Johan Lindholm - CEO, Silkpath Hotels & Resorts 2017
WEATWORK has equipped me with powerful tools that not only facilitate my transformation but also shift the mindsets of our owners and investors regarding SilkPath's business models, restructuring strategies, and effective leadership.
The most significant contribution from WEATWORK has been the alignment of various elements within the Business Balanced ScoreCard (BSC). While any business can create a BSC, not all can connect the dots to transform a hotel from one business model to another.
With just a one-pager, we use this model in every meeting with our investors to persuade them to make decisions aligned with our long-term and short-term goals, based on the interconnected factors within the BSC.
- See BSC Alignment BEFORE & AFTER by Weatwork below -
About Silkpath
A boutique hotel collection
in Vietnam’s captivating heritage destinations
The Silk Path hotel chain, established in 2010, quickly became one of the most cherished names in Hanoi hospitality. It began with the Silk Path Hotel Hanoi, the first four-star hotel in the Old Quarter. Five years later, we introduced a new concept in the same city: The Silk Path Boutique Hanoi.
We then expanded to two additional heritage cities with grand hotels: The Silk Path Grand Sapa Resort & Spa in 2017 and the Silk Path Grand Hue Hotel & Spa in 2020. Each hotel reflects the unique character of its location. The Sapa resort, nestled in the highlands, offers a vibrant tapestry of ethnic minority cultures, flower gardens, and spectacular mountain views. In Hue, once the imperial capital of Vietnam, our hotel is situated on a heritage street with sweeping river views.
In 2017, a new young owner aimed to elevate the entire chain to international accommodation standards, offering personalized service and enhancing the guest experience. This vision was supported by the onboarding of a new CEO with extensive global hospitality experience from Hilton, Sheraton, and other renowned brands.
WEATWORK.CO was invited to support this transformational effort, focusing on evaluating and recommending organizational redesign and improving manpower quality across the entire hotel chain.
The problem
Short-term goals and long-term goals mixed up
The entire chain was expected to elevate to international accommodation standards, offering personalized service and enhancing the guest experience. Therefore, the customer segment should be shifting from local to international. The key entire business model therefore should be changed accordingly.
However, this vision was barely clarified and communicated among key decision makers. The newly-onboarding CEO with extensive global hospitality experience from Hilton, Sheraton, and other renowned brands also found it difficult to finalise the clear vision with the owner who was torn apart between keeping making the current revenues and investing in the bigger brand identity whileas the resources remained unchanged.
There are two typical intepretation in this misperception. One is the C-level employees either wanted to show owners/investors a great plan to achieve the long-term goals. Another is the owners needed both short-term and long-term goals yet she didn't know how to get there.
After a a few months, either C-level leaders or owners realized the other side needed to improve the ability to communicate the LONG-TERM or SHORT-TERM goals the business plan needs to target, and especially how to achieve the goals.
The solution
Blended top-down & bottom up decision-seeking
If the CEO brought in a very well-structured business plan for long-term development, owners said it is too ambitious or expensive to invest. If CEO came up with a feasible one, it depends on how timely & how consistent owners provided resources for executing the agreed business plan.