The reason for this article is to understand the background and the problems related to organizational tactical change. Have the ability to lead the stakeholders in the introduction of a strategy for change and be able to plan to put into practice models for ensuring ongoing change.
According to Rajagopalan & Spreitzer 1997, strategic change is a difference in the form, quality, or express as time passes in organization's alignment with its exterior environment. Controlling change is all about creating changes in a well planned and orderly movement which is regarded as a crucial role in the organization.
Background of the Organization's Strategic Change
Travelodge Hotel
According to Travelodge 2011, they are considered to be the first budget hotel brand to be introduced in the united kingdom in 1985 and now were able to operate 380 hotels (over 26, 000 rooms) throughout Ireland, Spain and the UK. The chain is under the operation of Dubai International Capital, who purchased the business from Permira in 2006 as explained in Travelodge site, 2011. January 2009 is the particular date when Travelodge UK has been launched. They may have undergone the first retail-style price looking at program. Through this, these were able to measure up the prices of all large UK hotel chains to be sure that they continue to be being the leader on price.
Due to its quick growth, they may be continuously working on their plan of working 70, 000 rooms which is around 1000 hotels by the year 2020. Aside from that, they are looking to be the largest hotel operator when the Olympics seriously 2012. Predicated on previous year's data, six and a half million people dwelt in Travelodge. Due to its campaign in the internet of 19 per nights, 87% of these guests booked from online in line with the data collected. This campaign is applied throughout UK.
LITERATURE REVIEW
1. 1. 1 KURT LEWIN ( Unfreeze, Change, Freeze )
Unfreezing
This stage will involve preparing oneself for a change and ideally making a predicament in which change is necessary. The more immediate the change should be produced, the motivation to make the change is high.
Change
Time is needed and must get to people as this is not an easy time because people are studying the changes and they need to understand the process, In cases like this, support from the management is essential such as coaching, training and expecting mistakes being truly a little bit of the course.
Freezing
This is the final stage of the process which is very relevant as the required change must be accepted and sustained. Minus the freezing stage, there's always a tendency of the people to return back to the things that they are being used to do. It's important to ensure that desired change is continually being performed and not forgotten.
Bullock and Batten, designed change
This model consists of four stages: exploration, planning, action and integration. The event of the exploration is when the management confirms that there is a dependence on change and secure resources needed for it (enotes, 2011). Resources may be labeled into physical or mental like the know-how of the supervisor. Subsequently, planning takes place when the people in charge in decision making make a desired plan accompanied by review and approval. When the execution of the plan takes place, that is when the action level occurs. Lastly, integration starts by the time the action in the required change plan is at motion so when the changes have been from the organization with a certain degree of validation through guidelines and organizational types of procedures.
McKINSEY'S 7S
Strategy - to truly have a competitive gain in your competition, strategies are needed.
Structure - organizational structure and the line of management
Systems - employees' daily activities
Shared Values - organizational principles being executed to employees
Style - the way leaders and managers behave for the realization of its goals.
Staff - employees and their entire capabilities
Skills - the experience and capabilities of the folks in the company
1. 2 RELEVANCE OF CHANGE MODEL
Travelodge Hotel is most beneficial analysed using the McKinsey's 7 S. In cases like this, due to the constant living of the hostels, which obviously offer low prices, Travelodge's aim of expansion annually has been infected. In this matter, they need lessen their cost and expenses to allow them to sustain in your competition regarding price.
The company needs to have a good strategy to maintain their expansion also to have an advantage in the hotel industry, like providing extra special discounts to students and traveler. Discussing the structure, being truly a hierarchical management as all requests are mandated by the top office, they have to see to it that proper communication must be observed from the most notable to the bottom. In this manner, a big change of structure is needed. Furthermore, for the change to work, systems of the business must be studied under consideration without neglecting the central worth of the hotel which is to provide affordable accommodation to everybody. In my own perspective, objectives of the company relating to enlargement and change will be best satisfied if management is supportive enough to motivate people to perform. In putting into action changes, employees and their skills are relevant because without them organized changes in Travelodge Hotel will just be wasted.
The models and techniques are essential for the business because it provides as the rules to achieve the plan.
