FOCUS ON SUPERVISION Guiding Principles for Supervising Success

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FOCUS ON SUPERVISION: Guiding Principles for Supervising Success Marcia Thomsen Washington, D. C. October

FOCUS ON SUPERVISION: Guiding Principles for Supervising Success Marcia Thomsen Washington, D. C. October 25, 2005 1

EXECUTIONAL EXCELLENCE MRT 102505 Set Clear, Universal Goals Infrastructure In Place Measure & Report

EXECUTIONAL EXCELLENCE MRT 102505 Set Clear, Universal Goals Infrastructure In Place Measure & Report Results GUIDING PRINCIPLES FOR DRIVING EXECUTION Recognize & Reward 2

EXECUTIONAL EXCELLENCE MRT 102505 Set Clear, Universal Goals GUIDING PRINCIPLE #1 • Articulate precisely

EXECUTIONAL EXCELLENCE MRT 102505 Set Clear, Universal Goals GUIDING PRINCIPLE #1 • Articulate precisely what is expected • Focus entire workforce against same goals • Translate goals for every business unit • Communicate, communicate 3

EXECUTIONAL EXCELLENCE GUIDING PRINCIPLE #2 MRT 102505 PHYSICAL • Qualified, trained people at each

EXECUTIONAL EXCELLENCE GUIDING PRINCIPLE #2 MRT 102505 PHYSICAL • Qualified, trained people at each level • Workable spans of control Infrastructure In Place • Support System to enable success • people (trainers) • systems & processes • materials & equipment PHILOSOPHICAL • Interdependency • Training/coaching/enabling culture • On-site mentality 4

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #3 • Every goal must be measurable •

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #3 • Every goal must be measurable • Data collection must be credible • “Results are King” mentality Measure & Report Results • Regularly report to all levels • Data drives decision-making and deploys workforce 5

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #4 • Results = Rewards • Structure Incentives

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #4 • Results = Rewards • Structure Incentives to Reinforce Desired Results/Activities • Promote all available incentives to drive team • financial • recognition • opportunity for advancement Recognize & Reward 6

SUCCESS LOOP Connecting the four principles in a continuous loop drives success and continuous

SUCCESS LOOP Connecting the four principles in a continuous loop drives success and continuous improvement MRT 102505 7

APPLYING THE PRINCIPLES: A CASE STUDY • 4 State region • 600 Restaurants •

APPLYING THE PRINCIPLES: A CASE STUDY • 4 State region • 600 Restaurants • 16, 000 employees • $350 MM sales • 28 MM transactions/yr MRT 102505 8

EXECUTIONAL EXCELLENCE MRT 102505 Set Clear, Universal Goals • Deliver in < 30 minutes,

EXECUTIONAL EXCELLENCE MRT 102505 Set Clear, Universal Goals • Deliver in < 30 minutes, 85% of the time • Achieve customer loyalty score of 65%+ • 100% staffed restaurants/100% trained employees • Hit profit plan ($40 MM) 9

SET CLEAR, UNIVERSAL GOALS PRINCIPLES • • Deliver in < 30 minutes, 85% of

SET CLEAR, UNIVERSAL GOALS PRINCIPLES • • Deliver in < 30 minutes, 85% of the time Achieve customer loyalty score of 65%+ 100% staffed restaurants/100% trained employees Hit profit plan ($40 MM) MRT 102505 • Articulate precisely what is expected • Focus entire workforce against same goal(s) • Translate goals for every business unit • Communicate, communicate 10

Physical Infrastructure EXECUTIONAL EXCELLENCE SPAN OF CONTROL MRT 102505 600 Infrastructure In Place 90

Physical Infrastructure EXECUTIONAL EXCELLENCE SPAN OF CONTROL MRT 102505 600 Infrastructure In Place 90 – 130 9 - 16 1 DVP MARKET “COACH” AREA “COACH” RESTAURANT MANAGER FACTORS INFLUENCING SPAN OF CONTROL: • Expertise/Tenure of Supervisor • Health of Restaurants • Geography 11

Physical Infrastructure EXECUTIONAL EXCELLENCE ON-SITE VISITS MRT 102505 DVP Infrastructure In Place 1 x/year

Physical Infrastructure EXECUTIONAL EXCELLENCE ON-SITE VISITS MRT 102505 DVP Infrastructure In Place 1 x/year MARKET “COACH” 1 x/month AREA “COACH” 1 x/week RESTAURANT MANAGER FRIDAY NIGHT: ALL-HANDS ON DECK! 12

EXECUTIONAL EXCELLENCE MRT 102505 Philosophical Infrastructure In Place • Purposeful Interdependence • Train and

EXECUTIONAL EXCELLENCE MRT 102505 Philosophical Infrastructure In Place • Purposeful Interdependence • Train and “Coach” to enable success • Effort ≠ Results • Single Unit Mentality, not averages • On-site culture; no ivory tower • Management Exists to support unit “We serve those who serve our customer” 13

EXECUTIONAL EXCELLENCE Philosophical Infrastructure supports inverted pyramid “We serve those who serve the customer”

EXECUTIONAL EXCELLENCE Philosophical Infrastructure supports inverted pyramid “We serve those who serve the customer” MRT 102505 RESTAURANT MANAGER/ EMPLOYEES Infrastructure In Place AREA “COACH” MARKET “COACH” Training Specialist DVP 14

INFRASTRUCTURE IN PLACE PRINCIPLES PHYSICAL • Qualified, trained people at each level RESTAURANT MANAGER/

