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Harrah’s Entertainment, Inc.: Rewarding Our People Harrah’s Entertainment, Inc.: Rewarding Our People Harrah’s Entertainment, Inc.: Rewarding Our People Agenda • • • • • • • • • Background Front Burner Issue External Environment Internal Environment HR Gap Analysis Strategic Issues Facing The Firm Action Research Model Conclusion References Harrah’s Entertainment, Inc.: Rewarding Our People Background • Harrah’s History – Fortune 500 public gaming corporation – Headquarters based in Paradise, Nevada – Annual revenues of $8.9 billion • New operating strategy in 1997 – From service driven to customer focus • Key Personnel: – Phil Satre becomes President / COO in 1991 & CEO in 1994 – Gary Loveman was hired COO / CMO in 1999 & current CEO since 2004 – Marylin Winn, offered VP of HR in 1999 (Source: Delong & Vijayaraghavan, 2003) (Source: Wikipedia, 2013) Harrah’s Entertainment, Inc.: Rewarding Our People Front Burner Issue How to motivate employees with current incentive plan or newly designed programs to improve customer service metrics at each of Harrah’s establishments? “How you change the working premise of our people from being controlled by the limitations to realizing their possibilities” By Gary Loveman, Chief Operating Officer, Harrah’s Entertainment, Inc (Source: Delong & Vijayaraghavan, 2003) Harrah’s Entertainment, Inc.: Rewarding Our People External Environment: Key Success Factors • • • • • • • Service Differentiation Customer Service Brand Recognition Customer Loyalty Attractions Marketing Number & Type of Game Offerings Physical Environment & Atmosphere Harrah’s Entertainment, Inc.: Rewarding Our People External Environment: PEST Analysis Political & Legal Economic Social/Cultural Technological • State regulations influence who can gamble, where, and what types • Fluctuations can impact business • Labor market demographics • September 11 • Information Management Systems • Player equipment Harrah’s Entertainment, Inc.: Rewarding Our People External Environment: Porter’s Forces Substitutes Suppliers Buyers New Entrants Rivalry Moderate •Internet gambling/ gaming •Resort vacations •Cruises Weak •Low switching costs •Harrah’s buys in high volumes Moderate •Consumers •Price sensitivity •Economic conditions Weak-Moderate •High barriers to entry •Economic conditions • Regulations •Highly profitable industry Strong •MGM Mirage •Park Place •Strong brand recognition Harrah’s Entertainment, Inc.: Rewarding Our People Internal Environment Strengths Competitive Mindset Rewarding Hard Work Bbmbnmm,m,mjkj Lowering Turnover Increased Customer Satisfaction Opportunities Re-evaluate Incentive Program Create Ties to Operating Income Set targets for Customer Satisfaction Solicit Feedback From Employees Weakness S W O T High Expectations Impacted Psychological Contract No Ties to Operating Income Competitors Copying Strategy Threats Maintaining a Competitive Advantage Intense Competition Legal and Regulatory Environment Online Gaming (Source: Delong & Vijayaraghavan, 2003) (Source: Datamonitor , 2007) Harrah’s Entertainment, Inc.: Rewarding Our People HR Gap Analysis • Harrah’s HR Gap Analysis – Is a tool used to compare actual employee satisfaction with potential employee satisfaction – Is Harrah’s HR strategy bringing the company to the next level? • How effective is Harrah’s HR Strategy? • Where does Harrah’s HR strategy want to be in the future?“ "My job is to make money for Harrah's Entertainment by creating a great climate for customers and employees.“ By Marilyn Winn, VP of HR, Harrah’s Entertainment, Inc (Source: Abowitz, 2010) Harrah’s Entertainment, Inc.: Rewarding Our People HR Gap Analysis • How effective is Harrah’s HR Strategy? – – – – – Reduce the turnover rate Implemented job application and interview processes A new reward system was instituted The entire property had to increase its scores to benefit To maximize customer’s positive experiences • Where does Harrah’s HR strategy want to be in the future? – – – – Needs to motivate, encourage, solicit buy-in from all employees Remove blinders from decision-making by self-analyzing the strategy Must develop a feedback loop mechanism Implement a reward system that would recognize employees’ contribution 10 (Source: Young, 2011) Harrah’s Entertainment, Inc.: Rewarding Our People Strategic Issues Facing The Firm • How to implement Harrah’s customer relationship strategy? • How to maintain a competitive advantage by utilising key performance indicators in the gaming industry? • How to implement a gain-sharing program that would recognize employees contribution based on the achieved target? • How does Harrah’s decrease its volatility by predominantly being in the in the U.S market? 