An organization's health and longevity depends on its ability to adapt and grow in ever changing environments. Boyne Mountain and Boyne Highlands have experienced their share of steady growth. Boyne USA resorts offers sport and leisure enthusiasts magnificent playgrounds with an enticing menu of four season attractions. These range from snow sports, water sports and golfing to real estate opportunities that are designed to thrill generation after generation. Like many great American success stories, Boyne's founder Everett Kircher started out in 1947 with a dream. That dream carried Mr. Kircher and Boyne Mountain to the top of the skiing industry.

>> And with one small ski area at the time with only skiing being the focus, dad was the owner, the president, and he was the guy that would shovel the snow off the chair lifts. He was the head engineer. He was the head chef. He was the guy that set marketing policy, head marketer. He was the head of everything, and every decision basically emanated from his desk and his mind.

>> Boyne's business started with a vertical organizational structure. Authority and strategic decisions typically came from Everett Kircher's centralized command, essentially from the top down. With Boyne's steady and rapid growth, decentralization was possible. This allowed decision making authority to be moved down to the most appropriate level below in the hierarchy.

>> He began to have to relinquish certain decision making processes to GMs, and strong GMs at the locations at Boyne Highlands, or at Big Sky. As we evolved into the 90s and saw a lot quicker growth and more locations coming on it became apparent that we had to decentralize the decision making even further.

>> There are various approaches to structural design within organizations from vertical hierarchies and divisional groupings to matrix designs with dual lines of authority. Companies can also follow team and network approaches to reach their goals. Today, Boyne USA Resorts has two major divisions, Boyne East and Boyne West. Boyne East hosts four season resorts that also include real estate investment and developments. Boyne West primarily hosts premier day ski resorts including Cypress Mountain, recently named a venue for the 2010 Winter Olympics in Vancouver, British Columbia.

>> Clearly it got more complicated as time went on and we've had to adapt our structure to our current circumstances.

>> [Background Music] After Everett Kircher passed away in 2002, Boyne's leadership environment changed. The family business was prepared for official title changes with the East and West divisions. Eastern operations would be led by Stephen Kircher, and Western operations would be his brother, John Kircher. Each area is treated like an autonomous business doing what they do best. Boyne's general managers and VPs are empowered with critical decision making authority. In addition, another divisional change occurred in 2004, which brought together VPs and general managers.

>> General Manager structure which is what we call the mayors of towns at each location, but adding to that subject matter experts; people that really knew certain aspects of the business be it food and beverage, ski, golf, retail, and then real estate as well. Those disciplines you know are critical to be competitive to be on their own, their own right, and by having people that were passionate and knowledgeable and leading in their industries in those areas it helped improve our sophistication.

>> Employees report to people knowledgeable in their area of expertise. They have enhanced their focus on customer needs, and on recruitment and retention of talent. This helps Boyne maintain a high level of customer satisfaction. Successful management depends on having the proper strategy, environment, and technology that enable a service or product to expand. Unpredictable weather, such as lack of snowfall, requires managers to adapt plans on short notice. It also fostered an alternative competitive strategy for being leaders in snowmaking technology. Another example is the launch of Boyne Mountain's Avalanche Bay indoor water park. As Boyne East increases their revenue streams this new attraction will strategically increase sales in a year-round market accustomed to enjoying Boyne's state of the art facilities. It also provides reliable indoor entertainment when the weather conditions aren't ideal.

>> And there you go.

>> Boyne' staff is now trained with techniques for excellence in customer service. Boyne Basics is an example. Managers were inspired by Marriott International, a business partner, to put themselves in the place of their customers. For example, they have reminder cards informing team members, "Don't just point the way, show a guest the way." Boyne managers also encourage the staff to use the resort's facilities; this is not only a perk, but it empowers each employee with product knowledge and promotes a culture called the Boyne way of life. Their company structure supports this level of careful attention to customers.

>> It talks to the you know big picture goals we have. It talks to the daily interaction with customers that we expect. You know we try to teach that you know it's up to you the front lines people every day in terms of satisfying those customers.

>> As companies like Boyne expand structure must follow strategy. By diversifying their resorts throughout North America, Boyne has become stronger than many of their competitors. Boyne's approach to organizational structure is intentional, proactive, and subject to change. Through management practices, Boyne has shown that adapting to their environment pays off. Their company grew from revenues of $40 million in 1990 to over $200 million in 2005, and they're confident that this strategy will support future growth. Boyne USA Resorts allure and success continues to outpace their competition. Boyne's projections for the future are as ambitious as Everett Kircher's dream, which evolved from his modest ski hill into the largest privately owned four season resort company in North America today.

Boyne USA Resorts offers sport and leisure fanatics brilliant playgrounds with an appealing menu of four season attractions. These range from snow sports, water sports, and golfing to real estate opportunities that are designed to thrill generation after generation. Boyne Resorts was created in 1947 by Everett Kircher and began with a vertical organizational structure. As Boyne's experienced steady and rapid growth, decentralization was possible. Boyne Resorts was split into two autonomous businesses, Boyne West and Boyne East, after Everett Kircher passed away. Each business focuses on what they do best.

After watching the video answer the following questions:

1, Discuss how Boyne Resorts ensures customer satisfaction.

2. Describe how Boyne Resorts has adapted to the wants and needs of consumers.

3. How has the decentralization of authority led to higher customer satisfaction and a more pristine reputation?