Reflagging and Managing a New Hotel: Marriott International -
This comprehensive case study is designed to illustrate the implementation of the entire HPT Model. First, it highlights the complexity of performance issues and identifies numerous causes. Then, it reviews the suite of interventions that were identified and implemented. Finally, this case study also makes use of selected job aids from earlier sections of this book to demonstrate application of the HPT Model.
Scenario
Marriott International, a leader in the hospitality field, entered a partnership agreement that includes a management contract with General Motors (GM) to operate the hotel located in their new global headquarters. GM purchased the Renaissance Center in downtown Detroit, which includes the hotel and four surrounding office towers . In addition, GM bought the Millender Center across the street, which was previously operated by the Doubletree Hotel Company. Marriott now operates the Renaissance Center hotel as a Marriott full-service brand with the intent of making it a five-star hotel. The Millender Center hotel is a Courtyard brand. Marriott is one-third partner with GM in ownership and development of the hotel. Marriott, hired by the two- thirds partner to manage the hotel, reports to GM at the monthly owners meeting about profit and loss, guest statistical surveys (GSS), and associate opinion surveys (AOS).
Background
Westin Hotels, Resorts, and Suites previously operated the Renaissance Center hotel for almost 22 years. The center, sold once during this time, had been on the market again for about 8 “10 years before its purchase by GM. Detroit was not a popular destination for travelers, and hotel space was too limited to attract conventions.
The Renaissance Center and the hotel had been losing money for a number of years. The owners had made minimal investments in the upkeep on the building to create the illusion of profitability on paper to attract a buyer. As a result, both equipment and technology were out of date and needed to be upgraded for the most efficient day-today operations.
Performance Analysis
Marriott International - Detroit conducted a performance analysis to understand the performance issues, using a process similar to the "What's Happening" Job Aid (see Job Aid 3-2).
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| At this level of analysis... | Some of the issues are... |
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What is happening when the organization interacts with its external stakeholders and competition?
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What is happening inside the organization to support optimal performance?
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What is happening on the job?
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What is happening with the workers?
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| (Based on Langdon (1995), Rothwell (1996b), Rummler and Broche (1995), and Grant and Moseley (1999). | |
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1. Organizational Analysis Issues
What is happening when the organization interacts with the workforce, the competition, and the community?
Marriott International Brands . Marriott is a company experiencing a lot of growth. It has systematically developed a variety of brands to capture as much of the hospitality market as possible including senior living communities and services, vacation clubs, and wholesale food distribution. The Courtyard by Marriott brand was designed according to opinions from business travelers. Marriott is extremely focused on the loyalty of their customers and develops strategies to attract as much of the hospitality market as possible from the luxury, moderately priced, business, extended stay, and economy sectors. It has developed or purchased brands to address the needs of all guests and is expanding rapidly into the international market.
Community Orientation . It is important to Marriott that it is recognized as a company that cares about the community. In February 1999, Marriott called its commitment the "Spirit to Serve Our Communities," with a focus on companywide service and volunteer efforts. Through Marriott Pride and Children's Miracle Network, customers donate reward points to "Help Hospitals Help Kids" to pay for lodging when a child is receiving care. Marriott consistently receives recognition for its leadership in the area of diversity management and was awarded "Highest Rated Hotel Company" for 1999 in the NAACP's third annual report on the lodging industry. Marriott has also been recognized as one of the "100 Best Companies for Working Mothers," "Top 20 Family Friendly Companies," and "Top 25 Companies for Women."
Workforce . Approximately 700 unionized associates and 80 salaried associates work at the Detroit Marriott Renaissance Center. Many associates have been at the hotel for 10 “20 years. Turnover is lower than is typical in the hospitality industry. From the time the center was purchased by GM until the management company was chosen , associates waited 18 months for that decision to be made. Due to changes resulting from creating more efficient operations and the use of new technology, people have recently been assigned new duties and, as a result, are uncertain about their future. But the workforce is committed to the center and to Detroit.
2. Work Environment Issues
What is happening inside the organization while it is striving for optimal performance?
Opening . When Marriott took over management of the hotel, there was a preopening budget to purchase new uniforms , new equipment, and new technology. Town hall meetings and a family-oriented holiday party were held to introduce associates to their new company.
