HFT3240 Exam 2

Experience at Cirque du Soleil

Artists Customers Staffs Headquarters

According to the case study on Cirque du Soleil, why did the conductor Oberacker choose to stay with the company, despite a downgrade in compensation and increased work hours?

" Oberacker loved the central role he had in the performance every night and the headiness of total mutual interdependence between himself and the artist."

Investing in Employee Success: 3. Ownership Attitude

"is a state of mind, an emotional attachment, personal responsibility, and pride" How companies create attitude: •Open knowledge-No company secrets •Decision Space to Success- Autonomy •Sharing the Profits

Successful Companies Provide Continuous Learning by:

-Annual Company Retreats -Core Curriculum Reinforcement -College Tuition Reimbursement -Corporate Training Courses -Individualized Development -Coaching -Learning Aids Ex. MGM Grand Las Vegas practices continuous learning: MGM Grand University→they found that their people make them most successful so they developed a certain training program and built the university (MGM university) -Learning Aids: Provide employees with daily reminders of Company policies and procedures, giving employees a feeling of confidence •Ex. Starbucks: "green apron book", an employee learning aid

HBS Hilton: Customers Really Matter Initiative:

-Created on Hilton's enterprise system OnQ -What were the focus and purpose of Hilton's CRM? "A way to use technology to give you the power to solidify relationships with our best customers" -Who were the targets? primarily focused on Hilton's four categories of Best Guests: The 8 million active6 members of the Hilton Honors program; 4+, those individuals with four or more stays in a year; Fast Rez members, those individuals who signed up for an online reservation account7; and local VIPs. What did they try to achieve? The firm identified recognition, personalization, service recovery, and customer analytics as the means to achieve such tight relationships with guests. What were the challenges? The OnQ technology infrastructure represented a cornerstone of the initiative, but consistency of delivery depended heavily on adoption and use by the front desk staff, a critical challenge particularly given Hilton's scale. Scale!!! A False sense of security that comes with early success!

Model of trust

-Desired Service: Level 1:What the customer thinks the service can and should be. Service above the zone is superior -Zone of tolerance: Service within the zone is satisfactory -Adequate service: Level 2:Minimum service that the customer finds acceptable. Service below the zone is unacceptable -Companies that sustain success consistently operate above the zone of tolerance

HBS Four Seasons: Communication:

-Direct Line: A method where general managers could speak with employees, supervisors, and managers to learn about issues at different levels and address them appropriately The F.S. George V was open with the press: As a result, the hotel received no negative comments

HBS Four Seasons: F.S. George V

-Goal: To be one of the "Palaces" of Paris, but in modern the Four Seasons Way -"We want to be a symbol of France that is in movement, a European France, a France that stands for integration and equality" -video tour of the F.S. George V: located in Paris steps from the Eiffel tower; awarded top international hotel and best hotel in France; suite decorated like a French home; fine dining in a warm atmosphere; full spa; indoor pool

HBS Cirque: The Staff Experience: Martin Dumont's (interim tour director)

-He used to be a chartered accountant for Ernst & Young in Canada. He joined Cirque in 1996, and after passing through roles in finance and administration now was director of public sales, managing the major touchpoints with the customer including the box office, the house, the concession stands, and merchandising. He was also the understudy for the tour director. •What are the challenges for him as a tour director? People on tour need to be adaptable and resourceful. You're being tested all the time (different schedule times from headquarters)

HBS Hilton: Hilton OnQ

-Hilton's integrated IT infrastructure: OnQ→ integreated solution and readiness to serve cutomers "on cue"; premise= technology is an enabler for employees to deliver great customer service -Custom-built and designed to support property-level operations -Enables Hilton's CRM at each customer touch point -What were the benefits of having OnQ system? Component of the expansion strategy→ allowed the firm to open more hotels at a quicker pace and with more consistency of delivery

HBS Cirque du Soleil: The Challenges

-How are the Cirque's employees different from that of other service companies? They are from over 20 different countries; mixed artistic forms, mixing Brazilian dance with classical ballet with mime. -What are the challenges with the artists? Constant challenge finding the right artists; multicultural backgrounds so the artists must not be prejudiced; finding out what the artist's needs are and how much support that takes -How does Cirque help the artists develop? Teach them to expand, to blow up, to be in touch with who they are. They cast people (children) with others from their area to build support systems.

