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Radisson case study   operations management

Radisson case study operations management



Operations Management

Operations Management



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    Radisson case study   operations management Radisson case study operations management Presentation Transcript

    • Company Background Corporate founded in 1938, Carlson Companies, Inc. Organized into four operating groups Carlson Hospitality Worldwide Carlson Wagonlit Travel Carlson Marketing Group Carlson Leisure Group First Radisson hotel was built in 1909 in Minneapolis In 1962 Carlson purchased Radisson Hotel Currently there are 420 locations in 73 countries
    • Time Line1960sIn 1962, Curt Carlson acquired total ownershipof the Radisson® Hotel in downtownMinneapolis, marking the official entrance ofCarlson Companies into the hotel business.1970s•Carlson began expanding its Radisson® hotel.Early Radisson® locations included Denver,Colo.; Bloomington, Plymouth, GrandPortage, St. Paul, Alexandria and Duluth,Minn.; Omaha, Neb.; Kansas City andWichita, Kan.; Cypress Gardens, Fla.;Charlotte, N.C.; Scottsdale, Ariz.; Chicago,Ill.; Danvers, Mass.; Wilmington, Del.; andNashville, Tenn.1980s•In 1987, the new Radisson® Plaza Hotelopened in downtown Minneapolis on the siteof the original Radisson® Hotel.•The first Country Inns & Suites ByCarlsonSM opened in Burnsville, Minn.1990s•The global hotel portfolio surpassed the 500-location landmark, ending the year with 556locations.2008•Carlson Hotels celebrated the opening of its1,000th location, the Radisson® St. MartinResort, Marina and Spa.
    • Challenges Diverse hotel purchases were at about a rate of onehotel every seven days. Multiple owners meant each property was rundifferently Unfocused Brand Image: No real uniform brand across the many properties,resulting in multiple hotels with low qualitymanagement and customer service. Alignment with hotel owners more than hotel guests Grow at any cost model
    • Strategies Focus on customer Provide Individualized marketing and services Develop hotels in key locations – Maintain customerloyalty, not just grow at any cost Leverage the Carlson companies advantage – synergywith the other operating groups Strengthen global brand presence
    • Program Initiatives 100% guest satisfaction program. Fully integrated guest information system. Guest satisfaction measurement program andemployee satisfaction measurement program. Guest recognition and rewards program. Genuine hospitality program.
    • 100% Guest Satisfaction “Yes I Can” training that focused on service quality andservice recovery. http://www.youtube.com/watch?v=5cbgetAWbZI “Second Effort Program” - attempts to recovercustomers who called to complain. Leads to the mostloyal customers. Financial justification – defection is costly Pilot program: Selected 30 hotels for pilot. Measure before and after for the pilot. (Willingness to return,% advocates, % defectors, % complaints). How much money spent on “invocations” The pilot needed strong training program.
    • Integrated Information System The Curtis-C system worldwide distribution reservationsystem The CustomerKARE system (Customer database). Used bymarketing, customer service, expedite reservations New feature – compliant management system Harmony property management system. Support generalmanager in: staff productivity evaluation sales patterns employee turnover balanced score card Harmony to become available online – allow all managersassess the health of the hotel quickly
    • Measure Customer Satisfaction Mainly measured using the complaints New measurements: Willingness to return % advocates % defectors % complaints Measure customer loyalty. Frequent guest program
    • Measure Employee Satisfaction Employee satisfaction is directly related to customersatisfaction Employee surveys Employee performance measure Employee goal alignment with organizational goal Performance based rewards Employee productivity Training programs
    • Guest Recognition and Rewards Frequent guest program Silver Status comes with 15 nights or 10 stays per year. Gold Status comes with 35 nights or 20 stays per year. Concierge status comes with 75 nights or 30 stays peryear.
    • Solution- Lean What is Lean? Five Elements: Focus on value to the customer Creation of value stream map and elimination of waste Flow of service through the system created Pulling service from the customer Striving for perfection
    • Lean for the Radisson Brand Focusing on Value to the Customer Radisson would analyze which benefits and actions havegreat value to their guests and implement these valuesinto the core of their service structure. This will helpimprove customer retention
    • Lean for the Radisson Brand Eliminating Waste & Creating Flow Through Hotels Radisson would break down the various processes usedby employees and owners, when serving their customersand eliminating the time consuming or unnecessaryactivities. They would document the flow of service, sharing bestpractices and policies with all properties This would streamline the hotels so that guests receivethe same service at each property and foster employeeteamwork by standardizing function and cooperation.
    • Lean for the Radisson Brand Pulling Service from the Customer As flow is introduced, Radisson will learn customerdemand; Radisson will pull service from the customer,controlling the flow of production and supply toperfectly match customer need. They will give servicethe customer demands and do it smoothly Striving Radisson will strive for perfection by introducing Leanand giving a service guarantee throughout all propertieslinking all hotels to one consistent brand.
    • Radisson Today…• Radisson Worldwide boasts over 420 hotels including properties in New York,Los Angeles, London, Tokyo, Istanbul, Sydney, Tel Aviv, and here in DC.• According to the Carlson Group Web site, they plan to grow the Radissonportfolio domestically and globally by at least 600 hotels by 2015
    • Radisson Today… Continuation of “Yes I Can!” Tiered Branding
    • Radisson Today… Club Carlson Loyalty Program Move from Gold Points Plus program to new Club Carlson in2011 “A key pillar of our Ambition 2015 growth strategy is to help ourhotels grow their revenues,” said Hubert Joly, president and chiefexecutive officer, Carlson. “In 2010, we announced a plan to doublethe size of our loyalty program to 10 million members by 2013, andthe membership grew by 24 percent to 6.3 million members during2010. We have designed Club Carlson’s very attractive valueproposition to help drive further growth and results.”http://carlson.com/news-and-media/news-releases.do;jsessionid=QjBNPFwLzc9LQTvpvHSvzMc6rQ9Dxv0jLmvvyypjDNVVrcgWxJm2!904930257?article=4408023