CauseandEffect - Tourism · PDF fileCauseandEffect!!!! CapacityDevelopment!in!the!Tourism...

Cause and Effect

Capacity Development in the Tourism Industry

A Case Study of Bali Master Program Tourism Destination Management

Master Degree Dissertation, December 2013 Veronica Wee, 120839


2

2

Cause and Effect


A Case Study of Bali

Master Program Tourism Destination Management Master Degree Dissertation December 2013

Veronica Wee

Student at the NHTV University of Applied Sciences,

Breda NL Student ID: 120839

I hereby declare that this dissertation is wholly the work of Veronica Wee. Any

other contributors or sources have either been referenced in the prescribed manner or are listed in the acknowledgements together with the nature and the scope of

their contribution.

Wee, 120839

Cause and Effect. Capacity Development in the Tourism Industry -‐ A Case Study of Bali

3

3

PREFACE AND ACKNOWLEDGEMENTS Before I began the journey through this research, I always reminded myself of this quote that kept me grounded and realistic about what challenges this research might impose. My inspiration to guide me through the tough times, here it is.

“The only way that we can live, is if we grow. The only way that we can grow is if we change. The only way that we can change is if we learn. The only way we can learn is if we are exposed. And the only way that we can become exposed is if we throw ourselves out

into the open. Do it. Throw yourself.”

-‐ C. JoyBell C.

The last months of research were very intense. A lot of hardship and effort is invested in information gathering, writing and constructing the thought process of this research. The privilege of experiencing this eye opening investigation would not have been possible, if not for the people who inspired the topic, CBI – Center of Promotion of Imports from Developing Countries and an excellent case study for this investigation. Ms. Ester Kruk in particular, has spared her time for guidance and resources, as well as patience and advice. Without her humble contributions to this case study, this research would have taken an alternate course.

Bilateral trade has always been an aspect of interest, and what more when confronted with knowledge trade – it is even more intriguing when investigating the powerful element of knowledge, change and personal development. I would like to acknowledge NHTV University, for giving me this opportunity to investigate a professional research paper on capacity building initiatives in the tourism sector of Bali. It would not have been possible without the resources and education structure of the university, especially from such a distance away. In particular, many thanks to Mr. Herman Jan Meijers in the early stages of this research’s development, and Ms. Carin Rustema for the supervision and execution of the entire research.

The most heartfelt acknowledgement of this research is in light of Ms. Carin Rustema’s supervision. The frequent banters, discussion and criticism encouraged me to think and solve in ways I never thought I could. Her support, guidance and leadership humbled me in thinking that there is always a solution, and sometimes thinking with the end in mind, is the best way forward.

Of course, I would also like to acknowledge all the research participants who have readily and willingly participated. Their time and efforts spent in providing generous insight have definitely contributed to the findings of this research, making this investigation an insightful successful case study.

Lastly, my family and friends who has always been there to support my journey through this research – thank you.


4

4

EXECUTIVE SUMMARY

Background: Capacity development is a form of new world investment. Its purpose on its own can be defined in many different ways, by many different organizations. This investigation, undertakes a research in interest of this catalytic approach in capability development within the tourism sector of Bali, the different actors involved in capacity building and the change that capacity building brings to its receivers. In a larger context, capacity building is a form of action used to support the likes of change management. Especially in today’s world where change is inevitable and comes upon an organization in complex and dynamic ways, organizations find capacity building a common way of supporting and promoting a culture shift to adapt to change. In some cases, capability building support organizations and individuals to be more proactive in receiving change. Besides the adaptability towards change, change management instills a culture of continuous improvement and performance management -‐ two important aspects that are geared towards organizational success.

Based on available resources and literature, very little has been reported on change management, performance management, and capacity building in the tourism sector. This makes the research problem much easily identified as literature is more often found in manufacturing, healthcare and education. Based on the context of the research problem, the following objective and research questions were developed.

Research Objective and Questions: were developed based on the context of this case study as followed:

The objective of this research is to investigate capacity building initiatives in the tourism sector of Bali through a comparative approach, in order to develop

strategies that will assist capacity building agencies and organizations alike to optimize capacity building initiatives.

Main Question: What does capacity building aim to achieve? R. Question 1 What is capacity building within the context of change management? R. Question 2 What is performance management and its correlation to capacity

building and change management? R. Question 3 How are organizations in the tourism sector in Bali adapting to

change and new environments? R. Question 4 What are other organizations outside the tourism sector doing? Methodology: Secondary research is predominantly desk research with several different sources of information. Literature used to build a theoretical context of change management, performance management and capacity building in the tourism sector. However, very little literature is written in the tourism sector, therefore organizational reports were used as literature to build the context. Primary research takes a comparative approach in deducting capacity building initiatives from providers and receivers in Bali against providers and receivers in Singapore. Both public and private sector stakeholders within the tourism industry were sampled to provide a well-‐

Wee, 120839


5

5

rounded perspective of capacity building and its purpose in the tourism sector. Contact by email is the main method to gain entre and semi-‐structured interviews were used to obtain in-‐depth information on the subjects researched. The research sample from CBI and InterContinental Hotels Group (IHG) was obtained through their existing database, where as (IE) Singapore’s members were contacted through linkedin.com and not IE Singapore due to a stakeholder non-‐disclosure agreement. Besides this, a forum discussing Customer Experience Management Asia (CEMA) and its correlation to increment of financial returns was attended to gain insight on what other multinational corporations were practicing in capacity building to adapt to change.

Conclusion: After gathering primary and secondary research findings, it appears that the correspondence of this case study behave in two ways when receiving capacity building, 1) organizations that are reactive towards change, and 2) organizations that are proactive towards change. It is noted that there is a weak correlation between a performance management culture in the tourism sector of Bali and change management. Besides this, findings from CEMA showed a customer experience management is a potential strategy in improving organizational performance and triple bottom line optimization.

Recommendations: Recommendations are formulated through the gaps identified within research findings in a SMART1 context for strategic execution. Ultimately, five main recommendations were developed to serve the strategy gap that is evident within the capacity building framework. They are:

Gap Recommendation Failure to secure support for the plan Convince, communicate & commit Failure to adapt to change Continuous improvement – Self, team or

organization Pool of experts not permanently based within the company

Sustainable training methods

Uncompetitive entrepreneurship A solid performance management cycle Too much financial focus Focus on consumer satisfaction to improve

annual triple bottom line The results show that it is impossible to increase an organization’s annual triple bottom line through capacity building initiatives when an unsustainable approach is evident. The results also prove that a continuous improvement culture with employees individually embedded with a learning attitude is first required before other catalytic programs can be introduced sustainably. Ultimately, the foundations of an organization must be of the accurate setting before being able to improve from good to great. Only thereafter a capacity building program can be put in place for an organization’s effort in continuous improvement.

1 SMART – Specific, measureable, attainable, realistic and time bound. SMART goals can be further defined at: http://topachievement.com/smart.html last accessed: October 7, 2013


6

6

TABLE OF CONTENTS EXECUTIVE SUMMARY 4

INTRODUCTION 9

RESEARCH OBJECTIVE 11 RESEARCH APPROACH 12

RESEARCH METHODOLOGY 14

SECONDARY RESEARCH METHODS 15 PRIMARY RESEARCH METHODS 16

CONTEXT ANALYSIS 19

CHANGE MANAGEMENT 19 KNOWLEDGE TRADE 21 PERFORMANCE MEASUREMENT 23 CAPACITY BUILDING 25

CAPACITY DEVELOPMENT – THE CASE STUDY 27

RESEARCH FINDINGS 29

5.1: REACTIVE ADAPTATION 29 5.2: PROACTIVE ADAPTATION 33 5.3: BUSINESS SUPPORT ORGANIZATIONS 35 5.4: CAPACITY BUILDLING IN OTHER BUSINESS SECTORS 37 5.5: RESEARCH BY OBSERVATION 38 5.6: SUMMARY OF FINDINGS 39

CONCLUSION 41

RECOMMENDATIONS 46

IMPROVEMENT STRATEGIES 46 7.1: CONVINCE, COMMUNICATE & COMMIT 47 7.2: CONTINUOUS IMPROVEMENT -‐ BE IT SELF, TEAM OR ORGANIZATION 48 7.3: SUSTAINABLE TRAINING METHODS 49 7.4: A SOLID PERFORMANCE MANAGEMENT CYCLE 50 7.5: FOCUSING ON CONSUMER SATISFACTION TO IMPROVE TRIPLE BOTTOM LINE 51 7.6: IDEAS FOR FUTURE RESEARCH 53

DISCUSSION AND REFLECTIONS 54

REFERENCES 56 APPENDIXES 60

Wee, 120839


7

7

LIST OF FIGURES & TABLES Figure 1.1: Research Structure .................................................................................................................. 12 Figure 2.1: Methodology process ............................................................................................................. 14 Figure 2.2: Comparative Study overview .............................................................................................. 16 Figure 2.3: process of field research design to findings development ..................................... 18 Figure 3.1: Nonaka (1991) quadrants of knowledge transfer ..................................................... 22 Figure 3.2: Knowledge transfer methods and the learning curve .............................................. 22 Figure 5.1: Adaptation cluster characteristics .................................................................................... 29 Figure 7.1: Recommendation of Delivery Process ............................................................................ 46 Figure 7.1.2: Three circles of the Hedgehog Concept. Source: Collins (2001, p96) ............. 48 Table 1-‐1: Research Questions .................................................................................................................. 11 Table 2-‐1: Sample Justification .................................................................................................................. 17 Table 7-‐1: Reinforcing Internal Communications ............................................................................. 47 Table 7-‐2: Continuous Improvement ...................................................................................................... 48 Table 7-‐3: Sustainable Training Methods ............................................................................................. 49 Table 7-‐4: A Solid Performance Management Cycle ........................................................................ 50 Table 7-‐5: Focusing on Consumer Satisfaction to Improve Triple Bottom Line .................. 52


8

8

LIST OF ABBREVIATIONS & ACRONYMS

ASEAN Association of South East Asian Nations

BAH Booz Allen Hamilton

BCG Boston Consulting Group

BEDO Bali Export Development Organization

BMZ The Federal Ministry of Economic Cooperation and Development, Germany

BSO Business Support Organizations

BTB Bali Tourism Board

CBA Commercial Bank Australia

CBI Center of Promotion of Imports from Developing Countries, The Netherlands

CEMA Customer Experience Management Asia

CSR Corporate Social Responsibility

DFID Department for International Development, United Kingdom

ECP Export Coaching Program

EMP Export Marketing Plan

EU European Union

HR Human Resources

IE International Enterprise Singapore

IHG InterContinental Hotels Group

IQPC International Quality and Productivity Centre

GDP Gross Domestic Product

GCP Global Company Partnership

KCBJ Kuta Cemerlang Bali Jaya Tours & Travel

NAB National Australian Bank

OECD Organization of Economic Cooperation and Development

UN United Nations

VCA Value Chain Analysis

Wee, 120839


9

9

Chapter 1 CHAPTER 1

INTRODUCTION The trade between developed and developing nations has infused growth and a flow of currencies between economies. In fact, bilateral investment treaties are the main legal mechanism governing foreign direct investment (Elkins et al., 2004). Predominantly in developing nations, policy makers believe bilateral investment treaties promote the flow of foreign direct investments (Neumayer & Spess, 2005). Foreign capital from developed nations into developing or under-‐developed nations as productive capital is a healthy source of foreign exchange (Elkins et al., 2004). In this research, the type of foreign exchange between countries is in the form of knowledge and capacity development, in application to the tourism industry. Especially in this case study of Bali, many international organizations have deemed the growth of tourism in the island surpassing the community’s capacity to comprehend it; therefore the interest of this research, is in the catalytic approach when aiding community development in the tourism industry.

Of recent years, the services industry showed good signs of recovery after the global economic crunch in 2009 (WTO2, 2013). Europe and The United Kingdom remain one of the World’s leading travel and tourism exporters and importers (WTO, 2013), making the region a lucrative trading partner in tourism.

On the other hand, travel and tourism development in Asia remain robust as annual visitor numbers continue to incline (WTTC3, 2013). Several factors contribute to this increase, mainly business and MICE 4travel, leisure and resort gateways. This can be observed when looking into hotel development projects from Accor Group 5 , InterContinental Hotels Group (IHG)6, and Starwood Hotels7 around the Asia Pacific region. Zooming into Indonesia, many international developers have invested in the country. Not just because of low operating cost and interest in the market, but because of the growing middle class that will fuel the travel and tourism sector within the next years (BCG8, 2013). Indonesia’s travel and tourism sector makes up 39.9% in export economy versus 22.2% in import economy (WTO, 2013). This shows the scale and potential of tourism sector trade with the Indonesian economy.

2 WTO is also known as World Tourism Organization 3 WTTC is also known as World Travel and Tourism Council 4 MICE is also known as meetings, incentive, conventions and exhibitions 5 Accor Group Trade Info available at: http://www.accortrade.info/corporate/accorhotels.aspx Accessed August 13th, 2013 6 IHG development pipeline available at: http://development.ihg.com/asia-‐middle-‐east-‐and-‐africa Accessed August 13th 2013 7 Starwood hotel development available at: http://development.starwoodhotels.com/divisions/asia_pacific Accessed August 13th 2013 8 BCG is also known as Boston Consulting Group


10

10

Being the 16th largest economy, Indonesia is still categorized as a developing nation due to several factors. Ranked 50 in the Global Competitiveness Index 2012, Indonesia is considered a stage two economy led by efficient-‐driven strategies (WEF9, undated). Nonetheless, the country is still a resilient nation with steady economic growth rates that promotes foreign direct investment (ADB10, 2013a). In line with the government’s plan for the future “pro-‐poor, pro-‐job, pro-‐growth, pro-‐environment”, many organizations have invested in sustainable development, innovative and efficient initiatives, knowledge solutions in global practices as well as environmental management (ADB, 2013a)

According to World Travel & Tourism Council (2013), Indonesia is ranked as one of the most competitive tourism countries within the ASEAN11 region against Singapore, Thailand, Malaysia and the Philippines. It is forecasted that the tourism economy in direct contribution to GDP and employment will increase in the next decade alongside multiplier effects on indirect contribution to GDP and employment (WTTC, 2013). As industries become more complex, multiplier effects from the tourism industry continue to double across other economic sectors such as transportation, education, tax and commercial services. However, despite the positive outlooks, Indonesia still faces many drawbacks to the success it deserves. Political and governmental corruption, strong educational deficit, high poverty rate and uneven geographical development all pose as deterrents to a year-‐on-‐year increase in triple bottom line12 (ADB, 2013a).

