Green Mountain

Topics: Resort, Hotel, Change management Pages: 7 (2551 words) Published: February 4, 2013
Green Mountain Resort (Dis)solves the Turnover ProblemPlease help with the following case study found in the textbook: Managing Organizational Change: AMultiple Perspectives Approach written by Ian Palmer, Richard Dunford, and Gib Akin (2006). Pleaseanswer questions in detail.Green Mountain Resort (Dis)solves the Turnover ProblemGreen Mountain Resort was not expected to be in business for very long, not that anyone was makingpredictions. It was a small resort with golf, tennis, and, most notably, some skiing-on machine madesnow for the most part-set in the Appalachians. It was a fair distance from major population centersand had none of the history of the famous southern spas of an older era, places like the Homestead.But it didn't have to stand fully on its own: it was built as a draw for buyers of vacation homes at GreenMountain. The resort was the center of sales hospitality and an attractive amenity of home ownership.Being a property owner got you membership in the resort with ski passes, discount golf, and the like.Salespeople pointed to the resort as a symbol of their commitment to community: they were not justselling lots; they were offering a lifestyle.Of course, the salespeople also knew that when the real estate sold out, the function of the resort as asales tool would disappear along with the sales staff, and, if this were like other similar developments,the resort would lose its luster and perhaps even go out of business. The resort wasn't there forvacationers but for buyers. Soon, there would be no more buyers. And soon after that, the resort wouldhave to make it on its own, as only a resort. The top management of Green Mountain at this time came to the operation when the originaldevelopers failed. They were sent in by the investment bank that had financed the original operationto put the place in order and get it sold. But the bank's workout team fell in love with the rural beautyand lifestyle and bought it themselves. Actually, it was a very complex plan that structured eventualownership for the homeowners, with part ownership by the remaining management company thatwould continue to run the operation. The former bankers were committed to building an actualcommunity, one they wanted to stay in themselves, and to having the resort become a first-classoperation on its own. They were explicit about their goal: make sure that Green Mountain, thecommunity and the resort, didn't go to seed when the land sold out.With the new structure, the resort manager was an owner. He decided to stay on, motivated by hisownership share as well as the opportunity to have his own show, no longer just an adjunct to sales.Gunter had been part of the original management and had expected to eventually leave for anotherresort job, enacting a pattern typical in the hospitality industry. But now he was an owner, not just andemployee and he had a vision of a first-class mountain resort. The architecture of the lodge, and of most of the vacation homes, was more up-country that ski-country. In contrast to this uniquely American look was Gunter, in his Tyrolian hat, his accent recallinghis native Austria. He didn't wear lederhosen but would have looked natural in them. His wife, Hilde,actually had blond braids, and when they were together, you could only imagine that they were off ona hike to an Alpine meadow. Their house was perfectly Teutonic, immaculate, and welcoming in a waythat made you think you shouldn't touch anything. Gunter was nothing if not rational. That is why Gunter was worried about the turnover of staff. Green Mountain Resort was in a beautifulrural country, but that county was also the poorest in the state. That meant that it was hard to findgood employees locally, and those that were good, whether local or imported, didn't stay long. Highturnover meant added training, plus the predominance of novice staff. And it was mainly the bestservice people who moved on, leaving behind the poorest performers. That, Gunter knew,...
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