Serviceinnovation

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Vol. 3, No. 7, June 2011

Cornell Hospitality Service Innovation Roundtable

Cornell Hospitality Roundtable Proceedings

Improving the Guest Experience through Service Innovation:

Ideas and Principles for the Hospitality Industry

by Cathy A. Enz, Ph.D.

www.chr.cornell.edu

Cornell Hospitality ReportVol. 11, No. 11, May 2011

Customer Loyalty:

A New Look at the Benefits of Improving Segmentation Efforts with Rewards Programs

by Clay Voorhees, Ph.D., Michael McCall, Ph.D., and Roger Calantone, Ph.D.

Advisory Board

The Robert A. and Jan M. Beck Center at Cornell University

Cornell Hospitality Roundtable Proceedings, Vol. 3 No. 7 (June 2011)

© 2011 Cornell University

Cornell Hospitality Research Summit Proceedings is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University

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Stephen C. Brandman, Co-Owner, Thompson Hotels, Inc.Raj Chandnani, Vice President, Director of Strategy, WATGBenjamin J. “Patrick” Denihan, Chief Executive Officer,

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Cathy A. enz, Ph.D., is a professor of strategy and the Louis G. Schaeneman, Jr. Professor of Innovation and Dynamic Management at the Cornell University School of Hotel Administration ([email protected]). She chaired the 2011 Service Innovation Roundtable described in these proceedings. Her research focuses on hospitality strategy, including innovation, competitive dynamics, pricing strategy, and change management. Among her recent publications are the best-practices series of case studies on innovators in the hospitality industry, with four coauthors, articles in the Cornell Hospitality Quarterly, and two new books The Cornell School of Hotel Administration Handbook of Applied Hospitality Strategy and Hospitality Strategic Management: Concepts and Cases, 2nd edition. The assistance of the following Cornell faculty members in preparing this report is appreciated: Professor Gary Thompson, Professor Rohit Verma, executive director of the Center for Hospitality Research, and Associate Professor Kate Walsh, Fred G. Peelen Professor of Hospitality Global Strategy.

ImprovingtheGuestExperiencethroughServiceInnovation:

byCathyA.Enz

CornellHospitalityRoundtableProceedings•June2011•www.chr.cornell.edu 5

exeCuTive SuMMAry

The 2011 Service Innovation Roundtable examined both the mechanisms for serviceinnovationandtheinnovationsthemselves.Theprimaryfocusoftheseinnovationswasimproving the guest experience, which includes interaction with employees andaddressing technical issues. Numerous lodging and hospitality firms are focusing

intentionallyoninnovationasawaytoimproveguestsatisfactionand,asaresult,boostrevenuesandprofits.Whiletheactualmeasurementofserviceinnovationscanbedifficult,mostparticipantspointedtosuchmetricsasimprovedcustomersatisfaction,greaterparticipationinloyaltyprograms,andcostsavingsfrommoreefficiencyintheguestserviceprocess,sinceguestsusuallyappreciateservicethatisasdirectandsimpleaspossible.ApresentationbyMarriottInternational,forinstance,explainedhowtheideaofimprovingtheguestarrivalexperienceinthelobbyledtothedevelopmentofthe“greatroom”concept,whichincludesadditional(andmorespeedy)foodandbeverageservice.InnovationatWyndhamincludesitsmanysustainabilityinitiatives.Throughoutanyinnovation,changeagentswillconfrontdifferenttypesofsupportandresistance,andmusthaveastrategyforaddressingtheconcernsofeachperson.Intheend,innovationmustbeasdata-drivenaspossible,whetherthatmeansaskingguests and employees for innovative ideas or finding ways to measure service changes as they areinitiated.


Cornell hoSpiTAliTy roundTAble proCeedingS

Innovation is theprocessofdevelopingnewideasorprocesses,or takingexisting ideasandprocessesinnewdirections.Aninnovativeideaorprocessdoesnothavetoinvolveaboltfromtheblue,butitalmostalwaysinvolvesatleastatwistoncurrentoperations.MeetingatCornell’sSchoolofHotelInnovation,agroupoftwodozenserviceresearchersandpractitionersgathered

inMay2011 toexamine the latest concepts in service,withagoalof sharing innovative ideasandprocesses,andexpandingacultureofinnovationinthehospitalityindustry.

ImprovingtheGuestExperiencethroughServiceInnovation:

byCathyA.Enz


Service innovation is the introduction of new or novelideas that focus on services that provide new waysof delivering a benefit, new service concepts, or newservice business models through continuous operationalimprovement, technology, investment in employeeperformance, or management of the customer experience.

—Developed during the 2008 Service Innovation RoundtableCornell University School of Hotel Administration


Theserviceinnovationroundtablebeganbyusingthedefinitionofserviceinnovation(notedabove)developedduringthefirstroundtablein2008.Withthisdefinitionasastartingpoint,roundtableparticipantslistedareaswheretheyhaveseenserviceinnovationsinthepasttwoyears.BarbaraTalbott,founderandCEO,GlenLarkinAdvisors,focusedonthevalueofensuringhighqualitycustomerser-vice.Shehighlightedtheprinciplethatamajorityofguestsarewillingtopayforupgradedservice,suchaswhenairlinessellaccesstoelitestatus.AsanexampleshepointedtotheAmericanAirlinesVIPClub,whichprovidestheserviceofintegratingtheelementsofgettingtoandthroughtheairportwithVIPstatus.