Taking a comparative case study approach in understanding capacity building initiatives in the tourism industry, this research assumes Bali, a developed tourism destination, in a developing nation as a specific geo-‐target location to analyze external capacity building initiatives and its effects. Due to the island’s diversity in tourism offer and opportunity, several key institutions have set up interest and developed programs to improve the economic potential of tourism providers. This aspect is the first element in developing this research’s theoretical framework. Following that, other stakeholders and other capability-‐building providers are identified with comparative case study potential.

In this research, The Center of Promotion of Imports from Developing Countries (CBI) Export Coaching Program (ECP) is taken in comparison against International Enterprise (IE) Singapore’s Global Company Partnership (GCP) program in Singapore. CBI and IE Singapore are both public organizations aiming to increase the capability of willing entrepreneurs for economic benefits. However, researching public organizations alone is insufficient to develop a critical and objective understanding of capacity building initiatives in the tourism sector. Therefore, InterContinental Hotels Group’s (IHG) I-‐Grad talent development program is researched to understand capacity building from the lens of a multinational hotel chain. This three-‐pronged approach will develop primary

9 WEF is also known as World Economic Forum 10 ADB is also known as Asian Development Bank 11 ASEAN is also known as Association of South East Asian Nations, available at: http://www.asean.org accessed: December 3rd, 2013 12 The triple bottom line refers to economic, social and environmental impacts.

Wee, 120839


11

11

research framework and triangulate the outcomes of this research. The triangulation of outcomes will support the recommendations and strategy development of this case study to be more practical, objective and applicable for industrial practice. Further information about these programs can be referred to in Chapter 4.

Also taken into consideration is the type of capacity building that is addressed in different organizations. In fact, capacity building is a way of addressing change in many organizations and developments that can occur in three separate levels13 , which influences the development program in a tourism environment. Individually address development programs serve different organizational and community needs. Consequently, organizations only become adept by learning from change (Melnyk et al., 2013). Even the Greek philosophers understood the concept of continual change over 2000 year ago.

“You could not step twice into the same rive; for other waters are ever flowing on”

-‐ Heractilus

Based on the research interest and context of the research problem, the following objective and research questions were developed as a guided structure on this investigation.

RESEARCH OBJECTIVE

The objective of this research is to investigate capacity building initiatives in the tourism sector of Bali through a comparative approach, in order to develop strategies that will assist capacity building agencies and organizations alike to optimize capacity building

initiatives.

RESEARCH QUESTIONS



change and new environments? R. Question 4 What are other organizations outside the tourism sector doing?

TABLE 1-‐1: RESEARCH QUESTIONS

13 Capacity building occurs on an individual level, organizational level and community level (Aref & Redzuan, 2009)


12

12

RESEARCH STRUCTURE

This report is structured in seven main chapters. These chapters are further described six different phases of research: 1) discover, 2) design, 3) define, 4) develop, 5) deliver, and 6) discussion. These six phases of research define the flow of which this investigative case study undertakes. The discovery phase in chapter one covers the exploratory phase of this case study, discovering aspects that is potentially involved in context development in the following phases. The design phase in chapter two determines the framework and structure the research executes. During this phase, this investigative case study transformed into a comparative case study towards capacity building initiatives in the tourism sector of Bali and Singapore. Chapter three and four covers the different definitions, theoretical understandings and existing framework of current literature on the topics related to capacity building. Moving further, chapter five reports on primary research development and constructs of this case study’s findings. From this, a conclusion on research findings was developed and based on the research conclusions; strategic recommendations were delivered in chapter six. Lastly, chapter seven is a summary of potential discussions raised from this case study and ideas for future research within the same context of capacity building, change management and performance management in the tourism industry.

FIGURE 1.1: RESEARCH STRUCTURE

RESEARCH APPROACH

In the early stages of research development, the strategy of this case study in Bali was an investigative case study approach with the ECP program by CBI as a main case study topic. However as the context of this investigation developed, and the case study of the ECP within the tourism industry in Bali alone is insignificant. Therefore, this research began a comparative approach against other cases of capability development initiatives within the tourism sector of Bali.

During this period, IE Singapore’s Global Partnership Program (GCP) and its capability development program for Singaporean companies was identified as a comparative program against CBI’s ECP initiative. However, these two programs alone driven by public organizations were insufficient, and therefore IHG’s talent development program was identified to complete a three-‐pronged approach to complete the understanding and evaluation of public and private sector capacity building initiatives. On top of this,

Chapter 1 Discovery

• CBI's ECP in Bali • IE S'pore • Other possibilities

Chapter 2 Design

• Secondary Research • Primary Research

Chapter 3 & 4

Denine • Capacity & Capability • Performence Mgt

Chapter 5 Develop • Extraction • Analysis

Chapter 6 & 7

Deliver • Findings • Recommendations & Conclusion

Chapter 8 Discussion

• Renlection of limitations

Wee, 120839


13

13

attending a forum discussing customer experience management and its correlation to triple bottom line optimization was considered in addition to views, and best practices from the private industry.

Once the stakeholders of this research have been identified to form a comparative case study approach, the research begins to define the theoretical framework of existing literature and research. Despite an abundance of research available of change management, performance management and capacity building, the context in which it is more commonly based on is in the manufacturing or health care sector. As very little has been written based on the tourism industry, many informal sources were used to build the basis of contextual background analysis of this case study. A strong academic influence was accorded during this approach.

An analysis of current capacity building initiatives of Balinese and Singaporean enterprises, as well as the I-‐Grad training program was attempted to initiate strategy development for impact optimization. Resources of these programs were obtained from the organization database itself. However, progress reports or annual reviews were not available and therefore no synthesis of actual program benefits can be executed.


14

14

Chapter 2 CHAPTER 2

RESEARCH METHODOLOGY

As defined earlier in the research approach, this case study’s methodology will be described in two separate sections: 1) secondary research, and 2) primary research. Due to the practical nature of this research, it is most suitable that the research methodology depicts a delivery process model used by many multinational companies and consultancy firms in project delivery (refer to figure below). However, this model’s four-‐step process is further enhanced by addition of ‘definition’ and ‘discussion’ to suit the comparative case study approach of this master dissertation paper.

FIGURE 2.1: METHODOLOGY PROCESS

Chapter 8 -‐ Discussion Discussion Process Ideas for future research

Chapter 7 -‐ Recommendations

Delivery Process Specinic, Measurable, Attainable, Reliable, Time Bound (SMART)

Chapter 6 -‐ Conclusion

Critical Analysis

Chapter 5 -‐ Research Findings

Development Process Understanding the answers

Chapter 4 -‐ Context Analysis

Deninition Process The role of capacity building

Chapter 3 -‐ Context Analysis

Deninition Process Change Management, Performance Management and Continuous Improvement

Chapter 2 -‐ Methodology

Design Process Primary and secondary research sources

Chapter 1 -‐ Introduction

Discovery Process Capacity building in public and private tourism sectors

Wee, 120839


15

15

SECONDARY RESEARCH METHODS Resources used to develop the contextual structure and theoretical back ground in secondary research is scientific journals, from NHTV’s mediatheek, online articles, government portals and reports, as well as country level economic reports published by global institutions. However, due to the practical nature of this research topic and limited resources on existing literature based on tourism research, other informal sources of information was considered such as online publisher eHotelier14, TEDTalk15, and public seminars were used as practical reference for industry best practices. Traditional resources (i.e. books and prints) were also utilized. Printed literature was obtained from the central database of the National Library of Singapore. The theoretical framework of capacity building was formed through a synthesis of combined models through several sources that best demonstrate this research’s context of external intervention and performance management. During this time, the study experiences an interpretive paradigm where capacity building and performance management is of an ontological belief (Baily, 2007, p.53), existing on multiple paradigms and altitudes.

The framework of secondary research is predominantly based around the aspect of capacity building. As, understanding the purpose of capacity building is the ultimate aim in the definition process, this study first took the reasons of which capacity building is performed in the first place – change management. Change management in a theoretical context can be defined in many different ways, and serves more than just a project cycle or implementation of a new action. Change control and management within organizations become a detrimental aspect in performance improvement and process renovation – two key elements of organizational success. Therefore, the theoretical framework this research is based upon a funnel that deducts to the end result of the purpose of capacity building and its role in organizational development.

14 Global Hotelier Community & News is available at http://ehotelier.com Last accessed: September 30th, 2013 15 TED Ideas is available at http://www.ted.com/talks Last accessed: September 30th, 2013

Capacity Building

Performance

Management

Knowledge Trade

Change Management

Formal Sources: Scientific Journals Country Reports

Government Portals

Informal Sources: eHotelier TEDTalk

Forums & Seminars

Traditional Sources: Books

Newsletters Prints


16

16

PRIMARY RESEARCH METHODS Once a basis of context and literature was established, the research continued with a design to obtain primary research through and selective sampling and interviewing techniques. Firstly, information rich cases from both CBI and IE Singapore were selected as interviewees to provide intensive and logical generalizations (Baily, 2007, p65). This is to provide a comparative, yet homogeneous quality to this research’s findings in capacity building initiatives. Semi-‐structured interviews were conducted with four main aspects: 1) Capacity Building, 2) Performance Management, 3) Intervention, and 4) Start-‐Stop-‐Grow (refer to Appendix A for further elaboration). Short, open-‐ended questions were asked to promote long and informative answers. When probing for elaboration, questions starting with “why” were avoided as it prompts a defensive statement, instead of promoting open discussion. This method encouraged more unbiased interviews and thick discussion descriptions.

FIGURE 2.2: COMPARATIVE STUDY OVERVIEW

The sample of interviewees were selected and contacted via different methods. The following table describes the justification for each stakeholder sample and its purpose in this case study’s research. The list below entails the companies and not the individual interviewees that participated in this research, a detailed version of this is available with company title and description in appendix B.

Samples / Channel

Justification

1) CBI To obtain a provider’s perspective of capacity building initiatives in the tourism sector of Bali

2) IE Singapore To obtain a provider’s perspective of capacity building initiatives in the tourism sector of Singapore

3) IHG To obtain a private / multinational corporation’s insight on

Export Coaching Program -‐ Bali, Indonesia

1. Flores Exotic Tours 2. Puri Kelapa Garden

Cotteges 3. KCBJ Tours

Global Company Partnership, Singapore

1. Mr. Soy Bean 2. BreadTalk & Toastbox

Singapore

IHG Acedemy, Bali & Singapore

1. InterContinental Resort Balii

2. Holiday Inn Resort Bali 3. InterContinental

Singapore 4. Holiday Inn Orchard

City Centre

Wee, 120839


17

17

capacity building and the role it plays within the organization. 4) CBI Members To obtain a receivers perspective of tourism capacity building in

Bali from an external organization 5) IE Singapore Members

To obtain a receivers perspective of tourism capability development program from a public institution

6) IHG Hotels To obtain a receivers perspective of internal talent development program from a private institution

7) CEMA Forum To obtain an external perspective to validate and provide other industry best practices on capacity building initiatives that improve an organization’s annual triple bottom line.

TABLE 2-‐1: SAMPLE JUSTIFICATION

Main method of gaining entre in primary research is through email. First point in contact with stakeholders is established through email two to three weeks in advance to secure support. Adding to this, geographical convenience played a large effort in reaching stakeholders as interviews were conducted at a work convenient location of the stakeholder (i.e. company office, airport, within working hours). This encouraged the stakeholders to participate, and to avoid cancellations, a follow up email one week prior to appointment was sent to re-‐confirm schedule. This resulted in a 100% response rate in appointment, and fostered better collaboration during interviews (with CBI, CBI Members, IE Singapore, IHG, IHG hotels).

On the other hand, attending the CEMA forum was a snowball effect, recommended by Duta Alamsyah, IHG Singapore, who reckoned the agenda was suitable for the findings of this case study, and the port-‐folio of attendees will add a different perspective of capacity building initiatives to this research. Signing up and participating the forum is straightforward and findings were clustered with the same elements of primary research interviews except for the addition of ‘training’. This is because not all aspects discussed during the forum were relevant as research findings to this comparative case study.

However, this case study failed to obtain a face-‐to-‐face interview with IE Singapore members, due to a strict non-‐disclosure agreement. Various methods of contact were attempted, however, only two responses were received through linked-‐in.com with short responses to the interviewed aspects. Most of the context was provided by the account manager Jeanne Lee -‐ IE Singapore. This is accorded as a huge limitation in this research as further information may have influence a different outcome to this research.

During field visits, research by observation is used to depict current environments. Field notes in order of the five senses16 of sight, hearing, taste, smell and touch is used to provide a physical and holistic description of the surrounding environment in the

16 The five senses of human organs is available at: http://www.scientificpsychic.com/workbook/chapter2.htm Last accessed: October1, 2013


18

18

research area. This method allows the study to stage a display of character and behavior into the reading context.

The phase of development centers mostly in the findings of this research. The comparative case studies used an integrative approach to synthesis three separate capacity building strategies in three separate economic, social and environmental conditions. This strategy presented a comparative understanding of capacity building initiatives and contested the initial approach of an interpretive paradigm to a critical paradigm (Baily, 2007, p55) where controversial definitions are challenged for a conclusive and strategic recommendation. Best practices from other industries and countries are used as benchmarks to stage improvement potential in current industry practices in capacity building. The best learning and information gathering technique was attending Customer Experience Management Asia 17 3organized by IQPC Singapore18. This high level workshop provided a platform for leaders from multiple multinational companies such as DBS Bank Singapore, Dubai International Airport, Commonwealth Bank Australia, Microsoft, InterContinental Hotels Group, Aviva Insurance, Oracle, and many more to get together and discuss customer experience, quality, consistency in delivery, training and reinforcements, as well as success stories of best practices across industries. This forum supported a strong development of strategies as well as validation of secondary research in what was reported on paper.

FIGURE 2.3: PROCESS OF FIELD RESEARCH DESIGN TO FINDINGS DEVELOPMENT

Lastly, both theory and practice are combined in recommendations, in which are formatted in a generalized context for productive implementation across all sectors and companies. This method also provides internal and external validity (Baily, 2007, p182) to this investigation. Delivery is the main objective in this phase and therefore recommendations are written in the perspective of an owner / provider / trainer / receiver for optimum understanding and implementation.

