Introduction
On the surface, leadership in the hospitality sector has very few distinctive features that make it any different from leadership in any other domain. Indeed, like most other industries, the hospitality sector seeks primarily to promote innovation (Shariff et al., 2020). However, several specific characteristics that make the hospitality sector distinctive from other service areas define the necessity to be particularly resourceful in the choice of leadership approaches. More importantly, the process of change management becomes especially tricky in the context of the hospitality sector given the features in question, the seasonal nature of the demand within the hospitality market being the key one (Shariff et al., 2020). Due to the current leadership change, Marriot has been dealing with a set of particularly challenging issues in redefining its leadership approach while keeping its profit margins increasing (Setiawan et al., 2020). By adopting combination of the transformational, Servant, and Situational Leadership approaches, as well as utilizing Kotter’s Model of Change, Premier Inn will be able to handle the challenges that the current change entails.
Change Management and Leadership
The concept of change management seems fairly self-explanatory at first; however, on further analysis, it may turn out to be more nuanced. Implying controlled alterations within a specific organizational environment, change management suggests introducing improvements into the corporate setting and contributes to enhanced performance (Tang, 2019). As a rule, several change management frameworks are typically used in the organizational environment. These are Lewin’s Freeze-Unfreeze model, Kotter’s 8-Step Model as the extension of Lewin’s approach, McKinsey 7-S model, the ADKAR Model, and Bridge’s model of change (Tang, 2019). Each of the tools allows setting a context for continuous change, thus, guiding an organization to an incremental improvement, leading to planned change. In turn, unplanned change occurs without prior planning, typically implying addressing a sudden issue immediately. Currently, Premier Inn is facing unplanned change due to the rapid alterations in the external environment. Therefore, the organization will need to introduce a framework for addressing unplanned change through the introduction of continuous planned one, which can be implemented with a respective change in leadership.
The process of change management requires an appropriate leadership framework. So far, Premier Inn has been adopting a combination of the Servant approach and the Situational Leadership approaches (Goh and Okumus, 2020). The specified strategy has allowed Premier Inn to remain at the top of the industry by keeping its quality standards, encouraging innovation, and corporate principles followed directly. However, with the introduction of a rapid change that the recent alterations in the company’s functioning in the target market suggest, premier Inn needs to evolve and adjust to the new requirements.
Premier Inn
The connection between leadership and change management becomes indisputable when applying it to the context of Premier Inn. Due to its recent restructuring and the expansion into a larger market, the company has been flung into a temporary crisis, with its framework of the servant leadership in decision-making having become the tool on which the company has been relying for the past decade (Khalimova, 2020). Therefore, Premier Inn must introduce immediate alterations into its performance framework to adjust to the future change; however, without the servant leadership, the specified change becomes early impossible to perform. (Setiawan et al., 2020). Therefore, to resolve the issue, Premier Inn newly appointed leaders need to restructure the current framework for handling change in order to retain homogeneity across the company while aligning with the corporate policies. Specifically, it is vital for the company leaders to develop a vision for change that the servant leadership possessed and ensure that all company members are made fully aware of its goals and expected outcomes. Thus, the chances to keep the results of decision-making aligned with the company’s objectives and standards will remain high.
Indeed, when considering the main problem behind the current shift in the leadership framework within Premier Inn, it will be necessary to direct one to the fact that the past framework represented a servant whose decisions define the course of the company’s development. Indeed, the existing evidence shows that the past framework’s main role would concern generating ideas and shaping employees’ perceptions of their roles and responsibilities (Harnjo et al., 2021). Namely, a recent report indicates that Premier Innis going to experience significant financial changes, which, in turn, are bound to entail alterations in the management approach, particularly, in regard to the extent of agency that staff members will have and the amount of responsibilities that they will need to accept:
Whitbread PLC is proposing to make changes to the management structure of its subsidiary Premier Inn Ltd as part of an initiative to cut costs and fund its approximately £300 million growth plan which includes investing in 42 new hotel and restaurant openings and creating about 1,700 new jobs across Britain in 2019. (“Whitbread proposes Premier Inn management restructuring to fund growth plans,” 2018, para. 1)
Therefore, when considering the current situation at Premier Inn, one will need to take particularly scrupulous notice of the problem of servant leadership disappearing with the company’s transformation. Specifically, Premier Inn will need to prepare for the shift from thee Servant Leadership approach to a new framework while also continuing the policy of innovation that currently keeps Premier Inn at the top of its industry.
