Mapping Activity to Understand Risk Russ Briggs SADIA International

SADIA’s Approach to Risk Mgmt Cultural (how an organization processes information and how that impacts risk) Strategic (how an organization thinks about risk, and the management of risk) Tactical (the steps an organization takes to reduce and/or mitigate risk)

What does SADIA’s process entail? Start with an objective (risk you want to measure) Identify the overriding insight (e.g. leveraging across the enterprise to create synergies and protect enterprise value) Position the product/service in the market Identify the overriding theme Empower staff to carry out the activity

We start with an Objective Reduce Uncertainty Preserve Value Increase Revenue Avoid Cost Improve Service

We develop an Overriding Insight For example, Four Seasons founder Izzy Sharp discovered customers on the road longed for the comforts of their home and office Let’s look at how Four Seasons was able to take advantage of that insight to become a global leader in luxury accommodation

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office

Four Seasons Activity Map Product will be positioned in the marketplace as a medium-sized hotel in an intimate setting Supported by location-based guest database Overriding Insight: Customers on the road long for the comforts of home and office

Four Seasons Activity Map Medium-sized, Intimate Hotels Overriding Insight: Customers on the road long for the comforts of home and office

Four Seasons Activity Map Medium-sized, Intimate Hotels Overriding Insight: Customers on the road long for the comforts of home and office Location-based Guest Database

There was a problem! There were not enough rooms in a medium-sized property to cover the cost of luxurious amenities and still be profitable Sharp realized he would have to set a new standard in customer service in order to charge premium rates

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Location-based Guest Database

How to deliver a unique customer service experience? Make sure your entire staff is totally focused on the customer experience Establish a superior staff service capability –Extensive recruiting process –Global in-house staff training –Low personnel turnover due to in-house promotion as key incentive

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude Location-based Guest Database

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude Extensive Recruiting Process Location-based Guest Database

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude Global In-house Staff Training Extensive Recruiting Process Location-based Guest Database

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude Low Personnel Turnover Global In-house Staff Training Extensive Recruiting Process Location-based Guest Database

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude Low Personnel Turnover In-house Promotion as Key Incentive Global In-house Staff Training Extensive Recruiting Process Location-based Guest Database

How to reinforce that message? By binding the staff to the product through the principle of the Golden Rule: to deal with others – customers, partners, co-workers, everyone – as we would want them to deal with us By making customer service everyone’s priority – How? Eliminate the customer service dept i.e. customer service is everybody’s business

Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

Positioning Four Seasons in the Marketplace Globally recognized luxury brand –Global sales and booking network –Web site for easy access to location data –Global procurement department

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Global Sales & Booking Network Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Global Sales & Booking Network Web Site for Easy Access to Location Data Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Global Sales & Booking Network Web Site for Easy Access to Location Data Global Procurement Department Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

What we do and what we don’t! We manage hotel properties – we do not invest We offer a total hotel management program –Consulting to evaluate new locations –Design and architecture support –Expansion into resorts and time-sharing

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Global Sales & Booking Network Web Site for Easy Access to Location Data Global Procurement Department Focus on Hotel Management Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Global Sales & Booking Network Web Site for Easy Access to Location Data Global Procurement Department Focus on Hotel Management Consulting to Evaluate New Locations Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Global Sales & Booking Network Web Site for Easy Access to Location Data Global Procurement Department Focus on Hotel Management Design & Architecture Support For New Locations Consulting to Evaluate New Locations Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

No Customer Service Department Four Seasons Activity Map Overriding Insight: Customers on the road long for the comforts of home and office Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude “Golden Rule” Individual Guest Service Consistent Global Branding Global Sales & Booking Network Web Site for Easy Access to Location Data Global Procurement Department Focus on Hotel Management Design & Architecture Support For New Locations Consulting to Evaluate New Locations Expansion into Resorts & Time-sharing Location-based Guest Database Low Personnel Turnover In-house Promotion as Key Incentive Extensive Recruiting Process Global In-house Staff Training

Four Seasons Activity Map Unique Customer Service Experience Focus on Hotel Management Consistent Global Branding Superior Staff Service Attitude Medium-sized, Intimate Hotels Web Site for Easy Access to Location Data Consulting to Evaluate New Locations Design & Architecture Support For New Locations Expansion into Resorts & Time-sharing “Golden Rule” Individual Guest Service No Customer Service Department Global Procurement Department Global Sales & Booking Network Location-based Guest Database Low Personnel Turnover Extensive Recruiting Process Global In-house Staff Training In-house Promotion as Key Incentive Consulting to Evaluate New Locations Overriding Insight: Customers on the road long for the comforts of home and office

To summarize Start with an objective (risk you want to measure) Identify the overriding insight (e.g. leveraging across the enterprise to create synergies and protect enterprise value) Position the product/service in the market Identify the overriding theme Empower staff to carry out the activity

Generic Activity Map Product Positioning Overriding RM Insight: RU, PV, IR, AC, IS Overarching Value Proposition:

Generic Activity Map Product Positioning Overriding RM Insight: RU, PV, IR, AC, IS Overarching Value Proposition: Overarching Value Proposition

Generic Activity Map Product Positioning Technical Support Overriding RM Insight: RU, PV, IR, AC, IS Overarching Value Proposition: Overarching Value Proposition People-related Engine Low Turnover Of Personnel Motivating Factor Continuous Training (WIP) Extensive Recruiting Process Enabling Principle

Generic Activity Map Overarching Value Proposition What we do & what we don’t do Market Positioning People-related Engine Product Positioning Website Design & Architecture Support Expanding Business Focus Enabling Principle Risk Mgmt Everyone’s Responsibility Major Support Activity Harmonized Databases Technical support Low Turnover Of Personnel Extensive Recruiting Process Continuous Training (WIP) Motivating Factor Opportunities For Development Overriding RM Insight: RU, PV, IR, AC, IS Overarching Value Proposition:

So that’s the end of the deck We then go into a short workshop to demonstrate the value of activity mapping by dealing with a specific client issue e.g. how do I know my staff are doing all they can to protect my company from risk?