Lausanne: Updating aftera Century ofService by Colin~olznson CEcoie Hgtelibre de Lausanne adapted the practice of projed

management from industry to upgrade its program after more

than a century of operation.

In the mid-19908 the programs at I’Ecole HBtelilre de Laussnne were overhauled. Since Ihe process of identifying necessary changes could put straios on existing operating methods, a prolect- management approach was employed to enable the school to meet its objectives.

L ittle fanfare greeted the open- ing of 1’Ecole Hkelike when it began operations on October 15, 1893. The brainchild of Jacques Tschumi, general manager of the Beau Rivage hotel in Ouchy, near Lausanne, the school’s graduates were soon recognized for their pro- fessional and personal qualities. The school has since graduated more than 30,000 people now located in 90 countries, many of them in senior positions in hotels, catering, and other hospitality-industry sectors.

HES project director Colin Johnson is deputy director of studies and research and development at 1’Ecole H&eliPre de Lausanne.

0 1998, Cornell University

74 CIIRNM HOTELANDRESTAURANTADMINISTRATIONQUARTERLY

Over the years, the school has grown into a four-year, degree- granting institution of high interna- tional repute. In the process it has shed two previous physical plants and has enlarged its current perma- nent home at Chalet-&Gobet, which it occupied in 1975. Its cur- rent facility expansion is due for completion in spring 1998. The growth of the school’s physical plant has been driven by growth ofpro- gram and curriculum. In this article I discuss the metamorphosis under- way in EHL’s program and teaching approach.

Perception and Reality U~ltsiders’ perceptions of the school, developed from a century of opera- tion, seem to be as follows: a presti- gious, somewhat conservative, sober, and traditional European school that is especially oriented toward food and beverage operations with a focus on hands-on teaching. In- deed, colleagues at other schools have attempted to categorize the Lausanne program as a “practical” school.

While rooted in reality, percep- tion frequently misses the mark, as is the case here. Certainly the school places an emphasis on producing managers who are operationally competent. Since its inception, however, it has taught such contem- porary topics as communication and management skills. In its inaugural year, 1893-94, the program included languages, accounting,“touristic” geography, knowledge of merchan- dise, food service, and calligraphy.’ Looking ahead to the next century, it seems clear to many educators that graduates will need additional skills in interpersonal relationships, managing one’s own learning, human resources, and business generally.

Evaluation at Chalet-&Gobet As is the case with so many other college-level programs, the Lausanne school has continually conducted external and internal reviews of its program, Over ten separate studies were conducted between 1988 and 1994, involving senior academics from other institu- tions, internationally respected ho- teliers and associated industry lead- ers, EHL faculty members, and more than 500 graduates.

Perhaps the most far-reaching of those reviews occurred in February 1991, when a symposium that con- cluded the study led the faculty members to conduct a retreat with industry experts at Weggis (near Lucerne). A year later Marcel Goldschmid, chair of pCdagogie et didactique at I’Ecole Polytechnique Federale de Lausanne, presented a study that outlined the recom- mended direction of the school for the ensuing decade.2

New MO. One of the seminars in conjunction with Goldschmid’s presentation was headed by Marion G&az, who in 1994 became presi- dent of the board of governors (for- maIly known as La Fondation de 1’Ecoie HBteli&e de Lausanne). G&taz initiated a feasibility study to evaluate the demand for the school’s delivering its program in English, in addition to its traditional French, The study concluded that the school should open a new section taught in English, necessitating an expansion of the premises. In No- vember 1994 the school’s board of governors approved an expansion that would cost in excess of US$20 million. Concurrently, the Swiss government approved legislation that allowed the school to upgrade its program to four-year, degree-

’ Marcel Luck Goldschmid, “Une EC& H&&&z pour ie 2le S~ecle: Concept, Organisation et PPdagogie de la Formation Profession& de Haut Niveau” (report for EC& H&&&z de Lamanne), October 1992.

granting status. The school would be established as part of the “Haute Ecole Specialisie,” an association of business and professional schools offering undergraduate and post- graduate education. The intention was that after a century of operation the programs at 1’Ecole H&e&e de Lausanne would compare with the best hospitality-degree programs in the world.