HBS Hilton: Hotel Diversification Process:

-How did Hilton work on portfolio diversification? They focused on domestic growth in the lodging segment as well as through diversification into casinos and vacation ownership; The acquisition of Promus pushed Hilton to nearly 1,700 properties; in 2005 Hilton Hotels bought back Hilton International bringing about 400 Hilton properties into the fold; franchising and alignment with real estate owners -Why was it needed? "Needed scale and breadth to be the first choice of the world's traveler. Wanted enough distinct products and different price points in order to be considered by guests across the full spectrum of segments and reasons for traveling. -What would be the benefits of having a diverse portfolio? Has many investors in the company; -What are the Hilton brands? Promus Hotel Coprporation, Hampton Inns, Embassy Suites,

The artists experience: What are the Oberacker's (conductors) experiences?

-How does his experience at Cirque differ from that he had in Broadway? Less astonishing given his previous exposure to highly creative costuming, lighting, and dance. almost jumped from a 10-story building when they told me my starting salary two and a half years ago, it was so low. But they told me, build the blocks, put in your time, the rewards will be there. We do 10 shows a week, which is two more than any Broadway house, and it's sometimes a strain. We are paid per show, not per week, so we are unemployed for a fourth of the year. The Broadway union required employers to provide a per-diem stipend for food and housing, whereas Cirque provided the food and housing directly. Oberacker said the 12 hours of rehearsal he put in every week without remuneration would never have been allowed in a Broadway theater. -What is his plan for the future? His ambitions as a composer would best be served by leaving Cirque within a few years -What does he love about Cirque? The central role he had in the performance every night and the headiness of total mutual interdependence between himself and the artists

HBS IBM: Good Business Ethics

-IBM holds high standards for conducting business: Example: IBM reports on company activities with regard to areas such as chain practices, the environment, fiscal transparency, and corporate philanthropy -What are the Business Conduct Guidelines? What are the results? Presented as part of a new hire introduction and thereafter signed yearly as a condition of employment; 50 questions about ethics and responsibilities, internally and externally; the reputation for high standards makes all employees adhere to the standards; customers have respect for IBM and know they are cared for; governments don't ask for money or any favors and have a professional approach;

HBS IBM Building Corporate Citizenship

-IBM utilizes its resources to achieve social and educational needs of society -Helping the community leads to other connections Example: Government influence -What is the CCCA? A small corporate affairs staff that was added to Litow's group (Corporate Citizenship and Corporate Affairs)

The Four Seasons is successful because of their ability to:

-Maintain a strong structure -Ability to adapt -Appear true and up front -Hold and hire loyal employees

Acting Small: With employees

-Nurturing Ownership Attitudes -Fostering Teamwork -Individual Accountability -"Can Do" Spirit of Action

How companies create attitude:

-Open Communications with employees: "conveys trust and evokes commitment": Ex. Southwest Airlines "nuts about southwest" blog: the forms of communication Southwest uses to include it's employee: they keep an ongoing blog that employees can update information on -Giving employees Autonomy: means trusting employees with decision-making and idea generation: Ex. Google empowers their employees to be successful: allows them to get their products developed very quickly •Ex. Microsoft empowers it's employees with techniques: *their environment allows their employees to innovate be productive and ultimately make a difference -Sharing the Profit: gives employees a feeling of ownership and responsibility for the company's success: Ex. Keller Williams Real Estate feels profit sharing is important

HBS IBM Strategic Process:

-Reinventing Education -IBM supplies Intermediary Organizations (business partners) -Implements community benefits -Government pays attention and works with IBM

HBS IBM Values and Corporate Citizenship: Foundation

-Started in 1911 by Thomas Watson -The longest operational technology organization -CEO, Sam Palmisano, is one of IBM's man drivers in making IBM a globally integrated enterprise (GIE) -After the "Values Jam" (a 72 hour web chat sessions about what IBM stands for; test of IBM's technology and culture) in 2003, a draft of three values appeared: - Dedication to every client's success -Innovation that matters for customers and the world -Trust and personal responsibility in all relationships

HBS Four Seasons: Cultural Cocktail:

-The Four Seasons successfully arrived and opened in France, exceeding expectations -Despite expected tension, a professional and diligent manner saw them through challenges -The key to their success was holding a "pragmatic mind" on the goal by doing the following: Holding high and strict standards for every Four Seasons Resort, Abiding by and respecting France's labor laws, Opening a Parisian Palace with "French honor.

