What is PMI?
PMI is a forecasting and resource management tool that enables you to easily manage resources such as labor, food, and energy to improve consistency in guest service and productivity – thus minimizing costs.
It is designed help you excel in a management position, by providing you with the key insights you need to know at the right time. This will allow you to set good targets, plan effectively, and make timely well-informed decisions when it comes to revenue, productivity and managing costs.
It is a collaborative tool which, in order to work effectively, needs input from all members of the team.
Although the day-to-day running of PMI is usually maintained by the relevant Heads of Departments (HoDs), along with the controller and revenue manager, the General Manager plays a key role in its success and impact on the hotel’s results. Without active interaction, involvement and follow-up, the benefits from PMI may not be realized, and it risks becoming yet another time sink for your busy HoDs.
What is the GM’s role in PMI?
It is the General Manager’s responsibility to ensure PMI is regularly used by the relevant parties.
This will result in accurate data being shown in PMI which will give management oversight of how the property is performing in relation to the targets set. It will also provide useful insights into what areas of the business are doing well, and where improvements can be made, both to increase revenue, and reduce costs without affecting the customer experience and overloading staff.
A good way to evaluate how effectively your team is using PMI, is by monitoring the PMI adoption index for each department. A score of 8 or above indicates PMI is up to date, forecast accuracy is good, and schedules are being prepared according to expected activity levels at the hotel.
What are the GM’s key tasks in PMI?
The GM’s key tasks in PMI are organized according to the Adaptive Resource Management (ARM) framework. These are:
- Plan: Verify realistic revenue forecasts and schedules are in place for the coming months (monthly)
- Do, Monitor & Adjust: PMI weekly meeting Use PMI to support and direct your teams in weekly meeting
- Monitor GM daily digest daily: how are you pacing month to date, what are areas for concern to be raised in meeting.
- Adjust: Implement changes to improve month end result
- Evaluate & learn: Review last month’s result compared to forecast. Identify areas for improvement. (monthly)