Renovations . Current conditions of the hotel do not attract the typical Marriott guest. Patrons are finding the hotel is not yet up to the usual Marriott standards. The situation was aggravated because the decision to choose the management company for the hotel took longer than expected. Many groups coming to the hotel expected renovations to have been completed. This was a particular problem for groups (conventions, etc.), since these events usually book 2-4 years in advance.
Budget . The partners , GM and Marriott, expect to see a profit. The transitional issues were extremely challenging and the original proformas were not being met. Initially, there was a large outlay of dollars to invest in many visible and tangible items (uniforms, computers, and kitchen renovations). What appeared to be an unlimited ability to spend during opening phase could not be continued . To associates it appears that, after the initial investment, management is settling back into some of the same challenges that were being faced under the old Westin management. However, less tangible investments continue, such as training.
Job Security . Restructuring and closures due to renovations resulted in reassignments. For example, Marriott's reservation system is centralized; therefore, within a month, management was able to downsize the reservations department. Positions were found for all associates except one who could only work a special schedule (which was not available). Management also closed one restaurant and the health club, discontinued room service's midnight shift, and downsized engineering.
Physical Appearance . Frustration with renovations was acute for guests and associates. Jack hammering often prompted complaints at the Front Desk.
Employee Development . Training is an ongoing priority. Jobs were changing as new technology was introduced. Job certification is important to Marriott ”not just for hourly associates but for managers as well. Marriott requires a minimum of 40 hours of training a year for all associates (including managers).
The Detroit market is able to afford a regional training center. Marriott supports hourly associates in the advancement of their careers. A Management Candidacy Review Board meets to interview applicants and authorizes appropriate training to prepare them for a management position. Marriott introduced its "Personal Passport to Learning" program as a way for managers to map their own career path and to take initiative by choosing the applicable courses to advance themselves .
Labor Pool . There is now a lot of competition in the downtown market for labor. Since the temporary MGM Grand Casino opened, some associates have left or are working two jobs. The labor pool will have more employment options with three permanent casinos opening along with the riverfront, where development is enticing other smaller hotels. The unemployment rate is very low in Detroit.
3. Worker Issues
What is happening with the workers?
Workplace Climate . The Renaissance Center hotel has three unions, and the Courtyard across the street has one. In Marriott hotels where there is no union, peer review is used in place of the typical grievance procedure. There is a corporate-sponsored associate hotline that can be utilized to report issues or discuss problems that occur at the property level. An Associate Opinion Survey is conducted annually by a third party to identify problems pertaining to hotel climate. Each brand is rated, and the Detroit Marriott is compared to all other full-service hotels.
Workplace Benefits . Profit-sharing, tuition reimbursement, and 401k plans are automatically available at most Marriott hotels. Most of these benefits are not presently available in the Detroit hotel and will be negotiable items when the labor contracts expire.
Guest Satisfaction . Due to the condition of the facility upon takeover and the ongoing construction, the Marriott Renaissance Center's scores in Guest Satisfaction Survey (GSS) were lowest when it was compared to all other full-service Marriott brands.
Labor Pool . The Marriott hotels in the suburbs lack sufficient applicants for jobs because associates do not have transportation to properties. The downtown Detroit sites have lots of applicants because of the metropolitan bus system, but because unemployment is so low, employers are left with a less skilled labor pool from which to hire.
Worker Morale . After the excitement of a change in management and the purchases made with the opening budget, the reality of day-to-day problems returned and morale dropped to its previous level. Many associates have identified solutions to the problems, and systems are being developed that, once implemented, will facilitate their participation.
Job Security . Fear of job loss is a concern. The focus on certification with the introduction of new technology has increased this concern. Some associates have expressed interest in attaining new skills but are afraid of what will happen if they do not meet criteria. Many associates have been at the Renaissance Center hotel for 10 “20 years. They are an older work force and are afraid of being discarded if they are unable to learn the new technology.
Worker's Compensation . There is a large number of worker's compensation cases. Most of these are room attendants in housekeeping. Because the occupancy of the hotel fluctuates drastically, the schedule for room attendants can be demanding. For several weeks they may work only two to three days; then, if a convention checks in, they may work many days straight with little time off.