New processes needed. The initiative, however, put strains on existing operating methods. Senior managers found their agendas so full of day-to-day tasks that they could not deal effectively with the new program initiatives. A reorganization was evidently necessary, and to that end the school retained a consulting firm, Sysman Conseil d’entreprise. Working with the president and senior management team, Sysman concluded that project management would enable the school to meet its objectives more effectively than existing approaches.

Project Management Project management is a common practice in industry. For instance, some 80 percent of French indus- trial companies have used project management for new-product de- velopment.3 A chief advantage of project management is expedited development times for new prod- ucts. Otis Elevator, for instance, used project management to halve from three years to 18 months the time needed to develop a new elevator doora The competitive advantage of such a fast-track approach is appar- ent in an environment of intense competition and short product life cycles. I believe that project man- agement is not widespread in edu- cational institutions, however, and it represented a substantial change in the approach at EHL.

’ “Noveaux Projects,” L’Emwtial du Mmgement, March 1996, p. 82.

4 Ibid.

February 1998 l 75

Exhibit 1 L’Ecole H&e/i&e de 1 ausanne project-organization chart

Two members One member Five members Two members

1

Entrepreneurship. With the introduction of project management, the school promoted a more entre- preneurial approach to management. This meant that individu~s were responsible for managing their par- ticular ventures within the organiza- tion and had the responsibility of producing results in a specific time. The stress and pressures that are part of everyday life in commercial ven- tures may be unknown in some educational institutions.

The school was previously or- ganized along traditional lines, with a president, director-general, secretary-general, and two directors, one responsible for academic affairs and the other for the operations (e.g., finance, accommodation). Fol- lowing the Sysman report the school was reorganized according to the principles of project management. The secretary-general became

project coordinator, thereby provid- ing substance as well as demonstrat- ing the commitment to make the new structure work. While the for- mal organizational structure did not change, a new organizational chart was created for the projects them- selves. The Sysman firm was further retained to assist in providing train- ing and the “tools” of project man- agement. Typically the consultant was on campus once a month.

System components. The project-management system at EHL is clearly defined, with five major components. They are the mandator, the project coordinator, the steering committee, the project director, and the project team (or working group). Sysman consultant Phillipe Lovy provided the original descriptions of each of these positions, as follows.

The mandator, in this case the school’s director-general, decides

with the management team whether a project should be launched, desig- nates the project director, defines the general financial resources available, has the final say regarding whether the project should be suspended or abandoned if necessary, and offers general support for the project.

The project coordinator is re- sponsible for the general progress and coordination of all projects, at- tends all steering-committee meet- ings, and acts as a resource for the project directors. The project coor- dinator provides the training and facilitates implementation of project management and decides whether further resources are required for operation of projects.

The steering committee usually comprises five to seven persons, who may be within the organization or external specialists. The committee is responsible for the project’s strategic direction and, while not actively involved in the project’s implemen- tation, may be a source of informa- tion and resources for the working group.

The project director is account- able for the project’s management and is, thus, its entrepreneur. With the working group, the project man- ager finalizes the project’s overall detailed plan. The project director periodically reports to the steering committee regarding the working group’s progress.

The project team or working group, normally composed of four to seven persons, is best when it consists both of generalists and sub- ject specialists. As a matter of good practice, the members of the work- ing group should also represent a range of ages and experience.

Setting project criteria is essential, because otherwise every subject or effort may become classified as a project-and the organization would revert to its earlier structure. A project must meet the following criteria:

l It must have a set time period for completion (usually with discrete phases);

l It must be new and external to normal operations; and

l It must have some significance.