17 Customer Experience Management Asia available at http://www.customerexperienceasia.com Last accessed: October 2, 2013 18 Professional event organizer IQPC is available at: http://www.iqpc.sg/Location/Asia Last accessed: October 2, 2013

Field Research

1) Semi-‐structured Interviews 2) Forums

Findings

1) Common Denominator 2) Simple, yet impac@ul

Wee, 120839


19

19

Chapter 3 CHAPTER 3

CONTEXT ANALYSIS In this research, this chapter aims to decode the science of capacity building within the tourism context by triangulation of capacity building in a larger context. Evaluation of this catalytic approach begins with analyzing change management. Aspects in organizational change are synthesized and before looking into additional elements such as knowledge transfer and trade. Moving further, the importance of performance management and continuous improvement is identified as an aspect of reinforcement towards successful capacity building initiatives. Lastly, Indonesian consumer insights are put into context against Singaporean characteristics to further understand the psychographics of the research population. These aspects will lay the basic theoretical framework for this research and case study.

CHANGE MANAGEMENT As change occurs so rapidly in the world today, governmental institutions, policy makers, multinational organizations struggle to keep up with change, or better still, be in front of it. Change management is essential and detrimental to success and, change, is often done well with a solid capacity building strategy. Although, some cases of capacity building initiatives are victims of fallacy due to poor aim and reasoning in establishing an initiative. Many companies face change in continual (Coveney et al., 2003) and inevitable ways (Baca, 2005). Moreover in tourism where change is dynamic, non-‐linear and complex (McKercher, 1999), change is often received reactively and negatively. It is coming at a pace much faster in parallel with complexities beyond regular comprehension. As change is the only thing constant (Prosci, u.d.), we must ask ourselves “what can we do to receive change positively and proactively?”

The answer to that through literature is change management. But what is change management? The change management process can be defined in several ways. Okumus and Hemmington’s (1998) study on internal hotel change management describes the process in 5 stages19. On the other hand, Kotter’s (1996) book on Leading Change, explains change in eight key steps20 as turning points for an organization’s success. Besides that, Baca’s (2005) book on change management from a project management’s

19 Okumus and Hemmington’s (1998) study on internal hotel change management describes the process in 5 stages: 1) diagnosis, 2) consultation, exploration and negotiation, 3) planning, 4) implementation; and 5) monitoring. 20 Kotter’s (1996) 8 steps in change management: 1) establishing a sense of urgency, 2) creating a guiding coalition, 3) developing a vision and strategy, 4) communication the change vision, 5) empowering employees for broad-‐based action, 6) generating short-‐term wins, 7) consolidating gains and producing, 8) anchoring new approaches in the culture.


20

20

perspective, describes change in only three21 main elements. All of which are correlated to organizational change but few that are practical for implementation.

Research on change management has seen tremendous efforts in the last decades, all of which can or may be applicable to companies. However, due to the speed on change in current economies, organizations have to be more susceptible to change in all layers of management. A more updated and personal model for change management is Stanley’s (2012) RISE model22 that depicts a steady change process that can be applied on an individual level. Where RISE models are strongly embedded in society and a collective environment of individuals, change is usually easier. However, the RISE model is insufficient on an organizational or multinational level. In which case, Booz Allen Hamilton’s (BAH)(2004) Ten Guiding Principles for Change Management describes a more detailed process of successful change management structures that are applied in the practical field.

Beyond the façade of change management and its modules, change management is actually a process of change control (Baca, 2005). The rational and purpose of change management is to enforce continuous improvement, improve innovation, and instill a learning and growing culture. According to Prosci (u.d.), a world leader in change management consultancy, change management refers to an adoption of change by a group of an individual within an organization through a systematic manner.

“Change management is the application of a structured process and tools to enable individuals or groups to transition from a current state to a future state, such that a

desired outcome is achieved” Prosci, undated.

It is the control of change that enables organizations in realizing benefits and delivering results. Proactive understanding of shifting environments (McDeavitt et al., 2012) coupled with change that happens at individual employee levels (BAH, 2012) are key elements in taking control of the phenomenon. All these concepts can be synthesized with the Stanley’s (2012) RISE model, and the infinity loop of change management, however the main element reinforcing change management with high structural integrity – is training for continuous improvement.

21 Baca’s (2005) Elements of change are 1) authority, 2) environment and awareness, and 3) a proper tracking system. 22 Stanley, D. (2012) RISE model of personal change available at: http://www.dawnstanley.co.uk Accessed: October 28th, 2013

Wee, 120839


21

21

KNOWLEDGE TRADE

Knowledge23 as English defines it, is the facts, skill set, or information attained by an individual through experience or education; either through theoretical or practical understanding of the subject. Nowadays, knowledge is obtained from an individual’s journey through primary, secondary, advanced and tertiary education. The ministry of education in respective countries governs this education angle, and the angle in which this research is aiming to decode through capacity building is the education of individuals or organizations in entrepreneurship and work. How are policy makers, multinational companies and business owners addressing the need for continuous education to improve business strategies and business operations?

In an organization confronted with parallel issues of dynamic complexity (i.e. social media), it is not uncommon for a solution to arrive from an external vendor (Munar, 2012). In a case like this, knowledge would arrive from an external party in which a trade in knowledge is accorded. Knowledge trade evolved in more ways than one can imagine compared to when it just began. With the help of globalization, knowledge trade now occurs in forms of hiring experts to consult in the specific field of requirement, a relocation of an expert to a different company based to lead the change (Maley & Moeller, 2014) , or the implementation of foreign strategy or solution to a local business or organization. As the world moves towards a knowledge-‐based economy (Campisi et al. 2003), knowledge trade becomes the ultimate solution in the form of knowledge transfers and infusion.

Transfer in knowledge, happens in four general ways according to Nonaka’s (1991) article. As transfer is based on the basis of knowledge diffusion (Rogers, 1995), the process in which information is channeled is formatted either in tacit or explicit forms. Team discussions, workshops, and meetings most commonly form the first quadrant of knowledge transfer method that involves tacit to tacit knowledge; followed by tacit to explicit forms, which are executed through brainstorming, email blasts, online forums and network discussions through business support organizations – a priority for the tourism sector (Cooper, 2006). The third quadrant describes explicit to explicit forms of knowledge transfer, from an organization to another through the network of industry best practices. Lastly, explicit to tacit knowledge is obtaining knowledge from reports and reconstructing them into new ideas.

23 The definition of knowledge: the state or fact of knowing, is retrieved from http://www.thefreedictionary.com/knowledge on October 28th, 2013


22

22

FIGURE 3.1: NONAKA (1991) QUADRANTS OF KNOWLEDGE TRANSFER

Trading of knowledge occurs in a variety of methods depending on the organization, facilitator and audience. Furthermore, knowledge transfer addresses different levels of skill set and educational experience. In a multigenerational24 organization, knowledge transfer is a detrimental element in an organization’s success (The Conference Board, 2013).

FIGURE 3.2: KNOWLEDGE TRANSFER METHODS AND THE LEARNING CURVE

Source: The Conference Board, Inc. (2013)

24 Multigenerational refers to plural generations of people

Quadrant 1 Tacit to Tacit

Quadrant 2 Tacit to Explicit

Quadrant 4 Explicit to Tacit

Quadrant 3 Explicit to Explicit

Wee, 120839


23

23

PERFORMANCE MEASUREMENT

Performance measurement with specific goal and targets has been the main driver of task-‐related actions in organizations and governmental institutions alike (Murayama & Pekrun, 2011; Gegenfurtner & Hagenauer, 2013). Performance measurement and management facilitates good control by monitoring current performance levels and comparing it with expected standards (Melnyk et al. 2013). The purpose of this management system is often suggested to facilitate strategy improvement, implementation, and enhancing organizational performance (Davis & Albright, 2004). More importantly, a performance management system usually displays an initiative’s objective, aims, and desired outcomes to the organization; and as importantly, what has not been measured (Magretta & Stone, 2002).

In private organization and business, performance management is usually displayed in the form of a metric. Achievement goals are formulated into a metric as a critical aspect for all businesses, somewhat an informative scorecard of an organization’s current performance (Melnyk et al. 2013). But not just that, a metric has three distinct elements:

1. A performance measure that quantifies what is happening. 2. A performance standard, or target, that indicates what is considered good

and bad performance so guides the direction of the organization. 3. Consequences relating to being on, below or above target.

Source: Melnyk et al. 2013

Maley and Moeller (2014) suggests that this can be achieved through three basic principles: 1) Increasing individual employee performance, 2) development of the employee and 3) development of administrative tasks. However, Gibbs (2008) argues that performance is a widely misunderstood and disengaged aspect with employees. International Human Resources Managers are constantly challenged in instilling understanding of performance management in employees (Laine & Gegenfurtner, 2013). This is strongly influenced by the high profit orientation strategies by multinational organizations emphasizing revenue returns (Maley & Moeller, 2014) instead of sustainable performance management strategies.

Some researchers argue that performance measurement and management is also a paradox (Melnyk et al. 2013 & Goodhart’s Law). Goodhart’s25 law states “when a measure becomes a target, it can no longer be used as a measure.” This paradox of performance measurement occurs when organizations and business misuse and misinterpret the essence of measurement and monitoring. Organization excellence is often reinforced by unique knowledge systems within a firm (Menguc, Auh & Shih, 2007). Implementing proper knowledge management systems is essential to increase 25 Goodhart’s Law definition and meaning is available at: http://www.businessdictionary.com/definition/Goodharts-‐law.html Accessed November 9, 2013


24

24

learning capabilities of individual or groups employees (Liao & Wu, 2010) that support growth in organizational excellence. Since knowledge and skills reside within the employees themselves, organizational excellence can be increased through leveraging on employees knowledge (Birasnav, 2013). Indirectly, organizational knowledge is correlated to organizational performance. As organizational knowledge becomes the course of sustainable advantage against competitors, knowledge management automatically becomes an organization’s self sustaining capability development program -‐ an aspect crucial to the implementation of change and continuous improvement.

Wee, 120839


25

25

CAPACITY BUILDING

In the turn of the millennium, capacity building became an enhanced form of new world investment (OECD, 2008a). Leading organizations such as the International Monetary Fund, United Nations, the World Bank, OECD and many more saw the potential of tertiary education in developing countries as a way to enhance trade and long-‐term economic performance (OECD, 2008b). Because of this, there was a new avenue of trade from developed nations, to developing nations in the form of community, organizational and individual capacity building, also known as knowledge trade. In developing countries, capacity building may also accelerate economic growth (OECD, 2008a) like a coercive instrument seen by many as a form of long-‐term sustainable development in ‘third world countries’26. Along with these intentions, the following proverb comes to life.

“Give a man a fish, and you feed him for a day. Teach a man to fish and you feed him for a lifetime” – Chinese Proverb

Since then, an influx of governmental institutions and not for profit organizations began investing in capacity building. Governments with internal institutional bodies such as the Department for International Development (DFID) from the United Kingdom27, The Federal Ministry for Economic Cooperation and Development (BMZ) from Germany 28and The Center of Promotion of Imports from Developing Countries (CBI) from the Netherlands29, are all set up in the purpose of promoting bilateral trade by imposing sustainable economic development (BMZ, 2013), freer trade for wealth creation (DFID, 2013), and institutional development for better export capacities (CBI, undated). In other words, capacity building initiatives are built in the facade to address the educational deficit in developing nations that affect the potential capacity for higher economic performance with developed nations.

But what does capacity building really mean? The world where organizations are focused on capacity building initiatives towards developing countries has multiplied since when it first started course. This catalytic approach has taken center stage and become the main agendas of most governmental institutions and multinational organizations (LaFond, 2003) as a form of development that aids the triple bottom line

26 Definition of Third World Countries is available at: http://www.nationsonline.org/oneworld/third_world.htm last accessed September 5, 2013 27 Department for International Development, United Kingdom is available at https://www.gov.uk/government/topics/internatioznal-‐aid-‐and-‐development, last accessed August 9th, 2013 28 The Federal Ministry of Economic Cooperation & Development, Germany is available at http://www.bmz.de/en/what_we_do/principles/index.html last accessed August 9th, 2013 29 The Center of Promotion of Imports from Developing Countries, The Netherlands is available at http://www.cbi.eu/About%20CBI/CBI%20services/Export%20Coaching%20Programmes accessed August 9th, 2013


26

26

of any economy. Besides that, capacity development benefits the community in increased knowledge, comprehension and skillset, which have significantly increased the acceptance rate of new implementations in the health sector (LaFond, 2003), tourism sector (Aref & Redzuan, 2009) and defense sector (Keelty, 2009). Or so they think. But the question in which this research aims to understand is if this catalytic approach is seen and accepted as an antidote of economic, social and environmental success?

Capacity, depending in organization and context, is defined in several different ways. In a high level forum discussing Aid Effectiveness in Accra, The Federal Ministry of Economic Cooperation and Development 30 defines capacity as professional organizations, skilled personnel, capable structures and enabled environments. But who is to decide, if a destination or organization is unskilled, incapable and unable? Efforts and activities of capacity building organizations have been well documented since its introduction. But the methodology behind its selection of receiving units and nations are yet to be understood, as this varies from institution to organization. Furthermore, most researchers do not explore the variety of research themes, methodology and practical application strategies (Yun, 2004), which creates a gap in this area of research.

Capacity building and knowledge development has long been in the forefronts of government strategies, multinational companies, and not-‐for-‐profit organizations alike. However, the essence of capacity development may come in different forms and methods, or addressed in different ways. In private organizations, capacity building comes in the form of knowledge management or training and development. Due to high interest in profit orientation, training and employee capacity development has been well advanced in the general business sector (Morey et al., 2000). On the other hand, knowledge transfer possibilities have only begun attracting attention of researchers in the tourism sector (Yun, 2004), due to slow adaptation strategies (Cooper, 2006) and poor data mining (Dunham, 2003). Multinational organizations have accepted that knowledge is a “moving” rather than a static achievement (Lee, 2001) and therefore continuously invest in this learning effort (Farrell & Twining-‐Ward, 2005). The process of continuously confronting knowledge gaps, eventually leads to sustainable knowledge and capacity development on an individual, organizational and community level (Schianetz, 2007).

