PMI index – Improve your productivity management skills

What is its purpose?

PMI index is a combined score tied to the individual tasks that make up productivity management in PMI. PMI Index Dashboard is designed to guide the department heads (cockpit owners) on how to improve their productivity management tasks or skills which will lead to a higher score and result in higher productivity.

The main purpose of the PMI index is not focused on productivity outcome, although it is the desired effect but rather on how well you perform the individual tasks that define productivity management in PMI. In our experience, mastering these tasks and skills will automatically lead to better and more consistent productivity outcomes.

A PMI index score at the department level can be further linked to a property, to a group, and ultimately to a chain.

ARM skills

Navigation

PMI Index widget

Key graphs

ARMS graph

The PMI Index trend graph

What is measured in PMI Index

Onboarding video

Adaptive resource management (ARM) learning from experience to get better

The individual tasks and skills being measured are organized according to the Adaptive resource management (ARM) process framework which consists of 5 steps (Plan, Do, Monitor, Evaluate & learn and Adjust). The main focus of ARM is continuous improvement to cope with the uncertain environment. Therefore, Monitor, Evaluate & learn and Adjust are the most crucial steps.

More about the generic ARM framework here: https://en.wikipedia.org/wiki/Adaptive_management

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As mentioned, the ARM framework is divided into 5 main steps:

  • Plan – you determine the business’s general expectations and targets for a coming period, and those reflected in the annual budget or forecast. Examples can be: Does your plan reflect your best guess about the coming period? This includes expected business volumes, and the productivity needed to deliver the promised guest experience. Is the plan reflected in budget/forecast targets that are ambitious yet achievable?
  • Do – you continuously work to implement the business plan underpinning the budget or forecast. Examples can be: Do your Live forecasts reflect your best guess? Are your scheduled hours optimally aligned with the expected daily level of activity? Are there any unmapped accounts that need to be addressed? If you use Planning, have you submitted the numbers from R&P?
  • Monitor – you monitor the current situation daily compared to the budget or forecast to identify if any action is needed. Examples can be: Are you frequently monitoring the current situation, so you know what is going on? If you use a revenue driver or schedule based on someone else’s forecast, is the accuracy from the source good enough?
  • Evaluate & learn – you study results, find deviations, learn why these happened, identify specific areas for improvement or need for corrective actions. Examples can be: How accurate are your daily Live forecasts? Have you staffed each day according to the activity? Are you improving your accuracy? Are you regularly biased – being either too positive or too negative – and therefore should rethink your future forecasts or schedules?
  • Adjust – you adapt to changes by implementing improvements and taking corrective/preventive actions found at a prior stage to meet the target set. Examples can be: How often do you update the labor cockpit? Are you promptly adjusting your configuration of PMI to the current circumstances? E.g., if you use revenue- and/or activity cost drivers; are you adjusting or even changing them if needed?

Access and user rights

You access the PMI index from the Home screen. Click on the PMI index widget at the bottom left-hand side of the screen.

Access depends on your user rights, which department, division, property, and group you have access to. For example, if you are the Food & Beverage Manager at 2 properties, you will have access to both properties, division, relevant departments, and ARM steps. If you are the Cluster General Manager or Cluster Financial Controller of 2 or more properties, you will have access to all properties, divisions, departments, and ARM steps. A general rule is that if you don’t have user rights to a specific unit, it is automatically grayed out.

  1. Selected chain – click here to choose a chain to be viewed (a user can only choose the chain they are assigned to.)
  2. Group – click here to choose a group or cluster of properties to be viewed.
  3. Property – click here to choose a property you want to view.
  4. Division – click here to choose a division you want to view.
  5. Department – click here to choose a department you want to view.
  6. ARM steps – click here to choose what steps to be viewed.

Pia (Productivity intelligence assistant) provides words of encouragement to support your daily endeavor to reach your goals. The score indicates how well your productivity management skills and habits are according to PMI best practices. A PMI score of 8 is satisfactory, while 8.5 and beyond is great. The index score scale is as follows:

  • 0 to 5 “Not yet there. You can do it! We’ve broken it down into steps, so you can improve.”
  • 5 to 7.4 “You’re almost there. Let’s learn from mistakes, and you’ll soon meet the expectation!”
  • 7.5 to 8.5 “Congrats, you’re doing well and meet the expectation. Keep it up!”
  • 8.5 to 10 “Awesome, keep up the excellent work!”

PMI Index score widget explained

The score indicates how well your productivity skills and habits are according to the PMI best practices. A PMI index score of 8 is satisfactory, while 8.5 and beyond is great.

