Flevy Management Insights Case Study
Event Management Process Reengineering for Hospitality Firm in Luxury Segment
     Joseph Robinson    |    8 Disciplines


Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in 8 Disciplines to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

TLDR The organization faced significant challenges in executing high-quality events due to an inefficient 8 Disciplines process, leading to customer dissatisfaction and internal conflicts. Post-implementation, the initiative resulted in a 35% reduction in event execution errors and a 20-point increase in customer satisfaction, highlighting the importance of Operational Excellence and effective Change Management in achieving desired outcomes.

Reading time: 7 minutes

Consider this scenario: The organization is a high-end hospitality entity specializing in exclusive live events.

It has recently faced critical issues in executing seamless events, leading to customer dissatisfaction and internal conflicts. These challenges are rooted in its inefficient 8 Disciplines process, resulting in delayed problem resolution, poor team collaboration, and ultimately, compromised event quality. The organization is eager to overhaul its event management processes to uphold its reputation in the luxury market.



The organization's recent shortcomings in event execution suggest systemic issues. An initial hypothesis might be that there is a lack of clear problem-solving protocols, which hampers timely decision-making. A second hypothesis could be that cross-functional communication is ineffective, leading to repeated errors and inefficiencies. Lastly, it is possible that the organization lacks a disciplined approach to continuous improvement, leaving systemic issues unaddressed.

Strategic Analysis and Execution Methodology

A structured approach to revamping the 8 Disciplines can lead to enhanced process efficiency and better alignment with strategic goals. This established process is mirrored in methodologies followed by leading consulting firms.

  1. Initial Assessment: Review current event management processes, identify bottlenecks and areas of non-compliance with the 8 Disciplines framework. Key questions involve understanding where the breakdown in discipline occurs and which processes are most prone to errors.
  2. Root Cause Analysis: Utilize tools like the fishbone diagram and the 5 whys to drill down to the underlying causes of the identified problems. This phase is crucial for ensuring that solutions address the core of the issues rather than just the symptoms.
  3. Solution Development: Based on the root cause analysis, develop targeted solutions. This involves reengineering processes, enhancing communication protocols, and integrating continuous improvement mechanisms into the corporate culture.
  4. Implementation: Roll out the new processes with clear guidelines and training. Regular follow-ups and adjustments are critical to ensure the solutions are effective and sustainable.
  5. Measurement & Continuous Improvement: Establish KPIs to measure the impact of the changes and foster an ongoing culture of excellence. This phase ensures the organization can maintain and build on the improvements made.

For effective implementation, take a look at these 8 Disciplines best practices:

The 8D Problem Solving Process & Tools (206-slide PowerPoint deck and supporting ZIP)
8D Problem Solving Process & Tools (256-slide PowerPoint deck and supporting ZIP)
8D Problem Solving Process Excel Templates (Excel workbook)
8D Problem Solving Methodology Training and Toolkit (128-slide PowerPoint deck)
8D Problem Solving Process Report Template (3-page Word document)
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Executive Concerns

It is often questioned how quickly the results from this methodology will materialize. The speed of results depends on the commitment to change and the precision in executing the new processes. Another common query is about the scalability of the solutions. The designed solutions are inherently scalable, as they are based on principles of the 8 Disciplines that apply to events of any size or complexity. Executives also probe the level of disruption during implementation. The approach is designed to minimize disruption by implementing changes in phases, allowing for continuous operations.

Expected Business Outcomes

Post-implementation, the organization should expect a reduction in event execution errors by at least 30%. There should also be a noticeable improvement in team collaboration and client satisfaction scores. Financially, the organization could anticipate a 15-20% cost saving on event management due to more efficient processes.

Potential Implementation Challenges

Resistance to change from employees accustomed to the old ways of working could be a significant hurdle. Additionally, the integration of new processes may initially slow down operations before yielding improvements. Ensuring data integrity and accurate measurement during the transition phase is also a common challenge.

8 Disciplines KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.


Measurement is the first step that leads to control and eventually to improvement.
     – H. James Harrington

  • Customer Satisfaction Index: Reflects client perceptions pre and post-implementation.
  • Error Rate: Measures the frequency of execution errors during events.
  • Process Cycle Time: Tracks the efficiency of the event planning and execution cycle.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

One insight from past implementations is the critical role of leadership in driving change. Leaders must not only endorse the new processes but actively participate in their execution. Another insight is the importance of communication: regular updates and feedback loops are vital. According to McKinsey, companies that excel at internal communications can increase employee engagement by over 20%.

8 Disciplines Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in 8 Disciplines. These resources below were developed by management consulting firms and 8 Disciplines subject matter experts.

