Transcript Document 7130135

Developing Leader for Change &
Innovation in Tourism
28th June 2010
Performance Optimisation in the
Hospitality Industry
Andrew Agius Muscat
The Indians of Peru (1524)
...they believed that their future would be similar to their experiences of the
past ...
The Corporate Environment
• Dynamic Markets impacting
the Corporate Environment
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Politics
Economy
Social Environment
Technology
• We live in a World where the
only constant is Change
• Adaptability and Flexibility are
the crux for success
• Systematic information is the
key to success
Political
Economic
Organisation
Structure
Social
Technology
What Is Hospitality?
• Many peoples’ definition of hospitality
extends only to restaurants and hotels
• In reality, it goes far beyond this and includes
any organisation that provides food, shelter
and other services to people away from home
• When viewed in this light, the hospitality
industry can be quite large and far reaching
• Also, the numerous career opportunities
become readily apparent
Primary Sectors
• So, what are some of the primary sectors
within the hospitality industry? They include:
– Lodging (not just limited to traditional hotels)
– Foodservice (not just limited to restaurants)
– Gaming operations
– Private clubs
– Theme parks
– Destination management companies
Primary Sectors (continued)
– Meetings and conventions (planning and
operations)
– Managed park environments (natural)
– Resorts
– Senior living
– Managed Services
– Consulting services
THE MANAGER’S ROLE
The role of the manager is critical in creating the
environment in which the following will occur:
• Making the guest feel welcome
• Making things work for the guest
• Maintaining a profitable (or “fiscally responsible”)
operation
• Manage Systems
What is a System?
• A system is a set of related parts coordinated to
accomplish a set of goals
• The function of a system is to convert or process
the inputs to achieve useful outputs
– Example: a car is a system
• Petrol is input
• The engine represents the process
• Movement represents the output
• The motor car is also subject to external factors
in the environment such as road surface, the
steepness of the ground, the wind speed, etc....
Key features of a system
• Inputs
– People, energy, materials, equipment, money or
data
– These inputs may be received individually or in
combination and can originate from a number of
diverse sources
Key features of a system
• Process results from receiving inputs
– Some form of conversion activity is carried out,
with the aim of adding value to that input to
produce an output
– Example: machining, sorting, storing, calculating
etc…
Key features of a system
• Outputs
– Once processing is complete, the finished,
processed product or service which results is
passed out to the environment
– Example: Delivery of goods to customer or
transmission of information to a sub-system
Key features of a system
• Boundary
– The system boundary separates the system and
its components from its environment
– Example: Garden wall (physical) or the business
unit (invisible) or the accounts office
Key features of a system
• Environment
– A system’s environment is defined as those
external elements of a system
– Most systems operate within the context of an
environment and interacts with it by receiving
inputs from it and delivering outputs to it
Open systems
• An open system is one that interacts with its
environment
• A part of the system output is returned as an
input to the system as feedback
• Example: inventory level is checked, that
output is fed back as input to report to
calculate shortage quantity.
Performance Optimisation
• What cannot be measured cannot be managed
– Foundations for Performance Management
• Organisation Design, Job descriptions and Manpower
Planning
– Performance Management Tools
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MIS
Balanced Scorecard
Benchmarking
Performance Appraisal
– Change For Optimisation
• BPR
Performance Optimisation in the
Hospitality Industry
Organisation Design, Job Descriptions
and Manpower Planning
Architects of Performance Optimisation
The Corporate
Environment
Structure
Roles and
Responsibilities
Planning
Structures
Trends In Organisational Design
• Organisations are becoming flatter with
fewer levels of management.
• Organisations are increasing
decentralisation and reducing staff.
• Organisations are increasing delegation
and empowerment.
• Organisations are reengineering
work processes for greater efficiency.
Trends In Organisational Design
• Decentralisation
– Top management allows lower levels to make many decisions
• Empowerment
– Gives people the freedom to do their jobs as they think best
• Delegation
– The process of entrusting work to others
Three Steps in Delegation
1. Assign responsibility—explain task and expectations to others.
2. Grant authority—allow others to act as needed to complete task.
3. Create accountability—require others to report back, complete task.
Span of Control
• The number of persons directly reporting to a manager
Trends In Organisational Design
• Bureaucracy
– Emphasizes formal authority,
rules, order, fairness and
efficiency
• Mechanistic Designs
– Are bureaucratic, using a
centralized and vertical structure
– perform best in stable
environments with mostly
routine and predictable tasks.
• Organic Designs
– are adaptive using a
decentralized and horizontal
structure
– perform best in change
environments requiring
adaptation and flexibility.
Nature of Organisational Design
• Organisational culture is the personality of the
organisation.
• Successful organisations tend to have strong and
positive cultures.
• The observable culture is what you
see and hear as an employee or
customer.
• The core culture is found in the
underlying values of the
organisation.
Characteristics of Successful and
Strong Organisational Cultures
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Emphasize teamwork.
Allow and support risk taking.
Encourage innovation.
Make well-being of people a top management
priority.
• Strong cultures are clear,
well
defined, and widely
shared among members.
Nature of Organisational Design
Core Culture
– Beliefs and values shared by an organisation
Core Values at KPMG
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We lead by example.
We work together.
We respect the individual.
We seek the facts and provide insight.
We are open and honest in our communication.
We are committed to our communities.
Above all, we act with integrity.
Nature of Organisational Design
S C O R E S—How to read an organisation’s culture
– S - How tight or loose is the structure?
– C - Are decisions change oriented or driven by the
status quo?
– O - What outcomes or results are most highly valued?
– R - What is the climate for risk taking, innovation?
– E - How widespread is empowerment,
worker involvement?
– S - What is the competitive style, internal
and external?
Position Descriptions
Position Descriptions
• Why do we need them?
• Communication
– Employees know what is expected in job
– Defines accountability
• Organisational Efficiency
– Helps eliminate duplication of
responsibilities
– Identifies hiring criteria
Use of Job Descriptions….
• Performance evaluation
• Training needs
• Recruitment
• Clear understanding of jobs
• Clear positioning of individuals
Writing of job descriptions
• Recognise the role in the Organisation
Structure
• Involve people – interviews
• Write specifically what the job is
about
• use simple language
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keep it accurate and up-to-date
Sections on Job Description
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Position Title
Department
Position Summary
Lines of Communication
Functions
Job requirements
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Skills
Knowledge
Qualities Qualifications
Education
Experience
• Career Path
Job Summary
• Brief overview of the reason the position exists
• Written in broad terms identifying functions of job, but
not the specifics
• Easier to write after the essential functions are
determined
• Think of as an essay question:
“Describe the essence of the job
in 30 words or less
Essential Functions
• Identifies the functions that are essential to
the existence of the position
• Functions should be arranged in order of
importance
• Use action verbs to begin each
function
Organisational Relationships
• Identify positions reporting directly and
indirectly to the position
• To what position(s) does this position report
• List frequent and occasional contact, i.e.,
employees, outside agencies.
