This paper has focused on the Squire Hotel Group and how the application of EFQM model 2010 can be used to provide a framework for the enhancement of organizational performance. Various issues have been identified facing the Hotel group, including lack of a formal method of collecting information; the demand of beds by the tourists compared to the supply; competition and tight budgets set by the head office. It is evident that the application of the EFQM model, especially the nine criteria, will enable the company to overcome these issues and improve on its performance. This is based on the fact that some companies, especially in Europe, have made use of the model and have turned out to be successful. In order to be successful, the Squire Hotel Group should make sure that it offers proper training to the employees, develops constant enhancement processes; incorporates self assessment procedures into policy development and business planning cycles, and collects suitable data and employs it during the day to day management. However, some of the drawbacks faced during implementation encompass active commitment from senior management, development of novel skills in the organizational individuals, as well as efficient communication between the people and the management.
The EFQM model 2010 is a non-rigid framework that is founded on nine principles. These criteria encompass leadership; strategy; people; partnership and resources; processes, products and services; customer results; society results; people results; and key results (EFQM, 2010). The criteria are divided into two, whereby the first five are enablers whilst the last four are results. The enablers outline the activities performed by a company, while the result entails what is attained by an organization and the means employed to achieve this. The enablers are the foundation of the results and normally, responses from the results are used to enhance the enablers. The application of the EFQM model to an organization is beneficial in that the employment of the nine criteria can assist in understanding and analyzing the cause and impact linkage between the activities performed by a company and the outcomes attained (Serban and Ghenta, 2009; EFQM, 2009). Besides, the model uses a holistic approach for the management of a company and performance improvement (Kaufmann and Serban, 2011). However, the application of this model to an organization may have various pitfalls, the main one encompassing resistance by the staffs and requirement for new skills from workers (Coulson-Thomas, 2006).
In this report, the EFQM model 2010 will be applied to the Squire Hotel Group. The purpose of this is to find out, whether the EFQM model may offer a framework for enhancing the performance at the Squire Group Hotel. Assessing, whether the model is being employed by other organizations offering services to customers and how these organizations have been effective in terms of performance enhancement, will offer an insight as far as the efficiency of the application of this model is concerned.
Background Information of the Hotel
Squire Hotel Group runs a string of twenty hotels, which have bedroom ranging between 40 and 120. The hotels are found in locations such as Warwick, Southport and Oxford. Squire group hotel identifies itself in the three star markets boosting of hotels that have a unique personality and style, offering first rate services and quality food at a reasonable price. Most of the clients during mid-week are mainly commercial guests covering an occupancy rate of 80 percent. The weekend occupancy is quite low, with 30 percent occupancy, and most of the clients buying the weekend break packages. Squire group hotel does not have any expansion plans in the offing and is mainly concentrating on improving and increasing its market share.
Squire hotel, Oxford, has a total number of 41 bedrooms and is located near the Magdalen College. Its rooms are well decorated, each with a well designed mahogany desk and a clock. It has 40 staff, majority of whom are fulltime. Out of the 40 staff 20 work on food, 10 on liquor and 10 on the apartments. Each restaurant and bar has a manager. Staff turnover is about 70 percent. The restaurant at the Oxford hotel has 20 tables and has a capacity of 100 seats. Most of the clients during the day are local businessmen, visitors to the Magdalen College and tourists.
The managers overseeing the restaurant have substantial authority on staffing, purchasing and menu planning, though their budget must be within the limit of the head office. These budgets, for instance spell out the individual staff costs for breakfast, lunch, dinner and food costs. The total costs of the staff and food are reported on the weekly basis to the respective hotel manager. All the branch managers are answerable to the head office, which is responsible for making the overall decision. Decisions are usually made trying to incorporate the different aspects of the location of hotels, as well as the requirements of the local community.
Key Issues Faced By the Hotel Group
In the contemporary business environment, businesses face various challenges and problems, and the Squire Hotel Group is no exception. These issues are accelerated by various factors, including increased competition between related players; need to improve customers’ satisfaction by offering excellent products and services; and the desire to make super profits, amongst others (Sluyter and University of Michigan, 1998). The identification of various issues affecting an organization is essential, in order to take appropriate measures to mitigate the same (Baguley, 1994). This encompasses the application of suitable criteria, such as the use of better strategies, improvement of organizational leadership and motivation of people in the organization, as well as improving the offering of products and services in order to meet the needs and requirements of the market (EFQM, 2010).