1. 3 VALUE OF STRATEGIC INTERVENTION
In every planned action that should be materialized, strategic intervention is needed since it offers and reminds individuals a certain desire and direction in between the process. Making us understand on things that we do, why we do it and exactly how, is the key function of involvement. Its value cannot be underestimated because they are the tools in the process of reaching organization's target.
Travelodge process of change within the organization and among individuals, requires human being process intervention, team building consensus and discord, as well as human resource management because they are a huge corporation. Considering the external, organizational and federal government involvement is also necessary because the mark of enlargement requires all those what to operate.
ISSUES RELATING TO THE ORGANIZATION'S STRATEGIC CHANGE
Various issues are to be considered pertaining to the proper change within an organization. It does not matter how we specify this change due to mere undeniable fact that challenge to the business is inescapable: balancing the demands and hopes among the list of stakeholders including customer, employees, management and shareholders. Without balance, an organization risks an troubled work force that may yield declining output.
Needs for Change
Travelodge is experiencing a decrease of sales nowadays because of the emergence of new hotels and hostels in the City Of London. Further offers and offerings about their products and services must be looked at. Among the explanations why people have a tendency to stay in other hotel is because of their services and prices. One more thing to be looked at by the business is the culture of their employees. The company is experiencing a high people turnover for a long time already.
Since people are experiencing various options to choose from in the market regarding accommodations, in addition to the crisis in the economy, Travelodge must have the ability to have an advantage on the market. This thing must get focus by the business to maintain the marketplace share.
Factors that are traveling the necessity for proper change in Travelodge
The present market and the considerable competition in the hotel industry are one of the factors why there's a need for an alteration. Travelodge being a low priced accommodation, still must find ways how to increase market show and be profitable. The upcoming Olympic video games on 2012 is an excellent opportunity for those to increase revenue. Hence, further development of their special offers and offers must be studied and done.
Customer satisfaction is one of the problems nowadays because of low performance of the team that leads the business to modify change in the machine of providing exceptional experience and services to the friends.
Considering the exterior factors, rivals' border in prices and services are one of the factors that impact the operation of Travelodge Hotel since it decreases the guest turnover and therefore affects their financial status necessary to run the business enterprise.
Resource Implications of the business Not Responding to Change
Human Resources which pertain to employees are expected to resist in the process of change because they could feel uncomfortable in doing new things related to what they are used to. Skills Development is necessary for every and every employees working in the hotel industry especially in the facet of customer support. Strict compliance of the standard operating procedure is necessary for guests' satisfaction.
Likewise, physical resources like refurbishments of the building may be difficult to do because it includes lots of time and money to finance the said job. Though it is necessary for Travelodge to keep their rooms and the entire hotel presentable to gain more reviews that are positive from guest, you may still find lots of what to be prioritized and considered especially when it concerns finance. Financial resources is always a concern in putting into action any projects as a result of fact that there is a drop in the income of Travelodge Hotel. Regarding the this, a difficulty in implementing the change is visible.
BE IN A POSITION TO LEAD STAKEHOLDERS IN CREATING A TECHNIQUE FOR CHANGE
MULTIPLE CAUSE DIAGRAM
According to Hopkins 2005, it is a technique that you can use on your own or with teams of people and also called the seafood bone method. To begin with a classification of the performance problem is the essential idea followed by a question of why it is happening until accumulating a picture of varied factors affecting the performance.
Travelodge Hotel is having a reduction in performance of their sales and income because of the massive competition on the market. Their regular customers are finding better options regarding to prices and services. Recent reviews show a great deal guest grievances and guest being dissatisfied. This is because staffs aren't delivering exceptional service to the visitor as well as the appearance of the area itself. Because of crisis fiscally, further trainings to individuals and building improvements have been left out for some time which leads to low performance.
Change Management Strategy with Stakeholders
3. 2. 1 Employees' Development
Employees must undertake training programs to enhance their skills in customer support. This refers to staff from Entry Office Team and Food and Drink Department because they're the one who are directly in touch with the guest. Further trainings and performance appraisal of the employees must be given target by the management because in this manner employees will tend to do their best in imparting good customer service to the guest. Next thing is to make a system which motivates the employees to execute well such as providing extra gratuities at the end of the month. Normally, in the hotel industry, guests are large enough to leave some tips for the staff, in connection with this, Travelodge must have something for the gratuities to be divided equally amongst the employees from all departments.