HBS Hilton Hotels: background

-The Mobley Hotel was founded by Conrad Hilton in Cisco, TX in 1919 -Became public as Hilton Hotels Corporation in 1946 -Acquired Promus Hotel Corporation in 2000 -Started Customers Really Matter (CRM) initiative in 2002 -Hilton Hotels Corporation was purchased by the Blackstone group in 2008 -The Hilton brand is connected to nearly 3,000 properties with around 500,000 rooms

HBS Hilton: The future

-The principles of CRM became "Hilton's DNA" What are the current and future challenges of Hilton's CRM? Is it worthy of reinvestment? CRM-Challenge of charting the evolution; the ROI is almost impossible to measure.

#1 way to build excellent customer relationships: Knowing your customers! How do companies learn about their customers?

-Track buying patterns -Customize services and promotions to customers' needs -Coordinate multiple services to same customer -Provide two way communication channels -Augment services with valued extras -Personalize service encounters

The Four Seasons Way: From Apples to Oranges:

-What are some of the new implementations the Four Seasons introduced into the French hotel business? Hired Le Calvez to be general manager; assigned a 35-person task force for every property; 2.5 staff per room; 35 hour work weeks; more emphasis on food and beverage; employee of the month and employee of the year program

HBS Cirque: Life at headquarters

-What feature does The Studio have? Creation and production center for the entire organization; next to the second larget landfill: -What is life like at Headquarters? Have three different companies in one; artists, customer creators, corporate offices; can smell creativity; can have lunch in the sun shine, lay on bean bags, great cafeteria food, people from all over the world, everyone is always so happy; has many values -How does it support and motivate employees? Values; ties everyone to the end product; involved in taping a "thank you" for an award ceremony so not only management was represented

The Product of Cirque du Soleil

-What is the main product? A circus without animals; -What aspects does a show include? Cirque combined street performers, clowns, acrobats, and gymnasts to present feats and create theater and dance dramas. The music of Cirque was in a Latin-sounding language designed to transcend cultural boundaries. -What are the other products of the Cirque? Multimedia division (Cirque du Soleil Images)=films, TV shows, Imax productions; products in publishing and merchandising

HBS Hilton: Competitive Brandscape:

-What was considered the main competitor and why? Because of tradition, size, and segment diversification, Marriott International was the only comprehensive competitor of Hilton. -Any other competitors? Difficult to definitely identify Hilton's competitive set, with some companies, such as InterContinental Hospitality Group (IHG) and Accor, being larger in total size but less diversified and some others, such as Starwood Hotels and Resorts Worldwide and Global Hyatt Corporation, managing very successful brands but lacking a strong presence in all segments -Proliferation of Brand Programs: Hilton had been the first major multi-brand operator to roll out a strong customer relationship management effort that delivered chain wide

HBS Hilton: Delivering the CRM Promise

-What was the role of OnQ in delivering its promise? "OnQ Reservations allows the agents to access callers' personal dossier and update their preferences. This information shortens the time on the phone and it enables better cross-selling." OnQ enabled the front office staff to print the Best Guests arrival report.The report listed and ranked all expected guests that had a profile in OnQ and formatted relevant information from their dossier in an easily scanned format. Armed with this information, the front office pre-assigned guests to rooms and ensured that the rooms were appropriately prepared according to guest preferences. -What is a SALT survey? What is it for? Upon guest departure, a random sample of guests were asked to fill a survey. The Satisfaction and Loyalty Tracking (SALT) survey was the key component of the CRM initiative and it was an important component of Hilton's measurement system. Management carefully monitored the ratings a property received on overall experience, ability to recommend, and willingness to return. The driving objective was improvements in the percentage of surveyed guests who rated the property nine or ten on a ten-point scale. Cowan explained: "If you ask me what is the first thing I look at when I arrive in the morning, the metric I really track, that is the SALT surveys. That's the report card from our guests. If you want to excel in this business, you have to do that better than anyone else."

