Strategic Planning for Hilton: Performance Metrics and Key Elements

This report provides a comprehensive analysis of strategic planning within the hospitality industry, using Hilton Hotel as a primary example. It explores the impact of strategic planning on various business functions, including leadership, structural design, information and control systems, and human resources. The report delves into different performance metrics such as critical success factors, key performance indicators, and the balanced scorecard, illustrating how these elements contribute to successful strategic implementation. Furthermore, it examines key elements in managing strategic changes within the organization. The report highlights the importance of adapting to customer demands, maintaining a competitive advantage, and ensuring effective communication and teamwork to achieve organizational goals. The analysis emphasizes the need for continuous improvement and adaptation to thrive in the dynamic hospitality environment.

Strategic Planning for
the Hospitality
Industry

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
1 Affect on successful implementation of strategies on business functions.............................................3
2 Different Performance Metrics.............................................................................................................5
3 Key Elements.......................................................................................................................................7
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

INTRODUCTION
In any organization there have be changes which are supposed to be made for the
betterment of the companies. The change in trends and demands of the customers keep changing
which is why the company has to come up with a plan which has to be strategic in nature so that
the company can profit from it. Changes are made in the company to have a competitive
advantage or to increase the strengths of a company over the others in the market. The customers
are becoming more aware of the products and services they need so they are picking up products
which are the best for them and the companies have to change according to the customer’s
demands in the market.
Hilton Hotel is a hospitality industry base and has to make changes according to the
customers all the time so that they can satisfy their customers and make a profit and place for
themselves in the market. The headquarters are in Virginia, United States. They have 586
properties with 215,623 rooms and it is spread across 85 countries. The company’s type is
privately held company and the service areas of the company are worldwide.
The report is going to cover how strategic planning is affecting different functioning of
the company and performance metrics and key elements in managing strategic changes and
leading types.
MAIN BODY
1 Affect on successful implementation of strategies on business functions
Leadership
The leader of the company of Hilton has a lot of functions to play when there is a
strategic change in the company which will be for the customers or the employees themselves for
the better functioning of the company so that it is effective and efficient in the company. The
leader first has to make sure that all the employees of the company are listening to him or her so
that the changes in the company can be made properly and the changes can be seen in the hotel
because of the changes which have been made (Nieves and Quintana, 2018). There are going to
be a lot of people will be not willing to accept the changes in the company and the leader must

make sure that they understand the importance of getting the changes in the company which will
be good for the individuals and for the company. Leader must make sure that all the employees
of the company know that changes are important and are going to be healthy. In hospitality
industry there has to be changes for the employees as well because there is a lot of hard work
which is put in by the employees and there have to be additional change for them as well so that
they willingly want to work for the company (Lordkipanidze, 2018). The leaders must achieve
the objectives and goals of the company so that everyone can profit from it and that is a very
important factor which the leader must make sure that the team under them is working together
and in one direction to achieve the goals set. The leader has to be very good at decision making
for the team and must know how to implement the change and how they should be careful at
some points for doing that.
Structural Design
The pressure on the structural design of Hilton is high because the hotel wants to make a
lot of changes according to the customers of the company. It is very important for the company
to keep changing with the customers and the competition which is rising in the market. Before
designing a structural strategy for the company there has to be an analysis of the factors which
will affect the company from working (Ramphal, 2016). There has to be a target which is taken
up by the organization for the betterment of the company so that it can function better. Factors
like government rules and regulations have to be considered for the working of the company and
making plans for the company. There are a lot of factors of the hospitality industry which one
guest can like and the other might not therefore the company has to come up with strategic
planning for the company and that will help the company have a good name for themselves
within the customers section. The design of the structural planning is suppose to be implemented
when there is a surety in the people for the betterment of the company that the plan they have
decided is going to make a change in the company (Altinay, Paraskevas and Jang, 2015).
Information and Control Systems
Before taking any decision for the company the management must be sure that the
changes they are getting in the company is going to have a change in a good way for the
company and the company will benefit a lot from that decision (Elbanna, 2016). There has to be

