Performance Magazine2023
Performance Magazine2023
TRAVEL BREAKING
ISSUE DOWN SILOS
Strategic Planning
IN-DEPTH and Performance
Management Director
Behind the Curtain:
Measuring Performance Dr. Keith Clinkscale talks
in the Airline Industry about transforming the
way performance results
Resuscitating Restaurants: are measured.
What Drives Performance
Culture Today
AROUND
THE WORLD
Revitalizing Central
Finland's Tourism
Strategy
LIFESTYLE
Engage Your
Emotional
Intelligence To
Adapt To Different
Work Environments
INDEMNITY STATEMENT
The KPI Institute, Performance Magazine, Printed Edition, no. 23, October, 2022, Melbourne, Australia
Indemnity statement:
The KPI Institute has taken due care in preparing the analysis contained in this publication. However,
noting that some of the data used for the analysis have been provided by third parties, The KPI Institute
gives no warranty to the accuracy, reliability, fitness for purpose, or otherwise of the information. The KPI
Institute shall have no liability for errors, omissions, or inadequacies in the information contained herein
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professional excellence! As the world opens up, charting a route to recovery
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CONTENTS OVERVIEW
News 01
Latest publications
and industry updates
In-depth 16
Fraud in the Travel Industry:
Is Digital Footprinting the Solution?
On the cover 39
Silo Transformation: Breaking Down Barriers
in Palm Beach County
Organizations
NEWS
Benjamin Liagre Tips for strategic planning in high volatility
Professor Wael Nawara environments and the best way to measure
Dr. Sami Fathi Aldweji employee performance
1
NEWS NEWS
2 3
NEWS NEWS
Hyatt Hotels Corporation shares performance data on revenues, HSMAI survey reveals woes in retaining talent in hospitality
occupancy
The Hospitality Sales and Marketing Association the trends detected by the report emphasize the
International (HSMAI) has launched the report value of corporate culture, servant leadership,
“The State of Hotel Sales, Marketing, and Revenue mental health and wellness, and reskilling and
Optimization Talent 2020-2021.” Results found upskilling. The insights are from “50 brand and
that employers in the industry are facing issues in hotel management company revenue executives
the areas of compensation and benefits, scarcity and ownership group commercial executives across
of competent candidates, pipeline concerns, and disciplines to rate the challenges facing commercial
poaching loyalty and company culture. Meanwhile, talent in hospitality.” | Source: hsmai.org
Hyatt Hotels Corporation said that its comparable or approximately 3% higher when Asia Pacific
system-wide RevPAR in May was around $127, the was excluded. Comparable system-wide RevPAR
highest RevPAR performance in any single month increased by 2% in May compared to April, owing US announces new National Travel and Tourism Strategy
since November 2019. RevPAR, a commonly used to higher occupancy, mainly in urban areas. In
performance measure in our industry, refers to the addition, the average daily rate in May was nearly
product of the average daily rate and the average 8% higher than in May of last year, driven by luxury
daily occupancy percentage. System-wide RevPAR brands in the Americas, which outperformed 2019
in May was around 6% lower than in May of 2019(1), by approximately 24%. | Source: businesswire.com
NEWS FEATURE Meanwhile, authors of the study “Lean management management makes decisions based on performance
in hotels: Where we are and where we might go” KPIs. Performance results from the lean method
6 7
NEWS NEWS
NEWS FEATURE
Using the evaluation process, the researchers came and other executives mobilized their experienced
up with the top 20 lean hospitality methods (see chefs to tailor different food offerings to cater to
Figure 1). their customers' needs but optimized costs by using
the same ingredients for standard food meals. To
track the performance of the project, they used a
Successful Lean Practices loyalty metric like the composite score (likelihood to
recommend). They did not only boost sales in their
The hospitality industry has undoubtedly discovered “The pandemic and its impact on tourism, jobs, and 2020. Still, these levels remain 72% below the
menu but also drove up customer satisfaction.
the benefits of the lean phenomenon. In the hotel revenues offer an unprecedented reminder of the pre-pandemic year 2019. Meanwhile, the latest
sector, Marriott in the U.K. conducted workshops need to rebalance our relationship with people, UNWTO Panel of Experts survey reveals that most
Yukai resort in Japan is cited in the 2016 study
on lean thinking and captured higher customer planet, and prosperity. The green transformation experts (64%) agree that international tourism will
mentioned above as a model for successful lean
satisfaction rates in the post-implementation phase of the sector is needed, not just for the planet, but not reach the 2019 levels until 2024 or later.
application. The establishment aims to eradicate
of lean. Sally Toister, the former senior director of also for tourism itself, boosting competitiveness and
wastes while not compromising quality of services.
operational excellence for Marriot Hotel, said in an increasing resilience.” - UNWTO Secretary-General Beyond the economic and social disruption, the
The resort provides half the standard market price
interview with the CX Network podcast theatre that Zurab Pololikashvili pandemic crisis has disclosed existing structural
of lodging services with the same industry-standard
one of the ways they implemented lean strategies weaknesses in the tourism sector, along with breaches
quality and less staff. Dinner, for instance, is served
in their hotels was to refine food menus for guests While the world is seeking to adapt to the “new in governmental and industry preparedness or
in a buffet manner to cut staffing costs, while
who stayed five or more days. normal” set by an ongoing pandemic, the future response capabilities. Fragmented sectors and
receptionists work in areas that need assistance
in their free time. Moreover, all the lodging duties of the tourism industry remains highly uncertain. differences in the nature of tourism; seasonality;
Many guests staying at Marriot for longer periods According to the UNWTO World Tourism consumption of natural resources; impacts on
are divided among all the employees. Training on
usually dined outside, and since the hotel provided Barometer released in January 2022, global tourism climate change; and relative importance of tourism
Kaizen (continuous improvement) is conducted
only standardized similar meals, they realized they registered an increase of 4% in 2021, with 15 million in the economy are only some of the shortcomings,
weekly and monthly by the managers.
were losing out their sales to other restaurants. Sally more international tourist arrivals compared to as shown by the OECD Tourism Paper in 2021.
8 9
NEWS NEWS
Moreover, recent studies indicate that the demand integrated approach that relies on combining legal
for tourism is undergoing significant behavioral regulations, innovative technologies, strategies,
changes towards more sustainable travel patterns and clear initiatives to create sustainable and
that were amplified by the pandemic. For instance, environmentally friendly markets. As the pandemic
a 2021 Eurobarometer survey showed that 82% hastened the call for a green transformation in
of European citizens are inclined to include more tourism, worldwide organizations and policymakers
sustainable practices in their travel habits, such as are planning strategies, key actions, and targets
consuming locally sourced products, reducing waste to achieve long-term competitiveness and sector
and water consumption, traveling off-season or to recovery.
less-visited destinations, and choosing transport
alternatives based on their ecological impact. These There is a general consensus that the industry must
results are supported by another survey conducted continue to build digital skills, implement digital
by Booking.com across 30 countries worldwide that solutions, create sustainable infrastructure, and
gathered insights from 29,000 travelers. Seventy- address sustainable travel patterns. In early 2022,
three percent of the participants in the survey the European Commission’s Directorate-General
would be more likely to choose an accommodation for Internal Market, Industry, Entrepreneurship
if it has implemented sustainability practices. and SMEs released the Transition Pathway for
Tourism, a report that introduces a set of strategy
Such studies prove that there is an increasing recommendations for the tourism ecosystem, based
need for developing more sustainable and resilient on the objectives of the European Green Deal.
models of tourism, supported by policymakers Within this report, the European Commission refers
and service providers. In other words, a change to the “tourism ecosystem” as businesses that work in
of paradigm is needed, and green transformation sectors such as food and beverage services, on-line
policies and strategies seem to be the approach information and services providers (tourist offices,
that will bring resilience and balance between “the digital platforms, travel technology providers),
needs of people, planet, and prosperity” in the travel agents and tour operators, accommodation
tourism ecosystem. suppliers, destination management, attractions
and passenger transport (pg. 2).
Green transformation involves an
integrated approach that relies on Some of the key strategies and their related Priorities for Global Tourism
combining legal regulations, innovative targets are as follows: Recovery according to
technologies, strategies, and clear
initiatives to create sustainable and • Passenger transport companies (aviation, water, UNWTO
environmentally friendly markets. and land transport) should reduce Greenhouse
Gasses (GHG) to become climate neutral by
1. Provide liquidity and protect jobs
2050.
The Role of Green • European cities and regions should develop 2. Recover confidence through safety and
sustainable mobility for climate-neutral cities, security
Transformation in Sustainable by implementing mobility plans and by doubling 3. Public private collaboration for an
Industry Recovery the high-speed rail traffic by 2030.
efficient reopening
• Buildings have to become more energy and
Green transformation is not a new concept for resource-efficient, and energy support must 4.
Harmonize and coordinate protocols
the world economy, and it emerged as a trend in move towards sustainable renewables. and procedures
the tourism industry even before the pandemic. In • Hospitality and all tourism services should
a broad sense, the concept refers to “combining 5.
Added value jobs through new
implement circular models and diminish their
economic growth with caring about the environment technologies
environmental footprint. This includes reducing
to guarantee a high quality of life for present and by half the amount of non-recycled waste by 6. Innovation and Sustainability as the new
future generations, at the level which is attainable 2030 and lower food waste, single-use plastics, normal
due to civilizational development, as well as to an air pollutants, and water pollution while 7.
Financial Resources and investments
effective and rational use of the available resources” increasing water efficiency.
(Cheba et al., 2022, p.1). for building an inclusive and low carbon
• Each destination or tourism service provider
tourism sector
In particular, green transformation involves an should build their communication strategy
10 11
NEWS
on transparency towards sustainability and As stated in the Kyoto Tourism Promotion Plan
environmental footprint, thus guiding and 2025, five Goals for Urban Development and
empowering consumers’ choices. Tourism are to be achieved by 2030:
Furthermore, the World Tourism Organization 1. Harmony between the life of residents and
considers that “transforming tourism operations tourism, allowing the local populace to feel
for climate action continues to be of utmost enriched
importance for the sector to remain in line with the 2. All actors are involved in refining the "light of
international goals.” To support that, three main Kyoto" and improving tourism quality.
goals and actionable ways for their achievement 3. Tourism industry leaders become more active,
were introduced in the Recommendations for the and entrepreneurship of new businesses in the
transition to a green travel and tourism economy: fields of tourism and culture flourish, contributing
monitor and report CO2 emissions from tourism to improve the vitality of the city and cultural
operations; accelerate the decarbonization of inheritance
tourism operations; and engage the tourism sector 4. Ensuring flexible, strong, safe, secure and
in carbon removal. environmentally sustainable tourism that can
cope with various crises, such as infectious
diseases and disasters
5. Establishing the city’s credentials as an attractive
MICE city, welcoming people from all over the
world, recognizing diversity, and contributing to
world peace
Measuring the progress towards achieving their
vision is ensured by key performance indicators set
for each of the five goals, which are meant to be
evaluated on a regular basis. Several examples of
KPIs included in the strategy plan are as follows:
IN-DEPTH
Around the world, different practices of strategy One distinctive feature of the Kyoto strategy is
planning and ongoing actions stand as evidence the Code of Conduct for Sustainable Tourism
for the shift to a green travel and tourism economyin Kyoto (Kyoto Tourism Morals), which aims to
as a roadmap for sustainable and resilient growth. provide “guidelines for the tourism industry and its
workers, tourists, and residents to work together in
In the recovery from COVID-19, Kyoto (Japan), “a
united efforts to maintain harmony in Kyoto, and
city where history and culture give rise to hope,”
to preserve Kyoto for future generations.”
reconfigured its urban development and tourism
strategy in 2021. The recovery strategy aims to “Rebuilding tourism is also an opportunity for Performance Measurement - Strategy Planning -
develop the city as a higher-quality destination transformation with a focus on leveraging its impact Data Analytics - Performance Culture - Strategy Execution
for both residents and tourists while supporting on destinations visited and building more resilient
the Sustainable Development Goals (SDGs) communities and businesses through innovation,
recommended by the United Nations. digitalization, sustainability, and partnerships.” -
2020 Tourism Policy Brief, United Nations
12 13 13
IN-DEPTH IN-DEPTH
PERFORMANCE MEASUREMENT
Fuel & Environmental KPIs To track the impact on the # Fuel consumption,
environment. # CO2 consumption
Airlines are progressively pushing for enhanced is considered one of the most dynamic industries; To measure stability of the airline
Crew KPIs # Crew changes, # Crew readiness
operations.
