Mapping Activity to Understand Risk Russ Briggs SADIA International

Mapping Activity toUnderstand 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


• Product will be positioned in the marketplace as a medium-sized hotel in an intimate setting

• Supported by location-based guest database



Medium-sized,Intimate Hotels





Location-basedGuest 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 MapOverriding Insight: Customers on the road long for the comforts of home and office


UniqueCustomer 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




Experience

Superior StaffService Attitude





Experience


ExtensiveRecruitingProcess





Experience


GlobalIn-house Staff

Training






Experience


Low PersonnelTurnover


Training






Experience



In-house Promotionas Key Incentive


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




Experience


“Golden Rule”Individual

Guest Service






Training

No CustomerService

Department




Experience



Guest Service






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 CustomerService

Department




Experience



Guest Service

ConsistentGlobal Branding






Training

No CustomerService

Department




Experience



Guest Service


Global Sales &Booking Network






Training

No CustomerService

Department




Experience



Guest Service



Web Site forEasy Access to Location Data






Training

No CustomerService

Department




Experience



Guest Service




GlobalProcurementDepartment






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 CustomerService

Department




Experience



Guest Service





Focus onHotel Management






Training

No CustomerService

Department




Experience



Guest Service






Consulting to Evaluate New

Locations






Training

No CustomerService

Department




Experience



Guest Service






Design &Architecture SupportFor New Locations


Locations






Training

No CustomerService

Department




Experience



Guest Service








Locations

Expansion into Resorts & Time-sharing






Training



Experience







Locations


Expansion into Resorts & Time-sharing


Guest Service

No CustomerService

Department







Training



Locations


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

ProductPositioning

Overriding RM Insight: RU, PV, IR, AC, ISOverarching Value Proposition:


ProductPositioning


OverarchingValue Proposition


ProductPositioning

TechnicalSupport



People-relatedEngine

Low TurnoverOf Personnel

MotivatingFactor

ContinuousTraining (WIP)


EnablingPrinciple



What we do &what we don’t do

MarketPositioning

People-relatedEngine

ProductPositioning

Website

Design &Architecture

Support

ExpandingBusiness

Focus

EnablingPrinciple

Risk MgmtEveryone’s

Responsibility

Major SupportActivity

HarmonizedDatabases

Technicalsupport

Low TurnoverOf Personnel


ContinuousTraining (WIP)

MotivatingFactorOpportunities

For Development


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?

Documents

Mapping Activity to Understand Risk Russ Briggs SADIA International