Reference no: EM132360002
Question
Case Study
Extended Stay America Tries to Increase Innovation
Jim Donald took the helm at national hotel chain Extended Stay America after the company had gone through bankruptcy. Employees were suffering job insecurity and avoiding decisions that might cost the company money. "They were waiting to be told what to do," says Donald.
What Did the Company Do to Increase Innovation? Employees were told the company needed them to generate daring ideas and take calculated risks to improve customer service and profitability. To make this happen, Donald decided to provide a safety net to encourage people to let go of the fear of failure. He created "Get Out of Jail Free" cards (as in the game of Monopoly) and distributed them to the company's 9,000 employees.
Jeremy sutton-hibbert/Alamy
Employees could turn the card in "when they took a big risk on behalf of the company-no questions asked." The card became a way of giving employees permission to make mistakes in the interests of trying something innovative.
What Was the Result of the Program? The cards have been trickling in since the program started. For example, "one California hotel manager recently called to redeem her card . . . confessing that she nabbed 20 business cards from a fishbowl in the lobby of nearby rival La Quinta in an attempt to find prospective customers. Another manager in New Jersey cold-called a movie-production company when she heard it would be filming in the area. The film crew ended up booking $250,000 in accommodations at the hotel."94
Identify the causes. What OB theories or concepts help explain the causes of the problem?
Make your recommendation. What do you think about Donald's solution? Explain.
How would you resolve the issue here without using the "get out of jail free" cards
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