operational effectiveness and performance. thus, an appropriate assessment and performance
In today's market, airlines must constantly measurement system should be in place.
change and strengthen their performance to General Performance KPIs To assess overall operational # Aircraft productivity,
performance. #Compensation costs
remain competitive and satisfy their passengers’ The decisions made by airlines regarding their fleet
expectations. Due to liberalization and growing of aircraft, the number of seats on each aircraft or
To evaluate the situations that # Restricted destinations,
global competition, meeting consumer demands the well-handled luggage, the routes they fly, the Crisis KPIs
generate a crisis. # Rebookings
is no longer enough to keep passengers loyal to customer segments they prioritize, and the interest
an airline. On-time performance (OTP) has been in protecting the environment have a significant Figure 1. Airline Operations KPIs | Data from Information Design
seen as an advantage, particularly among airlines impact on how well they perform. The quality of
targeting business travelers, according to the data airline services and passenger satisfaction boosts
Qatar Airways, owned by the Government of
and aviation analytics solutions provider Cirium. overall customer loyalty. Qatar
Airways’ Performance Qatar, became the first global airline to achieve
Optimizing operations is recognized as a profit driver All of these aspects may be evaluated using the prestigious 5-Star COVID-19 Airline Safety
Qatar Airways is categorized under the elite group
since it reduces costs and allows the introduction performance metrics, which provide airlines with Rating, which includes a thorough examination of
of airlines in the world with a five-star rating and
of service differentiators, which increase revenue. useful information for enhancing their operations. procedural efficiency checks and safety standards
a recipient of the “Best Airline Award” and “Best
Airlines concentrated on maximizing revenue in a Information Design, an aviation technology at all stages of the passenger journey.
Business Class” awards in July 2021, based on an
high-growth climate before the pandemic. They company, reveals in an article from 2020 the main annual airline customer satisfaction survey from
focus on operational efficiency to save money and operational aspects in aviation that are measured The Qatar Airways Annual Report 2021-2022
transport rating organization platform Skytrax.
navigate an unpredictable environment. Aviation with KPIs (see Figure 1). showed that the airline never stopped flying
14 15
IN-DEPTH IN-DEPTH
throughout the pandemic and is still making The most important achievements that QAS STRATEGY PLANNING
upgrades and expanding its services. As a result, the managed to accomplish in 2021 were serving more
What Is
share of Revenue Passenger Kilometers increased than 20 million passengers per year, handling
by 3.1% from 2019 to 2021, from 4.4% to 7.5%. approximately 179.000 flights in 2021, and
delivering an on-time performance rate of 99.51%.
For the best management of its
KPIs, Qatar Aviation Services (QAS)
In the same period, the organization handled more
than 17 million pieces of baggage, proving an Surrogation, and
How Can It Devour
developed its Integrated Operations extremely low mishandling rate of 0.08 per 1000
Center (IOC), which is responsible passengers. These indisputable results made the
difference, and QAS Group announced in a press
Strategy?
for preserving schedule integrity and
ensuring that all flights operate safely release that it recorded the highest profit in the
and securely. global airline industry for 2021-2022. Its passenger
revenue increased by 210% over the last year, and
The report indicates that the revenue and other the number of passengers carried grew by 218&,
income of the company almost doubled in 2021- maintaining its leading position in the industry. Fighting surrogation
2022 compared to 2020-2021, reaching a value of does not mean giving
52.305 QAR million. A lot of areas in the company To align with the United Nations’ Sustainable
improved, including the number of aircraft (from Development Goals (SGD), Qatar Aviation Services up on performance
250 to 257), the number of employees (from 36.707 (QAS) developed a corporate sustainability metrics.
to 41.026), and the number of available seats (from strategy monitored by environmental KPIs. It puts
93.385 to 159.947 million). Meanwhile, the number the best standards in environmental protection,
of passengers carried more than tripled (from 5.8 noise, and air quality into practice by declaring Aida Manea
million to 18.5 million). In addition, the number of its commitment to becoming the first net-zero
routes expanded, with six destinations in Australia, carbon emission airline by 2050. The company’s
Africa, and Asia reaching to transport 4.89% of website shows the interest of QAS in measuring The strategy process is always circular, with companies develop strategic performance
global international passenger traffic in April 2021. the performance of environmental sustainability, performance evaluation closing the cycle of measurement systems that translate strategy into
assessing it in fields such as climate and energy,
strategic planning. Measurement and evaluation key performance indicators. In other words, any
For the best management of its KPIs, Qatar waste and water, noise, air, and wildlife protection. give managers a clue whether the objectives are initiative conducted by an organization has a
Aviation Services (QAS) developed its Integrated being met and if the internal advantage creates performance measure associated with it in order to
Operations Center (IOC), which is responsible weight in the marketplace. evaluate the success of that activity.
for preserving schedule integrity and ensuring
that all flights operate safely and securely. Travel While some may think that it is only logical to
restrictions have changed continuously over the Whenever performance is compared to a standard, measure the success of the strategy through
past year as a result of governments adding and professionals decide if the output is acceptable or metrics, others may find themselves caught in
removing criteria in response to the pandemic. needs to be improved. If the reported performance the trap of losing sight of strategy while shifting
fails to reach objectives, the Strategy Office looks their focus on the metrics designed to track it. This
For IOC, managing these adjustments evolved over the strategic plan to see if adjustments are situation is called surrogation, and it happens when
into a standard procedure. Through investments in needed. Benchmarking is a form of evaluation managers focus on the metrics in the strategic
technology, the center will continue its mission of in which the performance standard is based on performance measurement system on which they
forecasting and managing disruption. In addition, The airline industry is a domain of continuous another company's performance. are compensated and lose focus on the strategic
the center will also upgrade its operations system innovation and improvement. The pandemic wasn’t
objectives.
and strengthen its flight planning software this the single challenge to overcome because airlines
In the hospitality industry, for example, Disney
year. The IOC has established additional Safety have to face everyday issues like the global economic
theme park operations are used as standards for Having your strategy hijacked by numbers is an
Management System-based procedures in the form environment, internal infrastructure, technological
other companies. Universal theme parks compare easy way to go down and lose your competitive
of internal Safety Risk Assessments in compliance advancements, passenger satisfaction, climate
their services to Disney's, the main competitor in advantage. Employees' behaviors are driven by
with industry standards and corporate safety change, and fuel efficiency. Measuring performance
the field, by measuring their customers' satisfaction, the metrics set. For example, suppose one of the
policies. Therefore, the IOC management team is can help airlines to reduce these negative impacts
as the score reflects whether or not the experience metrics that measure a hotel's objective to enhance
better able to quickly adapt to vulnerability factors by identifying their strengths and weaknesses and
offered rises to the level of expectations of customers. customer satisfaction is # Customer survey scores.
in the operational environment. opportunities for improvement.
To facilitate the process of decision-making, In that case, it can drive employees to think
16 17
IN-DEPTH IN-DEPTH
the strategy is to maximize those scores rather and without realizing it). 2. Customers - Making an impact on the guests' 3. Financial performance/ revenues - Managers
than deliver a high level of satisfaction with the Imagine you want to purchase a Ferrari California, experience is the main operational measure of need to stay focused on the revenue rather than
hospitality unit's facilities and services. although there are challenging details to consider success. Some factors that add a mark to it are on the costs as their array of services defines
like the emissions or how expensive the maintenance the employees' attitude, the internal information the customers' level of satisfaction.
is, you ignore the technicalities and take the decision system, and the guest relation that the staff is
to buy it anyway based on a much simpler aspect, trained to shape to find out about potential Finally, management creates value through
such as that the color is your favorite. problems during their stay. innovative performance measurement practices
applied in their performance management systems:
Another cause of surrogation occurs when
performance metrics are difficult to measure and
Traditional performance measurement systems Innovative performance measurement systems
when the objectives are difficult to achieve. In a
strategic performance measurement system, both
the financial and non-financial indicators, together
Based on cost/efficiency Value-based
with the strategy should be linked so that the
employees' actions are aligned with the corporate
Causes of Surrogation
strategic planning. Comparison with standard Improvement monitoring
The theory developed by Kahneman and Frederick Besides alignment, transparency of the performance
in 2002 regarding attribute substitution helps measurement system is vital. Professionals need Profit-oriented Customer-oriented
identify the main cause of surrogation: the pay- to see through the metrics. The key performance
for-performance compensation scheme. The theory indicators need to have an easy or straightforward Short-term orientation Long-term orientation
suggests that when an individual has a judgment way of being computed. In addition, the utilization
to make regarding a complex "target attribute," of a strategy performance measurement system is
they tend to make simple strategies that serve as difficult when the objectives set are impossible to Prevalence of team measures
Prevalence of individual measures
solutions for complex problems, thus relying on a reach.
"heuristic attribute".
Aim at evaluating Aim at evaluating and involving
If a portion of a manager's
In other words, the type of compensation scheme compensation is tied to a KPI, their
influences professionals' tendency to surrogate, behavior will trigger surrogation Figure 1. Traditional versus Innovative performance measurement systems | Source: International Journal
expressed through the focus of professionals over as a means of achieving a higher of Scientific & Technology
KPIs targets achievement rather than on the compensation.
strategy. If a portion of a manager's compensation
is tied to a KPI, their behavior will trigger completion rather than the strategy itself.
surrogation as a means of achieving a higher The hospitality industry is market-oriented.
Preventing Surrogation
3. Conduct training that helps employees
compensation. Employees that operate under a Its approach to performance measurement is According to Harvard Business Review, several
experience what a proper achievement of
pay-for-performance system surrogate more than triangular, meaning it covers three key areas: measures can be put into practice in order to
those operating under a fixed-pay structure. objectives feels like. One way to do this is to
1. Employees - Managers need to keep their mitigate surrogation.
engage them in real-job scenarios in order to
The attribute substitution theory needs three staff satisfaction level high so that they can 1. Involve the professionals responsible for strategy understand how the strategy might manifest
conditions in order to manifest itself: perform better to satisfy customers. The implementation in the process of formulation. in various scenarios. Organizations can make
attitude of employees represents a critical Once they are part of the strategic planning, use of analytics to predict which employees are
1. The target attribute must be relatively factor for achieving organizational objectives.
the metrics that are created and associated more likely to apply the strategy properly and
inaccessible (expressed through a complex One example of a performance indicator that
contributes to the clients' satisfaction is the % with achieving the strategic objectives will be which need more guidance.
issue).
2. The heuristic attribute must be highly accessible Guest-reported satisfaction with communication solid and make sense.
Fighting surrogation does not imply giving up on
(expressed through emotion, generalization, with the staff. Thus, managers are looking to
2. Loosen the bond between performance metrics performance metrics as the linkage measures the
stereotypes). improve their business performance through
and compensation. While the strategy can be strategy's effectiveness. However, managers must
3. The substitution of the target attribute with human resources by organizing training
programs and marketing practices in which made visible for professionals, the pay-for- be diligent in ensuring that the key performance
the heuristic attribute must not be consciously
rejected (takes place when people substitute employees learn about pricing, product, service, performance programs become more visible indicators do not alter the strategy itself as it can
a challenging issue for an easy one incorrectly and sales strategy. for them, thus making them go after the target lead to delusive business practices.
18 19
IN-DEPTH IN-DEPTH
The Magnifying Glass for Customer know what guests mention in their reviews – and
sentiment analysis – to know how they feel about it.
quantifiable structured data, which lies
at the heart of text analytics, can be
done in a manual-leaning method or a
Service in Hospitality Text analytics can be done in two ways: batch-
based and cloud-based. The batch-based method
completely automated one.
This method may need fewer investment costs to Meanwhile, the automated way takes place with
start but becomes less efficient and less insightful the aid of tools that are empowered by Natural
over time. Most importantly, it does not provide Language Processing (NLP), an AI technology
real-time insights as hours or weeks may go by that helps machines understand human’s complex
before obtaining results. languages.