Management/Labor . Negotiated in the last contract, a Joint Steering Committee was created and has been meeting for the past three years. This is a management/labor committee that discusses issues that need the support of the union and invites dialogue and resolution in a proactive and constructive manner. An example: Marriott is piloting a new service initiative called "At Your Service." Since new skills are now required, management is developing a certification process to ensure the necessary levels of competency. The need to certify was first proposed in the Joint Steering Committee to discuss any concerns the union membership might have about the process and to receive feedback at the appropriate steps.
There is also an open -door policy in place that encourages all employees to meet with the general manager if they feel their concerns are not being addressed at the department level.
Labor Contracts . All contracts are usually negotiated to last for three years and to expire in different years. The largest membership is in Local 24, for hotel restaurant employees, and its contract expires this year. There are two other union contracts that offer more generous benefits than the Local 24 contract.
Cause Analysis
Marriott International identified employee- related causes of performance problems using questions illustrated in Job Aid 4-2.
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This job aid is an adaptation of Gilbert's PROBE Model. Answers to the following questions help to establish the drivers or causes of performance gaps. Some of the answers may be found in documentation for the performance gap analysis. Other answers may require additional input from actual performer(s).
| Category | Questions | Yes | No |
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| Knowledge and Training |
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| Capacity |
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| Motives |
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| Dean, P.J. and Ripley, D.E. (Eds.) , (1997). Performance Improvement Pathfinders: Models for Organizational Learning Systems, pp. 57 “58. Washington, D.C.: The International Society for Performance Improvement. Used with permission. | |||
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Knowledge and Training
Marriott's relationship with associates is very important. The corporate philosophy, the associate handbook, and the open-door policy all focus on the practice that "if you take care of associates, they will take care of the guest." Because of the transition, associates had not built up a trust that Marriott was truly interested in helping associates succeed. Although Marriott provided training (and was planning more), a significant number of associates felt this was an attempt to weed them out. The Joint Steering Committee, composed of shop stewards and managers, meets monthly to discuss issues that might conflict with a strict interpretation of the contract. Marriott's intent, to provide associates with valuable job knowledge through certification, was discussed in great length. Pretests and posttests were introduced to the committee as a way to ensure that learning takes place. It was stated that, in reality, there may be one or two who might not be capable of performing the new tasks, but that they would be placed in other jobs suiting their qualifications. By the time this discussion was communicated to other associates, some associates believed that there were very few employees who would measure up to the new criteria and that the rest would lose their jobs.
Capacity
An all-associate meeting was planned as a special celebration , including raffles and games , to communicate the sales initiative for the next year and to thank everyone for their efforts during a difficult time. Some people felt that the purpose of the meeting was to give out layoff notices. Holding onto the old rather than embracing the new methods fostered a certain amount of negativity among the employees. Because of the history at the hotel, a "been there, done that" attitude prevailed.
Motives
In training classes and in meetings such as those held by the Joint Steering Committee, more frequent and informative communication and respectful treatment by managers were two issues that came up consistently. A needs assessment was conducted approximately three months after the change in management, and these issues were still identified as major concerns. Data from the assessment attributed this to the management before Marriott. However, it also raised the possibility that the initial hope and enthusiasm of the change in management had not been sufficiently maintained in the day-to-day challenges.
Intervention Selection and Design
To make this property a five-star hotel in General Motors Global Headquarters, Marriott realized that interventions were necessary. They conducted a needs assessment after three months of operation and identified key employee related drivers that could affect change to accomplish the transformation of the hotel. Using a process similar to Job Aid 5-1, the following viable interventions were identified: organizational communication, learning organization, job enlargement (crosstraining), and culture (trust and motivation).
