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Chapter 4: Planning and Development Article: Reengineering from the Bottom Up ...Creating a mindset of ‘customers first,’ and giving employees the personal responsibility for making it happen. OVERVIEW: Accor, the first French hotel company to enter the United States, operates seven international-class Sofitel hotels in Chicago, Houston, Los Angeles, Miami, Minneapolis, San Francisco Bay and Washington, D.C. These hotels are part of the world-wide network of 110 deluxe Sofitel hotels catering to business and leisure travellers. In 1993, Sofitel North America management decided to “re-engineer the company,” creating a new emphasis on customer satisfaction, with a redesign of business
processes to achieve dramatic improvements in quality, service, profitability, and employee satisfaction. Realizing that line employee support was critical in achieving these goals, Sofitel North America President John F.
Lehodey, with the assistance of Jean-Marc Bailleux of Transformation, a French-based consulting company, launched a three-year “Booster” program designed to reach employees of all departments at all levels in each hotel. Its
focus was to create co-responsibility, analyze problems, develop options, and modify behaviours, so that employees would be empowered to make decisions that benefit guests. IMPLEMENTATION: Sofitel began by calling for volunteers, reasoning that staff who were eager to make improvements could act as “ambassadors,” and bring the new thought processes and procedures to their peers. Volunteers were divided into small, multi-functional and cross-hierarchical teams ranging from 25-60 people each. A training program was developed to reduce employee resistance to the changes through a team approach to communication, problem-solving, the development of mutual respect, and building a culture of shared power. Trust was a key issue. Encouraging line employees to speak their mind was a great challenge. Line level employees were constantly encouraged with the reminder that they had volunteered for this project, believing that there was an opportunity to make things better for themselves and their peers. In some cases, management had to learn to stop second-guessing employee decisions, and instead applaud positive efforts, motivate further change, and encourage individual responsibility. Through a variety of communication exercises, employees began to change the way they interacted with each other, reaching new levels of both self-awareness and mutual respect. When the team mindset was achieved, the group then began examining hotel operations to achieve the goal of increasing customer satisfaction. Teams were asked to
evaluate which systems and procedures were successful and which areas could be improved. At the same time, employees developed a guest survey to regularly evaluate customers’ satisfaction levels. Combining the data taken from
their own evaluations and the guest surveys, employees used the skills learned in the Booster sessions to successfully negotiate operational changes. With suggestions originating at the employee level, peer resistance within
each department was minimal, and the areas targeted for help began to realize a steady, slow improvement. RESULTS: Over the last three years, Sofitel has watched its customer satisfaction grow, from an average of 82 percent in the first year, to over 90 percent in 1997. Equally as important, employee satisfaction has risen. Turnover, which was at 58 percent in 1993, is now at 39 percent, far below industry average. Staff morale is high, with employees confident that just as there are no limits on what they can do for a customer, there are no limits as to what they can do for themselves. In the last three years, scores of employees have received promotions enabling them to increase their responsibilities and meet their personal career goals. More employees have been promoted during this time than in the previous 10 years combined. With the increased customer and employee satisfaction comes a corresponding increase in the company’s bottom line. Profitability has risen each year, with the
result that for the first time in six years, Sofitel North America has turned its eye toward expansion. The company recently announced that it will build a hotel in New York, scheduled to open in 1999. Employees at the seven
U.S. hotels are already looking at the personal opportunities for advancement presented by this new addition to the Sofitel network. WTTC Human Resource Centre COMMENT: Rome wasn’t built in a day, and Accor North America did not expect overnight improvements of its customer satisfaction level. Management realized that if they
were to change the way customers were treated, front-line employees needed to believe in themselves and in the company’s commitment. Through in-house volunteerism, employees felt they had a stake in the redesign process which
created an atmosphere in which training could be implemented successfully. Chapter 4 Suggested Web Sites: 1. Business Development Bank of Canada The Business Development Bank of Canada (BDC) is Canada's small business bank. BDC plays a leadership role in delivering timely and relevant financial and management services, with a particular focus on the emerging and exporting sectors of the economy. The BDC's services are available across Canada in both English and French through a network of more than 80 branches, and its head office in Montreal. Check out this web site to access the various services available to Canadian businesses, entrepreneurs, and students. The site features Student Business Loans; On-line News; Productivity Plus Loan; and Consulting Services. Specifically for tourism, there is also a Tourism Investment Fund to help finance high-end tourism infrastructure outside major urban centres. 2. Industry Canada Industry Canada’s mission is to foster a growing competitive, knowledge-based Canadian economy. The organization creates programs designed to promote tourism
and small business development, and sets rules and services which support the effective operation of the marketplace. This site includes biographies of key figures within Industry Canada, outlines its departmental structure,
defines its mandate, and offers information on acts and regulations. 3. National Research Council of Canada (NRC) The National Research Council of Canada (NRC) is Canada's premier science and technology research organization. The Council is a leader in scientific and
technical research, the diffusion of technology and the dissemination of scientific and technical information. Working in partnership with innovative companies, universities and research organizations worldwide, NRC enhances
Canada's social and economic well-being and creates new opportunities for Canadians. Through knowledge,
research, and innovation, NRC and its partners are expanding the frontiers of science and technology. View the NRC web site to discover how working with NRC can help shape the future. 4. Western Economic Diversification (WD) Since its establishment in 1987, Western Economic Diversification Canada's (WD) mandate has been to promote the development and diversification of the economy
of Western Canada and to advance the interests of the West in national economic policy. Instead of providing direct financial assistance to individual companies, WD is involved in several new innovative partnerships with both
the public and private sectors to address the information and financing needs of small and medium-size businesses in Western Canada. Working in cooperation with industry associations, financial institutions, and the four
western provinces, WD is working to address the needs of small business and business services. Resources are strategically targeted to industries having the greatest potential for growth and that support the federal
government's Jobs and Growth Strategy. Visit the WD Small Business Centre on-line through their web site to access their network of business professionals. They are there to help you with business planning and development,
accessing capital, export or trade development, selling to government markets, and provide you with information and links to government programs and services. 5. New Brunswick Economic Development, Tourism and Culture Visit the Government of New Brunswick’s web site to get a sense of what goes on behind the scenes of planning, developing, and sustaining a tourist destination.
