Group Members:

Fatima Zehra Hina Shiraz

Shafaq Anwar Shaffia Mansur
Ramla Sadiq Zaakia Sajjad
Ahmed Javaid
 Company Background
 Timeline
 Pre – 1987
 1987-1993
 Signs of Trouble
 Corporate Decline
 1993 and onwards
 Recommendations
 Road map to Future
 Midscale hotel chain
(1967, France)

 Part of Accor Group

 Innovation
 60s- Bedroom Features
 80s- Breakfast Buffet
 90s- Contemporary Art
www.innovationlabs.com/Novotel_Story.pdf
 Unfamiliarity with industry
 Innovations
 Uniformity
 Pioneer in Hotel Industry
 Poly-valency
 Strategy of Out-of-Town Hotels
 Location
 Blend of Features
 Standardization was a key!

 Common worldwide strategy

 Economies of scale
Timeline
 Head office
 Slipping Quality Standards9th level President of Accor
8th level President of Novotel
 Introduction of 95 Bolts 7th level Director of operations

6th level Regional managers

 Change in Management
5 level Directeurs delegues
th

Structure NOVOTEL hotel units

 9-layered structure
4th level General managers
3rd level Sous-directeurs
2nd level Heads of depertments
 Change of Industry and Business Context
(80s and 90s)
 Effect: Change in Basis of competition

 Required:Change in both revolutionary and

evolutionary developments

Globalization of services: some implications for Theory and Practices by Yair Aharoni, Lilach
nachum
INTERNAL EXTERNAL
 95 Bolts (Rigidity)  Economic Downturn
 Staff inflexibility
 Increased response times  Competition increase
 No refurbishment  Political Instability
 Complacency
 Rapid expansion, slow  Switching Customers
innovation
 Favorable market
conditions
 No refurbishment
 Icarus paradox  Industry Dynamism
 Imitation
 Durability
 Inertia
 Poor management Bolts 95 – 1987
Stifling of Individual
 Overexpansion Initiative
Micromanagement
 Inadequate financial controlsState of Inertia
 High costs
Late 1980s – 9
 New competition layered
management
 Unforeseen demand shifts structure

 Organizational inertia – 1990-1992

, Competition
Political Instability
Recession
 Changing the leadership
 Redefining strategic focus
 Improving profitability

Novotel by Calori, Baden-Fuller, Hunt

 New Co-presidents
▪ Complementary personalities

 Re-assembling of core management team

 Flatter Organization Structure

 Brizon
Pelisson Plan – Re-
Novotelization
 New corporate values
 Cost and price cutting

 Computer analysis
 Poly-valency
 Assessment Centers
• Tighter and Leaner Operational Centre
• Anthropologists consulted
• Marguerite and sun relationship
• Redesign of logo
• Abolishment of Bolts
• War Room (On the road)
• Assessment of GM’s
• Changes in internal structure
• Progres Novotel
 Meeting the Future (Les Recontres
de Futur)
 Cross meetings
 Brainstorming sessions
 Regular bi-directional meetings
• GM role as of a coach
• Increased autonomy & responsibility
• Empathy for colleagues’ work
• Freedom to innovate
• Team work initiated
• Inculcation of Intangible resources
• Housekeeping project
• Marketing initiatives
  Revisiting of Customer-focused
philosophy
 Commitment to change (Leadership)
 Progress Novotel
 Empowerment of employees
 Flatter organization
 Decision makers were placed as close
as possible to clients

4 building blocks
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=C674FB348ABFAB25DC086C916A323486
?contentType=Article&contentId=842437
• Response to Changing Business
Contexts

• Continuous Review and Monitoring of

Positioning

• Obsolete Capabilities

The Dynamics of International Strategy by Segal-Horn, Faulkner

OBSERVE THE PAST, RESHAPE THE FUTURE

 Effective change management program

 Un-freeze, Change, Re-freeze
 Recognition program (Reward System)
 Management By Objectives (MBO)
 Investment in;
 New product development
 Marketing
 Acquisition of new customers

Long term success of adaptation: evidence from finland by Erkki

laitinen
 The Seven-C’s of Change
 Choosing a team
 Crafting the vision and the path
 Connecting organization-wide change
 Consulting stakeholders
 Communicating
 Coping with change
 Capturing learning
 Nextup 2015
 Help Novotel understand what the future
will look like in 2015
 Produce as many ideas as possible
 Synthesize the ideas in a new statement
of Novotel Strategy
 Identify the main axes on which Novotel
should concentrate its innovation efforts

www.innovationlabs.com/Novotel_Story.pdf