Employer-Engagement: What does it mean for HLST? Working with Industry Research to Consultancy...
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Transcript of Employer-Engagement: What does it mean for HLST? Working with Industry Research to Consultancy...
Employer-Engagement: What does it mean for HLST?
“Working with Industry Research to Consultancy”
(informing practice)
Thursday 6th November, 2008
St Anne’s College, Oxford
Peter HarrisProfessor of Accounting & Financial Management
Working with IndustryOxford Brookes University
& Rezidor Hotel Group
(a decade of collaboration)Peter Harris & Knut Kleiven
• One of the fastest growing hotel groups
• Based in Europe - Middle East - Africa (45 countries)
• Corporate office: Brussels
• Operating some 287 hotels = 50,000 rooms (approx.)
• Results for year (approx.): Revenue €785m; GOP €291m; Profit after tax €46m
The Company (at 31 Dec. 2007)
Consulting • Designed business analyst in-company project(1999)
• Key development: Stockholm, company embraced “marginal accounting construct” (2001)
• Designed company-wide cost analysis process(2001)
• Designed programme for financial controllers & general managers (drivers at properties)
Sweden (trialled analysis process) (2002)
• Delivered seminars in-country at the regions Germany, Belgium & Norway (2003)Poland, UK & Ireland (2004)
France, Denmark & Iceland (2005)Austria, Switzerland & Italy (2006)
• Embedded through the company’svirtual management school (2002-2006)
Consultancy (reflection)
• Natural platform for co-operation and interaction between industry & education
• Opportunity to reflect on strengths/contributions ofthe organisation and the university
• Practitioners obtain new/novel applications
• Faculty research endeavours tested/refined/adapted inrigours of ‘live’ commercial environment
• Cutting-edge experience to bring back to teachingenvironment
• Financial rewards to university, school & individual
• Raises faculty profiles(companies tend to engage with individuals)
Contribution to research
• European hotels performance project (a) company-wide questionnaire distribution
(b) facilitated follow-up field interviews
• PhD industry-wide CPA project (Vira Krakhmal)(a) part-funded full-time candidate (b) provided complete data collection access to build a constructive case study model (13-month period)
• PhD pricing project (Jean-Pierre van der Rest)(a) funded complete data collection stage (b) arranged access to 33 hotels -18 cities -16 countries in Europe
• MSc dissertations: generous fieldwork access e.g. (a) one student is currently interviewing corporate office executives in Brussels for “investment appraisal project”
(b) plus another student granted access at two Radisson SAS hotels: Birmingham (for pilot) & London (part of main study)
Partnership beyondthe ordinary
• Sponsored professorial inaugural lecture event –champagne reception & buffet for over 100 guests
• Kurt Ritter, President & CEO attended and deliveredkeynote address for our major alumni event at
Chelsea Football Ground
• Contributed ‘forward’ for new accounting & finance book(& almost a chapter on corporate governance..!!!)
• Sponsor annual Master’s book prize for top student
• Joint authored “a decade of collaboration” article
The company has always said‘yes’
(carry’s responsibility!)
Research to Consultancy/Practice
Institute of Chartered Accountants in England and Wales
Tourism and Hospitality Group Annual Conference, November 2006
Customer Profitability AnalysisResearch Findings
Prof Peter Harris &
Dr Vira Krakhmal
Purpose of the projectConstruct a model to assist hotel companies
to improve customer mix decisions
Phase 1: PhD Research Project (2002 – 2006)
ResearchProject
Model construction
Development of a CPA Model(using activity-based costing)
Case property is a 280-room, four-star, full-service international city-centre hotel
Customer Characteristics by Profit Contribution(size of the bubble denotes the relative number of customers)
Rack
Meetings &
Confe
rences
Consort
ia R
ate
d
WH
P M
eetings
Contr
act
blo
cks
Weekend &
SM
agic
Oth
er
Indiv
idual
No-s
how
Hotd
eals
Tour
series
Non r
oom
Ad-H
oc G
roups
Leis
ure
Dis
counts
Tour
Opera
tor
Oth
er
leis
ure
gro
ups
Non R
oom
Confe
rencesL
ocal W
HP
/WH
P B
usin
ess
-120%
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
Pro
fit
Co
ntr
ibu
tio
nCustomer characteristics by profit contribution
Profit
Loss
Case hotel customer profit profile
50%
100%
150%
200%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
250%
Cumulative % of Customers
Cum
ulative Operating P
rofit
20 % of the customers generate 250 % of the
profits
80 % of the customers lose most of the extra 150 % of
the profits
Unrealised Profit Potential
Actual Profit
Dependence
Ideal situation; little or no subsidising
Room for action; small number of very
unprofitable customers
Low risk situation; no extremes
High risk situation;dependence on few
customers; extensive subsidising
Subsidising effect High
High
Low
Low
Source. Storbacka, 2001
Customer-base portfolio analysis(strategic tool)
Profit profile at the site
Phase 2: Dissemination to Industry (2006 – 2007)
Joint Publication (BAHA, Oxford Brookes University & The Open University)
“Recommended Practice Guide for Customer Profitability Analysis”
(revised draft guide submitted September, 2007)
Phase 3: Informing practice(2008)
Friday 25th April:Presentation of CPA research findings at corporate office, Brussels
Monday 26th May:Meeting with corporate office team from Brusselsat Radisson SAS Portman Hotel, London to:
“Explore the implementation of CPA in the Rezidor Hotel Group”
Meeting resolved to develop a system and pilot in the newRadisson SAS EU Hotel, Brussels
Consulting opportunities are already beginning to flow