30 The Federal Ministry of Economic Cooperation and Development, Germany, is available at: http://www.oecd.org/education/research/37477437.pdf Accessed: August 5, 2013

Wee, 120839


27

27

Chapter 4 CHAPTER 4

CAPACITY DEVELOPMENT – THE CASE STUDY

Capacity building in a tourism environment can be tackled in more ways than one. Aref & Redzuan (2009) identified community capacity building as a key factor influencing tourism development. Beyond community development, this process strengthens the capacity of individuals within the community (Blackwell & Colmenar, 2000) enabling them to mobilize resources, deploy higher skill standards and address community problems (Mattessich &Monsey, 1997). For this research, three separate capacity building programs were accessed to form a comparative case study on strategic advantage in triple bottom line optimization. Collectively, these programs triangulate a framework of this catalytic strategy in the tourism sector.

CBI provides capacity building through the means of an Export Coaching Program (ECP) where members are coached in several aspects such as market research and information, which will assist them in exporting to EU markets and improve consolidation on their export position in the EU31. The main aim of this program is to improve trading expertise in the EU market and increase accessibility in EU market penetration. In a tourism context, the aim of the ECP is to improve the readiness and compatibility of tourism entrepreneurs in developing nations in order to increase tourism export from The Netherlands into the respective country. In Bali, the roll out of the program took place since 2008, and has since then accepted several eligible enrollments to participate in the ECP. The ECP focuses on the development of small to mid-‐scale entrepreneurs and capacity building in an organizational level. With the ECP, a long-‐term objective is more suitable due to the scale and size of participation and reach. In this case study, three stakeholders from the ECP program of CBI was willing participate: 1) Puri Kelapa Garden Cottages, 2) Flores Exotic Tours, and 3) KCBJ Tours.

The Global Company Partnership (GCP) program is one of IE Singapore’s capability building programs focusing on company internationalization. The aim of this program is to increase global competitiveness of corporations based in and out from Singapore by predominantly providing manpower development and financing opportunities32. The support provided for building internal capabilities come in the form of advice and scheduled consultations and aim develop sustainable entrepreneurial ethics and culture. Ultimately, the success of this program is achieved when a company is able to expand internationally and independently, and is able to provide high value jobs with regional

31 The Benefits of ECP available at: http://www.cbi.eu/About%20CBI/CBI%20services/Export%20Coaching%20Programmes Accessed August 27th, 2013 32 The Benefits of GCP available at: http://www.iesingapore.gov.sg/Assistance/Global-‐Company-‐Partnership Accessed September 30th, 2013


28

28

or global functions for Singaporeans (IE Singapore, 2013). The GCP has large goals with focused targets in return on investment. The GCP has a strong focus in developing capability on an organizational level to internationalize with long-‐term sustainable goals for members to operate independently in the future. For this case study, two companies of this program were willing to participate: 1) Mr. Soy Bean Singapore, and 2) BreadTalk Group of Companies. Both organizations have successfully been internationalized with the help of the GCP program and have expanded the current market share.

Being one of the largest hotel super chains, IHG take personal and talent development very seriously. The I-‐Grad program spearheaded by IHG Academy focuses on developing fresh graduates through an accelerated management leadership course in hotel operations. I-‐Grads are assigned to all operational departments to “understand the ropes” of the function and later the managerial requirements to optimize impacts through the measurement metrics of employee engagement, guest satisfaction, responsible business and financial returns (IHG, 2013). The purpose of this program is to develop dynamic talent to lead the business in tomorrow’s competition, and with IHG’s year on year expansion, new and capable talents are in demand in order to cater to supply. This talent development program improves development on a personal and individual level, however indirectly have long-‐term benefits to the company’s employee caliber by developing talent. For this case study, InterContinental Bali and Singapore as well as Holiday Inn Bali and Atrium Singapore has agreed to participate.

Wee, 120839


29

29

Chapter 5

CHAPTER 5 RESEARCH FINDINGS This chapter covers the findings of this research reported directly and indirectly. Direct findings are recorded as immediate research findings and are presented in the format of a common denominator, in this case – adaptation to wards change. Where as indirect research findings depict informal methods of research collection and observation. Capacity building is the main subject in immediate research findings and belongs to a subset of other activities the reinforce change or improvement of a process. It stimulates the company or organization’s ability to adapt to new situations and practice. During primary research, stakeholder interviews were designed in a manner to inquire their ability to adapt through reaction, time and space between the introduction and execution of a new system, process or practice. This depicts the style of adaptation a company practices towards change. Both public and private sector providers are also clustered towards their ability of adaptation. In this case, the adaptation abilities of new capacity building initiatives to be ahead of change.

5.1: REACTIVE ADAPTATION

When formulating this section, results are ultimately categorized into four separate clusters. Reactive adaptation describes the first cluster of stakeholders that practice a reactive mitigation method while encountering change. Actions are reactive and require more time to adjust compared to the other stakeholder group, proactive adaptation. Proactive adaptation is considered when reactive adaption methods are re-‐harness and re-‐structured to face the next process change or practice, proactively. It is change acceptance in a long-‐term perspective and an element of competitiveness in improvement of business processes. The figures below describe the main characteristics of each cluster.

FIGURE 5.1: ADAPTATION CLUSTER CHARACTERISTICS

Impromptu Spontaneous Singular adaptaAon aspect Unorganized Short-‐term orientaAon Low risk avoidence CollecAvist

Planned AcAcipatory MulAlevel adaptaAon aspects Structured Long-‐term orientaAon High risk avoidence IndividualisAc

ProacAve AdaptaAon ReacAve AdaptaAon


30

30

The first cluster of stakeholders is identified through primary research to have reactive adaption characteristics to capacity building initiatives. Stakeholders that fall into this category predominantly have poor confrontational habits with company shortfalls and practices. The attribute of not confronting the most brutal facts makes a company resilient to change, and when confronted with change in the form of capacity building, perform reactively due to the overpowering nature of existing company culture and practice.

For example, Puri Kelapa Garden Cottages – Bali (a capacity building receiver from CBI) displays Reactive adaptation characteristics in several aspects. First, in the area of Export Marketing Plan (EMP) (introduced by CBI) is used to enhance the current Dutch market share, which was successful since implementation. However, this reactive adaptation characteristic is observed when the operator does not apply it in other European market segmentation strategies. In energy conservation, the operator only considers LED lighting as energy conservation and does not consider other aspects such as eco-‐friendly air-‐conditioners, biodegradable linen detergents and wet waste management techniques as they were not coached to do so. The operator feels that the training provided from the ECP, is more suited for marketing strategies and tour operating companies – not so much for hotel or accommodation providers. An alternative coaching program with more operation specific strategies for hotel and accommodation providers can be more useful. “It is difficult for me to apply a tour operator focused training to my daily operations because of my lack in operational background. As I am a lawyer by trade, I have to learn everything from scratch, and can’t really leverage on a network with just tour operators, instead of accommodation providers.” – Kadek Budhaya, Puri Kelapa Garden Cottages.

Flores Exotic Tours joined the ECP as a humble up company in 2010 and has since then grown from a one-‐man operation to a three-‐man operation. Financial processes have also improved through reactive adaptation.

1. It was pointed out in 2010 that a company bank account is required for financial clarity as compared to a mixed personal bank account. A company bank account was created in 2011, followed by duo-‐currency (IDR & USD) bank account in 2013. A clear reactive approach to the business need, with a singular adaptation aspect and extended time frame.

2. Website development (introduced by CBI) is a turning point for many small to micro-‐sized enterprises to be published globally. However, managing information and transferring products from brochures onto web 2.0 is still lacking behind.

When prompted, what about self-‐read books that will improve your web-‐development skills? A simple – “that is not necessary at the moment, maybe in the future, maybe not, we will see” was accorded. More long-‐term orientation and sense of urgency is crucial to adapt to constant changes in the business.

Wee, 120839


31

31

BreadTalk – The Bread Talk Group of companies started in 2000 owning the BreadTalk brand and ToastBox local eatery (GCP member). The BreadTalk group owns several leading chains of restaurants in Singapore but show still reactive adaptation methods to consumer trends in the BreadTalk Brand. Since the launch in 2000, BreadTalk has gone through 4 phases of physical generations in design and presentation. Terrific efforts have been accorded in innovative pastry recipes (Asian Fusion) but it is the layout and design that is still on the crawl behind store concept and design. Mr. George Quek admitted that emphasis has and will always be placed on core product offerings (fusion bread and pastries) before creating a better “shopping experience” for the consumer. In this measure, we will always be one step behind the market, but not our product.

Holiday Inn Atrium Singapore displays reactive adaptation in several ways as well. A piloted guest feedback project was executed in the hotel to create an alternative platform for guests to express feedback in a prompt digital format. Despite it having higher success rates in other sister hotels within the region, the project concluded with a negative response rate. “The team did not execute it full-‐heartedly. Due to the maturity of the property, many employees have been employed for more than 15-‐years. Change is hard to implement when the mindset and culture do not want to adapt.” Besides the reluctance of employees, owners of the property are difficult to convince as well. “The Holiday Inn brand refreshed globally in 2007. We are the only property in the world of IHG that still carries the old Holiday Inn brand logo as our owners did not want to re-‐invest in the property because it is already doing so well. It is still doing very well! But we will go through a soft refurbishment and partial renovation in 2014. After seven years of convincing, IHG was going to exit the property if the owners did not comply.” – Sam Davies, Area General Manager, Singapore. This unfortunate scenario makes proactive adaptation difficult to apply in certain organizations.

On another property level, InterContinental Singapore and InterContinental Bali both face difficulty in physical uplift (ie. renovation and refurbishment) due to owner restriction and interests. To adhere to international brand standards of IHG, owners of the hotel are required to continuously re-‐invest in order to enable the management company to ‘deliver preferred brands’ to consumers. “Once you get the owners on board with re-‐investing, its time to get the work done with implementation. – Sam Davies, Area General Manager Singapore.” “You need to constantly revamp your outlook to keep up with the competition. This is the first time our property is undergoing heavy renovation in the club wing and lobby since opening 20 years ago, just to keep a fresh look amongst other ‘newer’ competitions in the South of Bali (ie. Le Meridian, Four Seasons, The Ayana, etc.) – Mieke Pinaria, Quality & Continuous Improvement Director – InterContinental Bali.” Both hotels describe the difficulties in convincing the owners in refurbishment to keep up with competition and that success in this aspect is detrimental to business competitiveness.


32

32

In a similar situation, IHG has a systematic way of project delivery but requires a lot of time for implementation. “It is efficient, but at the same time, uses a lot resources to implement a simple change. What may seem like a prompt reaction to current market trends is outdated after the long sequence of approval.” Duta Alamsyah, Manager of Operational Excellence. A simple project’s (i.e. changing hotel key card folder) implementation process takes three months, where as a complex project’s (i.e. project dragon: changing the food menu to suit the growing Chinese market in Asia) implementation process takes twelve to fifteen months to complete before a change is considered “hotel ready”. This makes large multinationals rigid to change and seem reactive to adaptation despite early efforts in planning.

This element is quite consistent in large organizations as mobilizing a new initiative take more time and resources for implementation. CBI also faces reactive adaptation when facing change. After the roll out of the ECP in 2008, the agency realized new potentials that can be improved along the tourism value chain with added capacity building programs along the chain. “A value chain assessment (VCA) to analyze constraints and identify market gaps was conducted in 2012 to justify the need of a new and more cohesive program. This VCA enabled the proposal of a new Integrated Program that includes stakeholders up the value chain however is still insufficient to justify the implementation of it in all markets” -‐ Ester Kruk, Senior Program Manager. Evidently enough, there is more to implementing change than just a market gap or a good idea, something in which large organizations are willing to spend much resource to identifying the right objective and outcomes before executing.

Wee, 120839


33

33

5.2: PROACTIVE ADAPTATION

The second cluster of stakeholders is more proactive and optimistic about change. When a new process or initiative is introduced, the company adapts proactively, quickly embedding the process into existing culture, and improving it to continuously suit market requirements. These companies are more aware that the only thing constant in business practice now, is change; and when change can be proactively implemented prior to occurrence, companies are more resilient in turbulent and challenging times.

The BreadTalk Group of companies displays proactive adaptation as well. Upon participating in the GCP program in efforts to internationalize the BreadTalk brand, the same strategy was applied for other brands belonging to their company. “A similar strategy plan is applied each time the company decides to venture into a new market such as the market mix, location choice, pricing strategy, competitor set advantage, human capital assessment is mostly similar. Although, the senior management may tweak a thing or two from time to time, but the essence remain. Most changes are for the better and some is needed in order to penetrate a new market. Like recently – BreadTalk India, as consumers there were much more value conscious and at the same time with bread as a more dominant staple diet than any other market we have been in” Clara Lee, Senior Brand Manager.

KCBJ Tours – Bali joined the ECP by CBI in 2007 and has since then proactively improved their company’s strategic plan by religiously improving the strategies brought forward from the capacity training program they received. – Simon Purwa, Owner

1. The EMP is now used on an annual basis to track marketing initiatives, and have additional areas of budgeting, financial expenses & planning. Although only introduced once, the EMP has now been modified to suit an annual business plan to keep performance on track.

2. Market export strategies to Europe (introduced by CBI) are adapted to suit other ASEAN markets to attain new market segments. What traditionally worked online for the European market is adapted to suit the Indian and Singaporean market and vice versa to increase inbound travellers.

Why is this stakeholder considered a proactive adapter to business? Because of the competitive nature to independently improve without depending on external capacity building providers. They are honest in confronting company bottlenecks encourage a collective strategy against overcoming the issue.


34

34

The I-‐Grad program from IHG is a proactive and long-‐term approach in withstanding change. “One of the toughest thing to do as part of a hotel super chain like IHG is retaining talent. Hotel staff come and go as they please, the company does not practice a culture of counter-‐offering and therefore are vulnerable to competitors poaching our high potentials” – Duta Alamsyah, Manager of Operational Excellence. “The I-‐Grad program literally trains a candidate from the scratch til they are capable to take a leading position, usually within two years. Most I-‐Grads are successful Hotel Managers fluent with IHG tools within five years. Indirectly, the program caters for IHG’s long term strategy with hotel expansion” Sam Davies, Area General Manager. In this case, the company develops talent and capability at an individual level with anticipation of future business needs as well as considering the time and experience an I-‐Grad requires before taking a full leadership role -‐ a far thinking capability development program designed to enhance individual capabilities that is able to serve the company at an organizational level.

