Marriott International: Change Management and Strategy
This paper examines key aspects of change management at Marriott International, one of the world's largest hotel chains. It traces two pivotal shifts in management style — the 1992 corporate split and the 2011 CEO transition from Bill Marriott to Arne Sorenson — and evaluates senior management's role in preparing the organization for leadership change. The paper also discusses Marriott's use of vendors and spokespersons for corporate communications, considers beacon technology as a potential innovation for improving employee efficiency and guest experience, and reviews the organization's long record of adaptive responses to shifting market conditions and consumer needs.
- Introduction: Overview of Marriott and paper scope
- Changes in Management Style: 1992 split and 2011 CEO transition analyzed
- Senior Management's Role in Preparing the Organisation for Change: Bill Marriott's grooming of Sorenson as successor
- Use of Vendors and Spokespersons: Corporate communications and vendor cost strategy
- Innovation: Beacon Technology: Beacon tech benefits for guests and employees
- Adaptive Ability: Marriott's history of responding to market change
- Conclusion: Change management credited for Marriott's global success
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What makes this paper effective
- The paper grounds each analytical point in specific historical events — the 1992 corporate split, the 1970s diversification drive, and the 2011 CEO succession — giving abstract management concepts concrete organizational anchors.
- It balances internal factors (management philosophy, leadership transitions) with external ones (market dynamics, technological change), demonstrating an understanding of both strategic and operational dimensions of change management.
- The writing consistently connects evidence to broader claims, such as linking Marriott's employee-oriented culture to its competitive success in a volatile industry.
Key academic technique demonstrated
The paper applies a multi-lens approach to organizational analysis, drawing on change management theory (Hayes, 2014) alongside primary business sources to evaluate real corporate decisions. This demonstrates how academic frameworks can be used to interpret and assess actual managerial practice rather than simply describe it.
Structure breakdown
The paper is organized into six thematic sections following a brief introduction: management style changes, senior leadership's role in transitions, vendor and spokesperson use, a technology innovation proposal, adaptive capability, and a brief conclusion. Each section is self-contained but contributes to a cumulative argument about Marriott's effectiveness as a change-adaptive organization.
Introduction
Marriott International is one of the largest hotel chains worldwide. Headquartered in Bethesda, Maryland, the organisation has over 5,700 properties spread across more than 100 countries. Throughout its nine decades of operation, the organisation has undergone numerous changes in terms of management, processes, and corporate and business strategy. This paper discusses a number of change-related aspects of the organisation. These include two key changes in management style, the role of senior management in preparing the organisation for its most recent change, the use of vendors and spokespersons, an innovation that could positively impact employees and customers, and the organisation's ability to adapt to the changing needs of customers and the market environment.
Changes in Management Style
Marriott has been in operation since 1927. Though the organisation has undergone several changes in management style over its history, two key changes occurred in 1992 and 2011. In 1992, Marriott split into two divisions: Marriott International and Host Marriott Corporation (Marriott, 2013). The former would offer management services to hotel owners while the latter would retain firm-owned properties. This marked a momentous change for the organisation. The company would now focus on management contracts and franchise agreements rather than hotel ownership. In fact, the majority of the organisation's revenue today comes from offering management services and franchising (Touryalai, 2013). This has enabled the organisation to minimise the risks associated with hotel ownership. The shift of focus from hotel ownership to management services also prompted a number of changes in the organisation's management structure — for instance, each division would have its own board of directors and administrative system (Marriott, 2013).
In 2011, the organisation's long-serving CEO Bill Marriott stepped down in favour of Arne Sorenson. This marked a major change in management style. Bill had historically been described as a hands-on manager, a style largely inspired by his father, the founder of the organisation (Touryalai, 2013). His management approach was characterised by leading from the front, a significant degree of micromanagement, and inclusive, participatory decision-making. Bill's employee-oriented style saw the organisation generate positive employee outcomes over the years. From its inception, the organisation has been a firm believer in the adage: "Take care of your employees, and they will take care of your customers."
Sorenson, the first non-family member to serve as CEO in the organisation's history, brought a different style of management. He is, in many respects, the opposite of Bill — a hands-off manager (Touryalai, 2013). His approach is characterised by a greater degree of delegation and autonomy. For Sorenson, a multinational organisation such as Marriott requires a substantial amount of decentralisation.
The tremendous success of the organisation speaks to the effectiveness of its management. That success evidently reflects sound strategising and decision-making. The hotel industry is one of the most dynamic industries, constantly challenged by threats such as terrorism and shifting consumer tastes and preferences. Marriott has weathered these challenges over the years, growing from a small, family-run root beer business to an international hotel chain — clear evidence that the organisation is well managed.
Senior Management's Role in Preparing the Organisation for Change
The role of senior management in preparing an organisation for change cannot be overstated. Top management plays a crucial role in communicating the vision and urgency for change, addressing employee concerns arising from that change, and mobilising the required support (Hayes, 2014). This is important for minimising resistance to change and ensuring the success of any change initiative. One of the most significant recent changes at Marriott was the leadership transition from the long-serving CEO Bill Marriott — a member of the founding family — to Arne Sorenson, a non-family member. Bill had served as CEO for approximately four decades, making the transition a defining moment in the organisation's history.
The transition proved remarkably seamless. With a people-oriented philosophy, Bill invested considerable time and effort in preparing the organisation for its new CEO. Sorenson had joined the organisation over two decades earlier after being handpicked by Bill himself. He quickly rose through the ranks, was appointed president after a few years, and became CEO in 2012. The transition happened smoothly because everyone in the organisation had time to think about it over several years (Evans, 2016). Although Sorenson formally assumed the CEO role in 2012, the process of grooming him for leadership began three years earlier, when Bill announced to the board his intention to prepare Sorenson as his successor (Berzon, 2011). Bill's approach to the transition made it easier for the organisation to accept Sorenson, thereby avoiding the difficulties typically associated with leadership changes.
Conclusion
On the whole, Marriott continues to occupy a prominent position in the global hotel industry. The organisation's success can in large part be attributed to effective change management. With competent leadership and a demonstrated capacity for adaptability, the organisation has grown from a small, family-run root beer business to a powerful international hotel chain.
References
Berzon, A. (2011, December 14). Marriott CEO to step down. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/SB10001424052970203430404577097083490921006
Evans, C. (2016, August 5). The many sides of Marriott's Arne Sorenson. Surface. Retrieved from http://www.surfacemag.com/articles/power-100-hospitality-arne-sorenson
Hayes, J. (2014). The theory and practice of change management. London: Palgrave Macmillan.
Mandelbaum, A. (2015). Hotel technology innovations that will drive business in 2016. Retrieved from http://www.hospitalitynet.org/news/4072364.html
Marriott, J. (2013). Without reservations: How a family root beer stand grew into a global hotel company. U.S.: Diversion Books.
Touryalai, H. (2013, July 15). Marriott's upgrade: New CEO Arne Sorenson freshens up the brand for millennials. Forbes. Retrieved from http://www.forbes.com/sites/halahtouryalai/2013/06/26/marriotts-upgrade-new-ceo-arne-sorenson-enlivens-the-hotel-giant-aims-for-1-million-rooms/#4cf866dc5dd1
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