8 Disciplines Deliverables

  • Process Optimization Roadmap (PowerPoint)
  • 8D Problem-Solving Toolkit (Excel)
  • Event Management Playbook (Word)
  • Training and Development Plan (PDF)
  • Performance Dashboard (PowerPoint)

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Integration of 8 Disciplines with Existing Corporate Culture

The successful integration of the 8 Disciplines methodology hinges on its alignment with the existing corporate culture. It is not merely a set of principles to be followed; it requires a cultural shift that encourages proactive problem-solving and accountability. This cultural transformation often presents a challenge, as it necessitates changes in mindset and behavior at all organizational levels.

To facilitate this integration, it is essential to engage in a comprehensive change management program. Communication, training, and incentives aligned with the 8 Disciplines can drive this cultural shift. Bain & Company highlights that companies with highly effective change management programs have a success rate of 79%, compared to just 34% for those without.

Measuring the Impact of 8 Disciplines on Employee Morale

Implementing the 8 Disciplines framework can initially be met with apprehension, potentially impacting employee morale. However, by involving employees in the problem-solving process and empowering them to contribute to improvements, morale can be significantly boosted. The key is to ensure that employees see the value of their contributions to the organization's success.

Measuring the impact on morale can be done through regular employee engagement surveys and feedback mechanisms. According to Deloitte, organizations with high employee engagement report 82% higher customer loyalty, underscoring the importance of maintaining a positive work environment during transformative initiatives.

Ensuring Leadership Alignment and Commitment

Leadership alignment and commitment are paramount for the successful implementation of the 8 Disciplines. Executive sponsorship provides the necessary authority and resources, while also signaling the importance of the initiative to the entire organization. Without strong leadership, even the most well-designed processes can falter.

Leaders must be visible champions of the change, demonstrating the behaviors and decision-making that reflect the principles of the 8 Disciplines. A study by McKinsey reveals that transformations are 5.3 times more likely to be successful when senior leaders model the behavior changes they’re asking employees to make.

Long-Term Sustainability of Process Improvements

For the process improvements to be sustainable in the long term, the organization must cultivate a culture of continuous improvement. This involves regularly reviewing processes, seeking feedback, and making iterative changes. The 8 Disciplines framework should not be seen as a one-time project but as an ongoing practice embedded in the organization's DNA.

Embedding metrics and incentives aligned with the 8 Disciplines into performance management systems can also reinforce the sustainability of the improvements. According to PwC, 75% of companies that monitor process efficiency and employee alignment with corporate goals report improved performance over time.

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Key Findings and Results

Here is a summary of the key results of this case study:

  • Reduced event execution errors by 35% post-implementation, surpassing the initial target of 30%.
  • Improved team collaboration, as evidenced by a 25% increase in internal collaboration scores.
  • Realized a 17% cost saving on event management, slightly exceeding the projected 15-20% target.
  • Enhanced customer satisfaction, reflected in a 20-point increase in the Customer Satisfaction Index.

The initiative has yielded significant improvements, particularly in reducing event execution errors and fostering better team collaboration. The 35% reduction in errors indicates a substantial enhancement in operational efficiency, directly addressing the initial challenges of delayed problem resolution and compromised event quality. The 25% increase in internal collaboration scores demonstrates a positive shift in team dynamics, aligning with the objective of improving cross-functional communication. However, the cost-saving of 17% falls slightly short of the anticipated 15-20%, indicating potential inefficiencies in certain areas of the revamped processes. The 20-point increase in the Customer Satisfaction Index signifies a notable improvement in client perceptions, aligning with the organization's goal of delivering seamless and high-quality events. While the results are largely successful, the cost-saving aspect warrants further analysis to identify areas for optimization and potential alternative strategies to achieve the desired financial impact.

Despite the overall success, the cost-saving aspect of the initiative was slightly below the projected target. This indicates the need for a more thorough assessment of cost drivers and potential alternative strategies to achieve greater efficiency gains. Additionally, while the reduction in event execution errors and the improvement in team collaboration are commendable, there may be pockets of resistance to change that have hindered the full realization of these improvements. Alternative strategies could involve targeted change management interventions to address resistance and enhance the scalability of the solutions. Moreover, a deeper analysis of the cost-saving measures and their alignment with strategic goals could provide insights into refining the processes for greater financial impact.

Moving forward, it is recommended to conduct a comprehensive review of the cost-saving measures to identify specific areas for optimization. This should involve a detailed analysis of cost drivers and potential refinements in the event management processes to achieve the targeted 15-20% cost saving. Additionally, targeted change management interventions should be implemented to address pockets of resistance and further enhance the scalability of the solutions. A deeper alignment of cost-saving measures with strategic goals is also advised to ensure that financial objectives are effectively met.


 
Joseph Robinson, New York

Operational Excellence, Management Consulting

The development of this case study was overseen by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: Stadium Operational Excellence Initiative for Major Sports Franchise, Flevy Management Insights, Joseph Robinson, 2024


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