People Insights on Guest Satisfaction Four Seasons Hotels & Resorts Michael Peterman Vice President Employer Branding & Insights Four Seasons • • • • Undisputed leader of luxury hospitality 93 hotels and resorts, in 39 countries 40,000 employees, small corporate offices Fortune’s Top 100 Best Places to Work® list since it’s inception • 50 year history • One business strategy 2 © Copyright IBM Corporation 2015 Highly Personalised Service The people of Four Seasons create the most thoughtful experience of luxury in the world through genuine care, individualized service, attention to detail and ideas that make a difference, providing a sanctuary without worry for discerning global citizens. 3 © Copyright IBM Corporation 2015 The Golden Rule (Culture) “To treat others as we would wish to be treated ourselves.” 4 Four Seasons Consumer Facing Marketing Campaign © Copyright IBM Corporation1989 2015 - 2000 Highly Engaged Employees. Now what? • Top 2% of companies with most highly engaged companies • How do we understand how employee attitudes and situations we create for them translate to business results. 5 © Copyright IBM Corporation 2015 Engaged employees are more likely to stay with Four Seasons I would recommend Four Seasons as a great place to work. I rarely think about looking for a new job with another company. I am satisfied that my compensation is competitive. -.271 As a guest, I would be extremely satisfied with the quality of the products and services I receive. -.228 - 131 Voluntary Turnover * -.152 - 154 - 197 I would recommend this hotel as a great place to stay. - 187 - 160 Overall, I am satisfied with Four Seasons as a great place to work. I am proud to work for Four Seasons. I am able to manage my work responsibilities in a way that allows me to maintain a healthy balance between work and home. *Negative Correlations contribute to less turnover 6 © Copyright IBM Corporation 2015 .XXX correlation Engagement index component Guest advocacy item Turnover rate in most/least engaged hotels (%) On average, top decile hotels voluntary turnover is 6.2 points lower than bottom decile hotels (a 36% difference) Engaged employees manage resources efficiently, driving profitability I am proud to work for Four Seasons. I would recommend Four Seasons as a great place to work. .249 .199 Gross operating profit (GOP) GOP in most/least engaged hotels (%) On average, top decile hotels GOP is 14.2 points higher than bottom decile (a 68% improvement) The results of last year's survey have been communicated to my work group. .242 .211 .238 I am satisfied that my compensation is competitive. 7 © Copyright IBM Corporation 2015 Overall, I am satisfied with Four Seasons as a great place to work. .XXX correlation Engagement index component Guest satisfaction ratings directly impacted by strong service culture and engagement I would recommend this hotel as a great place to stay. Guest problems are dealt with quickly. As a guest, I would be extremely satisfied with the quality of the products and services I receive. Guest satisfaction in most/least engaged hotels (%) On average, top decile hotels guest satisfaction is 8.7 points higher than bottom decile hotels (a 13% improvement) .487 Overall, I am satisfied with Four Seasons as a great place to work. .262 .276 Guest satisfaction rating (Medallia) .455 .308 I am proud to work for Four Seasons. .301 .287 .293 .XXX correlation I believe Four Seasons has an outstanding future. 8 © Copyright IBM Corporation 2015 My hotel consistently delivers the Four Seasons Core and Service Culture standards. I would recommend Four Seasons as a great place to work. Engagement index component Guest advocacy item Driver of engagement Performance Enablement item Profitability Standards Engagement Guest Drivers of customer satisfaction 9 I would recommend this Hotel as a great place to stay. 0.581 As a Guest, I would be extremely satisfied with the quality of the products and services I receive. 0.527 Guest problems are dealt with quickly. 0.445 We regularly use Guest feedback to improve our processes. 0.384 This Hotel's efforts in innovation have made an improvement in the overall Guest experience. 0.377 Employee Engagement -.385 Voluntary Turnover LiveInSynch 0.390 I would recommend Four Seasons as a great place to work. 0.359 Guest Satisfaction I am proud to work for Four Seasons. 