Mapping Activity to Understand Risk Russ Briggs SADIA

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 Overriding Insight: Customers on the road long for the comforts of home and office • Product will be positioned in the marketplace as a medium-sized hotel in an intimate setting • Supported by 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

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

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 Location-based Guest Database Medium-sized, Intimate Hotels Unique Customer Service Experience

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 Location-based Guest Database Medium-sized, Intimate Hotels Unique Customer Service Experience Superior Staff Service Attitude

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

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

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

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

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 Location-based Guest Database Medium-sized, Intimate Hotels Low Personnel Turnover Unique Customer Service Experience “Golden Rule” Individual Guest Service In-house Promotion as Key Incentive Superior Staff Service Attitude Extensive Recruiting Process Global In-house Staff Training

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

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

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

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

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

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

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

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

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

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

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

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

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

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?