Stages of Excellence Industry report - Gillespie's Guide ... · •Previously A.T. Kearney‟s...
Transcript of Stages of Excellence Industry report - Gillespie's Guide ... · •Previously A.T. Kearney‟s...
Stages of Travel Management Excellence
TRAVEL ANALYTICS INC
Industry Scores and Future Goals
Presented by Scott Gillespie, CEO
Scott Gillespie’s Background
• Founder of Travel Analytics
– Developed TANGO™ and BRAVO™ for negotiating and managing airline supplier contracts
– Analyzed in excess of $10 Billion of annual air spend
– Recipient of ACTE‟s Industry Professionalism and Distinguished Fellow honors
– Named by Business Travel News as one of the travel industry‟s most influential executives
• Previously A.T. Kearney‟s expert in strategic sourcing of travel suppliers
• MBA, University of Chicago
– Concentration in Statistics
Some Past and Current Clients/Teachers
– AXA
– Baxter
– Capital One
– Coca-Cola
– Chevron
– Compaq
– DaimlerChrysler
– Dell Computer
– John Deere
– Ernst & Young
– ExxonMobil
– Ford
– Hewlett-Packard
– Hoffmann La Roche
– Invensys
– International Monetary Fund
– Lockheed Martin
– Microsoft
– Lucent Technologies
– Procter & Gamble
– Nortel Networks
– PricewaterhouseCoopers
– Saint-Gobain
– US Bank
Today’s Agenda
• Framework, Methods, Limitations and Benefits
• Who Participated and What Are Their Scores?
• A Closer Look
• The Road To Glory
• What‟s Working, What‟s Not?
• Where Are We Headed?
• Is Bigger Better?
• What‟s Needed?
• Individual Reports
• Appendix
Some Appetizers:
• Only 6% of firms rate their programs currently as
Stage 4 (the best)
• 98% of firms want to be either Stage 3 or Stage 4
• The highest-scoring dimension? Senior Management
• The lowest-scoring dimension? Groups & Meetings
• The two most important dimensions are Senior
Management and Travel Policy – True or False?
Stay Tuned!
Framework, Methods,
Limitations and Benefits
What is the Stages of Travel Management Excellence Framework?
No real travel
program; mostly
fighting
fires
Basic travel
program;
limited support
Advanced travel
program;
good support
World class
program;
Great support,
Excellent
results
Stage 1
Stage 2
Stage 3
Stage 4
A set of dimensions
and criteria with
prescriptive power
Method for Conducting the Study
• ACTE and Travel Analytics solicited a wide variety of participants
– Drawn from the ACTE Global membership base
– Drawn from Non-ACTE travel and procurement managers
• All surveys were self-scored – no 3rd party validation
• Data coded and analyzed by Travel Analytics
• 63 Elements assigned to 14 Dimensions, in turn assigned to 4 Quadrants
– Each Quadrant given equal weight
– Each Dimension given equal weight within its Quadrant
– Each Element given equal weight within its Dimension
• Each respondent given equal weight; i.e, not weighted by air spend
14 Major Dimensions
• Controls
• Data
• Demand Management
• Feedback
• Goals
• Groups and Meetings
• Procurement
• Senior Management
• Suppliers
• Transient Management
• Travelers
• Travel Organization
• Travel Policy
• Travel Strategy
Each Dimension Broken Down Into 63 Elements Dimension Elements
Controls Exceptions to travel policy
Supplier preferencing at the point of sale
Ability to move business away from key
suppliers
Ability to pass travel costs to business units,
divisions, etc.
Data
Ability to consolidate enterprise-wide travel
spending
Airline data
Hotel data
Agency data
Other information needed for managing travel
Demand
Mgmt.
Ability to eliminate unnecessary trips before
they are taken
Guidelines for evaluating the need for a trip
System for evaluating a trip's value
Promotion of non-travel alternatives
Feedback Traveler Satisfaction
Travel Policy Compliance
Senior Management Satisfaction
Self-Booking Adoption
Contract Compliance
Financial Performance
Dimension Elements
Goals Travel Policy Compliance
Senior Management Satisfaction
Agency performance
Self-Booking Adoption
Contract Compliance
Supplier Performance
Travel Department's Financial Performance
Groups and
Meetings Ability to measure G/M spend
Communication between internal GM planners
Centralized visibility of G/M events
Processes for planning, sourcing and
managing G/M events
Procurement Tender or RFP process
Analysis of pricing
Analysis of quality
Analysis of risk (implementation, contract
cancellation, traveler dissatisfaction)
Travel's integration with Procurement
Basis for awarding contracts
Legal Department's input
Dimensions and Elements, Cont’d. Dimension Elements
Senior Mgmt. Understanding of Travel Management
Ownership of Travel Management
Level of Support and Enforcement
Utilization of a Travel Council
Suppliers Delivery of the expected level of service
Resolution of traveler complaints and other
operational issues
Current pricing
Transient
Mgmt. Agency consolidation
Ability to control the point of sale
Agency service quality
Agency productivity
Agency as a trusted advisor/consultant
Travel
Organization
Ability to execute major new travel policies and
initiatives
Staffing
Recruiting
Career Advancement
Dimension Elements
Travel Policy Quality of travel to be purchased
Processes to be used for purchasing travel
Typical consequences of not complying with a
key travel policy
Travel
Strategy Travel viewed as a factor for business success
Travel viewed as a factor in employee
productivity and retention
Success at budgeting travel costs
Success in tracking and reporting travel cost
savings
Travelers
Awareness of travel policies and preferred
suppliers
Compliance with key travel policies
Input on travel policies and suppliers
Opinion of travel department
(Deleted)
Definitions were not provided
Two Levels of Analysis
Dimensions:
Feedback
Traveler
Satisfaction
Travel Policy
Compliance
Elements:
1 2 3 4
1 2 3 4
Criteria
Better
Little
or
none
sought
1 2 3 4
1 2 3 4
Stage 1 Stage 4
Obtained
irregularly
Obtained
regularly
Clearly
drives
future
actions
Average Feedback Score: 2.0
Current Score &
Goal Score
The Study Focused on 3 Measures
1. Current Score
(What‟s Working,
What‟s Not)
2. Goal Score
(Where Are We
Headed)
Scores are reported from the group‟s Mean Average score
Overall Industry Scores
1.5
2.0
2.5
3.0
3.5
4.0
Current Score Goal Score
SO
E S
core
3. Gap to Goal
Some Limitations and Benefits Of This Study
Limitations:
• First application of Stages Of Excellence
• Scores were not validated
• Not a random sampling of the industry
Benefits:
• Broad and neutral scoring mechanism
• Provides a common lens for assessing travel programs
• Facilitates frank discussions and goal-setting
Who Participated and
What Are Their Scores?