Five Projects At the outset the school established five projects, described below, which were primarily geared to enable the school to develop its new English- language program (with related consrruction of a new building) and to allow the school to satisfy the academic and legal requi~ments of its new status as an haute icole specialisi-e.

Project Haute Ecole SpecialisBe, The first change from the decision to upgrade the program to comply with the new Swiss law creating a professional university was that the program was extended to four years, including two six-month intern- ships. The directive from the steer- ing committee was unequivocal: to establish one of the best degree programs in the world. To that end, the school recruited bilingual pro- fessors fmm a variety of professional backgrounds. In addition to aca- demics, the school hired senior hos- pitality managers, such as financial analysts, product brand managers, and a former CEO.

In designing the program the working group wanted the program to reflect changes in the tourism business as reported in a number of studies.s Go and Pine, for instance, suggested the following six trends driving the industry:

“See, for example: Nick Johns and Richard Teare, “Change, Opportunity, and the Nav Operations Management Curriculum,” Inrema- tiowal.~ouma/ oj,fontemporary Hospik&y Manage- ment, Vol. 7, No. 5 (1995), pp. 4-8; Michael D. Olsrn,“Structural Changes: The International Hospirality Industry and the Firm,” international

_laurndl qf Co~tf~po?dr~ ~a~age~en~, Vol. 3, No. 4 (1991), pp. 21-24; and Frank M. Go and Ray Pine, Giobu~iz~~i~~~ Straregy in tire Hotel ~~d~5~~ (London: Rowledge, t995), pp. 361-362.

(1) Slow growth of demand and proliferation of substitutes in industrialized nations, accom- panied by an explosion of the market in developing countries;

(2) A trend toward value-for- money-oriented customers;

(3) A rise in both the short-break and long-haul travel markets;

(4) Continuing merger and acqui- sition activity leading to greater industry consolidation;

(5) Increased internationalization in the hotel industry through geographical expansion and through affiliation of hotels with global ~stribution sys- tems; and

(5) A shortage of semi-skilled and skilled labor in both in- dustrialized and developing countries.

Hotel executives and managers must be aware of those six trends and their implications to devise strategies to ensure their corporation’s success.

The team also took into account industry studies and views, such as those of Inter-~ontinental’s Robert Collier and representatives of the World Travel and Tourism Council and the International Hotel Envi- ronmental Initiative.6

Of special note was the Interna- tional Hotel Association white paper that emphasized different factors driving the industry than those ad- duced by Go and Pine.7 The IHA cited the following capacity-control issues: (1)

(2)

(3)

technologicxl developments are causing the industry to lose controI of its inventory; customers are increasingly concerned for their safety, security, and health; private and government capital is limited and rationed;

‘World Travel and Tourism Council, PIogress and Priwities 1996 (London: World Travel and Tourism Council, 1996).

‘International Hotel Association, Info tlze New %f&tmium (Paris: IHA. 1996).

(4) technology’s influence on maintaining competitive ad- vantage must be examined; and

(5) managers need to develop new skills to cope with a complex and turbulent environment.

In their argument for interna- tion~ization, Clark and Arbel commented:

Hospitality-education programs must increasingly help students think beyond national borders if they are to be prepared for the global challenges of the future.8 In this respect an important

resource that the school can draw on is its strong international ties. Already the student body repre- sents more than 35 nations, and the opening of the English program would increase that number to nearly 50. That international depth fosters rich and rewarding learning opportunities in both formal and informal contexts, facilitating cul- tural sensitivity and an interna- tional vision.

An additional important factor promoting internationalization is the establishment of the EHL Cen- tre for Hospitali~ Research, which will focus on applied research par- ticularly related to internationaliza- tion, best practice in small and medium-size hospitality enter- prises, and innovation in the man- agement of service enterprises. Through the development of those areas, the school would gain in- creased recognition as a center of excellence.

