The Novotel Case

This plan provided for the reconstitution of the firm into a virtually new company that will be prepared to function competitively in the emerging environment within which the company must operate.
Les Recontres de Futur incorporated many important elements. Among the more important of these elements are (1) decentralized authority and responsibility, (2) a customer-centered focus, (3) employee empowerment, (4) a renewed and more open organizational culture, (5) a reengineering of how the firms conducts its business, (6) a restructuring of the firm's organization to better reflect how the firm will function in the future, (7) a redesign of both public areas and guest rooms in the firm's properties, (8) the linking of properties through intraorganizational networking, (10) the creation of Clubs de Reflexion to stimulate employees to innovate, and (10) the creation of Groupes de Progress to monitor the status of the firm in relation to Les Recontres de Futur.
Each of the 10 major elements of Les Recontres de Futur are of equal importance to the future of the firm. Some of these elements, however, are more controversial than others, such as the reengineering of how the firms conducts its business. Other elements tend to be sources of problems in their own right unless they are fully explained to the firm's employees and unless the firm's employees are trained to effectively implement them. A Global competitiveness is forcing companies of all sizes to go to ever-greater lengths to improve customer satisfaction (Northey & Southway, 1993). The Astonish the Guests campaign at Novotel represents one step toward this goal.
The answer for was to "change the culture" by reorganizing to support reengineered processes (Moad, 1993). For example, TI reorganized into "centers of excellence. Rather than focusing on supporting a single functional department or specializing in a single technology or platform, these centers now do reengineering on a project-by-project basis. TI also invested heavily in training for workers" (Moad, 1993, p. 25).
A central premise of business process re-engineering is that the goals are so ambitious that they can only be accomplished by completely rethinking and redesigning the way work is performed and the methods by which outputs are delivered. The precise definition of business process re-engineering is somewhat fluid; however, there is a general understanding that reengineering involves revisualizing and redesigning an organization's core work processes to accomplish very dramatic and rapid improvements. Such redesigns focus primarily on: lowering operating and support costs; and improving service delivery time and response levels; and increasing product and service quality levels; and enhancing employee involvement in reaching organizational goals (Hyde, 1995). Romney (1994) emphasized the need in BPR to organize around processes and outcomes, as opposed to tasks and departments.
At the time of this case, late-1993 or early-1994, Novotel management believed that the company was making good progress in relation to Les Recontres de Futur. Management thought that the firm's primary concern at this time was to assure that the momentum generated by Les Recontres de Futur was maintained at the firm. Top management at Novotel, however, had recognized something that had yet to be imparted to the firm's employees.

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