Improving Organizational Communication through CFM - Essay Example

? Improving Organizational Communication through CFM Anand A. Patel MGMT-591 Richard Swersey August 13th, IMPROVING ORGANIZATIONAL COMMUNICATION THROUGH CFM Introduction Conway Inn & Hotel is a privately owned company in which I work as a manager. The establishment has been up since 1975 with its major stated aim being to make the patrons and guests feel at home. After the hotel was bought out in 1978, it was franchised into Friendship Inns, although this was later changed after the hotel achieved an excellent customer flow. The company, therefore, did not need to pay franchising fees, converting into an independent hotel. As a Better Business Bureau accredited enterprise beginning from mid-2008, Conway Inn & Hotel has been recognized for its commitment to resolution of all customer complaints in good faith. The establishment, nestled in Panhandle, Texas, has a living room style, eating area, a traditional pub area, as well as comfortable fireside sofas. The establishment also has an outdoor area for guests when the weather is permissive. In the hotel and inn areas, there are blackboard areas that offer daily seasonal specials, classic pub favorites, as well as some of the establishment’s own signature dishes. The bar area has a great wine list while also serving a selection of ales, all available by the glass and the bottle. However, over the last year, Conway Inn & Hotel has been suffering from decreased customer flow. Customer flow is the number of customers who pass through an establishment. It can also be defined as the pattern of clients as they come into the establishment and access services offered by the establishment. In order for Conway Inn & Hotel to implement effective customer flow management, the establishment will seek to become a high performance organization, which will see it outperform its rivals consistently. Improvement in customer flow will see Conway Inn & Hotel improve customer satisfaction, profitability, market share, and revenue growth, as well as the effects, which these factors have on the customer flow (Schermerhorn, Osborn, & Uhl-Bien, 2011). In the paper, there will be five interrelated human capital areas, which will be studied: market, culture, talent, leadership, and strategy. Problem Statement Conway Inn & Hotel has gone through reductions in customer flow in the last two and a half years, which has seen cutbacks in some of the services offered by the organization. Because of the reduction of customer flow, many customers have stopped frequenting the establishment, which has occasioned small-scale staff layoffs. Consequently, the organization has seen a decrease in revenues, which has also affected the confidence of the employees in the organization’s capability to keep them employed. An increase in customer flow and subsequent transition into a high performance organization can go some way in resolving this issue. The organization would also like to explore the possibility of franchising into Best Western. The customer flow at Conway Inn & Hotel has slowed down, which can be seen by reviewing the registration logs that are meant to alert the organization on dropping rates of customer flow. The establishment has been popular with the local population, as well as visitors travelling through the town because of various amenities offered, such as cab services, free Wi-Fi connection, and refrigerators in the rooms. The downturn in customer flow, however, has seen the organization cut back on several services, which must be maintained if they are to have a competitive advantage over their competitors. There have been several attempts to improve on customer service, although the organization has been faced with difficulties with this because of the reduced customer flow. Therefore, this analytical research paper will seek to answer the question: “How can Conway Inn & Hotel transition into a high performance organization?” The best way to do this, as will be argued, is through customer flow management, or CFM. Literature Review Customer flow management is important in helping organizations adopt customer-centric perspectives. The process should begin when a customer arrives at the establishment for services. He contends that customer flow management stresses the importance of monitoring and planning of the clients’ entire visit, as well as the capture of information and data at every contact point with staff members or even at the self-service points (He & Jewkes, 1995). In addition, customer flow management has the ability to link every point of service together, which should help the manager to comprehend the dynamics of the clients’ visits. Customer flow management is able to link vast information about the customers in customer relationship, management databases, and real time activities that target, as well as the influence, the clients present within the organization’s establishment (He & Jewkes, 1995). The customer flow, management approach is significant in the short term because it has the ability to improve productivity