Novotel Final
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Transcript of Novotel Final
Group Members:
Fatima Zehra Hina ShirazShafaq Anwar Shaffia MansurRamla Sadiq Zaakia Sajjad
Ahmed Javaid
Company BackgroundTimelinePre – 19871987-1993Signs of TroubleCorporate Decline1993 and onwardsRecommendationsRoad map to Future
Midscale hotel chain(1967, France)
Part of Accor Group
Innovation 60s- Bedroom Features 80s- Breakfast Buffet 90s- Contemporary Art
www.innovationlabs.com/Novotel_Story.pdf
Unfamiliarity with industry Innovations
Uniformity Pioneer in Hotel Industry Poly-valency Strategy of Out-of-Town Hotels Location Blend of Features
Standardization was a key!
Common worldwide strategy
Economies of scale
Timeline
Slipping Quality Standards Introduction of 95 Bolts
Change in Management Structure
9-layered structure
Head office 9th level President of Accor
8th level President of Novotel
7th level Director of operations
6th level Regional managers
5th level Directeurs delegues
NOVOTEL hotel units
4th level General managers
3rd level Sous-directeurs
2nd level
Heads of depertments
1st level Novotel staff
Change of Industry and Business Context (80s and 90s)
Effect: Change in Basis of competition
Required: Change in both revolutionary and evolutionary developments
Globalization of services: some implications for Theory and Practices by Yair Aharoni, Lilach nachum
INTERNAL
95 Bolts (Rigidity) Staff inflexibility Increased response times No refurbishment Complacency Rapid expansion, slow
innovation Favorable market
conditions No refurbishment Icarus paradox
Durability Inertia
EXTERNAL
Economic Downturn Competition increase Political Instability Switching Customers
Industry Dynamism Imitation
Poor management Overexpansion Inadequate financial controls High costs New competition Unforeseen demand shifts Organizational inertia
1987 – 95 BoltsStifling of Individual
Initiative Micromanagement
State of Inertia
Late 1980s – 9 layered
management structure
1990-1992 –Competition ,
Political Instability Recession
Changing the leadership Redefining strategic focus Improving profitability
Novotel by Calori, Baden-Fuller, Hunt
New Co-presidents▪ Complementary personalities
Re-assembling of core management team
Flatter Organization Structure
Brizon Pelisson Plan – Re-Novotelization
New corporate values Cost and price cutting
Computer analysisPoly-valencyAssessment Centers
• Tighter and Leaner Operational Centre
• Anthropologists consulted• Marguerite and sun relationship
• Redesign of logo • Abolishment of Bolts• War Room (On the road)• Assessment of GM’s • Changes in internal structure • Progres Novotel
Meeting the Future (Les Recontres de Futur)
Cross meetingsBrainstorming sessionsRegular bi-directional meetings
• GM role as of a coach • Increased autonomy & responsibility• Empathy for colleagues’ work • Freedom to innovate • Team work initiated • Inculcation of Intangible resources• Housekeeping project• Marketing initiatives
Revisiting of Customer-focused philosophy
Commitment to change (Leadership) Progress Novotel Empowerment of employees Flatter organization Decision makers were placed as close
as possible to clients
4 building blockshttp://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=C674FB348ABFAB25DC086C916A323486?
contentType=Article&contentId=842437
• Response to Changing Business Contexts
• Continuous Review and Monitoring of Positioning
• Obsolete Capabilities
The Dynamics of International Strategy by Segal-Horn, Faulkner
OBSERVE THE PAST, RESHAPE THE FUTURE
Effective change management program Un-freeze, Change, Re-freeze Recognition program (Reward System) Management By Objectives (MBO) Investment in;
New product development Marketing Acquisition of new customers
Long term success of adaptation: evidence from finland by Erkki laitinen
The Seven-C’s of Change Choosing a team Crafting the vision and the path Connecting organization-wide change Consulting stakeholders Communicating Coping with change Capturing learning
Nextup 2015 Help Novotel understand what the future
will look like in 2015 Produce as many ideas as possible Synthesize the ideas in a new statement
of Novotel Strategy Identify the main axes on which Novotel
should concentrate its innovation efforts
www.innovationlabs.com/Novotel_Story.pdf