What would you do?

A family hotel chain had expanded to a size where they now owned 20 four star hotels and 10 three star hotels and the company was owned by shareholders. A decision was made to sell the hotels and there were several potential purchasers but as time went on, negotiations failed and uncertainty was the one clear message that employees were giving to their managers. The directors and senior managers dilemma was that the sale of the chain needed to happen and this was looking to be a long process. Meanwhile uncertainty amongst employees threatened low morale, high staff turnover and an adverse effect on standards affecting sales and business growth. All of these factors would make the chain a less attractive proposition for prospective purchasers.

If you were a director what would you do?

You may want to jot down your answers before reading on and then compare them with the decisions of the directors:

The directors launched a change strategy that included:

• Effective communication - that was frequent, transparent and appropriate. For example they communicated in one to ones, management cascade meetings and regular review meetings where directors attended, answered employee’s questions and addressed concerns.
• Team building – events – that focussed on change management, personal confidence and resilience.
• Training – All managers received training in change management and effective communication.
• Support – An open door policy for anyone who wanted to share concerns.
  Help for leavers – Employees who did decide to leave were given help and support – this had a real positive impact on colleagues who stayed during the time of change.
• Business as normal – Operating business as normal, striving for excellence, customer service and profit kept employees and their managers focussed on what they could do instead of dwelling on what might be.

The strategy was successful and during a long process of sales and negotiations the business performed well and staff remained motivated.

Your change situation may be different to our case study but the principles are the same.

Let us have your comments on the case study

Forthcoming courses:

Introduction to Human Resources - 17 April 2012 - Birmingham

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