K.S.Srinivasan,vicepresident,humanresourcesandlearninganddevelopment,TajHotels,Resorts,andPalaces,sharedhiscompany’sfocusonenhancingtheguestexperi-enceinitsheritageproperties.TajhassetagoalofrecreatingthehistoricpalaceexperienceforthesepropertieswhichTajmanages.Startingwiththegreetingattheairport,thisgoalisreflectedinvintagecars,staffdress,andpalaceoperations,includingcuisineandcutlery.

ForWyndhamWorldwide,vicepresidentFaithTaylorexplainedthepushtowardagreenculture,involvingeduca-tion,training,recognition,andfun.Thetrainingprocess,forinstance,involvesinteractivetrainingmodulesthatestablishacommonlanguageforsustainability.Shesaidthatembed-dingagreenculturehasalteredenergyuse,amongothermeasures.SheexpandedontheWyndhamGreenprograminalaterpresentation,asdiscussedbelow.

SeanO’Kane,globalcommercialdirector,SchneiderElectric,pickeduponthethemeofenergyinnovation.Hepointedtothelackofunderstandingofwhatenergyreduc-tionisandisnot.HeagreedwithTaylor’sassertionregard-ingtheimportanceofeducation,particularlyregardingtheimportanceofautomatedsystems,whichcansave30to50percentofenergyuse.Schneiderisalsooffering“MyEnergyUniversity,”whichcomprises50onlinecoursestohelppeo-pleunderstandenergyissuesinacompany-andproduct-neutralway.O’Kane’squestionforthehospitalityindustry:Whenwillseriousenergyreductioneffortsbemade?

JayColdren,seniordirector,creativeprojects,MarriottInternational,discussedhisfirm’sglobalserviceinitiative,whichemphasizesanenvironmentwhereservicecanflour-ish,encouraging“serviceangels,”ashecalledthem.Onekeyinsighthereisthatinnovationrequiresinnovators,andonewaytoencourageinnovatorsandserviceangelsistocreatetheproperenvironment,includinginfrastructure,enablers,andculture.OtherparticipantsfromMarriottexpandedonthefirm’sinnovationdriveinalaterpresentation.

Webanalyticsareasourceofcreativeideas,accordingtoKellyMcGuire,executivedirector,globalhospitalityandtravelpractice,SAS.McGuirepointedtotechnologyasa

criticalsupportforinnovationefforts,includingdata-drivenideas,andseveralotherroundtableparticipantsagreedwiththatassertion.

MarkCarrier,seniorvicepresidentofB.F.SaulCompa-ny,whochairstheownersgroupforInterContinentalHotelsGroup,focusedonIHG’scultureoffranchiseoperationsinwhichparticipantsareworkingtodevelopacommoncultureacrossfranchiseesofcelebratingservice.Hepointstoasignalaccomplishmentofinvolving3,000hotelstopar-ticipateintheserviceinitiatives.Hisownfirm’sinnovationeffortsincludere-evaluatingdailyoperationsateverylevel,undertherubric:“Beremarkable—thinkbig.”ThissloganbothsymbolizesandreinforcesB.F.Saul’sinnovationefforts.

ForMorrisSim,CEOandco-founderofCircosBrandKarma,web-baseddatashouldbeanalyzedfromthereader’spointofview,anapproachthatisthereverseoftheusualwriter-focusedapproach.Sim’sgoalinthis“archeological”approachistoconverttheweb’sdiffuseinformationintoleadingindicatorsofconsumertrends.AsdescribedinaCHRReportoninnovativefirms,BrandKarmaseekstomakeforwardlookingdataavailable. 1AsSimputsit,every

1See:JudySiguaw,CathyA.Enz,SherylE.Kimes,RohitVerma,andKateWalsh,“CasesinInnovativePracticesinHospitalityandRelatedSer-vices:Set1,”Cornell Hospitality Reports,Vol.9No.17(2009),pp.11–13;CornellCenterforHospitalityResearch.

Many innovations focused directly on improving the guest

experience.

http://www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-15154.html


thatmodelscustomers’actions(asdescribedlaterinmoredetail).

ThepresidentofCoyleHospitalityGroup,JimCoyle,isfocusedonhowtouseresourcestobringservicestocustom-ersatthelowestpossiblecost.Hisfirm’sgrowthhascalledforanewbusinessmodel,ashisfirmhasdoubledinsizeinthepastyear.Hisgoalistotrain6,000people.Hebelievesthatifyoulistentoyourcustomers,theywillsignalneededinnovations.

NeilKataria,chairmanandCEOofNewBrandAnalyt-ics,addresseddataminingofsocialmediaandotherwebpages.GiventhatTwitterhassome200millionhitsperday,it’simportantforeachcompanytodeterminewheresocialmediafitintotheirbusiness.Sinceonesizedoesnotfitall,eachfirmhastodevelopitsownstrategyforsocialmedia.

