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


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


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


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


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?


– Clearly necessary, but not sufficient

• Travel Policy

– Critical for controlling traveler behavior


– The heart of delivering a managed travel program

• Procurement

– Smart sourcing means big savings

• Data

– The building blocks of business decisions


– 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?


• Travel Policy


• Procurement

• Data


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


Group A Does Much Better On 2 Key Dimensions Than Group B – Travel Organization and 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.

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


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


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


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


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?


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


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.


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!


Distribution of Current Scores by Stage

1%

43%

50%

6%

0%

10%

20%

30%

40%

50%

60%


Where We Are Today Distribution of Goal Scores by Stage

0% 1%

46%52%

0%

10%

20%

30%

40%

50%

60%


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

[email protected]

Your report will be e-mailed to you within 10 days

http://www.travelanalytics.com/mainfree.htm

http://www.travelanalytics.com/mainfree.htm

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




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


Score


55 Groups/Mtgs.

Communication between

internal GM planners 1.9

56 Groups/Mtgs.



G/M events 1.9

57 Groups/Mtgs.


G/M events 1.9

58 Travel Policy

Typical consequences of

not complying with a key

travel policy 1.8

59 Demand Mgmt.



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.


trip's value 1.5


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


Score

1 Senior Mgmt.

Ownership of Travel

Management 4.23

2 Travel Strategy



savings 4.20

3 Goals Agency performance 4.12

4 Travelers

Awareness of travel

policies and preferred

suppliers 4.10

5 Travel Policy



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


Score

1 Travelers

Awareness of travel

policies and preferred

suppliers 3.87

2 Travel Strategy



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


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


in employee productivity

and retention 3.55

57 Groups/Mtgs.



G/M events 3.54

58 Demand Mgmt.


alternatives 3.48

59 Demand Mgmt.


trip's value 3.46

60 Procurement Tender or RFP process 3.45


62 Controls

Ability to pass travel

costs to business units,

divisions, etc. 3.40

63 Controls

Exceptions to travel

policy 3.38


Score

54 Groups/Mtgs.


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.


alternatives 3.08

58 Controls

Exceptions to travel

policy 3.06


60 Travel Org. Recruiting 2.96

61 Travel Strategy


in employee productivity

and retention 2.96

62 Demand Mgmt.



63 Demand Mgmt.


trip's value 2.65


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


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


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.


Data

Data

Tall Goals, Small Goals: Medium Programs

Goal Score


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


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


Data

Data

Big Steps, Little Steps: Medium Programs

Goal Gap


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


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


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


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


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


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


Data

Data

Big Steps, Little Steps: Small Programs

Goal Gap


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


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

stages of excellence industry report - gillespie's guide ... · •previously a.t. kearney‟s...

Documents