New Brunswick’s department of Economic Development, Tourism and Culture is responsible for sustaining the province’s tourism sectors continued positive performance. It’s mission is to: (1) Help create jobs for New Brunswickers;
(2) Serve the customers' needs first; and (3) Do things well or not at all. The branches of this ministry (Tourism Marketing Branch, Product Development Branch, and Outdoor Network Properties Branch) work
together and with other provincial and federal governments as well as industry to strategize, plan, provide for the development of infrastructure and programs, as well as market the province. The official site of Tourism New
Brunswick is: http://www.tourismnbcanada.com/web/english/main.asp 6. Economic Development Edmonton To facilitate the opportunities of a province’s tourism and business sectors, many Canadian cities have an economic development office. Edmonton, Alberta has
Economic Development Edmonton (EDE) which was created in 1993 to facilitate and promote a strong, diversified economy and tourism industry in the Edmonton Alberta capital region. EDE is a wholly-owned subsidiary of the City of
Edmonton and reports to a 15 member, volunteer board, that includes the Mayor, EDE's president and CEO, and representatives from various sectors of the community. By viewing EDE’s web site you will learn how this city is
promoting economic development, its budget, staffing requirements, strategic goals, and business plan for 2001. Useful web links include: Edmonton Economic Indicators; Reference Publications; News Releases; Audio Visual Store; Relevant Links in the province; and Contacts.
7. British Columbia Land Use Coordination Office (LUCO) The Land Use Coordination Office (LUCO) was created in January 1994 to define a corporate vision for land use planning in British Columbia and to oversee,
coordinate, evaluate and report to Cabinet on ministries' work to deliver the provincial land-use strategy. LUCO's mandate is to improve corporate direction and coordination of all inter-ministry strategic land-use planning
initiatives. This site provides an example of how government’s part in tourism planning and development. The LUCO site links to regional land use plans, coastal and marine initiatives, policy, and protected areas strategy. The
site also explains the BC section of the Trans Canada Trail, as it winds its way through every province and territory linking thousands of communities along its route. 8. Sustainable Development and Tourism Planning Resources Two essential publications for the planning and the development of tourism are available through the World Tourism Organization. Visit their Publications link and under the category of Sustainable Development (this category does not link directly to the resources it contains, but it is located after Education and Training) one can locate these two planning resources: National and Regional Tourism Planning: Methodologies and Case Studies Guide for Local Authorities on Developing Sustainable Tourism Guide for Local Authorities - Supplementary Volumes 9. Nordic Economic Development In 1995, the Government of Newfoundland and Labrador in conjunction with the Government of Canada agreed to a plan to support regional economic developments in
the province of Newfoundland and Labrador. As a result, twenty economic zones were set up throughout the province, each assigned a specific geographic location. Zone six is comprised of 37 coastal communities on the Northern
Peninsula of Newfoundland. The zone has an adequate business directory but this area also has an abundance of natural and human resources that can be further utilized to encourage economic growth. Tourism, recreation, and
crafts is one of the top five areas predicted to encourage economic growth. Visit the Nordic Economic Development web site to learn what Nordic's goals are in terms of tourism, recreation, and crafts and how this industry is
expected to enrich the economy of zone six. Learn about the Viking Trail Tourism Association located in St. Anthony while exploring the site. 10. Greater Niagara Economic Development Marketing Partnership The Greater Niagara Economic Development Marketing Partnership is an example of a community pooling its assets and resources. See if you can find the six key factors to success Nickerson and Kerr mention: sense of place; market match; clustering; transportation; partnerships; and environment when speaking of the attraction Niagara Falls in Chapter 8. Compare what you find to the information on Niagara Falls official web site: http://www.city.niagarafalls.on.ca/visitorinsights/qvcb.html
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