• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Download Power Point Presentation
 

Download Power Point Presentation

on

  • 439 views

 

Statistics

Views

Total Views
439
Views on SlideShare
439
Embed Views
0

Actions

Likes
0
Downloads
1
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • 5 yrs of experience leading strategic sourcing projects for air, car, hotel and agency categories. Two yrs ago launched Travel Analytics in order to specialize in primarily in airline sourcing work, with some agency sourcing work.
  • 5 yrs of experience leading strategic sourcing projects for air, car, hotel and agency categories. Two yrs ago launched Travel Analytics in order to specialize in primarily in airline sourcing work, with some agency sourcing work.
  • 5 yrs of experience leading strategic sourcing projects for air, car, hotel and agency categories. Two yrs ago launched Travel Analytics in order to specialize in primarily in airline sourcing work, with some agency sourcing work.

Download Power Point Presentation Download Power Point Presentation Presentation Transcript

  • Stages of Travel Management Excellence Strategies for Advancing Your Travel Programme Presented by Scott Gillespie, CEO TRAVEL ANALYTICS INC
  • Today’s Agenda
    • Credentials
    • The Stages of Excellence Framework
    • Application and Limitations
    • Elements and Criteria
    • Discussion
  • Scott Gillespie’s Background
    • Founded Travel Analytics in 1999
      • Developed TANGO™ and BRAVO™ for airline sourcing projects
      • Analyzed in excess of $10 Billion of annual air spend
      • Recipient of ACTE’s Industry Professionalism and Distinguished Fellow honors
      • Named by Business Travel News as one of the travel industry’s most influential executives
    • A.T. Kearney’s expert in strategic sourcing of travel suppliers from 1994 -1999
    • MBA, University of Chicago
  • Past and Current Clients
      • AXA
      • Capital One
      • Coca-Cola
      • Chevron
      • Compaq
      • DaimlerChrysler
      • Dell Computer
      • John Deere
      • Ernst & Young
      • ExxonMobil
      • Ford
      • Hewlett-Packard
      • Hoffman LaRoche
      • Invensys
      • International Monetary Fund
      • Lockheed Martin
      • Microsoft
      • Lucent Technologies
      • Proctor & Gamble
      • Nortel Networks
      • PricewaterhouseCoopers
      • Saint Gobain
  • Stages of Excellence For Travel Management The Framework
  • How Many Good Travel Programmes Are Out There? Poor Fair Good Great 25%? 50%? 20%? 5%?
  • How Do Travel Programs Evolve? No real travel program; mostly fighting fires Basic travel program; limited support Advanced travel program; good support World class program; Great support, Excellent results By taking a series of prioritized and often difficult steps Right…What are those steps, exactly? Stage 1 Stage 2 Stage 3 Stage 4
  • The Answers Are Not Clear…But The Method Is
    • The travel/procurement team must agree on a basic strategy and key goals
      • What is realistically achievable?
      • What does our company expect?
    • Requires a rigorous assessment of current program, practices, processes and stakeholders
    • Managers must prioritize costs and benefits of each potential improvement
    Managers need a useful framework
  • Stages of Excellence Framework Stage 1 Full-time Written, low to moderate enforcement Occasional bursts of involvement Keep the noise down Keep making promises Stage 2 Category specialists Moderate to strong enforcement Predictable support Operational excellence Focus only on price Stage 3 Functional specialists Regular business case reviews Engaged and supportive Support the Business Strategic sourcing Stage 4 Better Travel manager Travel policies Senior management Major goals Procurement strategy Dimensions Illustrative None or part-time None or ad hoc Vocal but uninvolved Respond to problems None or ad hoc Criteria
  • 14 Major Dimensions
    • Senior Management
    • Travel Strategy
    • Goals
    • Travel Policy
    • Feedback
    • Controls
    • Procurement
    • Suppliers
    • Transient Management
    • Group Management
    • Data
    • Travelers
    • Demand Management
    • Travel Organization
  • Organized Into Four Quadrants Senior Management Travel Strategy Goals Travel Policy Feedback Controls Procurement Suppliers Transient Management Groups Management Data Travelers Demand Management Travel Organization Roadmap Engine Steering Wheel Drivers Similar to a Balanced Scorecard
  • Three Levels of Analysis Dimensions Senior Management Travel Strategy Goals Traveler Satisfaction Agency Operations Elements 1 2 3 4 1 2 3 4 No goals Goals are hard to measure Goals are easy to measure Goals are meaningful and aggressive Criteria Stage 1 Stage 4 Better
  • Each Element and Dimension Is Scored Average Goal Score: 2.0 Can score 2.5 or 3.3 etc. Goals Dimension Elements Traveler Satisfaction Agency Operations No goals Goals are hard to measure Goals are easy to measure Goals are meaningful and aggressive 1 2 3 4 1 2 3 4 Stage 1 Stage 4 Criteria