Such tools accomplish the transformation through
The fully automated cloud-based method takes
seven basic steps, according to an article by data
place through the implementation of an artificial
analytics solution provider Lexalytics:
intelligence (AI), an empowered tool that
automatically extracts and processes recently
1. Language identification. The tool that
published reviews on various online platforms. With
identifies which human language it is dealing
this, the results turn into visualized insights on the
with. Is it English, Arabic, or French?
user’s end in shorter periods. This method may be
harder to establish, but it grants companies the 2. Tokenization. It starts to dismantle the text into
ability to know what people are saying in real- smaller pieces of words, hyperlinks, punctuations.
time and help organizations take quicker actions. 3. Sentence breaking. The tool builds on the
It is also capable of collecting and processing previous step to identify where each sentence
larger samples of reviews, meaning more statistical begins and where it ends.
significance or even whole definite populations. 4. Part of speech (PoS) tagging. Also building
on the tokenization step, each token (like word)
is tagged, whether it is a noun, a verb, an
adjective and so on.
5. Chunking. Similar tagging is done on the level
of sentences, whether it is a noun phrase or a
Customer reviews online can make or break a hotel. more resources. One way to efficiently process
verb phrase.
According to the study “The Significance of Online customer feedback online is text analytics.
6. Syntax parsing. The tool starts to identify what
Reviews for Hotel Entrepreneurial Success,” led by
sentence refers to in what sentiment; positive,
Zilmiyah Kamble in 2020, positive reviews help What Is Text Analytics? negative or neutral. This sentence-level step is
build a hotel's digital presence, enhance reputation,
essential to reach sentiment analysis and many
and influence customer booking decisions. Negative Text analytics refers to analyzing text to uncover
patterns and trends to drive insights. Since text is
How Text Becomes other text analytics features afterwards.
reviews, on the other hand, influence customers'
decision to book because they rely on the feedback the clearest example of unstructured data, which is Quantifiable 7. Sentence chaining. In this final step, the tool
impenetrable to automated processing, the main identifies relations between sentences and links
they read online.
goal of this type of analysis is to transform text into The process of transforming text into quantifiable between them to enhance the determination
However, if a hotel receives a lot of reviews, it is structured data with quantifiable variables. structured data, which lies at the heart of text of the overall topic and sentiment. This is also
a challenge to analyze all of them. Hiring more analytics, can be done in a manual-leaning method crucial fo for all analytics features that can be
people to read and analyze reviews will still require Once the transformation is done, multiple analysis or a completely automated one. driven afterwards.
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DATA ANALYTICS
22 23
IN-DEPTH IN-DEPTH
Tactics employed by fraudsters to gain this flights in the face of impending lockdowns. In a person who uses the address or phone number,
information from their victims include card cloning, report, CNN describes how scalpers seized an from which we can evaluate their intentions – or
RFID skimming, phishing, spyware, data breaches opportunity to sell air tickets on the black market to even automatically ban or approve them.
and BIN attacks, for instance. In the case of RFID Chinese students looking to travel from the US to
skimming, for example, the public has been so China to join their families. With rumors of airlinesFor instance, when a customer provides a phone
concerned about this in recent years that companies slashing seats and inbound flights, agents turned number as part of their check-out process, you can
like Duo have had to create guides explaining into scalpers by putting up a premium on these use the resulting data points to find out if this phone
RFID blockers and similar devices to inform their now highly desirable tickets. number is a disposable or VoIP number, as well as
customers. Fraudsters using a cloned card or stolen any associated names and addresses. As SEON’s
card information can then create an account on a The CNN reporter found a $300-450 booking guide to phone lookup explains, using reverse
website and attempt to buy tickets using it. was hiked up to the equivalent of $1,650 by agents phone lookup, you can find out whether the phone
acting as scalpers. According to the report, the number is valid, the country the carrier is based
But why does this matter to companies selling travel Civil Aviation Administration of China claims that in (which you can combine with IP analysis), and
and other types of tickets online? One concern is it has lost $70,000 to ticket scalpers and has since any connected social media or instant messenger
chargebacks. When the legitimate cardholder rolled out price control and outright bans on some accounts, among other information.
realizes a criminal has used their funds, they will ticket exchanges and proxies.
ask the card-issuing bank for their money back. In is so that their account can still be credited with Real people, even those who aren’t techies, almost
these cases, the merchant ends up losing both the any adjacent bonuses and miles, even if they have How Digital Footprinting Can always have some sort of online presence. But if
money and the ticket issued, as well as incurring canceled the flight, which they will use for other a new user’s phone or email address is not linked
certain admin fees to the bank. fraud moving forward. Although not as common as Address Fraud up to any social media or online platforms – for
they once were, bonus miles and other extras are instance, accounts on Airbnb, Skype or Facebook
Sometimes, fraudsters use ticketing websites to advertised by airlines and other companies, such as With the right fraud prevention and detection – you have good reason to be suspicious and
do testing – to test if the cards they’ve acquired United, as an incentive for travelers to choose them software in place, organizations can spot and thus request additional verification and proof of
illegally are still “live,” meaning that they haven’t over competitors. prevent fraudulent accounts before they have a their identity. Furthermore, each country has its
already been frozen or canceled. This entails chance to target your transaction process. own mix of popular digital services, so a customer
attempting a payment with each card number, Ticket scalping is another pain point for travel as that deviates from the norm could also signal an
Digital footprinting can be part of that process,
usually small in value, before marking the live ones well as other types of ticketing websites. This occurs anomaly that warrants closer inspection.
helping assess the true intentions of any customer
still in use and moving on to larger, more ambitious when fraudsters use bots to bulk buy tickets from
looking to transact. Imagine a fraudster who has
schemes with them. ticketing or travel companies online, causing the acquired card details stolen during a data breach
flight or event to sell out. and is looking to register an account to buy tickets
Even when the money the ticketing service
fraudulently and then resell them for a profit.
loses is small, this can have a knock-on effect First, they might use an auto refresher to spot when
because card-issuers keep track of what’s called tickets have gone on sale. Then, they’ll employ
a chargeback ratio, or how often a merchant scripts to automatically fill out forms and details
incurs chargebacks. If it’s too often, they increase during the transaction process. Fraudsters might Reverse lookup tools, as a form of data
the standard processing fees the merchant pays also use pre-bots to create multiple fake accounts enrichment, tell you a lot about a user.
for each payment -- legitimate or not – and, in across many different websites. If a site requires
some cases, even ban merchants from using their customer identification, then fraudsters might
networks outright. This means you can no longer attempt to provide this in the form of stolen or
serve customers paying with specific types of cards, synthetic IDs. It’s at this sign-up touchpoint that digital footprinting
such as Mastercard or Visa. techniques, such as reverse email and phone lookup,
Ticket scalping is a form of arbitrage, as they then can help. The digital footprint module will check It’s incredibly difficult and complex for fraudsters
Criminals can also try to make a profit by reselling resell tickets to customers for a marked-up price, this new user’s email address or phone number to to fake a legitimate digital footprint. The email
certain types of tickets (usually last-minute flight generating a profit. This is also known as ticket see if they have social media or other web histories. address they create to defraud you will not have
offers) on dark web marketplaces or via encrypted touting or ticket reselling and doesn’t just affect a digital presence, instead having been created
social media, such as Telegram, as explained in an travel companies but also music, entertainment, Why does this matter? Because reverse lookup recently just for this purpose. Scalpers use bots to
article on the dark web on Peraton. and sporting events. tools, as a form of data enrichment, tell you a lot bulk buy tickets, and these are typically in control
about a user. Starting with information the customer of multiple accounts at a time (multi-accounting).
Other tactics that cybercriminals use on airline One prominent case of ticket scalping in the travel submits, such as an email or phone number, digital All these accounts, of course, will have registered
sites include booking a flight using card details industry was during the height of the COVID-19 footprint analysis sources hundreds of data points using new, not-before-seen-online email addresses.
that they’ve stolen and then cancelling them. This pandemic, at the start of which airports canceled to create an accurate, real-time profile of the This is a huge red flag.
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IN-DEPTH IN-DEPTH
Digital footprinting can be a good low-friction flagged by the velocity checking process. While
fraud prevention and detection option, as it can Additional Considerations some customers may do this for legitimate, non-
help keep the transaction experience for your fraudulent reasons, it can also be a sign of fraud.
genuine customers efficient and enjoyable. With Although digital footprinting is an excellent, Other kinds of behavioral analytics include looking
risk ratings, each individual looked at can be cutting-edge tool for spotting fraudsters, it at abnormal interactions and a user’s typing
assigned a risk score on the basis of their profile, works most effectively when combined with other cadence.
and a customer with no digital footprint will have fraud prevention and detection tools. Device
a much higher risk score than a user with one. Such fingerprinting involves collecting information about
a user’s device, while IP analysis looks at where in By combining data points from digital footprinting,
risk scoring can help introduce friction only where device fingerprinting, velocity checks and more,
it is needed, in what’s called dynamic friction that the world they connect from and how. These help
in multitude ways. For example, it is suspicious if through sophisticated fraud prevention software,
changes based on the customer’s score. travel companies can be better protected.
several different users use the exact same device
and IP, so an extra check can be introduced.
Some vendors allow the merchant to fully customize
By combining data points from digital each of these elements to match their risk appetite
footprinting, device fingerprinting, Another consideration of fraud prevention is
velocity checks and more, through velocity checks, which examine customer actions and past fraud events, while others promote a set-
sophisticated fraud prevention through the lens of time. For example, if a customer and-forget approach, often making use of blackbox
software, travel companies can be has attempted to purchase multiple tickets from (non-transparent) machine learning.
better protected. your website for events at various locations over
the course of just a few hours, then this will be Digital footprinting is a great tool to stop
fraudsters from hijacking your ticketing and other
transaction systems. Thanks to data enrichment, it
crucially involves scaling, which means that you can
introduce as many or as few checks as you need,
from 100 checks an hour to one check an hour.
26 27
IN-DEPTH
PERFORMANCE CULTURE
21,264 KPIs
to date
Covering 16 functional areas
and 25 industries
Supported by a community of
more than 75,000 members
The restaurant industry was hit hard by the and launched programs that are focused on
Choose your plan today pandemic. It has to manage many changes, and the meeting employee expectations and boosting
most challenging one is retaining talent. According employee experience.
to the National Restaurant Association's State of
the Restaurant Industry (2022) report, more than Retention Strategies
PREVIEW STARTER STANDARD PREMIUM one million jobs in the hospitality and restaurant
industries remain unfilled, and 78 percent of Chipotle's benefits program, Cultivate Me, provides
100 KPI names displayed/year 10 documented KPIs viewed 300 KPI names + definitions viewed 500 documented KPIs viewed its employees with a best-in-class benefits and
restaurant operators lack the staff to meet customer
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demand. Data also shows that three out of every perks package. It includes bonuses (annual and
FREE $19 / 6 months $99 / year $249 / year four employees intend to quit their jobs within thequarterly), education assistance and debt-free
next year. degrees, free meals (one free meal per day),
Sign Up Get Starter Get Standard Go Premium paid time off, assistance program (free access to
In order to mitigate talent management concerns, counseling), 401(k) retirement savings, healthcare
Chipotle, an American fast-casual restaurant chain services and advocacy, and benefits in Chipotle
with a presence in the United Kingdom, Canada, partners (discounts in big brands and gyms).
[email protected] smartkpis.com T: +61 3 9028 2223 M: +61 4 2456 8088 Germany, and France, developed new strategies
28 29
IN-DEPTH IN-DEPTH
Observing that the turnover rate raised continually attract and maintain interest in school for those
in the industry, Chipotle launched learning and employees that can either balance work and online
upskilling programs. Employees are given multiple schooling or decide to follow a path of on-campus
options, ranging from high school diploma education. Leveraging its educational benefits in
programs and college classes to courses teaching the national campaign, Chipotle’s recruiting team
high-end computer networking skills. The company has received 7,500 total applications.
also introduced a mentoring program for future
executives.
30 31
IN-DEPTH IN-DEPTH
STRATEGY EXECUTION • Sri Lanka’s Roots Philosophy governs policy, investment and domestic investment
planning, and development to build economic, 3. Greater inclusivity and sustainability
A Strategy to Transform
social, environmental, and local capital.
• Visitors, both domestic and international, are Key Transformational Themes
guests in the country.
