Strategic Planning for the Hospitality Industry

This document discusses the importance of strategic planning in the hospitality industry, focusing on factors affecting successful implementation of strategies, analysis of performance metrics, and key elements of managing strategic change. It provides insights into leadership, structural design, information and control systems, and human resources. The document also explores critical success factors, key performance indicators, and the use of balance scorecard in measuring organizational performance. Suitable for students studying strategic planning in the hospitality industry.

Strategic planning for the hospitality industry'(MI)

Table of Contents
INTRODUCTION...........................................................................................................................3
L O 4................................................................................................................................................3
1) Analysis of factors affecting successful implementation of strategies....................................3
L O 5................................................................................................................................................5
2) Analysis of various performance metrics of the organization.................................................5
3) Evaluating the key elements of managing strategic change. ..................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term strategic planning is defined as the management activity of the organization that
is used to develop priorities, focussing on resources and energy, strengthen operations and
ensuring that workers and other stakeholders are performing activities to achieve common
objective and establishing agreement around results (Smith, 2017).
The Report is based on Double tree by Hilton which is a part of Hilton Worldwide. Most
of the Double Tree hotels are controlled and independently owned by franchisees but some
hotels are managed by Hilton Worldwide. Headquarter of the hotel is located in United States.
The Report is based on two case studies that are low rise platform lift and Case study on
upgrading present analogue two-way radio system to digital. The Report will outline analysis of
the factors affecting implementation of strategies, different performance metrics of the
organization and evaluation of key elements in managing change.
MAIN BODY
L O 4
1) Analysis of factors affecting successful implementation of strategies.
Leadership -
The term leadership is defined as the process through which Leader of the company
influences, direct and guide the work and behaviour of others towards the attainment of
particular goals in a specific situation.
Strategic leader plays an important role in developing and executing business plans to
attain positive results. The leadership style adopted by the Leader of Double Tree by Hilton will
affect the implementation of the strategy of the hotel to upgrade its present analogue two-way
radio system into digital system (Double Tree Hilton Case Study , 2015). Further, strategic leader
of the hotel is very critical to perform different roles on the basis of the particular situation. In
the given case study of “low rise platform lift”, leader of the hotel helps to guide workers to
cater to the various access needs of the guests. Leader of Double Tree by Hilton should adopt
democratic leadership style and employees should be involved in decision-making related with
developing low rise platform. This will help to provide easy access to disabled visitors.
Basically, leader of the organization provides vision and develop goals for short and long
term. After analysing the vision the intentions of employees are shifted towards the formulation
of strategy. In case, leader of the firm adopts inappropriate leadership style then it greatly affects

the successful implementation of the strategy. It may also result in non-attainment of aim and
objectives of the business. Leader of the hotel should ensure their own commitment as well as
commitment of human resource (Laudon and Laudon, 2016).
Structural Design -
The term organization design refers to the procedure of developing hierarchy in the
organization structure and it also helps to determine the flow of authority and responsibility
within the structure of the firm.
Organisation design is considered as one of the major factor that affects strategy
implementation. The implementation of strategy includes operationalizing the plan of strategy
implementation at different levels of the company. Strategic implementation is a procedure that
cuts across the hierarchies of business and also requires effective team work within each and
every level of the organization playing a supportive role to others.
Wrong structural design will result into miscommunication among people working in
different levels of Double Tree by Hilton because employees might not be sure that who requires
information and where to deliver important messages. Double Tree should follow hierarchical
organization structure because it will promote clarity of objectives to the employees. As a result
it will help the hotel to upgrade their existing two-way radio system into digital system (Noe and
et.al, 2017).
Information and Control Systems -
Information system is defined as the system that is used by firms for collecting,
processing, storing and distributing information. It includes system users, hardware and software
and data itself. In order to gain competitive advantage by modifying and converting present
analogue two-way radio system into digital system, it is important for develop effective
strategies that will help Double Tree by Hilton to use information system and controls effectively
and offer the means to manage these systems. Information system will help Double Tree by
Hilton to gain competitive advantage by contributing to attainment of strategic goals and ability
to significantly increase the productivity and performance. Further, hotel should use
Management Information System to ensure low rise platform lift for the clients. The system will
support the process of strategic planning in the organization development (Low-rise platform lift,
2015).