  • Stages of Excellence For Travel Management Application and Limitations
  • Weak Points Can Be Addressed What goals should we use? How are we going to measure them? Is this a priority? Will it clearly help us? Goals Elements Traveler Satisfaction Agency Operations No goals Goals are hard to measure Goals are easy to measure Goals are meaningful and aggressive 1 2 3 4 1 2 3 4 Stage 1 Stage 4
  • Scores Can Be Summarized Roadmap Engine Steering Wheel Drivers Senior Management Travel Strategy Goals 1.6 2.0 1.2 Procurement Suppliers Transient Management Groups Management Data 1.8 2.5 3.4 1.0 2.7 Travel Policy Feedback Controls 2.8 2.4 3.1 Travelers Demand Management Travel Organization 3.6 2.6 1.4 Average: 1.6 Average: 2.8 Average: 2.3 Average: 2.5
  • Priorities Can Be Set Priority 1 Priority 2 Today Peers Goal 4 3 2 1 Today Peers Goal Roadmap Engine Steering Wheel Drivers 4 3 2 1 Today Peers Goal 4 3 2 1 Today Peers Goal 4 3 2 1
  • Entire Programs Can Be Compared A B C D E F G Company Codes Stage 4 Stage 3 Stage 2 Stage 1
  • And More Importantly – Improved! A B C D E F G Company Codes Stage 4 Stage 3 Stage 2 Stage 1 Today Goal
  • How Is This Different From Benchmarking?
    • Most benchmarking statistics are descriptive
      • “Our average ticket price is $375 vs. peer group’s $344”
      • “Our travel agency configuration is a single reservation center; 63% of our peers use on-site agencies”
    • Descriptive statistics are not often prescriptive
      • Should your average ticket price be lower?
      • Should you use on-site agencies?
    Stages of Excellence are designed to be prescriptive
  • Limitations to Stages Of Excellence
    • The Dimensions, Elements and Criteria were developed by Travel Analytics
      • There are many other possible views
    • Requires honest self-assessment
    • Scoring depends on assigned weights
    • The path to improvement is not always obvious
      • Must often ask “What do we need to do to improve this score?”
    Stages of Excellence is a rigorous and objective – but not perfect – diagnostic tool
  • Stages of Excellence for Travel Management Elements and Criteria
  • Senior Management (4) Travel Strategy (6) Goals (8) Travel Policy Feedback Controls Procurement Suppliers Transient Management Groups Management Data Travelers Demand Management Travel Organization Roadmap Engine Steering Wheel Drivers ( ) = Number of Elements
  • Senior Management Stage 1 Stage 2 Stage 3 Stage 4 Significant use; very effective Moderate use; fairly effective Limited use; not very effective No Travel Council SM4. Utilization of a Travel Council Ownership is very clear Ownership is fairly clear Ownership is not very clear Nobody owns Travel SM2. Ownership of Travel Management Strong and consistent support and enforcement Consistent but moderate support and enforcement Support and enforcement is fairly weak and inconsistent Little or no support or enforcement SM3. Support and Enforcement Solid understanding of most key issues; views Travel strategically Basic understanding; makes good decisions Basic understanding, but struggles with making decisions Little or no understanding of the basic issues SM1. Understanding of Travel Management
  • Travel Strategy, part 1 Stage 1 Stage 2 Stage 3 Stage 4 Significantly Moderately Slightly Not at all TS1. Travel viewed as a factor for business success Significantly Moderately Slightly Not at all TS2. Travel viewed as a factor in employee retention and productivity Significantly Moderately Slightly Not at all TS3. Travel viewed as a controllable cost
  • Travel Strategy, part 2 Stage 1 Stage 2 Stage 3 Stage 4 Excellent Generally good Somewhat limited Little or none TS4. Success at budgeting travel costs Excellent Generally good Somewhat limited Little or none TS5. Success at tracking and reporting travel cost savings Excellent Generally good Somewhat limited Little or none TS6. Success at getting major travel management initiatives approved
  • Goals, part 1 Stage 1 Stage 2 Stage 3 Stage 4 Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G1. Traveler satisfaction Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G2. Senior management satisfaction Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G4. Agency performance Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G3. Policy compliance
  • Goals, part 2 Stage 1 Stage 2 Stage 3 Stage 4 Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G5. Self-booking adoption Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G6. Contract compliance Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G7. Supplier performance Meaningful; aggressive but achievable Fairly easy to measure Exist, but hard to measure No goals G8. Financial performance