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Based on the cause analysis and performance gap analysis, select interventions that would improve the situation. Place a check next to each intervention to be considered . Prioritize the possibilities and circle three interventions to begin the performance improvement effort.
| Performance Support
Job Analysis/Work Design
Personal Development
| Human Resource Development
Organizational Communication
Organizational Design and Development
Financial Systems
Other Interventions |
| Developed by Darlene Van Tiem, James Moseley, and Joan Dessinger . | |
| Sources: Gayeski, Hutchimon and Stein, Stolovitch and Keeps, Hale, and Whiteside and Langdon. | |
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1. Organizational Communication
An all-associate meeting was held to address communication. The theme was "From the Old to the New." Associates were invited to a room set up sparsely with trays of cookies and water served in paper cups. Jack hammering could be heard throughout. After 10 minutes, associates were invited to a quieter room where "Simply the Best" music played in the background as they entered the doors. They found an elegant room where tables had been set up with candles , centerpieces, wine glasses , and cloth napkins in a fancy fold. Managers poured a non-alcoholic sparkling beverage for a toast and then served a special dessert to each associate. A PowerPoint_ presentation depicted renderings of the new lobby and restaurant.
Human Resources announced that the facilities were changing, but that the focus on associates was changing as well. Because communication was a major concern, the hotel was organizing an associate council on which all departments would be represented. This would be done by application, and candidates would be interviewed by a panel to choose final members . This council would identify problems, recommend resolutions , and present them to the executive committee when consensus was reached. The council would establish ground rules and participate in teambuilding training.
Corporate headquarters implemented a daily loyalty bulletin in all full-service brands. The HR department published the bulletin, rotating which of the 20 basics it highlighted. If everyone practiced these basics, management believed that the guests would remain loyal to the Marriott brand. This bulletin is also used to communicate the groups staying in the hotel, VIP guests, associate birthdays, and service anniversaries. Each department conducts daily pre-shift meetings to discuss the items listed in the bulletin. HR oversees these communication tools as well as a centrally located bulletin board to inform associates and encourage them to participate in the all-associates meetings and to apply for the associate council.
2. Learning Organization
The analysis of the needs assessment clearly indicated that associates were interested in learning. In responding to the statement "I am committed to learning," 92 percent either agreed or mostly agreed. On all training questions, more than 50 percent agreed that they needed some form of training, and more than 50 percent disagreed that "people in organizations are only motivated by rewards such as pay and bonuses." The majority of the write-in responses showed that associates wanted additional training in computers for both their job and their personal growth.
Marriott is committed to training. The Detroit Marriott Renaissance Center is looking to create a training manager position with the goal of offering ongoing classes. This would not only be for job-related training, but for learning important to individuals as well. Marriott also wanted to tap into the expertise of associates to teach such classes as diet and nutrition, financial planning, using the Internet, etc. For instance, an HR manager who was getting a master's in Adult Instruction and Performance Technology and taking a class in Creating the Learning Organization was also facilitating the associate council.
3. Job Enlargement (Crosstraining)
A manager with a background in training and social work was hired at the Courtyard across the street to facilitate the Welfare-to-Work program sponsored by Marriott. The Detroit Marriott Renaissance Center may also utilize this program at no cost as long as it can guarantee a required number of hours for on-the-job training. When hotel occupancy levels become consistent, this program will be a valuable tool to attract and retain staff.
The banquet department keeps a minimal number of regular staff, using union extras when large parties are booked into the hotel. Many associates from other departments are trained to pick up banquets after their shift is over or on their days off. Many new associates would be interested in doing this if regular ongoing training was made available.
Marriott has a certification process whereby associates are identified as trainers of new hires and then receive special training to prepare them to properly train all new hires. Ideally each department has at least one certified person; the Detroit Marriott Renaissance Center will also implement this process.
The PBX department (hotel operators) is undergoing the heaviest redesign. They are now called "At Your Service." Associates in this department will be the first to receive official certification. Typing assessments have been completed, and PBX associates are using the "Typing With Mavis" CD-ROM to improve their speed and accuracy. A criterion has been established, and typing tests will again be administered. Next the associates will undergo computer training, which will eventually become available to all associates in the learning organization. Other associates can then become certified, which would ensure that they are next in line for promotion when an opening occurs. Once this is successfully established in PBX department, the training process will be expanded to include all departments.
4. Culture (Trust and Motivation)
An associate opinion survey (AOS) will be conducted. It is anticipated that it will take time and effort to achieve satisfactory scores. This survey will help identify some key issues and the necessary steps to improve on-the-job culture.
The Detroit Marriott Renaissance Center hired a nurse manager (shared with the Courtyard across the street) to address the health and safety concerns of associates. This will save some associates from having to go to the clinic for certain complaints, and the hotel can be proactive in reducing worker's compensation issues. Associates are excited about this addition because it displays a caring attitude.
