Arise Essay

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HARVARD l"usrNEss lscu MICHAEL BEER LYNDA ST. CLAIR ARISE: A Destination-for'a-Da rations at Dallas-based ARISE, and VP of business operations Sam All-Star Team organizational design that Solti would be stormy. They would be evaiuating Thompson had developed in August 2010 and in September. The plan was created, after the first year of operations, to stem nega and reduce tumover. Now, with two years of operations completed, the spa was sQ red turnover was higher than ever. Clearly, it was time to revisit the All-Star Team of the business-and to make some tough decisions" Driving to work on May 27,201,1,, Twyla Thompson, VP suspected that her 9:00 au meeting with CEO Kri As she entered the spa, -scented air and earth-tone decor of the sunlit lobby. Everything appeared but tfie reality was that the business was struggling. Staffing issues were espec rs had built ARISE's differentiation strategy on the idea of retaining a staff -time alists, called personal wellness coaches (PWCs), who would provide spa trea ts, help create "integrated health and happiness plans," and keep in touch with clients VlSI help them achieve their goals. Low turnover was essential, both for building customer for controlling labor costs. However, PWC turnover stood at 37%by the end offhe"first year ffi Exhibit 1a)-although much better than the industry average of 75%, rt was still to achieve the organization's goals. Thompson's All-Star Team design had attempted to add concerns, but turnover continued to climb. By the end of Year 2, only 31 of the 83 Thompson w a include related to Industry spas serve a range of shifting customer demands for wellness and beauty services. These flalty treatments for the body, skin, hair, and nails, as well as help with personal goals ition, fitness, and stress reduction, The first systematic analysis of the industry in2007 spas as
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