a control on the planning and structuring of the plan when it is implemented and before so that
there is no mistake which can happen and that will affect the company in a negative way. The
information of the market of the present and the future must be taken out by the company so that
the changes in the company can be made accordingly for the company’s better functions for an
effective and productive working. The controlling in a company is required because there has to
be a check on the changes which have to be made so that the functioning of the company can
actually take place well (Madera and et.al., 2017). The control system has to be really aware of
the changes they are getting in or the planning of the changes before they are implemented so
that if the company can accept them and the changes are happening accordingly.
Human Resources
The human resource has to make sure that the changes which are coming in the company
are being accepted by everyone or not and if they are not being accepted then the human
resource must make sure that the management knows about it and the changes take place
accordingly (Bartlett, Johnson and Schneider, 2016). Human resource is the bridge between the
management and the employees of the company and if this bridge is not there then the company
can have great loses in future. The human resource department must make sure that all the
employees of the company are satisfied with the work they are doing in the company and that is
a very important factor. Hilton hotel’s human resource team is making sure that they are
fulfilling all the needs of the employees and the employees are doing everything possible for the
customers who are coming in the company. The human resource must have strategies to mentally
prepare their employees that there are going to be changes in the company’s functioning all the
time and the company must be careful of that (Chan and Hsu, 2016).
2 Different Performance Metrics
Critical Success Factors
There has to be a mission of the company which they need to achieve so that the
company can get a competitive advantage. There are few factors which have to be taken care of
so that the company can function better. These are the success keys, communication, planning,
team work, management, process, tools and skills. These success keys should go hand in hand so
that there is a growth of the company and there is one direction which the company works in so

that it is easier for the company to function (Claveria, Monte and Torra, 2015). It is very
important for the company to work effectively and efficiently and these factors must be taken
care of so that there is a growth of the company factor and since Hilton is having a long
experience in this field then it will be easier for the company to function better. Experience of a
company does give an advantage on these factors because they can plan and function better so
that the growth of the company can take place better and the company will not make error which
will affect the company in any manner (Evans, 2015).
Planning, processes, people, power and contingency strategy are few more factors which
are considered in this key success factor which Hilton is taking care of successfully as they know
how to go about with their decisions which the management is taking for the benefit of the
company, be it employees or the customers of the company. There has to be team work which
has to make the changes in the company come into productive work so that the company can
work and function effectively and that is very important for Hilton because of the competition
which is coming in the market in this industry (Buhalis and Leung, 2018). The communication
skills of the company is well maintained be it internal or external of the company and that is a
very important factor for Hilton because they are known for making the customers comfortable
in the hotel because of the communication they have with their guests.
Key Performance Indicators
These are indicators which tell a company is the changes are doing any change in the
company and through this the company can know the difference the change has made in exact
terms. There are feedbacks which are taken by mails or calls and the revenue changes the
company has had after the implementation of the changes in the company. There is supposed to
be a mission behind all the changes which are taking place in the company so that the actual
mission or objective can be achieved in actual terms. It is very important that the objectives
behind the changes must be met because otherwise the company will face a lot of difficulties
making the changes back to normal. There have to effectiveness measures and monitoring of the
key performance indicator so that the company can gain from it, if there is no measures and
monitoring of them then the changes will make no difference in the company and the company
will not be able to gain from it (Kuo, Chen and Tseng, 2017). The human resource measures the
employees and the company so that they can make the changes accordingly and they are being