HBS Cirque: Touring Life

-What were the challenges with touring life? Big cultural differences -How did it support artists and staff? Restructured acts to minimize injures; tries to keep artists engaged even when they cant perform -What is its internal corporate communication process? employee newsletter, la boule, composed of employee submissions that were entirely uncensored -What were the code of employee behavior? There isn't one

The artists experience: Gonzalo Munoz's (clown artists)

-Why did he join Cirque? He went to see "Quidam" and did not actually like the role of the clowns in the show but he had great respect for one of the clown artists so in order to work with him he would accept the job -What does he love about Cirque? He loves the people he works with. He estimated that working at Cirque provided a 300% pay raise over his previous work. He also valued the noneconomic benefits that Cirque provided, such as language training onsite in six languages to help the artists communicate with the other employees from all over the world.

Employee Relationships

-are critical for labor-intensive service companies •Company-employee relationships facilitate company-customer relationships •Ex. Omniture: keeps promises to their employees: Josh co-founder and former CEO of Omniture; the importance of integrity is discussed; integrity at Omntirure meant doing the right thing whether it was in a contract or not and building a relationship with your employees to make sure they know you have their back; that reaps huge benefits; in 2000 they had to let go of 48 people right before Christmas and they told them if there was ever a chance they would pay them again and about 5 years later they were able to get checks out to the people that were laid off; word spread that Omniture took care of people; benefit to your company if you treat people fairly; He is now working in business intelligence to fill the needs he saw as a CEO •Ex. Wyndham: how it views it's employee relationships: employee culture: •Great companies have employee relationships where: Relationships are personalized, Mutual respect is abundant, Leaders are accessible, approachable and caring, Organizational trust is nurtured, Fun is always in the air.

Acting small with employees: Individual Accountability:

Allows employees to determine their own growth and success within the company •Ex. what Enterprise Rent-A-Car does to make their employees feel like they work for a small company: why do employees love working there? The opportunity for advancement within the company as long as you work hard; teach you how to run your own business; meet people that are like-minded; shows you how to be an entrepreneur; **"one of the best places to launch your career"* •Ex. Target fosters teamwork: always say "We" never "I"; collaborative meeting space called "target hall"; social media platforms (Redtalk allows employees to follow each other); mentorship; surveys about what is and isn't working;

Acting small with employees: fostering teamwork

Allows employees to feel like they are supported and working toward a common goal amongst their peers, making it feel like a small company •Ex. YouTube acts like a small company by fostering teamwork: special place within Google because they have their own building and teams; you play the role of every engineering process; teams are small; they have a pool a putting green, garden, basketball hoop, fitness center, pets are allowed; work in a place with people that are the best in the industry; people are hired that enjoy what they do; the job is flexible; everyone is a "superhero" of some sort; everyone is passionate about the site and the users

According to the case study on Cirque du Soleil, all of the followings are the Cirque's business EXCEPT:

Cirque du Soleil offers a wide range of business including circus show, feature film, publishing and merchandising.

Acting Small with customers: Regional teams

Companies within companies Adding regional centers/teams: allows the company to customize their service for each particular region. •Ex. Global Media (a telemedicine company) opened an east coast regional office to service their clients like a small company

Why does fostering relationships benefit the customer?

Customer benefits to company relationships: •Confidence benefit: reduced anxiety; increases faith that promises will be kept •Social Benefit: being recognized by employees •Ex. Jordan Estate Winery: develops customer relationships and offers great hospitality experiences to its customers: "Through exclusive, intimate experiences, Jordan Estate Rewards membership creates lasting wine country memories for you and your loved ones. Jordan estate rewards program: makes great traditions accessible; people enjoy the many different activities at the estate; combines all of the CEOs favorite parts of the property in one big experience that reflect his personality, attention to detail, and focus on quality. "European Hospitality" •Ex. Hilton: develops relationships with its customer through its rewards program, Hhoners: rewards include free hotel nights, experience getaways, dream vacations, premium merchandise, room upgrades; over 3,900 hotels; points and miles for the same stay or extra points; iphone app to take personalized attention to order room service; 10 hotel brands

According to the article, "IBM Values and Corporate Citizenship," which of the following is NOT one of activities described in IBM's social responsibility and corporate citizenship reports that was first issued in 2002?

