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Benchmarking Human Perormance

by Claire Belilos

Copyright December 2000 Claire Belilos - All Rights Reserved

On the occasion of the launching of its Easytraining Insights Digital Newsletter, CHIC Hospitality Consulting Services has authorized Hotel Resource to reprint its first issue on Benchmarking Human Performance as follows:

December 4, 2000

Easytraining Insights, CHIC Hospitality Consulting Newsletter - http://www.easytraining.com

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ISSN 1496-3361 Eeasytraining Insights, CHIC Hospitality Consulting, Vol. 1

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Benchmarks are the "standards" (or "criteria") management sets to help achieve organizational goals and specific departmental objectives. They are also used to measure actual organizational and departmental performance. In these instances they are based on quantitative and financial data, enabling "measurable goals" and an objective assessment of performance. Such benchmarks form the basis of forecasts, budget planning, and Profit and Loss reports. Benchmarks are set after goals and objectives are decided upon.

Benchmarks are also set for work performance which can be measured, such as the number of cars assembled, number of faulty equipment, returned merchandise and the reason for the return, number of covers served by a waiter, the number of rings before an incoming call is answered by company employees, the duration and number of unanswered calls, the number customers who hanged up, and so forth. Most companies also express work performance-related benchmarks in quantitative and financial data. This practice is a disservice to the company and to the managers and employees whose performance is being measured. Purely quantitative and financial benchmarks do not provide for the intangible individual "human" aspect nor do they reflect on whether company values have been upheld.

Company values are the essential third integer when setting benchmarks for human performance. For example, one of the values a company has is Customer Satisfaction. Once there is a clear definition regarding the quality and degree of Customer Service the company wishes to achieve, we would work backwards to identify the benchmarks (standards) by which we can measure whether this value is reached and maintained. We go about dissecting "Customer Satisfaction" in all its details, basing ourselves on customer needs and expectations from this establishment: courtesy? comfort? discretion? privacy? speed? cleanliness? attention? assistance? problem-solving? safety? correct billing? non-threatening environment? professional staff?

When determining benchmarks for work performance, there are many subtleties around the job position in question which we have to analyze, categorize and prioritize, directing our thoughts towards the desired end-results which would lead to a successful operation. Let us take a few examples to clarify this point:

a) Benchmarks for the performance of a Human Resource Director:

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* Do we measure the efficiency of a Human Resources Director by the number of people he (or she) interviews and hires? Or do we stretch our mind further and measure this person's efficiency by the number of "correct" selection of applicants and successful hires, comparing these to manager and employee turnover (throughout the company and in specific departments).

* Do we measure this same Director's performance by the number of memos he (or she) writes or by this person's ability to create effective policies and strategies and to solve problems in a manner beneficial to both management and employees?

* Do we count the number of labor disputes this Director (or any Manager or for that matter) deals with, or do we measure his performance by other yardsticks such as leadership style, human relations and negotiation skills which, when properly applied, lead to the absence of disputes? Will out standard be "inadequate performance" if "X" number of disputes arise and "excellent performance" for "0" or a small number of disputes? Or, should we play ignorant and laud the Manager whose time is consumed by a larger number of labor disputes, slapping his back for time he can account for? Or should his quality of leadership be gauged by the measure of his employees' motivation? Should this be measured through observation or formal surveys? Who will evaluate? And who will determine the benchmarks for effective evaluation? What relativity will be used?

b) Benchmarks for the performance of a Phone Operator: --------------------------------------------------------------

* Do we measure the success of this employee's performance by the number of calls he answers and processes, or do we also measure the degree of customer satisfaction? Do we use customer feedback as yardstick? How is this done? Through analysis or with a quick reading? How do we measure efficient call management? Or is evaluation subjectively carried out through the Supervisor's personal observation?

c) Benchmarks for a Waiter's (Server's) performance: -----------------------------------------------------------

* Do we measure only the number of covers a Waiter serves? or do we set additional criteria such as the manner in which the Waiter communicates a feeling of "welcome" towards the guest; behaves courteously; is attentive to guest needs and anticipates unusual needs; "listens" effectively; assists the guest in the selection of food and beverage items; demonstrates a caring attitude; follows up on guest satisfaction; "sells" and "upsells" with subtlety and discretion, and performs all other duties professionally.

* For this same Waiter, do we not need to measure his work performance also in terms of compliance with house rules, sanitation and safety regulations, cooperation and team work? How do we set benchmarks for these?

As we can see, when we setting up benchmarks for "human performance" we cannot limit ourselves to quantitative and economic standards. We must integrate the "intangibles", work hard to clarify company values, define the quality and style of service (e.g. in fast food service, there would be less stress on many of the afore-mentioned points and more stress on speed, procedure and quantity), formulate policies and draw a road map for work performance. Without all these aspects, efforts in benchmarking become futile.

Even with such elaborate planning, we have to remember the unpredictability of human nature. On the one hand, we want supervisors and employees to be creative, use initiative, solve problems, help increase business, offer "the extra personal touch" and cause customers to select our product or service over all others. On the other hand, we set formal rules and measurement criteria. It is in the planning stage that we must make provision for "the human element", coupling performance planning with strategies for internal communications, training and development. In these latter activities we can iron out differences in concepts, values, attitudes and behavior, and lead towards the desired results. "Benchmarks" can be used as "training (learning) objectives".

If we take the example of a Waiter dropping cutlery or a bread roll in the dining room, picking it up with bare hands and placing it back among items slated to be served to a guest. Besides the sanitary connotations, we must think of the effect such action has on guests who witness such an event. Without say, such irresponsible, unsanitary and unprofessional behavior on the part of the Waiter affects the restaurant in a dramatic fashion: immediate loss of customers present, a snowball effect on the restaurant's reputation and loss of future business. Should we not ensure that compliance with "sanitation" regulations and procedures be one of the benchmarks for a Waiter's performance? Consequently, does this not then obligate us to train Waiters on the what, how, and wherefore?

When we begin setting benchmarks for work performance by human beings we enter a maze which at first seems to blur our vision. We risk becoming immersed in never-ending details. However, if we keep our vision clearly fixed at the end objectives, we can chart a course, set landmarks to guide our way, progress in a systematic fashion and reach our goal. The seeming enormity of such an undertaking leads many companies to take shortcuts, limiting themselves to simplified benchmarks (quantitative and financial). Such benchmarks do not reflect corporate vision, philosophy and values; nor do they serve as tools and guides for the management and control of work performance and quality of service. Quantitative and financial benchmarks are intended for Operations Analysis - an almost forgotten term and function.

Copyright 2000 Claire Belilos - All Rights Reserved

Canadian Copyright resource: http://insight.mcmaster.ca/org/efc/pages/law/canada/copyright.html U.S. Copyright resource: http://lcweb.loc.gov/copyright/

** This publication is registered with the National Library of Canada, Ottawa, ON - ISSN 1496-3361

Please send your comments, questions and contributions to be covered in our next newsletters to Mailto:insights_benchmarks@easytraining.com

This article cannot be copied or distributed without written permission of the author. For permission to distribute the original issue of the newsletter itself please e-mail Claire Belilos at mailto:insights@easytraining.com

Read about subcription to the Easytraining Insights Digital Newsletter at http://www.easytraining.com/insights.htm

Claire Belilos CHIC Hospitality Consulting Services Guiding the way and offering practical solutions to people management and customer service www.easytraining.com insights_benchmarks@easytraining.com


 

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