1. You manage a hotel resort located on the South Beach on the Island of Kauai in Hawaii. You are shifting the focus of your resort from a traditional fun-in-the-sun destination to eco-tourism. (Eco-tourism focuses on environmental awareness and education.) How would you classify the following projects in terms of compliance, strategic, and operational? a. Convert the pool heating system from electrical to solar power. b. Build a 4-mile nature hiking trail. c. Renovate the horse barn. d. Replace the golf shop that accidentally burned down after being struck by lightning. e. Launch a new promotional campaign with Hawaii Airlines. f. Convert 12 adjacent acres into a wildlife preserve. g. Update all the bathrooms in condos that are 10 years or older. h. Change hotel brochures to reflect eco-tourism image. i. Test and revise disaster response plan. j. Introduce wireless Internet service in café and lounge areas. How easy was it to classify these projects? What made some projects more difficult than others?
Most students classify the projects as follows:
Compliance: d., g., i. Operational: a., c., j. Strategic: b., e., f., h.
Most students claim it was not too difficult to classify the projects other than they had to make judgment calls given the limited information. In real life they would have such information. Debates occur around whether converting the heating system to solar polar was an operational necessity or to fit the eco-friendly image. Likewise, launching the promotional campaign with Hawaii Airlines would be considered strategic if it promoted the eco-tourism theme, otherwise it could be consider operational.
What do you think you now know that would be useful for managing projects at the hotel?
By classifying the projects, prioritizing is more easily done. Different selection criteria can be used for selecting strategic