How to Lead Effective Change Management in the Hotel Industry

Given that change management is such a broad field, best practices vary depending on the perspective. Effective change management in the hospitality industry should do what the service industry does best: put people first. People—in this case, employees—are invaluable assets. As human capital, they represent a substantial resource. As local brand ambassadors, they shape an establishment’s reputation. People-centred leadership has taken on renewed importance. Arguably, this is true in any industry. However, it is particularly relevant in the service industry: if the success of service delivery lies in the hands of those who provide it, so too does the success of change management.

The two pillars of effective change management

Effective change management requires managers to face an uncomfortable reality head-on: 70% of all change efforts fail. Why? The main pitfalls include employee resistance, communication issues and the implementation of new technologies. Two of these three challenges are people issues. Clearly, for a change process to endure, people-related issues must be handled with care. Therefore, we must approach change management through two pillars: defining the change process on the one hand and managing people-related issues on the other.

Defining the change process

A discipline in its own right, defining the change process may include:

• Assessing your organisation’s current state
• Benchmarking against the best in your category
• Drafting a timeline and planning the implementation phases
• Clearly defining your end goal
• Keeping track of the DICE factors: duration of the project, performance integrity, commitment from management and staff, and the additional effort required.

Managing people-related issues

In an effort to overcome people-related challenges, effective change management requires managers first to recognise the heterogeneity of their target audience: not all employees are the same. The Five Types of People in Organizational Change™ model can be a good place to start, according to which people are divided into five categories:

1. Pioneers who embrace change
2. “Yes to everything” people who feel obliged to adapt to change
3. Followers who wait to see whether change gains popularity
4. Sceptics who trust data and need to reach their own conclusions before getting on board
5. “CAVE” people (Citizens Against Virtually Everything), who do not care about anything and will not join in

Therefore, choosing whom to start with when implementing change carries considerable weight. So does understanding how to leverage the involvement of different staff members for different purposes. This leads us to the need for tangible advice on what makes a good change plan and, in turn, a good leader.

An effective change management plan

A good change plan needs to understand and consider the following points:

How the forces for change must outweigh resistance to change

Your reasons for pursuing change will need to be strong enough to withstand any potential resistance. Make sure you are clear about exactly why you need a change and why it has to happen now. Consider both the end result and any undesirable trade-offs. Resistance can manifest itself in a variety of ways, ranging from a gradual decline in output or discreet disputes and discontent to more overt displays of dissatisfaction, such as strikes. It has become clear that what employees often resist has less to do with the technicalities of the change you have in mind and more to do with what it will mean for them socially. Organisational change often affects how employees can interact with one another, which can alter the foundation on which working relationships and friendships are built. Involving employees in the change process can help counter some of the hostility that may arise. However, for this to be effective, it must go beyond simply handing out a task list. It must involve an openness to discussion and working with the established networks within the company, rather than against them.

How organisational networks work

While official organisation charts, job titles and job descriptions offer an indication of who does what within an establishment, the reality is often far more nuanced. When we consider both formal and informal relationships, we see that people form natural networks, seeking out colleagues who help them do their jobs. Whether by providing the right information at the right time or simply helping to keep productivity high by making coffee breaks even more restorative. Keep these formal and informal ties in mind and try to identify those individuals who serve as crucial conduits for the exchange of ideas and information (known as “nodes”), as well as those who build bridges between different groups of employees (“knowledge brokers”). People analytics can help leverage their natural role within your company to accelerate change adoption and limit costly disruptions.

How to plan effective communication

Clear communication is essential to any effective change management process. This means providing enough information about what you hope to achieve by implementing the change. This is best done in terms of desirable outcomes. Breaking the overall goal down into deliverables for middle managers, rather than predefined tasks, allows those with insight into how things work day to day to take the initiative and think for themselves. Those in the know can often devise better, smarter and less expensive ways of delivering in practice what you seek in theory. Do not be tempted to conceal the scope of the change you are pursuing. This will only lead to more difficult discussions and resentment in the future. Also remember that communication is much more than press releases and internal memos. Your actions as a leader also send signals to your employees. Demonstrate the importance of the change management plan by allocating sufficient time and other resources to any emerging complications. Make it a priority to address any shortcomings or conflicts that can be overcome. Model the behaviours you are asking for, and adjust the agenda of any senior team meetings or board discussions to reflect your new priorities. Finally, make sure you measure progress in a way that enables employees to understand which results matter most. Expect your team to react to change with certain emotions. While it is by no means our intention to minimise the powerful and, frankly, incomparable impact that actual grief has on people, it is worth noting that organisational change can cause significant upheaval in people’s lives, requiring them to let go of the old and embrace the new. The stages people need to go through are similar to those of grief:

1. Denial: your team may assume that your drive for change will fade away or end after a few pro forma adjustments here and there. Apply increasing pressure and go deeper into the deliverables to move beyond this stage.
2. Anger: address anger with a greater emphasis on reason.
3. Bargaining: employees may seek a compromise. Continually raise your standards through specific measures and accept incremental progress.
4. Depression: when employees struggle with the realities of change, practise empathy and celebrate any intermediate successes. Some employees may choose not to complete the journey with you, in which case letting them go may be a necessary evil.
5. Acceptance: as your change efforts bear fruit, acceptance may begin to flourish. This is not, however, the end of the road. Keep track of your indicators to ensure that the change is having the desired effect.

How to respond to change personally

Develop an awareness of what you expect from your employees and reflect on the impact that change has on you. Use this unique opportunity to reinforce what kind of leader you are. You are a leader who values people. Because effective change management is in your hands, do not hesitate to ask me for help if you need it.