CASE STUDY: EMPRESS HOTEL

Davina Rullian has just taken over as personnel director at the EMPRESS Hotel Group, a major international five star hotel business that has hotels in the UK, Europe and South East Asia, and the UAE. The headquarters are in North London, Middlesex. Davina's task in previous hotels in which she has worked involved setting up systems and standard operating procedures and then producing a quality manual so all employees knew" what to do, how to do it and when to do it". As part of her approach she would update the standard operating procedure on an annual basis. She was also involved in working directly with the Customer Service Training Department to provide coached scripts, encourage teamwork and allocate roles and responsibilities amongst staff. Davina, had personally trained senior hotel managers in leadership and motivation.
The EMPRESS Hotel Group, (EHG) she realised was going to be very different.

The EHG Chairperson/CEO was Andrea Diviner, an evangelical American who has just stepped down. Her Vision it is "to create the most perfect hotel chain in the world". She felt that the standardised operating procedure approach which is currently NOT being used utilised was not appropriate for the customers of an international five star hotel. She wanted customers to have a 'taste' of local culture and food and not a McDonalds type experience.

Unfortunately due to a global economic downturn, dramatic developments in artificial intelligence (which has resulted in a decrease in Executive business travel) the hotel has for the past 2 years been making a loss - in fact the hotel has experienced increases in operating costs and decreases in operating income. The hotel's culture has been incredibly slow to adapt to changes in the macro economic environment. This has led to the shareholders sacking Andrea and bringing in a former CEO of a manufacturing plant. Employees are reported to be very worried about the 'reported' future changes and some have already begun to be absent through illness.

Davina, like most of the hotel's management, had come from other mainstream chains, which were extremely different. Davina's former HRM department's role was to create manuals spelling out exactly what should be one by whom and how. The role of the operations managers was to implement these procedures and if they were not sure of anything they always knew they could find the answer in one of the manuals that covered one wall in their office. Davina's predecessor who had worked in the hotel for the past 5 years and provided the hotel with luxurious furnishings, local produce and surroundings was also sacked.

The new CEO, was very clear on attaining their Vision for the hotel. Their vision was to compete with locally run hotels that offered a high quality service at a reasonable cost. The type of customer the CEO had in mind are tourists who typically stay at the hotels for around 10 days and Executives (typical stay 2 days) that no longer had a vast company budget from which to spend on accommodation. The CEO knows that many organisational changes would have to take place to fulfil their Vision for the hotel. However, they are determined to bring about his Vision and believed that Davina was instrumental in the change process necessary for its fulfilment. All the staff are paid slightly above the industry average and EMPRESS Hotels are seen as THE place to work. However, the hotels are not necessarily seen as THE place to stay by customers. Customer feedback to date has been very poor. This includes very importantly poor and inefficient services and specifically a service that is not timely nor responsive to customer needs, (apparently hindered by inefficient processes and ineffective use of capacity). In summary, the CEO said: "We need to put my Vision into practice - and this is going to need considerable organisational change".

Davina has been tasked with providing the CEO an organisational change

Question

You are a Consultant specialising in Organisational Change. Davina a newly recruited member of the Executive Management Team for the EHG has specifically employed you to research, critically evaluate and make recommendations in a report to her on organisational change as it relates to the hotel. This will include amongst other things; type of change, triggers and drivers of change, how culture impacts organisational change, likely resistance to change and leadership role.

Answer

Introduction

Organizational reform refers to steps taken by a corporation or industry to change a significant aspect of its operations, such as its culture, underlying technology or infrastructure, or internal processes. Organizational change management is the process of leveraging change to achieve a good outcome, and it usually consists of three stages: planning, execution, and follow-up.

Illustration and explanation

For the case of this hotel, it is a  transformational change. They often include changes in mission and strategy, company or team structure, people and organizational efficiency, or business processes all at the same time. Because of their size, these changes will take a long time and a lot of effort to implement. Transformational changes are often pursued in response to external factors, such as the advent of a disruptive new competitor or problems affecting a company's supply chain, though this is not always the case.

Adoption of customer relationship management software (CRM), which all departments are supposed to understand and use, is an example of a transformational shift.

Change's catalysts and motors;

Customer requirements.

What are the real needs of the customers? If your goods or services, for example, do not fulfill their needs, it is time to adapt your product to meet those needs.

Pressure from competitors.