There are certain issues related with Information system such as leadership issue,
personnel issue, technical systems issue, management process issue etc. that may affect
deployment, procurement and planning of information system in the organization. As a result, it
will also affect the process of successful implementation of the strategy in Double Tree by
Hilton.
Human Resources -
The involvement of workers in the execution of strategy is very important for successful
implementation of the strategy. Successful implementation of the strategy of Double Tree by
Hilton for upgrading the current analogue system into digital system. It is important that top
management of the hotel should involve human resource in developing and implementing the
strategy that will help to connect new digital radios to the fire alarm system. Due to this,
employees of the organization will make efforts to bring change in the current system. This will
result into enhancement of experience of the guests and safety of people working in the hotel.
For successful implementation of the change it is important that all the workers working in
Double Tree by Hilton should understand the changes that will indirectly or directly impact their
responsibilities and job duties (Naser and Al Shobaki, 2016).
It is important to conduct training sessions for the employees that will help to improve
their skills and knowledge. This will also support company to implement the strategies in
effective way. Further, there must be availability of adequate resources otherwise workers will
not be able to perform their duties effectively.
L O 5
2) Analysis of various performance metrics of the organization.
Critical Success Factors :
The term critical success factors is defined as those variables that are essential to offer
positive outcomes to the company. These are expected casual factors of a specific desired result.
It can also be defined as indicators for conditions, opportunities to attain an objective. Critical
success factors for Double Tree Hilton are -
Competitive marketing :
Promotion is the communication tool that helps Double Tree by Hilton to target audience
of the products or services offered by organization. Competitive marketing strategy of the
business includes publicity, advertising and constantly reminding through emails to clients etc.

Marketing strategy greatly affects the implementation of the business strategy. It also helps firm
to compete with competitors (Netland, 2016).
Expanding into emerging markets :
Another critical success factor of Double Tree Hilton is expanding into emerging markets
across the globe. Double Tree by Hilton is set to expand the business around the world with
approximately half of its 200 planned hotels are established in Asia Pacific region. Properties of
Hilton are slated to open in 2019 across Indonesia, China, Australia etc.
Special price packages :
Another critical success factor of Double Tree by Hilton is that it offers various special
price packages to the customers that helps to secure competitive position in the market as well as
it also help organization to satisfy requirements of the guests. Further, it also helps to increase
the turnover of the business.
Brand variety :
Another major critical success factor of Double Tree by Hilton is its brand variety. For
more than 40 years the organization has grown across the world due to loyal clients, exceptional
staff and unique hotels etc. It owns hotels like Double Tree by Hilton Bloomfield Hills Detroit,
Perth North bridge, La Torre Golf & Spa Resort etc. Strong brand image of the hotel helps to
increase value of organization and helps to attract new clients (Yeoh and Popovič, 2016).
Key Performance Indicators -
It refers to the measurable value that reflects how effectively organization is attaining
major business objectives. organization use KPI's at different levels to evaluate their success at
reaching targets.
Average length of stay :
The term average length of stay refers to the average time period of days the guests stay
at the hotel during a specific period. It is calculated by dividing total number of engaged rooms
nights by the total number of bookings by the clients. The average length of stay of guests at an
extended stay is nearly 20 plus days. In Hilton the average length of stay at Homewood Suites is
6.3 nights and for Home 2 Suites the average length of stay is 5.9 nights. Improvement in length
of stay helps to improve operational, financial outcomes of the hotel (Parmenter, 2015).
Customer satisfaction rate :

