Harvard Case - Best Western Italy (A): Creating an Authentizotic Organization by Putting People First
"Best Western Italy (A): Creating an Authentizotic Organization by Putting People First" Harvard business case study is written by Elizabeth Florent Treacy, Massimiliano Saccarelli, Manfred F.R. Kets de Vries. It deals with the challenges in the field of Human Resource Management. The case study is 12 page(s) long and it was first published on : Jan 28, 2013
At Fern Fort University, we recommend Best Western Italy (BWI) implement a comprehensive human-centric transformation strategy focused on building an "Authentizotic" organizational culture. This strategy will involve a multi-pronged approach encompassing talent management, leadership development, organizational change, and employee engagement initiatives. By prioritizing employee well-being, fostering a sense of belonging, and empowering individuals, BWI can unlock its full potential, improve operational efficiency, and achieve sustainable growth in the highly competitive Italian hospitality market.
2. Background
Best Western Italy (BWI) is a franchisee of the Best Western Hotels & Resorts brand, operating 40 hotels across the country. The case study highlights BWI's struggle with employee retention, particularly among younger generations, and a lack of consistent service quality across its hotels. This situation is exacerbated by the highly competitive Italian hospitality market, where attracting and retaining talent is a major challenge. BWI's CEO, Mr. Mario Rossi, recognizes the need for a cultural shift towards a more employee-centric approach, aiming to create an 'Authentizotic' organization where employees feel valued, empowered, and motivated to deliver exceptional guest experiences.
3. Analysis of the Case Study
The case study reveals several key issues:
- High employee turnover: BWI faces a significant challenge in retaining employees, particularly younger generations. This is attributed to factors like low wages, limited career advancement opportunities, and a lack of employee engagement.
- Inconsistent service quality: The lack of a cohesive organizational culture and a focus on employee well-being leads to inconsistent service quality across different hotels. This negatively impacts guest satisfaction and brand reputation.
- Competitive market: The Italian hospitality market is highly competitive, making it challenging to attract and retain top talent.
- Outdated HR practices: BWI's traditional HR practices are not aligned with the evolving needs of the modern workforce, particularly in terms of employee engagement and career development.
Applying a Strategic HR Framework:
To address these challenges, BWI should adopt a strategic HR framework that aligns with its 'Authentizotic' vision. This framework should encompass the following key elements:
- Talent Management: Implement a robust talent management strategy focused on attracting, developing, and retaining high-performing employees. This includes:
- Recruitment Strategies: Develop targeted recruitment strategies to attract diverse talent, particularly younger generations.
- Employee Onboarding: Create a comprehensive onboarding program that helps new hires acclimate to the company culture and understand their roles.
- Training and Development: Invest in ongoing training and development programs to enhance employee skills and knowledge, fostering career growth opportunities.
- Performance Management: Implement a performance management system that provides regular feedback, recognizes achievements, and supports employee development.
- Succession Planning: Develop a succession plan for key leadership roles to ensure continuity and leadership development.
- Leadership Development: Invest in leadership development programs to cultivate a culture of empowerment, collaboration, and accountability. This includes:
- Leadership Styles: Encourage leaders to adopt a coaching and mentoring style, fostering employee engagement and development.
- Diversity and Inclusion: Promote diversity and inclusion at all levels of leadership, creating a more inclusive and equitable workplace.
- Employee Engagement: Foster a culture where leaders prioritize employee well-being, recognize contributions, and create a positive work environment.
- Organizational Change: Implement a comprehensive change management strategy to facilitate the transition to an 'Authentizotic' culture. This includes:
- Communication: Communicate the vision and goals of the transformation clearly and consistently to all employees.
- Employee Involvement: Engage employees in the change process, soliciting feedback and ideas to ensure buy-in and ownership.
- Training and Support: Provide training and support to employees to help them adapt to the new culture and processes.
- Performance Indicators: Track key performance indicators (KPIs) to measure the effectiveness of the change initiative and identify areas for improvement.
- Employee Engagement: Implement initiatives to enhance employee engagement and create a sense of belonging. This includes:
- Employee Recognition: Establish a system for recognizing and rewarding employee contributions.
- Employee Surveys: Conduct regular employee surveys to gather feedback and address concerns.
- Employee Wellness Programs: Offer employee wellness programs to promote physical and mental well-being.
- Flexible Work Arrangements: Consider offering flexible work arrangements to accommodate employee needs and preferences.
4. Recommendations
Phase 1: Building the Foundation (6 Months)
- Conduct a Comprehensive HR Audit: Assess BWI's current HR practices, identify gaps and areas for improvement, and develop a roadmap for implementing the 'Authentizotic' culture.
- Develop a Strategic HR Plan: Align HR strategy with BWI's overall business goals and the 'Authentizotic' vision. This plan should include specific initiatives for talent management, leadership development, organizational change, and employee engagement.
- Implement a New Performance Management System: Develop a performance management system that focuses on employee development, provides regular feedback, and recognizes achievements.
- Launch Employee Engagement Initiatives: Implement initiatives like employee recognition programs, team-building activities, and employee surveys to foster a sense of belonging and improve morale.
