CNN's online business site, "Business 2.0", has an interesting profile of Gamil Aziz, president of MGM Grand. He is in large part responsible for leading the transformation of MGM Grand from a "dormitory" to one of the hottest, most profitable properties on the Strip.
He talks about his philosophy of working backward:
"Aziz's secret is a counterintuitive management practice - nicknamed "working backward" - that he invented on his arrival at the Grand. The strategy calculates the maximum revenue that each business or space could generate in a perfect world - that is, if every customer spent the most the market could bear and if traffic reached its physical limits.
Aziz then subtracts actual sales from that hypothetical number and calls the difference a loss, even if the venue is making money. His formula for closing the gap usually starts with a jackhammer."
In my opinion, MGM Grand is now a property which appeals to all market segments, from the value conscious to the high end customers of Skylofts and The Mansion. However, I would like to see MGM Grand update the "Grand Tower" rooms in terms of syle and furnishings.
To read the article:
Gamil Aziz Has Reinvented MGM Grand