Strategy and performance management updates in tourism: Learn how the travel and hospitality industries have been navigating the post-pandemic era so far.
IATA issues new report on safety performance
The International Air Transport Association’s (IATA) 2021 safety performance data for the commercial airline industry reveals significant progress in key categories compared to both 2020 and the previous five years. Findings show that the total number of accidents, all-accident rate, and deaths declined. Last year, there were no fatal accidents among IATA members or airlines on the IATA Operational Safety Audit (IOSA) registry (which covers all IATA members). For the first time in at least 15 years, there were no runway/taxiway excursion incidents.
“Safety is always our highest priority. The severe reduction in flight numbers last year compared with the five-year average magnified the impact of each accident when we calculate rates. Yet in the face of numerous operational challenges in 2021, the industry improved in several key safety metrics. At the same time, it is clear that we have much work ahead of us to bring all regions and types of operations up to global levels of safety performance,” said Willie Walsh, IATA’s Director General. | Source: IATA.org
Hyatt Hotels Corporation shares performance data on revenues, occupancy
Hyatt Hotels Corporation said that its comparable system-wide RevPAR in May was around $127, the highest RevPAR performance in any single month since November 2019. RevPAR, a commonly used performance measure in our industry, refers to the product of the average daily rate and the average daily occupancy percentage. System-wide RevPAR in May was around 6% lower than in May of 2019(1), or approximately 3% higher when Asia Pacific was excluded. Comparable system-wide RevPAR increased by 2% in May compared to April, owing to higher occupancy, mainly in urban areas. In addition, the average daily rate in May was nearly 8% higher than in May of last year, driven by luxury brands in the Americas, which outperformed 2019 by approximately 24%. | Source: businesswire.com
GE’s Airspace Insight adds new feature for operational performance monitoring
GE Digital announced the addition of the new Network View Module to its Airspace Insight™ software. This will give airlines insights where within their network they need to focus to enhance operational performance based on a range of efficiency and safety metrics developed to identify patterns in airspace waste and minimize fuel consumption. Moreover, the module can aid in tracking and measuring the results of initiatives to enhance airspace efficiency and safety, as well as benchmarking progress against other airlines or collaborating with other airlines, regulators, and Air Navigation Service Providers (ANSPs) to promote industry efficiency and safety.
“Reduced reliance on anecdotal evidence for understanding operational issues, benchmarking, and knowledge sharing between other airlines are what airlines are looking for. They want to know which airlines are flying into this airport, and how efficiently and safely they are doing so. Which markets are underserved or not served at all? Airspace Insight’s Network View Module can help answer these questions,” said Andrew Coleman, General Manager of GE Digital’s Aviation Software business. Source: marketscreener.com
HSMAI survey reveals woes in retaining talent in hospitality
The Hospitality Sales and Marketing Association International (HSMAI) has launched the report “The State of Hotel Sales, Marketing, and Revenue Optimization Talent 2020-2021.” Results found that employers in the industry are facing issues in the areas of compensation and benefits, scarcity of competent candidates, pipeline concerns, and poaching loyalty and company culture. Meanwhile, the trends detected by the report emphasize the value of corporate culture, servant leadership, mental health and wellness, and reskilling and upskilling. The insights are from “50 brand and hotel management company revenue executives and ownership group commercial executives across disciplines to rate the challenges facing commercial talent in hospitality.” Source: hsmai.org
US announces new National Travel and Tourism Strategy
To promote the US travel and tourism industry, US Commerce Secretary Gina M. Raimondo introduced a new National Travel and Tourism Strategy. It is designed to achieve a five-year target of attraching 90 million foreign tourists to the country annually. The arrival of tourists is expected to generate $279 billion each year, strengthening employment growth in communities around the United States, its territories, and the District of Columbia. The strategy involves positioning the US as a major travel destination to encourage visitation to underprivileged and underrepresented groups; ensuring safe and efficient travel to and within the US and its territories; supporting diverse tourist experiences, particularly on federal lands and waterways while also safeguarding them; and establishing sustainable travel and tourism. Source: https://ftnnews.com/
You must continuously rethink your company’s strategy to succeed in today’s business environment. What is the key to long-term success? Watch strategist Martin Reeves in his TED talk as he presents the case for embracing play to spark breakthrough ideas for business. Discover the imaginative games that he employs to get leaders to stretch their thinking and uncover new possibilities.