Partial Participant List ABB
Agilent Technologies
Allied Domecq
AMS
Applera
Avaya
Baxter
Bertelsman
BP
Canadian Pacific
Chiron
Coca-Cola Enterprises
ConAgra
Deloitte & Touche
84 participants with $4.5 Billion in annual air spend
Eli Lilly
Ericsson
Ernst & Young
FedEx
Franklin Templeton
Ingersoll-Rand
Inter IKEA
KPMG
Lucent
Microsoft
Nike
Novo Nordisk
ON Semiconductor
Oracle
Parker Hannifin
Pharmacia
Praxair
Procter & Gamble
Schlumberger
Seagate Technology
SICPA Group
Solvay
Swift
UCLA
United Technologies
US Bank
Washington Mutual
Xerox
Key Demographics of Participants
Job Title Distribution
12%
15%
8%
64%
Travel Operations and Management, including
Procurement
Travel Procurement
Procurement of Travel and other categories
Other
Spend Distribution
Large
26%Small
35%
Medium
39%
Small is < $15MM
Medium is $15MM to less than $50MM
Large is $50MM or more
2002 Annual Air Spend
Sample Size = 84 Participants
Region Distribution
Europe/N
America
12%
Europe
6%
North
America
82%
Region from which the
majority of travel
originates
How Did We Score? • Very close to the 2.5 mid-point for Overall Current Score
• Most firms aspire to one full higher stage of excellence
Overall Industry by Stages
43%
50%
46%
52%
0%
20%
40%
60%
80%
100%
Current Stage Goal Stage
Stage 1 (0.5 - 1.4) Stage 2 (1.5 - 2.4)
Stage 3 (2.5 - 3.4) Stage 4 (3.5 - 4.5)
Overall Industry Scores
2.6
3.6
1.5
2.0
2.5
3.0
3.5
4.0
Current Score Goal Score
SO
E S
core
Are We Different by Spend? • At first glance, no obvious difference based on program size
• More Large programs did better; Medium programs have higher goals
Overall Industry Scores by Spend
2.72.5
2.7
3.53.6
3.5
1.5
2.0
2.5
3.0
3.5
4.0
Small Medium Large
SO
E S
core
Current Score Goal Score
Stages by Spend
38%
52%
36%
55%39%
59%
59%
36%
48%
48%41%
64%
0%
20%
40%
60%
80%
100%
Sm
all
Me
diu
m
Larg
e
Sm
all
Me
diu
m
Larg
e
Current Goal
Are We Different by Region?
• “Split” programs appear strongest, but…
Non-North American sample sizes are too small to be meaningful
Overall Industry Scores by Region
2.62.4
2.8
3.6 3.53.7
1.5
2.0
2.5
3.0
3.5
4.0
Nort
h
Am
erica
Euro
pe
Euro
pe
/No
rth
Am
erica
SO
E S
core
Current Score Goal Score
Stages by Region
44%60%
30%
49%
40%
60%
47%60%
30%
10%
51%40%
70%
0%
20%
40%
60%
80%
100%
N
Am
eri
ca
Eu
rop
e
Eu
rop
e/N
Am
eri
ca
N
Am
eri
ca
Eu
rop
e
Eu
rop
e/N
Am
eri
ca
Current Goal
A Closer Look
The Study Drew a Broad Sample • Fairly well-balanced distribution
• Indicates the scales, criteria and sample are reasonable
Distribution of Average Scores
0
2
4
6
8
10
12
14
1.3
to 1
.5
1.5
to 1
.7
1.7
to 1
.9
1.9
to 2
.1
2.1
to 2
.3
2.3
to 2
.5
2.5
to 2
.7
2.7
to 2
.9
2.9
to 3
.1
3.1
to 3
.3
3.3
to 3
.5
3.5
to 3
.7
Nu
mb
er
of
Re
sp
ons
es
Scale‟s Mid-Point
Who’s Best In Class? • The top 25% of all respondents based on Current Scores were
assigned as Group A; the other 75% were assigned as Group B
• Group A‟s average size = $71MM; half are larger than $35MM
• Group B‟s average size = $51MM, half are larger than $21MM
Overall Group A and B Scores
3.3
2.4
3.83.5
1.5
2.0
2.5
3.0
3.5
4.0
Group A Group B
Current Score Goal Score
Overall Group A and B Stages
57%76%
41%24%
0%
20%
40%
60%
80%
100%
Group A Group B
Stage 1 Stage 2 Stage 3 Stage 4
The Road To Glory
How Do “B” Programs Get To Be “A” Programs?
No real travel
program; mostly
fighting
fires
Basic travel
program;
limited support
Advanced travel
program;
good support
World class
program;
Great support,
Excellent
results
Stage 1
Stage 2
Stage 3
Stage 4
By taking a series of prioritized
and often difficult steps
Let’s Look At What We Can Control…
Suppliers
Demand Management
Groups / Meetings
Senior Management
Transient Mgmt.
