At the recent Scale Show Barcelona, Rental Scale-Up (RSU) made waves by curating and hosting the Knowledge Stage, an industry-first platform where property managers exclusively shared real-world tactics. The second session on day one, titled “Growth Unlocked: Scaling Outstanding Hospitality Team Culture,” was a highlight, presented by Adam Nedved, Co-founder of Prague Days & Blahobyty.

Staffing has historically been a pain for property managers who are scaling up their operations, and in his session, Adam discussed how he overcame these challenges in his businesses. But why should property managers care about creating a ‘scalable’ team culture? And what does ‘scalable’ even mean in this context?

Understanding ‘Scalable’ Team Culture

In the context of property management, a ‘scalable’ team culture refers to a set of shared ideas, values, and practices that can grow with the company. It means establishing a strong, adaptable culture that remains consistent even as the team expands, new properties are added, and the operational complexity increases. This involves creating a culture that can handle growth without losing its core values or becoming fragmented.

Why It Matters

1. Consistency in Guest Experience: As the number of properties and guests increases, maintaining a consistent and high-quality guest experience becomes challenging. A scalable team culture ensures that every team member, regardless of their location or role, adheres to the same high standards and values, providing a uniform experience across all properties.
2. Employee Engagement and Retention: A strong, scalable culture fosters a sense of belonging and purpose among employees. When team members are aligned with the company’s values and mission, they are more engaged, motivated, and likely to stay with the company longer, reducing turnover rates and the costs associated with hiring and training new staff.
3. Operational Efficiency: As the business grows, operational complexities increase. A scalable culture promotes efficient communication, collaboration, and problem-solving. When team members share the same values and work ethic, they can more effectively tackle challenges and streamline processes, leading to improved productivity.
4. Adaptability to Change: The short-term rental industry is dynamic, with changing market demands, technological advancements, and regulatory environments. A scalable culture equips the team with the flexibility and resilience needed to adapt to these changes without compromising on the quality of service.
5. Building a Strong Brand: A cohesive and scalable culture strengthens the company’s brand identity. It ensures that every interaction with guests, partners, and the community reflects the company’s core values, building trust and reputation in the marketplace.

Prague Days: A Case Study

Prague Days is a short-term rental management company based in Prague, currently managing 192 apartments with a total capacity of 748 guests. The company’s story is a testament to the power of a scalable team culture. Started in 2016 by four founders with one unit, Prague Days was tech-oriented and had no prior hospitality experience. They bootstrapped their way without any investors.

Fast forward to 2024, the company has experienced rapid growth, now boasting 70+ team members and nearly 200 units. Their achievements include being recognized as Airbnb Superhosts and receiving several prestigious awards, such as:

• The Altos: Won for Best Diversity, Equity & Inclusion Initiative; shortlisted for Best Interior Design and Best Hospitality Operator – Europe.
• Shortyz: Shortlisted for Team of the Year.
• SAA: Shortlisted for Best Operator, 2x Best Property, Team of the Year.

When Should You Worry About Scaling Your Team Culture?

As your short-term rental business grows, the need to scale your team culture becomes crucial. Adam Nedved emphasized identifying what he calls the “Growth Ceiling,” characterized by:

• Too Many People: When the team size grows faster than the culture adapts.
• Too Much Work: Overwhelming your existing team without scalable processes.
• Tech Doesn’t Help: When technology fails to bridge gaps in team communication and efficiency.

Scaling and Team Culture

Adam emphasized that team culture is a set of shared ideas, values, and beliefs aligned with a company’s mission. This culture should be so ingrained that any two team members, even if they’ve never met, can seamlessly work together. He outlined seven crucial rules for creating a scalable hospitality team culture:

• Be Authentic: Genuine actions and intentions foster trust and integrity.
• Set the Rules, Be a Role Model: Leaders must exemplify the behaviors they expect from their team.
• Put the Team First: Prioritize team needs and foster a supportive environment.
• Let Go of Control: Empower team members by delegating responsibilities.
• Be Ready to Make Tough Decisions: Address issues head-on to maintain team cohesion.
• Promote Values That Reward Great Customer Service: Celebrate actions that enhance guest experiences.
• Never Stop: Continuously nurture and evolve your team culture.

Steps to Creating a Scalable Hospitality Team Culture

Adam provided a step-by-step guide to creating a scalable team culture:

Define Your Team Culture

Establish core principles that guide your team’s behavior and decision-making. For Prague Days, these principles include putting the team first, caring for all guests, thinking long term, setting realistic expectations, and seeking feedback.

Without clear cultural principles, team members might make decisions that are misaligned with the company’s goals, leading to inconsistent service and potentially harming the brand’s reputation. By defining and communicating these principles, everyone understands the expectations and works towards common goals.

Make Everyone Aligned With Your Team Principles

Ensure that all team members understand and embrace your core values. This alignment is crucial for cohesive teamwork and consistent guest experiences.

If team members are not aligned with the company’s core values, some may prioritize personal goals over team success, leading to conflict and reduced productivity. By regularly communicating and reinforcing these values, everyone remains on the same page, fostering unity and collaboration.

Focus on Recruitment

Hire individuals who resonate with your team’s culture and values. This ensures that new hires will naturally fit in and contribute positively to the team dynamic.

Hiring a highly skilled individual who does not align with the company’s values can disrupt team harmony and negatively impact morale. Conversely, hiring someone who fits well with the team culture, even if they have less experience, can lead to a more cohesive and motivated team.

Support Continuous Learning

Provide opportunities for professional development and growth. This keeps team members engaged, improves their skills, and prepares them for future challenges.

Without continuous learning opportunities, team members may feel stagnant and unmotivated, leading to higher turnover rates. Offering workshops, training sessions, and career advancement programs can enhance job satisfaction and loyalty.

Create Opportunities to Strengthen Your Culture

Regular team-building activities and open communication channels help reinforce your cultural values. These activities build trust, improve communication, and enhance team spirit.

A lack of team-building initiatives can result in a fragmented team where members feel isolated and disconnected. Organizing regular events such as team outings, workshops, and informal gatherings helps to build strong interpersonal relationships and a sense of community.

More Inspiration

For those looking to delve deeper into creating an outstanding team culture, Adam recommended several resources:

1. Laszlo Bock: Work Rules: Insights from Google’s former SVP of People Operations.
2. Kim Scott: Radical Candor: A guide to caring personally while challenging directly.
3. Will Guidara: Unreasonable Hospitality: Lessons from the hospitality industry on exceeding guest expectations.

Conclusion

The session “Growth Unlocked: Scaling Outstanding Hospitality Team Culture” provided invaluable insights into how property managers can sustainably grow their businesses while maintaining a cohesive team culture. By following these principles and steps, managers can ensure their teams remain aligned and motivated, ultimately enhancing both employee satisfaction and guest experience.