and sales by almost thirty percent (Yuksel, 2001). It also leads to cost reductions of up to thirty percent through ensuring that the right client is able to be at the right place at the precisely right moment, whereas also getting the service they require from the most appropriate staff members. CFM also acts to up staff and customer satisfaction through the reduction of perceived and actual waiting time, whereas creating an environment that is relaxed and characterized by a fair and controlled waiting process. CFM also has the ability to generate insights and data that the organization can use to drive business improvements with a perspective that is focused on the mid to long-term (Yuksel, 2001). The empirical evidence from those organizations that use customer flow management, such as a public service centers, hospitals, banks, and retailers is overwhelming proof of the effectiveness of customer flow management (Forrester, 1976). Over time, the continued and increasing use of customer flow management has proven its suitability in several ways. First, it is well developed, having been in existence and under continued development for over twenty-seven years. It is also market independent with application in more than one hundred and ten countries. The process is industry-independent too, having been applied in different sectors with positive results, such as the healthcare sector, the public sector, banking, and retail. CFM is also thoroughly tested with over forty thousand solutions that can be implemented worldwide, whereas it is also accepted by users across the world with over one and a half billion users estimated to go through the systems each year (Forrester, 1976). In the case of hotels, they need to be market oriented if they are to implement successfully CFM and become successful performers (Radic, Peric, & Berecic, 2010). They will also have to contend with the fact that hotels need to satisfy the needs of clients through improvement of structure and quality. In order for an establishment to meet the clients’ needs and wants and meet the objectives of its business, they must combine various elements of the marketing mix to be successful in serving its customers. To apply effectively CFM, they should seek to use interactive and internal marketing techniques. Customer satisfaction is at the center of CFM, and it can be assured through interactive and internal marketing (Radic, Peric, & Berecic, 2010). E-CRM is an important factor that should be exploited, especially in the hotel industry. The internet is useful in the verification of how customer relations management is being carried out within online operations to ensure that it is utilized for more than basic information, such as hotel reservations and provision of information to the clients (Luck & Lancaster, 2003). A majority of hotels in the industry use the internet to provide their clients with information, instead of collecting information using the internet. Most hotels have only implemented few E-CRM elements with some indicating that there was no intention to be led online by E-CRM. While there is a general awareness of the Internet’s strategic potential, most hotels are not implementing any of the knowledge already in the public domain with regards to E-CRM. Hotels in the UK, for example, did not take advantage of opportunities presented by E-CRM (Luck & Lancaster, 2003). Most hotel establishments feel that they are properly managing their operating expenses, although they felt that they were missing marketing expenses (Green, 2013). There are also addresses the costs of attracting the client, getting reservations, and getting the clients to visit the hotel again. In order for a hotel to carry out a proper diagnostics channel audit, they must determine their reservation costs; establish what their optimal channel mix is, and determine the hotel’s marketing and sales efficiency (Green, 2013). Analysis Customer-flow management methodology should help Conway Inn & Hotel to navigate a wide array of issues by ensuring that they begin to solve their problems using the correct prerequisites, whereas also choosing the right opportunities that they should explore further (Tavitiyaman, Zhang, & Qu, 2012). Without taking this structured approach to the problem of customer flow, they risk first choosing from the wide array of opportunities that are available to them before adapting their organization accordingly sans assessment of the most appropriate ones from the perspective of the particular business. CFM methodology is a specific set of procedures that ensure the flow of clients, as well as their experience, is optimized from the perspective of the organization. This methodology has three steps, and each needs to be considered thoroughly in order to get a satisfactory result. The first step involves mapping the current CFM process target and defining it with the target process defined as the organization’s optimal process, considering the manner in which it affects all key stakeholders, as well as the indirect and direct impact on the organization’s key