4. Communicate. Communicate progress as it happens. Most new endeavours experience a period where costs increase (productivity may slump, costs may happen up front and the benefits follow); this is the danger zone where initiatives may get dropped prior to producing the intended gains. It is critical that you communicate this expectation as it is happening, and forecast the reversal of this trend into future gains as the initiative passes through its start-up phase. It is vital to any initiative to keep operators committed in order to realize results.

Using metrics and benchmarks

When using metrics and benchmarks, a few important points should be remembered.  First, data is based in the past, and you can’t change the past.  Second, quantitative data may not tell the whole story independently.  

There are three main ways to use benchmarking data:

1.  Compare against other business metrics: Look for potential links between various metrics to identify root cause issues and appropriate remedial action. For example employee turnover might be linked to guest satisfaction, which in turn could be linked to training. As managers become more comfortable working with benchmarks and metrics within the organization, they will begin to see patterns and leading indicators that will help them to identify potential problems and “head them off at the pass.”

2.  Benchmark HR metrics externally: Are you doing well, or are you just doing better than before?  The only way to answer this question is to understand what “well” means.  An effective way of determining the success of your systems is to compare your metrics and benchmarks against industry norms.

3.  Qualify internal benchmarks: Understand what your metrics mean and how they impact your specific organization.  A turnover result of 25 per cent might be really poor in a unit located in a geographic region with a low employment rate, but excellent for another unit where alternative employment is abundant. Similarly, if you track the number of new hires to determine the success of your recruitment program, it does not tell you about the quality of new hires. A better benchmark might be tracking a metric such as your ability to promote from within to help you qualify the results of your recruitment initiatives and its impact on the success of the business.

What is its bottom-line contribution, in terms productivity and customer service and how might this convert into dollars and cents?

Monitor the impact of the metrics individually and as a whole to identify what these patterns represent; allow them to illustrate what is happening now and suggest solutions for the future.

About the author:

Patricia Csapo is an associate with fsSTRATEGY, providing advisory services in the area of Human Resources. fsSTRATEGY provides extensive support in the areas of concept development, site selection performance improvement and strategic planning. For more information or assistance with Training Manuals, visit www.fsSTRATEGY.com or contact us at 416-229-2290.