IE Singapore is an excellent organization that practices proactive adaptation to change. As Singapore’s local market is limited, the Singaporean government encourages export potential by assisting local entrepreneurs with several key factors: 1) micro financing, 2) manpower staffing, 3) market research and 4) internationalization. A key example is offering partnering possibilities to a suitable and reliable partner in a foreign market with strategic business opportunities. “When Brazil was announced as host for 2014 World Cup and 2016 Olympics, the government saw the business potential in increasing the Singaporean export market and therefore developed a plan suitable for local businesses to participate. Of course, only qualified businesses were accepted for support but an initiative was launched to prepare Singaporean businesses to venture into the Brazilian market. Within a short period of time, more than 20 companies have ventured

Mr. Soy Bean join the GCP back in 1999 and had a vision to expand internationally. But as they lack expertise and were conservative to expand abroad despite strong local success due to the Asian Financial Crisis and difficulty in financing. They went through a thorough selection process as the IE Singapore (Singaporean Government) were very cautious in financing business overseas, but were successful in a grant for them to venture first into Malaysia. Since then, all was a success with constant (annual) monitoring on company accounts and bi-‐annual consultation with recommended consultants to improve current business stakes.

1. GCP gave key assistance in micro-‐financing opportunities for overseas business ventures that lead to them expand now to Malaysia, Philippines, Japan and China.

2. Franchising options (recommended by IE Singapore) as a strategy to label expansion was their secret in fast expansion. This idea literally made the concept viral and expanded to other markets where owners saw promise in its product, lean business model. This is especially so with investors retaining low rental and overheads in operational cost.

-‐ Mr. Wilfred Kong, Franchise Support/Business Development Manager

Wee, 120839


35

35

into the Brazilian market in 2012 (a high risk market to Singaporeans) and are doing business and adjusting well to the business climate. All this effort is in support of Singapore export market. We have the resources to plan and strategize ahead so local companies with limited business resources but right business appetite have the potential to excel against other large competitors, organizations, and countries” – Jeanne Lee, Manager of Customer Services Group.

In a similar situation, Chia Yee – HR Specialist for IHG based in Singapore, heads the on-‐boarding of new joiners to the company. Previously an I-‐Grad, she is well familiar with the company’s goals and strategies and is now in charge of ensuring all employees are proficiently briefed on IHG’s vision, goals, structure and culture in all IHG properties across Asia Pacific33. “It’s a huge region for a person to cover alone. I work very closely with key partners in certain sub-‐regions (ie. Bangkok representative will take charge of On-‐Boardings in Thailand and Indochina, similarly with Sydney representative with Australian newcomers, etc.) to ensure that every new employee is covered on time. IHG strongly believes in empowerment, and the first step for me in empowering my partners are making sure they are equipped and proficient enough to function on their own. I will fly in annually to make sure they are performing according to standards, and they usually do” – Chia Yee, HR Specialist. Revision of syllables and movement of people are communicated on a bi-‐weekly conference call to ensure all partners in the region are aligned in ways of working.

5.3: BUSINESS SUPPORT ORGANIZATIONS

The Bali Tourism Board34 (BTB) is a business support organization (BSO) for the tourism sector in Bali. When interviewed to understand the potential in which the Balinese tourism operators and hospitality providers have, very interesting remarks surfaced. “As a BSO, we consolidate information from all entities and act as a ‘trigger’ of knowledge disseminators to the industry. We are not the ‘implementors’ of capacity building. We foster a knowledge-‐seeking environment by introducing ‘Selasa Pariwisata – Tourism Tuesdays’ twice a month, where all entities (ie. restaurant, transport, hotel association, etc.) gather to discuss a topic of interest (ie. Balinese cloth). This initiative has brought more awareness to Bali’s tourism product and helps provide ideas to tourism, hotel and restaurant operators’, but is not big enough to be a capacity building initiative to change the tourism sector. – Gilda, Bali Tourism Board”. However, the BTB does not personally brand or market capacity building initiatives, nor monitor performance of individual entities. “Two years ago we had a checklist of things we needed to do. Now that list has become our performance management tracker. When we sit in a meeting, we know 33 Countries of Asia Pacific is available at http://www.apcss.org/about-‐2/ap-‐countries/ retrieved November 20th, 2013 34 Bali Tourism Board available at http://www.balitourismboard.org/about_us-‐overview.html retrieved November 20th, 2013


36

36

what we have done, and what still needs to be done. It is weird that we all need this because Bali is good and strong enough as it is, tourism here will never die as tourists love coming back and investors keep investing. – Gilda, Bali Tourism Board”.

Bali Export Development Organization35 (BEDO) is another BSO in Bali that focuses on the domestic and international export potential of enterprises in Bali. BEDO act as a filter to some organizations and channel the right initiative to the right economy. Yamamai, is an Italian manufacturer of fashion goods and have a CSR program from the UN. BEDO helps facilitate the CSR initiative by selecting the right benefactor (in this case 15 women with knitting & sequin sewing capabilities) from a village and provide training and funds to support handmade fashion wear and garments. “The women undergo 3-‐months of training and are able to work independently from there forth – able to sew for Yamamai and earn a living, as well as improve their current skills and make a business on their own. This program not just improved the CSR aspect of Yamamai, it improved the skills of these women, and their standard of living. Jeff Kristianto, BEDO.” Due to the success and goodwill this project received, BEDO is very keen on accepting more projects with a similar concept to this in the future.

Swisscontact36 is a non-‐profit organization with a catalytic approach, similar to CBI, based out of Bali that polices capacity building initiatives in the tourism industry. Aiming to alleviate poverty by increasing economical, social and ecological developments (Swisscontact, u.d.), Swisscontact has several projects based out of Bali that encompasses the same strategy as CBI – only that the geographical focus differs. “Our strategies and aims are very similar, only our methods of assistance, contact and training are different. CBI focuses on core subjects that will help companies export to the EU, whereas Swisscontact really focuses on increasing our stakeholder’s capacity” – Nicole Heidenreich, Component Manager Destination Development. “One of the hardest thing to achieve is to find a suitable host that will able to teach and self-‐fund itself after we leave (as this is a project). One of the sub-‐goals is to successfully introduce the teachings into a society through the capabilities of another teacher that is capable to pass on the knowledge. Of course, we will build up the program, market it and run it together before making it independent. This way, the program and values will long continue.

35 BEDO available at http://www.be-‐do.org/about-‐us.html retrieved November 20th, 2013 36 Swisscontact information available at http://www.swisscontact.org/en/about-‐us/portrait.html retrieved November 20th, 2013

Wee, 120839


37

37

5.4: CAPACITY BUILDLING IN OTHER BUSINESS SECTORS

In a forum discussing customer experience management, Brendan French -‐ Commercial Bank Australia (CBA), explained his company’s journey from being the least preferred bank in Australia, to the most preferred bank because of the CEO’s vision to change, the senior management’s commitment in execution, and the whole team of employees religiously practicing on a day-‐to-‐day basis. “Change has to be executed from the top management, supported by the stakeholders of the company, and enforced by the team through continuous training, feedback and improvement cycles. Processes and standards need to be constantly renewed to comply against industry standards and competitor benchmarks, in order to remain competitively attractive on a global level.” – Brendan French, VP of Customer Experience. This is the ultimate weapon against reactive adaptation; however, it is especially time consuming and difficult when applied in large organizations.

On another note, DBS Bank Singapore has recently changed in adaptation methods form reactive to proactive. From previous years, all strategy development is discovered, defined and executed from the “inside-‐out”. New implementations were not considered from a consumer’s perspective, but an internal workflow perspective (ie. a customer’s waiting time for a bank executive can be shortened by employing more bank executives). This solution solved the situation momentarily, but was not the root cause of the issue. Therefore new strategies had to be implemented “outside-‐in”, from the consumer’s perspective (ie. a customer’s waiting time is long not because there is a shortage of bank executives, but a series of unnecessary procedures before a simple transaction can be completed). By solving issues “outside-‐in” DBS noticed a huge improvement in business operations. Moving forward, ideas were designed “outside-‐in” as well and by doing so, DBS became the most preferred bank in Singapore. “Thinking outside-‐in became a religion in DBS and once we were able to apply it on a daily basis, all targets were achieved and everyone was happy!” – Andrew Sidwell, VP Customer Service Experience

Zalora37, online fashion retailor, describes winning in business is achieved through hiring the right people with the right attitude. “Remember when the hour of crisis comes, the forty selected men can shake the world – The Art of War, Sun Tzu” – Corentin Roux dit Buisson, Head of Data Science. “You will be surprised at how many programmers are willing to take up a challenge in joining a new start up company (with minimal pay) and create a program that can understand and manage big data information from customers. It is these people, so talented that they can determine the business appetite of a large region. Zalora, became the largest online retailor in South East Asia’s biggest within a year. Hiring the right people can really shape the future of your company.”

37 Zalora – about us, available at http://www.zalora.sg/about/ retrieved November 21st, 2013


38

38

“A winning strategy is defined by how a company can think in the minds of its consumers – Rimzie Ismail, Head of Customer Affairs and Service Dubai Airports.” Planning in the eyes of the travellers (in millions) that come through Dubai Airport is near insane, but not impossible. “We learn to categorize ALL guests and not leave out a single traveller and plan in the eyes of a business traveller, a mother of three, a backpacker, someone who is moving countries, etc. When you can think of what they need from their perspective, it makes your strategy much simpler.” Highlighting consumer touch points and identifying the common denominator is our key strategy with strong support from the governing body of Dubai Aiports. “To be the best airport in the world, you need to constantly take feedback, raise the bar and improve. Like our great Sheik Mohammad said: There is no finishing line in the race to excellence. Keep improving, keep winning – Rimzie Ismail”.

5.5: RESEARCH BY OBSERVATION

Research by observation was conducted in four different environments using the five senses as described in the methodology. The aim of research by observation is to provide a holistic description of the surrounding environment of the different research areas that are:

1) Bali – the main research area, 2) Singapore – the comparative research area, 3) The sampled hotels of IHG, 4) The leadership forum discussion for strategies and implementation.

Bali is an interesting tourist destination, what you hear about the island, is very different from what you actually experience in the island itself. Arriving in the new international airport, the interior exerts a cool, clean and professional outlook. However, exiting the airport is an entire contrast of humid, dirty and chaotic environment where taxi drivers tout and honk at passer-‐bys hoping to attain customers. Another observation noted is the way the taxi driver is able to maneuver through (what seems to be) chaotic traffic with absolute confidence, as if there are many unwritten rules to driving in ‘organized’ chaos. Most beaches in Bali are layered with black sand, a thought not commonly associated with an island and white sandy beaches. Because of this, the water appears dark and sometimes murky, instead of clear and blue. Visiting stakeholders in Bali is not simple, despite all appointments being successful, not one appointment scheduled with the stakeholder was held on time, everyone seemed relaxed and no one seemed apologetic as the traffic seemed to be the scapegoat every time. There were many small vendors along the streets everywhere, but most of them cared very little about hygiene, and were comfortable littering right at their doorstep. Trash is sometimes a status symbol (ie. leaving the rapper of Lays Potato Chips at your doorstep show you are able to afford it).

Singapore, on the other hand, can be considered a world of contrasts, compared to Bali. The transportation system in Singapore is likely once of the best in the world – with

Wee, 120839


39

39

trains and busses that frequent every 2-‐6 minutes, everyone commutes with public transportation. Singaporeans are very friendly people, always able to help a tourist holding a map, but are also xenophobic since the influx of foreign workers that arrived in the last decade or so. Movement is fast paced, and everyone is well dressed and on time, the entire opposite of the culture in Bali. Most people look like corporate minions and in a rush all the time. The surroundings of Singapore look so organized and clean, with a touch of many greens and trees that are very well grown – very good landscape planning compared to Bali.

A total of four IHG hotels were visited, two in Bali and two in Singapore. The similarities between the hotels are the physical exterior of the hotel grounds are very well managed. The staff employed with the hotels is well groomed and speak English proficiently compared to other local business operators. They are all uniformed and seems very sensitive to body language and gestures (ie. eye contact, smiles, assistance). The only differences noted between the four hotels from IHG is that the setting and the guests of the property is different. InterContinental Bali and Holiday Inn Bali are in an island setting where employees are dressed with beachwear and khakis compared to InterContinental Singapore and Holiday Day Inn Atrium where employees are dressed with a more business and professional appearance. As well as the guests in InterContinental Bali and Holiday Inn Bali are on holiday, the guests in InterContinental Singapore and Holiday Inn Atrium looked more like they were on business.

In leadership forum organized by IQPC on customer experience management, all participants of the event dressed and spoke professionally. Being in a conference room in Marriot Singapore, this promoted a good environment in having rich and purposeful discussion with leaders from other sectors. It was also a very international environment where Indian, French, Dutch, German, Australian, Indonesia, Chinese, Nepalese, and Singaporean nationalities were present. Both formal and informal platforms were set up by IQPC to foster collaboration between participants.

5.6: SUMMARY OF FINDINGS

Based on the research findings two main topics surfaced: 1) reactive adaption, which represents the majority of stakeholders interviewed with strategies that may improved for impact optimization, and 2) proactive adaptation, which represents the later group with some distinctive strategies that may be re-‐applied as good practices in other sectors. Reactive being the dominant adjective in describing stakeholder adaptive behavior is only the surface. One of the other factors influencing behavior is the type of authority and level of management and empowerment. Many companies face a management-‐induced gap (Coveney et al., 2003) because of four main reasons: 1) failure to secure support for the plan, 2) failure to communicate the plan, 3) failure to adhere to the plan, and 4) failure to adapt to significant changes. Other types of strategy gaps


40

40

include process-‐induced gaps or technology induced gaps (Coveney et al., 2003), however stakeholders involved in this research mainly experience management-‐induced gaps.

In the case of Holiday Inn Atrium Singapore, it was the case of failing to secure support for the plan from the people who will actually execute it. Due to a mature workforce, new initiatives more often experience resilience than acceptance. Similarly, CBI with the intentions of a new Integrated Program is experiencing it from a different perspective – on the side of the management and executive board. At the same time, the BreadTalk Group, IHG, Puri Kelepa Garden Cottages and Flores Exotic Tours experience failure to adapt to significant changes. Some companies choose not to be ahead of competition (BreadTalk Group, Flores Exotic) whereas some companies cannot change in good time to be ahead of the competition (IHG & Puri Kelapa Garden Cottages). On the other hand, CBA experienced proper support and top down communication for the plan, in which contributed to the success of the initiative of culture change within the company – eliminating two most critical barriers of management-‐induced strategy gaps.