Sri Lanka
as a strategy execution tool that
resource failures, market failures, institutional failures)
recommends explicit actions and were identified to impede sustainable tourism, a
implementation mechanisms with a change in the tourism strategy execution process
long-term view toward the Tourism to tangible measurable actions was required. The
Vision 2025. latter is linked to six key transformational themes as
The strategic policy for tourism in Sri Lanka is follows:
to strengthen the roots of people, places, and Vision Based on Marco Polo’s 1. Improving governance and regulation:
tourism institutions, regulations, and processes
natural heritage as well as to add economic Description of the Island conducive to streamlined investment and
value to such assets throughout the island. “To be recognized as the world’s finest island for business operations
memorable, authentic, and diverse experiences.” 2. Understanding visitors: Visitor segmentation
The Vision for Sri Lanka’s tourism industry defines research program and model to profile source
a desired future reputation. It draws from the 13th- and niche markets
century explorer Marco Polo’s description of the 3. Marketing and communicating effectively:
Marcela Presecan
island as “the finest island of its size in all the world.” Use of the most effective media, available
digital data, platforms, and applications to
Mission That Sets the Agenda attract more visitors and the right kind of
visitors
Sri Lanka is an island country situated southeast themes derived from a range of systemic failures for Transformation 4. Developing sustainable destinations: The
of India in the Indian Ocean. Sri Lanka has had identified. The themes overflow into the core development of new products to encourage
“To be a high-value destination offering longer stays, facilitate visitor movement and
a continuous record of human settlement for more strategies of the tourism industry that are based on extraordinary experiences that reflect Sri Lanka’s
than two millennia, and its civilization has been Sri Lanka’s strategic direction, vision, and mission. spending, and encourage future returns
natural and cultural heritage, are socially inclusive 5. Lifting industry standards: Achieving the
shaped largely by that of the Indian subcontinent. and environmentally responsible, and provide
Despite its obvious affinities with India, Sri Lanka Strategic Direction Based on economic benefits to communities and the country.”
reputation of being the best in class of
nevertheless developed a unique identity over the tourism products by creating mechanisms to
ages that ultimately set it apart from its neighbor. Roots Philosophy The mission sets the agenda for the transformation
support best practices in tourism-related areas
(water, energy, waste, preservation of wildlife,
The strategic policy for tourism in Sri Lanka is to of the tourism sector through improved quality environmental, cultural, historical values, etc.)
Although the third largest export earner in the strengthen the roots of people, places, and natural of services as well as service delivery that leads
economy, tourism in Sri Lanka is believed to 6. Engaging the workforce and communities:
heritage as well as to add economic value to such to greater creation and retention of revenue, Developing the overall capacity of the tourism
remain a story of untapped potential, mainly assets throughout the island. The strategic direction investment in human resources and skills, and
due to a predominantly organic growth in visitor sector workforce in both public and private
adopted for tourism in Sri Lanka fundamentally improved coordination and collaboration between sectors
numbers without coordinated planning, visionary or encompasses Sri Lanka’s Roots Philosophy: local government, the private sector, and local
strategic guidance. With a long-term view Tourism
• Celebrate Sri Lanka.
communities. Core Objectives and Success
Vision 2025, the latest Tourism Strategic Plan of
Sri Lanka defines a framework and transformation • Tourism is rooted in the people, places,
heritage and values of the country.
High-level Objectives Aligned Indicators
agenda intended to expand Sri Lanka’s tourism
value proposition while building on the commitment • Tourism can promote a sense of place and With National Strategies: Based on the main transformation themes stated,
a framework for developing a set of indicators
of both government and the private sector. belonging and a voice for every community.
• Tourism should be used as an income generator High-level objectives aligned with national strategies
against which to measure the results during
to protect, conserve, and enhance Sri Lanka’s were defined. the implementation of the Strategic Plan was
The four-year Tourism Strategic Plan indicates the
steps and actions necessary to move toward Sri natural environment as well as the tangible 1. Higher skill and more jobs, as well as more developed. This includes a set of core strategies
and intangible cultural and historical assets. female employment or core objectives and Key Performance Indicators
Lanka’s Vision 2025. It is built on six transformative
2. More opportunities for foreign direct to measure the success of strategy implementation.
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IN-DEPTH IN-DEPTH
Improving Governance •
communication & coordination
Reform core legislation seven •
spending
% Collaborative memoranda of
Tourism leaders can use the AMC checklist for auditing how
& Regulation
•
regulation
Enable business and investment
understanding signed by SLTDA
well their organization is implementing marketing agility and
creating an action plan to reach a higher level of maturity.
• Improve data collection and
• # Niche segment arrival
analysis
• % Regular reporting (reports Human Hardy
• Monitor success of marketing
generated on time)
Understanding visitors efforts
• Demonstrate economic value of
tourism industry
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This article will discuss agility and marketing Based on “International marketing agility:
capabilities by providing the recently conceptualized conceptualization and research agenda” led by Dimensions Definitions Descriptions
Agile Marketing Capability (AMC) framework. Emanuel Gomes in 2019, marketing agility is the
The discussion describes how firms may differ firm’s ability to reconfigure its marketing efforts at Customer-oriented responsiveness Constantly sense and respond to Abilities to provide dynamic
in the development and management of AMC short notice, adapt to changing market conditions changes related to customer needs and timely sensing and respond
quickly, and fulfill market needs more effectively. and requests to customer-related changes to
through the identification of different maturity
fulfill customer requirements and
levels where maturity refers to the state of being expectations successfully
ready. It explains how tourism marketing managers Despite the growing importance of agility in the
and practitioners could become more agile in their marketing field, the mainstream strategy could Follow an adaptive and flexible Ability to adapt and flexibly
High flexibility
marketing capabilities, providing a useful tool to not address agility properly in the context of approach in dealing with changes adjust tactics, operations and
assess a firm’s current state of each capability corporate marketing capabilities. Early studies planning to deal with changes
maturity and to quickly grasp potential initiatives analyzed marketing capabilities from the resource- and satisfy customer needs and
based view (RBV) perspective, assuming a static requests by using extant sources
for improvement and enabling adaptation to a with more effectiveness
dynamic fast-changing environment especially and internally driven approach. Over time, the
in the context of MICE (meetings, incentives, 2011research “Closing the Marketing Capabilities
Gap” conducted by George Day began to be Human collaboration Create close work relationships Close alignment, collaboration
conferences, and exhibitions) tourism, which among people and a collaborative and interaction among people
comprises a large network of hospitality-related questioned because of its inability to adapt to a working environment and departments to create close
services such as accommodations, catering services, fast-changing business context. and trust-based relationships
and transportation. and a collaborative working
Therefore, a new approach has emerged to aid environment to be better able
MICE represents a highly dynamic sector involved in in the development of new marketing capabilities to develop successful, customer-
a continuous exchange and allocation of resources oriented marketing programs
to be able to grasp the firm’s capacity to sense
and relationships for planning events to address the market and to look for different ways to
and satisfy a variety of requests and needs where reconfigure available resources accordingly. This Quick and continuous Continuously and quickly adjust and Ability to addressing changes to
marketing efforts should be designed according to deliver new marketing plans continuously make improvements
led to the conceptualization of a different set of improvement
in the execution of marketing
the variety of attendees so that their objectives and marketing capabilities oriented to more open and tactics, operations, and planning,
requirements are properly met. adaptive paths to fast-changing contexts. AMC and manage changes (e.g., new
Framework contributes by embedding agility that customer requirements, technical
issues) more efficiently and
The AMC framework offers practical is better suited to align with the urgent need for
effectively in a quick and timely
guidance on what strategic actions the tourism industry to transform its business in a manner
are needed for the implementation, time of environmental turbulence.
development, and enhancement of Table 1. AMC Framework Components
agile marketing capabilities. Applying the AMC
Framework Level Description
The Emergence of AMC
Framework Held in 2019, the research study led by Emanuel 1 – Initial agility No proper strategic planning. Positive outcomes are attributable to the
Gomes alongside Carlos M.P. Sousa and Ferran initiatives of single or specific individuals within the organization
According to the study “Investigating firm's customer Vendrell-Herrero defined AMC as the firm’s
agility and firm performance: The importance of marketing capability to (1) constantly sense and Encoded marketing planning and management of activities in the tourism
aligning sense and response capabilities” conducted respond to changes related to customer needs 2 – Managed agility context, that is, regular, repeated and standard actions, processes, and
in 2012, Nicholas Roberts and Varun Grover defined procedures
and requests; (2) follow an adaptive and flexible
agility in the marketing field as the extent to which approach in dealing with changes; (3) create
the company can predict and rapidly adapt to close work relationships among people and a 3 – Defined agility
Adequate synergies and coordination of marketing processes and
customer-based opportunities for innovation and practices that adapt to changing conditions in the tourism context
collaborative working environment; and (4)
improvement action. Therefore, marketing agility continuously and quickly adjust and deliver new
refers to being responsive to constantly changing marketing plans (see Table 1). Those capabilities Systematic learning commitment and proactive actions or interventions to
4 – Proactive agility
customers’ expectations and needs and becoming can be assessed through four maturity levels (see improve marketing performance in the tourism context
flexible in designing objectives and allocating Table 2).
resources accordingly. Table 2. Maturity Level
36 37
IN-DEPTH IN-DEPTH
38 39
IN-DEPTH
COVER
eLearning
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and best practices closer to you through online, self-paced courses with 24/7 access.
40 41
COVER STORY COVER STORY
COVER STORY
Economic Development, Environmental Protection, money, or resources in any of the areas. This means
Palm Beach County, known for its stunning the bread and butter of Palm Beach County.”
coastlines, natural landscapes, charming towns,
Intentional, in the county’s case, reflects what Dr.
and vibrant cities, is back to welcoming travelers Clinkscale considers as the three ingredients of
from around the world. Florida has become the success in the industry: leadership, collaboration,
buzzword for those seeking relief, relaxation, and and technological innovation. This is exhibited by ENVIRONMENTAL SUBSTANCE USE &
recovery from the COVID-19 effects, according to how he empowered people and developed tools to PROTECTION BEHAVIOR DISORDERS
Dr. Keith Clinkscale, Strategic Planning and improve their performance management system.
Promote programs and activities that To address the substance misuse crisis and
Performance Management Director in Palm
Beach County, Florida, USA. The travel surge, Rethinking Silos protect, preserve and enhance natural behavior disorders by providing evidence-
resources while providing sustainable based prevention, medication-assisted
he said, is evident at the Palm Beach International In his first year in office, Dr. Clinkscale visited the living and developing a climate of treatment, and recovery support services.
(PBI) airport and increases in the numbers of hotel 35 departments in the county and conducted a resilience.
bookings and visitors to parks and beaches. SWOT (Strengths, Weaknesses, Opportunities,
and Threats) analysis, which showed that their
How did Palm Beach County get to where they are major weakness was working in silos. He observed Figure 1. Six Strategic Priorities | Source: Palm Beach County Strategic Planning and Performance
today? that each department excelled in its own field, but Management Guide - Fiscal Year 2022/2023
they hardly communicated or worked together. “It
“Our motto is to provide ‘The Best of Everything,’” was almost like a silent competition,” he added. For Dr. Clinkscale, the legacy management their surroundings.
Dr. Clinkscale said. “The county’s priority is practices that have lost their relevance were those
economic development. We are being intentional To eliminate silos, Dr. Clinkscale set up departments about “staying in your lane.” He pointed out that “The trend is to move forward, collaborate, team up
about measuring the post-pandemic recovery as it in accordance with the county's new Six Strategic organizations develop vertical expertise without across disciplines, and generate more creative solutions
relates to travel, hospitality, and tourism, which is Priorities: Housing and Homelessness, Infrastructure, considering or understanding what is going on in through diverse and different perspectives,” he said.
42 43
COVER STORY COVER STORY
Figure 3. Categories of Performance Measures | Source: Palm Beach County Strategic Planning and
Performance Management Guide - Fiscal Year 2022/2023
“For example, if an objective has been reached tourism industries: faster and easier tracking of
every month throughout the year, except for trends.
one, a comment explaining what happened in
that particular ‘negative’ month is warranted. A “We need to see how people respond to travel,
possible reason that performance measure was not hotel stays, and vacation activities. It is essential
achieved could be due to a shortage in staffing, or for us to understand what people value. And we
termination of funds for a particular program, for need this information quick, easy to decipher, and
Figure 2. Performance Measurement Data Sheet on the eKPI platform | Source: Palm Beach County example,” the guide states. frequent as things change every day,” he said.
