Creating Critical Capabilities

A few years ago, an international hotel company found themselves in a crisis.  It had recently de-merged, faced bloated overhead costs in the competitive hotel industry, and was confronted with reduced business and vacation travel due to the economic downturn and the SARS crisis.  In addition, the company was undergoing a brand name change, battling a hostile takeover attempt, and was being downgraded by analysts.

The company’s CEO initiated an “organization review” and invited RBL to join them.  The RBL Group collaborated with their leaders to engineer a significant change transformation towards a high-performance organization.  Results of an Organizational Capabilities Audit identified two capabilities that were needed to achieve world-class status in order for the company to achieve future success: collaboration and speed.  The team designed and executed decisive, wide-ranging actions to develop world-class status in these targeted areas:
          • reorganizing to eliminate regional budgetary and operational
          independence,
          • streamlining differences in regional operations and aligning/centralizing
          finance, human resources, and corporate functions, and
          • creating a shared services center. 

• Stock price rose by 71% in less than a year
• Operating costs were reduced by more than $100 million/year
• Employee surveys showed a dramatic increase in morale and confidence in company leadership
• Quality of management was no longer a matter of public debate