  1. Today – the most recent calculated Index score for the selected option (navigation in the midsection and navigation on the right-hand side – ARM steps and tasks). An arrow that points up or down shows the positive or negative comparison to yesterday. The score is updated daily by 01:00 am. Also note that on the landing page the score is for the whole property, i.e. all individual departments are included.
  2. Weekly – average score of the last 7 days. The score is updated daily by 01:00 am.
  3. Last year – same period last year. Note that many properties will have “0” as this was not an option last year. This is why we are keeping the old PMI index (Point 5).
  4. Weekly Peer Average – weekly average for peers. It’s comparing what you have selected in the menu.
  5. Old PMI index – this is the “classic” score you previously saw on the right-hand side of your screen. This will be removed by the end of 2021.

Key graphs explained

The graphs give you a quick overview of how you are doing and where you should be focusing on, in order to improve. As illustrated below the Index, the y axis is rated up to ten. The header – this varies depending on what you choose. In Example 1 it was a specific property (hotel) and in Example 2 it is Rooms – when you click on the question mark (?) you get a description of what this section includes.

4a. When NO specific property and All steps are chosen(picture of an example). The hotel with the RED bar is the one with the greatest potential as measured by weight multiplied by height from current height to satisfactory threshold. The hotel with the AMBER bar is the one with the next greatest potential as measured by weight multiplied by height from the current height to the satisfactory threshold. The bars that are GREEN are the ones to focus on last.

4b. When a specific property, All divisions, and All steps are chosen (picture of an example). The Division with the RED bar, (Other), is the one with the greatest potential as measured by weight multiplied by height from current height to satisfactory threshold. The Division with the AMBER bar, (Food & Beverage), is the one with the next greatest potential as measured by weight multiplied by the current height to the satisfactory threshold. The bars that are GREEN are the ones to focus on last.

4c. When a specific property, a specific division, (Rooms), All departments, and All steps are chosen (picture of an example). The Department with the RED bar, (Front Office), is the one the recommended actions relate to and directs you to the single most impactful task to do. The Department with the AMBER bar, (Housekeeping), is the one with the next greatest potential as measured by weight multiplied by height from current height to the satisfactory threshold. The bars that are GREEN are the ones to focus on last.

Colors of bars: Here you see Other, Rooms and Food & Beverage is amber and various sizes in width, and A&G and M&R are green and narrow.

A quick recap: Housekeeping is on amber and medium in width, Front Office, Public area cleaning and Reservations are green and various sizes in width, and Rooms management is red and large in width. In conclusion, the department losing the most points is Rooms management and this is where you should focus on first (Do now!).

  • Cockpit only – the weight is calculated based on how many hours the department uses out of all hours used at the hotel. Examples of a labor cockpit are Front Office, Housekeeping, Public Area cleaning, Administration, Maintenance, Kitchen, and Stewarding.
  • Profit Center only – the weight is calculated based on what revenue share of total revenue this profit center has. Examples of a profit center are Other.
  • Combined cockpit and profit center – the weight is a mix of the two calculations above. Examples of a combined labor cockpit and profit center are Restaurant, Bar, Breakfast, and Meeting & Events.

  • Do now ! is red. The units causing the most points lost are shown in red, i.e. highest improvement potential.
  • Do next ! is amber. The units causing the second greatest points lost are always shown in amber, i.e. next highest improvement potential.
  • Do last ! is green. The units causing the least points lost are always shown in green, i.e. least improvement potential.

In cases where multiple units are of the same color, focus on improving the shortest one with the greatest width/weight, i.e. the one with the highest improvement potential. Remember: Height = achieved score, Width = Impact on overall score.

  • Peer average: The dotted lines on the graph show the peer average. When a property is part of a group/country, the peer average is based on the group or country it belongs to. When there is only one property in a group, the peer average is calculated based on the next level up, i.e. country; if there is only one property in the country, then the peer average is based on the chain it belongs to. The peer average is displayed on the bars as well as the purple tile (Peers) in the PMI Index score widget.

2. Scroll arrows – use thees to view additional bars on the graph if there are too many to see at once. For example when there are many properties or departments to view.

3. Recommended action– shows you recommended action to take for the specific level/department chosen. Take a look here to understand what can be done to improve your PMI Index score. Further below in this article, you will find an overview of the exact measurements and actions.

ARMS graph explained

Link to ARM explanation section above in this article. The graphs give you a quick overview of how you are doing and where you should be focusing on, in order to improve. You are able to understand which sections of the ARM Framework you can improve. As illustrated below the Index, x-axis, here is rated up to ten. Highlighting the group of skills with the highest impact helps set focus on personal development. The rules for determining the colors of the bars (RED, AMBER, and GREEN) on the ARM chart are as follows:

5a. The step with the RED bar is the one with the greatest potential as measured by weight multiplied by height from current height to score ten.

5b. The step with the AMBER bar is the one with the next greatest potential as measured by weight multiplied by height from the actual height to ten.

5c. The step with the GREEN bar is the one to focus on last.

