You Can’t Manage What You Can’t Measure
Teach your managers and leaders to use labor productivity measurements.
- In our business operators are not typically focused on units of production compared to units of labor. I have a system I teach my clients that includes how hotels can establish key business indicators “KBI’s” for individual departments to use when planning/scheduling and tracking actual results by area.
- I also have a section on using EFTE’s – “effective full-time employees” which is a global industry measurement standard that can easily be adopted by hoteliers. Using EFTE’s cuts through full-time, part-time, seasonal and on-call workers to give operators a much clearer view of their labor picture. This is critical for understanding the big picture and the individual departmental impact.
- The third part is how to schedule using productivity. Once people have a base line for their department, they can continually measure the effectiveness of their schedules which leads to improved results and innovation.
- The fourth optional part is how to easily include productivity and EFTE’s on your financial statements, budgets and forecasts.
Overall, what managers learn is they don’t control wage rates. It’s out of their hands. What they can control is the schedule; understanding and using simple measurements to track and plan productivity is their way to better results.
I deliver this in a 3-hour interactive workshop session.
Below are 3 links to articles I have published on labor productivity as well as a link to my YouTube channel that has additional information including labor productivity videos.
http://www.hotelexecutive.com/business_review/5021/building-your-hotels-key-business-indicators-kbi
“Understanding and Using Labor Productivity Measurements in Your Hotel”
Some key points:
- You cannot manage what you can’t measure.
- The minimum wage is not something you can control – the work schedule is.
- Learn a straightforward system to use in any size hotel to measure and manage productivity.
- No capital or new computer systems required – just some work.
- Applicable for both rooms only and rooms + food and beverage operations.
- Establish, schedule, track and manage units of production vs. hours worked.
- Establish an EFTE tracking system.
- Create incentives for improved results and innovative ideas.
- Learn to manage your biggest expense better with a system to follow and better insight.
At Hotel Financial Coach I help hotel leaders with financial leadership coaching and workshops. Learning and applying the necessary financial leadership skills is the fast track to greater career success and increased personal prosperity. I significantly improve individual and team results with a proven return on investment.
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The 3 Month 1-1 Financial Leadership Mentoring Program
Strategic Hospitality Financial Leadership Workshops
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