The Squire Hotel Group is facing a number of issues that are identified. For instance, according to the Hotels manager, Charles Harper, the entrance room of the Squire Hotel Oxford is arranged in a traditional way. This, according to his statement, is complicated and, besides, does not demonstrate the Hotel’s organized and caring outlook. Another issue identified by the manager is that, during the peak season, the demand of beds by the tourists is high compared to the supply offered by the Hotel. The company does not have expansion plans, and this is a problem in that business are supposed to maximize profits when the demand is high in order to cover the periods with low demand (off-season), when the Hotel has an occupancy of sixty percent. As a result, the company should focus on efforts of expansion, in order to make maximum use of the peak periods, which is also a guarantee of retaining customers, who will not lack a space at one given time. Although very few, the company gets complaints from its customers regarding food. The company also lacks a formal method of collecting information from the guests regarding quality and, as a result, it may fail to get appropriate information on areas, which require rectifying and improving. Lack of suggestion or complaint forms prevents the guest from questioning or complaining about the services offered. Competition is another issue affecting the Hotel Group. As explained in the case study, there are numerous famous and excellent restaurants, and they are a great threat, as they are likely to attract hotel guests and potential customers, especially in the evenings. The Hotel’s restaurant manager, Elizabeth Dickens complains that the tight budgets set by the head office impede her from implementing the novel ideas for the restaurant menus as well as the enhanced methods of serving their guests and customers. She claims that this has made the restaurant lose most of the potential and established clients. In order to solve this problem, Dickens puts forth that it is essential to react to the modifying demand of clients and change the speed, in which they are served; in particular, during lunch breaks, including the modifications in the diet, as well as improved and more attractive choice of meals. This is, however, impeded by the head office.
Through the application of the EFQM Model, the Squire Hotel Group can be able to overcome these problems as it will offer better ways, in which the organizational can be improved. This signifies that the model will offer a framework for enhancing the organizational performance at the Squire Group Hotel (Gemoets, 2009).
Application of the EFQM Model to the Squire Hotel Group
When an organization faces a problem, it is extremely essential for the performance of such an organization to consider measures to alleviate them. This encompasses the application of various models and frameworks, which are deemed to be appropriate. For the Squire Hotel Group, the application of EFQM Model will help in offering a framework for improving the performance of the organization by minimizing the issues faced by the company (Kaufmann and Serban, 2011). This will entail the application of the nine criteria of the EFQM Model.
Certainly, leadership is the main, determining factor for the success or failure of an organization. Leaders usually focus of attaining the objectives of their organizations through the employees. In the Squire Hotel Groups, Harper explains that hotel managers usually concur on the monetary targets for their operations every year with the head office. Failure to attain their targets without proper justification may make these managers lose their job. In this case, managers are expected to make proper use of their leadership skills and proper use of the employees, in order to succeed. Knowing what the organization wants to attain, and communicating of this message to employees is a significant step that the managers should undertake (EFQM, 2010). In this case, the customers should be a main focus, as they are the main factor for the survival of the establishment and the company (Rensis Likert Associates, 2000). Communicating with the employees is essential as it will assist in reinforcing the objectives, and this will make certain that individuals are working hand in hand, in order to attain the set targets. According to research, poor communication is one of the main causes of dissatisfaction, thus effective communication is extremely vital (Michael and Peter, 2010). Besides, encouraging change in the company is another main factor for improving its performance (EFQM, 2010). Although there are obstacles to change, managers should be the main facilitators and catalysts for change. For the Squire Hotel Group, changing the way it serves its customers, especially, improving on speed during lunch hour is truly essential; this will assist in retaining the potential and already established customers (Wallington, 2000). It is clear that there are well established, famous players, which act as a threat to the company; for this reason, improving on food quality and changing menus, as stated by Dickens, with a focus on the modifications in the diet, as well as the need for improved and more attractive choice of meals, should also be put into consideration. People should be well motivated and inspired, in order to act towards attaining the organizational objective (Kaufmann and Serban, 2011).
Certainly, better management will result in better customer results, people results, society results, and overall company results. By having well motivated workforce, highly satisfied customers and operating in an ethical manner, in addition to co-existing in harmony with diverse societal groups, is a key indicator of how the Squire Hotel Group is improving its organizational performance.