AlthoughlodgingindustryleadersagreedthattheconceptforTripTVisagoodone,presidentandCEOKulinStrimbupointedoutthechallengeofpromotinganinnova-tivestart-upthatinvolvesgettingthebuy-inofcustomerswithdiverseandoverlappingbudgetconstraints.Additionalchallengesinvolvehelpingthecustomermovingbeyondanarrowviewofvideoplayproductionanddevelopingavi-ablerevenuemodelforanewventure.Asoneexample,Star-wood’sHawaiipropertiesareinvolvedinTripTVproduction.2

JumeirahisextendingitsinnovativeArtist-in-Residenceprogram,whichhasbroughtartintopublicspaces,ratherthanconfiningartinmuseumsorprivatehomes.Thekeyis-sueishowtointegratetheartsandcultureofhotellocations,saidKatherineGass,curatorattheJumeirahEssexHouseinNewYork.3Travelersareinterestedinthelocationsthattheyvisit,withartandculturebeingasubstantialpieceofthattouristinterest.Hotelsareapartofthecommunitywheretheyarelocated,anditmakessenseforahoteltosupporttheartandcultureofitscommunity.Whilethereisnowaytomeasuretheeffectsofthisprogram,it’sclearthatguestsandlocalresidentsappreciateit.

Fairmonthasbeenreengineeringitsguestservicespro-cessestofocusmoredirectlyonguestpreferences,accordingtoAndreaTorrance,vicepresident,rooms,FairmontHotelsandResorts.Thisisnotrevolutionary,shepointsout.Insteadtheyhavereinventedandputinplacewhattheycall“serviceessentials,”whichremovesredtapeandgivesemployeesthepowertoactasneeded,especiallygiventhatdifferenttypes

2See:CathyA.Enz,RohitVerma,KateWalsh,SherylE.Kimes,andJudySiguaw,“CasesinInnovativePracticesinHospitalityandRelatedServices:Set3,”Cornell Hospitality Reports,Vol.10,No.10(2010),pp.23–24;Cor-nellCenterforHospitalityResearch.

3See:CathyA.Enz,RohitVerma,KateWalsh,SherylE.Kimes,andJudySiguaw,“CasesinInnovativePracticesinHospitalityandRelatedServices:Set3,”Cornell Hospitality Reports, Vol.10,No.10(2010),pp.13–15;CornellCenterforHospitalityResearch.

dayisan“electionday,”whencustomersdecidewhatbrandtheywillpatronize.

ThecaseofaLasVegashotelofferedlessonsininnova-tion,asrelatedbyMikeBenore,director,DeloitteConsult-ing.Thegameplanwastousetechnologytofocusontheguestexperiencetodifferentiatethe3,000-roomhotelfromitscompetitors.Thehotelusedanalyticstounderstandguestpreferencesandtailoroffers.Thenituseddatawarehous-ingtodevelopadatabaseofthoseguestpreferencesthatcouldoperatenearlyinrealtime,alongwithananalytical

“map”ofguestinformation.Theideaistoprovideadifferentplatformfortheguestroomexperience,includingtelevi-sionsforguestinteraction.Alsoinvisualformisthe“map,”whichgivesstaffadepictionofguestpreferences.AlthoughBenoreconcludedthatthisisanexcellentoverallstrategy,hesuggeststhatahotelnotattempttodoallthesethingsatonce,duetotheintensityandexpenseofthetechnologyandtraininginvolved.

StacyOliver,learningconsultant,FourSeasonsHotelsandResorts,alsodiscussedinnovationtoimprovetheguestexperience,withaparticularfocusonemployeeempow-erment,sincetheemployeesknowtheguestwell.This

“disciplineofinnovation”createsaframeworkandprocesstoenableemployees’innovationinawaythatimprovesprofit.

ForSouthwestAirlines,currentinnovationcentersonintegratingterabytesofcustomerloyaltyprogramdata,accordingtoleadresearcherDougLawson.Thischalleng-ingprocesswouldresultinaforecastofthewishesandactionsofsome340,000customerseachday.Onewaytoaddressthisimmenseanalyticalissueistocreateasurrogate

Successful innovation is data-driven and also requires considerable tenacity.




oftravelershavedifferentneeds.Itisnotuncommonforserviceinnovationtobeevolutionarygiventhatitisoftenincrementalandprocessenhancingratherthanradicalanddisruptive.

ConfrontingtheMatrixCeciliaLewis,vicepresidentofMarriottInternational,joinedMatthewvonErtfelda,vicepresident,creativestrategy,insight,strategyandinnovationteam,toofferade-tailedexplanationofthecompany’sinnovationandserviceinitiative.ReflectingJayColdren’scommentthatinnovationrequiresinnovators,vonErtfeldasuggestedmechanismstodevelopinnovators,includinganonlineplatform,“didyou-thinkofthis.com.”Thiswebsitefocusesassociatesoncollabo-rationforinnovation.Theinnovationtoolsincludeguest-facingwebsites,emphasizingtheimportanceofbringingguestsintotheprocessearlyonandhelpingassociatesfocusonthequestionofhowtheguestcanbebestserved.