Leadership Concepts and Change Management Theories
Leadership
In relation to premier Inn, the Servant Leadership approach and the Situational framework can characterizer its recent framework for functioning in the UK market, as well as the global context. Implying that a strong focus on innovation and a unique understanding of a company’s purpose must guide the organization, the servant approach has allowed Premier Inn to stay at the top of the market, while its Situational framework has helped Premier Inn to adjust not only to the economic environment of the global market, but also to the recent turmoil that the UK environment has experienced with the announcement of Brexit (French, 2018). However, with the further expansion and the emphasis on possible mergers and acquisitions as the mans of striving in the global economy in the future, Premier Inn will require a different approach toward leadership. Specifically, greater focus on individual decision-making in the context of the corporate standards and the ability to promote individual and organizational growth will have to be adopted. It is assumed that the Transformational and Situational Leadership approaches will incite positive change.
Transformational Leadership Model
Simultaneously, Premier Inn will have to pursue another goal of shifting the paradigm of decision-making due to the change in the leadership framework. Specifically, while with the current leadership, the rest of the company members followed the established plan, the current decision-making environment will imply greater flexibility due to the absence of a clearly defined vision. Therefore, most staff members are likely to feel lost and uncertain at first, being highly likely to show significant reluctance in accepting the proposed innovations, particularly, in regard to the new approach of decision-making (Abubakar et al., 2019). Specifically, without an innovative vision to pursue and with greater freedom in decision-making, staff members may develop the fear of making the wrong choice or, on the contrary, engage in decision-making based on their preconceptions and personal beliefs, which may entail unethical decisions (Bousquet et al., 2019). Thus, a framework that will allow employees at Premier Inn to accept change and new responsibilities, while recognizing the fact that the company can survive without the servant leader in question, will have to be applied.
Change Management
Currently, several change management theories exist as the frameworks for encouraging improvement in a particular context. Among the ones that have gained the greatest traction in the context of business and leadership, as well as organizational management, one should name models such as Lewin’s Change Management Model, Kotter’s 8-Step framework, McKinsey’s 7S Model, and Bridges transition model, to name just a few. The specified theories offer the strategies that incentivize change while putting the emphasis on different aspects thereof.
Bridges Transition Model
Examining the situation at Premier Inn closer will prove that the current problem lies significantly deeper than merely allowing the organization to overcome the loss of a good leader. Instead, Premier Inn will need to adjust to the environment where a servant whose ideas have been galvanizing the firm’s performance and the staff members’ engagement is no longer present.
Since substitution is neither possible nor ethically sensible, it is critical to appeal to the staff members in the way that will keep them engaged and motivated. Bridges’ Transition Model as the tool that allows target audiences to reconcile with the loss of the status quo, accept the need for change and innovation, and learn to incorporate new strategies into their performance and decision-making, will be essential in promoting change at Premier Inn (see Appendix A) (Berry and Noller, 2020). Indeed, by definition. Bridges’ Transition Model pays especially close attention to the need for staff members to adjust to the complexities of change, thus, overcoming their resistance and learning not only to survive in the new environment but also strive in it (Da Veiga, 2018). Specifically, the application of Bridges’ Transition Model will imply establishing the rationale for change to employees and explaining their role in the new framework (“Ending”). The next stage suggests offering them training and support when developing the necessary skills, particularly, the ability to analyze internal and external settings to make a decision (“Transition Zone”). Finally, the third step will require exerting control and ensuring that the proposed change is fully integrated (New beginning) (Rosenbaum et al., 2018). Thus, the transfer from uncertainty to commitment will occur at Premier Inn in accordance with Bridges’ Model.
Kotter’s 8-Step Model
Simultaneously, Premier Inn will have to pursue another goal of shifting the paradigm of decision-making due to the change in the leadership framework. Specifically, while with the previous leadership approach, the rest of the company members followed the established plan, the current decision-making environment will imply greater flexibility due to the absence of a clearly defined vision. Therefore, most staff members are likely to feel lost and uncertain at first, being highly likely to show significant reluctance in accepting the proposed innovations, particularly, in regard to the new approach of decision-making (Haas et al., 2020). Specifically, without an innovative vision to pursue and with greater freedom in decision-making, staff members may develop the fear of making the wrong choice or, on the contrary, engage in decision-making based on their preconceptions and personal beliefs, which may entail unethical decisions (Tang, 2019). Thus, a framework that will allow employees at Premier Inn to accept change and new responsibilities, while recognizing the fact that the company can survive without the servant leader in question, will have to be applied. For this reason, Kotter’s 8-Step Model will have to be applied.