Accelerating a digital economy is no longer just an option but a must. The United Nations reported that digital technologies have reached 50% of the developing world’s population and helped transform societies. Meanwhile, the paper “The Role of the Digital Economy in Rebuilding and Maintaining Social Governance Mechanisms” suggests that digitization improves society at all levels, from the automation of businesses to new opportunities to human behavior and social relationships, especially interactions between governments and citizens.
Malaysia is not an exception. The COVID-19 pandemic forced traditional brick-and-mortar businesses to pivot online, and millions of Malaysians followed. This is evident in their shopping, entertainment, and education needs.
The digital economy has been identified as a key economic growth area (KEGA) in realizing the Shared Prosperity Vision 2030, a blueprint released in 2020 by the government. It reflects the aspiration of making Malaysia a country that develops sustainably while achieving equitable economic distribution and inclusive growth. According to the Shared Prosperity Vision 2030, Malaysia should have clear policies and raise awareness on enabling citizens to adapt to the future economy instead of leaving them as mere consumers. Hence, MyDIGITAL was launched.
MyDIGITAL is a national initiative that epitomizes the government’s aspirations to successfully transform Malaysia into a digitally-driven, high-income nation and a regional leader in the digital economy. MyDIGITAL’s three goals are to inspire decision-makers to become creators, users, and adopters of innovative business models; use human capital to flourish in the digital economy; and cultivate a consolidated ecosystem that empowers society to embrace the digital economy. To meet these objectives, six strategic thrusts have been identified:
Drive digital transformation in the public sector.This can be accomplished by leveraging digital technologies, data, and digital intelligence, improving public servants’ digital skill sets, and enhancing the quality of online services. By the end of the year, the goal is for all ministries and agencies to provide cashless payment options and 80 percent cloud storage across the government. In the short term, transforming the Administrative Modernization and Management Planning Unit (MAMPU) will fuel digitalization and adapt to emerging digital technologies.
Boost economic competitivenessby accelerating digital adoption, empowering digital management, and shaping emerging business models through digitalization. Businesses that embrace technology and build on the digital economy will generate value and thrive as the economy transforms. The goal is to have Malaysian industries be powered by innovative ideas and models. With economic growth led by local entrepreneurs, the focus will be on productivity and improving livelihoods. This will bring in new industry players, resulting in a more vibrant and innovative economy.
Establish enabling digital infrastructure to help individuals participate in the digital economy. Through a conducive digital environment provided by seamless and extensive digital connectivity, the government and businesses will be able to operate with ease and continuously innovate. Malaysia has made significant progress in improving the state and coverage of such key infrastructure. Broadband, data centers, and submarine cable landing stations are among the digital infrastructures targeted by this thrust. These infrastructures enable data generation, flow, exchange, consumption, and storage.
Build agile and competent digital talentto ensure that digitalization is successfully embedded across talent development, various levels of education, and the upskilling and reskilling of the existing workforce. The key challenge for Malaysians as job requirements change and new jobs surface is to acquire the necessary skills to remain relevant. To thrive in the evolving digital economy, current and future workforces should be well-equipped with digital skills.
Create an inclusive digital society to bridge the digital divide and ensure that everyone benefits from the digital economy. There are numerous government initiatives and programs in place to improve the well-being of society. However, a digital divide persists across income, strata, age, gender, and skill sets. To create a digitally responsible society, ethical behavior in the use of digital technology will be prioritized. This will be expressed through the improvement of safety and ethics in digital activities and transactions and through cybersecurity. For instance, companies can leverage existing initiatives, such as the Information Security Governance, Risk & Compliance Health Check Assessment.
Establish a trusted, secure, and ethical digital environment that allows businesses and society to fully reap the benefits of digital services without jeopardizing safety, data security, privacy, dependability, or ethical standards. The development of a holistic ecosystem is required, and this may involve a regulatory framework and cyber security capabilities to prevent threats or breaches that can disrupt the digital economy.
Twenty-two strategies, 48 national initiatives, and 28 sectoral initiatives support these strategic thrusts. Phase 1 began in 2021 and will last until 2022, when the foundation for digital adoption will be strengthened. In Phase 2 (2023-2025), inclusive digital transformation will be prioritized, and Phase 3 (from 2026 to 2030) will position Malaysia as a regional leader in digital content and cyber security.
MyDIGITAL’s mission is to ensure that all Malaysians benefit from the opportunities of the digital revolution. To realize this, active participation from strong partnerships and between all stakeholders are necessary. With MyDIGITAL’s implementation, the rakyat’s standard of living and well-being are expected to improve, businesses will be able to optimize resources and expand their operations and market, and the government will be able to provide more efficient and effective services.