Stakeholders displaying proactive measures in adapting to change own the opposite of management-‐induced gaps. IE Singapore is able to have support for the plan from the governing body of the country and policy makers alike and therefore is able to execute and provide thorough support to their program members. Likewise with Mr. Soy Bean and The BreadTalk Group that displayed opportunistic behavior and kept to their plan and continuously deployed the same strategy in other markets. The I-‐Grad program addressed the gap of adapting to significant changes toward the company in the long run, which would in return help the company in an economy that is substantially different in the future. Besides this, other companies could even safeguard against process-‐induced gaps such as 1) calendar based, 2) financially focused, 3) internally focused, and 4) lack of realistic forecasting (Coveney et al., 2003). A key example is DBS Bank Singapore, the “outside-‐in” strategy brought the company from being internally focused to externally focused, which promoted customer centric solutions instead of financially focused strategies.

The BTB as part of the governing bodies of the tourism sector in Bali show the greatest need in improvement. Despite the successes of the industry, BTB needs to lead by example to govern change for improvement within the industry. A checklist as a performance management tracker is simply insufficient to lead a destination to prosper economically, socially and environmentally. There are many key areas of improvement for the destination and improvements can begin with a proper performance management system for the BTB.

Ultimately, the research findings and clustering methods were able to identify several nuances in the current strategies in capacity building initiatives within the tourism sector. These nuances are taken as a basis to form recommendations for strategic action in the following chapter, and possible ideas for future research. The following section, concludes the research findings in accordance to the initial research questions in which this case study aimed to investigate.

Wee, 120839


41

41

Chapter 6 CHAPTER 6

CONCLUSION Throughout the research findings, it is apparent that different organizations provide different capacity building initiatives to cater to different development needs. Similarly, different individuals and organizations, accept, absorb and adapt to change differently. This is seen across the comparative cases in Bali and Singapore, as well as outside the tourism sector and its practices. In the early stages of research development, the following research questions were designed to investigate capacity building in the tourism industry of Bali. Moving forth, the sections below are the conclusion of the primary research data collected.



change and new environments? R. Question 4 What are other organizations outside the tourism sector doing?

TABLE 5-‐7: RESEARCH QUESTIONS RECAP

CAPACITY BUILDING IN THE TOURISM INDUSTRY IN THE CONTEXT OF CHANGE MANAGEMENT

From the research findings, it is clear that stakeholders within this research react in two distinct ways when confronted with change. The first cluster of stakeholders accepts change with reactive adaptation methods, whereas the second cluster of stakeholders accept change with proactive adaptation methods (refer to figure 5.1 for stakeholder group characteristics). Stakeholders with reactive adaptation methods are those with the largest potential for growth and stimulation for triple bottom line optimization. Especially for CBI members of the ECP program within this cluster, capacity building opportunities are available at all levels of management, as well as all three elements that make the triple bottom line. BreadTalk Group Singapore also falls within this cluster of reactive stakeholder behavior due to complacency in business appetite, putting emphasis only on product innovation and not environmental innovation. Similarly, large hotel companies suffer from reactive adaptation due to timeliness in responding to external change. However, reasons for reactive adaptation are different and rely more heavily on owner management and company culture (i.e. Holiday Inn Atrium).

From this cluster, it is the individuals that receive capacity building who are the largest deterrents in amplifying success. This is attributed by complacency in entrepreneurship and lack of ownership of responsibilities. By improving these simple drivers of change and implementing Stanley’s (2012) RISE model of individual change, stakeholders


42

42

should experience increased outcomes through the productivity of work and planning. Using the RISE model as a basic requirement and coupling it with other change modules such as Okumus and Hemmington’s (1998) hotel change management in five stages: 1) diagnosis, 2) consultation, exploration and negotiation, 3) planning, 4) implementation; and 5) monitoring. As well as Kotter’s (1006) eight steps in leading change: 1) establishing a sense of urgency, 2) creating a guiding coalition, 3) developing a vision and strategy, 4) communication the change vision, 5) empowering employees for broad-‐based action, 6) generating short-‐term wins, 7) consolidating gains and producing, 8) anchoring new approaches in the culture. Success is much easier achieved due to the systematic processes of undergoing organizational change.

Moving further, some stakeholders, fall into both categories of clusters due to different initiatives and strategies practiced. This means some stakeholders posses both reactive and proactive methods of adapting to change and its environments. Stakeholder clusters are listed in the figure below.

FIGURE 5.7: REACTIVE ADAPTION VS. PROACTIVE ADAPTATION CLUSTER

Stakeholders with proactive adaptation strategies listed on the right cluster are on the right track to performance improvement and process renovation. During field research, it is clear that stakeholders in this cluster are generally very self aware of their current performance and organizational gaps. Similar to Collin’s (2001) philosophy of great companies, organizations who are able to brutally confront the actual truths of their company, and understand them accordingly are able to move forward. Through observation, some stakeholders are beyond the scope of change control by strategy planning ahead of the game. They do not only display positive change management attitudes but a family of other characteristics that complement the outcomes when participating in capacity building initiatives. Amongst which include a healthier business appetite for adapting similar strategies in different markets, sustainable knowledge management strategies such as train the trainer and enabling knowledge transfer and empowerment, as well as future market insights and the ability to educate others in new emerging markets (i.e. IE Singapore).

Wee, 120839


43

43

PERFORMANCE MANAGEMENT, AND ITS CORRELATION TO CAPACITY BUILDING AND CHANGE MANAGEMENT

The aspect of performance management within this investigation yielded mixed outcomes during the course of research. Stakeholders interviewed within the primary research area (Bali) knew very little of what performance management is and the effectiveness it brings to an organization. For example, Puri Kelapa Garden Cottages, Flores Exotic Tours and the Bali Tourism Board display no practice of a performance management system within organizational operations. However, despite little knowledge in this area, there is still awareness in the aspect of service delivery and standards. This shows an opportunity for a performance management system.

On the other hand, other stakeholders (i.e. KCBJ Tours, Holiday Inn Bali, InterContinental Bali, SwissContact) show much awareness of the importance of a performance management system in the senior management level, however not on entre level staff that is merely responsible for basis day-‐to-‐day responsibilities. Arguably, this is a common factor in large organizations during the course of this research. As secondary research discovered, performance measurement and management facilitates good control by monitoring current performance levels and comparing it with expected standards (Melnyk et al. 2013). The benefit of this management system is strategy improvement, and enhancing organizational performance (Davis & Albright, 2004).

Stakeholders within the secondary research area (Singapore) show more awareness of performance management. This is largely because of the variance in educational exposure and national culture. Singapore is a much more competitive nation, compared to other neighboring countries, which naturally make the people and its organizations more aware of self-‐performance and improvement. While performing research in Singapore, all stakeholders interviewed were observed to be very self-‐critical showing critical self-‐awareness on areas or work that needed renovation and improvement through the measure of a company annual metric system. Perhaps, it is clear from this observation that capability building initiatives from IE Singapore are more effective due to the level of awareness and ownership for improvement the organizations behold. Melnyk et al. (2013) state that achievement goals formulated into a metric a critical aspect for businesses as it displays performance measurement in a form of a scorecard. This correlation of a strong performance management culture partnered with effective capability building programs may be the key in successfully confronting change and its environments.


44

44

ADAPTING IN BALI – HOW FLEXIBLE ARE YOU?

Adapting within the tourism sector in Bali is especially uneasy due to the current economic situation at the Island at the moment. Moreover in tourism where change is dynamic, non-‐linear and complex (McKercher, 1999), change is often received reactively and negatively. The business and economic landscape of the tourism industry in the South of Bali has significantly changed within the last years. This puts existing tour operators and accommodation providers in a rat race for business development. Puri Kelapa Garden Cottages describe difficulties in when competing against international operators due to purchasing power and flexibility. As a local, stand alone accommodation provider; it does not stand a chance in competing against the likes of Accor, IHG or Starwood. On the other hand, Holiday Inn Bali also express difficulty in securing business with smaller group revenues, as they are unable to lower their room rates below a targeted average. So, this price war scenario, is a paradox on both sides where the situation is proven to be dynamic, non-‐linear and complex.

Through research, it is observed that physical maintenance and upkeep of exterior grounds are a key element in keeping up with the business. Accommodation owners who are willing to re-‐invest in renovation and refurbishment gets a head start in obtaining business, but is not the only key factor is securing business. Adapting in the current economic environment and its competitiveness involve consistency in product delivery, good management of operational processes and continuous improvement.

The governing body of tourism – Bali Tourism Board themselves do not practice proactive adaptation. Tourism activities are decided in the same month and do not carry a yearly vision, strategy or plan. In practice, the tourism body can be surprised themselves when an event does not go according to plan or execution.

Fortunately, of all the stakeholders interviewed in Bali, KCBJ Tours is the only organization that has forward-‐looking strategies against change due to proper performance management systems amongst other local operators. This enables the company to plan ahead and set aside contingencies when a strategy does not go according to plan. Forward planning has also equipped the company with business flexibility and anticipated change. Nevertheless, this attribute is a rare sight amongst other local operators within the tourism sector of Bali.

Through research observation, KCBJ Tours Bali has accepted that knowledge is a “moving” rather than a static achievement (Lee, 2001). Therefore, continuously re-‐investing in this learning effort (Farrell & Twining-‐Ward, 2005) to be fit for future business proves an enabling strategy for success. The process of continuously confronting knowledge gaps, eventually leads to sustainable knowledge and capacity development on an individual, organizational and community level (Schianetz, 2007).

Wee, 120839


45

45

OUTSIDE THE WALLS OF TOURISM

Beyond the tourism industry, operational practice in capability building differs according to the needs of companies. However, the ultimate goal of capacity building remains as reinforcement towards change. Interestingly, it is observed during the CEMA forum that companies across the banking and financial industry, aviation facility services, software and IT services all face the same issues when reinforcing change. All areas of improvement narrowed down to the aspect of change and company culture. Despite the discussion of best practices in other industries, the root cause remains unchanged, like the tourism sector and in this case study of capacity building in the tourism industry of Bali.

In an organization confronted with parallel issues of dynamic complexity, many companies turn to an external vendor for solutions (Munar, 2012). As noticed through CEMA forum, many companies result to professional IT firms (i.e. Compuware, Oracle, Infosys, etc.) for online solutions and software that assist in data mining –an aspect that does not easily arrive within the company but is detrimental to performance management and organizational success. In a case like this, knowledge would arrive from an external party in which a trade in knowledge is accorded. Knowledge trade evolved in more ways than one can imagine compared to when it just began. With the help of globalization, knowledge trade now occurs in forms of hiring experts to consult in the specific field of requirement, a relocation of an expert to a different company based to lead the change (Maley & Moeller, 2014), or the implementation of foreign strategy or solution to a local business or organization. As the world moves towards a knowledge-‐based economy (Campisi et al. 2003), knowledge trade becomes the ultimate solution in the form of knowledge transfers and infusion.

Performing a synthesis of research findings in understanding what other companies are practicing outside tourism, the main aspect of difference is the emphasis on customer experience. Astonishingly, some organizations such as Zalora, with no physical contact during a customer’s transaction, take customer experience so seriously as to develop strategies to enhance customer experience. Evidently, this practice is a growing trend amongst other multinational organizations to develop outside-‐in strategies that prove to enhance annual triple bottom lines. It is observed; within the tourism context of this research that most stakeholders are pre-‐occupied with day-‐to-‐day operations and forget the core element of a tourism experience is the experience itself. Instead of focusing on the hard facts that delights a consumer, the soft elements must continue to be embedded in capacity building initiatives that will flow into the service culture of the organization.


46

46

Chapter 7 CHAPTER 7

RECOMMENDATIONS This chapter of recommendations is formulated on the basis of a practical approach for simple and strategic implementation with the aim for cross-‐sectorial and organizational benefits. The ultimate aim is to provide strategies for stakeholders with a reactive adaptation skillset to proactive adaption capacities. Likewise for proactive adaptation stakeholders, to continuously uphold, maintain and improve on current strategies.

IMPROVEMENT STRATEGIES The first element in providing good delivery in this chapter is recognizing gaps and loopholes in current practices observed through primary research and the constraints causing it. This is then supported by industry best practices obtained either through other sources of primary research or published strategies from recommended articles or books. These recommendations are presented in a SMART38 format, in application to the practical context of an organization or company.

FIGURE 7.1: RECOMMENDATION OF DELIVERY PROCESS

38 SMART goals can be defined at: http://topachievement.com/smart.html last accessed: October 7, 2013

Wee, 120839


47

47

7.1: CONVINCE, COMMUNICATE & COMMIT

Reinforcing Internal Communications Effect Short / medium term strategies with long term benefits Management-‐induced Gap

Failure to secure support for the plan

Root Cause From down line: poor internal communication and commitment From up line: insufficient proof, justification or resources

Best Practice Employee engagement through a top down approach & “walk-‐the-‐talk” -‐ Daily > weekly > >monthly > quarterly > communications

Goal Setting Specific aim: Securing support for a strategy of change Measured with: employee engagement targets Action through: Daily > weekly > >monthly > quarterly > communications Realistic: implemented within a certain timeframe Time bound: 30-‐day / 60-‐day / 90-‐day communications plan

TABLE 7-‐1: REINFORCING INTERNAL COMMUNICATIONS

Failing to secure support either from the down line or up line is a common barrier to implementing change. From the down line, internal communications is detrimental in reinforcing change. In all management processes, communication is of paramount importance (Coveney et al., 2003) to ensure all employees and team members adhere to the plan. Granerud & Rocha (2011) state that where a language barrier is evident, organizational learning and competency is affected as key messages fail through unfavorable communication environments. A vision must be collectively understood and delivered by an engaged workforce and committed leadership team (Holtskog, 2013). Just as CBA’s CEO’s Ralph Norris’s vision to improve the company’s triple bottom line through a consumer’s perspective (Brendan French, VP of Customer Experience).

