Hospitality Operations Analysis Ch 07: Assessing and Rewarding Dr. Edward A. Merritt The Collins Endowed Chair of Management California State University (Cal Poly Pomona)

2 Importance of Feedback (146) Three mechanisms: 1. Feedback from customers 2. Conducting service audits 3. Feedback to managers and service providers Rewarding and recognizing quality service behaviors

3 Feedback Comprehensive customer feedback program Variety of sources Proactive Go out and get info Seek customer opinion—likes and dislikes Solicit customer suggestions

4 Continued Effective Customer-Feedback Systems Make it easy for customers to share specific and measurable info Demonstrate through your actions that you are responsive to what they are saying

5 Continued Obtaining measurable feedback 1. Ask specific one-on-one questions “Is your steak cooked properly?” “Did any part of your stay disappoint?” 2. On-site survey forms Clearly written Scalar response Vital service components

6 Continued 3. On-site suggestion boxes Survey or open-ended 4. Mail or phone surveys 5. Customer exit surveys 6. Focus groups 7. Shopper services 8. Toll-free phone number

7 Continued 9. Web site 10. Develop a relationship Know names and interests Observe their behavior Listen

8 Continued Demonstrating that you respond 1. Respond on the spot—fix it now 2. Empower service providers 3. Initiate a newsletter 4. Communicate survey results

9 The Service Audit (153) A structured mechanism for IDing and measuring customer success and failure Done by an employee of organization Frequency = once per month Steps Create a form (Fig 7-3/4 pg ) Indicators vary by operation Scalar range to ensure measurability ___ Place to record rating

10 Continued Form uses and misuses Good for entire operation, a team, or individual Use as a basis for discussion and analysis, and not for laying blame Use variety of raters and average Catch someone doing something right!

11 Positive Reinforcement (158) According to principle, behavior is a function of its consequences Positive consequences tend to strengthen and encourage Focuses attention on desired behaviors Positive sense of direction

12 Feedback to Service Providers (159) Three factors critical to success 1. Focuses on specific quality service behavior What they do, act, and say 2. Follows principle of no surprises Sharing info with entire team 3. Facilitates mutual give and take of ideas between managers and service providers Two way communication

13 Continued Charting and graphing performance 1. Visual presentation is easy to see 2. Chart or graph results are clear 3. Charts make a dramatic statement 4. Charts clarify service goals 5. Chart or graph helps set common direction

14 Continued Measures of service excellence 1. $$ Sales 2. Item sales 3. Individual sales 4. # guests 5. Occupancy rates 6. Service audit scores 7. Shopper scores 8. Customer surveys 9. Letters positive 10. Letters negative

15 Continued Periodic performance appraisal Frequency = every 3-6 months Emphasis on specific, demonstrated behavior Emphasis on positive Action plan for improving weaknesses Mutually agreed goals and objectives Criteria based on quality service standards

16 Recognition and Rewards (165) Steps 1. Establish quality service standards 2. Establish a measurement system 3. Institute a reward system Ensure that this is a loop system which is ongoing throughout the organization at all levels Refer to list on page 166

17 What Next? (167) Develop a system of continuous quality improvement within your organization Small improvements over time = huge transformations

18 End of Chapter 07