The Plaza Inn
INTEGRATIVE CASE 7.0
The Plaza Inn
OVERVIEW
David Bart, General Manager of the Plaza Inn, received a letter from the hotel association of which the Plaza Inn was a member. The letter stated that the hotel’s service levels did not measure up and that the front desk and reservations, two critical departments, received the worst ratings among all of the association’s properties. Unless the management of the Plaza Inn could submit a plan for guest service improvement and pass the next inspection scheduled in six months, its membership would be rescinded. In fact, at the Plaza Inn, the inability to efficiently expedite phone calls and respond to guest needs was troubling to Bart, not only from a guest service perspective, but also from the standpoint of lost revenue.
DISCUSSION QUESTIONS TO ASSIGN
1. What structural change is indicated at the Plaza Inn?
2. How could the Plaza Inn develop a collaborative strategy?
3. How could technology help solve the problems at the front desk?
4. What changes in culture are needed at the Plaza Inn?
DISCUSSION
1. What structural change is indicated at the Plaza Inn?
The Plaza Inn was reopened in 1983 in a stable environment with little competition. However, the environment became more dynamic and uncertain. The end of David Bart’s first year at the Plaza Inn was marked by the outbreak of the Gulf War. During the first quarter of 1990, occupancy hit an all-time low of just 40%. As environmental uncertainty increases, the Plaza Inn has to become more organic and shift to a flexible, decentralized structure that emphasizes horizontal collaboration, widespread information sharing, and adaptability.
The Plaza Inn needs to be redesigned into a learning organization. Instead of David resolving all the problems, the employees would identify and solve problems. The structure would be created around horizontal workflows or processes rather than departmental functions such as sales, catering, F & B,
The Plaza Inn
OVERVIEW
David Bart, General Manager of the Plaza Inn, received a letter from the hotel association of which the Plaza Inn was a member. The letter stated that the hotel’s service levels did not measure up and that the front desk and reservations, two critical departments, received the worst ratings among all of the association’s properties. Unless the management of the Plaza Inn could submit a plan for guest service improvement and pass the next inspection scheduled in six months, its membership would be rescinded. In fact, at the Plaza Inn, the inability to efficiently expedite phone calls and respond to guest needs was troubling to Bart, not only from a guest service perspective, but also from the standpoint of lost revenue.
DISCUSSION QUESTIONS TO ASSIGN
1. What structural change is indicated at the Plaza Inn?
2. How could the Plaza Inn develop a collaborative strategy?
3. How could technology help solve the problems at the front desk?
4. What changes in culture are needed at the Plaza Inn?
DISCUSSION
1. What structural change is indicated at the Plaza Inn?
The Plaza Inn was reopened in 1983 in a stable environment with little competition. However, the environment became more dynamic and uncertain. The end of David Bart’s first year at the Plaza Inn was marked by the outbreak of the Gulf War. During the first quarter of 1990, occupancy hit an all-time low of just 40%. As environmental uncertainty increases, the Plaza Inn has to become more organic and shift to a flexible, decentralized structure that emphasizes horizontal collaboration, widespread information sharing, and adaptability.
The Plaza Inn needs to be redesigned into a learning organization. Instead of David resolving all the problems, the employees would identify and solve problems. The structure would be created around horizontal workflows or processes rather than departmental functions such as sales, catering, F & B,