An Experienced Perspective on Driving Performance

Working closely with hotels across the spectrum, from boutique properties to major resorts, we at Augos consistently see leaders grappling with the challenge of managing substantial utility costs. Energy and water often represent major operational expenses, yet controlling them effectively remains a persistent hurdle.

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Our experience highlights a common structural issue that frequently limits success: placing the full weight of utility cost accountability solely onto the engineering department. While seemingly logical, this traditional model often falls short because it disconnects responsibility from direct control over consumption.

The Accountability Gap We Observe

From our work within numerous properties, we observe a frequent disconnect. Engineering teams, despite their technical skill, typically don't dictate guest room energy use, kitchen operating hours, event space climate control, or spa schedules. These crucial consumption drivers fall under the remit of Rooms Division, F&B, Conferencing & Events, and Spa managers, respectively. Holding engineering accountable for costs generated by activities managed elsewhere is, in our experience, not only ineffective but often leads to frustration and missed opportunities for savings.

Making the Case for Departmental Ownership: Lessons from Practice

Effective cost management aligns accountability with control. Drawing parallels with standard hotel operating procedures, consider how meticulously F&B managers track and manage food cost percentages – a practice we know delivers results because they control purchasing, preparation, and waste. We believe applying this same principle of departmental ownership to utilities is not just logical, it's essential for meaningful progress.

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The F&B Manager should have visibility and responsibility for their kitchen's energy and water footprint; the Rooms Director for consumption across guest floors; the Spa Manager for their facility's usage. However, a barrier we regularly encounter in conversations with management teams is a simple lack of awareness – many department heads have little to no visibility of the utility costs directly linked to their operations. This knowledge gap is a critical starting point.

Empowering Managers: The Critical Role of Visibility

This vital shift towards departmental accountability hinges on one critical factor that Augos helps provide: clear, granular visibility. You cannot expect managers to control costs they cannot see. Our platform is designed specifically to bridge this gap:

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• Departmental Clarity: We enable precise sub-metering and intelligent data allocation, transforming opaque, property-wide utility bills into clear consumption figures attributable to specific departments, floors, or even major systems.
• Actionable Data: We translate complex energy data into intuitive dashboards and reports tailored for busy department heads. This makes the cost impact of their team's daily operational decisions tangible and understandable.
• Meaningful KPIs: By integrating consumption data with operational metrics (covers, room nights, event hours), we help establish relevant performance indicators (e.g. kWh per cover), driving informed decision-making within each department.

Evolving the Engineer's Role: Strategic Support, Not Sole Responsibility

When department heads are empowered with data and accountability, the engineering team’s role naturally evolves in a positive direction – something we actively facilitate. No longer burdened with responsibility for costs outside their direct control, engineers become invaluable internal consultants and technical specialists.

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• Expert Analysis: Using the Augos platform, they analyse trends identified by our system, pinpoint technical inefficiencies (like poor Power Factor or equipment degradation flagged by Smart Triggers), and provide expert insights to their colleagues.
• Collaborative Solutions: Armed with specific data, engineers can work alongside department managers to recommend and implement effective load reduction strategies tailored to each area’s unique operational needs.
• Proactive Optimisation: Our Smart Triggers continue to alert engineering to potential faults or inefficiencies, enabling proactive maintenance that ensures the building’s technical infrastructure runs optimally, supporting everyone’s efficiency goals.

The Proven Potential: Significant Savings Through Shared Responsibility

Our experience across diverse properties confirms that fostering this culture of shared responsibility and data-driven awareness unlocks substantial savings. While technical optimisations identified by our platform yield results, empowering accountable managers to drive behavioural change within their teams often leads to reductions in departmental consumption by 15-20%, sometimes even more. It’s a powerful combination.

Conclusion: Measurement as the Foundation for Accountability

Shifting utility accountability towards departmental ownership is, from our perspective, a fundamental step towards achieving peak operational efficiency in hotels. It aligns responsibility with control, fosters crucial cost awareness across your entire management team, and leverages the expertise within each department. But this essential evolution absolutely requires a foundation of granular, reliable measurement to empower managers and provide undeniable visibility. Augos delivers the technology and insights to build that foundation.

A Note from Tim Stevens, CEO, Augos:

Having spent over 20 years designing and implementing measurement systems, and growing up within a family deeply involved in hospitality – operating large hotels and owning smaller ones – I’ve seen firsthand the constant balancing act between managing operational costs and delivering an exceptional guest experience. The principles outlined in this article reflect not just technical best practice, but also a deep appreciation for the realities faced by hotel operators.

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Empowering departmental managers with the right data doesn't just make financial sense; it fosters a culture of ownership and shared success. At Augos, we're committed to providing the tools and insights needed to navigate this challenge effectively, ensuring that efficiency gains never come at the expense of guest satisfaction. We believe that precise measurement is the key to unlocking this potential.

Contact Us

Ready to explore how granular measurement can enable true accountability and unlock savings in your property? Contact our team by email: info@augos.io or call: +27 87 093 6174.