Minimum Requirements
• Education/Experience
– Identify what education and experience are minimally
required to successfully carry out the essential function of
the job
– Remember to think in terms of the “position” not the
“person”
• Licenses, Certifications, etc
Knowledge, Skills and Abilities
• Identify specific KSAs needed to successfully
perform the essential functions of the job
• Only list the KSAs needed to achieve the
desired results, not those the ideal candidate
might possess
Knowledge, Skills and Abilities
• Use examples from the job to help define the
KSAs concisely.
– Ability to interact effectively with visitors, administration,
and staff
– Knowledge of applicable laws and regulations
– Skills in computer hardware repair and troubleshooting
Working Conditions
• Physical Demands
– Physical activities
– Lifting weight and exerting force
– Vision requirements
• Work Environment
– Exposure to extreme conditions,
i.e. weather, chemicals
– Noise level
Career Path
• Criteria for promotion
• Grades / Scales
• Performance appraisals
Planning
Manpower Planning
• Manpower Management is choosing the proper type of
people as and when required.
• It also takes into account the upgrading in existing people.
• Manpower Management starts with manpower planning.
• Every manager in an organisation
is a personnel man, dealing
with people.
Definition and importance of
Manpower Planning:
• To Fail to plan is to Plan to fail
• Planning is nothing but using the available assets for the effective
implementation of the production plans.
• After the preparing the plans, people are grouped together to achieve
organisational objectives.
• Planning is concerned with coordinating, motivating and controlling of
the various activities within the organisation.
• Time required for acquiring the material, capital and machinery should
be taken into account.
• Manager has to reasonably predict future events and plan out the
production.
Definition and importance of
Manpower Planning:
• The plans need to be supported by all the
members of the organisation.
• Planning is making a decision in advance what is
to be done.
• Nothing carved in stone
Advantages of manpower planning:
1. It is useful for organisation.
2. It generates facilities to educate people in the organisation.
3. It provides smooth working even after expansion of the
organisation.
4. It opens possibility for workers for future promotions, thus
providing incentive.
Advantages of manpower planning:
5. It creates healthy atmosphere of encouragement and
motivation in the organization.
6. Training becomes effective.
7. It provides help for career development of the
employees.
Steps in Manpower planning
1. Predict manpower plans.
2. Design job description and the job requirements
3. Find adequate sources of recruitment.
4. Best motivation for internal promotion.
5. Look after the expected losses due to retirement, transfer and other
issues.
6. See for replacement due to accident, death, dismissals and
promotion.
Factors which affect the efficiency of
labour:
1. Inheritance: Persons from good collection are bound to work
professionally. The quality and rate of physical as well as mental
development, which is dissimilar in case of different individuals is
the result of genetic differences.
2. Climate: Climatic location has a definite effect on the efficiency of
the workers.
3. Health of worker: worker’s physical condition plays a very important
part in performing the work. Good health means the sound mind, in
the sound body.
4. General and technical education: education provides a definite
impact n the working ability and efficiency of the worker.
Factors which affect the efficiency of
labour:
5. Personal qualities: persons with dissimilar personal qualities bound
to have definite differences in their behaviour and methods of
working. The personal qualities influence the quality of work.
6. Wages: proper wages guarantees certain reasons in standard of
living, such as cheerfulness, discipline etc. and keep workers satisfy.
This provides incentive to work.
7. Hours of work: long and tiring hours of work exercise have bad
effect on the competence of the workers.
The Future
Francisco Pizzaro
Performance Optimisation in the
Hospitality Industry
Performance Optimisation
- MANAGEMENT INFORMATION SYSTEM-
Management Information Systems
• A management information system (MIS) is a system or
process that provides the information necessary to manage
an organiSation effectively.
• A MIS and the information it generates are generally
considered essential components of prudent and reasonable
business decisions.
• Efficient management information systems (MIS) enable
management to:
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plan,
co-ordinate,
organise and
control
The MIS parameters
• MIS is viewed and used at many levels by
management.
• MIS provides the information needed for:
– strategic planning; and
– day to day operations
Defining Strategy
• “The art of planning and directing large
military movements and the operations of
war.”
• In business, a strategy maps out the future,
setting out which products and services you
will take to markets – and how.
• A strategic plan establishes how to sell
products and services to specific markets
excellently and competitively.
The Strategic Framework
• Analyze information to understand your position
• Identify your competitive advantage
• Define the scope of your products and markets
• Decide where you want to focus your resources
• Identify, prioritize and implement change
• Continuously monitor performance and review strategy
Measuring strategic success
• The success of a strategy must be measurable.
• Strategic information requirements include data
on:
– business ratios (ROCE; Ratios of debt to interest
payable on borrowed money;
– current trends in external capital markets;
– the firm’s liquidity position;
– aggregate cash flow forecasts;
– market research etc…
Tactics
Tactical goals focus on how to operationalize
actions necessary to achieve the strategic goals
Vision
Strategy
Tactics
Tactical Information
• Tactical information needs might involve
ratios of:
– profits to working capital
– Stock to current assets
– Sales to output
– Rates of return on specific investment profits
– Information on production bottlenecks, capacity
constraints etc…
PERSPECTIVES TO INFORMATION
Debtors and Suppliers
An important MIS function is to highlight potential
difficulties with debtors and suppliers
What, for example is the average delay between delivery
of goods and the issue of invoices?
How quickly do customers settle their accounts?
What are the effects of offering discounts for prompt
payment?
What is the ratio of creditors to purchases?
How long, on average, do suppliers take to deliver goods,
and to what extent can payments to suppliers be delayed?
Other categories of information that an MIS should
supply include the following:
Market information
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Effectiveness of sales personnel;
Responsiveness of sales to price changes;
Market trends;
Behaviour of competitors;
Adequacy of distribution channels.
HR information
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Leave (sick or vacation)
Overtime
Injuries
Males and Females
Age for succession planning
Training events
Discipline
Financial information
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Whether budgets are being adhered to;
Length of trading cycles;
Adequacy of cash inflows;
Need for external financing.
Work in progress information
• Ratios of work in progress to production,
stock to sales, etc…
• Identification of slow moving stock;
• Frequency and causes of stock-outs;
• Stockholding costs;
• Causes of machine breakdown and other
interruptions in production.
MIS AIMS AND BENEFITS
MIS Goals
• An institution's MIS should be designed to achieve the
following goals:
– Enhance communication among employees.
– Deliver complex material throughout the institution.
– Provide an objective system for recording and aggregating
information.