11 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 1: Gathering Data Type of Information Needed • How employees view management • What motivates employees • Who wants to learn what • Why headquarters and operations not get along how to integrate the two cultures How to get the Info • Employee and management surveys • Observation • Interviews • Company document reviews • Anonymous employee comment drop boxes 12 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 2: Feedback The “What” of Feedback • Important findings from data gathering such as: – Management’s view of themselves vs Employee’s view – Potential causes of problems – Correlations between customer service and financials The “How” of Feedback – – – – Comparison charts Compilation of best and worst sample surveys and interview notes “Sandwich Critiquing” Comments and ideas always welcome (open communication) 13 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 3: Diagnosis • Management acts strictly like management leadership? • Employees feel demotivated by compensation system difficulty reaching incentives • Employees want intrinsic as well as extrinsic rewards; i.e Pride in company and monetary rewards • Headquarters and management are decreasing productivity due to lack of communication and collaboration 14 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 4: Action Planning • Communicate to everyone why, how, and when changes are going to occur • Hire new employees that fit learning culture • Implement job rotation and job shadowing to encourage leadership potential • Succession planning • Create realistic performance objectives • Provide leadership training to management • Educate operations personnel and headquarters personnel 15 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 5: Action Taking/ Interventions Organizational Learning Interventions – Encourage learning as part of culture – Job rotation & job shadowing • Disciplines to Becoming a Learning Organization Personal Mastery Building a Shared Vision Mental Models Team Learning Systems Thinking (Source: Senge, 1990) 16 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 5: Action Taking/ Interventions Structural Interventions Geared Towards Becoming a Learning Organization • Define performance objectives – Goal setting interventions: instructs employees about the goal setting process and how to set specific goals (Source: Saks & Haccoun, 2010) • Have employees help create these objectives – Self-coaching: reflection of one’s own performance to establish performance maintenance and improved goals – Upward feedback: providing employees with data on the frequency with which they displayed desired behaviors (Source: Saks & Haccoun, 2010) 17 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 5: Action Taking/ Interventions Management Development Interventions • Educate managers on their functions: Controlling (less) Organizing Planning Leading (Emphasis) • • • • Interpersonal Skill Assessment Interpersonal Skill Learning Interpersonal Skill Practice Interpersonal Skill Transfer (Source: Saks & Haccoun, 2010) 18 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 6: Evaluation • Follow up with all managers and employees • Communicate : (open communication) – Outcomes on a daily basis  debriefing at end of shifts/ workdays – Debriefing at end of week, month, year – Areas still in need of improvement – Take any suggestions on how to improve – Outline where improvements have been made 19 Harrah’s Entertainment, Inc.: Rewarding Our People Action Research Model - Step 6: Evaluation Monitor and Evaluate • • • • • • • Productivity Revenues Employee Turnover/Retention Rates Customer Satisfaction- Surveys Employee Satisfaction- Surveys Compare employee comment box items Change where needed 20 Harrah’s Entertainment, Inc.: Rewarding Our People Conclusion • At the heart of any company’s successful strategies, employees are always the key • Employees are the ones who carry out the plans crafted by upper management • Not enough to incentivize employees to partake in organizational strategies • Corporate strategic plans must have a set target 21 Harrah’s Entertainment, Inc.: Rewarding Our People Questions? 22 Harrah’s Entertainment, Inc.: Rewarding Our People References Abowitz, R (2010, May 25) The Movable Buffet: Rallying with Marilyn Winn Retrieved March 21, 2013, from Los Angeles Times: http://articles.latimes.com/2010/may/25/entertainment/la-ca-vegas-20100523 Business Week (2006) Top 10 Casino Racetracks in the U.S Retrieved March 19, 2013, from http://images.businessweek.com/ss/07/06/0604_racetracks/source/8.htm Datamonitor (2007, January) Harrah’s Entertainment, Inc.: Company Profile Retrieved March 21, 2013, from Datamonitor : https://wiki.umn.edu/pub/Carter/WebHome/Harrahs.pdf Delong, T., & Vijayaraghavan, V (2003) Harrah’s Entertainment, Inc.: Rewarding Our People Boston: Harvard Business School Publishing Kim, R ( 2012, July 31) Info 563 Reflection: Harrah's Retrieved March 19, 2013, from http://kimdongoug.blogspot.ca/2012/07/info-563-reflection-harrahs.html Saks, A., & Haccoun, R (2010) Managing performance through training and development 5th Edition Toronto: Nelson Education Seeklogo (2008) Harrah's - Logo Vector Download Retrieved March 19, 2013 Senge, P (1990) The fifth discipline: The art and practice of the learning organization New York: Doubleday Wikipedia (2013, March 18) Caesars Entertainment Corporation Retrieved March 20, 2013, from Wikipedia, The Free Encyclopedia: http://en.wikipedia.org/wiki/Caesars_Entertainment_Corporation Young, M.