performance indicators. In the second step, if the target process defined deviates from the solution as it currently is, the organization should find a solution that aids them in achieving the target processes that they want to define and implement (Tavitiyaman, Zhang, & Qu, 2012). Finally, since steps one and two are insufficient for some companies in the achievement of targets and objectives, the real power of CFM comes, from its use, to gather and store data on customer flow. This is the third step, and the use of this data and information can generate insights on the organization’s process and clients. Every improvement of processes at Conway Inn & Hotel must begin from their current situation, which is the poor flow of customers. Understanding the merits and demerits of the current process should be the basis of identifying areas for improvement (Johanson & Cho, 2009). The key performance indicators should be the organization’s basis in defining the target CFM process. While CFM tends to give possibilities for the achievement of increased satisfaction among and staff, productivity, cost reductions, and sales growth, it is unavoidable that Conway Inn & Hotel will prioritize some of the issues. Besides the key performance indicators, Conway Inn & Hotel should be able to understand how the different processes will affect the stakeholders. The same customer group may perceive two identical solutions differently depending on the environment and situation that they are used in. Ultimately, this will have an effect, both directly and indirectly, on the organization’s key performance indicators (Johanson & Cho, 2009). Mapping the current CFM process and defining it may seem trivial since organizations may feel they already understand the process and have experience of a preferred solution, and may seek to skip this step and go directly to the process they have already experienced and its implementation. It is essential to understand the underlying assumptions that the two situations could have similar key performance indicators and clients with similar preferences, as well as locations with similar possibilities of design. However, if the assumptions are invalid, there is no guarantee that it will work in the current situation (Johanson & Cho, 2009). After the definition of the target CFM process and the identification of gaps between it and the current process, the challenge becomes taking control of customer flow to narrow the gap and attain the targeted process. Services for improvement include reviews after implementation, as well as management and staff training (Tavitiyaman, Zhang, & Qu, 2012). While CFM’s initial effects are initially high, however, its effect decreases after time. Reviews after implementation reveal that, whereas staff and managers are quick to realize the benefits of CFM, natural turnover of staff decreases their understanding of the implemented solutions over time with poor use of the possibilities. To prevent this from happening, it is important to implement the solutions, train staff, and monitor the solution’s effects. Therefore, reviews after implementation and regular training must be implemented as part of the solution (Tavitiyaman, Zhang, & Qu, 2012). Finally, the processes must be developed in a way that captures the potential from process reevaluation, analysis of data, and insights (Morieux, 2011). Continuous process re-evaluation can lead to insights for the improvement of business and customer flow. Data and information gathered and analyzed is called management information and to get full value from it requires additional involvement and commitment from management. Simple CFM processes can be done visually using simple manual means of measurement. Management and staff may know the customer flow well enough for them to describe it accurately, by heart or they could count waiting customer numbers and measure waiting time for individual clients. In situations that are more complex, such as at Conway Inn & Hotel, a more structured approach is required. For example, the CFM solution could gather data and store it on the process of CFM. The manager could then use it, as a tool, to understand and improve current processes (Morieux, 2011). Solutions The process of CFM is central to the resolution of Conway Inn & Hotel’s problem with customer flow. In addition, it is only when they fully understand it will they maximize the organization’s benefits (He & Jewkes, 1995). No single solution is optimal for all hotel service providers and the solution will be dependent on Conway Inn & Hotel’s key performance indicators. First, Conway Inn & Hotel should start CFM before the clients visit their establishment physically. They should try to place their counters in a manner that it is not the first thing clients see when they come into the establishment. Seeing cash registers simply reminds the client that they are there to use their money, which forces them to engage with the salespeople prior to deciding whether they like the establishment. Reducing the amount of time that clients have to spend engaging the