It is defined as the measure of how the goods or services offered by an organization
surpass the expectations of the customers. The term customer satisfaction means the percentage
of total clients whose reported experience with the business, its services or products exceeds
specified satisfaction goals. It is one of the important metrics provided as the part of key
analysis. The customer satisfaction rate of Double Tree by Hilton in year 2019 is 79. It reflects
the satisfaction of clients in respect of the products and services that are offered by the
organization. It greatly impacts the strategy of the hotel. Further, customer satisfaction also
affects team morale and rate of retention of the loyal clients (Khan, 2017).
The Balance Scorecard -
The term balance scorecard means the performance metrics that is used by companies to
determine and improve different functions of the business and their resulting external results.
Balance scorecard helps to measure and offer feedback to the firm. Data collection is important
to offer quantitative results as executives and managers collect and interpret the information and
utilize it to make informed decisions for the company (Gössling, 2015).
Balance scorecard allows the Leader of Double Tree by Hilton to measure the progress of
organisation towards strategic aim and objectives in a well rounded manner. It helps the
management of hotel to measure financial as well as non financial metrics that are focussing on
various aspects of the business operations.
Revenue per available room and revenue per guest are common financial metrics that are found
in the balance scorecard of Double Tree by Hilton. Management monitors total amount of
revenue properties and data points and the way the space of hotel is efficiently utilized.
The balance scorecard method adopted by the hotel helps the management to attain the
highest operating profit margin as compared to the competitors while increasing the market
share. Further, the loyalty of clients and brand measures have consistently improved in previous
3 years since Double Tree by Hilton has adopted the approach of balance scorecard (Gössling,
Araña and Aguiar-Quintana, 2019).
Moreover, quality , cost and accidents metrics are found in internal processes' category of
the business in balance scorecard. These things directly impacts the earning per share as well as
net profit of Double Tree by Hilton. Effective and efficient processes of the organization are
important for securing competitive position in the market (Bryson, 2018). Further, skills level
attained, hours of training and employee turnover are some learning and growth metrics that are

important for the hotel. Example – The estimated turnover rate in Double Tree by Hilton is
range in between 60 to 300 %. Therefore, management should consider various strategies to
reduce the level of employee turnover in the organization.

Strategic change refers to movement of company away from the present state towards the
desired future state for increasing the competitive advantage. Strategic change is adopted for
bringing congruence among the strategy structure of the organisation, human resource system
and larger environment. Strategic change requires attention of management for cultural, technical
and political aspect affecting the organisation. Strategic change process involves various steps
that are essential for the company to restructure its business.
3) Evaluating the key elements of managing strategic change.
Strategic change refers to movement of company away from the present state towards the
desired future state for increasing the competitive advantage. Strategic change is adopted for
bringing congruence among the strategy structure of the organisation, human resource system
and larger environment. Strategic change requires attention of management for cultural, technical
and political aspect affecting the organisation. Strategic change process involves various steps
that are essential for the company to restructure its business (Bourne, 2016).
Key element that are used for managing the strategic change are
Diagnosis
Diagnosis have an critical role in change management process in terms of choosing
interventions and contributions for accepting the readiness for change within the organisation.
Diagnosis is considered as an integral part of company. Diagnosis is essential for company for
identifying the gaps among current as well as desired performance. Company will be making
changes when it is able to identify the main problems that are restricting the change management
process. It is considered as consciousness raising process that are essential for implementing the
strategic change successfully within the organisation. Diagnosis techniques differs according to
the situations for which it is done. Hilton Hotel undertakes the diagnosis for identifying the needs
for change that many organisation fails and face serious issues. Diagnosis is also essential for
knowing that whether the employees are ready to accept the change that company is planning to
adopt. It also enables the company to identify the existent members are competent to adjust in
the strategic change.
Change agents
Change agents refers to the people who would be initiating the change management process
within the organisation for enhancing the operating efficiency of the business. Change agents are
important for introducing the change. Change agents takes initiative for reducing the causes of