Project Open. The decision to offer the EHL program in English had fundamental repercussions in an institution where French had been the language of discourse,

‘John J. Clark and Avner Arbel,“Producing Global Managers: The Need for a New Aca-

February 1998 l 77

Almost overnight, the school was bilingual. Suddenly, in addition to being a premier institution for French-speaking students, the school was targeting new mar- kets-particularly in Germany and Scandinavia, as well as countries on other continents where English is a tinguafranca. The new market also includes expatriate students already in Switzerland who do not speak French. From the beginning the steering committee insisted on no disparity between the two programs in level or content.

Project Extension II. The school needed to expand its facili- ties to accommodate the English program and to meet the require- ments of an haute Ccole specialiste. The administration anticipated the addition of 500 students over a period of four years. The resulting extension wing provides an addi- tional X()-seat auditorium, lecture rooms, class and seminar rooms, and enhanced student and faculty facili- ties. Among other amenities, the new facilities offer stunning views of the Alps. Lausanne’s jewel is the 1 ,OOO-square-meter library and information-services center offer- ing internet access, on-line data- bases, CD readers, and video- conferencing facilities. The new wing also houses the school’s filth restaurant, a fast-food concept. The building’s construction meets the highest enviromnental standards.

Under the guidance of the project manager (the director of operations), the steering committee and the working team collaborated with the architect in developing the new teaching facility. The group made determinations on such mat- ters as internal and external design and color elements, furniture, and teaching equipment.

The team kept all stakeholders (i.e., students, faculty, and staff) in- formed throughout the process, especially on matters concerning

new technology {e.g., rhe choice of a new server). A major challenge for the team was to ensure that the school continued to function and that new sections of the building became available to provide ad- equate space for an expanding stu- dent body. The team also arranged regular site visits so that all could see the project’s progress and appre- ciate that their patience in working adjacent to a construct.ion site was being rewarded.

Project Recruit. As another consequence of the introduction of the English program, the school augmented its recruiting effort. Although recruitment would nor- mally be part of regular market- ing activities, the administration thought a specific project should be designated for the purpose of re- cruiting candidates for the opening of the new program. The project’s target was to recruit two classes of English-speaking students by Au- gust 1996 to complement the exist- ing four sections of French speak- ers. The goal was achieved, and more than 60 candidates took the entrance examination for the Feb- ruary 1997 semester.

Originally a short-term project, the recruiting effort proved to be vital for the long-term. viability of the English program, because intro- ducing a new program in the com- petitive (and largely undifferenti- ated) hospitality-educasion market is not an easy matter. The project’s rationale was compelling, how- ever, and the school has attracted a steady and increasing stream of applicants for the required entrance examination. The Sept:ember 1997 exam drew 50 successfit candidates from a pool of 112 applicants, and well over 100 applicants are ex- pected in February 1998.

Project Accredit. Closely linked with the project to expand the school is the effort to establish EHL’s qualifications internationally,

with particular reference to North America. ~though EHL’s program has long been perceived as high quality by other educators, it needed to gain recognition for that excellence through accreditation. The project has resulted in initial accreditation being awarded in December 1997 from the New England Association of Schools and Colleges through the Commis- sion on Career and Technical Institutions.

Project Internet. Two addi- tional projects were added to the initial five. Project Internet, initi- ated through the director of the consultancy and training division, resulted in more than 80 pages being posted on EHL’s web site. The web pages describe courses and services, as one might expect, but the web site also has services for alumni, the internship office, career services, and information from the Centre for Information in HGtellerie. Having set up the site, Project Internet was concluded and website maintenance is part of on- going school operations.

The web site has grown to well over 90 pages in both English and French, with the addition of pages for the career and placement off& and the magazine (see below). Now under the supervision of the direc- tor of marketing, the web site is being reorganized for more facile navigation and to reflect a consis- tent style as part of the EHL family of documents.

Project Fundraising. This project involves identifjring likely partners willing to develop rela- tionships with the school by fund- ing research, scholarships, and en- hancements to in~astructure.