-L (2011, April 27) Harrah’s Entertainment, Inc.: Rewarding our People Retrieved March 21, 2013, from Word 23 Press: http://michaellouisyoung.wordpress.com/2011/04/07/harrahs-entertainment-inc-rewarding-our-people/ [...]... (2013, March 18) Caesars Entertainment Corporation Retrieved March 20, 2013, from Wikipedia, The Free Encyclopedia: http://en.wikipedia.org/wiki/Caesars _Entertainment_ Corporation Young, M.-L (2011, April 27) Harrah’s Entertainment, Inc. : Rewarding our People Retrieved March 21, 2013, from Word 23 Press: http://michaellouisyoung.wordpress.com/2011/04/07 /harrahs- entertainment- inc- rewarding-our-people/... the key • Employees are the ones who carry out the plans crafted by upper management • Not enough to incentivize employees to partake in organizational strategies • Corporate strategic plans must have a set target 21 Harrah’s Entertainment, Inc. : Rewarding Our People Questions? 22 Harrah’s Entertainment, Inc. : Rewarding Our People References Abowitz, R (2010, May 25) The Movable Buffet: Rallying with... http://articles.latimes.com/2010/may/25 /entertainment/ la-ca-vegas-20100523 Business Week (2006) Top 10 Casino Racetracks in the U.S Retrieved March 19, 2013, from http://images.businessweek.com/ss/07/06/0604_racetracks/source/8.htm Datamonitor (2007, January) Harrah’s Entertainment, Inc. : Company Profile Retrieved March 21, 2013, from Datamonitor : https://wiki.umn.edu/pub/Carter/WebHome /Harrahs. pdf Delong, T., &... improvements have been made 19 Harrah’s Entertainment, Inc. : Rewarding Our People Action Research Model - Step 6: Evaluation Monitor and Evaluate • • • • • • • Productivity Revenues Employee Turnover/Retention Rates Customer Satisfaction- Surveys Employee Satisfaction- Surveys Compare employee comment box items Change where needed 20 Harrah’s Entertainment, Inc. : Rewarding Our People Conclusion • At... notes “Sandwich Critiquing” Comments and ideas always welcome (open communication) 13 Harrah’s Entertainment, Inc. : Rewarding Our People Action Research Model - Step 3: Diagnosis • Management acts strictly like management leadership? • Employees feel demotivated by compensation system difficulty reaching incentives • Employees want intrinsic as well as extrinsic rewards; i.e Pride in company and monetary... https://wiki.umn.edu/pub/Carter/WebHome /Harrahs. pdf Delong, T., & Vijayaraghavan, V (2003) Harrah’s Entertainment, Inc. : Rewarding Our People Boston: Harvard Business School Publishing Kim, R ( 2012, July 31) Info 563 Reflection: Harrah's Retrieved March 19, 2013, from http://kimdongoug.blogspot.ca/2012/07/info-563-reflection -harrahs. html Saks, A., & Haccoun, R (2010) Managing performance through training and development... Harrah’s Entertainment, Inc. : Rewarding Our People Action Research Model - Step 5: Action Taking/ Interventions Organizational Learning Interventions – Encourage learning as part of culture – Job rotation & job shadowing • 5 Disciplines to Becoming a Learning Organization 1 2 3 4 5 Personal Mastery Building a Shared Vision Mental Models Team Learning Systems Thinking (Source: Senge, 1990) 16 Harrah’s Entertainment, ... Planning Leading (Emphasis) • • • • Interpersonal Skill Assessment Interpersonal Skill Learning Interpersonal Skill Practice Interpersonal Skill Transfer (Source: Saks & Haccoun, 2010) 18 Harrah’s Entertainment, Inc. : Rewarding Our People Action Research Model - Step 6: Evaluation • Follow up with all managers and employees • Communicate : (open communication) – Outcomes on a daily basis  debriefing at... how to integrate the two cultures How to get the Info • Employee and management surveys • Observation • Interviews • Company document reviews • Anonymous employee comment drop boxes 12 Harrah’s Entertainment, Inc. : Rewarding Our People Action Research Model - Step 2: Feedback The “What” of Feedback • Important findings from data gathering such as: – Management’s view of themselves vs Employee’s view...Harrah’s Entertainment, Inc. : Rewarding Our People Strategic Issues Facing The Firm • How to implement Harrah’s customer relationship strategy? • How to maintain a competitive advantage by utilising key performance indicators