Enterprise Key Performance Indicators (eKPI) Manual
Strategy and performance The other tools that Palm Beach County uses
management tools must be easy are strategy maps, scorecards, dashboards, and
The platform features a data entry screen for performance check-ins. Dr. Clinkscale developed a
to use to “decentralize data input,
the manual registration of information and a set Strategy Map that provides an overview of how
administration, and reporting.
of standard and customizable KPI Reports to the department’s Strategic Plan will roll out from
streamline performance reporting. Users can also October to September.
gain a clear understanding of their department's Decentralization of Tools
performance through simplified visualizations, such He launched “Performance October” for each
as graphs and dashboards. The development of Palm Beach County’s eKPI
department to review its metrics and performance
demonstrates Dr. Clinkscale’s belief that strategy
with the administration and develop and update its
On the platform, departments can provide their and performance management tools must be easy
KPI dashboards. In November, an annual Strategic
comments and narratives regarding performance to use to “decentralize data input, administration,
Planning and Priorities Workshop is held for Cross
measures, which refer to specific quantitative and and reporting.”
Department Teams to present their collaborative
qualitative measures of the work that has been metrics and update their priorities. Moreover,
performed (see Figure 3). According to the county’s He stressed that every department is trained to use
eKPI and that each entity must have knowledge data is inputted into and monitored through eKPI
Strategy Planning and Performance Management System throughout the year while scorecards are
Guide Fiscal Year 2022-2023, comments shed light and control of its data. This also supports his
prediction for the future of corporate performance shared at the annual May budget meeting and
on any irregularities in performance measures used to support departmental requests.
regardless if the outcome is positive or negative. management systems in the hospitality, travel, and
44 45
COVER STORY
INTERVIEWS
strategies, and actions. He is recognized
for developing world-class strategic
performance management initiatives,
such as Lean Six Sigma Black Belt and
Operational Excellence Executive, and
the Palm Beach County's award-winning
Strategic Cross Department Teams.
46 47
INTERVIEWS INTERVIEWS
Ready, Get Set, Go: Adapting to Everything now is cloud-based and accessible from Artificial intelligence (AI) and systems capturing
anywhere at any time. real-time information are the new norms. “Garbage
in, garbage out” is still valid. It means that if the
Changes Makes You Stay in the Game What does the corporate performance information inputs into a system are not valid or
management system of the future look like in not easily readable, the result will be poor quality.
due to the “staycation” trend and additional demand. With that in mind, systems must be able to
flexibility on modifications and cancellations cope, be real-time, and be flexible enough to adapt Be crystal clear about what drives
of reservations; performance in your organization to
to changes. Automation, a layer of more “science-
2. Shifting to online and more direct bookings quickly re-organize and focus on what
based” tools brought by machine learning, in matters the most when a crisis hits.
to hotels versus going through intermediaries, addition to a greater extent of artificial intelligence
and; will become the norm that will set companies apart
3. Personalization, a trend that can differentiate from their competitors. We already see that with How is sustainability impacting the way you
your business from the competition. Amazon, Netflix, or social media i.e. personalized plan for the future and conduct your business?
recommendations based on near real-time Any specific sustainability aspects would you
How have the trends impacted the way you purchasing and viewing history. Of course, this like to mention?
manage performance in your organization? involves having a strong foundation upon which we
build a valid and insightful customer relationship There is a growing trend for “green” products
They have highly impacted the tracking of contract management (CRM) system, detailed trading (hotels or in-destination services), and more people
conditions. From a bed bank company perspective, reports, and key performance indicators (KPIs) for acknowledge that there are policies to generate
ensuring those, which include flexibility to modify the main functions driving value to the business. energy through solar systems or water management
and cancel bookings, has become a must as this is systems. The circular economy business model is
Benjamin Liagre
now highly demanded and has become a standard also gaining importance. This business model uses
in the industry. The last-minute booking trend has resources in closed-loop systems, preventing resource
Former Head of Strategy, also implied that systems can cope with near real- leakage or lowering pollution while maintaining
Revenue Management & Operations time performance reports. economic growth (Barros et. al, 2020). Some hotel
Hotelbeds - Palma, Spain
chains have recently created specific jobs to cover
Bed banks are intermediary companies sitting those functions, such as Head of Sustainability and
In the field of Hotel industry, change is constant, between the hotel and the distribution network, Director of Circular Economy, aiming at reducing
according to Benjamin Liagre, former Business such as travel agencies, online travel agencies, contamination or making better use of resources.
Optimization Director at Hotelbeds, the leading and tour operators. Bed banks mostly purchase on For example, using rainwater to water the gardens
bedbank company in the world: revolutionizing a wholesale basis and sell hotel room nights, but of a hotel, using solar energy to power a hotel
lodging, transfers, activities, and vehicle rental also provide ancillary services like transfers from building, and practicing better waste management.
offerings through a global network of travel agents and to the airport, to and from the hotel, activities
and tour operators. In this interview, Benjamin shares (excursions, tours, and theme parks), and rent-a- What are your major challenges in managing
the importance of flexibility of one’s organization car. performance? Practice
whether it is to hop on trends to connect to more
stakeholders, protect the environment by adapting Contract conditions refer to the purchasing The pandemic has brought a complete change in What performance management tools are used
sustainable practices, or optimize the use of conditions agreed between providers, such as hotel booking behaviors. Historical data used to optimize in your organization? (strategy map, scorecard,
technology in advancing the market. or ancillary services, when it comes to purchasing revenues is no longer useful. Systems, therefore, dashboards, performance check-ins etc.)
rate and cancellation policies, among other things. need to be adapted to capture real-time demand,
I would mention three: trading reports, project
Trends Can you share any “legacy” management
availability, and competitive information to set the
right price and be able to put in place the correct dashboards, and performance KPIs, including the
practices that have lost their relevance in performance indicators. cost element per area or function.
What are the recent trends shaping the recent years?
hospitality industry?
How is technology impacting the way you What should be improved in the use of strategy
There are three recent trends shaping the
One of the legacy management practices that have measure, report and improve performance and performance management tools to make an
hospitality industry:
lost their relevance in recent years, at least in the results? Any specific technology tools you organization even more resilient to future crises?
hospitality industry, is the physical on-site servers. would like to mention?
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INTERVIEWS INTERVIEWS
Wael Nawara
needing to answer in seconds, or you will lose centralized dashboards versus a siloed approach customer service. New KPIs must mine big data to
potential clients. For example, when potential per area or department. measure the company’s performance in these areas,
clients search for a hotel in an online travel agency Professor dig out bench-marking indicators and observe the
(OTA), they get results within seconds, or they “Connecting the dots” is very crucial to highlight the School of Business and most effective changes that need to take place in
will hop into other choices available. Online travel role performed by each function in an organization, Information Technology improving overall performance.
agency looks into its inventory but also requests and look at the “causes and effects.” For example, if Fleming College, Canada
availability and rates directly to hotels with existing the content is not described or translated correctly, There are also shifts in management focus. For
agreements or to bed banks. If customers get their this will result in a lower sales volume. If customer example, from product or service to user experience,
search results in one second, it means that, as a complaints are mishandled, this will impact your Wael Nawara, Professor at School of Business from mere selling to relationship building, and
bed bank, I need to reply in half a second. Hence, business reputation and the sales volume. and Information Technology - Fleming College in from strategy and planning to implementation
technology is the key! Canada, believes that an organization that employs and logistics. Supply chain disruptions have caused
an agile approach, which promotes versatility major shifts. Instead of just finding the cheapest
Change is constant in the hotel industry (as
in many industries), and one needs to adapt
BACKGROUND and responsiveness to unforeseen occurrences,
has a better chance of surviving a crisis. In this
source globally, many businesses and consumers
now consider growing, making, and buying products
constantly. For example, customers now demand interview with Performance Magazine, he delves locally. COVID-19 has sent stronger winds behind
Benjamin has over 20 years of experience
flexible cancellation policies since the pandemic, into new approaches in planning, goal setting, and the sails driving some of these shifts.
working in revenue management and business
or new technologies are now being used, such strategy-formulation amid uncertainties and rising
optimization with online technology-based
as applications to book restaurants. You need to technological innovation. Most importantly, we can notice shifts in individual
companies in the travel industry. He has worked
adapt to the change, otherwise you will be out of with the vast majority of travel-related service and social expectations and awareness of climate
the game! providers, including airlines, hotels, and ancillary Trends change and the environmental impact of human
activity, particularly the negative impact brought
providers. He has also played a significant role in
Which organizations in your industry would business integrations (post merger), the design by businesses changing the terms of the “social
What were the key trends in organizational
you recommend as role models? Why? of B2B revenue management systems, and the business license.”
performance management based on your
optimization of pricing and revenue management point of view?
I see the “role models” per function. For example, strategies. These shifts will change the way performance is
while some of the players in the industry are leading measured and how KPIs are constructed, viewed,
We are experiencing fundamental shifts that are
the sustainability arena, others are inspiring for Benjamin's most recent role is Business and used and will even redraw the paradigms
changing businesses, the economy, and our societies
their entrepreneurship or ability to quickly adapt Optimization Director for Hotelbeds. As a where KPIs live. For instance, the traditional view
at large. For instance, we can observe a shift in the
to changes. member of the senior leadership team of the is that businesses must prioritize growth and
workplace with the rise of virtual work, WFH (work
ancillary services division, Benjamin led a global from home), the gig economy, temporary modes of maximize profit and investor returns above all
What are the key competencies of a successful team of 120+ FTEs across revenue management, else. It simply cannot remain viable in the long
employment, and shifts in generational and ethnic
business leader (C-level executive)? operations and strategic initiatives. term as goals (and KPIs) related to sustainability
leadership.
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INTERVIEWS INTERVIEWS
and social impact are becoming more important. How is sustainability impacting the way An organization that adopts an agile strategic related to the organization’s core competencies
Another example that is driven by technology is organizations conduct strategic planning approach that allows flexibility and quick and competitive edge, we can know where we
the rise of visual dashboards (such as Power PI, and manage performance? Would you like to adaptation to sudden changes will have a better stand in relation to the competition. Also, we
Tableau, ZOHO, etc.) that enable customization mention any specific sustainability aspects? chance of surviving an unanticipated crisis. Crisis will be able to respond early to problems and
and visualization of innovative KPIs on demand. planning and building alternative responses to crisis capitalize on opportunities for improvement. But
Visual dashboards allow a great deal of flexibility Traditionally, corporations have prioritized the scenarios will help organizations better respond sometimes, too much focus on the competition can
and agility in planning, operations, management, interests of three (3) groups of stakeholders: to future crises. Even if a crisis is different from be counterproductive. Innovation, focusing on the
measurement, and realignment. shareholders, customers, and management. Other the imagined scenarios, the skills and the tactics needs of emerging customer segments that are not
stakeholders have neglected that, and the cost developed will undoubtedly enable the organization fulfilled by the competition, and even focusing on
of the damage done to them has been usually and its members to deliver a better response. Such non-customers and converting them into customers
“externalized.” In my view, organizations in the future approaches take time, require management focus, (Blue Ocean Strategy, Mauborgne & Kim, 2004),
will have a balanced approach between different and demand resources, but we can think of this as can also produce viable strategies.
stakeholders, including employees, communities insurance. You can always cancel your insurance
where the products and raw materials are sourced and save some money. But then, where will you be
and consumed, and even earth systems and future if the unthinkable happens? Research
generations affected.Terms of the “new social
contract” allowing a social license for the business While navigating through these challenging Which organizations would you recommend to
to operate will fundamentally change and this will times, what would you consider a best practice be observed due to their approach to managing
also change KPIs in radical ways. There are so many in performance management? performance and its subsequent results? Why?
previously neglected or even unknown variables,
which should now be measured and managed. Agile goal setting and flexible KPIs that can evolve Many organizations have prospered as a result
over time will help navigate through rising levels of the pandemic and because of the nature of
Which of the existing trends, topics, or aspects of uncertainty and complexity. Building scenarios, their business models and the sector in which they
within performance management have lost Practice preparing emergency responses, and training operate like online shopping, supermarkets, home
their relevance and/or importance, from your managers and employees to deal with sudden entertainment, and virtual collaboration platforms.
