The importance of change management in hotel operations
Why is change so hard?
Change is often challenging, and many people resist it because maintaining the status quo feels more comfortable. However, to manage a hotel with performance excellence, embracing change is essential. Whether it involves technology, processes or personnel, effectively managing change is crucial for success.
Recently, Dragonfly’s Founder & CEO, Caryl Helsel, checked into a hotel she had never visited before, only to find its employees grappling with the aftermath of a recent Property Management System (PMS) change completed just two days earlier. The transition proved to be a nightmare for both staff and guests. At check-in, numerous system integrations were malfunctioning, including access to the parking garage. Guests were being assigned into the same rooms, and the front desk had no explanation. The key card system was also down at the hotel.
The situation was equally painful at check-out. The entire front office team on duty that Saturday had not worked since the PMS change and was clearly unprepared, having only received 30 minutes of video training. They struggled to check guests out efficiently and were unable to address billing inquiries. It was evident that the hotel had failed to implement any change or project management strategies for this busy downtown property, resulting in a severely compromised experience for both its employees and guests.
What is change management for hotels?
Change management focuses on managing changes within an organization. More specifically, in hotels, it can include a myriad of aspects such as the implementation and adoption of a new technology, operational changes such as adding a new product, amenity, or service, or restructuring teams and cultural changes. Implementing effective change management strategies can ultimately help hotels remove obstacles, improve processes and efficiencies, and enhance the overall guest and employee experience. All of this is designed to create a more productive and effective work environment.
Change management is a powerful tool that can significantly help hotels improve employee retention, improve guest experience, and streamline processes. In today’s competitive market, particularly hospitality, implementing and adapting to change is critical, but can be challenging. Effective change management requires commitment, strategic planning, project management, and dedicated resources. Collectively, these elements empower hotels to achieve ongoing benefits, improve guest experiences, and increase profitability.
The impact change has on its employees
Employee retention and turnover is a challenge that is faced across many industries, more so in hospitality. The benefits of positively implementing a successful change management philosophy can help instill a positive work environment, enhance overall job satisfaction, and boost employee morale. If not done correctly, it can produce the opposite results. According to McKinsey & Company, “High levels of employee engagement can cut staff turnover by 87% and improve performance by 20%.” By involving employees in the change process, hotels can empower their teams, reduce turnover, and retain valuable talent.
“High levels of employee engagement can cut staff turnover by 87% and improve performance by 20%.”
Key strategies for process improvement initiatives
Change management plays a critical role in driving process improvements in hotels. It requires a strategic approach and commitment. Below are three key pillars to help drive process improvement initiatives.
Leadership needs to…
champion change initiatives
provide clear direction and resource commitment
instill positivity and develop buy-in from its employees to drive the initiative forward.
Strategic planning requires that…
the timeline should be considered carefully to have the least impact on employees and guests.
the project team needs to create a strategic and comprehensive communication plan.
the project manager needs to develop a detailed project plan, clearly identifying the timeline and individual accountability for each action.
the project leader needs to develop and communicate the short and long-term goals so that everyone understands the why behind the change.
the critical path must be identified, documented, and communicated effectively.
Resources and training should…
be dedicated to the change, and a champion should be assigned at the property level to ensure adoption and collaboration among the team.
allocate ample time for training and schedule for each impacted employee and department.
ensure proper capacity. If the on-property or corporate teams do not have capacity, hotels should consider engaging a third-party resource or team to manage the project.
How to overcome obstacles with successful change management
Best-selling author Brian Strobel once said, “Managing change is hard. Leading change is even harder.” Overcoming obstacles involves strong leadership and adoption at every level.
“Managing change is hard. Leading change is even harder.”
However, change management can be difficult to implement, especially via a top-down approach. Leaders of change must be collaborative. It’s important to allow open communication, continuously solicit feedback from employees, and transparently address concerns. Whether implementing a new technology, a new process or a new culture, hotels can mitigate resistance to change and build trust with their employees and guests though a synergistic approach.
Successfully mastering change management
Change management is a journey for most hotels. Change of any type requires building trust, opening communication, and removing obstacles and silos to promote accountability and commitment. While change is clearly not easy, if facilitated properly, it can be rewarding. By employing appropriate change management principles, adoption of the change increases dramatically.
It’s important to successfully integrate change management into your operational DNA. As hotels navigate the increasing pressure of the complex labor market, it becomes increasingly important to become a master in change management to ensure the long-term success of the employees, operations, and guest experience.
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Contact Dragonfly Strategists today to learn how to effectively implement change management techniques.