Educational funding

According to the video "Empowering Employees", how does providing employees with the right tools empower them to be productive and make a difference?

Employees are able to generate and test ideas at very fast pace.

Acting small with customers: Service Customization

Expertise in customer personalization •Ex. Mandarin Hotel customer service personalization system that make the company seem small to its hotel guests: RFM system •Ex. Biltmore Hotel creates personalized experiences for its guests: make itineraries for the guests entire stay; motto is "never to say no" and "nothing is impossible";

According to the video "Working @ YouTube", YouTube fosters teamwork by having frequent company social gatherings such as picnics and holiday parties.

False

Embassy Suites, Waldorf Astoria, Residence Inn, and Hampton Inns are all Hilton Brands.

False

The Mobley Hotel was founded by Paris Hilton in 1919

False

Trust plays an essential role in the size of the tolerance zone. However, service below the zone is sometimes acceptable because of the solid relationship built between the company and its customers

False

According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" the Four Seasons' revenue per room in 2001 was 5% higher than that of its primary US competitors and 10% higher than that of its European Competitors.

False: According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" Four Seasons' revenue per room in 2001 was 32% higher than that of its primary US competitors and 27% higher than that of its European Competitors.

According to the Cirque du Soleil case study, in the mid-1990s, Cirque du Soleil tried to better support its shows traveling around the world by establishing branch offices in North American, Australia and Asia

False: In the mid-1990s, Cirque had tried decentralizing management into three regional divisions, one in North America, one in Europe, and one in Asia.

According to the case study on Cirque du Soleil, founder Laliberte wants to take the company public so investors and shareholders can make decisions about the direction of Cirque du Soleil

False: Laliberte eschewed becoming too corporate, especially trying to answer to outside investors who constrain his freedom and his ability to treat his employees and invest in them as he chose, "He had declared in a '60 Mintues' broadcast, 'I will never go public."

HBS Cirque du Soleil History

Founded by a troupe of street performers near Quebec City, Canada in 1984 Equally owned and managed by Guy Laliberte and Daniel Gautier before 1998 Laliberte bought out Gautier's half and became the current President and Chief Executive Officer (CEO) Work force grew from 73 in 1984 to over 2,000 presently Audiences increased from an average of 270,000 in the 1980s to nearly 6 million in the early 2000s "Artists Rebellions" occurred in 1987 and 1988 Failed in decentralizing management in mid-1990s Headquarters in Montreal

According to the case study on Cirque du Soleil, what did COO Marc Gagnon do to encourage employees to make their voices heard within the company?

Gagnon invited criticism of himself and the management by creating an employee newsletter composed of employee submissions that were entirely uncensored.

Acting Small with customers: Local offices

Having local offices: allows companies to get involved with local communities, helping those in need and being a vital part of their customer's towns and neighborhoods •Ex. Bank of America develops community relationship like a small company would: Neighborhood Excellence Program; Two outstanding nonprofit/charitable organizations in 45 markets benefit from the Bank Of America Neighborhood Builders Program. Since its inception in 2004, Neighborhood Builders has helped nearly 600 nonprofits with operating support and rigorous leadership training; inspiration corporation training program-helps people who are in trouble; helping people rebuild their lives

Why is it important for service companies to invest in employee success?

How employee satisfaction can affect the bottom line: research finds that firms cited as good places to work earn returns that are more than double those of the overall market; 100 best companies to work for earn 14% compared to the normal 6%; the "fortune list" is the most visible measure of employee satisfaction; a good example is Google who focuses on long-term growth

According to the video about MGM Grand Hotels, why is it important to provide a certain level of development and training to all employees (as stated by the company president)?

In order to improve the quality and engagement of employees

How do companies invest in employee success and satisfaction?