used in the company. There are targets which the company needs to get and the changes are
made according to the trends therefore the targets in a company never get over because the trends
of the customers keep changing and that can make a company have a lot of pressure of working
to be the best.
The Balance Scorecard
There are aims and objectives which are set by the company for the executive and
managers of the company and keeping a check on them if they are doing their work properly or
not. The right work should be given to the right person so that the work can take place better and
that will help the company and the employees are able to reach their goals and aims properly.
There are a lot of strategies which are applied in Hilton and it is very important that all the
strategies are followed in the company so that it can function better and that is a very important
factor. The management has to be working as a team so that there is a balance and they can keep
the scorecard of the company’s functioning and what are the factors they need to focus on more
and which are the factors which need to be changed because the employees are not being able to
follow them. There should be one direction given to the strategies in the company so that the
focus of everyone is on the same motive. The fixture of financial and non-financial data related
items can be easily solved by this factor which will help the company in a lot of ways possible.
The communication in the company should be strong so that the company will be able to
function better because there are higher chances of errors when there is a miscommunication or a
message which is not passed and Hilton has faced that in the past therefore the company is all the
more careful about this factor so that the company does not get affected (Hassanien and Dale,
2019).
3 Key Elements
The changes which are taking place in the company are very helpful because that is
getting in a lot of customers in the company which is a very good factor for the company. Hilton
is making sure that the customers are getting everything they need so that they can fulfill the
needs of the customers. The company has to first understand the trends which are coming in the
market so that they can make the customers comfortable first with that factor and then they can
understand the customers wants and needs and expectations from Hilton so that the company will
be able to work on those factors. It is very important for Hilton to work on them all the time

because only then they will be able to make a difference in the market and there experience in
this industry will come in use (Kotler and et.al., 2017). Diagnosis of the problems or the factors
which are not liked by the customers is very important by Hilton because only then the changes
in the company will be able to come affectively. The customer’s needs and wants always keep
changing and due to increase in the income of the customers they want to spend more and get
more services so Hilton will have to provide the customers with extra services so that they can
grow better and make a change in the company faster (Peters and Kallmuenzer, 2018). The
employees will also want motivation to continue working in the company and in hospitality
industry the employees are the backbone and it is also very important to have loyal staff in the
company so that they can help the customers have more comfortable and satisfying stay in
Hilton. Technology changes has made the customers have more easier way of check in and
checkout of a hotel and Hilton is adapting to all the changes in the market like this change.
Employees work is also reduced due to using technology in the company which is making the
company function even faster and no paper work is required because technology can do the work
faster. Though there are a lot of challenges which were faced by the company because the
employees did not have technological experience and it is very important for them to learn this
factor and the employees were not ready to change but later the company successfully made the
employees understand the value of technology and made them get friendly with that device so
that the employees could work better (Hertzman, Moreo and Wiener, 2015).
It is very important for the employees to adapt to the challenges and changes in the
company because the competition in the market is increasing rapidly and that is making the
company not have a good name for them in the market. Sometimes the changes which the
company has made are not accepted but the company’s management has to do their best for the
employees to listen what they are saying so that the company can profit from it. If the employees
still do not listen to the changes in the company then the company must mold that change in a
way that the employees like the changes and is suitable for the employees (Soulard and et.al.,
2018). There is no end to the change in the market and due to the competition in the market the
companies are changing all the time to make a profit and to have a competitive advantage in the
market. There are new innovations and changes or products coming in the market all the time
and it very important to give a better service or product to the customers when they come to their
company. To give better services and products the innovation and creativity must be used so that

the company will be able to make the changes in the company and the changes can only be made
when there is a strategic plan in front of the company so that they can do better in the market.
The management of Hilton is very careful before making any plan or any change in the company
because they have understood the importance of all the departments in the company therefore
they consult everyone in the company before taking any decisions for the company. The
departments of the company are having very well trained employees so that the functioning of
the company can happen faster and better (Camilleri, 2018). The changes are adapted by the
employees well because they are knowledgeable about the market and the trends which are
changing in the market. The entire company’s employees and management take the decision for
the company together because there are a lot of innovative and creative ideas which come out of
it when everyone is asked for their opinion on situations. That is helping Hilton has a great
advantage in the market and that is also a very important factor for the company and their
greatest strengths in the market as a company.
CONCLUSION
Hilton is having an experience in this industry from a long time and this company has
understood the importance of the factors which the company is going to work upon and what are
those factors which the employees will have to be trained for the effective working of the
company. Hilton is changing and adapting the changes in the trends all the time and the
satisfaction of the customers is higher than the other companies in the competition. The company
has made a lot of mistakes in the past and from those the company has learnt a lot and is not
letting those repeat again because that will not make the company grow more. The latest strategic
change which is made in the company is made after taking the opinion of all the employees of
the company and that is the technological help in the hospitality industry and that is a very
important factor for Hilton.

REFERENCES
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