– Reduce expenses related to labor-intensive manual
activities.
– Support the organisation's strategic goals and direction.
– Performance optimisation
Installation of an MIS
• To install an MIS it is necessary to consider:
– when, how and to whom information has to be
transmitted; and
– how best to summerise data in a form that
enables its fast and accurate evaluation prior to
taking decisions.
Management Hierarchy
Detailed
Information
Top
Management
Middle
Management
Front line Management
Benefits of MIS
• MIS also enhances performance management
throughout an institution.
– At the most senior levels, it provides the data and
information to help the board and management make
strategic decisions.
– At other levels, MIS provides the means through
which the institution's activities are monitored and
information is distributed to management, employees,
and customers.
• Because MIS supplies decision makers with facts,
it supports and enhances the overall decision
making process.
Effective MIS
• Effective MIS should ensure the appropriate
presentation formats and time frames required by
operations and senior management are met.
• MIS can be maintained and developed by either
manual or automated systems or a combination of
both.
• It should always be sufficient to meet an institution's
unique business goals and objectives.
• The effective deliveries of an institution's products and
services are supported by the MIS.
• These systems should be accessible and useable at all
appropriate levels of the organization.
MAKING DECISIONS
Analysing decision-making
• A decision is a judgement or choice between two
or more alternatives, and arises in an infinite
number of situations from the resolution of a
problem to the implementation of a course of
action .
• Part of a manager’s role is having to make a
series of large and small decisions.
• Reaching the right decision in every situation is
an ambition is well worth striving to achieve.
Analysing the decision process
Identify
issues
Undertake
analysis
•What exactly has to be decided?
•What are the alternatives?
Evaluate
options
•What are the pros and cons?
Identify
choices
•Which alternative is the best?
Implement
plans
•What action needs to be taken?
Information and decision-making
• The process of decision making depends on having
access to accurate, detailed information.
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Timely
Accurate
Relevant
Cost effective
• Systematic methods of reaching decisions can assist
creativity.
– A systematic approach enables you to prepare a logical and
effective plan of action so that your decision process can
be explained clearly to any colleagues or clients who are
affected.
Information and decision-making
• All objections should be taken seriously when
making decisions.
• Taking a well-understood, acceptable risk is
preferable to taking unknown chances.
• It is better to think systematically than to
jump to conclusions.
• Avoid making decisions that have a large
element of chance in them.
Decision support
• Effective control requires the collection,
summary and evaluation of data prior to taking
decisions.
• A decision support system (DSS) comprises an
integrated collection of computing tools for
solving problems and taking decisions.
• Key elements of a DSS are:
– a database containing factual information;
– a spreadsheet;
– modelling and graphics programs; and
– Programs for data manipulation and statistical analysis
Decision support
• DSS software provides a framework for breaking problems
down into constituent parts plus a means for specifying
decision criteria;
• ‘What if’ and other sensitivity analyses then become
possible;
• Managers using DS systems are able to call up and instantly
summerise huge quantities of data, may formulate models
for analysing likely consequences of various courses of
action and can select the criteria on which final decisions
will be based.
• Accordingly, the managers involved need to know the
models and software available;
• Their assumptions, uses and limitations, and about
hypothesis testing and elementary operations research.
RISK MANAGEMENT
Risks
• Risk reflects the potential, the likelihood, or the
expectation of events that could adversely affect
earnings or capital.
• Management uses MIS to help in the assessment of
risk within an institution.
• Management decisions based upon ineffective,
inaccurate, or incomplete MIS may increase risk in a
number of areas such as credit quality, liquidity,
market/pricing, interest rate, or foreign currency.
• A flawed MIS causes operational risks and can
adversely affect an organization's business going
concern.
Risk Management
• MIS is a critical component of the institution's overall
risk management strategy.
• MIS supports management's ability to perform such
reviews.
• MIS should be used to recognize, monitor, measure,
limit, and manage risks.
• Risk management involves four main elements:
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Policies or practices.
Operational processes.
Staff and management.
Feedback devices.
Operational & Informational MIS
 Frequently, operational processes and feedback devices are
intertwined and cannot easily be viewed separately.
 The most efficient and useable MIS should be both operational and
informational.
 As such, management can use MIS to measure performance,
manage resources, and help an institution comply with regulatory
requirements.
 One example of this would be the managing and reporting of loans to
insiders.
 MIS can also be used by management to provide feedback on the
effectiveness of risk controls.
 Controls are developed to support the proper management of risk
through the institution's policies or practices, operational
processes, and the assignment of duties and responsibilities to staff
and managers.
MIS and technology
 Technology advances have increased both the availability and
volume of information management and the directors have
available for both planning and decision making.
 Correspondingly, technology also increases the potential for
inaccurate reporting and flawed decision making.
 Because data can be extracted from many financial and transaction
systems, appropriate control procedures must be set up to ensure
that information is correct and relevant.
 In addition, since MIS often originates from multiple equipment
platforms including mainframes, minicomputers, and
microcomputers, controls must ensure that systems on smaller
computers have processing controls that are as well defined and as
effective as those commonly found on the traditionally larger
mainframe systems.
ACHIEVING SOUND MIS
Achieving Sound MIS
• The development of sound MIS is the result of
the development and enforcement of a culture
of system ownership.
• An "owner" is a system user who knows current
customer and constituent needs and also has
budget
• authority to fund new projects.
• Building "ownership" promotes pride in
institution processes and helps ensure
accountability.
Cost benefit
• Although MIS does not necessarily reduce
expenses, the development of meaningful
systems, and their proper use, will lessen the
probability that erroneous decisions will be
made because of inaccurate or untimely
information.
• Erroneous decisions invariably misallocate
and/or waste resources.
• This may result in an adverse impact on earnings
and/or capital.
MIS DIFFICULTIES AND
EFFECTIVENESS
Practical Difficulties
Relevant information might not reach the right
people.
Managers commonly assume that colleagues and
subordinates have been informed of particular facts when,
actually, they have not.
Breaks in the chain of command.
Information should flow vertically through the enterprise
from its top to its bottom via the channels illustrated in its
organisation chart. Often, information ‘bottlenecks’ occur
at supervisory and middle management levels since
supervisors and middle managers not only receive
information from above (and have to decide whether to
act on it) but also collect feedback from lower levels.
Practical Difficulties
• Breaks in horizontal flows. Horizontal flows
of information among colleagues of equal
rank may be interrupted if certain individuals
deliberately conceal information or – through
incompetence – do not pass it on.
MIS TOOLS
Tools for Performance Measurement
• Financial Budgets
• Introduced in 1992
• Robert Kaplan and David Norton
• is the most commonly used framework for ensuring that agencies
execute their strategies
• today, about 70% of the Fortune 1,000 companies utilise the Balanced
Scorecard to help manage performance.