Investing in Employee Success: 1.Strong beginnings: Getting employees off to a strong start 2.Continuous Learning: Continually developing knowledge and skills 3.Ownership Attitudes: Making them feel like part owners of the business

Investing in Employee Success: 2. Continuous learning

Keeps employees motivated and excited about the job AND on top of the latest tool and skills of the trade. •Ex. Zappos employees discuss how the company's core values and culture are reinforced: "new hire programs"; core values are delivered throughout service; signs cover the office with the core values on them; personal story of an employee who sees cash and doesn't take it because she has become a better person working at Zappos; they are about *delivering happiness in a box; not thinking just about the bottom line!; they place a lot of value on the employees: its not all about the customers it's all about the employees which spills over to customer service

According to the case study on Four Seasons, when opening the F.S George V, how did Four Seasons go about spreading the company culture and portraying the United States in a positive manner?

Management required staff with prior Four Seasons and/or U.S experience to serve as ambassadors

Which of the following programs allowed IBMers to work locally?

On demand community

From the video clip on GlobalMed, which of the following tactics is GlobalMed implementing as a way of acting small with customers?

Opened an east coast regional office to service their clients like a small company

From Book: Perceived competence

Perceived competence: becomes a competitive advantage for companies to earn customer's confidence with dependable, accurate service •Dial a mattress: delivers mattresses with same-day delivery so the relationships between their company and the truck drivers requires trust and competence

According to the video about PointB, PointB employees stay longer with the company than employees at other companies for all of the following reasons EXCEPT:

PointB gives easy work to its employees.

According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,'" what did "consistently exceptional service" mean to the Four Seasons?

Providing high-quality, truly personalized service to enable guests to maximize the value of their time, however the guest defined doing so

Acting small with customers

Regional Teams -Companies within companies Service Segments -Specialized divisions Service Customization -Expertise in customer personalization Local Offices -Developing community relationships

HBS Four Season: Service Culture and Standards

S mile E ye R ecognition V oice I nformed C lean E veryone Although these are universal standards for all Four Seasons locations, exceptions are made

According to the article, "IBM Values and Corporate Citizenship," the values jam was a test of IBM technology and a test of the culture.

True

Acting Small with customers: Service Segments

Specialized divisions allows the company to provide additional services that compliment others, in a focused way •Ex. Why eBay acquired PayPal as their payment services division: payments made and accepted without the use of a credit card; eBay is hoping to boost the number of electronic transactions; allows them to offer communities new tools and added flexibility to do more business; their biggest goal is to improve PayPal's poor reputation for customer service

After the "values jam" in 2003, which of the following was NOT included in the three overarching values of IBM?

Strong culture and commitment to fairness

The Four Seasons Way:

The Golden Rule "Treat others as you would like to be treated" The Four Seasons exemplifies this by recognizing the needs of its customers and its employees To become a French employer, the Four Seasons had to overcome both political (laws & regulations) and cultural obstacles: strict labor laws! tax burdens, 35 hour work weeks, employee and retirement benefits are generous; termination laws were particularly tricky

According to the video "Empowering Employees," which of the following is not mentioned as one of the way that the company empowers its employees to make an impact?

The video mentions: 1) surrounding employees with great talent, 2) providing custom-designed training, support materials, and 3) great tool and capabilities

HBS Four Seasons: What are some of the challenges that were in encountered in France?

To preserve the soul of the legendary, almost mythical George V Hotel while rebuilding it for contemporary travelers. Built to American safety standards, also had to adhere to local laws which affected the design and work patterns; French hygiene law stipulated that food and trash be carries down different corridors and up and down different elevators; employees had the right to work near a window for a certain number of hours each day"Right to Light"; the opening was particularly challenging because of French regulations; ex. fire regulations but the fire department wouldn't come in and inspect until everything else was complete

Investing in Employee success: 1. Strong Beginnings

Training Employees on: Core Values, Company Mission, Corporate Policies, Product Knowledge, Service Standards, Customer Service Strategies,Company Expectations. Ex. Southwest airlines: new employee orientation process: "a day in the life of a new hire"; onboarding department focuses on keeping people there once they are hired; onboarding was created to spread the awareness about the hiring crunch as well as lowering the turnover rate; taught that "customers are not just a number"; the new hire comes in, fills out paper work, take their picture, make their badge, current southwest employees give new hires a new hire packet that has a t-shirt lanyard passport and a personal note, they all learn a dance, participate in karaoke, play interactive games. -Reviewing core values and the company mission increases moral and recreates excitement for the brand→ Ex. Starbucks conducts core curriculum reinforcement:

According to the article "How Investing in Intangible-- Like Employee Satisfaction-- Translates into Financial Returns", Google has an reputation for caring about employees' welfare and emphasizing corporate social responsibility.

