Four seasons goes_to_paris-Case Study

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Four seasons goes_to_paris-Case Study

  1. 1. Four Seasons Goes to Paris<br />
  2. 2. 53 Properties 24 Countries 1 Philosophy <br />2002 – Four seasons hotel & Resorts: the worlds leading operator of luxury hotels <br />
  3. 3. Diversity and Singularity <br />People come first<br /> ONE SHOULD TREAT OTHERS THE WAY HE EXPECTS TO BE TREATED<br />= THE GOLDEN RULE<br />
  4. 4. Performance<br /><ul><li>Generally Operated and not owned midsized luxury hotel and resorts
  5. 5. 1996-2000: Revenues increased by 22.6%
  6. 6. Operating Margins: 58.8% to 67.9%
  7. 7. Revenue per room 32% that US competitor, 27% higher than European competitor
  8. 8. 2001 Revenues & earnings had dropped (103074-86486)
  9. 9. (check out financial statements again, after finance-include ratios, etc..) </li></li></ul><li>Organizational Hierarchy<br />For each environment: stake holders, managers, employees, and for clients the GOLDEN RULE IS RESPECTED<br />Support System:<br /><ul><li>Regional Human Resources Director
  10. 10. Area Director of Finance
  11. 11. Regional Marketing Director </li></li></ul><li>BUSINESS DESIGN MODEL<br />
  12. 12. <ul><li>Plan:What?</li></ul>Golden Rule <br />Global but local: Preserve and adapt locally<br />Managers are “world citizens” <br />Firms top managers comfortable in international settings<br />Setting clear goals with management standards<br />Enabling services<br />Enhancing services<br />Diversity and Singularity<br />Global Uniforms Standards- to evaluate performance against standards Internal and External Auditors <br />
  13. 13. <ul><li>Do: =How?</li></ul>GM responsible for supervising day to day operations of a single property – rewarded on ability to deliver and maintain the highest and most consistent service standard in most cost effective manner <br />Task force<br />Establishing Four Seasons service standards.<br /><ul><li>Enabling services are improved untill client’s satisfaction is reached: Example of scrambled eggs Vs “oeuf brouillés”
  14. 14. Enhancing services: creative differenciation:Example of the Guest Room Evening Service = orientation to detailed attention
  15. 15. Intelligent, Anticipatory and Enthusiastic Service
  16. 16. No Excuses </li></ul>->= S-E-R-V-C-E<br />
  17. 17. The Seven Four Season “SERVICECulture Standards” <br />SMILE<br />EYE <br />EVERYONE<br />RECOGNITION<br />CLEAN <br />INFORMED<br />VOICE <br />
  18. 18. <ul><li>Check:how well?</li></ul>FBM: Feed Back Management: Strong Allegiance to Firm <br />Internal employees surveys<br />Feedback on managerial system from employees, through a monthly 30-employee group meeting<br />Managers daily morning meetings<br />External feed back<br />Family experience , open interaction treating employee as they are expected to treat clients: Golden rule, importance of the employee.<br />Responsive to media<br />External service quality auditing<br />
  19. 19. <ul><li>Act:constent improvement</li></ul>Direct response to feedback<br />Constant improvement of service<br />Constant evolution therefore adaptation to the changing expectations of customers<br />
  20. 20. Other Culture habits <br /><ul><li>Modest, compassion and discipline
  21. 21. Very professional, not pretentious, detail oriented
  22. 22. Interested in people
  23. 23. One firm sentiment
  24. 24. Accountability </li></li></ul><li>Facilities <br />Landmark <br />Excellent Service <br />Luxury/Cultural Design <br />Michelin Star Restaurant <br />Spa <br />
  25. 25. FOUR SEASONS: MASTERS OF LUXURY HOTEL SERVICES FOR THE PAST 30 YEARS<br />From the ORIGAMI napkins to the PAINT on the WALLS<br />There is NO ESCAPE from the SERVICE FACTOR!!!<br />It is EVERYWHERE and EVERYTHING!<br />
  26. 26. SUCCESS = SERVICE<br /><ul><li> DISTINGUISHING EDGE - “CONSISTENTLY EXCEPTIONAL SERVICE”
  27. 27. High quality, truly personalized service.
  28. 28. Maximize value of customers time – According to Grönroos’ Service Marketing Triangle this is a ‘value creation service.’
  29. 29. “the distance between the employee and the guest has to be small.”
  30. 30. “THE GOLDEN RULE”
  31. 31. Treat others the way you want to be treated.
  32. 32. Turnover is half of industry average of 55%
  33. 33. “Very professional, not pretentious” “Family”
  34. 34. Happy employee = happy customer (Fortune top 100 best companies to work for in North America)
  35. 35. E.g. Each employee has several uniforms for when they get dirty…keeps dignity
