Cardinal Health senior
manager of global travel and meetings management Jill Huffman has managed
travel for six years at Cardinal Health. In the past 18 months, however, she
not only has globalized the travel program and implemented global meetings
management with internal support organizations, she did it all as Cardinal Health
made 15 acquisitions and expanded to 60 countries. BTN commends this
work and her suppliers say they are "in awe" of her energy and
efficiency, but something else Huffman achieved in the midst of this rapid-fire
growth and program implementation stood out: She improved hotel program
compliance by more than 60 percent. Huffman told BTN editor-in-chief Elizabeth West how she did it.
BTN:
Improving your hotel program and driving compliance all started with data. Tell
us about that.
Huffman: You can't talk to your suppliers if you don't
have data. My first initiative at Cardinal Health was to make sure we had data.
I looked at hotels, airlines, car, everything, but there wasn't much. So I
started pulling reports from the different suppliers and pretty soon my desk
was a mass of reports. I needed to make sense of it.
I took the analytics tool we were using for [accounts
payable] data and worked with the supplier to build a travel cube off of it.
The big thing was that neither my company nor my third party had worked with
travel data in this way, so it was something very new, creative. My director
and I really had to think about the [data] dimensions we wanted to put into the
tool to get the outputs that would allow us to manage our programs the way we
wanted. I'm still tweaking the tool as our program goals change.
BTN: So you
put in the hotel data—from suppliers, your TMC, from credit card, etc. What did
you find?
Huffman: I saw compliance levels at about 26 percent
or 29 percent for the hotel program. I thought, "Wow, you're not doing
well here."
BTN 2016 Best Practitioner Jill Huffman
BTN: You didn't
just start a compliance initiative as a result, though. You rebuilt the hotel
program on the foundation of your data cube. Expand on how you did that.
Huffman: I worked with real estate to find out what
markets we are in; we are in 342 markets in the U.S. When I looked at the
number of room nights in each market, I found that people were not going to the
preferred properties. I started by looking at the properties where most people
were staying, under the assumption that they were the best locations. They made
the short list, but we still needed to take it down to two or three hotels per
market.
BTN: So how
did you do that? You can't visit 342 locations.
Huffman: We started talking to local stakeholders and
identified someone willing to help us build the hotel program. We identified
safe neighborhoods by ZIP code within a five-mile radius of our location. They
toured the facilities. As part of Cardinal's [employee recognition] program, I
was able to give our local stakeholders "bravos" and "thank yous"
and kind of a kudos every time they went and looked at a new hotel for us. That
whole process, and including them as key partners in sourcing the program,
created a new level of engagement, and the local markets are helping us to
manage compliance.
BTN: Do you
send them reporting?
Huffman: Actually, yes. We pull actual hotel booking
reports from the travel cube every Monday for bookings made the prior week.
Based on ZIP code, flagged preferred hotel properties and price, the tool gives
us a list of all compliant bookings. The tool flags compliant bookings that
didn't get the correct rate, so we can go back to the hotel. Next, it pulls all
the noncompliant bookings. If the ZIP code is OK and the price is lower, it's
still compliant even if the property is not preferred. Everyone else on that
report will receive an automated email that says they are noncompliant and asks
them to change their reservation.
To your question, though, we do send these reports to the
local stakeholders so that they can see if people coming to their facilities
are staying in preferred properties. Imagine if you're walking in the door of
the distribution center and the administrative assistant asks, "Why did
you stay at that hotel? That's not a preferred." It's going to make a big
difference.
BTN: I bet
you had a lot of phone calls after you started sending all those emails.
Huffman: There are always reasons, whether they
booked another property because of a room block [for a meeting] or there was no
availability. We understand that, but most of the time we just needed to tell
them that we want to ensure their safety and that we've vetted these
properties. But once we got through those early stages, we saw a huge dip in
how many people were going outside the program, and it's not that there was any
penalty or reprimand associated with it. It was more about awareness. Plus,
they just didn't want to be on that report.
What I really liked was that it opened communication and
people started to talk to us about the program. For example, we learned more
about sellout markets, where even though it's a small market for us that
normally might require only two preferred hotels, we might need to source more
because of the sellout situations. It also opened the door for us to get more
traveler feedback because people would pick up the phone or they would email us
and tell us what was happening in those markets.
BTN: I know
you've also incorporated traveler surveys and use weighted feedback to measure
hotel performance, but tell me the end result of your compliance efforts.
Huffman: We're
at 84 percent to 86 percent nationally. At one point at our corporate office,
we were over 90 percent, which was huge for us.