True

According to the article, "Four Seasons Goes to Paris: '53 Properties, 24 Countries, 1 Philosophy,' Four seasons managers emphasized that standards set minimum expectations

True

According to the case study on Cirque du Soleil, employees value the opportunities that Cirque de Soleil gives them to work with the best in their respective fields.

True

According to the case study on Four Seasons, when taking over a hotel, Four Seasons approaches transforming the culture of the organization by hiring and promoting employees with what the company views as the right culture and attitudes.

True

According to the video "Jordan Estate Rewards: Customer loyalty program reinvents the wine club", the inspiration for a hospitality wing on the Jordan Estate Winery came from John Jordan's parents' trip experiencing European hospitality:

True

According to the video "What is the Hilton HHonors program?," Hilton's development of an app for Hilton HHonors members is an example of offering personalized services

True

According to the video "Why Profit Share," higher commission spilt was established so that the agents could make their own business decisions?

True

According to the video about Starbucks, one of the company's goals is to hire employees that re upbeat:

True

The CRM initiative started by Hilton in 2002 states that: Customers Really Matter

True

The Hilton Brand is connected to around 500,000 rooms.

True

With Hilton Honors you earn airline miles with over 50 airline partners

True

HBS Cirque: Touring Life- staff experiences

What are Alison Crawford's (Artistic Director) experiences? Alison Crawford, with Cirque for five years, had started as assistant to the choreographer for "Quidam." She took a leave of absence to go to Chile to participate in Cirque's social service program, Cirque du Monde, aiding children at risk, and came back to restage "Quidam." When Cirque offered her the job of artistic director for the new show "Dralion". -What are Vincent Gagne's (Multimedia Ventures) experiences? He had been a tour director for Cirque and now works in the Montreal headquarters managing multimedia ventures. -What are Marc Gagnon's (COO) experiences? Marc Gagnon, chief operating officer, had started with the company in human resources in 1989. His first task was to write a termination policy because Cirque did not have one in place.

HBS Cirque: The Staff Experience: Richard Imbeau's (HR Executive)

What are Richard Imbeau's (HR Executive) concerns? "There will always be people who are willing to take a pay-cut to work here, but now we need to be able to hire staff with direct experience. It is not enough to hire groupies who have potential."

HBS Four Seasons: What are some examples of exceptions made in order to accommodate a customer?

What are some examples of exceptions made in order to accommodate a customer? Exceptions to the 270 standards were permitted if they made local sense. For example, one standard stated that the coffee pot should be left on the table at breakfast so that guests could choose to refill their cup. This was perceived as a lack of service in France, so it was amended there. Standards were often written to allow local flexibility. While the standards required an employee's uniform to be immaculate, they did not state what it should look like. In Bali, uniforms were completely different from uniforms in Chicago. Managers emphasized that standards set minimm expectations: "If you can do something for a client that goes beyond a standard," they told staff, "do it."

HBS Cirque: The Customer Experience

What are the goals of Cirque du Soleil for customer experiences? "When a customer enters the big top, he will have an experience he will never forget." -How does it use customer feedback in creating artistic work? The company would never allow surveys or audience feedback to be used to create product. The artists hate the word product and instead use "artistic works" -Where does it serve customers? Go to town for six weeks, then leave; "O" is in vegas

Perceived Competence

a customer's idea of the company's ability to carry out the service •A service company's competence is instrumental in establishing customer trust: •Competence (doing things right) + Service Promises Kept = Customer Trust •Ex. Jersey Mike's subs: what they do right to keep customers coming back: the "Submarine: sandwich; atmosphere and knowing their customer; they know everyone's names and they are "friends"; the menu offers more than 20 selections; they cut the bread all the way through, oil and vinegar, spices, cut fresh produce; over 300 locations today; a lot of history passion and emotion with the original store; point pleasant beach new Jersey is home to the submarine sandwich