- Invest in Leadership Development: Develop a leadership development program that focuses on coaching, mentoring, and building a culture of empowerment and accountability.
- Revise Compensation and Benefits: Review and revise compensation and benefits packages to make them competitive and attractive to top talent.
Phase 2: Cultivating the Culture (12 Months)
- Implement Recruitment Strategies: Develop targeted recruitment strategies to attract diverse talent, particularly younger generations.
- Enhance Onboarding Program: Create a comprehensive onboarding program that helps new hires understand BWI's culture, values, and expectations.
- Develop Training and Development Programs: Invest in training and development programs to enhance employee skills, knowledge, and career growth opportunities.
- Promote Diversity and Inclusion: Implement initiatives to promote diversity and inclusion at all levels of the organization, creating a more equitable and inclusive workplace.
- Implement Change Management Strategies: Communicate the 'Authentizotic' vision clearly, engage employees in the change process, and provide training and support to facilitate the transition.
- Measure and Evaluate Progress: Track key performance indicators (KPIs) to measure the effectiveness of the transformation and identify areas for improvement.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of BWI's current situation, considering:
- Core competencies and consistency with mission: The recommendations align with BWI's mission to create an 'Authentizotic' organization that prioritizes employee well-being and fosters a culture of excellence.
- External customers and internal clients: The recommendations aim to improve employee satisfaction, leading to enhanced guest experiences and improved customer satisfaction.
- Competitors: The recommendations address the competitive landscape in the Italian hospitality market, focusing on attracting and retaining top talent.
- Attractiveness ' quantitative measures: The recommendations are expected to lead to improved employee retention, reduced turnover costs, and increased operational efficiency, ultimately contributing to BWI's profitability and growth.
Assumptions:
- BWI's leadership is committed to the 'Authentizotic' vision and will actively support the implementation of the transformation strategy.
- Employees are receptive to the change and will embrace the new culture.
- BWI has the necessary resources to invest in the recommended initiatives.
6. Conclusion
By implementing a comprehensive human-centric transformation strategy, BWI can create an 'Authentizotic' organization that attracts and retains top talent, fosters a culture of excellence, and delivers exceptional guest experiences. This will enable BWI to achieve sustainable growth and success in the highly competitive Italian hospitality market.
7. Discussion
Alternatives:
- Continuing with the status quo: This would likely lead to continued high employee turnover, inconsistent service quality, and a decline in BWI's competitive position.
- Implementing a piecemeal approach: This could lead to inconsistent implementation and a lack of buy-in from employees.
Risks:
- Employee resistance to change: Some employees may resist the changes, particularly those who are comfortable with the current culture.
- Lack of resources: BWI may not have the necessary resources to fully implement the recommended initiatives.
- Unforeseen external factors: Economic downturns or changes in the hospitality industry could impact the effectiveness of the transformation.
Key Assumptions:
- BWI's leadership is committed to the 'Authentizotic' vision and will actively support the implementation of the transformation strategy.
- Employees are receptive to the change and will embrace the new culture.
- BWI has the necessary resources to invest in the recommended initiatives.
8. Next Steps
Timeline:
- Month 1-3: Conduct HR audit, develop strategic HR plan, and implement a new performance management system.
- Month 4-6: Launch employee engagement initiatives, invest in leadership development, and revise compensation and benefits packages.
- Month 7-12: Implement recruitment strategies, enhance onboarding program, develop training and development programs, promote diversity and inclusion, and implement change management strategies.
- Ongoing: Measure and evaluate progress, continuously improve initiatives, and adapt to changing circumstances.
Key Milestones:
- Employee retention rate: Track employee retention rate and aim for a significant improvement within 12 months.
- Employee satisfaction: Conduct regular employee surveys to measure employee satisfaction and identify areas for improvement.
- Guest satisfaction: Track guest satisfaction scores and aim for a significant improvement within 12 months.
- Financial performance: Monitor key financial performance indicators (KPIs) to assess the impact of the transformation on BWI's profitability and growth.
By implementing these recommendations and consistently monitoring progress, BWI can successfully transform into an 'Authentizotic' organization that prioritizes employee well-being and delivers exceptional guest experiences. This will enable BWI to achieve sustainable growth and success in the highly competitive Italian hospitality market.
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Case Description
The case follows the progress of a year-long multi-module 'Make a Difference' programme for all 70 employees of Best Western Italy, the European operations and reservations centre for Best Western International, a global hotel group. The programme is designed to help individuals explore their own personal and professional goals, and then to work together to redesign the mission and vision of their organization. The objective is to unlock organizational energy, and to enhance trust and communication across all hierarchical levels. The outcomes included a restructuring of the senior executive level to create a flatter organization with more distributed leadership; improvement in the Great Places to Work Institute Italia ranking; and six company-wide projects initiated by employees. The case describes not only the programme design, but the necessary precursors for successful implementation, including organizational readiness for change and the skills and experience required of the coaches. It poses the question: How can this level of organizational change and renewal be sustained over time? Please visit the dedicated case website http://cases.insead.edu/best-western-italy to access video interviews and other support material.
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