On the other hand, failure to secure support from upper management usually means insufficient proof, justification or resources. An effective principle to apply in each project is the Three Circles of the Hedgehog Concept (Collins, 2001, p95). The first describes the what a company can be the best in and argues that what is currently at the core of the business, may not be what the company is best at doing – worse still, what the company is best at is not a current business. The second circle describes the economic engine of an organization. Collins (2001) argues that the difference between good and great companies is the economic engine of a company who has good insight on profitability drivers. Thirdly, is the company’s activity in which encourages passion amongst the employees daily performance. With these three basic principles, a Hedgehog concept is complete, and is able to secure support from the up line. Where as the only other consideration is in times of crisis and scarce resource, an initiative may still be put on hold.


48

48

FIGURE 7.1.2: THREE CIRCLES OF THE HEDGEHOG CONCEPT. SOURCE: COLLINS (2001, P96)

7.2: CONTINUOUS IMPROVEMENT -‐ BE IT SELF, TEAM OR ORGANIZATION

Continuous Improvement – be it self, team or organization Effect Short / medium term strategies with long term benefits Management-‐induced Gap

Failure to adapt to significant changes

Root Cause Passive work attitude Best Practice Self: A book a month / documentary / self-‐improvement lesson

Team: Training / role-‐plays / brain-‐storm / calibration Organization: Talent development program

Goal Setting Specific aim: Embedding a continuous improvement culture Measured with: Monthly / quarterly / annual targets on capacity building initiatives Action through: A process renovation cycle through key actors of the company with doable action plans and proper monitoring Realistic: measurements with achievable targets (5%-‐10% stretch) Time bound: through a 30-‐day / 60-‐day / 90-‐day action plan

TABLE 7-‐2: CONTINUOUS IMPROVEMENT

Many companies struggle to adapt to significant changes in time to cope with business, externally or internally. One is able to achieve proactive change once a self-‐improvement culture is in place. The likelihood of proactive adaptation increases when an individual is ready to accept and improve. Therefore, a continuous improvement culture embeddedment in an organization has to begin at an individual level. Stanley’s (2012) RISE model for personal change discusses 1) realization, 2) investigation, 3) substitution, and 4) embedding, being a standard journey in individual process renovation.

Once a self-‐learning culture is in place, a periodical self-‐assessment check or work performance review should identify places of improvement. This is especially so, when a gap analysis is performed against a competitor. These aspects should then be put through a process renovation cycle to identify areas to optimize output, anticipate change, or be the change, ahead of the competitor set. Success in process renovation and continuous improvement is in direct proportion to the effort that an individual, a team and an organization invests in its implementation, and then its ongoing management.

Company’s Passion

Economic Engine

Best Product / Skill

Wee, 120839


49

49

Therefore, continuous improvement is but the first step to adapting to significant changes proactively.

An organization’s internal environment and culture can drastically affect a team or an individual’s level of competitiveness (Zain & Kassim, 2012). As an organization’s culture is highly dependent on its leadership style, leaders that spend time creating touch points with employees and productive level (Holtskog, 2013) will be able to embed change easier. Healthy organizations promote innovation through radical or incremental improvement (Zain & Kassim, 2012) and therefore acclimatize to change more effortlessly. Collin (2001) states that in order for companies to transform, it takes all five hierarchies of a workforce to make it happen; but ultimately, its leader – in level 5 leadership39.

“Enduring great companies preserve their core values and purpose while their business strategies and operating practices endlessly adapt to a changing world. This is the magical

combination of ‘preserve the core and stimulate progress’” – Collins (2001, pg195)

7.3: SUSTAINABLE TRAINING METHODS

Sustainable Training Techniques Effect Short term strategy with sustainable benefits Management-‐induced Gap

Failure to adapt to significant changes

Root Cause Pool of experts not permanently based within company / country Best Practice Identify a local partner capable of training (long-‐term)

Train-‐the-‐Trainer Goal Setting Specific aim: Sustainable and long term training strategy

Measured with: Attendance and learning syllables Action through: 1) An alignment with the company’s aim and goals / a destination’s vision and strategy, 2) A proper training day enforced and encouraged through a top-‐down / outside-‐in approach, 3) According to national quality and standards Realistic: Syllables tailored according to the target group and training requirements (set deliverables: post training) Time bound: I.e. increase employee beverage knowledge from beginner to intermediate competency within 3 training session

TABLE 7-‐3: SUSTAINABLE TRAINING METHODS

The main aim of this strategy is identifying a sustainable way of capacity building to reinforce change. As Cooper (2006) identified, a key component in sustainable knowledge transfer is developing knowledge that will contribute to competitiveness.

39 Level 5 Leadership available http://gsblive.uct.ac.za/instructor/usermedia/1650/Collins%202001_2.pdf retrieved November 19th, 2013


50

50

Competitiveness is sustained when practical learning activities are catered to develop key competencies along a guided improvement process (Cachay & Abele, 2012).

Similar to IHG’s HR Specialist – Chia Yee’s strategy in regional on-‐boarding, training a large region on your own is difficult, but can be achieved by empowering other capable personnel to carry out the duty. Training-‐the-‐trainer enables Chia Yee to continue functioning with a local partner capable of carrying on the on-‐boarding for training while she is not around. This is more sustainable as she is unable to travel to the region every time an on-‐boarding with a new colleague is required. Likewise with Swisscontact’s strategy in identifying a local partner, this would enable the organizations capacity building program to continue even after the project is finished. Many companies engage in this practice, the image below describes a practice.

FIGURE 7.3: TRAIN THE TRAINER CONCEPT. SOURCE: HTTPS://AGILEFAQS.COM

7.4: A SOLID PERFORMANCE MANAGEMENT CYCLE

Performance Management Cycle Effect Short / medium term strategies with long term benefits Management-‐induced Gap

Inconsistent performance measurement practices

Root Cause Uncompetitive entrepreneurship Best Practice Monthly > quarterly > annual reporting

Rewards & recognition for achievement Penalty & close monitoring for improvement

Goal Setting Specific aim: Performance improvement Measured with: Monthly / quarterly / annual targets Action through: A process improvement through key actors of the company with doable action plans and proper monitoring Realistic: measurements with achievable targets (5%-‐10% stretch) Time bound: through a 30-‐day / 60-‐day / 90-‐day action plan TABLE 7-‐4: A SOLID PERFORMANCE MANAGEMENT CYCLE

A performance management system acts like a scorecard of monthly, quarterly and annual achievements in an overview. A company with a solid performance management

Wee, 120839


51

51

system is accustomed to its shortfalls and victories. This system allows one self-‐reflection and awareness of current performances and areas of improvement. It is an evaluation of corporate performance and the coordination of a control process within organizations (Claus & Briscoe, 2009).

The BTB is an organization in tremendous need of this. Not only do they have a simple checklist in place, they are not aware of the current standard gaps in service, hygiene and product in the tourism sector. By implementing a solid performance management system, the BTB will first be able to identify ‘areas in need of improvement’, followed by the actions that is required to execute this improvement, as well as the time and desired results targeted for this effort. This way, Bali’s tourism sector performance will be able to be managed and monitored professionally and systematically.

Similarly in Puri Kelapa Garden Cottages, no performance management system is in place and therefore initiatives and targets cannot be measured. In all aspects of business, only the financial returns are being monitored, however other aspects such as guest return rate and satisfaction, employee engagement, environmental responsibility is not accorded at all.

KCBJ Tours Bali is a prime example in practicing a solid performance management system. They have adapted the EMP -‐ first implemented by the CBI, on an annual basis. The EMP now acts as a performance management tracker as it lists what the company will do in a year, and allows the company to keep the initiatives on track and therefore manage performance. This method allows the company to confront the brutal truths of reality and how far they are away from achieving it, which then helps the management in planning a contingency plan against a grossly under performing aspect that they are measuring (ie. A 30% drop in Korean arrivals in Bali, replacement market required by end of year).

7.5: FOCUSING ON CONSUMER SATISFACTION TO IMPROVE TRIPLE BOTTOM LINE

Increasing Consumer Satisfaction Effect Short term strategy with long term benefits Process / Market Gap

Providers of tourism & hospitality and capacity building do not see the link between consumer satisfaction and an increased triple bottom line

Root Cause Inside the box thinking, too focus on financial goals Target Group Capacity Building Providers

Tourism & Hospitality Providers Best Practice A sustainable service culture focused on end user satisfaction, in

capacity building and more so in the tourism sector. Satisfied consumers are loyal consumers, which return to visit and


52

52

re-‐purchase a service. They Goal Setting Specific aim: Creating sustainable consumer satisfaction through a

service orientated working culture Measured with: Increasing consumer satisfaction targets, employee satisfaction targets, training satisfaction targets Action through: A process of a continuous improvement cycle of 1) collecting feedback, 2) understanding and analyzing, 3) creating strategies in the form of an action plan, 4) measure and monitoring progress to ensure improvement (refer figure 5.1.3) Realistic: Creating lasting customer experiences through all touch points of service to develop sustainable consumer satisfaction Time bound: Measure patron / tourist return rate by managing adequate guest history records

TABLE 7-‐5: FOCUSING ON CONSUMER SATISFACTION TO IMPROVE TRIPLE BOTTOM LINE

FIGURE 7.5: CONTINUOUS IMPROVEMENT PROCESS CYCLE

This four-‐step cyclic process is concept to collect, understand, action and measure feedback. Especially in the hotel and accommodation sector, the concept of collecting feedback will allow the management to understand which areas of the service needs improvement and renovation. Also, a service audit by a third party will enable un-‐biased and honest feedback for areas of improvement.

Reactive Continuous Improvement Process Cycle

Collecting

Feedback

Understanding & Analyzin

g

Putting it into Action

Measure&

Monitoring

Step 1

• Collect feedback to understand the voice of the customer

Step 2

• Understand & analyze feedback to develop potential strategies

Step 3

• Putting strategies into actions in a SMART and purposeful method

Step 4

• Measure and monitor strategies to ensure effective implementation

Wee, 120839


53

53

7.6: IDEAS FOR FUTURE RESEARCH

The build up of this case study has set the scene for several future research studies. Firstly, change management is a severely under studied subject in the tourism sector. Especially in the current economic landscape, change management studies within the tourism sector will be beneficial for tourism operators to understand the business in difficult times. Research in change management is more common in other sectors and examples provided are usually within the fortune 500 companies, sufficient to provide only basic context in the tourism industry. Adding to this, there is a lack of good understanding in the change control framework within tourism operators, which makes academic research in this area a good platform for tourism professionals to benefit from.

Continuous improvement in the tourism sector is also an understudied topic. As the tourism sector is difficult to quantify, there are many gaps in this research area that can improve the knowledge threshold of tourism experts in efforts of continuous improvement. Most scientific articles in continuous improvement are based on the manufacturing, health and safety industry. Mainly because the lead in quality and continuous improvement arrives from the manufacturing, health and safety industry, explains that quality and continuous improvement in the tourism sector is a new but potential topic of study. Efforts in continuous improvement should be a detrimental aspect in any business. Much like the start of yield management in the aviation industry, now, all other industries embed revenue management in daily operations because of the impact it brings to financial success.

On top of that, capacity building and knowledge transfer landscapes within the tourism sector is also minimal. Very few researchers have explored and identified actual knowledge transfer landscapes that feed the current business appetite of the tourism sector. Especially since the way in which knowledge is transferred in today’s world, foreign exchange in terms of knowledge has been re-‐defined into many new levels. This can be determined with a research dedicated to identifying the different landscapes of knowledge trade in the tourism sector.

Throughout the course of this research, it was observed that the comparative case studies only provided a high level overview of actual capacity development initiatives and impacts within the tourism industry. An area of potential investigation to understand capacity building initiatives in tourism organizations further is to have focus on an individual program and several program benefactors. This would enable a better review of provider-‐receiver understanding and identify specific areas of improvement in terms of trade, knowledge transfer, economic expansion and social and environmental development.


54

54

Chapter 8 CHAPTER 8

DISCUSSION AND REFLECTIONS During the course of this research, several main limitations were faced. Most of which centered amongst primary and secondary research – predominantly primary. The figure below illustrates the limitations faced throughout the different stages of this investigation.

FIGURE 8.1: OVERVIEW OF RESEARCH LIMITATIONS

Three main challenges were faced whilst conducting secondary research, all of which may have been a factor in the success of this research. Resource availability was the first limitation faced while executing research. This was due to the practical nature of this case study and availability of active resources in for this investigation. Information gathering also depended on other non-‐scientific sources (i.e. news, talks, online articles, published reports and etc.) that lead to another limitation, information reliability. Information gathering outside academia is largely biased (due to false marketing) and can overcome with a critical perspective and data validation. Lastly, access to information required with some stakeholders was strictly available on print, as online access is a breach to the company’s data privacy policy (IHG and IE Singapore). References were difficult to access in IHG’s talent development and training guides, IHG Academy, and IE Singapore’s stakeholders and training syllables and material due to privacy and competitive reasons. With access to this information, a more accurate and objective context can be concluded.

Most limitations faced during secondary research had no added consequence to primary research, except information accessibility. This limitation resulted in added pressure when gaining entrée to stakeholders and actors important for this case study. CBI and

Primary Research

• Stakeholder Cooperation • Gaining Entree • Biased Reporting • Data Credibility

Secondary Research

• Resource Availability • Information Reliability • Information Accessibility

Other Limitations

• Geographical Constraints • Time Constraints • Financial Constraints

Wee, 120839


55

55

IHG provided a list of potential candidates to touch base for research interest – which resulted in cooperative participation with the condition of anonymity. However, IE Singapore could not cooperate in facilitating introduction to potential candidates due to privacy and competitive concerns. During field research in Bali, this investigation experienced several degree of biasedness. This is especially so, when interviewing local companies (i.e. Flores Exotic Tours, KCBJ Tours, Puri Kelapa Garden Cottages, local people). A high degree of courtesy biased is accorded, as interviewees feel hesitant to share their true opinion, and rather willingly agree to the closest option. On the other hand, the Bali Tourism Board displayed a different sort of biasness by over stating the actual situation (i.e. Bali’s tourism is doing exceptionally well and do not need external intervention because the Island will sell itself, without the help of anyone – that is Bali’s true potential). Although there is truth in the statement, it does not perfectly describe the current situation and the tourism industry’s interest. Again, critical thinking and more probing are used to siphon out biased reporting and getting the true essence of the message. The flowchart below describes the technique in overcoming biased reporting.