Data
Travelers
Travel Strategy
Feedback
Controls
Travel Organization
Travel Policy
Procurement
Goals
…And What’s Most Critical
Travel Manager‟s Degree of Control Over the 14 Dimensions
Low High Moderate
Why Are These “Big Six” The Most Critical?
• Senior Management
– Clearly necessary, but not sufficient
• Travel Policy
– Critical for controlling traveler behavior
• Transient Management
– The heart of delivering a managed travel program
• Procurement
– Smart sourcing means big savings
• Data
– The building blocks of business decisions
• Travel Organization
– Good programs are built by good people
Why Are These Dimensions Not As Critical?
• Suppliers
– Selected by the travel organization
• Travelers and Travel Strategy
– Good scores are more the result of a good program, rather
than the cause
• Control, Goals and Feedback
– A function of the travel organization
• Demand Management and Groups/Meetings
– Often not in scope of Travel‟s responsibility
Important Dimensions, Yes – but Not on the Critical Path
Are Any of the “Big 6” More Critical Than Others?
• Senior Management
• Travel Policy
• Transient Management
• Procurement
• Data
• Travel Organization
Necessary Dimensions
(Understands and Owns Travel, Level of Support)
Travel Org., Data
Senior Mgmt., Feedback,
Travel Org., Data
Suppliers, Control, Travel
Org., Data
Data, Feedback
Suppliers, Travel Org.
Senior Mgmt. - Maybe
What’s Working, What’s Not
Current Score Analysis
Group A vs. Group B
Both Groups Emphasize Senior Mgmt., Procurement , Transient Management & Policy
Low Control Moderate Control High Control
Current Score
Overall, Group A
2.7
2.9
3.1
3.2
3.2
3.3
3.3
3.3
3.4
3.4
3.4
3.5
3.5
3.7
1.5 2.0 2.5 3.0 3.5 4.0
Groups/Mtgs.
Demand Mgmt.
Suppliers
Data
Controls
Feedback
Goals
Procurement
Travel Org.
Travel Policy
Transient Mgmt.
Travel Strategy
Travelers
Senior Mgmt.
Current Score
Overall, Group B
1.8
1.9
2.1
2.3
2.4
2.4
2.4
2.5
2.5
2.5
2.5
2.7
2.7
2.7
1.5 2.0 2.5 3.0 3.5 4.0
Demand Mgmt.
Groups/Mtgs.
Data
Travel Org.
Feedback
Goals
Suppliers
Travel Strategy
Travel Policy
Travelers
Controls
Transient Mgmt.
Procurement
Senior Mgmt.
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Data
Transient Mgmt.
Travel Org.
Travel Policy
Procurement
Senior Mgmt.
Data
Current Score
Overall, Group B
1.8
1.9
2.1
2.3
2.4
2.4
2.4
2.5
2.5
2.5
2.5
2.7
2.7
2.7
1.5 2.0 2.5 3.0 3.5 4.0
Demand Mgmt.
Groups/Mtgs.
Data
Travel Org.
Feedback
Goals
Suppliers
Travel Strategy
Travel Policy
Travelers
Controls
Transient Mgmt.
Procurement
Senior Mgmt.
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Data
Current Score
Overall, Group A
2.7
2.9
3.1
3.2
3.2
3.3
3.3
3.3
3.4
3.4
3.4
3.5
3.5
3.7
1.5 2.0 2.5 3.0 3.5 4.0
Groups/Mtgs.
Demand Mgmt.
Suppliers
Data
Controls
Feedback
Goals
Procurement
Travel Org.
Travel Policy
Transient Mgmt.
Travel Strategy
Travelers
Senior Mgmt.
Transient Mgmt.
Travel Org.
Travel Policy
Procurement
Senior Mgmt.
Data
Group A Has Done Much Better on the “Big Six” Dimensions
Low Control Moderate Control High Control
Group A Does Much Better On 2 Key Dimensions Than Group B – Travel Organization and Data
Low Control Moderate Control High Control
Current Score
Overall, Group A
2.7
2.9
3.1
3.2
3.2
3.3
3.3
3.3
3.4
3.4
3.4
3.5
3.5
3.7
1.5 2.0 2.5 3.0 3.5 4.0
Groups/Mtgs.
Demand Mgmt.
Suppliers
Data
Controls
Feedback
Goals
Procurement
Travel Org.
Travel Policy
Transient Mgmt.
Travel Strategy
Travelers
Senior Mgmt.
Transient Mgmt.
Travel Org.
Travel Policy
Procurement
Senior Mgmt.
Current Score
Overall, Group B
1.8
1.9
2.1
2.3
2.4
2.4
2.4
2.5
2.5
2.5
2.5
2.7
2.7
2.7
1.5 2.0 2.5 3.0 3.5 4.0
Demand Mgmt.
Groups/Mtgs.
Data
Travel Org.
Feedback
Goals
Suppliers
Travel Strategy
Travel Policy
Travelers
Controls
Transient Mgmt.
Procurement
Senior Mgmt.
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Data
Data
What’s Holding Group B Back?
Travel Organization Elements
Distribution by Current Stages, Group B
16%
35%
6%
10%
63%
37%
16%
40%
18%
23%
51%
46%
27%
0% 20% 40% 60% 80% 100%
Career
Advancement
Recruiting
Staffing
Execute Major
Initiatives
Travel Organization
Recruiting, Career
Advancement, Execution
Data Elements
Distribution by Current Stages, Group B
17%
48%
19%
57%
62%
37%
27%
41%
22%
29%
10%
57%
32%
11%
8%
0% 20% 40% 60% 80% 100%
Other Data
Agency Data
Hotel Data
Airline Data
Consolidation of
spend
Data
Hotel, Agency and Other
Data; Unconsolidated
Spend
What’s Working, What’s Not - Summary • Six critical dimensions:
– Senior Mgmt., Transient Mgmt., Travel Policy, Procurement, Data and Travel Organization
• Group A programs have strong scores on all six critical dimensions
– Of the six, Data is scored the lowest at 3.2
• Group B does fairly well at Senior Mgmt., Procurement, Transient Mgmt. And Travel Policy
• Groups/Meetings and Demand Mgmt. are well below average at most firms
• Group B scores below average on Travel Organization and Data – The two most critical dimensions
Where Are We Headed?
