THE CHALLENGE
The core challenges presented by this joint venture centered mainly around bringing hotels together into a single entity, facilitate group reporting, and ensure consistent application of best practices across all of the properties. Specific issues that needed to be addressed included:
- Integration of two very different business cultures, led by a foreign partner;
- Data governance, specifically the need to merge distinct HR systems lacking consistent data;
- Implementation of a new HR and payroll system, including outsourcing of the function;
- Fix a lack of controls resulting in security risks.
OUR APPROACH
Because the critical success factors of this engagement would be to overcome cultural and institutional resistance among the various properties involved, Ascendant focused on three key components in its approach to the project: effective and flexible communications, consistent change management, and persistence in implementation.
- Deliverable: Communications and Guidelines
The Ascendant team established an on-site presence, providing communications in both English and Japanese, and managing the announcement of the business integration verbally, in person, and in writing. Guidelines for the integration process were drawn up, and were provided to both client and Ascendant project team staff. - Value:
This flexible yet comprehensive communications management plan was significant in overcoming the resistance to change, which was widespread, and in allaying concerns about outsourcing and system changes, which were plainly unwelcome by much of the front-line staff.
- Deliverable: Implementation of Integrated Systems and Outsourcing
After securing the buy-in of key leaders in the organization, Ascendant proceeded to implement business integration and outsourcing measures, starting with the brand’s flagship hotel. By delivering a successful implementation at the flagship property, we knew that we could then go to the other hotels and motivate them to move ahead with similar efforts. We also leveraged compliance requirements as a means of shielding client management from any disruption brought about by these changes. - Value:
Again, internal resistance was a significant challenge, but by gaining the support of top decision-makers, and making sure both sides were left with key “wins”, we were able to get the client working team on board with our efforts to move ahead with the integration, ensuring a smooth and successful implementation. The entire payroll system was outsourced, and business continuity and compliance were achieved.
- Deliverable: Ongoing Support
The Ascendant worked to build a consistent data flow, in both English and Japanese, and to implement new types of management reporting based on that data. We also continue to meet with the client on a monthly basis, to rectify any new issues and to help them implement similar processes at new hotel properties as they come on line. - Value:
Through this engagement, we have delivered reductions in the cost of maintaining internal systems, which pleases investors, and beyond the core engagement, we continue to support the client in its efforts to expand these initiatives, which pleases management.
