Radisson Red, has adopted ‘Total Football’ strategy, which involves ‘everybody can do everything’ - a bellboy can double up a cashier; a cashier can assist a guest to take her luggage up to her room & fill her up on the latest hot spots in town or the steward can act as a greeter.
Has this differentiation strategy born fruits? It seems so. It has improved ‘engagement’ of its employee - making them feel more empowered & engaged with their job. When empowered & engaged employees serve guest they deliver memorable service to their guest.
Result: Improvement in employee satisfaction; fall in attrition rate of employees; improvement in guest satisfaction leading to creation of better Buzz for the hotel. All this is achieved by having lesser number of staff to serve guests.
Bottom Line: The Gross Operating Profit (GOP) has seen expansion.
Business lesson for us:
1. In a hyper-competitive era, companies can gain competitive advantage by changing the ‘Rules of the game’ of their industry on determinant attributes.
2. To change the 'rules of the game', companies can get ideas from outside their industry. But they cannot implement them blindly – it has to be intelligently adapted to their industry.
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In this series, Rajesh Srivastava, Business Strategist and Visiting Faculty at IIM Indore gives you a regular dose of strategy case studies to help you think and keep you one step ahead as a professional as compared to your peers. Rajesh is an alumnus of IIM Bangalore and IIT Kanpur and has over 2 decades of experience in the FMCG industry. All previous Strategy with RS posts can be found here
Comments
ramji yahoo
contribute to society thru management audits, cost audits
very true, in lot of western firms, chartered accountants are good as HR heads, mechanical engineers are good as investment bankers, lot of chemistry graduates are good as bank managers, insurance officials but lot of Indian firms need to change their HR practices, job rotations. Indian companies are reluctant to change the rules, even recruiting from different industry they think 1000 times.
21 Sep 2015, 02.59 PM