Challenge

Following the acquisition, the company’s top priority was to integrate headquarters functions in advance of the deadline set by the transition service agreements (TSA). The travel teams of both companies would need to move fast. To unify its travel management services and supporting infrastructure, they would need to come together with a shared vision around the future travel program and its alignment with the global travel policy.

The two companies each had global programs supported by the same TMC. Nonetheless, the perspective of each team was driven by vastly different cultures, profiles and outcomes.  The parent company’s travel program was well supported by its TMC and its own internal travel team, which was focused on travel and procurement. The newcomer’s program reported up through finance and was less mature –  being more focused on expense management than travel operations. They felt disconnected from and under-supported by their TMC account team.  Therefore, they were reluctant to transition to the global contracts, services, and technology infrastructure used by the parent company – only to remain with a TMC they regarded to be underperforming.

Areka was tasked with supporting the decision-making, project planning, implementation and change management required to successfully launch an expanded program -- all within the time constraints of the TSA deadline. The project doubled the spend (from US$ 35 to US$ 70 million).  It would include 50 countries, 40 points of sale, 10 online booking tools and several offline countries. It was January 2023 – just 12 months to go.

Stakeholder Resistance Challenged Project Success

The relationship between the supplier and the newcomers was so tense that bonds had been damaged. It was essential to reset expectations, design a recovery plan, and rebuild the trust between them prior to rollout – all within a strict timeline.

Response

Areka immediately undertook discovery to familiarize themselves with the organization, the travel program, key stakeholders, and their ways of working. During this period, the team listened carefully to the unmet needs of the newcomers – and they built trust, which was paramount to a successful mission.

After bringing stakeholders together around the current and desired states, priorities and potential risks, Areka had the data and documentation needed to move on to the next steps:

• Execute global policies and procedures
• Identify areas of improvement with respect to procurement and traveler behavior
• Build a detailed improvement plan with the TMC and newcomers’ stakeholders to rebuild the supplier’s relationship and trust
• Design and launch a communications plan that included campaigns and training designed to build internal relationships with all stakeholders, introduce new tools and operational improvements and influence behavior for improved compliance and program engagement
• Manage the TMC and OBT transition project on time and on budget

Unique approach

With hindsight, Areka helped the client identify where to focus throughout the process:

As a leading T&E practitioner, we assigned personnel who had the specific expertise and skillsets required for customer success; drawing from our experience working with others, we introduced best practices, identified opportunities and mitigated risks.

As unbiased experts, we offered an external perspective to all stakeholders, helping to unify perspectives and support the decision-making process. Service recovery by the TMC in the eyes of the newcomers was essential.  We balanced a deep understanding of client priorities, supplier constraints and capabilities, to design the optimal service plan and workflow.

As expert project and change managers, we delivered the project on time, deploying a comprehensive change management plan to influence behavior, stakeholder buy-in and sustainable results.

By providing ongoing support, expertise, and advice, Areka changed the way stakeholders of the newly bought entities rated the TMC and its ability to serve customers at every level. Their perception of the TMC changed from that of a low performing supplier to that of a key partner.

Results & key metrics

1. Introduced acquired entity to buyer’s global travel program
2. Expanded from 10 to 50 markets
3. Moved 6 markets to the global OBT
4. Spend under management grew from US$ 35 to US$ 70 million
5. The TMC is now seen as key partner by all key stakeholders and entities
6. Enabled relationship building required for successful project delivery in 12 months