• Definition:
• The Balanced Scorecard is a management tool that provides
stakeholders with a comprehensive measure of how the organistion is
progressing towards the achievement of its strategic goals.
The Balanced Scorecard; Why?
The Balanced Scorecard:
• Balances financial and non-financial measures
• Balances short and long-term measures
• Should contain just enough data to give a complete picture of
organizational performance… and no more!
• Quantifies the Agency Strategy in measurable terms
• Leads to strategic focus and organizational alignment.
• Must capture a cause-effect relationship between strategic
objectives over the four perspectives on the Strategy Map.
The Balanced Scorecard; Why do it?
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To achieve strategic objectives.
To provide quality with fewer resources.
To eliminate non-value added efforts.
To align customer priorities and expectations with the customer.
To track progress.
To evaluate process changes.
To continually improve.
To increase accountability.
The PO* Focused Organisation
• Mission –
What we do
• Vision –
What we aspire to be
• Strategies –
How we accomplish our goals
• Measures –
Indicators of our progress
*PO = Performance Optimisation
Environmental Scan
Strengths
Weaknesses
Opportunities
A Model for
Strategic
Planning
Threats
Values
Mission &
Vision
Strategic Issues
Strategic Priorities
Objectives, Initiatives, and Evaluation
The Strategy Focused Organisation
• The Five Principles
1. Translate the strategy to operational terms.
2. Align the organisation to the strategy.
Source: The Strategy Focused Organization, Norton & Kaplan
The Strategy Focused Organisation
• The Five Principles (cont.)
3. Make strategy everyone’s job.
4. Make strategy a continual process.
5. Mobilise change through executive
leadership
Source: The Strategy Focused Organization, Norton & Kaplan
The Balanced Scorecard and The Big
Picture
Strategic
Planning
Mission
and
Vision
Balanced
Scorecard
•Activity Based Costing
•Economic Value Added
•Forecasting
•Benchmarking
•Market Research
•Best Practices
•Six Sigma
•Statistical Process Control
•Reengineering
•ISO 9000
•Total Quality Management
•Empowerment
•Learning Organization
•Self-Directed Work Teams
•Change Management
Strategic Direction
Create Environment
For Change
Strategic Performance Management System
Communicate Strategies
Define Objectives
Implement BSC
Balanced Scorecard
Measure Performance
Improve Processes
Linking it all together….
Evaluate and Adjust
Continuous Improvement
Redefine Initiatives
Four Views of Performance
Strategic Objectives
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Strategy can be described as a
series of cause and effect
relationships.
Provides a “line of sight” from
strategic to operational activity
– working on the “right” things.
Stakeholders
“If we succeed, how will we look to
our stakeholders?”
Internal Processes
“To satisfy our customers, at which
processes must we excel?
Learning & Growth
"To execute our processes, how must our
organization learn and improve?"
Agency Investments
“In order to succeed, what
investments in people and
infrastructure must we make?”
Examples of Measurements by Perspective
Stakeholder / Customer
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Current customer satisfaction level
Improvement in customer satisfaction
Customer retention rate
Frequency of customer contact by customer
service
• Average time to resolve a customer inquiry
• Number of customer complaints
Learning and Growth
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Percentage employee absenteeism
Hours of absenteeism
Job posting response rate
Personnel turnover rate
Ratio of acceptances to offers
Time to fill vacancy
Internal Processes
• Number of unscheduled maintenance calls
• Production time lost because of maintenance
problems
• Percentage of equipment maintained on schedule
• Average number of monthly unscheduled outages
• Mean time between failures
Investments
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% of facility assets fully funded for upgrading
% of IT infrastructure investments approved
# of new hire positions authorized for filling
% of required contracts awarded and in place
Why Measure?
• To determine how effectively and efficiently
the process or service satisfies the customer.
• To identify improvement opportunities.
• To make decisions based on FACT and
DATA
Measurements Should:
• Translate customer expectations into goals.
• Evaluate the quality of processes.
• Track our improvement.
• Focus our efforts on our customers.
• Support our strategies.
Selection Criteria for Performance Measurements
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MEANINGFUL - related significantly and directly to organizations mission
and goal
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VALUABLE – measure the most important activities of the organization
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BALANCED – inclusive of several types of measures (i.e. quality, efficiency)
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LINKED - matched to a unit responsible for achieving the measure
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PRACTICAL – affordable price to retrieve and/or capture data
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COMPARABLE – used to make comparisons with other data over time
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CREDIBLE - based on accurate and reliable data
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TIMELY - use and report data in a usable timeframe
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SIMPLE -- easy to calculate and understand
Targets
“If you don’t know where you’re going, you’re
probably not gonna get there.”
Forrest Gump
Targets
• Targets need to be set for all measures
•
Should have a “solid basis”
•
Give personnel something for which to aim
•
If achieved will transform the organization
•
Careful not to develop measures/targets in a fragmented
approach:
i.e. Asking people to increase customer satisfaction has to be
backed up with the knowledge, tools, and means to achieve
that target.
Initiatives
• Once measures and targets are established, it
is the responsibility of management to
determine HOW the organisation will achieve
its goals.
• Measures are used to determine
effectiveness of strategic initiatives.
the
The Leadership Team
• Develops the division’s vision, strategy and
goals
• Develops organisational objectives and
targets
• Provides leadership, endorsement and vision
for the project
• Clears barriers to scorecard progress
The Core Team
• Drafts the strategy map and scorecard
• Works with employees to develop measures
supporting strategic objectives
• Works with the Leadership Team to plan and
implement the Balanced Scorecard in the FAS
Division
The Importance of Alignment
Complete Framework for IRPS
Strategy
Agency
Department
Team/
Individual
Objectives
Measures
In order to be successful, the
Agency’s Targets should . . .
• Be comprised of a balanced set of a limited vital few measures;
• Produce timely and useful reports at a reasonable cost;
• Display and make readily available information that is shared,
understood, and used by the Agency; and
• Supports the organisation’s values and the relationship the
organisation has with customers, suppliers, and stakeholders.
A Closer Look at How Things Link
Transportation Safety Example
Mission:
Protect people and property
Strategic Goal #1:
Reduce damage caused by motor vehicle accidents
Annual performance goal 1A:
Reduce deaths per crashes to 1.10 per
100m miles traveled by 2005
Measure: Fatality rate per 100m miles traveled
The Balanced Scorecard as a
Management System
• BSC reviewed regularly to enhance
operational decision-making
• Success of initiatives assessed based on
DATA… not opinions
• Leading indicators evaluated to confirm
accuracy of assumptions
The Balanced Scorecard as a
Management System
• The BSC is a “Living Document” that requires
regular revision of objectives, measures and
initiatives:
• How are we doing?