A strategy is founded on understanding the expectations and needs of the various stakeholders in the organization, including the customers, people, partners and suppliers and society, at large (EFQM, 2010). The identification of stakeholders assists the company management in establishing processes and mechanisms, which will facilitate the identification of the present and future expectations and requirements. The organizational managers can use such techniques as scenario creations, surveys, the SWOT analysis or benchmarking, in order to identify the needs of the stakeholders (EFQM, 2010).
In this case study, the demands and needs of the customers are modifying, and this necessitates a modification in the organization in order to meet such needs, thus satisfy the customers efficiently. As Dickens suggests, the limits put forth by the head office, hinder the introduction of novel menus, which will meet the current customers’ needs and plans for future expectations. In this case, in order to ensure improved organizational performance, the managers should come up with proper strategies, which will assist them meet the current needs of the customers whilst still operating within the set budget limit. Furthermore, the head office should give more sovereignty to the hotel chain managers, as they are in a better position for evaluating the needs of their stakeholders. Besides, establishing relationships with the local firms, as encouraged by the company, is an essential factor for attaining better performance. The preparation of a strategic plan, which encompasses factors, such as current performance, past performance and competition levels, is also essential in debating the future direction of the organization (Bateman and Zeithaml, 1990). Through this, the Squire Hotel Company will be able to attain better customer and people results, in additional to societal and overall performance of the company (Kaufmann and Serban, 2011).
Succeeding Through People
People resources are viewed as the main, essential factor for an organization. These include the people working for the company, who offer creativity, vision, inspiration, motivation and vision for the organization (EFQM, 2010). They offer competencies and skills, and labor necessitated by the organization. It is apparent that people in an organization should be developed through training, motivated, involved, empowered, communicated to efficiently, and encouraged, in order to be effective. Through the use of such techniques, as staff appraisal, staff meetings, staff surveys and self-assessment the Hotel managers can be able to evaluate and assess the degree of staff effectiveness. Through this, the Squire Hotel Group will be able to attain better results from the people, a factor that is directly linked with improved overall performance of the company. Besides, the societal result of creating a decent quality image and being friendly would also be attained (Gemoets, 2009).
Certainly, entering into partnerships is deemed as a beneficial action for any organization. Normally, partnerships are formed with customers, key suppliers or the society (EFQN, 2010). For the Squire Hotel Group, establishing and managing partnerships and resources efficiently will assist in supporting policies and strategy, as well as successful functioning of procedures. Developing personal linkages with local companies, as practiced by the company management, is an effective way of promoting partnerships.
Excellent organizations plan would help manage and enhance product, processes and services, thus, produce amplifying value for clients, amongst other stakeholders (EFQN, 2010). The Squire Hotel Group should use processes, in order to develop such services and products, which generate maximum value for their clients. This will enable the company improve its overall performance.
Key Performance Objective of the Company
The key performance ambition is trying to achieve 100 percent occupancy. The head office needs to apply the EFQM to achieve this goal. EFQM comprises of nine fundamental principles that can be applied to achieve the desired objective. The first principle is leadership. The hotel business is not stable at all, and the top management constantly should tap the energy, ideas and skills of the whole team to survive in this competitive market. This means that everyone contributes to the management of the company. This has two main implications, first it will make the employees feel part of the company and thus, they are likely to give their best; and second, employees will also feel motivated, since their ideas are considered in the decision making process (Serban and Ghenta, 2009). The fact that the main goal is to achieve 100 percent occupancy means that the baggage, which is preventing Squire Group Hotel from flying to greater heights, should be eliminated. For instance, the branch managers work within a constrained budget; this limits the applicability of ideas, as they have to stick to the budget. If the top management allowed the branch managers be autonomous and promote intra-competition, this would embrace the best creativity to emerge and help increase the Hotel’s client base (Gemoets, 2009).
One of the key steps in leadership involves setting clear goals and objective (EFQM, 2010). The organization will then strive to achieve the mission and vision of the company, putting into consideration the working environment, the customers and staff. The top management should also act as agents of change, so that change can be accepted by the employees without resistance. In order to excel, every company will have to change. What is even more crucial is setting a culture that embraces change. To achieve 100 percent occupancy, Squire Group Hotel must change, along with the changing consumer needs and environment; for instance, they should offer different variety of dishes, to encompass the different customers from all regions. This is quite crucial, because a sizable percentage of their clients is tourists. This will not only improve their attractiveness, but will also go a long way in ensuring customer satisfaction and loyalty, a big step in the process, aimed at achieving the 100 percent occupancy.