3. 2. 2 Promotions
As Travelodge Hotel is accepting bookings online like all other hotels, promotions and offers must be offered as well in their site to produce people's knowing of what is on offer during the season.
3. 2. 3 Customers' Feedback
External stakeholders are relevant in creating a change. By requesting reviews from them regarding the services during their stay will help the hotel to build up the areas which they are low in performance. Reviews regarding the hotel give a lead for the potential guest to produce a choice. Nonetheless, Travelodge must see to it that visitor are satisfied to allow them to leave a great rate and review.
Evaluation of the machine Used
Using the Multiple Cause Diagram is effective because in this way, the management can determine the exact reason for the problem that should be change. It really is an easy to make use of tool for Travelodge Hotel to be performed because responding to to the 'why' question is all it requires. For instance, the cause of a drop in earnings is the large competition on the market, hence, followed by moving their regular guest to other hotels because of poor services. In this manner, the management of Travelodge can identify the factors which cause the key problem. And through this, they can simply formulate a strategy which will help them overcome today's status in their business.
Management of Amount of resistance Strategies
3. 4. 1 Start Communication
This must be achieved all throughout the process for the visitors to fully understand the goal of the organized change, and the opportunities that is forward if change will be integrated. Along the way of change exchange of ideas is essential for the visitors to feel that their participation is important which somehow leads to motivation in responding positively to change.
Authority Process
This is essential in order to control people's behaviour for the benefit for the applied change. Management must direct people that certain change must be adapted plus they need to take part on it.
Evaluation
In the applied change, an evaluation is necessary for the management to learn whether people are responding positively and if the goals are halfway to achieve. Knowing the reason for resistance must also be taken into consideration so that proper ways to take care of the problem will be exercised.
BE IN A POSITION TO Use MODELS FOR ENSURING ONGOING CHANGE
4. 1 ADKAR Model
In my very own understanding, ADKAR model is suitable to use for Travelodge Hotel as it delivers awareness for the necessary changes, prefer to take part and support the change, knowledge on how to change, potential to implement the organized change and encouragement to support the change within an organization.
Implementation of the Model for Change
4. 2. 1 Awareness
Travelodge Hotel management must ensure that people worried know about the planned change before employing it so as to avoid resistance plus more chaos in the business. Because strict compliance of standard operation procedures are would have to be implemented which have been neglected by the majority of individuals, management must announce appropriately its benefits and drawbacks.
Desire
To instil this to the employees, they need to be aware to begin the need why change will need to have to happen. Then, in informing individuals who policies and procedures must be improved pertaining to customer support efficiency, convincing them to assume that the hotel is not doing well in terms of income which somehow influences their benefits can create a desire to have them to participate in the procedure.
4. 2. 3 Knowledge
This employs having the desire of taking part in the process. The management is therefore required to elaborate things that have to be done in the implementation of the planned change. For example, in order to truly have a higher rate performance in the reviews, receptionist must succeed in dealing with the customer's complaint and in reaching that, further trainings are needed.
Ability
In this area, the Professionals of Travelodge Hotel must provide instruction and mentoring to the people. Regarding Food and Drink department, Food and Drink Managers must definitely provide hands-on training to the personnel because this is where he understands whether staffs are carrying out based on the standard of the hotel.
Reinforcement
This is where in fact the management will need focus for the change to stay in place. This can be done by considering evaluations and proper monitoring of the employees performance through feedback from Travelodge friends or face to face observation.
Measures to Screen Progress
Progress of the change can be monitored through progressive reviews during conferences and appointment. Wherein every individual will have an opportunity to speak out their ideas and observation. Similarly, goal- based evaluation is also helpful because that's where the management can assess if the goal is being reached already or still needs more hard work for this to be understood. Similarly, regular records regarding customers' feedbacks and employees' performance must also be looked at for the management to have necessary procedures if something from the context is going on.
CONCLUSION
In my very own understanding, ADKAR model would work to use in employing the change for Travelodge because it emphasizes to individuals that happen to be the primary resources in the organization. By using this model, determining the specific area to improve and also to maintain is simple simply because this can be a step-by-step process.
Travelodge current situation is travelling the business to strive more in formulating ideas on how to boost their services especially in client satisfaction. Hence, by implementing the planned strategies, it'll somehow supply the organization an edge to compete on the market.