• Are we measuring the right things?
• What initiatives do we need to get us where
we want to go?
• Have our organizational goals changed?
Performance Optimisation in the
Hospitality Industry
Benchmarking
What is Benchmarking
• Benchmarking is an improvement process that
is used to identify best practice within a peer
group and facilitate it’s incorporation into your
organisation.
Why best practice
• Best practice refers to techniques, methods or
processes that are more effective at delivering
a desired outcome.
• Incorporating best practice into your
organization can lead to greater efficiency and
effectiveness and a happier customer.
Benefits of Benchmarking
• Benchmarking helps identify the gaps between the
organisation that is undertaking the benchmarking
assessment and best practice.
• Undertaking benchmarking can lead to
improvements being incorporated into processes and
systems delivering gains in efficiency and
effectiveness
• Benchmarking can help align improvement activity
with strategic goals and objectives
The Benchmarking process
•
Benchmarking has a defined process
1.
2.
3.
4.
5.
6.
7.
Identify the process that will be benchmarked – consider what
metrics will be measured
Measure results in own organization
Identify a benchmarking partner (look for one with favourable
results or to the metric being measured or known best practice)
Measure the process
Analyse the conditions that determine the favourable results
Determine an action plan to take your organisation to the favourable
results
Review Benchmarking results and conduct regular reviews with your
peer(s).
Problems with Benchmarking
• Problems with benchmarking occur where
– Data is not obtained for the process being measured – and
analysis becomes subjective
– No peer group/best practice identified (including data
available)
– The gap between current state and best practice is
captured but nothing is done about it
– Assumed best practice isn't best practice
– Benchmarking happens as a one off event and not
reviewed periodically
The importance of data
• In order to measure the gap between the
measuring organization and best practice
quantifiable measures need to be taken
• This requires data
• Unless this method is followed results can be
subjective and inaccurate
• Follow on improvement activity can have
negligible impact
Using your Peer-group
• Benchmarking relies on a partner organization or
“peers” which will be measured against.
• Peers could be a different group in the same
organisation (e.g two purchasing departments in a
multinational organisation) or a completely separate
company
• The importance is measuring your performance
against another “peer” with a different standard
Benchmarking doesn’t stop
• Benchmarking should be viewed as a
continuous improvement method
• Regular reviews of performance should be
taken especially if improvement activity is
underway to transition to “best practice”
• Regular reviews of the peer group should be
taken to cater for any changes/improvement
made
Performance Optimisation in the
Hospitality Industry
Performance Appraisal
Performance Management
 Performance appraisal: the measurement and
assessment of an employee’s job performance
 Performance management: the integration of
performance appraisal systems with other HRM
systems for the purpose of aligning the employees’
work behaviors and results with the organisation’s goals
 Example: link an employee’s pay increase to the employee’s
job performance
 To do this, we have to measure the employee’s job performance
 Goal: Improve the organization by improving the
employees’ work behaviors and results
127
Performance Management
An iterative process of goal-setting, communication,
observation and evaluation to support, retain and develop
exceptional employees for organizational success.
Set Goals
Communicate
Evaluate
Observe
Why Manage Employee
Performance?

To reach organizational mission and goals


Encourage and reward behaviors aligned with
organizational mission and goals
Curb or redirect non-productive activities
What do Employees Expect?
• Clear expectations
• Positive/constructive feedback
on a regular basis
• Involvement in goal setting
• Be treated fairly and
consistently
• Sharing of information and
resources
• Job/career enrichment
opportunities
Your Experience
Think about your last
review:
– What thoughts come to
mind?
– What went right, what
went wrong?
Performance Management Cycle
Development Tool
Administrative Tool
Source of figure: Adapted from Fisher, Schoenfeldt, & Shaw (2006), Figure 10.1, p. 421
132
Functions of Performance Appraisal
• Employee Development Tool
– Goal setting: Set performance goals for each
employee
• Involve the employee in goal setting
• Make the goals specific, concrete, & measurable
– Example goals (some of many) for a retail store manager:
» Sales goal for year = €2 million
» Customer satisfaction goal = average rating of 4.5 on 5-point
customer satisfaction rating scale
• Make the goals difficult but achievable, challenging but
realistic
• Empower employees to achieve their goals
133
Functions of Performance Appraisal
• Employee Development Tool (more)
– Provide feedback to reinforce & sustain performance
• Employees need to know how they are doing
– Provide help & advice to improve performance
• Be a coach in addition to being a boss
– Assist employees in achieving career progression goals
– Determine training needs
• Do employees have job performance deficiencies for which
training would be an effective remedy?
134
Functions of Performance Appraisal
• Administrative Tool
– Link rewards to performance
• Examples: pay increases, promotions, demotions,
terminations, disciplinary actions, etc.
• Goal: Create incentives to motivate employees to
increase their performance
– Evaluate HRM policies & programs
• Example: Evaluate a training program: Measure job
performance before and after training to see if
performance improved
135
Criteria for Effective Performance
Appraisal Systems
• 1. Validity: are we measuring the right thing?
– Are we really measuring job performance?
• We want to measure important (“relevant”) aspects of job
performance, in a way that is free from extraneous or
contaminating influences, and that encompasses the whole
job (i.e., our measures of job performance are not
“deficient”: we aren’t leaving out important aspects of job
performance)
• 2. Reliability: consistency of measurement
– Example: inter-rater reliability
• If two people observe a particular employee’s job
performance, do they agree in their rating of the employee’s
performance?
136
Criteria for Effective Performance
Appraisal Systems
 3. Freedom from bias
 It does not illegally discriminate (race, sex, age, etc.)
 It is free from rating errors (intentional or unintentional):




Leniency errors
Severity errors
Central tendency errors
Halo errors
 4. Practicality
 The benefits the organization gets from using it should
outweigh the costs of developing & using it
 Utility analysis
 It should be relatively easy to use
 It should be accepted by managers and employees
137
Types of Performance to Measure
• What aspects of an employee’s job
performance can we measure?
