Client Situation

Our client owns and operates hotels and motels. The client develops and manages luxurious hotels as well as mid-market hotels worldwide. Cedar assisted the hotel in its program management through helping in revamping their overall business model, selection for architects & vendors, organization restructuring & the next steps for the conglomerate.

Cedar’s Approach

  • Cedar realigned the client’s business model to reflect market changes. This was done with the help of the straw model.
  • Structures were recommended in a department wise function for upto Tier 2 level.
  • A brief comparisons of roles & responsibilities of select functions was done to differentiate scope of work at group, SBU & unit level.
  • A scan of prospective vendors was conducted & 3 vendors were evaluated as a part of the IT selection exercise.
  • Cedar approach to evaluation process was based on sequence of pre & post RFP activities.
  • The vendor ranking was done on 7 critical areas such as central functionality, PMS functionality, staffing & support & so on.
  • A detailed selection of architects was done based on various parameters along with the key criteria of hotel design experience. For this purpose, 50 architects were shortlisted initially.
  • Strategies forward were prescribed for the organization after determining the past & present vision, business model & financials of the client.

Outcome

The project mandated to Cedar had the following outcomes:

  • The strategic business unit structure was developed in such a way so that it was scalable with business growth. The unit structures developed were in line with the business strategy.
  • A principle of lean organization for matrix reporting was recommended by Cedar in order to align group structure with the strategic business unit structure.
  • The HR & Admin part of Finance in original structure – were separated out due to enhanced size & scale of operations at unit & SBU level.
  • The recommended SBU & unit structure were also aligned with future proposed group structure.
  • 14 detailed JDs were developed for key positions at the Unit & SBU level along with strategic aligned individual performance measures, provided for, by Cedar.
  • An architect was recommended by Cedar after a detailed screening of 21 architects, who were ranked based on portfolio, certifications, hotel experience & presence.
  • A list of next steps were rolled out to the client which included finalization of vendors & architects, commercial & contractual negotiations, other site finalizations, development of HR policies & recruitment of other key positions.

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