LewisaddedthatMarriottwantedtomoveinnovationfaster,butthefirm’smatrixof19brandsandfourregionalofficesrequiredfocusandalignment.Processinnovationhelpedprovidethatfocus.Asanexample,Marriottwantedtore-inventitslobbyspacetoprovideabetteroverallguestexperience.Thetimefromideatoimplementationwouldtypicallybethreeyears,butthefocusedprocessinnovationcutthattimeto18months.Onequestionthatsheposestothelodgingindustryasawholeishowtobreakthroughtotakeadvantageoftheindustry’sinnovativeefforts.

Tobesure,innovationisamessyprocess,Lewispointedout,andthequestionishowtoharnessthatenergyandmakeitwork.Althoughthecompanycouldseemanyareasforinnovation,theyfocusedontheguest,beginningbyde-constructingtheguestexperience.Thisdrewtheirattentiontothepublicspace.Asaresult,thelobbyreinventionwasin-tendedtoimprovetheatmosphereandenvironmentandtomakethespacelooklesslikeatransitpoint.Bringingguestsintotheprocessprovedtobeacriticalsourceofideas,andthefirm’sconsultantsalsobenchmarkedcompetitors’spaces.

Theresultwastheconceptofagreatroomthatwasdesignedaroundtheneedsofguestsandassociates.Thenewconceptwentbeyondseatingtoincludemusicandaddi-tionalfoodservice,alongwithadditionaltraininginthenewlobbyactivationinitiative.Theoverallgoalwastocreateabetterserviceenvironmentandtodeliverhighervaluetothecustomer.

Theprocessbeganwithsynthesisofinformationandthenwenttoideation,followedbytestingtheideas.Tomovetheprocessalongitwasessentialtooverrideorevensuspendthenegativeorblockingcommentsofstakehold-erstoallowanalysisofwhatactuallyishappening.Lewissummarizedtheprocessasonedrivenbyplanning,startingwithresearchtogetcustomerinsights;conceptdevelopment

andtesting;andthenbuildingouttheresultingstructures.“Timeisoftheessence,”Lewisconcluded.“Ifyou’regoingtofail,thenfailfast.”

Data-drivenInnovationMarkLomanno,presidentofSTR,andDougLawson,leadresearcher,SouthwestAirlines,offeredtwoperspectivesonapplyingdatatoinnovation.Lomannofocusedonthecontinuingrelationshipofthelodgingindustrytoonlinetravelagencies(OTAs).STRhasdevelopeddataonthecostsofusingOTAs,forinstance,butdatadonotsupportthewaychainsareusingOTAs.OneissuehereisthathotelsdonotknowthetruecustomercostwhenguestsbuythroughOTAs.Theuseofsocialmediaallowsdatamining,especiallysincecustomersgenerallywon’tfilloutsurveys.However,datafromsocialmediamustbeinterpretedandlinkedtothedecisionmakers.Theinterpretationprocessincludesfilteringtheideasaccordingtoqualityofdata,particularlyaggregateddata.

LawsonexplainedSouthwestAirlines’researchoncustomerbehavioratthecheck-inandatthegate.Usingcomputersimulations,theairlinehasexaminedsuchissuesashowlongittakestocheckinandgettothegate,andhowarrivalgateassignmentsaffecttheprocess.StampingthedateonserviceexchangeshasallowedSouthwesttodevelopuniquebehavioralmodels.

SustainabilityinServiceExcellenceUndertheslogan“OneGoal.OneTeam.OneEarth”WyndhamWorldwidehasworkedtoinstillits“WyndhamGreen”sustainabilityprogramchain-wide,accordingto

Innovators must be ready to address objections and use

different forms of leadership at different points in the

innovation process.


fordripirrigationtoreducewaterconsumptionandtofilterthewaterasitreturnstotheaquifer.SitesustainabilityisalsopartoftheLEEDprogramthoughtheU.S.GreenBuildingCouncil.Morethan300Wyndhamsitesworldwidepartici-pateinbuildingcertificationprograms.

SurveyingInnovativeIdeasandIssuesTheserviceinnovationworkshopwasframedbyanin-novationsurveywhichparticipantsfilledoutbeforesittingdownfortheirdiscussions.Inthefirstquestion,theywereaskedtodistinguishserviceinnovationfromothertypesofinnovation.Theoverridingconcernunderlyingservicein-novationwasthecustomer—improvingtheguestexperience,ratherthanfocusingon,say,operationalefficiency.Indeed,oneparticipantwarnedthatserviceinnovationneedstobedrivenbytheemotionalexperienceofferedbyguestsand,further,thatfocusingonefficiencyorproductivitymaycauseanyinnovationstomisstheirtargetoftheguestexperience.Beyondthisfactor,theparticipantsofferedthefollowinginsightsaboutserviceinnovation:• Innovationsinservicemostlyhappeninanorganic

way,ratherthanfollowingasetprocessorapre-definedapproach.

• Successinserviceinnovationrequiresanintegrated,multi-facetedapproach.

• Serviceinnovationrequiresaculturethatsystematicallyenablesemployeestodelightfullysurprisecustomers.