According to the video about Starbucks, how did Starbucks conduct core curriculum reinforcement training?

a three-hour store shutdown, company-wide, for training sessions

Customer Relationships

are a crucial element to the service company; why? •Encourages repeat business •Helps market the company through word of mouth •Increases chances of add-on sales •Ex. Starbucks managers create customer relationships: hire people who are enthusiastic with the same passion and goals; people who feel good about the customers and the way they are; know what the customer drinks; listen to some music when he comes in to get the staff fired up; customer service seems to be a lost art but they value it and it keeps customers coming back •Ex. Southwest: employees create positive and personal customer relationships: woman going in for an open heart surgery; southwest employee tells her everything is going to be ok then called around and found which hospital she was at to talk to the family; she made her feel special and like she was the only passenger that day. →Our founder, Herb Kelleher, is famous for saying "the Business of Business is People."

Trust-Based relationships

are valued relationships that last, helping the company control its destiny and perpetuate itself.-

From book: St. Paul Saints: Halloween in July:

awarded prizes to fans wearing the best costumes, gave kids candy; they offer value in exchange for customers time and money

Partner Relationships:

can help a company serve its customers better and bring new customer to the company •Ex. CIO Summit: how corporate executives discuss supplier relationships: how top executives maintain supplier relationships: clear contracts and an awareness of what suppliers want from the partnership;

According to the video "Josh James of Omniture: Inspiring story on keeping promises" Omniture keeps promises to employees by rehiring laid-off employees when the company started doing better:

false

Perceived Fairness:

how the customer sees the company's reactions, behavior, and their degree of justice (one perceived act of unfairness can destroy a relationship forever) -From book: an individual's perception of the degree of justice in a firm's behavior (the person must feel vulnerable) •Ex. Unfair practices of major credit card companies: Credit card companies are demonstrating unfair practices by: 1. Burying "secret" fees in customer purchases, 2. Creating a new fee called "interchange" that most customers don't even know about (credit card fair fee act)

According to the video about Google, why does Google try to avoid bureaucracy

in order to give its employees autonomy to work on their projects.

According to the video "Bank Of America Neighborhood Excellence Initiative - Inspiration Corporation", Bank of America develops community relationships by:

investing in community groups that help build local neighborhoods

Trust of a company:

is formed when the company meets customer expectations with service and quality consistently

Acting small with employees: Nurturing ownership attitudes

makes employees feel like their ideas are valued and makes them feel partially accountable for the company's success •Ex. PointB Management Consulting's co-founder discusses employee ownership: why do people at PointB stay longer than people at other companies?: employee ownership; associates participate directly in the success as owners; people stay because the environment makes it easy to face challenges and feel cared about; each project they work on benefits them directly because they are owners; people feel like its their firm; in 2008 employee stock ownership stock plan: employees buy stock and it will be 100% employee owned; employee ownership is long-term because you have a stake in the business and that's the unique opportunity;

What is Acting Small?

means conducting business like you are an entrepreneurial start-up company, hungry for business. •With Customer: acting fast, seamlessly, flexibly, responsively, personally, and more •With employees: creating a community with a shared vision and collaborative mission

Acting small with employees: Can do spirit of action

means that innovation and fearless creativity is part of the company culture that is permeated throughout all levels of employment •Ex. Google fosters a "can do" attitude: generous quirky perks keep employees happy and thinking in unconventional ways; the "googleplex" is a corporate office with many perks; small teams are assigned to see if wild ideas work; allotted 20% of their time to work on their own ideas; focus on success rather than failure; move move move and if it doesn't work move on; the anything-goes culture is maintained with a rigorous hiring process="whether someone is Googley";

According to the article, What was one of the Four Seasons' "greatest challenges and triumphs, according to executive vice president of human resources, Josh Young?

was opening its first French property by renovating and operating the hotel George V, a historic Parisian landmark

Categories and principles of Justice:

•Distributive justice: refers to the outcome of a decision •Procedural justice: concerns the process used to determine the outcome and the interpersonal treatment of individuals during the process