Stages of Travel Management Excellence

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Stages of Travel Management Excellence
Strategies for Advancing Your Travel Programme
Presented by Scott Gillespie, CEO
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Todays Agenda

• Credentials
• The Stages of Excellence Framework
• Application and Limitations
• Elements and Criteria
• Discussion

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Scott Gillespies Background

• Founded Travel Analytics in 1999
• Developed TANGO and BRAVO for airline sourcing
  projects
• Analyzed in excess of 10 Billion of annual air
  spend
• Recipient of ACTEs Industry Professionalism and
  Distinguished Fellow honors
• Named by Business Travel News as one of the
  travel industrys most influential executives
• A.T. Kearneys expert in strategic sourcing of
  travel suppliers from 1994 -1999
• MBA, University of Chicago

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Past and Current Clients

• AXA
• Capital One
• Coca-Cola
• Chevron
• Compaq
• DaimlerChrysler
• Dell Computer
• John Deere
• Ernst Young
• ExxonMobil
• Ford

• Hewlett-Packard
• Hoffman LaRoche
• Invensys
• International Monetary Fund
• Lockheed Martin
• Microsoft
• Lucent Technologies
• Proctor Gamble
• Nortel Networks
• PricewaterhouseCoopers
• Saint Gobain

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Stages of Excellence For Travel Management
The Framework
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How Many Good Travel Programmes Are Out There?
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How Do Travel Programs Evolve?
World class program Great support, Excellent resu
lts
By taking a series of prioritized and often
difficult steps
Advanced travel program good support
Basic travel program limited support
No real travel program mostly fighting fires
RightWhat are those steps, exactly?
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The Answers Are Not ClearBut The Method Is

• The travel/procurement team must agree on a basic
  strategy and key goals
• What is realistically achievable?
• What does our company expect?
• Requires a rigorous assessment of current
  program, practices, processes and stakeholders
• Managers must prioritize costs and benefits of
  each potential improvement

Managers need a useful framework
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Stages of Excellence Framework
Stage 2
Stage 4
Stage 3
Stage 1
Full-time Written, low to moderate
enforcement Occasional bursts of
involvement Keep the noise down Keep making
promises
Functional specialists Regular business case
reviews Engaged and supportive Support the
Business Strategic sourcing
Category specialists Moderate to strong
enforcement Predictable support Operational
excellence Focus only on price
Better
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14 Major Dimensions

• Suppliers
• Transient Management
• Group Management
• Data
• Travelers
• Demand Management
• Travel Organization

• Senior Management
• Travel Strategy
• Goals
• Travel Policy
• Feedback
• Controls
• Procurement

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Organized Into Four Quadrants
Roadmap
Engine
Procurement Suppliers Transient Management Groups
Management Data
Senior Management Travel Strategy Goals
Steering Wheel
Drivers
Travelers Demand Management Travel Organization
Travel Policy Feedback Controls
Similar to a Balanced Scorecard
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Three Levels of Analysis
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Each Element and Dimension Is Scored
Can score 2.5 or 3.3 etc.
Average Goal Score 2.0
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Stages of Excellence For Travel Management
Application and Limitations
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Weak Points Can Be Addressed
Is this a priority? Will it clearly help us?
What goals should we use?
How are we going to measure them?
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Scores Can Be Summarized
Engine
Roadmap
Steering Wheel
Drivers
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Priorities Can Be Set
Priority 2
Priority 1
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Entire Programs Can Be Compared
Stage 4
Stage 3
Stage 2
Stage 1
A B C D E F G
Company Codes
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And More Importantly Improved!
Goal
Today
Stage 4
Stage 3
Stage 2
Stage 1
A B C D E F G
Company Codes
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How Is This Different From Benchmarking?

• Most benchmarking statistics are descriptive
• Our average ticket price is 375 vs. peer
  groups 344
• Our travel agency configuration is a single
  reservation center 63 of our peers use on-site
  agencies
• Descriptive statistics are not often prescriptive
• Should your average ticket price be lower?
• Should you use on-site agencies?