INFRASTRUCTURE IN PLACE PRINCIPLES PHYSICAL • Qualified, trained people at each level RESTAURANT MANAGER/ EMPLOYEES AREA “COACH” MARKET “COACH” DVP • Workable spans of control • Support System to enable success • people (trainers) • systems & processes • materials & equipment PHILOSOPHICAL • Interdependency • Training/coaching/enabling culture • On-site mentality MRT 102505 15

EXECUTIONAL EXCELLENCE MRT 102505 • Identify Problem Units (Outliers) Measure & Report Results •

EXECUTIONAL EXCELLENCE MRT 102505 • Identify Problem Units (Outliers) Measure & Report Results • Identify “Best Practices” • Focus & Deploy Workforce • Report Widely & Often 16

EXECUTIONAL EXCELLENCE MRT 102505 CLEAR, UNIVERSAL GOALS n 65 CLI Measure & Report Results

EXECUTIONAL EXCELLENCE MRT 102505 CLEAR, UNIVERSAL GOALS n 65 CLI Measure & Report Results MEASUREMENTS Customer Phone Surveys (Weekly) n % < 30 Minutes Automated Thru Driver Dispatch System n Staffing/Training Certified HR Specialist n Profitability Register Downloads, Creates P&L 17

EACH BUSINESS UNIT IS LIKE A PATIENT TRIAGE RECOVERING STABLE HEALTHY EMERGENCY ROOM TACTICS

EACH BUSINESS UNIT IS LIKE A PATIENT TRIAGE RECOVERING STABLE HEALTHY EMERGENCY ROOM TACTICS • Diagnose Problem BEST PRACTICES • Observe/replicate • Deploy Specialists • Train Peers • Performance Management • 30, 60, 90 day milestones • Promotion Pool • Multi-level interventions MRT 102505 18

Data Drives Purposeful Activity TRIAGE RECOVERING STABLE HEALTHY MOTIVATION Restaurant Staff Market/Area Coach Division

Data Drives Purposeful Activity TRIAGE RECOVERING STABLE HEALTHY MOTIVATION Restaurant Staff Market/Area Coach Division Staff Training Specialist MRT 102505 19

Data Reported Widely and Often • KPI data polled weekly, monthly, quarterly • Restaurant

Data Reported Widely and Often • KPI data polled weekly, monthly, quarterly • Restaurant level data organized & personalized - by Market Coach - by Area Coach • Rack ’em and Stack ’em - rank “Best” to “Worst” • “Triage” Units trend reports - analyzed weekly for progress MRT 102505 20

Frequent Forums to Review Results & Share Best Practices WEEKLY ROUND-UP MONTHLY MEETINGS QUARTERLY

Frequent Forums to Review Results & Share Best Practices WEEKLY ROUND-UP MONTHLY MEETINGS QUARTERLY CONFERENCES MRT 102505 Cascading Conference Calls (or Webcasts): - DVP Market Coaches (MC) - MC Area Coaches (AC) - AC Restaurant Managers (RM) - RM Crew Attendees - DVP - MC - Specialists Attendees - DVP - MC - AC - Specialists 21

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #3 • Every goal must be measurable •

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #3 • Every goal must be measurable • Data collection must be credible • “Results are King” mentality Measure & Report Results • Regularly report to all levels • Data drives decision-making and deploys workforce 22

EXECUTIONAL EXCELLENCE MRT 102505 Recognition & Reward 23

EXECUTIONAL EXCELLENCE MRT 102505 Recognition & Reward 23

PERFORMANCE = REWARDS RECOGNITION ADVANCEMENT MRT 102505 24

PERFORMANCE = REWARDS RECOGNITION ADVANCEMENT MRT 102505 24

PERFORMANCE ≠ REWARDS RECOGNITION ADVANCEMENT MRT 102505 25

PERFORMANCE ≠ REWARDS RECOGNITION ADVANCEMENT MRT 102505 25

PERFORMANCE = REWARDS PERFORMANCE APPRAISAL! PAY RAISE • % increase off base • Annual

PERFORMANCE = REWARDS PERFORMANCE APPRAISAL! PAY RAISE • % increase off base • Annual process • Tied to results vs. goals • Standardized data-driven evaluation BONUS • Incremental • Meet or exceed result targets • Exponential if excelling MRT 102505 26

PERFORMANCE = REWARDS KEY PERFORMANCE INDICATORS • CLI • %< 30 • Profit •

PERFORMANCE = REWARDS KEY PERFORMANCE INDICATORS • CLI • %< 30 • Profit • Staffing • Overall WEEKLY MONTHLY QUARTER ANNUAL • Phone call • e-Newsletter • “Broadcast” v-mail • Newsletter • Personal letter • Pin • Award @ Qrtly Mtg • Opportunity to teach • Join DVP Roundtable • Nominated for Manager of the Year • CEO/COO Visit RECOGNITION MRT 102505 27

PERFORMANCE = REWARDS Division/HQ Staff Market Coach Area Coach Training Specialist Restaurant Manager MRT

PERFORMANCE = REWARDS Division/HQ Staff Market Coach Area Coach Training Specialist Restaurant Manager MRT 102505 ADVANCEMENT • Broader Skills • Broaden Influence • Higher Salary • Greater Prestige 28

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #4 • Results = Rewards • Structure Incentives

EXECUTIONAL EXCELLENCE MRT 102505 GUIDING PRINCIPLE #4 • Results = Rewards • Structure Incentives to Reinforce Desired Results/Activities • Promote all available incentives to drive team • financial • recognition • opportunity for advancement Recognize & Reward 29

FOUR GUIDING PRINCIPLES FOR SUPERVISING SUCCESS MRT 102505 30

FOUR GUIDING PRINCIPLES FOR SUPERVISING SUCCESS MRT 102505 30