resistance as well motivates employees for accepting the change by educating them about the
benefits of the strategic and how it would be adding value to their individual personality. There
are two kinds of change agent that are internal as well as external (Lewis, 2019).
Change agents investigate for identifying the clues that resist the strategic change to take
place within the organisation so that the strategies can be framed according for implementing the
strategic change. Company requires someone speaking positive about the company, change
agents educate employees working within the organisation about the beneficial effects of
accepting the change that would be driving to organisation. The encourage employees to accept
the strategic change by showing the positive impacts and how it would be adding to the
knowledge and potential.
Change management programmes
Change management programmes are playing significant role in implementing the
strategic change of the organisation. Change management programmes includes trainings and
development programmes held by the company. These programmes are held for training the
employees of the organisation before implementing the change. This avoid the chances of facing
resistant from the employees as they are trained in advance for accepting the change (Cummings,
Bridgman and Brown, 2016). The development programmes includes the seminars that educates
the necessity for strategic change and how they will lead the organisation towards success.
Levers of change
There are five levers of change that helps Hilton hotel in accepting the strategic change.
Communication plan – Communication helps in effectively communicating the strategic change
to the employees to the organisation. It has very effective role when implementing the strategic
change within the organisation.
Sponsorship Roadmap – It incudes significant and active involvement of the senior leaders in
the strategic change for implementing t successfully. They should detail about each and every
activity they are undertaking in the change process.
Coaching plan – It deals with having active interactions between the management and
employees within the organisations so that there is no gap left for the issues to affect the strategic
change.

Training plan – It involves training staff of company increasing their efficiency and competency
to perform best in the implementation of strategic change (Farkas, 2016).
Resistance management plan – Resistance of the employees have to be managed by the Hilton
Hotel by giving them benefits like rewards and incentives as well as motivating them about the
positive aspects.
Types of Strategic Change
There are different types of strategic changes that organisations face prior to identifying the
frameworks for implementation of change. The change has been classified into four categories
that measures the extent of change that has to be achieved.
Changes are classified into two :
Transformation : Evolution and Revolution
Realignment : Adaptation and Reconstruction
Transformations
It refers to fundamental change which organisation cannot handle within the existing paradigm
Evolution – It is transformational change that is implemented gradually by the organisation via
inter related initiatives. Evolution is considered as a proactive change that is undertaken for
participating in the needs for future changes. It helps organisations to meet the upcoming
changes of the market.
Revolution – It is also a transformational change which is occurring due to simultaneous
initiatives in many fronts (Krishnakumar, 2015). Such change is mostly forced on the
organisations and is reactive in nature because of changing competitive situations that company
is facing. They are important to remain competitive in the market and having sustainable growth
by accepting the requirements of market.
Realignment
It does not involves fundamental reappraisals of central beliefs and assumptions.

Adaptation – This change is undertaken for realigning the manner in which the organisation is
operating in the market. This change is implemented in series of steps. This is accommodated in
the existing culture and could occur incrementally.
Reconstruction – It is carried out for realigning the manner in which company is operating along
with the initiatives that are implemented simultaneously within the organisation. This type of
change is also forced and also reactive as it is implemented due to the changing competitive
environment (Krishnakumar, 2015).
CONCLUSION
The above Report has outlined that strategic leader of the company plays a major role in
preparing and executing business plans to attain positive results. Leader of the firm also provides
vision and assist in developing short term and long term goals. Further, the Report has explained
that wrong structural design may result into miscommunication among the people that are
working in the organization. Double Tree by Hilton should implement information system such
as Management Information System to ensure low rise platform lift for the clients. This will
helps to improve customer satisfaction. Moreover, the Report has explained that the business
should also conduct training sessions for their workers that will help to improve their skills and
knowledge. This will result into successful implementation of business strategy.

REFERENCES
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Parmenter, D., 2015. Key performance indicators: developing, implementing, and using winning
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Smith, R.D., 2017. Strategic planning for public relations. Routledge.
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Online -
Double Tree Hilton Case Study. 2015. Online Available Through : <https://www.smc-
comms.com/wp-content/uploads/2015/12/Double-Tree-Hilton-Case-Study-v2.pdf>
Low-rise platform lift. 2015. Online Available Through :<https://www.nichelifts.com/low-rise-
platform-lift-doubletree-hilton-case-study/>