0.302 Medallia © Copyright IBM Corporation 2015 GOP Turnover Overall, I am satisfied with Four Seasons as a great place to work. My Hotel consistently delivers the Four Seasons Core and Service Culture standards. .291 0.325 Financial Performance .261 RevPAR Main correlation for LQA Scores LQA Overall Score 2014 LQA Emotional Intelligence Score 2014 •Satisfaction with quality of products/services (As a Guest) •Getting training to exceed Guest expectations •Consistently delivering Core & Service Culture standards •Information to do job effectively •Communication of survey results to group •Communication of survey results to group •Link between one's work and Four Season's vision •Consistently delivering Core & Service Culture standards •Great place to work Satisfaction •Getting training to exceed Guest expectations 10 © Copyright IBM Corporation 2015 LQA Sales Score 2014 LQA Service Score 2014 •Satisfaction with quality of products/services (As a Guest) •Recommend this hotel as great place to stay •Consistently delivering Core & Service Culture standards •Getting training to exceed Guest expectations •Guest problems dealt with quickly •Feeling comfortable speaking with HM •Getting training to exceed Guest expectations •Feeling valued as employee •Consistently delivering Core & Service Culture standards •Hardly think about leaving •Using guest feedback to improve processes •Employee Engagement Three Key Challenges “We believe in the value of an engaged and enabled employee, but how can we leverage it and link the findings to our current business strategy?” 11 © Copyright IBM Corporation 2015 “Our report is great but there is too much data, how do we decrease data and increase conciseness while keeping the report actionable?” “We need a more current pulse of the employee, can we have more frequent assessments versus an once a year event without survey fatigue?” Employee Voice Program - Continuous Listening New Hire and Exit – ongoing measure of onboarding experience and drivers of turnover J Field M M F A J J S N A O D Quarterly Pulse – Golden Rule, Culture Standards, Open-ended question on Guest Experience Q1 Q3 Q2 Q4 Yearly deep-dive - engagement and enablement Q2 Partnership Index – Corporate/Field partnership Q2 12 © Copyright IBM Corporation 2015 Q4 Employee Voice Program - Continuous Listening Quarterly Pulse – Communication, Leadership, Change Readiness Q1 Q3 Corporate Q2 Q4 Yearly deep-dive - engagement and enablement Q2 Partnership Index – Internal Partnership and collaboration Q2 MiniPulse – ad hoc, as needed (Intranet) 13 © Copyright IBM Corporation 2015 Q4 Automating and simplifying workforce analytics Talent Insights Employee Voice Data How should we improve high performer retention? Reduce turnover in Hotels? How can we improve LQA and Medallia through workforce drivers?? How should we safeguard our leadership talent pool for critical roles? How should we mitigate conduct risk?? What drives collaboration between Field and Corporate? Business, Positional, Talent data 14 © Copyright IBM Corporation 2015 Retention Performance Business Metrics Workday Compensation Do change in GM impacts profitability? 15 © Copyright IBM Corporation 2015 Roadmap (high level) PHASE I Foundation PHASE II Transformation PHASE III Evolution (2015-2016) (2016-2017) (2017-2018) Strategy & Purpose Socialize new approach Communicate Center the program on customer and cost Communication Keep as is Develop Continue regular communication Content Test 1-2 Identify Core Enablement Process Develop schedule for planned and managed surveys Dynamic Org Mapping Review and Update Reporting Keep as is Train Managers Evolve reporting format Action Response Keep as is Pilot Community action planning Ensure that action planning completion status is captured Analytics Evaluate Train super-users Analyze Survey Momentum Keep as is Roll-out follow-up pulses on action plans Sustaining Momentum: Keep as is Integration Review Implement 16 © Copyright IBM Corporation 2015 All talent management activities inform or are informed by the survey data. 16 Conclusion 17 © Copyright IBM Corporation 2015 Enjoyed the session? Suggestions? Give us your feedback! Complete the short survey for this session in 3 easy steps: 1. Download the IBM Smarter Workforce mobile app. 2. Log in with your email address and password: “swf2015”. 3. Locate session in the agenda section of the app and complete the session survey!