It goes without saying that productivity is linked to the bottom-line of an organization and is contributive as well to continuous improvement towards a better quality of service and positive colleague engagement. Our conception of productivity analysis has always had a negative connotation Productivity measurement pushes leaders to review their processes on a permanent basis. Low productivity may indicate that the company organizational structure is not appropriate for a constructive work process. It may not be linked to lack of talent or training or efficiency/overmanned. High productivity allows as well a better guest satisfaction as our guests nowadays expect fast service combined with warmth. Most companies tend to measure business KPI’s such as ADR, REVPAR, LOS, Occupancy rate and MPI and CPOR. The impact of the pandemic has forced leaders to adapt the organization to continuous economic and environmental disturbances evolving around us. Understanding your organization on the tip of your finger becomes a must to navigate safely your business. Thus, the importance of having meaningful metrics in place.
Elite Inspired hospitality believe that KPIs should be broken down in the following segments:
- Brand engagement KPI’s (online ratings such as media likes, abandonment rate, bounce rate, conversion rate comments and shares, blogs and video downloads, returning visitors, NPS, virality rate, website traffic, guest sentiment score, DRR)
- Employee engagement KPIs (attrition, Employee engagement score, performance appraisal score)
- Revenue KPI’s (Total Revenue, Average spent per occupied room, Gross Operating profit per department, MPI, RGI
- Operational KPI’s (Cost per occupied room, Food Cost, Bev cost, utilities, payroll costs, distribution costs)
- Productivity KPI’s will be the key to future performance as Net Operating profit will be the true metric for all stakeholders of the organization. Hence productivity has to become part of the culture of performance as a team and not a sanction to punish employees. It is the duty of leaders to ensure that productivity is clearly understood by their team and communicate the importance of their effort serving as a contributor to the organization’s performance. Metrics have to be simple and meaningful for easiness in communication to the team. Leaders need to support both accuracy and simplicity in figures. Senior leadership expertise is a very crucial criteria to reposition your property during this challenging times of Covid. You will require leaders who master their areas. They will give you true visibility of the state of things and they would need to have gone through the experience of crisis in order to assist you setting your organization for success rapidly. We go back to the old saying “The only source of knowledge is experience “Albert Einstein” for both leaders and line team.
As a summary, Elite Inspired Hospitality suggests that productivity metrics be used tools to strategize and not used as an instrument of fear towards leaders or team members. Hence if you give a challenge to a front desk agent on how many transactions he performed compared to the day before and him understanding the transaction between week end and week day operations, revenue transacted per hour you know that you have achieved a big win. Bellman should understand how many pieces of luggage and average transaction time has an impact on guest satisfaction instead of giving them a KPI that they cannot correlate to their daily functions. Various strategic technologies are currently available in the market to create a hassle free functional tactical operational tool for all levels to connect. They should be adapted to your needs to not take a cookie cutter solution. By choosing the right technology, you are also able to create commitment towards a culture of performance, therefore fulfillment for all our stakeholders (guests, owners, employees, suppliers and community).
Our next article we will cover some dynamic KPI’s to look into and set up. We will also share with you our corporate social responsibility indicators in our next catch-up which become an indicator for committed and successful companies of the future.Elite Inspired Hospitality can support you in adopting the strategic drive towards a cultural productivity approach and
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