  • Travel Policy (3) Feedback (8) Controls (4) Procurement Suppliers Transient Management Groups Management Data Travelers Demand Management Travel Organization Roadmap Engine Steering Wheel Drivers ( ) = Number of Elements Senior Management (4) Travel Strategy (6) Goals (8)
  • Travel Policy Stage 1 Stage 2 Stage 3 Stage 4 Very specific Fairly specific General guidelines Little or no guidelines TP1. Quality of travel to be purchased Very specific Fairly specific General guidelines Little or no guidelines TP2. Processes to be used for purchasing travel Strong consequences Moderate consequences Minor consequences Little or no consequences TP3. Typical consequences of not complying with a key travel policy
  • Feedback, part 1 Stage 1 Stage 2 Stage 3 Stage 4 Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F1. Traveler satisfaction Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F2. Senior management satisfaction Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F3. Policy compliance Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F4. Agency performance
  • Feedback, part 2 Stage 1 Stage 2 Stage 3 Stage 4 Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F5. Self-booking adoption Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F6. Contract compliance Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F7. Supplier performance Clearly drives future actions Obtained regularly Obtained irregularly Little or none sought F8. Financial performance
  • Controls Stage 1 Stage 2 Stage 3 Stage 4 Preferred suppliers automatically prioritized based on contract needs Preferred suppliers identified automatically at Point of Sale Agents are expected to sell preferred suppliers Little or none C2. Supplier preferencing at point of sale Significant ability Moderate ability Fairly limited ability Little or no ability C3. Ability to move business away from key suppliers Very hard to obtain; reported to senior management Fairly hard to obtain; tracked and reported Fairly easy to obtain; tracked and reported Easy to obtain; not tracked or reported C1. Exceptions to travel policies Significant ability Moderate ability Fairly limited ability Little or no ability C4. Ability to pass travel costs onto business units
  • Procurement (7) Suppliers (4) Transient Management (5) Groups Management (4) Data (5) Travelers Demand Management Travel Organization Roadmap Engine Steering Wheel Drivers ( ) = Number of Elements Senior Management (4) Travel Strategy (6) Goals (8) Travel Policy (3) Feedback (8) Controls (4)
  • Procurement, part 1 Stage 1 Stage 2 Stage 3 Stage 4 Strategic sourcing process; directed by senior management Formal sourcing process Require proposals; but have rolling contracts Very informal P1. Tender or RFP process Use sophisticated cost/pricing models Detailed comparisons of bids and current contracts Benchmarking of key rates, city pairs, etc. Informal; back of the envelope P2. Analysis of pricing Use of quality scoring models and traveler feedback Fairly detailed analysis of RFP/tender responses Limited analysis; mostly rely upon supplier’s reputation No analysis P3. Analysis of quality Significant analysis; tied clearly to procurement decisions Fairly detailed analysis combined with judgment Limited analysis; primarily based on judgment No real analysis P4. Analysis of risk (implementation, contract cancellation, traveler dissatisfaction
  • Procurement, part 2 Stage 1 Stage 2 Stage 3 Stage 4 Significant integration Moderate integration Minimal integration No integration P5. Travel’s integration with Procurement Decision rules established prior to receiving bids Suppliers evaluated on total cost, quality and risk Primarily based on price Primarily based on relationships P6. Basis for awarding contracts Moderate to significant input; issues resolved quickly Moderate to significant input, but time-consuming Minimal review of contracts and bids None P7. Legal department’s input
  • Suppliers Stage 1 Stage 2 Stage 3 Stage 4 Delighted Very satisfied Fairly satisfied Very or mostly dissatisfied S1. Delivery of expected level of service Delighted Very satisfied Fairly satisfied Very or mostly dissatisfied S2. Resolution of traveler complaints and other operational issues Delighted Very satisfied Fairly satisfied Very or mostly dissatisfied S3. Quality of people assigned to your account Delighted Very satisfied Fairly satisfied Very or mostly dissatisfied S4. Current pricing
  • Transient Management Stage 1 Stage 2 Stage 3 Stage 4 Mostly consolidated at regional level Mostly consolidated at country level Some consolidation; mostly in major countries Very little consolidation TM1. Agency consolidation Able to easily control preferred supplier market share Counselors actively sell preferred suppliers Counselors trained to sell preferred suppliers, but are fairly passive Little or none TM2. Ability to control the point of sale Delighted Very satisfied Fairly satisfied Poor or very inconsistent TM3. Agency service quality Trusted as an objective and proactive source of excellent advice Provides practical advice on a range of issues Use is limited mostly to agency operational issues Not used in this capacity TM5. Agency as a trusted advisor or consultant Significant and sustained improvements Some recent improvements Fairly stable Not measured or getting worse TM4. Agency productivity