It's time to adapt if rivals are moving ahead, producing better goods and generating better value propositions.

Executive Management.

Change may either be spearheaded or stifled by executive leadership. When the time comes for transition, it's important to get executive support as soon as possible.

There is a budget.

One of the most important considerations for any business venture is the budget. It has the potential to affect change projects in general, as well as cultural change initiatives.

Technology and tools.

Change can be facilitated by technology, or it can be the focal point of change. However, when workers are hesitant or budgets are small, it may become a roadblock to organizational progress.

Business Processes That Are Now In Place.

People can get stuck in old processes for far too long due to inertia and sticking to the familiar. As a result, a company's adaptability and resilience suffer.

It's all about the culture.

In any change initiative, culture is also crucial... People may either enthusiastically embrace change, be apathetic to change, or actively oppose it.

How Does Culture Affect Change in an Organization?

Any of the above change-influencing factors are rather black-and-white. You either have the financial means to make changes or you don't. Customers either require or do not require a new feature. However, as more people get involved, the situation gets more complicated.

What's in it for them - that is, how can a move affect them - determines employee support.
How much additional effort is required?

What effect the final outcome would have on their careers, wages, long-term career opportunities, and so on
Their general attitudes toward new ideas, new things, and change
This is where culture comes in, since it can be thought of as the "primary pillar" that affects all of the other factors.

Technology is wreaking havoc on the world. 

Disruptive developments are being fueled by new technological advances, such as the internet and cell phones. Both of these were unthinkable only a few years ago, but today, companies who don't use both are at a significant competitive disadvantage.

Companies who can disrupt and reinvent themselves are more likely to thrive and dominate. Many of today's biggest businesses are in the technology sector. Google, Apple, Amazon, Microsoft, and Facebook have all eclipsed the previous market leaders in only a few years. This tectonic change exemplifies the enormous influence of technology and innovation.

Speed and adaptability are essential in such a fast-paced environment. According to DocuSign chairman Keith Krach, speed is the "ultimate tool." Organizations that are the best at innovating, manufacturing, and launching products into the market would be able to outperform their outdated rivals.

Redesigning The Organization's Culture to Allow for Constant Change;

Given the above background, change managers would be wise to instill qualities such as:

The ability to think outside the box.

Creating a culture of creativity necessitates enlisting the help of all. It also entails boosting creativity with the appropriate processes, frameworks, and resources.

Adaptability.

Agile change management, agile management, and other agile disciplines have sprung up as a result of agile software growth. Incorporate these processes into the workplace, and the atmosphere will evolve to reflect those changes over time.

Adaptability to Change.

In certain cases, caution is advised. Risk aversion, on the other hand, can easily keep you from making money-making investments that can help your business remain competitive and profitable.

The ability to move quickly.

Employees should be acclimated to speed so that they are more alert and prepared for last-minute adjustments. A community that is ready to act, respond, and deliver can lead to a company that can deliver goods and services faster.

Digital literacy is the ability to use technology effectively.

In today's world, digital literacy is a must. Businesses should foster a "digital culture" that promotes digital proficiency. And, as with the other traits listed here, the best way to nurture this one is to put in place processes that encourage it.

Learning is something that should be done all of your life.

Lifelong learning is increasingly being recognized as a requirement for the workforce of the future. Employee training solutions that are integrated into a company's operations can result in a workforce that is more active, relevant, committed, and open to change.

It's worth noting that these traits aren't always incompatible with other aspects of corporate culture. A business can still be social, comfortable, and extra-competitive, for example. Shift, on the other hand, is constant in today's economy. The characteristics mentioned above will help to create corporate cultures that embrace, encourage, and fuel change.

Resistance to change in an organization can be caused by a variety of factors, including;

Employees are concerned about losing their jobs.

Nothing shouts "You're about to be shot" louder than corporate executives who plan to make changes. The word "change" may have the same connotation for workers as "downsizing," which is why resistance to change is such a common reaction in the workplace. Many times, a company's changes are followed by the removal of positions that have become obsolete or are no longer necessary for the company's success.

Employees aren't grasping their new responsibilities.

When a company undergoes true change, work positions and titles often alter, causing roles and duties to shift as well. When workers don't see how they fit into the new way of doing things, they become resistant. If your company wishes to change its focus from sales to marketing, for example, you can need to retrain some of your salespeople to become marketing representatives, which can be stressful for those workers.