• Serviceinnovationisdifficulttoinnovatebecauseitdependssoheavilyonpeoplefordelivery.

RecentServiceInnovationsTherecentserviceinnovationscitedbypanelmemberslikewisetargetwaystoimprovetheguestexperience.Thisincludedexpresslydevelopingwaystoimprovecommunication,boostefficiency,andmakethearrivalprocessmoreappropriate.Indeed,severalcompanieswerefocusingonimprovinginteractionsatthefrontdesk.Thisincludesawarmwelcome,quicklyaddressinganyproblems,andcontinuingwithongoingrecognition.Inadditiontocompany-specificinnovations,participantsmentionedthefollowinginitiatives:• Applyinghospitalityanalyticsthattargetguestsbased

ontheirspendingandamenityuseprofiles.

• Encouragingassociates’behavioralchangethroughrecognitionprograms.

• Improvingtheinteractionbetweenguestsandassoci-atessothatguestscanmoreeasilyexpresstheirneeds.

FaithTaylor,vicepresidentsustainabilityandinnovation,WyndhamWorldwide.TaylorandCHRExecutiveDirectorRohitVermausedtheWyndhamexperienceasoneexampleofcompaniesthathaveconnectedsustainabilitywithserviceinnovation.Theypointedoutthatsustainabilityisaglobalmegatrendforthiscentury,similartoqualityassuranceinthe1980sandtechnologyinthe1990s.

TaylorandVermaoutlinedsomeofthehotelbestprac-ticesthatWyndhamhasinitiatedaspartofitsWyndhamGreenprogram.Forinstance,theSuper8inMonroe,Wis-consin,mettherequirementsforthestate’s“TravelGreen”distinction.OnewaythatWyndhamencouragesitsassoci-atestomaintainsustainablepracticesiswithunexpectedrecognitionthroughits“caughtgreenhanded”program.Whenanotheremployeenoticesoneoftheirpeersrecyclingorfollowinganothergreenpractice,theycanbecitedfor

“goinggreen.”TheWyndhamGreenprogramalsoincludesasmuch

useoftechnologyaspossibletoreplacepaperthroughouttheguest-stayprocess,forexamplewithacknowledgmentsandfolios.AirprocessingtechnologyallowedWyndhamtooffer“clearair”roomsinbothguestroomsandfunctionspacesinitsWyndhamHotelsandResortschain.Likewise,Wyndhamworkswithitssuppliersformaximumsustain-ability.Themostremarkableexampleofthiswasitsassocia-tionwithCintastocreateanewsetofuniformstailoredfromfabricmadeofrecycledbeveragecontainers,Taylorsaid.

Sitesustainabilityisalsoincludedinthisprogram,no-tablywithaeratedwastewatertreatmentthatusesultravioletlighttoremovebacteriaandby-productstypicalofsewage.Thetreatedwateriseffectivelygraywaterthatcanbeused

Several companies maintained a separate department or office responsible for promoting innovation. Other companies instilled innovation throughout the organization.


SkunkWorks?PickingupontheideainitiatedduringWorldWarIIbyLockheedMartinthatcompaniesneeda“skunkworks”ofinnovatorstocreateideas,thesurveyaskedwhetherpartici-patingcompanieshaveaseparatedepartmenttopromotein-novation.4Theresponsewasdivided,withsomecompaniesstatingthatinnovationisendemicintheircorporateculture,whileothershadaseparatedepartmentchargedwithdevel-opingquestionsandanswers.Onerespondentpointedoutthatnewemployeesoftenbringvaluableideaswiththem.

Todevelopandcaptureinnovativeideasfromtheiras-sociates,somecompanieshaveanofficialwebportal,othersconvenebrainstormingmeetings,andsomespecificallysetideagenerationasanemployeegoal.Similarly,thecompa-niesweredividedontheextenttowhichtheyrewardassoci-atesforproposinginnovations.Whilesomeoffernospecificrewards,othersgoalloutwithbothintangiblerewardsandtangiblerewards,suchasgiftcertificatesormonetaryawards.

Measuringtheeffortputintoinnovationisarealchal-lengeforallfirms.Mostdonothaveawaytomeasurein-novation,whilesomeassessaflat“innovationtax”ormakemeasurementsepisodically.

InnovationsBeyondServiceAlthoughtheroundtablefocusedonserviceinnovation,thequestionnairegaveparticipantstheopportunitytosharecompanyinnovationsbeyondserviceandoperations.Manyoftheproductrelatedinnovationsinvolvedoftheuseofin-formationtechnology.Examplesincludethefollowing:Useofsocialmedia,addingtelepresence,newgreenuniforms,updatingdatabaseplatforms;creatinganinteractivewebbasedplatform,andenhancingthewebsite.

Processinnovationsinvolveimprovingworkflow,infor-mationflow,ordeliverymethods.Newprocessesmentionedbytheparticipantsincludedsuchinitiativesasthefollowing:• Buildingawebsitetoconnectproductionpartnerswith

thecontentlibraryforeasyupload,categorization,anddeliverytocustomers;

• Morelobbyself-serviceandahailingsystem;

• Notificationandworkflowfeaturessothattheanalysiscanbebetterincorporatedoperationally;

• Industryprocessmodelsforgamingandhospitality;

• Receivingpaystubselectronicallyratherthanonpaper(inthemail);

• Turningtheentireworkforceintoahelpdesk;and

• Distancelearning.