(Goal Analysis)
Both Groups Have Similar Relative Priorities
Goal Score
Overall, Group B
3.0
3.3
3.3
3.4
3.4
3.5
3.5
3.5
3.5
3.6
3.6
3.6
3.7
3.8
2.5 3.0 3.5 4.0
Demand Mgmt.
Travel Org.
Groups/Mtgs.
Procurement
Travel Strategy
Controls
Feedback
Travel Policy
Goals
Data
Suppliers
Travelers
Transient Mgmt.
Senior Mgmt.
Transient Mgmt.
Procurement
Senior Mgmt.
Data
Travel Org.
Travel Policy
Low Control Moderate Control High Control
Goal Score
Overall, Group A
3.6
3.6
3.6
3.7
3.8
3.9
3.9
3.9
3.9
3.9
3.9
3.9
3.9
4.1
2.5 3.0 3.5 4.0
Demand Mgmt.
Controls
Groups/Mtgs.
Procurement
Travel Org.
Feedback
Data
Travel Policy
Travelers
Travel Strategy
Transient Mgmt.
Suppliers
Goals
Senior Mgmt.
Travel Policy
Travel Org.
Transient Mgmt.
Senior Mgmt.
Procurement
Data
Improving Supplier Quality and Pricing Is a High Priority; Groups and Dem. Mgmt. Are Not
Low Control Moderate Control High Control
Goal Score
Overall, Group A
3.6
3.6
3.6
3.7
3.8
3.9
3.9
3.9
3.9
3.9
3.9
3.9
3.9
4.1
2.5 3.0 3.5 4.0
Demand Mgmt.
Controls
Groups/Mtgs.
Procurement
Travel Org.
Feedback
Data
Travel Policy
Travelers
Travel Strategy
Transient Mgmt.
Suppliers
Goals
Senior Mgmt.
Transient Mgmt.
Senior Mgmt.
Procurement
Travel Policy
Travel Org.
Goal Score
Overall, Group B
3.0
3.3
3.3
3.4
3.4
3.5
3.5
3.5
3.5
3.6
3.6
3.6
3.7
3.8
2.5 3.0 3.5 4.0
Demand Mgmt.
Travel Org.
Groups/Mtgs.
Procurement
Travel Strategy
Controls
Feedback
Travel Policy
Goals
Data
Suppliers
Travelers
Transient Mgmt.
Senior Mgmt.
Travel Org.
Travel Policy
Transient Mgmt.
Procurement
Senior Mgmt.
Data
Data
Group A Wants It All
Low Control Moderate Control High Control
Goal Score
Overall, Group A
3.6
3.6
3.6
3.7
3.8
3.9
3.9
3.9
3.9
3.9
3.9
3.9
3.9
4.1
2.5 3.0 3.5 4.0
Demand Mgmt.
Controls
Groups/Mtgs.
Procurement
Travel Org.
Feedback
Data
Travel Policy
Travelers
Travel Strategy
Transient Mgmt.
Suppliers
Goals
Senior Mgmt.
Transient Mgmt.
Senior Mgmt.
Procurement
Travel Policy
Travel Org.
Data
Group B Wants a Better Steering Wheel
Low Control Moderate Control High Control
Goal Score
Overall, Group B
3.0
3.3
3.3
3.4
3.4
3.5
3.5
3.5
3.5
3.6
3.6
3.6
3.7
3.8
2.5 3.0 3.5 4.0
Demand Mgmt.
Travel Org.
Groups/Mtgs.
Procurement
Travel Strategy
Controls
Feedback
Travel Policy
Goals
Data
Suppliers
Travelers
Transient Mgmt.
Senior Mgmt.
Travel Org.
Travel Policy
Transient Mgmt.
Procurement
Senior Mgmt.
Data Data
Goals
Feedback
Controls
But Why Is Travel Organization Near the Bottom for Group B?
Low Control Moderate Control High Control
Goal Score
Overall, Group B
3.0
3.3
3.3
3.4
3.4
3.5
3.5
3.5
3.5
3.6
3.6
3.6
3.7
3.8
2.5 3.0 3.5 4.0
Demand Mgmt.
Travel Org.
Groups/Mtgs.
Procurement
Travel Strategy
Controls
Feedback
Travel Policy
Goals
Data
Suppliers
Travelers
Transient Mgmt.
Senior Mgmt.
Travel Org.
Travel Policy
Transient Mgmt.
Procurement
Senior Mgmt.
Data
Goal Score
Overall, Group A
3.6
3.6
3.6
3.7
3.8
3.9
3.9
3.9
3.9
3.9
3.9
3.9
3.9
4.1
2.5 3.0 3.5 4.0
Demand Mgmt.
Controls
Groups/Mtgs.
Procurement
Travel Org.
Feedback
Data
Travel Policy
Travelers
Travel Strategy
Transient Mgmt.
Suppliers
Goals
Senior Mgmt.
Transient Mgmt.
Senior Mgmt.
Procurement
Travel Policy
Travel Org.
Data
Where Are We Headed - Summary
• Both groups set high goals (3.5+) for Senior Mgmt.,
Transient Mgmt., Suppliers, Travel Policy and Data
• Group B wants much stronger ability to control their
programs
• Both groups put Demand Mgmt. and Groups at or near
the bottom
• Group B puts less emphasis on Procurement and
Travel Organization (3.4, 3.3)
– Travel Organization is ranked the second-lowest goal
This looks like a self-imposed “Travel Ceiling”
Is Bigger Better?
Having a Large Program Does Not Mean Strong Scores on Travel Organization or Data
Current Score
Large Spend, Group B
1.9
2.1
2.2
2.4
2.4
2.5
2.5
2.5
2.5
2.6
2.6
2.6
2.6
3.1
1.5 2.0 2.5 3.0 3.5
Demand Mgmt.