FIGURE 8.2: BIASED REPORTING FLOWCHART

This investigation is based in Singapore and primary research, is conducted out of Singapore. Therefore, a geographical limitation is the main mode of constraint throughout this research. Alongside geographical limitations, financial and time constraints are accompanying factors that also affect the outcome of this study. As this is a self-‐financed research, monetary stature dictates the time available for field research in Bali. In overcoming this limitation, advance appointment (time and topic) planning, commitment from stakeholders and efficient logistical (transport and accommodation) was exercise to obtain a 100% success rate in primary information gathering. These proactive solutions assisted in a positive response rate from all stakeholders.

FIGURE 8.3: OVERCOMING LIMITATIONS

Limitations &

Constraints

Awareness & Planning

Response & Success


56

56

REFERENCES Aref, F. & Redzuan, M. B. (2009) Community Capacity Building for Tourism Development. Journal of Human Ecology, Vol 27(1): 21-‐25 (2009) Ashworth, G. & Page, S.J. (2011) Urban Tourism Research: Recent progress and current paradoxes, Tourism Management 32 (2011) 1-‐15 Asian Development Bank (2013a) Indonesia Country Fact Sheet. Retrieved June 11, 2013 from: http://www.adb.org/sites/default/files/pub/2013/INO.pdf Asian Development Bank (2013b) Indonesia: Economic Data. Retrieved June 11, 2013 from: http://www.adb.org/sites/default/files/ki/2012/pdf/INO.pdf Baca, C. (2005) Change Management. Harbor Light Press, Alameda, CA Biraznav (2013) Knowledge management and organizational performance in the service industry. Journal of Business Research available at: http://dx.doi.org/10.1016/j.jbusres.2013.09.006 Blackwell, A. & Colmenar, R. (2000) Community-‐building: From local wisdom to public policy. Public Health Reports, 115(2&3) 161-‐166 BMZ (2008) Capacity Development and Aid Effectiveness. The Federal Ministry of Economic Cooperation and Development. Accessed August 5th, 2013 from: http://www.oecd.org/development/governance-‐development/40976638.pdf BMZ (2013) What we do, Principles and Objectives. The Federal Ministry for Economic Cooperation and Development. Accessed August 9th, 2013 from: http://www.bmz.de/en/what_we_do/principles/index.html Booz Allen Hamilton (2003) Ten Guiding Principles of Change Management. Accessed October 28th, 2013 from: http://www.boozallen.com/media/file/138137.pdf Boston Consulting Group (2013) Indonesia’s Middle Class and Affluent Consumers. Accessed August 13th, 2013 from: https://www.bcgperspectives.com/content/articles/center_consumer_customer_insight_consumer_products_indonesias_rising_middle_class_affluent_consumers Cachay, C. & Abele, E. (2012) Developing Competencies for Continuous Improvement Processes/ Procedia CIRP 3 (2012) 638 – 643 Campisi, D., Barchiesi, M.A., Tesauro, C. (2003) Does knowledge trade create growth everywhere? Accessed October 28th, 2013 from: http://ideas.repec.org/p/wiw/wiwrsa/ersa03p303.html CBI (undated) Export Coaching. The Center of Promotion of Imports from Developing Countries. Accessed August 9th, 2013 from: http://www.cbi.eu/About%20CBI/CBI%20services/Export%20Coaching%20Programmes CIA World Factbook (2011) Indonesia. Retrieved June 11, 2013 from: https://www.cia.gov/library/publications/the-‐world-‐factbook/geos/id.html

Wee, 120839


57

57

Claus, L. & Briscoe, D. (2009) Employee performance management across borders. International Joournal of Management Reviews. 11(2) 175-‐193 Collins, J. (2001) Good to Great – why some companies make the leap and others don’t. HaperCollins Publishers Inc. New York, NY. Cooper, C. (2006) Knowledge Management and Tourism. Annals of Tourism Research. Vol. 33(1) 47-‐64 Coveney, M., Ganster, D., Hartlen, B. & King, D. (2003) The Strategy Gap – Leveraging Technology to Execute Winning Strategy. John Wiley & Sons Inc, Hoboken, New Jersey Davis, S., & Albright, T. (2004) An investigation of the effect of balanced scorecard implementation on financial performance. Management Accounting Research 15(2) 135-‐153 De Vita, C. J. & Flemming, C. (2001) Building Capacity in Non-‐Profit Organizations. The Urban Institute. Accessed July 30th, 2013 from: http://www.urban.org/UploadedPDF/building_capacity.PDF DFID (2013) About Us, Economic Growth. The Department for International Development, The United Kingdom. Accessed August 9th, 2013 from: https://www.gov.uk/government/organisations/department-‐for-‐international-‐development/about Dunham, M. (2003) Data Mining Introductory and Advanced Topics. New Jersey: Prentice Hall. Elkins, Z., Guzman, A. & Simmons, B. (2008) Competing for Capital: The Diffusion of Bilateral Investment Treaties, 1960-‐2000 , 2008 University of Illinois. Retrieved June 12, 2013 from: http://scholarship.law.berkeley.edu/facpubs/433 Farrell, B. & Twining-‐Ward, L. (2005) Seven steps towards sustainability: Tourism in the context of new knowledge. Journal of Sustainable Tourism, 13(2) 109-‐122 Gegenfurtner, A. & Hagenauer, G. (2013) Achievement goals and achievement goal orientations in education. International Journal of Educational Research. Vol 61. 1-‐4 Gibbs, M. (2008) Discussion of nonfinancial performance measures and promotion-‐based incentives. Journal of Accounting Research. 46, 333-‐340 Granerud, L. & Rocha, R. (2011) Organizational learning and continuous improvement of health and safety in certified manufacturers. Safety Science. 49 (2011) 1030-‐1039 Holtskog, H. (2013) Continuous Improvement beyond the Lean understanding. Procedia CIRP 7 (2013) 575 – 579 IE Singapore (2013) Global Company Partnership. Retrieved September 17th, 2013 from: http://www.iesingapore.gov.sg/~/media/IE%20Singapore/Files/Publications/Brochures%20Local%20Companies/GCP_BROCHURE1.pdf IHG (2013) I-‐Grad Program. Retrieved September 30th, 2013 from: http://tourism.uq.edu.au/docs/2012/I_Grad_2013.pdf


58

58

Kotter, J. P. (1996) Leading Change. Boston: Harvard Business School Press. Laine, E. & Gegenfurtner, A. (2013) Stability or change? Effects of training length and time lag on achievement goal orientations and transfer training. International Journal of Educational Research. Vol. 61, 71-‐79 Lee, K.F. (2001) Sustainable tourism destinations: The importance of cleaner production. Journal of Cleaner Production, Vol. 9, 313-‐323 Liao, S.h. & Wu, C.C. (2010) System perspective of knowledge management, organizational learning and organizational innovation. Expert Systems with Applications. 37, 1096-‐1103 Magretta, J. & Stone, N. (2002) What is Management? The Free Press, New York. NY Maley, J. F. & Moeller, M. (2014) Global performance management systems: The role of trust as perceived by country managers. Journal of Business Research 67 (2014) 2803-‐2810 Mattessich, P. & Monsey, B. (1997) Community building: What makes it work. A review of factors influencing successful community building. St. Paul, MN: Amherst Foundation McDeavitt, J.T., Wade, L.E., Smith, R.E., Worsowicz, G. (2012) Understanding change management. The American Acedemy of physical medicine & rehabilitation Vol. 4, 141-‐143 McKercher, B. (1999) A chaos approach to tourism. Tourism Management, Vol. 20, 425-‐434 Melnyk, S.A., Bititci, U., Platts, K., Tobias, J., & Anderson, B. (2013) Is performance measurement and management fit for the future? Management Accounting Research available at: http://dx.doi.org/10.1016/j.mar.2013.07.007 Menguc, B. Auh, S. & Shih, E. (2007) Transformational leadership and market orientation. Journal of Business Research. 60(2007) 314-‐321 Ministry of Tourism and Creative Economy (2012) Statistics. Retrieved June 11, 2013 from: http://www.budpar.go.id/asp/detil.asp?c=86&id=1240 Ministry of Tourism and Creative Economy (2013) Wonderful Indonesia. Retrieved June 12, 2013 from: http://www.indonesia.travel/en/discover-‐indonesia#tab1 Morey, D., Maybudy, M., & Thuraisingham, B. (2002) Knowledge Management: Classic and Contemporary Works. Cambridge: MIT Press Munar A.M (2012) Social Media Strategies in Destination Management. Scandinavian Journal of Hospitality and Tourism 12(2) 101-‐120 Neumayer, E. & Spess, L. (2005) Do Bilateral Investment Treaties Increase FDI to Developing Countries? LSE Research Online. Retrieved June 11, 2013 from: http://eprints.lse.ac.uk/archive/00000627 Nonaka, I. (1991) The Knowledge Creating Company. Harvard Business Review. 69 (6):96-‐104

Wee, 120839


59

59

OECD (2008a) Cross Border Higher-‐Education & Development. January 2008 OECD Observer: Policy Brief. Accessed August 5th, 2013 from: http://www.oecd.org/education/country-‐studies/39997378.pdf Okumus, F. & Hemmington, N. (1998) Management of the change process in hotel companies. International Journal of Hospitality Management 17(4), 363-‐374 Prosci (undated) Change Management. Retrieved October 28, 2013 from: http://www.prosci.com/change-‐management/definition/ Schianetz, K., Kavanagh, L., & Lockington, D. (2007) The Learning Tourism Destination: The potential of a learning organization approach for improving the sustainability of tourism destinations. Tourism Management, Vol. 28, 1485-‐1496 Song, H., Dwyer, L. & Li, G.Z. (2012) Tourism Economics Research: A Review and Assessment. Annals of Tourism Research, Vol. 39 (2) 1653-‐1682 Stanley, D. (2012) Personal Change: RISE Model. Retrieved October 28, 2013 from: http://www.dawnstanley.co.uk Swisscontact (undated) About us. Retrieved November 20, 2013 from: http://www.swisscontact.org/en/about-‐us/portrait.html The Conference Board (2013) Knowledge Transfer. Retrieved November 4, 2013 from: http://www.conference-‐board.org/matureworker/index.cfm?id=2206 UNWTO (2012) Annual Report. Retrieved June 11, 2013 from: http://www2.unwto.org/en/annual-‐reports World Economic Forum (undated) Global Competitiveness Index 2012. Retrieved June 11, 2013 from: http://www.weforum.org/issues/global-‐competitiveness World Trade Organization (2013) International Trade Statistics 2012. Retrieved June 11, 2013 from: http://www.wto.org/english/res_e/statis_e/its2012_e/its2012_e.pdf World Travel & Tourism Council (2013) Economic Impacts 2013 Indonesia. Retrieved June 11, 2013 from: http://www.wttc.org/site_media/uploads/downloads/indonesia2013_1.pdf Yun, D. (2004) Knowledge Management, Annals of Tourism Research Vol. 31(4) 1064-‐1065 Zain, M. & Kassim, N.M. (2012) The influence of internal environment and continuous improvements on firms’ competitiveness and performance. Procedia – Social and Behavioural Sciences 65 (2012) 26-‐32


60

60

APPENDIXES

APPENDIX A – INTERVIEW OVERVIEW

Interviews were executed in a semi-‐structured format with four separate groups of stakeholders. During the interviews, several main aspects were discussed to test the organization’s behavior towards change management and capacity building. The aspect of performance management is also evaluated on the organization’s ability to receive feedback.

Discussion Aspect Specifics

1) Capacity building / capability development Prior to intervention Post intervention Describe the changes 2) Performance management Performance management practices Results management 3) Intervention Is external intervention necessary? 4) Start-‐Stop-‐Grow What can be done differently? What is not necessary? What more is required? In the CEMA Forum discussing the aspect of customer experience management that correlates to the increase of an annual triple bottom line, below are the aspects that were used for discussion to enhance research findings of this case study.

Discussion Aspect Specifics 1) Change management Execution methods, culture 2) Performance management Measurement metrics Recognition & rewards 3) Training Methods of capability development The role of the leader

CBI IE Singapore IHG

Business Support

Organizations

Wee, 120839


61

61

APPENDIX B – LIST OF INTERVIEWS

Stakeholder Group

Contact Company

1 Provider Ester Kruk CBI, Senior Program Manager -‐ ECP 2 Provider Nicole Heidenreich SwissContact, Component Manager

Destination Development 3 Provider Jeanne Lee IE Singapore, Manager Customer Service

Group – GCP 4 Provider Sam Davies Area General Manager, IHG Singapore 5 Provider Duta Alamsyah IHG Singapore, Manager of Operational

Excellence 6 Receiver Chia Yee IHG Singapore, HR Specialist 7 Receiver Kng Suan Holiday Inn Atrium, Quality & Continuous

Improvement Manager 8 Receiver Cyndi Chua InterContinental Singapore, Quality &

Continuous Improvement Manager 9 Receiver Tiorida Hart Holiday Inn Bali, Director of Operational

Excellence 10 Meike Pinaria InterContinental Singapore, Quality &

Continuous Improvement Director 11 Receiver Kadek Bhudaya CBI Bali, Puri Kelapa Garden Cottages,

Operations Manager 12 Receiver Simon Purwa CBI Bali, KCBJ Tours -‐ Owner 13 Receiver Leonardus Nyomang CBI Bali, Flores Exotic Tours -‐ Owner 14 Receiver Wilfred Kong IE Singapore, Mr. Soy Bean – Franchise

Support/Business Development Manager 15 Receiver George Kuek IE Singapore, BreadTalk Group, Co-‐

Founder and Owner 16 Business

Support Organization

Gilda Sagrado Bali Tourism Board – Secretary of BTB

17 Business Support Organization

Jeff Kristianto Bali Export Development Organization – Acting President

18 CEMA Forum

Brendan French Commercial Bank Australia, VP of Customer Experience

19 CEMA Forum

Andrew Sidwell DBS Bank Singapore, VP of Customer Service Experience

20 CEMA Forum

Corentin Roux dit Buisson

Zalora, Head of Data Science

21 CEMA Forum

Rimzie Ismail Dubai Airports, Head of Customer Affairs

Date post:	27-Feb-2018
Category:	Documents
Upload:	dangdung
View:	217 times
Download:	3 times

CauseandEffect - Tourism · PDF fileCauseandEffect!!!! CapacityDevelopment!in!the!Tourism...

Documents