Intervention Implementation and Change
The intervention selected for focus is organizational communication, including implementation of an associate council. Because an extensive evaluation system was needed, all other interventions were developed later. Certain considerations in managing the change process (based on Job Aid 6-2) were identified:
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When the format of the council was announced, associates from all departments were invited to apply.
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HR presented the overall direction of the council to the general manager for buy-in.
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Interruption in work was anticipated and accommodated to allow associates time off to attend meetings during their scheduled shift as necessary.
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Applications were designed and criteria established for selection purposes. (Note: The original application was too extensive ”associates felt the criteria were discouraging. After this feedback, they were redesigned, approved by a couple of associates, and the deadline was extended.)
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The need to overcome the belief of associates that this had been attempted before was identified and addressed.
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The need for training in teambuilding, brainstorming, and consensus was identified and the training designed.
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Choosing a facilitator committed to the success of the council was completed.
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The first meeting was committed to developing a shared vision and ground rules in how to conduct an effective meeting.
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Directions: Answer the following questions.
| Has the change expectation been thoroughly defined? |
| How will this change disrupt the current organization? |
| Does the organization have a history of implementation problems? If so, describe. |
| Are the sponsors sufficiently committed to the project? If not, would education or replacing sponsors help? |
| Does synergy exist between sponsors, employees, and change targets? If not, what can be done to improve relationships? |
| What resistance is anticipated? |
| Is planned change consistent with organizational culture? |
| Are employees sufficiently ready for change effort? Would training help? |
| Are the right people, right communication plan, and right measurements in place? |
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Evaluation
Currently, Marriott International - Detroit's evaluation system is in the process of design and development (see Job Aid 7-1). Marriott has outlined their intentions (see Table 8-1) for the type of evaluation, who will measure, what will be measured, and how they will measure. Fully defining an evaluation system, with consensus and approval of the director of human resources, will ensure that their goals are being met. Having reliable data will validate the success (or failure) of the council and other evaluation strategies and allow Detroit to become a benchmark in the Marriott Corporation.
| Type of Evaluation and Who Measured | What to Measure | How to Measure | |
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| FORMATIVE | Associates who are Council members |
| Questionnaire Questionnaire Questionnaire |
| Associates represented by Council members |
| Questionnaire | |
| Council members |
| Data collected by facilitator | |
| Council members and Exec . Committee |
| Questionnaire to Council and to Executive Committee | |
| SUMMATIVE | Council Members |
| Pre/post tests Post test |
| Executive Committee |
| Pre/post test to evaluate awareness of problem | |
| All hourly associates and management staff |
| Once initial scores are established, retest at 6 months | |
| Managers affected by implementation |
| Questionnaire | |
| Department where problem is occurring |
| Depending on problem, cost impact, safety etc. | |
| All hourly associates and management staff |
| Questionnaire | |
| Guests of hotel |
| Calculated quarterly by third party | |
| Associates and management |
| Compare by month the frequency of grievances | |
| Associates and management |
| Compare by month the number of cases | |
| CONFIRMATIVE | Guests of hotel Hourly associates |
| Administered annually Compare quarterly Compare number of applicants from year to year |
| Hourly and management staff |
| Yearly questionnaire |
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Directions: The columns are labeled with the four types of evaluation; the rows are labeled to describe issues that must be addressed when planning an effective evaluation. Fill in each cell before the evaluation begins and revise as the evaluation progresses.
| Formative | Summative | Confirmative | Meta | |
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| Primary Emphasis in Data Collection | ||||
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| Requirements for Credibility |
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Future
The future looks very bright. Having the global headquarters for one of the world's largest companies in the heart of the downtown area has contributed to the revitalization of the city. As a result of General Motor's investment, many of the offices in the Renaissance Center had to relocate to other parts of the city, which created a demand for office space. In addition, with the recent approval for three casinos to be built in the Detroit area, the city is now becoming a destination for travelers. In the next five years, Detroit is expected to undergo a complete revitalization.
Case study written by Cathy Tishhouse, Marriott International, Detroit, Michigan, October 21, 1999. Used with permission.
EAN: 2147483647
Pages: 98