Employees who understand how they fit into the larger picture are a big part of what makes a company successful. Change shakes employees' trust and stability, provoking resistance from those who are unsure how they can contribute to the organization in the future.

Communication breakdown.

Good communication is one of the characteristics of a well-oiled system, which is particularly critical in a top-down organization with several levels of management above the rank-and-file employees. When you decide to make significant changes, it's important to communicate why you're making the changes and how you intend to execute them. If the workers don't understand why you're asking them to alter protocols that they're used to, they're more likely to resist.

It is your duty to arrange meetings to discuss the changes you're making and to provide a platform for input, concerns, and ideas about how to make the changes go as smoothly as possible.

Leadership in organisational change;

A leader is a change agent that can efficiently handle organizational processes. Organizations have been forced to continually analyze and reevaluate recent technological developments and consumer demands in order to consider, embrace, and incorporate improvements in their business model as a result of changing trends. Change is a must for survival in today's world. Organizations are better understanding the value of transition these days, and they are preparing themselves to follow not just existing but also future trends in order to achieve long-term success.

According to various studies, 70 percent of organizational reform fails to achieve its goals due to weak leadership style, despite the fact that leaders play a central role in the organization. As a result, the change process necessitates efficient and highly qualified leadership capable of recognizing the most desirable function and addressing problems in the most suitable manner. The results of this research paper's review of the literature and the results of real-life case studies indicate that a leader with the competencies of "visionary," "democratic," and "transformational," as well as a "Innovative Approach," will ensure more successful organizational change with success.

As a result, this study proposed a model that expresses the relationship between effective organizational change and the position of leadership, based on leadership competencies such as organizational change, sustainable growth, and innovation.

Recommendations to organisational change

• Clearly describe the transition and link it to the company's objectives.

Although it will seem obvious, many organizations overlook this crucial first move. It's one thing to express the needed change; it's quite another to execute a critical analysis against organizational objectives and performance targets to ensure that the change will lead the company in the right strategic, financial, and ethical direction. This move will also help you assess the importance of the shift, which will help you measure the time and resources you'll need to make it happen.

• Determine the effects and those who are impacted.

You can then assess the impacts of the transition at different organizational levels until you know precisely what you want to accomplish and why. Examine the impact on each business unit, as well as how it spreads through the enterprise to the employee. This data will begin to form a blueprint for where the most preparation and help is needed to minimize the effects.

• Have a plan for contact.

Since all employees should be involved in the change process, the first two steps would have identified which employees must be informed of the change. Determine the most efficient method of communication for bringing the community or person on board. A timetable for how the transition will be communicated incrementally, main messages, and the communication networks and mediums you intend to use should all be included in the communication strategy.

• Efficient training should be given.

With the transition message out in the open, it's critical that your employees understand they'll undergo structured or informal training to give them the skills and information they'll need to work effectively when the change is implemented. A suite of micro-learning online modules, or a hybrid learning approach combining face-to-face training sessions or on-the-job coaching and mentoring, may be used for training.

• Establish a support system.

It's critical to have a support system to help workers adapt emotionally and practically to the transition, as well as develop the attitudes and professional skills required to achieve desired business outcomes. Since certain changes can result in layoffs or reorganizations, you may consider offering assistance, such as therapy, to help people deal with the situation. A mentorship program or an open-door policy for management to raise questions when they occur may be set up to help workers respond to changes in how a task is performed.

• The change phase should be measured.

A framework should be in place throughout the change management process to quantify the market effect of the changes and to ensure that opportunities for continuous reinforcement to create proficiencies remain. You should also assess the success of the change management strategy and keep track of any lessons learned.

Conclusion

Is your company undergoing a phase of organizational change? PulseLearning will help you manage the change process so that you can achieve your business goals while minimizing the negative consequences. PulseLearning is a multi-award-winning global learning company with expertise in change management consulting and the development of engaging and creative eLearning and blended learning solutions.

References

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3. Blumberg, M., Cater-Steel, A., Rajaeian, M. M., & Soar, J. (2019). Effective organisational change to achieve successful ITIL implementation. Journal of enterprise information management.. 

4. Higgins, C., Stubbs, W., Tweedie, D., & McCallum, G. (2019). Journey or toolbox? Integrated reporting and processes of organisational change. Accounting, Auditing & Accountability Journal.