salespeople positively impacts their experience (He & Jewkes, 1995). This can be used as a tool to control customer flow away from areas that are crowded. Conway Inn & Hotel should also ensure that clients are placed in the correct queues, stressing the importance of segmenting different customers in various queues if it is possible. Therefore, customers who have extra complex needs will be managed as a separate entity, which will reduce the risk that they will block other customers, which could have a negative impact on the experience of service for other customers (Yuksel, 2001). Another possibility is the segmentation of customers according to attractiveness. Customers whom Conway considers as important can be positioned at the front of the queues. Depending on how complex the segmentation will be, the entry point for the queue needs to be differently designed, whereas ensuring that the customer feels and knows that they have joined the line correctly. It would also be advisable for Conway Inn and Hotel to create aisle space that allows the customer enough space to navigate, but also narrow enough to give them a chance to take in the improved ambience at the establishment. If the aisles are made too big, they will encourage clients to move quickly through without time to take in the ambience. They should consider improving an access for clients with special needs and disabilities (Yuksel, 2001). For instance, aisles, whereas narrow, must not be cluttered to allow wheel chairs to pass. Conway Inn and Hotel should use layouts and lighting to improve the establishment’s ambience. This will ensure that clients can see the store properly, especially since most clients who feel uncomfortable at the establishment will leave early and may never return. A controlled and balanced waiting period, for any manager, is the optimum result desired in this case (Radic, Peric, & Berecic, 2010). CFM will aid Conway Inn & Hotel to get the right balance through improvement of staff planning. However, this solution has the biggest risk of negative impact on the experience of the customer. The establishment must not be too open as to give a perception of emptiness since this may cause the customers to feel that customers have abandoned the establishment. Reflection The management and staff of Conway Inn & Hotel will seek to integrate successful practices that move beyond client flow and numbers and identifies tactics, which can be implemented and executed. Through using collected data, for instance, it will be possible for management to identify critical organizational positions, design appropriate strategies for the best performers, focus on the metrics of talent management, and finally, foster innovation through emphasizing a transparent culture. Conway Inn & Hotel needs to influence, predict, and understand its client’s behavior to apply the concept in other sectors of the organization, such as financing and marketing. It is prudent to question the assumptions that are held in organizations relating to human behavior to understand better, the organization and its relation to the customer. It will also enhance decision-making skills and leadership. Intuition must be replaced with systematic study in order to improve predictive ability (Radic, Peric, & Berecic, 2010). This will also enhance the organization’s understanding of what the customer expects, improve on interpersonal skills, and enable them to better deal with customers and exert influence on their decisions. References Forrester, R. (1976). Matching staff levels to customer flow: Away of reducing staff costs. International Journal of Retail & Distribution Management, 4(6) 19 - 21. Green, C. (2013). My RevPAR is Rising But My GOP Is Not: Taking a Channel Diagnostics Audit. Retrieved from http://www.hospitalityupgrade.com/_magazine/MagazineArticles/My-RevPAR-is-Rising-But-My-GOP-Is-Not.asp He, Q-M., & Jewkes, E.M. (1995). Flow Time in the MAP/G/1 Queue with Customer Batching and Setup Times. Stochastic Models, 11(4), 691-711. Johanson, M., & Cho, S. (2009). Uncovering the Link Between Organizational Behaviors and Employment Status in the U.S. Hotel Industry. Journal of Human Resources in Hospitality & Tourism, 8(2), 184-198. Luck, D., & Lancaster, G. (2003). E-CRM: customer relationship marketing in the hotel industry. Managerial Auditing Journal, 18(3), 213 - 231. Morieux, Y. (2011). Smart Rules: Six Ways to Get People to Solve Problems Without You. Harvard Business Review, 89(9), 78-86. Radic, B., Peric, M., & Berecic, J. (2010, May). Marketing in Selling the Hotel Product. Tourism & Hospitality Management, Supplement, 771-785. Schermerhorn, J., ?Osborn, R., & Uhl-Bien, M. (2011). Organizational behavior. Hoboken: Wiley. Tavitiyaman, P., Zhang, H., & Qu, H. (2012). The effect of competitive strategies and organizational structure on hotel performance. International Journal of Contemporary Hospitality Management, 24(1), 140 - 159. Yuksel, A. (2001). Managing customer satisfaction and retention: A case of tourist destinations, Turkey. Journal of Vacation Marketing, 7(2), 153-168. Read More