Case Study One – Resort Rescue
The Client - The owner of a five star 142 suite all-inclusive resort, with 5 food & beverage outlets, a conference facility, an extensive sports, leisure and spa complex; in the Caribbean.
Background - The Resort enjoyed a successful ten year period of trading and was one of the most successful luxury all-inclusive resorts in the Caribbean. Management became over-comfortable and failed to maintain control of key elements leaving the business vulnerable. This weakness presented itself at a time of economic downturn combined with heightened trade union activity. Albeit with the best possible motives, the owner involved himself in background issues “muddying the waters”. He personally awarded unreasonably high pay settlements that the business could not support, jeopardising the resort's very existence and endangering the wider range of family business interests.
Project Scope and Implementation
- Immediately on joining the resort, the team carried out an urgently necessary analysis of the realities of the trading position.
- They advised the owner of the unavoidable and painful need to close down, making 360 employees redundant - in a society without social security.
- A two-month closure ensued which involved substantial, intensive reorganisation and refurbishment of the property.
- There followed an exercise which resulted in the rationalisation of cost sharing and joint use of skills within the recently expanded, small collection of Hotels and Resorts to which this property belonged.
- All Managers and Team leaders were carefully trained in the relationship of their work to departmental and company budgets, made intelligent by a constant regular feed of financial and performance data.
- A new design for all operating and manning systems was created, reducing the earlier staff complement by 30%.
- The new way of working was based on careful selection and development of small, multi-skilled teams led by supportive, standards-based team leaders and managers.
- The Team planned and led the recruitment of 240 new employees, most of whom were novices in the industry - the majority very young.
- This vigorous project was built around carefully designed training for all staff in technical skills and in the vital knowledge of How We Work Together in the new company.
- The design and implementation of an innovative computerised personnel system was part of the new plan.
- The banner Clarity, Communication, Control headed the design and production of tailor-made, clear, inclusive leadership programmes and materials, a company-wide system of team briefing and 1:1, regular support and target setting sessions for all employees.
- The resort enjoyed a successful re-opening:
- on schedule;
- within budget;
- good guest evaluation;
- well motivated happy staff and successful profitable trading;
- a model for the other properties in the group.
- Over a three year period, these actions made a positive contribution
of some $1.3 million to the bottom line of this revitalised resort.
Moda Hotel & Resort Management Ltd. Registered in England and Wales. Reg No. 6848306
Registered Office: The Moda House, 1 High Street, Chipping Sodbury, Bristol BS37 6BA