Data
Groups/Mtgs.
Travel Org.
Goals
Feedback
Travel Policy
Travelers
Controls
Travel Strategy
Suppliers
Senior Mgmt.
Transient Mgmt.
Procurement
Travel Policy
Procurement
Transient Mgmt.
Senior Mgmt.
Travel Org.
Data
Low Control Moderate Control High Control
Current Score
Large Spend, Group A
2.4
2.9
2.9
3.2
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.3
3.4
3.6
1.5 2.0 2.5 3.0 3.5
Groups/Mtgs.
Demand Mgmt.
Data
Travelers
Suppliers
Controls
Travel Policy
Feedback
Travel Strategy
Transient Mgmt.
Goals
Travel Org.
Procurement
Senior Mgmt.
Transient Mgmt.
Travel Org.
Senior Mgmt.
Procurement
Travel Policy
Data
Medium Programs Show 1-Stage Difference
Current Score
Medium Spend, Group A
2.7
3.0
3.0
3.0
3.2
3.2
3.3
3.3
3.4
3.4
3.4
3.5
3.6
3.7
1.0 2.0 3.0 4.0
Demand Mgmt.
Groups/Mtgs.
Suppliers
Data
Travel Org.
Controls
Procurement
Goals
Feedback
Travel Policy
Travel Strategy
Travelers
Senior Mgmt.
Transient Mgmt.
Travel Org.
Senior Mgmt.
Transient Mgmt.
Travel Policy
Procurement
Current Score
Medium Spend, Group B
1.6
1.6
2.1
2.1
2.3
2.3
2.3
2.3
2.3
2.3
2.4
2.6
2.6
2.7
1.0 2.0 3.0 4.0
Groups/Mtgs.
Demand Mgmt.
Data
Travel Org.
Suppliers
Travel Strategy
Feedback
Travelers
Travel Policy
Controls
Goals
Procurement
Transient Mgmt.
Senior Mgmt.
Transient Mgmt.
Travel Policy
Procurement
Travel Org.
Senior Mgmt.
Low Control Moderate Control High Control
Data
Data
Current Score
Small Spend, Group A
2.6
2.8
2.9
3.1
3.2
3.2
3.3
3.3
3.4
3.4
3.5
3.5
3.6
3.7
1.5 2.0 2.5 3.0 3.5 4.0
Groups/Mtgs.
Demand Mgmt.
Suppliers
Controls
Feedback
Transient Mgmt.
Goals
Travel Org.
Data
Procurement
Travel Policy
Travelers
Travel Strategy
Senior Mgmt.
Current Score
Small Spend, Group B
1.9
2.0
2.2
2.3
2.3
2.3
2.4
2.4
2.5
2.5
2.7
2.7
2.7
2.7
1.5 2.0 2.5 3.0 3.5 4.0
Demand Mgmt.
Groups/Mtgs.
Data
Goals
Feedback
Travel Org.
Suppliers
Procurement
Travel Strategy
Travel Policy
Transient Mgmt.
Travelers
Senior Mgmt.
Controls
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Data
Data
Small Programs Also Show 1-Stage Difference
What’s Needed?
Better Use of Numbers and People
• Deliver better data across the board
– Airline O&D data should be an “on tap” commodity
– Hotel folio data will drive better deals for everyone
• Develop integrated systems for stronger control of
data, travel policies, goals and feedback
– More executive dashboards and balanced scorecards
– Likely anchored at the point of sale
• Eliminate the „Travel Ceiling” – real or perceived
• Re-write the role and reputation of the travel
manager
What Role Are We Talking About?
• Mission-Critical Processes
• Globalization
• Operations
• Cost Control / Bottom-line Impact
• Supplier Management
• Strategic Sourcing
• Customer (Traveler) and Stakeholder Satisfaction
• Change Management
• Staff Development
• Distribution Channels
• Information and Internet Technology
Key Management Challenges The Travel Manager, or…
(Sales and Manufacturing)
• General Manager
• President
• COO or CEO
Travel Management Is a Great Career
Opportunity…
…But Not Without Risk
Upgrading a Travel Program One Full Stage Is a Big Challenge – and Therefore a Risk
• Get the best resources
– Especially Travel Organization and Data
• Don‟t accept budget constraints as an excuse
– Most Dimensions can be improved at no significant cost
– Build a solid business case for those that do
• Set priorities carefully – you can‟t do it all at once!
– What‟s really on the critical path?
– From whom can you learn and leverage?
All Set For Take-Off
With the Right Vision Our Industry Can Really Take Flight!
Stage 1 Stage 2 Stage 3 Stage 4
Distribution of Current Scores by Stage
1%
43%
50%
6%
0%
10%
20%
30%
40%
50%
60%
Stage 1 Stage 2 Stage 3 Stage 4
Where We Are Today Distribution of Goal Scores by Stage
0% 1%
46%52%
0%
10%
20%
30%
40%
50%
60%
Stage 1 Stage 2 Stage 3 Stage 4
Where We Want to Be
Individual Reports
What Does an Individual Report Include?
• Your responses are benchmarked against
– The entire ACTE/Travel Analytics peer set
– A peer set based on your spend
– Overall Group A
– Overall Group B
• Covers Current Scores and Goals
– For all 14 Dimensions
– For all 63 Elements
• Custom benchmark groups can be arranged
– Need more European participants for Regional Benchmarking
How Can You Get an Individual Report?
• If you contributed a survey by April 18th:
– You will want your individual report for Tuesday‟s session
• Interpreting Your Stages of Excellence Report
• Tuesday, 4:15 to 5:30 pm in the _____ Room
– Pick up your sealed report at the podium after this presentation, or leave a message for Scott Gillespie at the Cyber Cafe
• If you contributed your survey between April 18-25th
– Your report will be e-mailed to you next week at no cost
• If you‟d like to obtain an individual report:
– $300 fee for current ACTE members and conference attendees
– $600 for all others
Ordering an Individual Report
To obtain an individual report,
1. Download the Stages of Excellence Scoring Tool from
www.travelanalytics.com/mainfree.htm
2. Submit the scored file by e-mail to
Your report will be e-mailed to you within 10 days
Discussion, Please!
