Group Members:

Fatima Zehra Hina ShirazShafaq Anwar Shaffia MansurRamla Sadiq Zaakia Sajjad

Ahmed Javaid

Company BackgroundTimelinePre – 19871987-1993Signs of TroubleCorporate Decline1993 and onwardsRecommendationsRoad map to Future

Midscale hotel chain(1967, France)

Part of Accor Group

Innovation 60s- Bedroom Features 80s- Breakfast Buffet 90s- Contemporary Art

www.innovationlabs.com/Novotel_Story.pdf

Unfamiliarity with industry Innovations

Uniformity Pioneer in Hotel Industry Poly-valency Strategy of Out-of-Town Hotels Location Blend of Features

Standardization was a key!

Common worldwide strategy

Economies of scale

Timeline

Slipping Quality Standards Introduction of 95 Bolts

Change in Management Structure

9-layered structure

Head office 9th level President of Accor

8th level President of Novotel

7th level Director of operations

6th level Regional managers

5th level Directeurs delegues

NOVOTEL hotel units

4th level General managers

3rd level Sous-directeurs

2nd level

Heads of depertments

1st level Novotel staff

Change of Industry and Business Context (80s and 90s)

Effect: Change in Basis of competition

Required: Change in both revolutionary and evolutionary developments

Globalization of services: some implications for Theory and Practices by Yair Aharoni, Lilach nachum

INTERNAL

95 Bolts (Rigidity) Staff inflexibility Increased response times No refurbishment Complacency Rapid expansion, slow

innovation Favorable market

conditions No refurbishment Icarus paradox

Durability Inertia

EXTERNAL

Economic Downturn Competition increase Political Instability Switching Customers

Industry Dynamism Imitation

Poor management Overexpansion Inadequate financial controls High costs New competition Unforeseen demand shifts Organizational inertia

1987 – 95 BoltsStifling of Individual

Initiative Micromanagement

State of Inertia

Late 1980s – 9 layered

management structure

1990-1992 –Competition ,

Political Instability Recession

Changing the leadership Redefining strategic focus Improving profitability

Novotel by Calori, Baden-Fuller, Hunt

New Co-presidents▪ Complementary personalities

Re-assembling of core management team

Flatter Organization Structure

Brizon Pelisson Plan – Re-Novotelization

New corporate values Cost and price cutting

Computer analysisPoly-valencyAssessment Centers

• Tighter and Leaner Operational Centre

• Anthropologists consulted• Marguerite and sun relationship

• Redesign of logo • Abolishment of Bolts• War Room (On the road)• Assessment of GM’s • Changes in internal structure • Progres Novotel

Meeting the Future (Les Recontres de Futur)

Cross meetingsBrainstorming sessionsRegular bi-directional meetings

• GM role as of a coach • Increased autonomy & responsibility• Empathy for colleagues’ work • Freedom to innovate • Team work initiated • Inculcation of Intangible resources• Housekeeping project• Marketing initiatives

Revisiting of Customer-focused philosophy

Commitment to change (Leadership) Progress Novotel Empowerment of employees Flatter organization Decision makers were placed as close

as possible to clients

4 building blockshttp://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=C674FB348ABFAB25DC086C916A323486?

contentType=Article&contentId=842437

• Response to Changing Business Contexts

• Continuous Review and Monitoring of Positioning

• Obsolete Capabilities

The Dynamics of International Strategy by Segal-Horn, Faulkner

OBSERVE THE PAST, RESHAPE THE FUTURE

Effective change management program Un-freeze, Change, Re-freeze Recognition program (Reward System) Management By Objectives (MBO) Investment in;

New product development Marketing Acquisition of new customers

Long term success of adaptation: evidence from finland by Erkki laitinen

The Seven-C’s of Change Choosing a team Crafting the vision and the path Connecting organization-wide change Consulting stakeholders Communicating Coping with change Capturing learning

Nextup 2015 Help Novotel understand what the future

will look like in 2015 Produce as many ideas as possible Synthesize the ideas in a new statement

of Novotel Strategy Identify the main axes on which Novotel

should concentrate its innovation efforts

www.innovationlabs.com/Novotel_Story.pdf