The COVID-19 pandemic has forever altered how organizations around the world operate. In the IBM Institute for Business Value’s study “COVID-19 and the future of business Executive epiphanies reveal post-pandemic opportunities,” 55 percent of respondents say the pandemic has resulted in “permanent changes to their organizational strategy.” An even larger 60 percent say COVID-19 has “adjusted their approach to change management” and “accelerated process automation,” with 64 percent acknowledging a shift to more cloud-based business activities.
In planning, one of the most important aspects organizations nowadays must tackle is workplace strategy. According to Gallup’s most recent survey on what employees want going forward, five in 10 say they want hybrid work arrangements for the future. For organizations worldwide, this means planning and managing moves to hybrid work environments.
What is a hybrid work strategy?
Hybrid working environments are the out-turn of the COVID-19 pandemic and refer to corporate arrangements by which some employees operate on-site while others work from home. The manifestation of more flexible working conditions in times of the COVID-19 pandemic has shifted employee expectations and desires greatly as far as the perceived benefits of in-person work. Consequently, organizations who do not embrace remote working conditions as part of their overall short-term and long-term workplace strategy may be at an increased risk of employee turnover, disengagement, and inability to attract and retain talent in the future.
Crafting the hybrid work strategy
One of the main aspects organizations must understand about hybrids is that there is no standard approach to it. Short-term planning will most likely imply experimenting with working schedules and juggling on-site and remote working arrangements to find the best fit for the organization. As for long-term planning, organizations will have to agree on their strategic position regarding a hybrid working model and relate it to their specific organizational context. A strategy plan that embraces the future outlook of a hybrid working environment should therefore consider the following:
The overall strategic position of the organization towards hybrid working as well as the development of internal policies and procedures to support that position;
A communication plan to share the organization’s hybrid working model with all employees and other stakeholders of the organization;
An approach to the adoption and dissemination of new technology as well as reviewing existing systems and equipment for updates and renewal;
A plan to put in place the necessary security measures that ensure system integrity and data protection;
A training and development plan for managers to enhance their skills in effectively coordinating remote individuals and teams; for employees to understand the operational and legal implications of hybrid working
Performance management as part of the hybrid work strategy
As part of a hybrid work strategy, organizations generally have to adapt to increased remote working requirements. In this context, performance may become harder to observe, and managers will ultimately have to admit that they can no longer monitor every aspect of performance, nor should it be necessary for them to do so. Planning for a hybrid strategy would therefore have to consider the following:
The re-configuration and re-design of the performance management system and processes to fit the purpose of a remote working environment;
A shared organizational culture that embraces flexibility encourages presenteeism and stimulates the right remote working approaches and behaviors;
The re-shaping of managerial skill and aptitude to manage performance based on outcomes, contribution, and value;
Principles of communication that promote regular social and human connection opportunities to support employee engagement and team building
Measures introduced to ensure staff safety in the workplace
In terms of physical working place, many organizations may feel the need to proceed in a cautious wait-and-see mode while taking active steps to increase the safety of their working environments and ensure the well-being of their employees. Some straightforward actions in this respect can refer to the following:
Altering working space layouts by moving workstations apart and having employees work back-to-back or side-to-side (rather than face-to-face);
Staggering shifts – having employees start and finish work at different times – or staggering break times as a way of reducing the number of people in the workplace or taking breaks at any one time;
Reducing the number of meetings or the duration of such meetings as a temporary measure to maintain social distancing
Short-term vs. long-term hybrid strategy
The last question one has to answer here is: “Does our organization plan for a short-term hybrid strategy or a long-term one?”. When planning a hybrid strategy short-term, an organization must absolutely think “workplace value proposition.” This involves the benefits employees have for returning to on-site work. It’s quite clear that pointing to job requirements as the primary reason employees must return to the office will not work. In this context, organizations may need to focus on the distinct opportunities that an on-site environment creates as opposed to a remote one and find the best way to effectively communicate them.
When planning for a hybrid strategy long-term, executives have already accepted that pandemic-related changes in strategy, management, operations, and budgetary priorities are here to stay. These are generally organizations with an international structure with employees working from different parts of the world, companies that operate through digital tech and cloud adoptions, and entities that are more project-based and service oriented, rather than product-based with intricate supply-chain networks.
So when adopting a hybrid working model and strategy, it is mainly important that one considers the organization itself, the roles that meet remote work criteria, the interdependency level of team members, and individual comfort with work from home conditions and protocols.
