Wednesday, 29 January 2014

How internal competition destroys Knowledge Management in the hotel business


Here is a really interesting short video story from Ted Teng, the CEO of Leading Hotels of the World, talking about how Knowledge Management in the hotel chain can be undermined by a culture of internal competition, driven by reward schemes.

He says
"If you look at our industry, there's certain practices that were designed to motivate or to challenge people to do better, which end up being more competitive in terms of its nature. 
"Simple programs like Hotel of the Year within a group, General Manager of the Year. Instead of competing against a bar where everyone can win, they end up competing with each other. 
"So hotel A does not want to share with hotel B because performance is not absolute, it is relative and if you to be successful, to be good, to be better, you can make the others worse by not sharing with them or you can prevent them from sharing to the world in terms of what they have done really well. The label "bragging", it's a label you put on people so that it will discourage them from sharing what they're doing well, what they're proud of. 
"So there are certain social systems within the industry that limits the sharing of knowledge, which is unfortunate".

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