4See:“SkunkWorks:TheOriginStory,”www.lockheedmartin.com/aero-nautics/skunkworks/.SkunkWorksisatrademarkofLockheedMartin.

Marketinginnovations,whichincludeimprovementsinproductdesignorpackaging,promotion,orpricing,spannedawiderange:• Alternativemarketingchannelsforvideodistribution;• Bettermatchingofrewardmileswithrevenuemiles;

• DestinationrestaurantF&Bmarketing;

• Frameworksandtrainingmodulestohelpsalesandmarketingbetterprotectbrandreputation,aswellasdriveconversion;

• UsingonlineiPadandiPhoneappstodelivermarketingmessages;

• Improvedtradeshowattendanceandmaximizingop-portunitiestomeetface-to-face;and

• Newageadvertisingmethodologytoconveythebrandpromisedeliverythroughproductandserviceofferings.

SimulatingChangeTheroundtable’sfinalsessionfocusedonmechanismsforandroadblockstointroducinginnovations,bydiscussinglessonsfromthehospitalitychangesimulationdesignedbyroundtableorganizerCathyEnz(availablethrougheCornell).5Participantsplayedtheroleofchangespecialistsinthisinteractiveonlinesimulation,withthegoalofgettingthemanagementlevelpersonnelofasimulatedhoteltoadoptachange,whiletakingintoconsiderationtheparticu-larcultureandresistanceofhotelpersonnel.

Thepurposeoftheexperiencewas:

5www.eCornell.com.

Technology is a large factor in most companies’ service

innovation efforts.

http://www.lockheedmartin.com/aeronautics/skunkworks/

http://www.lockheedmartin.com/aeronautics/skunkworks/


• Changeispolitical,and

• Changeispersonal.

Participantswereexposedtodifferenttypesofresistorsinthesimulationanddiscoveredhowtousedifferentstrate-giesdependingonwhoandwheretheywereinthechangeprocess.Thediscussioncenteredaroundthechallengesinintroducingchangeandhowthelearningprinciplesofthesimulationweresimilartothoselearnedwhentryingtointroducechange.

Threelessonsregardingchangearethefollowing:1. Gettingachangeadopted,evenwhenithasobvious

advantages,isdifficult.

2. Itisimportanttoknowsomethingaboutthepeopleyouwishtochangeandtounderstandtheirsocialnetwork.

3. Opinionleadersandgatekeeperarecriticaltoimple-mentingchange.

Andherearethreeguidingprinciplesregardingchange:1. Changehappensinstages.

2. Differentstrategiesaremoreeffectiveindifferentstages.

3. Peoplemovethroughstagesatvaryingspeeds.

Finally,participantsrecognizedthefollowingfive“adoptertypes,”eachofwhomrequiresadifferentstrategyforsuccessfulinnovation:• Innovator,quicktotrynewideas,butnotarecognized

leader;

• EarlyAdopter,arecognizedleaderwhoisrelativelyearlyonnewideas;

• EarlyMajority,deliberateinadoptinginnovationsafterseeingtheminaction;

• LateMajority,hesitanttoadoptinnovations,butnotcontraryminded;and

• Resister,notinterestedininnovations,butalsonotaleader.

ComparingNotesRoundtableparticipantsfounditvaluabletocomparenotesoninnovationprocessesandalsosimplytohearwhatin-novationsothersaremaking,evenacrossdifferentsegmentsoftheindustry.Perhapsthegreatestkeytoinnovationisnottogiveup,buttoremainpatientandtenaciousinattemptingtomovepeopletowardthegoal.Avarietyofstrategiesmaybecalledforalongtheway,andevaluationandfeedbackarekey.n

• Toexploretheforcesdrivingchangeandthereasonswhypeopleresist;

• Toidentifyanddiscusswhatpracticesneedtobechangedandwhy;

• Toexperiencetheroleofintroducingaspecificchangeintoahotel;and

• Todevelopasoundchangeadoptionstrategyasateamandexperimentwithdeployingandrevisingastrategybasedonstepbystepfeedbackaboutwhatdrivesorimpedeschange.

Indiscussingtheirexperiencesduringthesimulation,severalparticipantsbecamesoengrossedthattheyplayedthesimulationforseveralhours,astheyaddressedthechallengesofgettingtheinnovationadopted.Thefrustra-tionsandcomplexityofintroducingchangewerefelttoberealisticinthissimulationandthisprovidedacontextforparticipantsmentioningsomeoftheirownchallenges.Oneofthekeylearningoutcomeswasthatdifferentstrategiesforintroducingchangeworkmoreeffectivelyatdifferenttimesintheinnovationprocessandwithdifferenttypesofpeople.

Studiesofchangesuggestthefollowingkeypoints:• Changeismessy,

• Changeiscomplicated,

• Changeinvolvesconflictingdemands,

• Changerarelyturnsoutrightthefirsttime,

• Therealityofchangedefiesfad,

A change management simulation exercise provided perspectives on real-world innovation issues.