point of view? The COVID-19 pandemic has caused disruptions changes will help improve the organization’s overall So, it may be tempting to observe Amazon, Zoom,
in our day-to-day lives, social relations, performance. When a crisis hits, people panic and Netflix, Walmart, Costco, and Instacart. However,
In light of the fast pace of change, the traditional economies, and business dynamics. Given the may become afraid to make any decisions because we can also benefit from observing organizations
approach of the five-year or even three-year plan impact of the crisis, what do you think are the managing with a high level of uncertainty is that survived despite being hit hard by the pandemic.
with rigid KPIs is no longer practical for many specific changes in the way strategic planning unfamiliar territory for most of us. But this is a skill We can also observe certain companies that have
businesses. Also, focusing only on maximizing and performance management are being that can be developed with training, practice, and experienced a paradigm shift in their performance
sales, profits, and return of equity (ROE) while conducted post-COVID? empowerment. Even if the crisis is different from management systems, such as Microsoft, GE, and
minimizing costs and taxes may prove untenable in the scenarios practiced, the skill of responding to it Accenture.
the future, especially for large corporations, which As mentioned above (under Q1), COVID-19 has will be developed.
will experience more scrutiny from governments accentuated some of the challenges and shifts in Leaders are ideally able to envision
and society at large. the economy, business, and society at large. Some How does benchmarking support the a glimpse of the future and foresee
of these changes are irreversible, meaning that improvement of performance management the organization’s role in shaping and
What does the corporate performance even after the pandemic hopefully subsides, a and target-setting systems? surviving that future.
management system of the future look like? “new normal” will look different. Strategic planning
What will be the major challenges in managing and performance management must evolve to In strategy, we always use the term “above average
performance in the future, and how should allow adequate response to sudden environmental returns” to describe a better financial performance What aspects of performance management
organizations prepare for them? changes, which sharply deviate from the “normal level than an industry’s average. Organizations should be explored more through research
assumptions.” New responsive models, simulations, that perform better than the industry average given their importance in practice?
With rising uncertainty and technological innovation and game-theory-based approaches should emerge often have a better chance of surviving crises. But
in management, I can envision new approaches in to allow flexibility and agility while optimizing returns and profitability come as a result of so An interesting area of research is developing future
planning, goal setting, and strategy-formulation performance and maintaining accountability. many things that happen inside the organization organizations, which are sustainable and socially
using simulations, scenario building, and game and, as a result, are less visible. For instance, responsible. Our economic and business systems
theory-based tools. Integrating these simulation What should be improved in the use of strategy customer satisfaction is a result of product and assume that growth (of GDP, sales, profits…etc.) is
platforms with analytics dashboards will enable quick and performance management tools to make service quality, employee morale, policies that the ultimate goal for governments and corporations’
customization of the most relevant KPIs to measure an organization even more resilient to future meet promises, and incentive systems. If we are management. But what if this endless quest for
the simulated performance of different scenarios. crises? able to benchmark the performance in key areas growth, which comes at a huge expense of resource
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INTERVIEWS INTERVIEWS
Aldweji
uncertainty, complexity, contradicting goals, employees. Leaders become more personally
interests, and corporate politics while maintaining engaged with them via face-to-face and video
their sanity and keeping their eyes on the goals Assistant Professor of Management interaction, rather than communicating over email
and performance. They need to consider not only College of Business Administration Taibah and through a third-party (an example is through
the immediate results but also the second and University Information Technology a secretary). In addition, transparent leaders keep
third-order consequences (Principles, Ray Dalio, Fleming College, Canada
their employees in the loop with both good and
2011). They must be able to make sense of relevant bad news. Transparent leaders also should welcome
analytics without drowning in information overload. According to the Center for Creative Leadership,
honest feedback from employees.
They are often able to identify opportunities and people can not do their best at work if they have
strategic options in various situations. Above all, doubts about the objectives or capabilities of
Moreover, when the trust between managers and
they must be able to craft a viable path forward others, the organization's direction or viability, and
their employees was established, leaders should
and be good listeners and communicators. their ability to comply with the demands imposed
extend faith to their employees. Placing trust in
What are the key competencies of a successful on them. In this interview, Dr. Sami Fathi Aldejwi,
employees means giving them further permissions
business leader (C-level executive)? Assistant Professor of Management in the College
and powers. This will improve the productivity of
BACKGROUND of Business Administration at Taibah University,
points out how trust from leaders to employees
organizations and employees. Increasing trust
Leaders are ideally able to envision a glimpse in employees also supports their growth and
of the future and foresee the organization’s role As a professor, Wael Nawara has developed improves employees’ productivity and ability to
development.
in shaping and surviving that future. They need and continues to deliver lectures on innovation, perform well at their work. Also, he has shared
to think about how the organization can remain entrepreneurship, and strategy since 2017. today's essential skills for strategy and performance
Sharing feedback and building trust help the
relevant in the future by delivering unique value He holds a bachelor degree in mechanical managers to succeed.
organization deal with difficult choices and move
to its stakeholders. This will be the reason why the engineering from Ain Sham University and a forward when facing challenges. However, these
organization should continue to exist in the future. A
successful leader is also able to co-dream this vision
post-graduate diploma in management from Trends trends in organizational performance management
the American University in Cairo. He has been cannot guarantee to lead the organization to be
with others in the organization and develop and awarded his master’s degree in international What are the key trends in organizational successful and cannot be implemented overnight.
lead a path that delivers the organization into that marketing from the University of Strathclyde. performance management from your point of They require some time and training.
future. Along the way, they can motivate, direct, view?
and inspire others through leading by example and Wael Nawara is the former CEO of Horizon Which of the existing trends, topics, or aspects
effective communication. They can work with others Interactive Studios (2012 - 2017). Also, he has I think the key trends in organizational performance within performance management have lost
to turn the dream into reality. During that journey, over three years of experience at Social Sphere, management are continuous feedback and their relevance and/or importance, from your
crises happen. Changes are inevitable, winds of Inc. as a Chief Innovation Officer. building trust. point of view?
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INTERVIEWS INTERVIEWS
experience) from the initial interview process to help organizations analyze employee strengths, short-term productive, while their engagement
Transparency and honesty in leadership offboarding. Improving employees’ experience weaknesses, and motivations accurately and quickly. is long-term. Compared to post COVID-19, they
are the two ways of building trust makes them feel happier, more productive, and operate in close-quarters offices, which makes
between managers, employees, and more motivated. In order to create better and Here, I can say that employee analytics is a need them less interactive.
direct reports. Also, these two ways are positive employee experience, it requires key and it is no longer a want. In addition, these tools
the most important quality of being a factors: long-term commitment from the employee, will assist the human resources (HR) department What should be improved in the use of strategy
good leader. leadership, and workplace practices. in identifying suitable candidates for recruitment, and performance management tools to make
how to interact with them, and exploring the most an organization even more resilient to future
I think organizational rules and processes have lost In order for organizations to prepare for any suitable career options for them. Also, these tools crises?
their relevance and importance within performance challenges, leaders need to improve their leadership will allow HR to make the right and fast decisions
management and contributed to employees’ loss of ability. It is crucial for leaders to take a personalized about the development of the talents, skills and The elements that should be improved in the use
the sense of belongingness to their organizations approach to motivating individuals. That helps abilities of the employees. of strategy and performance management tools
and their goals. employees meet their performance goals. to make the organization even more resilient to
future crises are designing the organization’s own
Old organizational rules and processes often How is technology impacting the way performance management system and allowing
prevent employees from getting things done organizations conduct strategic planning and employees to work on what they are good at.
effectively or improving their role efficiency. manage performance? Any specific technology
Organizations avoid talking about the common tools you would like to mewntion? In designing the organization’s own performance
process issues (for example, organizational structure, management system, it is needed to utilize individual
expense management, and expense policy). When Technology impacts the way organizations manage data and rely on employee feedback conversations.
employees lose a sense of belongingness to their strategic planning and performance management. The designed performance management system
organization and even their goals, they will not Through collecting data and analyzing them will help HR create employee development
electronically, organizations can collect more and strategies. Another methodology of designing the
bring out their best performance.
better data about their employees (examples Practice organization’s own performance management
What does the corporate performance given: team interaction, employee turnover, well- system is called job crafting, in which job roles are
being, and employee feedback). Managers can The COVID-19 pandemic has caused disruptions built around an employee’s strengths and interests.
management system of the future look like? to our day-to-day lives, social relations,
make more informed decisions and improve the
overall employee experience using the collected and economies, and business dynamics. Given the The organization should allow employees to
The corporate performance management system impact of the crisis, what specific changes do work on what they can do best and what their
of the future looks like increasing employee analyzed data. Any organization can embrace this
way of gathering data using the technology and you believe will occur in strategic planning and talents are, regardless of their actual roles. Some
engagement and millennials leading the performance management following COVID?
organization. later on, they will become more agile and decide employees do not know their strengths and real
based on data-driven analysis and interpretation. purposes. The organization should get involved
I think the specific change in the way strategic to help them find their strengths and purposes
While increasing employee engagement is a planning and performance management is being
metric to understand the success of the overall Furthermore, technology affects organizational by using the technology tools. By implementing
strategic planning and performance management conducted post COVID-19 is the interaction this method, they will drive by their purpose and
employee performance management strategy, between employees.
the organization needs to adapt to generational in terms of developing opportunities for employees promotion. That will also increase their innovation,
differences and allow millennials to take the by providing non-traditional ways and tools while development, productivity, and growth. The logical
conducting training. One of the changes impacting the effective result of this step is that organizations will rethink
leadership role as organizations led by them interaction between employees is the extreme the roles assigned to their employees.
improved in agility and increased innovation. caution against the transmission of the infection.
Organizations have the analyzed data about the
employees. It is time for using this information to Strict health precautions, such as social distancing, While navigating through these challenging
What will be the major challenges in managing have resulted in less communication between times, what would you consider the best
performance in the future and how should establish micro-learning, which is informal, short,
self-directed, and mobile-optimized content on employees and made everyone more cautious practice in performance management?
organizations prepare for them? compared to pre-COVID years.
single needed topics. These topics can be learned
The major challenge in managing performance from brief videos, podcasts, and webinars that I consider the best practice in performance
provide learning materials in an easy-to-absorb Therefore, face-to-face engagement is not common management is personalization. In challenging
in the future is improving employee experience. or successful when developing strategic plans
Improving employee experience refers to the format. times, reliance on rules, procedures, and common
and evaluating or managing performance. For practices will be less used. It is because those times
employee’s journey while working in an organization. example, the strategic planning and performance
It includes every interaction that happens along I would like to point out that artificial intelligence management teams work in open-space offices
have seldom passed before. Therefore, it is better
the employee’s life cycle (examples are emotions, (AI) and robotics are technical tools that help depending on the workload. Their interaction is
to use personalization in this case, which is to use
feelings, thoughts, decisions, and overall qualitative develop performance management. These tools each individual's personal experience, knowledge,
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INTERVIEWS
and skills, regardless of his/her real job role in the to its importance in practice is the appropriate
organization. Organizations should understand mechanism by which performance is managed,
that no one-size-fits-all performance management measured, and evaluated. Organizations have to
approach because every employee is different. discover the appropriate mechanisms for the nature
of their work and their own experience.
Public sector institutions use benchmarking to What are the key competencies of a strategy
support improved performance management and and performance manager to succeed
goal-setting systems. Business organizations do not nowadays?
use this approach because they face pressure from
the competitive market to measure and improve I think the key competencies of a strategy and
their performance, so they use real market- performance manager to succeed nowadays are
based competition to advance their performance interpersonal, communication and motivation,
management. organization and delegation, forward planning and
strategic thinking, problem-solving and decision-
making, commercial awareness, and mentoring
Research skills.
AROUND THE
(Redmond, Washington, United State), Goldman developed the university's strategic plans. He
Sachs (New York, the United States), Instacart, is the former MBA Chief Program and head of
Juniper Systems (Logan, Utah, United States), Kelly the Management Department. In addition, he
WORLD
Services (Troy, Michigan, United States), Adobe has already participated in and presented over
(Mountain View, California, the United States), EG 100 training courses in strategy, organizational
(Boston, Massachusetts, the United States), and development and self-development.
