Archive for November 2nd, 2009

Are You Tracking That?

Tracking what, exactly? Well, everything, apparently.

Just what are the trends in F&B number analysis? We have so many tools today – it’s great. At the risk of dating myself, I remember the day our regional F&B Director rushed into my office and announced that he had this new “miracle” tool, VisiCalc, and “wait until you see what can be done with it”. That was 25 years ago. Here’s how things have evolved, for some hotel and restaurant chains:

  • We have more information then ever before. It’s a digital world. We have Business Intelligence Systems. We have Dashboards. We have Enterprise Programs to look at POS in real time. We have labor systems and can view labor in real time. Purchasing systems – need to know how many bottles of tobacco you bought last week? Yesterday? No problem. And of course, we have spreadsheets.
  • What is the job today? Reports. To corporate. Now. “More information than ever before” has led to “more reporting than ever before”. And, thanks to Excel, Adobe, Power Point and others, we can make some pretty spiffy reports.
  • Since we have all of this incredible information there are some silly practices from “long ago” that are really not needed any more – and for many, basic practices such as taking inventories and forecasting covers by meal period are among the data casualties.
  • And how helpful are the reports? Maybe this is a hint: I have yet to meet a unit manager, hotel or restaurant, who didn’t keep his or her own spreadsheet with their own collection of goals and trends, and use that spreadsheet to manage.

“To manage”? That’s right. They find they can’t manage with 100 data points to look at, but they can do a hell of a job looking at the ten most critical data points, especially if they look at them every day.

Let’s digress: how many restaurant companies have won the coveted Malcolm Baldridge National Quality Award (www.baldrige.nist.gov)? The answer is one: Pal’s Sudden Service (www.palsweb.com), a small drive-through hot dog chain with no indoor seating, but with business practices and results beyond what most of us have imagined possible. And Pal’s shares its methodologies through its Pal’s Business Excellence Institute (www.palsbei.com) – I’ve taken 3 courses there, and recommend it to anyone pursuing excellence in business practice.

Why I mention this – Pal’s tracks 10 pieces of information. Not 11. Not 100. Just 10. Pal’s managers and corporate track the same thing.

In fact, the fourth (of seven) category of criteria for Baldridge is: Measurement, Analysis, and Knowledge Management. A paper about the Award and about Pal’s published for the International Journal of Quality and Productivity Management (Vol.5, No.1, December 15, 2005) explains:

It is difficult, if not impossible, to manage an activity that cannot be measured in some way. Often, managers want to obtain as much data and information as possible regardless of its usefulness. Many incorrectly believe that more data lead to a more informed decision. This is usually not the case. Only relevant data should be kept and measured, and key performance measures should be acted upon.

The successful managers I’ve observed, at the unit level, get this.

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