The Executive Path Hospitality Leadership Through Learning

Complete program information and applications available online:

www.hotelschool.cornell.edu/execedPhone + 1 607 255 4919 Email [email protected]

Professionals from around the world are invited to attend 3-day, 10-day or online courses at the world’s leading institute for hospitality management education in:

Visit our website to apply.

Explore, develop and apply ideas with global hospitality leaders and

expert Cornell professors.

Success

AdvancingBusiness

andPersonal

• Strategic Leadership• Finance• Foodservice• Human Resources

• Marketing• Operations• Real Estate


The Executive Path Hospitality Leadership Through Learning

Complete program information and applications available online:

www.hotelschool.cornell.edu/execedPhone + 1 607 255 4919 Email [email protected]

Professionals from around the world are invited to attend 3-day, 10-day or online courses at the world’s leading institute for hospitality management education in:

Visit our website to apply.

Explore, develop and apply ideas with global hospitality leaders and

expert Cornell professors.

Success

AdvancingBusiness

andPersonal

• Strategic Leadership• Finance• Foodservice• Human Resources

• Marketing• Operations• Real Estate


CHR Publications

Indexwww.chr.cornell.eduCornell Hospitality Quarterlyhttp://cqx.sagepub.com/

2011 ReportsVol.11,No.11CustomerLoyalty:ANewLookattheBenefitsofImprovingSegmentationEffortswithRewardsPrograms,byClayVoorhees,Ph.D.,MichaelMcCall,Ph.D.,andRogerCalantone,Ph.D.

Vol.11,No.10CustomerPerceptionsofElectronicFoodOrdering,bySherylE.Kimes,Ph.D.

Vol.11,No.92011TravelIndustryBenchmarking:StatusofSeniorDestinationandLodgingMarketingExecutives,byRohitVerma,Ph.D.,andKenMcGill

Vol11No8Search,OTAs,andOnlineBooking:AnExpandedAnalysisoftheBillboardEffect,byChrisAndersonPh.D.

Vol.11No.7Online,Mobile,andTextFoodOrderingintheU.S.RestaurantIndustry,bySherylE.Kimes,Ph.D.,andPhilippF.Laqué

Vol.11No.6HotelGuests’ReactionstoGuestRoomSustainabilityInitiatives,byAlexSusskind,Ph.D.andRohitVerma,Ph.D.

Vol.11,No.5TheImpactofTerrorismandEconomicShocksonU.S.Hotels,byCathyA.Enz,RenátaKosová,andMarkLomannoVol.11No.4ImplementingHumanResourceInnovations:ThreeSuccessStoriesfromtheServiceIndustry,byJustinSunandKateWalsh,Ph.D.

Vol.11No.3Compendium2011

Vol.11No.2PositioningaPlace:DevelopingaCompellingDestinationBrand,byRobertJ.Kwortnik,Ph.D.,andEthanHawkes,M.B.A.

Vol.11No.1TheImpactofHealthInsuranceonEmployeeJobAnxiety,WithdrawalBehaviors,andTaskPerformance,bySeanWay,Ph.D.,BillCarroll,Ph.D.,AlexSusskind,Ph.D.,andJoeC.Y.Leng

2011 Hospitality ToolsVol.2No.1MegaTips2:TwentyTestedTechniquesforIncreasingYourTips,byMichaelLynn

2011 ProceedingsVol3,No.6HospitalityBrandManagementRoundtable:FreshThinkingabouttheBox,byChekitanS.DevandGlennWithiam

Vol3,No.5BuildingBrandsintheInternetAge:Analytics,Loyalty,andCommunication,byGlennWithiam

Vol.3,No.4BraveNewWorld:OnlineHotelDistribution,byGlennWithiam

Vol.3,No.3SocialMediaandtheHospitalityIndustry:HoldingtheTigerbytheTail,byGlennWithiam

Vol.3No.2TheChallengeofHotelandRestaurantSustainability:FindingProfitin“BeingGreen,”byGlennWithiam

Vol.3No.1CautiousOptimism:CHRSExaminesHospitalityIndustryTrends,byGlennWithiam

2010 ReportsVol.10No.18HowTravelersUseOnlineandSocialMediaChannelstoMakeHotel-choiceDecisions,byLauraMcCarthy,DebraStock,andRohitVerma,Ph.D.

Vol.10No.17PublicorPrivate?TheHospitalityInvestmentDecision,byQingzhongMa,Ph.D.andAthenaWeiZhang,Ph.D.

Vol.10No.16BestPracticesinSearchEngineMarketingandOptimization:TheCaseoftheSt.JamesHotel,byGregBodenlos,VictorBogert,DanGordon,CarterHearne,andChrisK.Anderson,Ph.D.

Vol.10No.15TheImpactofPrix Fixe MenuPriceFormatsonGuests’DealPerception,byShuoWangandMichaelLynn,Ph.D.

Vol.10No.14TheFutureofHotelRevenueManagement,bySherylKimes,Ph.D.