  • Group Management (GM) Stage 1 Stage 2 Stage 3 Stage 4 Fairly easy for most large and medium events Fairly easy for most large events Very basic ability for most large events Unable; difficult for even major events GM1. Ability to measure GM spend GM planners have very strong communication network Well organized network; effective communications Fairly fragmented; not well organized Little or none GM2. Communication between internal GM planners Very good for most events of all sizes Fairly good for most large and medium events Limited to major events Little or none GM3. Centralized visibility of GM events Standardized processes for most all events; very effective Standardized processes for most large and medium events Standardized processes only for large events No or few standardized processes GM4. Processes for planning, sourcing and managing GM events
  • Data / Information Stage 1 Stage 2 Stage 3 Stage 4 Very easy and fast; good data quality Fairly easy; good data quality Fairly difficult; data quality questionable Very difficult; poor data quality D1. Ability to consolidate enterprise-wide travel spending Excellent reports and analyses Good reports; fairly timely; useful Basic reports; moderate delays Very limited; long delays D2. Airline data Visibility of 90+% room nights by property Visibility of 80+% room nights by property Mostly limited to agency bookings; 20-40% missing Mostly limited to agency bookings; 40+% missing D3. Hotel data Daily dashboard reports on all key metrics Informative reports available weekly Basic monthly or quarterly reports None or limited D4. Agency data Delighted Very satisfied Fairly satisfied Very or fairly dissatisfied D5. Other information needed for managing travel
  • Travelers (4) Demand Management (4) Travel Organization (4) Roadmap Engine Steering Wheel Drivers ( ) = Number of Elements Senior Management (4) Travel Strategy (6) Goals (8) Travel Policy (3) Feedback (8) Controls (4) Procurement (7) Suppliers (4) Transient Management (5) Groups Management (4) Data (5)
  • Travelers Stage 1 Stage 2 Stage 3 Stage 4 Strong awareness Good awareness Moderate awareness Little or no awareness T1. Awareness of travel policies and preferred suppliers Strong; over 95% Good; between 80 and 95% Moderate; between 65 and 80% Low; less than 65% T2. Compliance with key travel policies Moderate or significant input sought; clearly effective Moderate input sought Limited input sought Generally not solicited T3. Input on travel policies and suppliers Fairly high opinion; clearly respected Generally favorable No opinion, or somewhat mixed Low opinion T4. Opinion of Travel department
  • Demand Management Stage 1 Stage 2 Stage 3 Stage 4 Very easy Fairly easy Somewhat difficult Very difficult DM1. Ability to eliminate unnecessary trips before they are taken Specific criteria suited to job Fairly useful guidelines Basic, such as use good judgment None DM2. Guidelines for evaluating the need for a trip Pre-trip authorization and post-trip evaluation Pre-trip authorization Post-trip evaluation or report None DM3. System for evaluating a trip’s value Significant efforts or cooperation with other departments Moderate efforts Limited efforts None; not in scope DM4. Promotion of non-travel alternatives
  • Travel Organization Stage 1 Stage 2 Stage 3 Stage 4 Very easy Fairly easy Somewhat difficult Very difficult TO1. Ability to execute major new policies, projects and initiatives Staffed mostly by very effective people Staffed mostly by effective people Staffed mostly by fairly effective people Staffed mostly by fairly ineffective people TO2. Staffing Very easy to recruit highly effective people Very easy to recruit effective people Fairly easy to recruit effective people Fairly difficult to recruit effective people TO3. Recruiting Travel department viewed as a desirable career stepping stone Regular advancement opportunities Limited advancement opportunities Travel department viewed as unattractive TO4. Career Advancement
  • Where Do We Go From Here?
    • Score your program
      • Should generate deep discussions and frank assessments
      • Many companies will not like their scores
    • Organize confidential comparisons
      • Travel management companies or consultants can lead these efforts
    • Develop specific goals and priorities for your program
    • Measure results year to year
  • We Can Go From Here… Poor Fair Good Great 25%? 50%? 20%? 5%?
  • …To Here! Stage1 Stage 2 Stage 3 Stage 4 5% 20% 50% 25%
  • Thank You! For a copy of this presentation and the accompanying scoring tool, please visit our Free Tools page at www.travelanalytics.com Or send an e-mail to: [email_address]