– We have 3 basic choices:
• Results produced by the employee
– Example for a salesperson: Amount of sales (€) in the past
month
• Behaviors of the employee
– Example for a salesperson: Number of sales calls in the past
month
• Traits of the employee
– Example for a salesperson: Friendliness
138
Types of Performance to Measure
 Results-based (results-oriented): measure the
results produced by the employee
 Examples for a retail store manager (examples of some
results for which the store manager has responsibility
and so should be held accountable):




Sales of the store
Profit per square foot
Inventory shrinkage
Customer satisfaction
 Makes sense for most jobs
 Results matter (usually)
139
Types of Performance to Measure
• Results-based (more)
– Challenges:
• Which results are relevant may not be obvious for all
jobs
• Some results are not under the employee’s control
• May foster a “results at all costs” mentality
• May interfere with teamwork
• May be difficult to provide effective feedback
140
Types of Performance to Measure
 Behavior-based (behavior-oriented): measure the
employee’s behaviors
 Examples for a retail store manager:




Good attendance
Completes management reports correctly & on time
Monitors customers and employees for theft
Coaches employees to welcome customers to the store &
offer assistance within 3 minutes, and to thank customers as
they leave
 Conducts regular sessions with employees to develop
teamwork
 Makes sense for many jobs
 Use it where how the employee produces results matters
141
Types of Performance to Measure
 Behavior-based (more)
 Advantage: Makes it easier to provide effective
performance feedback to employees
 Examples for a retail store manager:
 Feedback with results-oriented performance appraisal: “You didn’t
achieve your sales goal.” (Measured by sales reports)
 Feedback with behavior-oriented performance appraisal: “You are
allowing your employees to wait too long before offering help to
customers.” (Measured by observations of a secret shopper)
 Challenges:
 Difficult to capture the full range of relevant behaviors
 Different behaviors can lead to the same results
 We may not always care which behaviors were used
142
Types of Performance to Measure
 Trait-based (trait-oriented): measure the employee’s
personal characteristics
 Examples for a retail store manager:




Ability to make decisions
Loyalty to the company
Communication skills
Level of initiative
 This is usually a bad idea for several reasons:
 Poor reliability & validity of measures of traits
 Weak relationship between traits and job effectiveness
 Measurements of traits are more likely to be subject to biases
(sexism, racism, ageism, etc.)
 Hard to use traits to provide effective feedback
143
Types of Performance to Measure
 So, in most cases, we want to measure the job
performance of an employee in terms of the
results and behaviors of the employee
 Make a list of results & behaviors that are relevant to
the job
 Starting point: Use the job description to identify the
essential tasks of the job
 Example task statement on job description for a Retail Store Manager:
“Manage inventory shrinkage.”
 Translate the tasks into results & behaviors
 Example (continued): Measure the amount of inventory shrinkage in
the store (a result)
144
Performance Appraisal Methods
• Once we decide which results & behaviors we
want to measure, we next need to decide how
to measure those results & behaviors
– We have 3 categories of choices:
• Objective measures of performance
• Subjective measures of performance
• Management By Objectives
145
Performance Appraisal Methods
 Objective measures: measure an employee’s job
performance in terms of things we can see and
count with no (or minimal) use of opinion
 Production measures: count units produced by an
employee
 Sales measures: count the sales (€) of an employee
 Personnel data: count things in the employee’s
personnel file
 Examples:
 Number of times late to work
 Number of times absent
 Number of disciplinary actions taken
146
Performance Appraisal Methods
 Objective measures (more):
 Performance tests: for an employee, evaluate work samples
or simulations under standardized conditions
 Example: for an airline pilot, program a flight simulator with
specific flight conditions to test if the pilot handles it correctly
 Business unit performance measures: for managers who are
responsible for a business unit, measure their performance
by measuring the performance of the business unit they
lead
 Examples:
 Market share of the business unit
 Profit measures for the business unit: profits & profit rates (return on sales,
return on assets, return on equity)
 Stock price
147
Performance Appraisal Methods
 Subjective measures: measure an employee’s job
performance using human judgment
 Ranking: subjectively rank employees from best to worst
 Example:
1. Bob
2. Carol
3. Ted
4. Alice
 Note carefully that the ranking is in terms of subjective opinion
(e.g., who is your best salesperson overall?), not objective factors
(e.g., which salesperson sold the most?)
 Note the ranking requires you to compare one employee to
another
 Problem: it can be hard to determine the subjective ranking
position of employees who are in the middle (it all blurs together)
148
Performance Appraisal Methods
• Subjective measures (more)
– Rating scale (graphic rating scale): subjectively
rate the employee’s job performance on a labeled
numeric measuring scale
• Rating scales are perhaps the most commonly used
method of subjectively evaluating an employee’s job
performance
• Before we use a rating scale to subjectively rate an
employee’s job performance, we need to:
– Identify the aspects of job performance (results & behaviors)
that are to be evaluated (rated) using the rating scale
– Develop the rating scale itself
149
Performance Appraisal Methods
Rating Scale Examples
• Examples of a 5-point scale:
– 5 = Excellent
4 = Very satisfactory
3 = Satisfactory
2 = Unsatisfactory
1 = Very unsatisfactory
– 5 = Greatly exceeds standards
4 = Exceeds standards
3 = Meets standards
2 = Below standards
1 = Far below standards
Rating Scale Examples
• Example of a 7-point scale:
– 7 = Truly exceptional
6 = Excellent
5 = Very good
4 = Good
3 = Satisfactory
2 = Unsatisfactory
1 = Very unsatisfactory
150
Performance Appraisal Methods
 Subjective measures (more)
 Rating scale (more)
 The same rating scale can be used to rate:
 Overall job performance, and
 Multiple specific aspects of job performance
 Some aspects of job performance can be measured
objectively and subjectively
 Example: Quality of work
 Objective measure: defect rate (percentage of units produced
by an employee that fail inspection)
 Subjective measure: subjectively rate the quality of the
employee’s work using a 5-point rating scale
151
Performance Appraisal Methods
 Subjective measures
(more)
 Rating scale (more)
 Example: MSU Course
Evaluation Form
 Note how the same 5-point
rating scale is used to
evaluate several different
aspects of the professor’s job
performance:
 Course as a whole
 Instructor’s contribution to
the course
 Use of class time
 Etc.
152
More Examples of Rating Scales
 Decisions:
 Use a graphic or just
use words?
 Label all the points on
the scale, or just label
some?
 Odd or even number
of points on the
scale?
 Fewer points on the
scale, or more points
on the scale?
Source of figure: Fisher, Schoenfeldt, &
Shaw (2006), Figure 10.6, p. 449
153
Performance Appraisal Methods
• Management By Objectives (MBO): evaluate
employee job performance in terms of the
extent to which the employee achieved each
of his or her goals during a specified period of
time
– Goals can be both objective and subjective
– Example goals (some of many) for a retail store manager:
» Objective: Sales goal for year = €2 million
» Subjective: Customer satisfaction goal = average rating of
4.5 on 5-point customer satisfaction rating scale
– Commonly used for managers and professionals
154
Performance Appraisal Methods
 MBO (more)
 Process:
 At the beginning of the review period, the employee
and the supervisor meet and they agree on a set of
goals to be achieved by the employee during the
review period
 Review period is typically one year, but could be more often
 Apply the goal setting principles:
 Involve the employee in goal setting
 Make the goals specific, concrete, & measurable
 Make the goals difficult but achievable, challenging but realistic
 Empower employees to achieve their goals
155
Performance Appraisal Methods
• MBO (more)
– Process (more):
• Throughout the review period, progress toward the
goals is monitored
– Employee’s supervisor should be providing coaching to help
the employee achieve his or her goals
• At the end of the review period, the employee and the
supervisor meet to evaluate the extent to which each
goal was achieved and to set new goals for the next
review period
156
Performance Raters (Evaluators)
• Who should be asked to evaluate the job
performance of an employee?
