With consumers cutting back on personal and business travel, the hospitality industry is now forced to be more innovative in attracting guests -- and new employees. Manitoba-based Canad Inns is also re-examining its people practices, not only because of the economic slowdown, but because it is in a period of rapid growth.

Employing nearly 3,000 people in Winnipeg, Portage La Prairie, Brandon and Grand Forks, Canad Inns is constructing a facility on the Health Sciences Centre campus in 2009, is involved in a number of property development negotiations and is exploring new options in markets like China.

Chief executive officer Taras Sokolyk discusses some of the challenges Canad Inns faces in staffing and operations as it continues to transition from being a family-owned organization into the 14th largest hotel firm in the country.

Q: What are some of the challenges being presented by your company's growth?

A: Our company has moved from being a small family business to employing close to 3,000 people. The challenge now is raising our corporate procedures to a whole new professional level without losing that all-important family atmosphere. In earlier years, we didn't need as many protocols in place because everyone's responsibilities were understood. As we have expanded from six facilities to 10, roles have become bigger but more narrowly defined or responsibilities have been split. So I may be giving someone an opportunity to grow but they may see it as a demotion or a loss in confidence because they are not doing all the things they used to do. So we need to find a way to put business systems in place that will help us function better yet will not compromise our culture.

Q: Canad Inns has been named one of the 50 Best Managed Companies since 1997, while continuing to function with a relatively small leadership group. How do you do it?

A: We have 12 people at our executive table; the eight-person VP group meets every other week and then we meet quarterly with all our general managers. Because our organization is five per cent strategy and 95 per cent operational execution, our general managers really are the captains of this army and our operations people are the front-line soldiers. We need them to be able to execute strategy successfully. Working with a small leadership group makes it easier for me as CEO to directly address specific issues; on the flipside, you have fewer people carrying more workload. Structurally speaking, you must also be mindful not to keep your top-tier group too small or else risk letting the next level of management to spread out too far. That only causes confusion.

Q: Have you needed to shift priorities in the midst of this tough economic climate?

A: We must be conscious of the fact that there will be some losses but we have to be constantly looking for new opportunities in both our leisure and commercial business. There may be folks who decide not to go to Grand Forks for economic reasons. But at the same time, there's a huge population not going to Mexico for the same reasons who may opt for a getaway to Grand Forks instead. Elsewhere, there may be a client on the fence about holding a business conference. But if we knock on their door and say, "We have a special feature on at this price," it may be enough for them to go ahead with their meeting.

When times are good, it's inevitable that a business will make money; when things tighten up, opportunities arise. Marketing becomes more important than ever and it's up to us to be assertive: if a room is empty on Tuesday, we will ask how we can fill it instead of waiting for someone to call on Tuesday.

Q: How do you stay engaged with your employees?

A: We have an open-door policy that allows anybody to come to me or one of our VPs and have a confidential discussion about ideas or concerns in a non-confrontational manner. We've found it to be an effective way to engage with people and it help us better understand their point of view. For example, our head housekeeper in Windsor Park brought up an issue regarding fitted versus flat sheets. Before making my final decision, I had to make sure I did my homework to understand her operational challenges. Although we ultimately agreed to disagree, she and I had a great exchange -- plus it forced me to go out and make a bed!

Q: What are you doing to recruit and retain younger workers?

A: Besides implementing a scholarship program with a post-secondary institution, we also have an internal mentoring system where we look to promote employees from within. It's important that we help them to discover their talents and try to move them up the corporate ladder. Recently, we found a third-year architectural student working as a server in Tavern United. After some discussion and review of her CV, she now reports directly to our vice-president of facilities management doing drafting and planning part time. Identifying talent like that on our staff can be tremendously energizing for us all.

Q: How do you recognize employees for loyalty or exceptional work?

A: Our monthly newsletter is entirely focused on the achievements of our people. It's uplifting to see folks excited about good news because too often we are fixated on things that didn't go right. We've also implemented a recognition program where superiors can award a bronze, silver or gold button to employees for doing great work. Each level earns points that are redeemable for our services, room upgrades, even a weekend in Grand Forks.

Q: Are there any people processes you would like to improve upon this year?

A: We are trying to quantify the things that we do for our people, including the benefits and programs we have in place, and put that into an employee package we can use to recruit. But first we need to conduct an employee survey and identify areas where we are less than competitive. If there are gaps, we need to fill them. Our goal is to tell people we are one of the best places to work and be able to back up that claim.

Q: What is the best way for a customer to influence your business?

A: Customer client cards are very effective in bringing matters to our attention. We have a system whereby our general managers address issues within one business day but if I see comments that haven't been resolved or I just want to speak to the customer myself, I will. I make five phone calls a week directly to customers. Some may argue that it's not the most productive use of my time, but it's important. It helps us gain an interesting perspective and often, good ideas.

Q: Of the business books you have read, which would you recommend to others?

A: The book I go back to most often as a touchstone is Raving Fans by Sheldon Bowles and Ken Blanchard. It is an absolute that you must listen to what the customer is saying, identify the need and deliver in a way that exceeds their expectations.

-- With reporting by Barbara Chabai

John McFerran, PhD, CMC, C. Psych., F. CHRP, is founder and president of People First HR Services Ltd. For more information, visit www.peoplefirsthr.com.