Friday, September 25, 2009

Hyatt exposed

Hyatt Hotels has been getting a lot of press the last few days for firing housekeeping staff after instructing them to train "vacation replacements" that turned out to be lower cost contract workers who would soon take their jobs. Thanks to Sara Peterson @ Megaphone for pointing me to this HBR Editor's Blog post by Paul Michelmanon assessing the damage.

What are the odds that Hyatt's marketing leadership was aware of the plan to sweep out the housekeeping staff in this fashion? In our transparent marketplace, the marketing department needs to do more than make the ads and brochures. They must be engaged in operational decisions that directly impact the brand. The ramifications from these "simple economic decisions" are often more impactful than any ad or brochure. Today "marketing" is more about brand behavior than glossy images. Wake up Hyatt.

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