• What other conclusions can be drawn from this data?
• What works well about this approach?
• How can the Stages of Excellence framework be improved?
– What‟s missing?
– What‟s misunderstood?
– What could be done better?
Thank You!
Appendix
All Programs
What’s Working, What’s Not Current Score
Overall, Group A
2.7
2.9
3.1
3.2
3.2
3.3
3.3
3.3
3.4
3.4
3.4
3.5
3.5
3.7
1.5 2.0 2.5 3.0 3.5 4.0
Groups/Mtgs.
Demand Mgmt.
Suppliers
Data
Controls
Feedback
Goals
Procurement
Travel Org.
Travel Policy
Transient Mgmt.
Travel Strategy
Travelers
Senior Mgmt.
Current Score
Overall, Group B
1.8
1.9
2.1
2.3
2.4
2.4
2.4
2.5
2.5
2.5
2.5
2.7
2.7
2.7
1.5 2.0 2.5 3.0 3.5 4.0
Demand Mgmt.
Groups/Mtgs.
Data
Travel Org.
Feedback
Goals
Suppliers
Travel Strategy
Travel Policy
Travelers
Controls
Transient Mgmt.
Procurement
Senior Mgmt.
Stage 1 (0.5 – 1.4) Stage 2 (1.5 – 2.4) Stage 3 (2.5 – 3.4) Stage 4 (3.5 – 4.5)
Top 10 Elements, Current Scores
Group A, Overall Group B, Overall Dimension Element Average
Score
1 Senior Mgmt.
Ownership of Travel
Management 2.94
2 Travel Policy
Processes to be used for
purchasing travel 2.93
3 Procurement
Basis for awarding
contracts 2.90
4 Travel Org. Staffing 2.89
5 Transient Mgmt. Agency consolidation 2.88
6 Controls
Ability to pass travel
costs to business units,
divisions, etc. 2.79
7 Procurement
Travel's integration with
Procurement 2.78
8 Controls
Supplier preferencing at
the point of sale 2.76
9 Transient Mgmt.
Ability to control the
point of sale 2.76
10 Procurement Analysis of pricing 2.73
Dimension Element Average
Score
1 Senior Mgmt.
Ownership of Travel
Management 4.08
2 Travel Policy
Processes to be used for
purchasing travel 3.84
3 Travel Org. Staffing 3.76
4 Travel Strategy
Success in tracking and
reporting travel cost
savings 3.67
5 Goals Agency performance 3.66
6 Travelers
Compliance with key
travel policies 3.64
7 Travel Strategy
Travel viewed as a factor
for business success 3.62
8 Goals
Travel Department's
Financial Performance 3.58
9 Travel Policy
Quality of travel to be
purchased 3.54
10 Transient Mgmt. Agency productivity 3.53
Bottom 10 Elements, Current Scores Group A, Overall Group B, Overall
54 Demand Mgmt.
Guidelines for evaluating
the need for a trip 2.87
55 Demand Mgmt.
Promotion of non-travel
alternatives 2.86
56 Demand Mgmt.
System for evaluating a
trip's value 2.84
57 Travel Policy
Typical consequences of
not complying with a key
travel policy 2.82
58 Suppliers Current pricing 2.79
59 Groups/Mtgs.
Ability to measure G/M
spend 2.79
60 Travel Org. Career Advancement 2.75
61 Groups/Mtgs.
Communication between
internal GM planners 2.65
62 Groups/Mtgs.
Processes for planning,
sourcing and managing
G/M events 2.60
63 Groups/Mtgs.
Centralized visibility of
G/M events 2.60
Dimension Element Average
Score
54 Travel Org. Career Advancement 2.0
55 Groups/Mtgs.
Communication between
internal GM planners 1.9
56 Groups/Mtgs.
Processes for planning,
sourcing and managing
G/M events 1.9
57 Groups/Mtgs.
Centralized visibility of
G/M events 1.9
58 Travel Policy
Typical consequences of
not complying with a key
travel policy 1.8
59 Demand Mgmt.
Guidelines for evaluating
the need for a trip 1.8
60 Demand Mgmt.
Ability to eliminate
unnecessary trips before
they are taken 1.8
61 Travel Org. Recruiting 1.8
62 Data Hotel data 1.7
63 Demand Mgmt.
System for evaluating a
trip's value 1.5
Dimension Element Average
Score
Tall Goals, Small Goals Goal Score
Overall, Group B
3.0
3.3
3.3
3.4
3.4
3.5
3.5
3.5
3.5
3.6
3.6
3.6
3.7
3.8
2.5 3.0 3.5 4.0
Demand Mgmt.
Travel Org.
Groups/Mtgs.
Procurement
Travel Strategy
Controls
Feedback
Travel Policy
Goals
Data
Suppliers
Travelers
Transient Mgmt.
Senior Mgmt.
Goal Score
Overall, Group A
3.6
3.6
3.6
3.7
3.8
3.9
3.9
3.9
3.9
3.9
3.9
3.9
3.9
4.1
2.5 3.0 3.5 4.0
Demand Mgmt.
Controls
Groups/Mtgs.
Procurement
Travel Org.
Feedback
Data
Travel Policy
Travelers
Travel Strategy
Transient Mgmt.
Suppliers
Goals
Senior Mgmt.