A Change in Culture The changes at the school have affected everyone’s working life to some degree. Any one of the changes discussed above might have

78 CORNETS HOTELANDRESTAURANTADMINISTRATIONQUART~RLY

constituted a substantial change in culture, but the administration rec- ognized that the decision to con- vert the school to bilingual educa- tion would have far-reaching consequences.

As a result the school conducted a thorough training-needs analysis for the faculty and support-staff members who would be working with the English-speaking students.

The training-needs exercise re- vealed that most faculty and staff members were enthusiastic about improving their language skills. Perhaps this should not be a sur- prise, given that Switzerland has four official languages. To fine-tune people’s English skills, the school sponsored the following initiatives.

l Intensive two- to three-week language-study programs in the United Kingdom;

l Study weeks in other hotel schools where instruction is in English;

l Regular English-language study programs; and

l Brief, focused language classes for conversation with two or three participants, held three times weekly. Administrators were reassured

by employees’ enthusiasm for learn- ing English. The short classes in particular integrated traditional Francophone chefs, housekeepers, and professors who sought an op- portunity to hone their English skills.

In the second phase of the training-needs assessment all staff members were evaluated for their skills in understanding spoken and written English. Individuals were placed on one of four skill levels, taking individual needs into con- sideration. The task should not be underestimated-imagine that your organization, which has always conducted business in English, will be operating in Italian or German next week and you must assure

your new clients that they will have similar access to services as your existing clients.

Project management. An- other cultural change is that the decision-making process was al- tered by project management. Compared to times past, decisions are now made with input from more stakeholders through project- steering and working committees. The result is that the individual project directors and their working groups have been able to influence the school’s strategic direction. A key change over rhe traditional arrangement in academe is that junior faculty members might end up playing a central role and re- porting directly to the company president through the steering committee. This form of empow- erment makes the school better able to develop strategy.

As with any system, project management has its imperfections or potential pitfalls. Communica- tion is essential in the process, for instance. People not directly con- nected with the projects have to be informed of the developments in and rationale behind the projects, or they may feel left out. If com- munication is absent, staff members may feel irrelevant or even threat- ened. To foster communication, the school produces an in-house news- letter, “Info Projects,” to give spe- cific information about the projects. Moreover, the in-house glossy magazine, Marmite (or “Melting Pot”) carried regular features on the projects. Another potential problem-one regarding roles and responsibilities in the organiza- tion-has not surfaced but could produce future conflict. This might occur, for example, when a senior manager chooses not to accept the authority of the project manager over a given project.

Projects can soulever de la poussi?re-raise some dust-in

areas outside the project itself. Such an influence can be interpreted as a sign of the inherent richness of the system, which demands answers to specific questions. With the intro- duction of English-language in- struction and HES status, the ratio- nale underpinning existing courses had to be made explicit and justi- fied. This is another area that may require tact and diplomacy in the face of entrenched interests.

One serious consideration of project management is the role of the project manager after the pro- ject’s completion. A survey pub- lished in L’Essential du Management found that two of three firms did a poor job of reintegrating their project managers to the workforce.” The organization should give care- ful consideration at the outset of what duties the project manager will hold after the project is concluded.

Perspectives

The system of project manage- ment used at Ecole HGteli&re de Lausanne is an effective model that could be used at other educational institutions. The overall improve- ment in effectiveness more than compensates for the initial effort required to communicate the changes and reassure members of the organization regarding the ef- fect on them of project manage- ment. The emphasis at 1’Ecole Hbteliitre de Lausanne has been on creating a responsive institution that is in touch with the international hotel industry and, consequently, can effectively fulfill its mission of producing credible, operationally competent managers who are able to think strategically, solve prob- lems, and speak on equal terms with financiers and investors who increasingly decide the industry’s direction. CQ

” “Noveaux Projects,” p. 85.

February 1998 l 79