Deloitte (London, the United Kingdom).
As a strategic planning developer and
What aspects of performance management consultant, Dr Sami has prepared more than
should be explored more through research 100 strategic plans for public, private and Government Best Practices - Sustainability - Digitization –
given their importance in practice? non-profit organizations. He is well-versed in Performance Management
using strategic analysis tools including SWOT,
The aspect of performance management that balanced scorecard, scenario planning, PEST
should be explored further through research due and PESTEL.
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AROUND THE WORLD AROUND THE WORLD
SOUTH AMERICA
press trips with journalists and digital influencers
Tourism Campaigns
Why Brazil’s Tourism Is Thriving in
from Portugal, USA, and Dubai, and participation
in international tourism fairs. These actions have as
The three target markets of Embratur’s 2021
their main goal to expand the commercialization of
Tumultuous Times
campaigns were South America and the US, the Brazilian tourist products and destinations outside
two biggest markets for Brazilian tourism, and the country.
Japan, making good use of the momentum created
Currently, Embratur is doing a good job in attracting
Having struggled with a low number of tourist arrivals before by the 2021 Olympic Games. The main goal was
tourists back to Brazil, but in order to maintain that
to inform people that Brazil was open, safe, and no
the pandemic, Brazil generated billions of impacts for its ad longer required a visa from tourists coming from
growth in a sustainable way, the government will
need to make changes and promote investments in
campaigns amid a global crisis. those countries.
the tourism industry, particularly in infrastructure,
Joana Lima In its Strategic Plan 2021-2023, Embratur defined human capital, and promotion. Embratur shows that
a set of indicators and goals to monitor its progress. with the right planning, execution, and monitoring,
Some of these indicators include # Impacts strategies can lead to achieving the desired results
achieved in advertising campaigns produced online and make a difference even in times of uncertainty.
and offline, and # Annual arrival of foreign tourists,
with the respective 2022 goals of 300 million and
an increase of 30% compared to 2021. Both of
these goals have already been reached.
Revitalizing Central
such as cooperation, trust, and diversity.
from contemplation to embarking on a
journey.
Flexibility is essential to change readiness, while trust
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AROUND THE WORLD AROUND THE WORLD
Measurement can be done regarding sales volume and the ability or inability of the destination to stay per tourist, # Concerts, # Day tours available,
Tourism Strategy Monitoring (unit market share) or sales value (revenue market provide for them; compares and contrasts; and #Facilities available at tourist information centers,
Indicators share). This KPI is one of the most common makes a decision. # Free-access attractions and sites, # Inquiries
metrics for benchmarking competitors, along with answered by the visitor information center, #
There are two parts in Central Finland’s monitoring the registered and unregistered overnight stays. According to the smartkpis.com website, the largest International hospitality companies planning hotel
of indicators: annually monitored primary indicators #Visitors and $ Visitors Spending measure the database of documented KPIs around the world by development in the country, and $ Day trip spend
and strategy period-specific primary indicators (see number and the revenue generated by the tourism The KPI Institute, some of the KPIs that can also (see Table 1).
Figure 1). The indicators were chosen with national industry from both local and international tourists, be monitored are % Hotel occupancy, # Length of
comparability and tourism sector legislation in respectively.
mind. The indicators correlated to accommodation
% Hotel occupancy Measures the average rate at which hotel rooms in a specific
statistics, including information regarding the % The Central Finland Tourism Strategy measures
area are occupied within a given time period.
Market share, which measures the percentage of annual monitored indicators, such as events’ impact,
the target market accounted for by the business increase in media attention, hashtag monitoring,
compared to the existing market. and monitoring of the chief distribution channels
# Length of stay per tourist Measures the average stay of the tourists visiting the country.
and functions to track customer satisfaction.
CENTRAL FINLAND TOURISM’S Measures the number of concerts that are organized in a
# Concerts
CENTRAL FINLAND TOURISM'S region over a span of time.
INDICATORS MONITORED BY
ANNUALLY MONITORED INDICATORS
STRATEGY PERIOD Measures the number of day tours opportunities available
# Day tours available to tourists when visiting an area (usually relevant for major
touristic locations).
Accommodation statistics (TAK Income and employment research (TAK Oy)
research) Measures the average number of facilities (such as advice,
# Facilities available at
• Registered overnight stays, market share tours, accommodation etc.) that countrywide tourist
• Level of internationalisation of the region tourist information centers
information centers offer.
• Unregistered overnight stays (AirBnB (Visit Finland’s initial level study, share of
and Vrbo) international visitors)
• Visitor numbers and spending (TAK Measures the number of attractions and sites available for
# Free-access attractions
border research and domestic tourism tourists for free.
• Responsibility level of the region and sites
research)
Events’ impact • Quality level of the region (Mystery # Inquiries answered by the Measures the number of inquiries answered to by the visitor
Increase in media attention and Shopping 2021 and 2025) visitor information center information center in period.
hashtag monitoring (Meltwater)
• Accessibility analysis 2021 and 2025 # International hospitality Measures the number of existing plans for hotel development
Monitoring the chief distribution channels companies planning hotel in the country by international companies in hospitality.
and functions: development in the country
• Websites and social media
• Campaign reports Measures the average revenue obtained from one tourist
$ Income per visitor per day visiting the country / region / city, on a per day basis.
• Operational key figures (customer num
- bers, guidance volume, event numbers)
$ Day trip spend Measures the value of the tourists’ spend in day trips.
Figure 1. Strategy monitor indicators for Central Finland’s tourism strategy | Source: Central Finland
Tourism Strategy 2021 - 2025 Table 1: KPIs | Source: The KPI Institute’s smartKPIs.com
From the tourist's standpoint, the decision-making set of options, the decision maker mentally appraises These KPIs are critical elements for capturing competitiveness dynamics from a tourist perspective and
process can be reduced to three dimensions: from a the causes, the attractiveness or unattractiveness, allowing the country to make informed performance-based decisions.
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MIDDLE EAST
How did Qatar Airways do it? The state-owned airline also launched a group-
wide pay review across 41 divisions in March 2022.
Behind Qatar Airways’ Employee Employee Retention Rate
It is based on three elements: “Thrust,” “Trust,” and
“HR.” The program is designed to boost employee
in the Hospitality
industry, Accor has also partnered with Year13,
It’s about doing what matters in every part of a
Australia's largest digital platform for high school
team member’s life – whether that’s finding time
graduates. Through its digital careers expo, social
for 8am swimming lessons, 3pm school pick-ups,
Industry or facilitating their dream of working in outback
Australia or the snowfields of the South Island.”
channels and partnerships, Year13 is able to connect
with 1.6 million Generation Z's every year online.
In addition, Australia suffers from a dismal number 3. Open pathways to travel and work around Accor Pacific Chief Executive Officer, Sarah Derry,
not stop looking after its employees, particularly emphasized that while recovering from business
of skilled workers and enrolments in relevant VET the Pacific: Accor properties in the Pacific region
those experiencing financial difficulties and seeking challenges, the group will continue to “open more
(Vocational Education and Trainee) qualifications. now offer more work and travel opportunities for
medical support. career opportunities for people, and our teams
Data from AISC shows that after a slight increase future and current team members.
to 102,260 in 2019, program enrollments in across the state have been recruiting strongly over
In 2021, Accor’s goal was to increase its workforce of the past quarter, with the advantage of Accor
hospitality-related qualifications fell to 96,850 in 4. Advanced career development: Team members
18,000 employees in Australia and New Zealand being able to offer unprecedented opportunities
2020, following three years of declines from a peak can access training courses, practical skills, and
by 15%, whether that be for a gap year or a career. for career growth locally and internationally.”
of 116,030 in 2016. leadership programs through Accor Academy.
At the time, Accor had over 1200 jobs available in
its 400 hotels in Australia and New Zealand. Accor's strategy is completely in line with the
One of the companies that are navigating the skills 5. Flexible working for all: A new policy was
gap and worker shortage issues is Accor, the largest demands of the market. It not only modernizes
implemented by Accor to provide greater flexibility
The goal may appear huge, but Accor has carried the way of working but also places employee
hotel operator in Australia and New Zealand. Even to all employees in every role.
if more than half of its hotels worldwide stopped out strategies to deal with the issues in the talent satisfaction as the core purpose.
market.
their operations during the pandemic, Accor did
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AFRICA
“Destination 2023.” The document details the tourism practices; diversification of tourism product
Seychelles Tourism Strategy: direction of Seychelles’ tourism development offering; and inclusion of the local population in the
policies and investment strategies. sector growth. In addition, eight priority areas were
Our vision:
Be a higher performing and inclusive Tourism Sector
with greater inter-sectoral linkages
Seychelles 2023
Our Strategic Objectives:
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AROUND THE WORLD
The strategic plan is managed by the Ministry Specific guidelines in response to the COVID 19
responsible for Tourism and a responsible persona pandemic were developed for tourism operators to
was assigned to overview the implementation. enable a gradual return to normal business while
Moreover, due to the cross-cutting nature of protecting the health and wellbeing of tourists
the priority areas, responsible institutions were and employees. The Financial Assistance for Job
assigned to prepare and execute some strategic Retention program was established, while the
programs and projects from within the main Central Bank launched two concessionary lines of
strategic framework. The monitoring is based on credit that are guaranteed by the government.
the degree of adherence to the existing schedule
and the measurement of impact indicators at the
strategic objective level to assess implementation Moreover, due to the cross-cutting
efficacy. The reporting is done monthly, and the nature of the priority areas, responsible
plan will be constantly updated in correlation with institutions were assigned to prepare
and execute some strategic programs
the situational analysis findings.
and projects from within the main
strategic framework.
The first signs of the new strategic approach’s
effect on the sector’s evolution were registered in
2019. According to The World Bank, the number Health certificates were issued for establishments
of tourist arrivals reached 428.000, an increase of to confirm their capacity to accommodate tourists,
5.67% from the previous year. The expenditure of and awareness trainings were organized for health
visitors also increased from 611 million to 618 million and safety officers and focal points of tourism
US$, and so did the contribution of the sector to establishments.
the GDP, which in 2019 was 410 million US$.
The number of tourist arrivals is on an ascending
trend, with 77,655 tourists in the first quarter of
2022 suppressing the value of each quarter of 2021.
ASK THE
Clear objectives with action plans create structure
and a transparent overview of the steps to be
taken, while appointing responsible persons leads
EXPERTS
to accountability and engagement.
Adapting to the Times
In the following years, Seychelles is expected to
Based on the performance of the first two months, recover and even exceed its previous performance
2020 was expected to surpass the previous year, but if the strategy continues to be implemented, new
the country was heavily affected by the pandemic. measures are developed to support its sustainability
To ease the negative effect of international mobility in a post-pandemic environment, and contingency
restrictions, the authorities developed multiple actions are created to mitigate the effect of external Strategy Planning - Corporate Performance Management -
initiatives, with some in line with the priority areas. factors on the tourism sector. Employee Performance Measurement
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Successful leaders in highly volatile environments 5. Link reward to performance. It should be a part
are those who can benefit from a combination of of policy, procedures, and rules to link the CPM
agility and compliance to cut through complexities with the increment, promotion, incentives, and
and make the best possible decisions. termination.
Experts Experts
Manager MBA,CKPIP
Performance - Performance
Transformation Management Consultant
PMO Tharwah Management
Saudia Airlines Consulting
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ASK THE EXPERTS
Iulia Gabriela
Ask the
Tutulan
Performance
Management
Experts
Consultant and
Trainer
And Senior Customer
Engagement
Specialist
The KPI Institute
LIFESTYLE
performance is the change in the scope of this process • Facilitated training sessions and consulting
– we do not measure employee performance only programs on project management,
for control or a way to make data-driven decisions communication, employee performance
but also for performance improvement. and human resources management, subject
matters in multiple industry settings ranging
Therefore, traditional ways of measuring from construction industry, utilities to public
performance that included only rigid scales and services and NGOs.
results are no longer valid, and companies tend • Holds a Master's degree in Managerial
to be more flexible in their approach. The scales Communication and Human Resources Strategy Planning - Corporate Performance Management -
are customized, and different scales are used for Management Employee Performance Measurement
different criteria; whereas the sources for gathering
• A Certified Employee Performance
data are more diverse. Take Apple for example. Its
Management Professional and a Certified
evaluation process does not include only evaluation
KPI Professional
of results and competences but also a 360-degree
approach, continuous feedback, and goal setting.