Focusing specifically on change as opposed to Bridges’ Model, Kotter’s framework allows embedding the proposed alterations into the company’s organizational culture (see Appendix B). In the context of Premier Inn, Kotter’s Model must be applied by starting with establishing the urgency and importance of altering the current leadership and decision-making frameworks (Harrison et al., 2021). Specifically, the employees must be made aware of the transition to the setting where they will be provided with greater agency while having to adhere to the company’s ethical code and standards completely. After the idea of urgency is planted into the Marriot corporate context, a strong team of managers and staff members who will serve as the agents of change will have to be built. Encouraging the rest of the employees to follow the principles of the decision-making based on the set standards, the company will be able to focus on determining its further course of development. In turn, developing its new vision, Premier Inn will need to retain the focus on innovation while substituting the current concept of the servant approach with another notion that will allow Premier Inn to maintain a strong competitive advantage. Specifically, the new vision and the leadership strategy to be implemented will have to be rooted in focusing on maximizing the comfort of customers and the benefit of all stakeholders involved.
To remove the obstacles as the fifth stage of Kotter’s Model, Premier Inn leaders will need to communicate the key changes by introducing a support system for employees. Apart from the focus on the transition stage supported by Bridges’ model, a communication channel involving the presence and assistance of line managers will have to be built (Laig & Abocejo, 2021). Thus, Premier Inn will keep its staff members engaged and satisfied, preventing resistance to change (Sittrop and Crosthwaite, 2021).
Change Agents in Organizational Culture
Evaluating the approach that Premier Inn has been adopting to the management of its organizational change and the transition to a new leadership framework, one might notice that the company has been lingering with the introduction of the necessary alterations to the organizational culture and the leadership approach. Specifically, while Premier Inn has announced a change in the strategy, it has been quite reluctant in announcing its further focus and the framework for addressing the further organizational management issues. At first glance, the specified approach seems reasonable since it has allowed Premier Inn to focusing the prevention of resistance to future change and, therefore, creating the platform for smooth transition. However, the company lingering with the implementation of actual change and the selection of a distinctive leadership framework that will mark its new business approach indicates Premier Inn’s uncertainty (Shakil, 2018). Therefore, it is vital for the company to determine its further course of development and integrate key change agents into the organizational framework.
Core values, ethical principles, and the corporate vision will serve as essential change agents for Premier Inn. Despite the retirement of its core servant leader, Premier Inn should not abandon its servant approach to promoting change; instead, the company should continue to pursue innovation and introducing creative ways of solving key problems regarding the provision of hospitality services and management of customers’ needs. Instead, to ensure that the company retains its innovative vision, Premier Inn will need to invite all of its members, including managers and employees, to participate in decision-making and the choice of innovative approaches. While each participant will implement change on a single level, the cohesive and collective action that the company members will undertake will allow transitioning from the past leadership toward the new one while continuing to produce innovative solutions. Therefore, managers and especially staff members will serve as critical agents in change management. Line managers will serve the function of intermediaries so that all ideas produced by employees could be heard and integrated into the company’s functioning whenever it seems reasonable. Thus, Premier Inn will be able to continue its performance and keep its competitive advantage, remaining a leader in the hospitality sector.
Culture and Organizational Change
To ensure that organizational change is planted effectively into Premier Inn’s setting, it is vital to ensure that it aligns with the company’s culture and the employees’ cultural perspectives. While the current organizational culture driven by innovation and the focus on the benefit of all stakeholders will be fully compatible with the new leadership approach, the cultural characteristics of some employees may be misaligned with the idea of their active participation in decision-making.
Conclusion
Over the years of its performance in the UK and global markets, Premier Inn has built a reputation of a company geared toward innovation by servant leadership. However, with the recent changes in its functioning, the organization is likely to experience significant challenges adjusting to the environment of the global competition. For this reason, Kotter’s 8-Step Model, Transformational Leadership, Kotter’s Change Model, and the Situational approach must be used to promote active change.
References
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Appendices
Appendix A: Bridges’ Transition Model
Appendix B: Kotter’s Model of Change