– Performance evaluators need to have:
• Opportunity to observe the employee’s job
performance
• Ability to translate observations of performance into an
evaluation of performance
• Motivation to do a good job of observing & evaluating
157
Performance Raters (Evaluators)
• Options for Job Performance Evaluators
– Supervisors
– Self-evaluation
– Peers (co-workers)
– Subordinates
– Customers
• External customers
• Internal customers
– 360-Degree Appraisals
158
Performance Feedback
 Employees need effective feedback
 Allow time & eliminate distractions
 Okay to cover both administrative issues (e.g., pay
increase) & developmental issues (e.g., future goals) in
one feedback session
 Provide specific feedback
 Example:
 Don’t say: “You’re always late.”
 Do say: “You were more than 5 minutes late on 25 occasions in the
past 3 months. This is unacceptable. We need to develop (1) a specific
goal concerning prompt attendance and (2) an action plan that you
will follow to achieve the goal.”
159
Performance Feedback
• Types of feedback sessions:
– Tell-and-sell: the supervisor tells the employee the
results of the performance appraisal and explains
the reasons why the appraisal is correct
– Tell-and-listen: the supervisor tells the employee
the results of the performance appraisal and
listens to the employee’s response
– Problem solving: the supervisor acts as a coach to
assist the employees in setting their own goals
and in evaluating their own job performance
160
Performance Feedback
 Types of feedback sessions (more):
 Combination of tell-and-sell & problem solving:
 First part of feedback session: tell-and-sell
 Focus on the past:
 Supervisor tells the employee the results of the performance
appraisal and explains the reasons why the appraisal is correct
 Supervisor tells the employee about any administrative
decisions that were made (e.g., pay increases, etc.)
 Second part of feedback session: problem solving
 Focus on the future:
 Supervisor acts as a coach to help the employee identify
barriers to improved future job performance
161
Common Mistakes
•
•
•
•
•
•
•
Labeling
Recency
Central Tendency
Leniency
Horns/Halo Effect
Constancy
Similarity
Performance Optimisation in the
Hospitality Industry
Business Process Re-engineering
Learning Objectives
• Understand and be able to implement a BPR
Strategy
• Understand the main challenges in
implementing a BPR Strategy
BPR & The Organisation
What is BPR?
• Reengineering is the fundamental rethinking
and redesign of business processes to achieve
dramatic improvements in critical,
contemporary measures of performance, such
as cost, quality, service and speed.
(Hammer & Champy, 1993)
BPR is Not?
• Automation
• Downsizing
• Outsourcing
BPR Versus Process Simplification
Process Simplification
Process Reengineering
Incremental Change
Process-Led
Assume Attitudes & Behavours
Management-Led
Various Simultaneous Projects
Radical Transformation
Vision-Led
Change Attitudes & Behaviors
Director-Led
Limited Number of Initiatives
(Source Coulson-Thomas, 1992)
BPR Versus Continuous Improvement
Continuous Improvement
Process Reengineering
Incremental Change
People Focus
Low Investment
Improve Existing
Work Unit Driven
Radical Transformation
People & Technology Focus
High Investment
Rebuild
Champion Driven
What is a Process?
• A specific ordering of work activities across
time and space, with a beginning, an end, and
clearly identified inputs and outputs: a
structure for action.
(Davenport, 1993)
What is a Business Process?
• A group of logically related tasks that use the
firm's resources to provide customer-oriented
results in support of the organisation's
objectives
Why Reengineer?
• Customers
– Demanding
– Sophistication
– Changing Needs
• Competition
– Local
– Global
Why Reengineer?
• Change
– Technology
– Customer Preferences
Why Organisations Don’t Reengineer?
Why Organisations Don’t Reengineer?
• Complacency
• Political Resistance
• New Developments
• Fear of Unknown and Failure
Performance
• BPR seeks improvements of
– Cost
– Quality
– Service
– Speed
Origins
• Scientific Management. FW Taylor (18561915).
• Frederick Herzberg - Job Enrichment
• Deming et al - Total Quality Management and
Kaizen
• In Search of Excellence (Peters and Waterman)
• Value-Added Analysis (Porter).
Key Characteristics
•
•
•
•
•
•
•
Systems Philosophy
Global Perspective on Business Processes
Radical Improvement
Integrated Change
People Centred
Focus on End-Customers
Process-Based
Systems Perspective
Feedback
Inputs
Transformation
Environment
Outputs
Process Based
• Added Value
– BPR Initiatives must add-value over and above the
existing process
• Customer-Led
– BPR Initiatives must meet the needs of the
customer
Radical Improvement
• Sustainable
– Process improvements need to become firmly
rooted within the organization
• Stepped Approach
– Process improvements will not happen over night
they need to be gradually introduced
– Also assists the acceptance by staff of the change
Integrated Change
• Viable Solutions
– Process improvements must be viable and
practical
• Balanced Improvements
– Process improvements must be realistic
People-Centred
• Business Understanding
• Empowerment & Participation
• Organizational Culture
Focus on End-Customers
• Process improvements must relate to the
needs of the organization and be relevant to
the end-customers to which they are designed
to serve
BPR Symbols
Business Process Flowchart Symbols
An Activity
A Document
A Decision
Data (input as outputs)
Business Process Flowchart Symbols
A Predefined Process
Start
The Start of a Process
End
The End of a Process
Representing a Relation
Business Process Flowchart Symbols
Continuation of the process at the same page
at an equal symbol with the same number. Used
when a relation arrow crosses another relation arrow
Off-Page Connector - Process will continue on the
next page
Integration Relation - A relation to another module is
identified and described
Data Flowchart Symbols
An Activity
A Document
A Decision
Flat Data File (input as outputs)
Data Flowchart Symbols
Manual Data Item
A Database File
Representing a Relation
Continuation
Off-Page Connector
Rules For Data Symbols
Rules For Data Symbols
Start
Symbol used to identify the start of a business process
Generate
Purchase
Order
OK?