Stage 1 (0.5 – 1.4) Stage 2 (1.5 – 2.4) Stage 3 (2.5 – 3.4) Stage 4 (3.5 – 4.5)
Top 10 Elements, Goal Scores Group A, Overall Group B, Overall
Dimension Element Average
Score
1 Senior Mgmt.
Ownership of Travel
Management 4.23
2 Travel Strategy
Success in tracking and
reporting travel cost
savings 4.20
3 Goals Agency performance 4.12
4 Travelers
Awareness of travel
policies and preferred
suppliers 4.10
5 Travel Policy
Processes to be used for
purchasing travel 4.09
6 Data
Ability to consolidate
enterprise-wide travel
spending 4.06
7 Travelers
Compliance with key
travel policies 4.06
8 Goals Travel Policy Compliance 4.05
9
Transient
Mgmt. Agency service quality 3.99
10 Feedback Travel Policy Compliance 3.99
Dimension Element Average
Score
1 Travelers
Awareness of travel
policies and preferred
suppliers 3.87
2 Travel Strategy
Success in tracking and
reporting travel cost
savings 3.86
3 Data
Ability to consolidate
enterprise-wide travel
spending 3.81
4 Data Airline data 3.81
5 Senior Mgmt.
Ownership of Travel
Management 3.81
6 Senior Mgmt.
Level of Support and
Enforcement 3.80
7 Travel Org. Staffing 3.79
8 Controls
Supplier preferencing at
the point of sale 3.79
9 Transient Mgmt.
Ability to control the
point of sale 3.79
10 Travelers
Opinion of travel
department 3.75
Bottom 10 Elements, Goal Scores Group A, Overall Group B, Overall
54 Feedback Self-Booking Adoption 3.56
55 Travelers
Input on travel policies
and suppliers 3.56
56 Travel Strategy
Travel viewed as a factor
in employee productivity
and retention 3.55
57 Groups/Mtgs.
Processes for planning,
sourcing and managing
G/M events 3.54
58 Demand Mgmt.
Promotion of non-travel
alternatives 3.48
59 Demand Mgmt.
System for evaluating a
trip's value 3.46
60 Procurement Tender or RFP process 3.45
61 Travel Org. Career Advancement 3.44
62 Controls
Ability to pass travel
costs to business units,
divisions, etc. 3.40
63 Controls
Exceptions to travel
policy 3.38
Dimension Element Average
Score
54 Groups/Mtgs.
Centralized visibility of
G/M events 3.24
55 Travelers
Input on travel policies
and suppliers 3.18
56 Demand Mgmt.
Ability to eliminate
unnecessary trips before
they are taken 3.16
57 Demand Mgmt.
Promotion of non-travel
alternatives 3.08
58 Controls
Exceptions to travel
policy 3.06
59 Travel Org. Career Advancement 3.01
60 Travel Org. Recruiting 2.96
61 Travel Strategy
Travel viewed as a factor
in employee productivity
and retention 2.96
62 Demand Mgmt.
Guidelines for evaluating
the need for a trip 2.95
63 Demand Mgmt.
System for evaluating a
trip's value 2.65
Dimension Element Average
Score
Big Steps, Little Steps
Top 4
Are
The
Same
Goal Gap
Overall, Group A
0.36
0.37
0.39
0.42
0.43
0.44
0.49
0.50
0.57
0.60
0.69
0.71
0.85
0.99
0.00 0.50 1.00 1.50
Senior Mgmt.
Procurement
Controls
Travel Org.
Travelers
Travel Strategy
Transient Mgmt.
Travel Policy
Feedback
Goals
Data
Demand Mgmt.
Suppliers
Groups/Mtgs.
All
Within
½ a
Stage
Goal Gap
Overall Group B
0.71
0.96
0.97
1.02
1.05
1.05
1.07
1.11
1.14
1.14
1.18
1.21
1.39
1.45
0.00 0.50 1.00 1.50
Procurement
Controls
Travel Strategy
Transient Mgmt.
Travel Org.
Travel Policy
Senior Mgmt.
Feedback
Goals
Travelers
Demand Mgmt.
Suppliers
Groups/Mtgs.
Data
Large Programs
Air Spend $50MM+
Big Steps, Little Steps: Large Programs
Goal Gap
Large Spend, Group A
0.31
0.33
0.47
0.48
0.50
0.54
0.56
0.58
0.62
0.63
0.65
0.71
0.89
1.30
0.00 0.50 1.00 1.50
Senior Mgmt.
Procurement
Controls
Travel Strategy
Feedback
Travel Policy
Travelers
Travel Org.
Goals
Transient Mgmt.
Demand Mgmt.
Suppliers
Data
Groups/Mtgs.
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Goal Gap
Large Spend, Group B
0.43
0.77
0.88
0.94
0.94
0.95
0.95
0.97
0.97
0.98
0.98
1.09
1.18
1.38
0.00 0.50 1.00 1.50
Procurement
Travel Strategy
Travel Org.
Suppliers
Transient Mgmt.
Controls
Senior Mgmt.
Travel Policy
Travelers
Feedback
Demand Mgmt.
Goals
Groups/Mtgs.
Data
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Data
Data
Medium Programs
Air Spend $15MM-50MM
What’s Working, What’s Not
Current Score
Medium Spend, Group A
2.7
3.0
3.0
3.0
3.2
3.2
3.3
3.3
3.4
3.4
3.4
3.5
3.6
3.7
1.0 2.0 3.0 4.0
Demand Mgmt.
Groups/Mtgs.
Suppliers
Data
Travel Org.
Controls
Procurement
Goals
Feedback
Travel Policy
Travel Strategy
Travelers
Senior Mgmt.
Transient Mgmt.
Travel Org.
Senior Mgmt.
Transient Mgmt.
Travel Policy
Procurement
Current Score
Medium Spend, Group B
1.6
1.6
2.1
2.1
2.3
2.3
2.3
2.3
2.3
2.3
2.4
2.6
2.6
2.7
1.0 2.0 3.0 4.0
Groups/Mtgs.
Demand Mgmt.
Data
Travel Org.
Suppliers
Travel Strategy
Feedback
Travelers
Travel Policy
Controls
Goals
Procurement
Transient Mgmt.