References:
CIPD (2021), Planning for Hybrid Working, Advice on how organizations can plan and manage a move to hybrid working. Available at: Planning for hybrid working | CIPD
IBM Institute for Business Value (2020), COVID-19 and the future of business Executive epiphanies reveal post-pandemic opportunities. Available at: COVID-19 and the future of business (ibm.com)
The restaurant industry was hit hard by the pandemic. It has to manage many changes, and the most challenging one is retaining talent. According to the National Restaurant Association’s State of the Restaurant Industry (2022) report, more than one million jobs in the hospitality and restaurant industries remain unfilled, and 78 percent of restaurant operators lack the staff to meet customer demand. Data also shows that three out of every four employees intend to quit their jobs within the next year.
In order to mitigate talent management concerns, Chipotle, an American fast-casual restaurant chain with a presence in the United Kingdom, Canada, Germany, and France, developed new strategies and launched programs that are focused on meeting employee expectations and boosting employee experience.
Retention strategies
Chipotle’s benefits program, Cultivate Me, provides its employees with a best-in-class benefits and perks package. It includes bonuses (annual and quarterly), education assistance and debt-free degrees, free meals (one free meal per day), paid time off, assistance program (free access to counselling), 401(k) retirement savings, healthcare services and advocacy, and benefits in Chipotle partners (discounts in big brands and gyms).
Observing that the turnover rate raised continually in the industry, Chipotle launched learning and upskilling programs. Employees are given multiple options, ranging from high school diploma programs and college classes to courses teaching high-end computer networking skills. The company also introduced a mentoring program for future executives.
Another initiative to boost employee retention was asking employees about the tasks they want automated. The restaurant chain started its automation efforts by developing together with Miso Robotics an autonomous kitchen assistant that makes tortilla chips. The robot called Chippy is already being tested and is soon to be integrated into restaurants, leaving employees to focus on more important tasks. The company also started implementing a new digital scheduling program and upgrading its learning portal. As stated by Brian Niccol, CEO of Chipotle for QSR magazine, the brand’s automatization’s radar scans for those “jobs people don’t love doing.”
The restaurant chain also launched a new Learning Management System, the Spice Hub, where restaurant employees can enhance their skills through gamification, social learning, personalized learning paths, and instructor-led training.
Chipotle ended 2021 in need of 20,000 employees, who should fill its 200 restaurants. Like most of its competitors, Chipotle raised wages as the first step in employee attraction. But that is an initiative that only makes the company keep up with the market. Since the entire restaurant industry is struggling, Chipotle needed to do something more for its employees. That is how Chipotle promotes its differentiator: equitable access to education and mobility.
Chipotle partnered with Guild Education, a private company that helps companies manage their education assistance benefits, to carry out a national Back-to-School campaign. It aims to attract and maintain interest in school for those employees that can either balance work and online schooling or decide to follow a path of on-campus education. Leveraging its educational benefits in the national campaign, Chipotle’s recruiting team has received 7,500 total applications.
Evaluating employee performance
Broadly, an employee’s performance is periodically evaluated by a representative of the company. The evaluation should result in new goals for improvement and rewards for desirable results.
Chipotle replaced its annual performance review with more regular review sessions. Its performance review now comprises at least four meetings per year. During these sessions, managers ask employees four questions. The so-called 4×4 conversation contains the following questions:
What are your most significant accomplishments since we last met?
What are the most important things you will focus on before meeting next?
What obstacles are you encountering right now?
What can I do better or differently as your manager to support you?
This type of review and the questions themselves consider the employee as the owner of the evaluation. Employees give feedback to the company and challenge themselves with new objectives.
The employees’ performance can be acknowledged through benefits, recognition, compensation, and rewards. Since the beginning, Chipotle has rewarded its employees with prizes. If prior, the employees were rewarded with free menu entrees, now, Chipotle employees can win multiple Chipotle goods and a variety of discounts from Chipotle Partners.
As a result of all Chipotle restaurant chain’s efforts to retain employees in 2021, they managed to:
Internally promote 90% of restaurant management roles
Promote almost 19,000 team members
Offer free and confidential Employee Assistance Program (EAP) services to all Chipotle Employees in need of mental and emotional support
Achieve a Human Rights Campaign Corporate Equality Index score of 100
Establish an inclusive, award-winning culture
At Chipotle, the company’s values have been agreed upon altogether with employees. The leadership team defined an initial set of values that were later discussed with employees. The fact that the leadership team involved all employees in such a decision empowers them and increases their loyalty.
Culture is from the beginning communicated and present in all interactions inside a team. One of the first ingredients of culture reinforcement is investing in people. Increasing communication within all organizational levels and enhancing collaboration can strengthen teams, leading to an increased retention level and a high-performance culture.
