Complexity in the management and handling of supporting documents, which was solved by standardizing formats and digitalizing processes.
– Delays and changes in the reception of materials and work items, as well as in the arrival of funds provided by shareholders. This required continuous adaptation of the work plan and fluid communication with all parties involved.
Limitations Respected
Throughout the entire process, the eco-fin management continued to function properly. All this, despite having a reduced and multifunctional team in the investment area. In addition, the three-month deadline for project completion was strictly adhered to. Consequently, it generated added pressure on management and decision making.
Results obtained
The application of rigorous budget control and daily monitoring made it possible to:
– Have up-to-date information on the status of each project, broken down by concepts and items. It facilitated the early identification of deviations and the adoption of corrective measures.
– Making immediate decisions regarding modifications and adaptations in the execution of the works. Ensuring the necessary flexibility to meet objectives.
– Meeting the budgets assigned to the whole work, achieving even a small saving with respect to the initial forecast. Thanks to the optimization of resources and the anticipation of foreseeable problems.
Conclusions
This success story demonstrates the relevance of effectively managing the budgetary control and monitoring of a hotel reform. Together with efficient communication, these are determining factors for the success of complex and time-sensitive hotel development projects. Detailed planning, process standardization and the ability to adapt to unforeseen events are key. They make it possible not only to meet cost and schedule targets, but also to improve the profitability of the project. Therefore, as we have already mentioned, it is always essential planning to optimize company performance.
