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As a result of Canadian Pacific Hotels’ acquisition of Delta and Fairmont, we had to consolidate the Information Technology function into a shared-services, cost-recovery model. In addition to the integration, our challenge was to develop a new culture and transform the department’s operations.

Another key objective was to turn around the perceptions of our customers as quickly as possible.

ORCHANGO was instrumental to the planning and execution of this effort. The guidance and expertise of its consultant, as well as his ability to motivate, align and focus people, were critical to the success of this initiative.

— Tim Aubrey, Senior Vice-President Finance & Information Technology

CHALLENGE

Canadian Pacific Hotels had just acquired Fairmont and Delta to create Fairmont Hotels & Resorts.

The consolidation of the IT functions into a shared services represented the first phase of the Merger & Acquisition (M&A) integration. As part of this initiative, the IT function had to become a cost-recovery division selling value-adding products and services to the various hotels – some of them owned by third-parties.

Consequently, changing the culture and transforming the operations constituted two critical imperatives.

Another key objective was to turn around the perceptions of the division’s customers as quickly as possible.

Finally, the announcement of the merger had resulted in high levels of confusion and disengagement among employees.

SOLUTION

We assessed the organization, its culture and its capabilities against the division’s new direction. Working in collaboration with the executive team, we developed a prioritized, pragmatic plan to align the organization with the business plan.

We changed the organization from a functional to a product model. We introduced a performance management framework (including competency models) to help promote the required culture, re-focus the organization and engage employees.

To support the division’s transformation into a value-adding service provider, we developed and executed a comprehensive plan to engage all its stakeholders, change their perceptions about the division and embrace the new way of doing business.

OUTCOME/IMPACT

The culture was successfully changed to enable the division’s strategy.

Customer satisfaction was turned around within 3 months.

The division positioned itself as a valuable supplier of IT products & services, thus fully recovering its costs. The division became a model for Shared Services transformation and a competitive advantage when prospecting new management contracts.

PROJECT SUMMARY

  • Strategic organizational diagnosis
  • Organization and process redesign
  • Change management
  • Culture change
  • Merger integration
  • Clarification & enforcement of roles and responsibilities
  • Competency model
  • Balanced Scorecard
  • Performance management
  • Shared services transformation
  • Business model transformation

CHANGE TIMELINE

  • Phase 1 | “Preparing for the change journey”: 2 months.
  • Phase 2 | “Putting to sea, away from the abyss”: 2 months.
  • Phase 3 | “Navigating the treacherous sea of change” and Phase 4 | “Passing the lighthouse and reaching the safe harbour”: 10 months for both phases.

ABOUT FAIRMONT HOTEL & RESORTS

A leader in the global hospitality industry, Fairmont Hotels & Resorts is a celebrated collection of 59 distinctive hotels, which includes iconic landmarks like The Fairmont San Francisco, Fairmont The Norfolk, Nairobi and Canada’s Fairmont Banff Springs.

Fairmont hotels are one-of-a-kind properties where sophisticated travelers can discover culturally rich experiences that are authentic to the destination. Situated in some of the most exclusive and pristine areas in the world, Fairmont is committed to responsible tourism and is an industry leader in sustainable hotel management with its award-winning Green Partnership program.

Fairmont is owned by Fairmont Raffles Hotels International, a leading global hotel company with 94 hotels worldwide under the Raffles, Fairmont and Swissôtel brands. The company also manages Fairmont and Raffles branded Residences, Estates and luxury private residence club properties.

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