SuccessFactors helps Loews achive strong results on their corporate goals of guest satisfaction and employee satisfaction

By Team - Doble Group, LLC 22/03/2011

Loews Hotels
New York, NY
http://www.loewshotels.com

Size: FY 2008 Revenue: USD $350M
Full time employees: 6,700
Industry: Hospitality
Region: Americas

Company background:

With a rich history spanning over six decades, Loews offers ultimate travel experiences in 16 cities across the US and Canada. With headquarters located in New York, Loews has grown to include destinations to satisfy both the business and leisure traveler. SuccessFactors solutions:

  • Performance Management
  • Goal Management
  • Succession Planning Customer Since: 2006

Business Impact:

  • 100% alignment of goals throughout the company
  • Increased employee and customer satisfaction
  • Reduced turnover by 8% and increased internal fill rate by 8%
  • More collaboration and sharing of best practices

“Prior to using SuccessFactors there was a lot of leeway for individuals to set their own goals as they thought was best. Now it is clear to all team members that they should make decisions based on what is best for the brand not just the local hotel.” Alan Momeyer, Vice President of Human Resources

Ensuring a consistent focus across the organization In 2006, when Loews Hotels’ executives decided to shift their strategic focus from asset management to brand building, it became critical to ensure everyone was on the same page and was working towards a common set of goals. Loews Hotels selected SuccessFactors to assist in driving the process throughout the organization. To ensure consistency in the message and to get everyone moving in the same direction as quickly as possible, two members of Loews Hotels Education and Development team traveled to all 18 properties sharing the new brand direction, goals and introducing SuccessFactors.

Through a series of workshops, all managers set team and individual goals aligned to the company’s goals. The process was dubbed “Loews Link” and ensured everyone was contributing to the same three goals tied to guest satisfaction, employee satisfaction, and financial performance. In just three months all 1,200 managers were educated and had their goals in the system, aligned directly to the President and COO’s goals. Improved guest satisfaction Using SuccessFactors, Loews Hotels set multiple target metrics for each goal. For example, guest satisfaction is measured through results from guest surveys and secret shopper reports. By linking measurable metrics to each goal, it is clear to all employees what measurements matter most. Everyone knows exactly what they are accountable for delivering to ensuring the success of the brand. Since 2006, the organization has delivered impressive results on those expectations. In the Guest satisfaction goal alone, as measured by Market Metrics, the brand has moved from 5th place in 2005 to 2nd place in their competitive set in 2008.

“The succession module was just logical for us given the success we have seen to date with the increased focus on people in our organization.” Jenny Lucas Director of Education & Development

Employee satisfaction, reduced turnover and increased internal fill rate Through continued use of SuccessFactors and focus on their “people” goal, Loews Hotels has continued to achieve stronger employee satisfaction results year after year. Easy-to-use product resulting in close to 100% compliance in performance reviews. Each of these results was a specific target with the desired results achieved often exceeded:

  • Turnover was already low at 38.2% in 2005 finished 2008 at 30.6 %.
  • Internal fill rate increased from 54% in 2005 to 62% for all management positions in 2008. With the addition of SuccessFactors
  • Succession Planning module in 2009, Loews Hotels is looking forward leverage this success in more long term strategic planning and placement.
  • Team member satisfaction and executive satisfaction both increased. On a five point scale, team members indicated an increase from 4.06 to 4.21 in 2008
  • Diversity representation in the management team increased 10% since 2005.
  •  In the last 2 years they were the only hotel company to receive a B- on the NAACP hospitality report card (up from a C in 2005) with no other companies in the industry scoring higher.

Sharing of best practices a major contributing factor Loews has configured the SuccessFactors solution so that managers’ goals are visible to everyone else in the organization. This has created an environment of transparency where everyone realizes they are working together for the good of the company.

Managers have taken this system to heart and update their goals with action steps almost monthly. This has proven to be tremendously impactful because a manager of one hotel can see what contributes to high results at another hotel, which leads to sharing of best practices as others can learn from the success someone else realized.

As a smaller hotel company, conversations between properties and disciplines are common place, but this system has created a medium to start and facilitate collaboration across the brand.

“By narrowing our focus and having visibility and alignment throughout the organization, everyone knows the part they play in achieving the company’s goals. We are all in it together – the success of a company lies in everyone’s ability to make those goals a reality.” Jenny Lucas, Director of Education & Development