Ritz Carelton - Change Management

17,438 views
17,045 views

Published on

RSM 312 (Case Analysis for Strategic Management) - Case Presentation @ Rotman Commerce

0 Comments
10 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
17,438
On SlideShare
0
From Embeds
0
Number of Embeds
24
Actions
Shares
0
Downloads
0
Comments
0
Likes
10
Embeds 0
No embeds

No notes for slide
  • 1. Extra cost per week of training need only be covered by a 0.25% increase in
  • Internal buy in to ensure brand perception is not changed from within the companyHigher occupancy rates, more stress on employeesBig partner, involve them in the process. To prevent them to work with 4 seasons
  • Ritz Carelton - Change Management

    1. 1. Are Seven Days Enough?<br />Daniel Rodic, David Hao, Jacky Lei<br />November 1, 2010<br />
    2. 2. Agenda<br />1<br />Key Questions & Recommendation<br />2<br />Supporting Analysis<br />3<br />Potential Risks & Mitigation Plans<br />4<br />Next Steps & Key Takeaways<br />2<br />Ritz-Carlton Hotel Company<br />
    3. 3. Ritz-Carlton Hotel Company<br />3<br />Key Questions & Recommendation<br />
    4. 4. Ritz Carlton is facing a tough decision regarding its typical operating procedures in lieu of Collin’s requests.<br />Ritz-Carlton Hotel Company<br />4<br />Complication<br />Situation<br />Brian Collins from Millennium Partners is worried that 7 days is not enough time to properly train the Ritz-Carlton staff, and wants to open closer to 80% occupancy.<br />The Ritz-Carlton is in the process of opening a new hotel in Washington D.C. as part of a multi-use facility in partnership with Millennium Partners.<br />Should Ritz-Carlton heed Brian Collin’s requests?<br />What are the impacts of altering the “Seven Day Countdown”?<br />What are the impacts of opening closer to 80% occupancy?<br />How does this affect your relationship w/ Millennium Partners?<br />What is Four Seasons doing that could impact your decision?<br /><ul><li>Financial, Brand, Morale?
    5. 5. What type of extra training is needed to achieve this goal?
    6. 6. Positive / Negative effects?
    7. 7. Does this decision affect the success of Four Seasons?</li></ul>1<br />2<br />3<br />4<br />Cancelling the contract is not a feasible option.<br />Hotel opens in <br />January 2001<br />Ritz cannot observe Four Season`s actions.<br />
    8. 8. Ritz Carlton should extend the countdown and increase initial occupancy rates.<br />Ritz-Carlton Hotel Company<br />5<br />Should Ritz-Carlton heed Brian Collin’s requests?<br />What are the impacts of altering the “Seven Day Countdown”?<br />What are the impacts of opening closer to 80% occupancy?<br />How does this affect our relationship w/ Millennium Partners?<br />What is Four Seasons doing that could impact our decision?<br />Extend countdown and increase initial occupancy rate. <br />Extend countdown but maintain typical occupancy rates.<br />Reject Brian Collin’s requests.<br />Extend countdown and increase initial occupancy rate. <br />
    9. 9. Accommodating Collin’s request best aligns with Ritz Carlton’s overall key success drivers.<br />Ritz-Carlton Hotel Company<br />6<br />Alignment <br />with Criteria<br />High<br />Medium<br />Low<br />
    10. 10. Ritz-Carlton Hotel Company<br />7<br />Supporting Analysis<br />
    11. 11. Accepting Collin’s request yields attractive benefits.<br />Opening at a higher occupancy rate provides earlier cash flows for reinvestment in other projects.<br />Less lag time between offer and start of work term reduces relationship building costs.<br />Provides confidence for future projects with current and future partners.<br />Ritz-Carlton Hotel Company<br />8<br />Reduced <br />Post-Hire Costs<br />Earlier Cash Flows<br />SERVICE<br />CULTURE<br />Long Term Enhancement of Partnership<br />Professional Service is at the core of Ritz Carlton<br />
    12. 12. Increasing overall occupancy each month leads to large increases in year end cash.<br />Ritz-Carlton Hotel Company<br />9<br />Extra Week of Training<br />(+$75,000)<br />+0.25% in Total Occupancy<br />Figure 1: Projected Ending Cash Balance<br />
    13. 13. Ritz-Carlton Hotel Company<br />10<br />Potential Risks & Mitigation Plans<br />
    14. 14. Ritz Carlton is facing three key risks going forward.<br />Ritz-Carlton Hotel Company<br />11<br />Brand <br />Risk<br />Vet the new training process with all levels of management at Ritz Carlton to ensure it aligns with the company’s core values.<br />Quality <br />Risk<br />Extended training will ease new employees into their jobs, and better prepare them to handle an increased opening occupancy rate.<br />Partnership Risk<br />Involve Millennium Partners in the creation of the new training program to generate buy in, and build confidence for future hotel opening.<br />
    15. 15. Ritz-Carlton Hotel Company<br />12<br />Next Steps & Key Takeaways<br />
    16. 16. Ritz Carlton needs to act now to meet Collin’s expectations.<br />Ritz-Carlton Hotel Company<br />13<br />Continue other preparatory activities for the January 2001 Opening.<br />High<br />Contact new hires to advise them of new training timeline.<br />Launch revised countdown training program.<br />Inform Ritz Mgmt of Change in Training<br />1 Week<br />Priority<br />Engage MP in training development.<br />Vet revised training by upper Ritz management.<br />Medium<br />Begin revising <br />countdown schedule<br />1 Month<br />Determine length of revised countdown plan.<br />Low<br />Time from Today<br />3 Month<br />
    17. 17. Ritz-Carlton Hotel Company<br />14<br />“As soon as two people come together, conflict will arise. It’s not the fact that we have conflict – it’s what we do with it. We all have the same dream of excellence; we all have the same goal: to be successful.”<br />- Howard Schulze<br />
    18. 18. Appendix<br />
    19. 19. Projected Cash Flows (1)<br />Ritz-Carlton Hotel Company<br />16<br />
    20. 20. Projected Cash Flows (2)<br />Ritz-Carlton Hotel Company<br />17<br />

    ×