Stages of Excellence are designed to be
prescriptive
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Limitations to Stages Of Excellence

• The Dimensions, Elements and Criteria were
  developed by Travel Analytics
• There are many other possible views
• Requires honest self-assessment
• Scoring depends on assigned weights
• The path to improvement is not always obvious
• Must often ask What do we need to do to improve
  this score?

Stages of Excellence is a rigorous and objective
but not perfect diagnostic tool
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Stages of Excellence for Travel Management
Elements and Criteria
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Roadmap
Engine
Procurement Suppliers Transient Management Groups
Management Data
Senior Management (4) Travel Strategy (6) Goals
(8)
Steering Wheel
Drivers
Travelers Demand Management Travel Organization
Travel Policy Feedback Controls
( ) Number of Elements
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Senior Management
Stage 1
Stage 2
Stage 3
Stage 4
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Travel Strategy, part 1
Stage 1
Stage 2
Stage 3
Stage 4
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Travel Strategy, part 2
Stage 1
Stage 2
Stage 3
Stage 4
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Goals, part 1
Stage 1
Stage 2
Stage 3
Stage 4
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Goals, part 2
Stage 1
Stage 2
Stage 3
Stage 4
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Roadmap
Engine
Procurement Suppliers Transient Management Groups
Management Data
Senior Management (4) Travel Strategy (6) Goals
(8)
Steering Wheel
Drivers
Travelers Demand Management Travel Organization
Travel Policy (3) Feedback (8) Controls (4)
( ) Number of Elements
30
Travel Policy
Stage 1
Stage 2
Stage 3
Stage 4
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Feedback, part 1
Stage 1
Stage 2
Stage 3
Stage 4
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Feedback, part 2
Stage 1
Stage 2
Stage 3
Stage 4
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Controls
Stage 1
Stage 2
Stage 3
Stage 4
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Roadmap
Engine
Procurement (7) Suppliers (4) Transient
Management (5) Groups Management (4) Data (5)
Senior Management (4) Travel Strategy (6) Goals
(8)
Steering Wheel
Drivers
Travelers Demand Management Travel Organization
Travel Policy (3) Feedback (8) Controls (4)
( ) Number of Elements
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Procurement, part 1
Stage 1
Stage 2
Stage 3
Stage 4
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Procurement, part 2
Stage 1
Stage 2
Stage 3
Stage 4
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Suppliers
Stage 1
Stage 2
Stage 3
Stage 4
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Transient Management
Stage 1
Stage 2
Stage 3
Stage 4
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Group Management (GM)
Stage 1
Stage 2
Stage 3
Stage 4
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Data / Information
Stage 1
Stage 2
Stage 3
Stage 4
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Roadmap
Engine
Procurement (7) Suppliers (4) Transient
Management (5) Groups Management (4) Data (5)
Senior Management (4) Travel Strategy (6) Goals
(8)
Steering Wheel
Drivers
Travelers (4) Demand Management (4) Travel
Organization (4)
Travel Policy (3) Feedback (8) Controls (4)
( ) Number of Elements
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Travelers
Stage 1
Stage 2
Stage 3
Stage 4
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Demand Management
Stage 1
Stage 2
Stage 3
Stage 4
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Travel Organization
Stage 1
Stage 2
Stage 3
Stage 4
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Where Do We Go From Here?

• Score your program
• Should generate deep discussions and frank
  assessments
• Many companies will not like their scores
• Organize confidential comparisons
• Travel management companies or consultants can
  lead these efforts
• Develop specific goals and priorities for your
  program
• Measure results year to year

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We Can Go From Here
50?
25?
20?
5?
Poor
Fair
Good
Great
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To Here!
50
25
20
5
Stage1
Stage 2
Stage 3
Stage 4
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Thank You!
For a copy of this presentation and the
accompanying scoring tool, please visit our Free
Tools page at www.travelanalytics.com Or send an
e-mail to Scott.Gillespie_at_travelanalytics.com