  36. 36. PROCESS CONSUMPTION - HIGH-TOUCH SERVICE
  37. 37. From the moment of booking ONWARDS – SERVICE
  38. 38. No PREBUNDLED PRODUCT! – Must be FLEXIBLE & EMPATHETIC! E.g. concierge taking guest to hospital and staying overnight
  39. 39. “Intelligent service” able to cope with changing demand – anticipate guest needs</li></li></ul><li>INTERNATIONAL hotel<br />INTERNATIONAL MINDSET<br />
  40. 40. GLOBAL BUT LOCAL<br />“Our strength is our diversity and our singularity” – Corinthios (President Europe, Middle East & Africa)<br /><ul><li> LOCAL APPROACH - DIVERSITY!
  41. 41. “each hotel is tailor made” adapted to its national environment – David Crowl, VP sales & marketing Europe, Middle East, and Africa e.g. more restaurants in Asian hotels
  42. 42. When waking up in Instanbul hotel you know you are in Turkey
  43. 43. SINGULARITY
  44. 44. “the process for opening and operating a hotel is the same everywhere.”
  45. 45. Standards are universal e.g. clean room, good breakfast….but done with own style
  46. 46. 7 SERVICE CULTURE STANDARDS – KEEPING SERVICE INTERNATIONAL!!!
  47. 47. Standards create a strong foundation but yet can be locally flexible e.g. do not leave coffee pot on table in France as perceived as lack of service
  48. 48. Expected of ALL staff ALL over the world at ALL times
  49. 49. Standards are MINIMUM expectations – GO BEYOND a standard if possible</li></li></ul><li>Moment of truth<br />Functional quality<br />Relational quality<br />Moment of opportunity<br />Influence mood through music, flowers, friendliness, (decoration - fengshui – servicescape)<br />The 7 criteria of good perceived service quality pg. 89<br />Relationship quality pg. 91<br />EXPECTATIONS!!<br />“When you are the best hotel in the world, how do you measure yourself when the only challenge is you? Essentially, the continual striving to surpass inevitably makes you better, which is why Four Seasons George V remains one in a million" Gallivanter's Guide, UK, March, 2009<br />
  50. 50.
  51. 51. Each Hotel Is Tailor made with the following in Mind: <br />
  52. 52. Human Resources <br />Golden Rule: One should treat others as they wish to be treated<br />
  53. 53. ENTRY STRATEGY IN THE FRENCH MARKETLOCAL APROACHGLOBAL MANAGEMENTSERIOUS SERVICE DEDICATION<br />
  54. 54. KEY LOCATION: PARISIAN LANDMARK<br />GEORGES V<br />Heritage of the 8th arrondissement of Paris in the heart of the luxury: architecture art, shopping…Parisian Culture<br />
  55. 55. THE PLAN<br /> Sticking to the standard opening strategy of the hotel: Global buT local: to an extreme sensitive adaptation.<br />Preserve the soul of the Georges V although rebuild for the international traveler<br />Preserve:<br />French style in design and cuisine<br />Renovations, decoration<br />House-keeping<br />French chef: « culinary coup d’etat » = very new to the four Season’s management choicepolicy but respectfull to the customers expectations of a <br />« serious » french chef, «serious food »!<br />Adapt to the worker unions, and work week standards:<br />The standard work week in the hotel industry in france is actually up to 39 hours, other industries 35h/week, which makes it a chalenge and a competitive attraction for employees<br />
  56. 56. REBUILD:<br />French manager whom embodies the Four Seasons culture and standards<br />Serious about golden rule<br />Resulting in better reception from the environment and work-force<br />American style of management<br />The employee of the year<br />TASK-FORCE<br />AMAZING COMUNICATION!<br />Direcrt line= 30 employee group meeting.<br />Manageer’s daily morning meetings<br />Familly experience 3 times a year, hotel opening doors to the employees and their family<br />Unexpectedly open and responsive to the press<br /> Generally speaking the american style of management can be perceived as a bit imposing;<br />Allthough it is balanced with smooth adaptation to french workers<br />And the PDCA: design management style of the company is responsive to feed back and openied to managerial improvements <br />
  57. 57. Do the Lessons from Four Seasons Going to Paris apply to Luxury Service Firms Entering Markets Other than France ?<br />YES<br />All countries in all service industries: <br />RETAIL INDUSTRY <br />SPA INDUSTRY <br />FASHION INDUSTRY <br />SERVICE INDUSTRY<br />REAL ESTATE <br />SERVICE IS ABOUT PERSONALITY THEREFORE CULTURE AND NEEDS TO BE APROCHED LOCALY<br />

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