Strategy is another vital ingredient in a company, as it identifies, how long it will take to get the desired effect (EFQN, 2010). Use of wrong strategy means that results desired will be hard to attain. Strategy is mainly pursuing understanding and evaluating of the expectations and needs of customers, suppliers, people, partners and society, and this encompasses both internal and external factors. When a detailed analysis of these groups is made, then their current and future needs are identified. There are various techniques that the company can use in identifying the current and future needs of these groups, for example, scenario creations and SWOT (strength, weaknesses, opportunities and threats) analysis. EFQM excellence model focuses on how these distinct groups, which have a direct impact on the success of the company, can assist the company concentrate on the important pieces of information that will directly shape its destiny (EFQM, 2010). The company will be in a position to evaluate its past performance, estimate its current performance and how it fairs in comparison to other competitors in the market. The direction that the company intends to take, based on these results, will determine the strategy to apply. Squire Group Hotel can achieve the 100 percent occupancy by changing its management practices. The company can increase its horizon by viewing the market on the global level and rebutting traditional operational practices that mainly consider the regions only. The company will first identify the key processes. These are obviously the ones that add value for the company’s stakeholders and external customers. An agreement will then be reached on the key elements needed to ensure the triumph of the key processes.
Another principle in the EFQM success model is the partnership. Partnership is defined as a functional relationship between two or more parties, with the intention of adding value for customers. To ensure 100 percent occupancy, Squire Group Hotel needs to improve their relationship with their clients. The Hotels will be able to serve their clients depending on their varied wants, by maintaining a cordial relationship with the customers. Customer satisfaction is a key area to pursue, if the 100 percent goal is ever going to be achieved. It would give Squire Group Hotel an edge over their competitors, who, in one way or another, hinder the attainment of 100 percent occupancy. Moreover, customer satisfaction will also maintain consumer loyalty, which is a fundamental aspect, especially for the future.
It is also paramount that Squire Group Hotel recognizes the role that people play in its success. In order for the company to succeed, the top management must make sure that the people that they have are the people that they need. No matter the extent of technological advancement people will remain a valuable asset to the organization. The energies, skills, and enthusiasm should be engaged in the most effective way. Since the demands by the clients and pressure from competitors are changing, the company should adjust the people resource; this would enable to change the focus of their activities and, in this way, ensure that the clients’ expectations are met. It is essential to match the people to the specifics of their job. If employees lack the right approach, they will find it hard to be friendly to customers and accept change without resistance. Involving and empowering the people is quite risky. The desired outcome, in the end, will be easy to achieve, if the right people have the right focus, and these are attached to the organizations’ culture (Serban and Ghenta, 2009).
Successful Implementation of the Model
To succeed during the implementation of the EFQM model, the Squire Hotel Group should make sure that they offer proper training to their people. Furthermore, company needs to develop constant enhancement processes; incorporate self assessment procedures into policy development and business planning cycles, and collect suitable data, as well as employ it during the day to day management.
Drawbacks of the Model
The implementation of the EFQM model requires active commitment from senior management. On the other hand, organizational individuals need to develop novel skills and, besides, practice their employment. These processes require efficient communication between the people and the management.
Companies which have used EFQM 2010
It is apparent that most companies are making use of the EFQM Model, in order to improve their organizational performance. The majority of the European companies are a clear proof. These companies encompass British Telecommunications Plc, Nestle, AB Electrolux, Volkswagen and Philips, which were involved in the formation of the model. These companies have benefited tremendously through the employment of this model, as they have been able to improve their key results, the performance of their people, which has resulted in sustainable excellence. The model has turned out to be the basis for the majority of the winners of the regional and national European Excellence Awards (Hendricks and Singhal, 1996).
The Squire Hotel Group faces a number of issues, and their identification is essential, as this will assist the managers to make effective use of the EFQM MODEL, in order to alleviate such issues. The application of the model is evidenced to improve the management and performance of organizations. This is based on the fact that the application of the various model criteria assists in understanding and analyzing the cause and impact linkage between the activities, carried out by organizations, and the outcomes attained. The overall recommendation is for the Squire Hotel Group to make use of the EFQM MODEL, in order to enhance its overall business performance and improve its results.