Senior Mgmt.
Transient Mgmt.
Travel Policy
Procurement
Travel Org.
Senior Mgmt.
Low Control Moderate Control High Control
Data
Data
Tall Goals, Small Goals: Medium Programs
Goal Score
Medium Spend, Group A
3.5
3.5
3.6
3.7
3.7
3.9
3.9
3.9
3.9
3.9
4.0
4.0
4.1
4.1
2.5 3.0 3.5 4.0 4.5
Demand Mgmt.
Controls
Groups/Mtgs.
Travel Org.
Procurement
Feedback
Data
Goals
Travel Strategy
Travel Policy
Travelers
Senior Mgmt.
Suppliers
Transient Mgmt.
Goal Score
Medium Spend, Group B
3.0
3.4
3.4
3.5
3.5
3.5
3.6
3.6
3.6
3.6
3.7
3.8
3.8
3.8
2.5 3.0 3.5 4.0 4.5
Demand Mgmt.
Travel Org.
Groups/Mtgs.
Travel Strategy
Travel Policy
Procurement
Controls
Feedback
Travelers
Goals
Data
Suppliers
Transient Mgmt.
Senior Mgmt.Transient Mgmt.
Travel Org.
Senior Mgmt.
Procurement
Travel Policy
Transient Mgmt.
Travel Org.
Senior Mgmt.
Procurement
Travel Policy
Low Control Moderate Control High Control
Data
Data
Big Steps, Little Steps: Medium Programs
Goal Gap
Medium Spend, Group A
0.31
0.37
0.40
0.43
0.44
0.46
0.50
0.51
0.55
0.60
0.69
0.83
0.87
1.04
0.00 0.50 1.00 1.50 2.00
Controls
Senior Mgmt.
Transient Mgmt.
Procurement
Travel Org.
Feedback
Travelers
Travel Strategy
Travel Policy
Goals
Groups/Mtgs.
Data
Demand Mgmt.
Suppliers
Goal Gap
Medium Spend, Group B
1.00
1.12
1.16
1.19
1.21
1.26
1.27
1.32
1.33
1.34
1.34
1.51
1.64
1.84
0.00 0.50 1.00 1.50 2.00
Procurement
Senior Mgmt.
Transient Mgmt.
Travel Policy
Travel Strategy
Controls
Goals
Travel Org.
Feedback
Travelers
Demand Mgmt.
Suppliers
Data
Groups/Mtgs.
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Transient Mgmt.
Data
Data
Small Programs
Air Spend Less Than $15MM
What’s Working, What’s Not: Small Programs
Current Score
Small Spend, Group A
2.6
2.8
2.9
3.1
3.2
3.2
3.3
3.3
3.4
3.4
3.5
3.5
3.6
3.7
1.5 2.0 2.5 3.0 3.5 4.0
Groups/Mtgs.
Demand Mgmt.
Suppliers
Controls
Feedback
Transient Mgmt.
Goals
Travel Org.
Data
Procurement
Travel Policy
Travelers
Travel Strategy
Senior Mgmt.
Current Score
Small Spend, Group B
1.9
2.0
2.2
2.3
2.3
2.3
2.4
2.4
2.5
2.5
2.7
2.7
2.7
2.7
1.5 2.0 2.5 3.0 3.5 4.0
Demand Mgmt.
Groups/Mtgs.
Data
Goals
Feedback
Travel Org.
Suppliers
Procurement
Travel Strategy
Travel Policy
Transient Mgmt.
Travelers
Senior Mgmt.
Controls
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Lo
w C
on
trol
Mo
de
rate
Co
ntro
l H
igh
Co
ntro
l
Data
Data
Tall Goals, Small Goals: Small Programs
Goal Score
Small Spend, Group B
3.0
3.1
3.1
3.2
3.3
3.4
3.4
3.4
3.5
3.5
3.5
3.6
3.7
3.8
2.5 3.0 3.5 4.0
Demand Mgmt.
Procurement
Groups/Mtgs.
Travel Org.
Feedback
Travel Strategy
Goals
Controls
Data
Suppliers
Travel Policy
Transient Mgmt.
Travelers
Senior Mgmt.
Goal Score
Small Spend, Group A
3.6
3.6
3.7
3.7
3.8
3.8
3.8
3.9
3.9
3.9
4.0
4.0
4.0
4.3
2.5 3.0 3.5 4.0
Controls
Demand Mgmt.
Groups/Mtgs.
Travel Org.
Suppliers
Procurement
Transient Mgmt.
Data
Goals
Travel Policy
Feedback
Travelers
Travel Strategy
Senior Mgmt.
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Transient Mgmt.
Travel Policy
Travel Org.
Senior Mgmt.
Procurement
Low Control Moderate Control High Control
Data
Data
Big Steps, Little Steps: Small Programs
Goal Gap
Small Spend, Group A
0.36
0.36
0.41
0.47
0.48
0.50
0.52
0.53
0.59
0.63
0.75
0.84
0.88
1.06
0.00 0.50 1.00 1.50
Travel Strategy
Procurement
Travel Org.
Travelers
Travel Policy
Controls
Data
Senior Mgmt.
Transient Mgmt.
Goals
Feedback
Demand Mgmt.
Suppliers
Groups/Mtgs.
Goal Gap
Small Spend, Group B
0.63
0.66
0.87
0.90
0.94
0.98
1.00
1.04
1.06
1.06
1.09
1.10
1.10
1.28
0.00 0.50 1.00 1.50
Procurement
Controls
Travel Org.
Travel Strategy
Transient Mgmt.
Travel Policy
Feedback
Travelers
Goals
Suppliers
Demand Mgmt.
Groups/Mtgs.
Senior Mgmt.
Data
Travel Policy
Transient Mgmt.
Travel Org.
Senior Mgmt.
Procurement
Transient Mgmt.
Travel Org.
Senior Mgmt.
Procurement
Travel Policy