No
Activities must be described as a verb
Yes
Decisions have only two possibilities (Yes & No)
Crossing lines are not allowed
If one side of the decision has no further processes
defined this symbol has to be used
End
Rules For Data Symbols
I
Purchase
Order
A
Posting
of Bonus
Continuation symbol within the same number must be
present twice on the same page
Name the document
Off- Page Connector is used to continue a process at the
next page or to let the process to flow over at the
previous to the next page. If more than one is needed
use A, B, C, D …
Name the data
Rules For Data Symbols
Sub-Process
Delivery
BC 4.04
Predefined Processes always have a relation to level and
stream by a number in the line below a sub-process
description
A predefined process must be described in a different
flowchart. To make the relation clear between the
predefined process and the belonging flowchart a unique
alpha numeric number should be assigned to this
predefined process.
Version Management
• For different versions of a business process or
data flow some mandatory information must
be on the flowchart.
– Name of the business process
– Unique number of the business process
– Revision number
– Date of last change
– Author
– Page number with total pages
Implementing a BPR Strategy
Key Steps
Select The Process & Appoint Process Team
Understand The Current Process
Develop & Communicate Vision Of Improved Process
Identify Action Plan
Execute Plan
Select the Process & Appoint
Process Team
• Two Crucial Tasks
– Select The Process to be Reengineered
– Appoint the Process Team to Lead the
Reengineering Initiative
Select the Process
• Review Business Strategy and Customer
Requirements
• Select Core Processes
• Understand Customer Needs
• Don’t Assume Anything
Select the Process
• Select Correct Path for Change
• Remember Assumptions can Hide Failures
• Competition and Choice to Go Elsewhere
• Ask - Questionnaires, Meetings, Focus Groups
Appoint the Process Team
• Appoint BPR Champion
• Identify Process Owners
• Establish Executive Improvement Team
• Provide Training to Executive Team
Core Skills Required
• Capacity to view the organization as a whole
• Ability to focus on end-customers
• Ability to challenge fundamental assumptions
• Courage to deliver and venture into unknown
areas
Core Skills Required
• Ability to assume individual and collective
responsibility
• Employ ‘Bridge Builders’
Use of Consultants
• Used to generate internal capacity
• Appropriate when a implementation is
needed quickly
• Ensure that adequate consultation is sought
from staff so that the initiative is organizationled and not consultant-driven
• Control should never be handed over to the
consultant
Understand the Current Process
• Develop a Process Overview
• Clearly define the process
– Mission
– Scope
– Boundaries
• Set business and customer measurements
• Understand customers expectations from the
process (staff including process team)
Understand the Current Process
• Clearly Identify Improvement
Opportunities
– Quality
– Rework
• Document the Process
– Cost
– Time
– Value Data
Understand the Current Process
• Carefully resolve any inconsistencies
– Existing -- New Process
– Ideal -- Realistic Process
Develop & Communicate Vision of
Improved Process
• Communicate with all employees so that they
are aware of the vision of the future
• Always provide information on the progress of
the BPR initiative - good and bad.
• Demonstrate assurance that the BPR initiative
is both necessary and properly managed
Develop & Communicate Vision of
Improved Process
• Promote individual development by indicating
options that are available
• Indicate actions required and those responsible
• Tackle any actions that need resolution
• Direct communication to reinforce new patterns
of desired behavior
Identify Action Plan
• Develop an Improvement Plan
• Appoint Process Owners
• Simplify the Process to Reduce Process Time
• Remove any Bureaucracy that may hinder
implementation
Identify Action Plan
• Remove no-value-added activities
• Standardize Process and Automate Where
Possible
• Up-grade Equipment
• Plan/schedule the changes
Identify Action Plan
• Construct in-house metrics and targets
• Introduce and firmly establish a feedback
system
• Audit, Audit, Audit
Execute Plan
•
•
•
•
Qualify/certify the process
Perform periodic qualification reviews
Define and eliminate process problems
Evaluate the change impact on the business
and on customers
• Benchmark the process
• Provide advanced team training
Information Technology & BPR
Benefits From IT
• Assists the Implementation of Business
Processes
– Enables Product & Service Innovations
– Improve Operational Efficiency
– Coordinate Vendors &
Customers in the Process
Chain
Computer Aided BPR (CABPR)
• Focus
– Business Processes
– Process Redesign
– Process Implementation
BPR Challenges
Common Problems
• Process Simplification is Common - True BPR is
Not
• Desire to Change Not Strong Enough
• Start Point the Existing Process Not a Blank
Slate
• Commitment to Existing Processes Too Strong
– REMEMBER - “If it ain’t broke …”
• Quick Fix Approach
Common Problems with BPR
•
•
•
•
Process under review too big or too small
Reliance on existing process too strong
The Costs of the Change Seem Too Large
BPR Isolated Activity not Aligned to the
Business Objectives
• Allocation of Resources
• Poor Timing and Planning
• Keeping the Team and Organization on Target
Summary
• Don’t assume anything - remember BPR is
fundamental rethinking of business processes
Summary
• Reengineering is a fundamental rethinking
and redesign of business processes to achieve
dramatic improvements
• BPR has emerged from key management
traditions such as scientific management and
systems thinking
• Rules and symbols play an integral part of all
BPR initiatives
Performance Optimisation in the
Hospitality Industry
Quality Standards and Knowledge
Management
Quality Standard
• ISO 9001
– The 8 quality management principles
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Leadership
Mutual beneficial supplier relationship
Involvement of people
Factual approach
System Approach
Process Approach
Customer Focus
Continual Improvement
Knowledge Management
• Capturing and managing knowhow
• Skills transfer
• Synergy
Performance Optimisation in the
Hospitality Industry
Managing Change
Understanding Change
• Understanding and managing change are the
dominant themes of management today.
• Adapting to the ever-changing present is
essential for success in the unpredictable future.
• Limits to growth must be recognised: growth
should not be forced beyond them.
• Changes that give clear competitive advantage
are particularly desirable.
• Changes made in isolation will often have
disappointing results.
Understanding Change
• Valuable changes in thinking by managers and
staff will be revealed by changes in behaviour.
• In reviewing internal processes and
performance a sense of discontent may be
put to constructive use.
• All changes should bring direct or indirect
benefits to customers and employees
Planning change
• Change in one area should be supported by change in
others.
• The strategic reasons for change should be widely
publicized.
• Only change that is people based will work in the longterm.
• Everyone involved in the change programme should be
consulted.
• Planned changes should not all be made in one go.
• Change needs fall into high, medium, and low
priorities
Planning change
• Everything and everyone that needs to change
should be noted.
• Individual responsibilities must be made crystal
clear.
• Teams are the prime engines of almost every
change.
• Management and communication of information
is the fuel of successful change.
• Sealed with a KISS
– Keep it short and simple
Assignment
• Identify a number of KPIs using the balanced
score-card as a tool for performance
optimisation to be applied in an organisation
of your choice in the hospitality industry.