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How To Engage Your Emotional How Leaders Build Trust and spots in this area? How do people respond to you?
This is the intrapersonal aspect of EI – managing
Accountability the self.
Intelligence To Adapt To Different Employers need two traits if they want their When it comes to managing others – the
Work Environments
team to adapt to new ways of working: trust and interpersonal aspect of EI – social awareness is key.
accountability. This is especially important if you Who are the best in your team? Is there someone
have certain people in the team working from who is struggling and could use a little empathy
home and some in the office. Employees need to right now? Put yourself in their situation and see it
feel they are part of the team and have a shared from their point of view. Using EI to deal with your
Discover the impact of psychological sense of responsibility. This gives them a sense of own emotions and behaviors and to understand
autonomy, which builds trust.
safety and self-regulation on work those of others will propel you from a good leader
to an excellent one.
performance and success. Psychological safety is paramount. Give people an
opportunity to air their views, grievances, and fears.
Managers may see this as a threat to their role or The most important aspect of
developing self-awareness is
as being too soft, whereas nothing could be further
understanding what it is about your job
Justine McGrath from the truth. that motivates you.
You need to be aware of what will enable peak
performance from your employees. If you want to
In 2020 the world of work changed forever. For ensure success in the workplace, building trust and Emotional Intelligence for
Companies with adaptable managers and leaders those
survived and, in some cases, thrived. Those who who have
accountability is essential. Employees
didn’t suffered. returned to To build trust and accountability, develop your In the same way that the manager or leader has to
the office full self-awareness. How? Understand your style of
In a survey done by the Whitaker Institute at NUI be fully aware of how their emotions and behaviors
time, the daily leadership and whether or not it is effective. Get
Galway in 2022, a staggering 95% of respondents impact both themselves and others, the same holds
commute is a reminder of a regular feedback from a trusted source.
said working remotely makes life easier. Thirty true for any employee.
way of life they would rather
percent of respondents said they would change avoid every day. Employees Self-regulation is how you manage yourself in This is particularly important if they are feeling
jobs – even if it meant taking a pay cut -- if their have to grapple with higher
employers did not take into account their remote apprehensive about the options available in the
levels of stress, and this affects
working preferences. workplace. They need to feel safe to voice their
their ability to regulate their
concerns.
emotions.
It was not all plain sailing for those working from
home. It only took a few weeks before we saw the toll The most important aspect of developing self-
Emotional Intelligence is the
it was taking on some, as the lines blurred between awareness is understanding what it is about your
ability to understand how
work and home. For working parents, having to job that motivates you. If going back to the office
our emotions and behaviors
balance your job with trying to homeschool was de-motivates you, why is that? Could you express
impact firstly on ourselves
extremely challenging. those issues/concerns to your manager? If you are
and then on others. In order
going to move to a hybrid work model, have you
to adapt to these new ways
There are emotional challenges for employees of working, employees need
with all three types of working. According to a to be aware of how to best the workplace. It is vital to understand your own prepared yourself mentally for that change? What
Microsoft Report in 2021, 54% of remote workers manage their emotions to ensure emotions and behaviors so that you can adapt and are the advantages and disadvantages, and how
feel overworked and 39% feel exhausted. Zoom they can continue to perform at their best. improve where necessary. Do you have any blind do they affect you?
Fatigue is also a factor with many meetings running
consecutively.
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EBW model of Business Emotional Intelligence is about the ability to use your intrapersonal and
interpersonal intelligence to focus on the critical emotions and underlying behavioral traits that predict
occupational performance. https://www.ebwonline.com/about-the-ebw/all-about-the-ebw-model
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• Images of nature
• Natural materials
Nature is a free and accessible model for one’s survival,
• Natural colors development, and growth.
• Simulating natural light and air
• Naturalistic shapes and forms
• Evoking nature Len Cristobal
• Information richness
• Age, change, and the patina of time
• Natural geometries
• Biomimicry
In intentional learning, a person is conscious of Intentional learning, which is the opposite of Adaptability Is Not a Unlearning One’s
their need to acquire new knowledge, values, or incidental learning, is driven by intrinsic motivation.
skills. If people want to learn something, they make Several studies have already cemented the impact Destination Communication Style
plans or take steps to achieve that goal, such as of intrinsic motivation on one’s performance,
attending conferences, inviting potential mentors engagement, and sense of fulfillment. But how During a crisis, businesses and professionals are Communicating change to organizations is not easy.
for coffee, and opening a book. They do these can intentional learning happen when change is forced and expected to increase their adaptability They must utilize proper channels and language to
things even if their companies or schools do not considered required and urgent? quotient (AQ) and learn how to remain relevant achieve clarity and understanding, to encourage
require them. and sustain their growth. Adaptability is not one another, work in harmony, build trust, and
a target but a continuous process. The golden respect leadership.
bamboo lemur is said to be the only animal that can
eat the poisonous shoots of bamboo in the forests Sometimes, for communication to be effective,
of Madagascar that contain great quantities of people have to step out of their comfort zone
cyanide. The lemur eats them every day but doesn’t and adjust to the language and tools that their
get ill or die. environment needs. They must put in the extra
effort not only to learn new information but also
Researchers believe that the lemur learned by to communicate it and make sure nobody is left
trial and error that it can neutralize the poison by behind. Austrian zoologist Karl von Frisch studied
eating the iron-rich soil in its area which, combined the communication of bees in 1946 and learned
with the cyanide, could block the effects of poison. that they communicate by dancing.
Adaptability means going beyond having defense
mechanisms, taking a risk, and doing a series of
trial and error. All of these require purposefully
seeking and acquiring new knowledge and being
open to new experience.
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Recommended Resources
Books
HOSPITALITY 2.0: Digital Revolution in the Hotel Industry
By Ira Vouk Practical
Guidelines for
This book presents the past, present, and future of the
Integrated
hospitality industry. It provides a thorough analysis of
Quality
challenges the industry has been facing and its current
Management
state in relation to the COVID-19 pandemic. Pore over
in Tourism
interviews with business leaders and technology founders
Destinations:
who share their journey in developing their brands into vital
Concepts,
components of the hospitality ecosystem. This book is perfect
Implementation
for hospitality professionals and new learners or hospitality
and Tools for
industry enthusiasts. Purchase a copy on Amazon.com
Destination
Management
Organizations
REVENUE MANAGEMENT MADE EASY for Midscale and
By World Tourism Organization
Limited-Service Hotels: The 6 Strategic Steps for Becoming
the Most Valuable Person at Your Property This handbook is a great resource for
By Ira Vouk business professionals and decision-
Are you looking for a revenue management practice material? makers in the tourism industry as it
This book is ideal for a starter. It provides current and useful offers a thorough understanding and
technologies, strategies, and theoretical knowledge as well practical approach to strengthening
as a strong perspective on revenue management with easy- the standards of tourism management.
to-understand explanations and examples in less than 100 The book sheds light on tourism
pages. Learn tips and tricks from experts on how to use principles and introduces fundamental
dynamic pricing, know how to check STR reports to ensure instruments in raising the standard of
occupancy rates are in line with ADR, and discover how to travel destinations. Grab a copy of the
utilize overbooking to increase revenue during periods of book on Amazon.com.
Even trees communicate with one another through and our judgment is clouded by pressure. Take a peak demand. This book is available on Amazon.com.who
their own “internet.” Matt Mostyn of OVO Energy break, spend more time in nature, and see how else wish to advance in their careers.
explained in his article, “10 amazing facts about it can inspire you.
Hospitality Hangout - Foodable Network
trees you should know,” that a special mycorrhizal
Hosted by Michael Schatzberg Schatzy and
type of fungi exists on the roots of trees. “They help
trees to absorb water and nutrients from the soil
And when you’re ready to face the times and grab
opportunities to grow your career and business,
Podcasts Jimmy Frischling
This podcast is hosted by Michael “The Restaurant Guy”
– but they also work on a much larger scale, like structured learning opportunities can solidify your All in the Industry Schatzbergand Jimmy “The Finance Guy” Frischling.
an underground internet, to connect entire forests. journey. Check out The KPI Institute certifications, Hosted by Shari
Bayer Together, they discover fascinating developments and trends
Essentially, the fungi help the trees to create designed to help you meet your goals, overcome in hospitality and link them to “technology and capital.” Every
Shari Bayer has been
a huge, intricately connected platform to both challenges, and achieve excellence, at https:// week, Michael and Jimmy interview hospitality professionals
communicate and share resources,” he wrote. kpiinstitute.org/certification/. in the industry for that are making great contributions to industry innovations.
over 25 years. She Download and listen to their new episodes via Spotify.
“It means that older, larger trees (known as ‘mother established Bayer
trees’) can be connected to hundreds of younger Public Relations, Slick Talk: The Hospitality Podcast
trees around them. They can then send nutrients, Hosted by Wil Slickers
the culinary and hospitality-focused PR
Slick Talk: The Hospitality Podcast is suitable for anyone
water and even whatever carbon they don’t use agency in NYC, in 2003. She launched
working in the hospitality, travel, and tourism sectors looking
through the fungi network to smaller seedlings – her weekly podcast on Heritage Radio
for a platform that will keep them updated on all the
which can boost seedling survival by as much as 4 Network called “All in the Industry'' in 2014.
trends in the industry. Learn from some of the most notable
In each episode, Shari invites experienced
times,” he added. restaurant and hospitality experts to
founders and experts across the board in the hospitality
industry through interviews every episode. This podcast is
share their expertise and experiences in
part of Hospitality.FM, the only podcast network dedicated
Intentional learning is meant to shift our mindsets the industry. Catch her weekly podcast on
to professionals in the hospitality sector and available on all
from disengagement to distress to desire. Sometimes, heritageradionetwork.org.
digital streaming platforms such as Spotify, Google Podcast,
it’s hard to see this when we are distracted by rules, and Apple Podcasts. For more updates, stay tuned to www.
slicktalkthepodcast.com.
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Software
Webinars
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C-PA
New Model for Restaurants will develop the necessary skills to act as advisors for improving strategy
Performance Maturity
MA
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Model Framework
EN
v 1.0 2020
U
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By Aaron Oster formulation practices in organizations.
RI M
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C-PA
North Adams, Massachusetts. In his talk, he shares
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restaurant, such as accessibility, workforce, culture,
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management. The learning experience is developed around a performance
MA
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management maturity model, which managers will get to use to identify the
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The Future of Hospitality and Tourism Industry maturity of their practices and the best ways to move forward.
By Upaul Majumdar
When the COVID-19 pandemic occurred, Certificate in Employee Performance Management Maturity Assessment IFICATE
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CE EMPLOYEE
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sector. Upaul Majumdar, the head of global tourism find this training useful as it captures the specific characteristics of Employee PERFORMANCE AUDIT
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practice for Dolma Fund in the UK, presents in Tedx Performance Management Systems on a 5-level maturity scale. Professionals
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Talks a look back at the industry during the first
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will be able to drive changes in current employee performance review practices
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year of the pandemic. He also discusses the things by developing explicit roadmaps for improvement.
waiting for the hospitality and tourism industry in
the future. Dive into his presentation and know how For more details and inquiries, contact Cristina Mihăiloaie,
technology helps the industry bounce back into Business Unit Manager – Research Division:
operations. The Future of Hospitality and Tourism
Industry is available on the official Youtube channel [email protected] T: +61 390 282 223 or +40 749 424 517
of Tedx Talks.
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How Do You Stay Ahead of the Game?
Certified Performance Management Professional
This course offers insights and best practices for improving performance in different scenarios, from
data analysis and reporting, decision making and initiative management, to building a performance
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Provide expertise to help you successfully design, build, and deploy a performance man-
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PERFORMANCE MAGAZINE
Performancemagazine.org is the online edition of PERFORMANCE Magazine,
the official publication of The KPI Institute, a leading global research
institute specializing in business performance. As an integrated performance
management resource, performancemagazine.org delivers industry news
and updates, insightful editorials, and multimedia content on strategy
and performance management. Each section features recommendations
and solutions for formulating frameworks, strategies, and objectives.