While some sectors are struggling with SLOW and delayed processes, in many ways the hospitality and multifamily sectors are –by force- moving at unprecedented speed to carpe the diem and capture the immense opportunity available today in these sectors.
This is the final article in a four-part series. Today we will explore the hospitality sector. If you’d like to hear more about the Analysis Paralysis in Workplace Decisions or The Not-So-Hidden Culprits Behind Approval Bottlenecks in Education, or Healthcare Spaces: The Paradox of a Slow Process in Fast Times, please check out our previous articles in this series, or our full podcast mini-season on the future of customer decision making.
In this article, we explore similarities found in ThinkLab data between the hospitality and multifamily sectors, drawing from six months of research with decision makers for the built environment from hundreds of companies, including hospitality clients like IHG, Marriott, Hilton, and Chick-fil-A. And developers including Core Spaces, RXR, Sterling Bay, and LG.
This new research stems from a Design Hackathon, ThinkLab’s biggest research project of the year. This year, the topic was the future of customer decision making. While fascinating research from Gartner, Forrester, McKinsey and others cover the broader B2B world, ThinkLab data shares unique nuances of decisions specific to OUR industry.
The goal of our research is to provide tools to drive conversations with your project teams as well as insights about how their partners can respond in new and innovative ways. Here’s what we found:
Their Process is Accelerating and Adapting in Response to Change
The decision-making process in the hospitality and multifamily sectors has undergone significant transformation. Leaders in these fields described the process today using words like pivoting, compressed, hurried, agile, chaotic, flexible and adaptable. Many underlined the need for more speed to market and the need to change and streamline the existing process in response. There’s so much opportunity, and to seize it, they MUST find ways to move faster.
For instance, Hallie Hannaford from Chick-fil-A emphasized the importance of adaptability, noting that market changes require solutions to be implemented swiftly to support new models in food delivery that emerged from the pandemic. These changes required Chick-Fil-A to shift how they’ve traditionally thought about fast food spaces. Similarly, Carrie Manami, a design director, highlighted the need for new design ideas to accommodate the evolving ways people use and occupy many hospitality spaces as a result of hybrid work.
What is the ‘bad word’ turned must-have? Value-engineering.
We said earlier, to succeed today these teams need to move FASTER. But that can be a bit of a snowball effect. Achieving internal alignment at the outset of a project is crucial. In the hospitality sector, teams often expand as projects progress, involving brand teams, investors, owners, and even guests. Early alignment among key stakeholders—owners, managers, and brands—is essential to avoid misunderstandings later. However, in today’s inflationary environment, even if all are aligned at the outset, with rising costs, by the time a project is ready to install, today’s process requires extensive rework.
Value engineering (VE), once considered a negative term, is now essential. Project partners who embrace VE early and think creatively about cost-saving measures are highly valued. The best partners are those who proactively manage to a budget and offer alternatives. Balancing cost management with quality and longevity is a delicate but necessary task.
“The thing I value most from project partners is a willingness to be early in the project and think about VE creatively,” notes one anonymous podcast interviewee. Early engagement and creative problem-solving are key to managing costs effectively.
So, what are the challenges that are prolonging the decision process for these sectors?
Navigating Internal Alignment
Ensuring everyone is on the same page from the beginning helps streamline the process and reduces friction as the project evolves.Insight: “One of the pain points is nailing down the budget and design intent from the outset,” says Carly, a project manager podcast interviewee.
Cost Pressures
Cost pressures are a significant challenge, particularly with accelerated timelines. Aligning teams through initial designs and subsequent redesigns is difficult, especially in the current economic climate. Balancing cost management with quality and longevity is a delicate but necessary task.
Insight: “Budget always has a huge weight on our process. We’re thinking about durability and longevity, especially in hospitality,” explains Carrie.
Leveraging Data for Decision-Making
The need for data to inform decisions is more critical than ever. However, the complexity of modern projects, especially post-COVID, makes this challenging. Designing for new needs while moving quickly requires balancing innovation with proven solutions.
Insight: “Clients want to see where ideas have been implemented before. They want proof, but also innovation,” says Luke Roberts, creative director at LG Group. This balance is essential for successful project outcomes.
Conclusion
The demand for speed to market and flexible, innovative solutions is paramount. By understanding these pain points and embracing value engineering, stakeholders can better navigate the complexities of modern project environments. These insights highlight the evolving landscape of hospitality and multifamily sectors and underscore the importance of navigating internal alignment, relieving cost pressures and leveraging data for innovation. As these industries continue to transform, staying informed and responsive to changes will be crucial for success.
If you’re interested in learning more -or hearing quotes directly from the source- we invite you to listen in to the full episode, or check out the full four-part mini season featuring episodes on corporate, healthcare, education, and healthcare. Happy listening!
Editor’s Note: Amanda Schneider, LEED AP, MBA founded ThinkLab, the only research entity wholly focused on the built environment. She’s a respected thought leader featured in prestigious publications including The Huffington Post, Forbes, MIT Sloane Management Review, Interior Design Magazine, and more. She is a sought-after keynote speaker, and the host of the popular podcast, Design Nerds Anonymous. Join in to explore what’s next at thinklab.design/join-in.