Vol.10No.13MakingtheMostofPriceline’sName-Your-Own-PriceChannel,byChrisAnderson,Ph.D.,andShijieRadiumYan

Vol.10,No.12CasesinInnovativePracticesinHospitalityandRelatedServices,Set4,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A

Vol.10,No.11Who’sNext?AnAnalysisofLodgingIndustryAcquisitions,byQingzhongMa,Ph.D.,andPengLiu,Ph.D.

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Vol.10,No.10CasesinInnovativePracticesinHospitalityandRelatedServices,Set3:CayugaSustainableHospitality,Chic&Basic,JetBlueAirlinesJumeirahEssexHouse,TheRitz-CarltonHotelCompany,Runtriz,TheSeaportHotel,ThayerLodging,TripTelevision,andXsenseExperientialDesignConsulting,byCathyA.Enz,Ph.D.,RohitVerma,Ph.D.,KateWalsh,Ph.D.SherylE.Kimes,Ph.D.,andJudyA.Siguaw,D.B.A.

Vol.10,No.9BuildingCustomerLoyalty:TenPrinciplesforDesigninganEffectiveCustomerRewardProgram,byMichaelMcCall,Ph.D.,ClayVoorhees,Ph.D.,andRogerCalantone,Ph.D.

Vol.10,No.8DevelopingMeasuresforEnvironmentalSustainabilityinHotels:AnExploratoryStudy,byJieJ.Zhang,NitinJoglekar,Ph.D.,andRohitVerma,Ph.D.

Vol.10,No.7SuccessfulTacticsforSurvivinganEconomicDownturn:ResultsofanInternationalStudy,bySherylE.Kimes,Ph.D.

Vol.10,No.6IntegratingSelf-serviceKiosksinaCustomer-serviceSystem,byTsz-Wai(Iris)Lui,Ph.D.,andGabrielePiccoli,Ph.D.

Vol.10,No.5StrategicPricinginEuropeanHotels,2006–2009,byCathyA.Enz,Ph.D.,LindaCanina,Ph.D.,andMarkLomanno

Vol.10,No.4CasesinInnovativePracticesinHospitalityandRelatedServices,Set2:Brewerkz,ComfortDelgroTaxi,DinnerBroker.com,Iggy’s,JumboSeafood,OpenTable.com,PriceYourMeal.com,SakaeSushi,Shangri-LaSingapore,andStevensPass,bySherylE.Kimes,Ph.D.,CathyA.Enz,Ph.D.,JudyA.Siguaw,D.B.A.,RohitVerma,Ph.D.,andKateWalsh,Ph.D.

Vol.10,No.3CustomerPreferencesforRestaurantBrands,Cuisine,andFoodCourtConfigurationsinShoppingCenters,byWayneJ.TaylorandRohitVerma,Ph.D.

Vol.10,No.2HowHotelGuestsPerceivetheFairnessofDifferentialRoomPricing,byWayneJ.TaylorandSherylE.Kimes,Ph.D.

Vol.10,No.1Compendium2010

2010 Roundtable RetrospectivesVol.2,No.1SustainabilityRoundtable2009:TheHotelIndustrySeekstheElusive“GreenBullet.”

2010 Industry PerspectivesNo.6TheFutureofMeetings:TheCaseforFacetoFace,byChristineDuffyandMaryBethMcEuen

No.5MakingCustomerSatisfactionPay:ConnectingSurveyDatatoFinancialOutcomesintheHotelIndustrybyGinaPingitore,Ph.D.,DanSeldin,Ph.D.,andArianneWalker,Ph.D.

No.4HospitalityBusinessModelsConfronttheFutureofMeetings,byHowardLockandJamesMacaulay

2010 ToolsToolNo.13MeasuringthePerformanceofSearchEngineMarketing:TwoToolsfortheHospitalityIndustryAnilAggarwalandBillCarrollPh.D.

ToolNo.14TheWineCellarManagementTool2.0,GaryM.ThompsonPh.D.

2009 ReportsVol.9,No.18HospitalityManagersandCommunicationTechnologies:ChallengesandSolutions,byJudiBrownell,Ph.D.,andAmyNewman

Vol.9,No.17CasesinInnovativePracticesinHospitalityandRelatedServices,Set1:AquabyGrandstand,BrandKarma,CapellaHotels&Resorts,EnTrip,Hotels.comVisualiser,LuggageClub,RoyalPlazaonScotts,Tastings,TuneHotels,andVisitBritain.com,byJudyA.Siguaw,D.B.A.,CathyA.Enz,Ph.D.,SherylE.Kimes,Ph.D.,RohitVerma,Ph.D.,andKateWalsh,Ph.D

Vol9No16TheBillboardEffect:OnlineTravelAgentImpactonNon-OTAReservationVolume,byChrisK.Anderson,Ph.D.

Vol9No15OperationalHedgingandExchangeRateRisk:ACross-sectionalExaminationofCanada’sHotelIndustry,byCharlesChang,Ph.D.,andLiyaMa

Vol9No14ProductTiersandADRClusters:IntegratingTwoMethodsforDeterminingHotelCompetitiveSets,byJin-YoungKimandLindaCanina,Ph.D.

Vol9,No.13SafetyandSecurityinU.S.Hotels,byCathyA.Enz,Ph.D

CHR PublicationsIndex


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