  1. Learn more about ARM steps & tasks – You can access the Knowledge base article by clicking the question mark (?). You can also read more Adaptive management here https://en.wikipedia.org/wiki/Adaptive_management
  2. Colors and width of bars Length = Achieved score, Width = Impact on the overall score.
  • Do now ! is red. The step causing the most points lost are shown in red, i.e. highest improvement potential.
  • Do next ! is amber. The step causing the second greatest points lost is always shown in amber, i.e. next highest improvement potential.
  • Do last ! is green. The step causing the least points lost are always shown in green, i.e. least improvement potential.

3. The peer average for each step in the specific country (our example is the group: Germany and the step chosen was Plan) is shown here.

The PMI index trend graph explained

Here you find an overview of the unit (group, property) you have chosen in your header. I.e. if you chose Hotel A, then the graph here displays the index for Hotel A and the group Hotel A belongs to.The period showed – Year – displays the last 11 months, the current month, and the upcoming month.

The period showed – Month – displays the last 28 days, today and the coming 7 days. The score for each day is shown.

Currentblue line – current score of the property you chose

Peer averagepurple line – peer average of the group the specific property belongs to

Last yeargray line – last year score of the property you chose

Based on old index – dotted line – this represents the old PMI index

What is measured in the PMI Index?

Below you will find a short description. We have linked the measurement explanations so that you are easily able to connect them to the corresponding ARM skill/task. i.e. Plan, Do, Monitor, Evaluate & learn and Adjust.

Plan

1. How often do you update the Profit & Loss (P&L)? The P&L is updated each month to ensure you are up to date with the current situation for the upcoming period. It should be updated each month.

2. Does a P&L submitted Forecast exist? When was it last updated? Here the current month has a submitted forecast not older than 30 days. It tells you it’s been more than a month since you last submitted a forecast to P&L.

3. Does a submitted Budget exist? The current year has a submitted budget not older than 365 days. It tells you you need to update your P&L budget as it’s been more than a year since you last submitted a budget to P&L.

4. Does a P&L submitted Forecast exist? Is the period completed for the following 11 months? Not all the upcoming 11 months have a submitted forecast to P&L.

5. Measures if the Revenue/guests/rooms forecast is complete. This is a sense check of live forecast revenue/covers/guests/rooms for the next months ahead. It tells you your revenue live forecast for the specific month(s) is outside the normal range.

6. Measures if the Revenue/guests/rooms budget is complete. This is a sense check of budgeted revenue/covers/guests/rooms for the next months ahead. It tells you your revenue budget for the specific month(s) is outside the normal range.

Do

1. How often do you update the labor cockpit? How often do you update (i.e. save) used hours and schedule? It should be viewed daily. The purpose of updating/saving the labor cockpit is to confirm hours used in the last day(s), review productivity vs target, and review future schedules vs cost driver. The target is 10 times in a two-week period. It shows you how many times the cockpit’s been updated in the last 14 days. Please disregard if automated imports are active.

2. Are all accounts mapped? Are they mapped or ignored (property level only). To ensure information integrity in PMI, all accounts imported to PMI must be correctly mapped.

3. How often do you update the Profit & Loss (P&L)? The P&L is updated each month to ensure you are up to date with the current situation for the upcoming period. It should be updated each month.

4. How often do you update the Live forecast? The live forecast forms the basis for staff/resource planning. The target is 10 times in a two-week period. It shows you how many times it’s been updated during the last 14 days.

4. Measures how hours are adapted to activity. Over or understaffing on historical days is compared to the actual cost driver (i.e. staffing according to actual activity). It shows you how the hours adapted to activity over the last 6 weeks.

5. Measures the scheduled hours’ alignment vs target, where the lead time with the lowest score is checked. This means that future schedules are compared to the SMART forecast for lead time with the lowest score. Here it tells you your schedule does not reflect the expected activity (SMART forecast). It also tells you how many lead-time days you are off.

Monitor

1. How many active users are logging in to PMI and performing their specified tasks daily? Knowing how you are pacing is essential to know how you will meet the month-end goal. How regularly are you viewing and using PMI? How often do you review and update your area of responsibility? It is perceived that by opening and viewing the different modules, you are paying attention to the past and future to make the necessary adjustments. What percentage of PMI users were active during the last 10 days?

2. How often do you monitor the Live forecast? The live forecast forms the basis for staff/resource planning. It should be viewed daily. It shows you how many times it’s been updated during the last 28 days.

3. How often do you monitor your labor cockpit? It’s very important to monitor the cockpit regularly to ensure that the scheduled hours are aligned with the expected activity. In doing so, you maintain service levels and minimize labor and cost all at the same time. It should be monitored daily. It shows you how many times it’s been monitored during the last 28 days.

4. How often do you monitor the Profit & Loss (P&L)? The P&L is reviewed regularly to ensure you are up to date with the current situation. It should be monitored each month. It shows you if it’s been more than 31 days since it was last viewed.

5. Reusing the Live forecasting accuracy index for the source department(s). Here the forecasting accuracy for the revenue driver used is checked. It shows you if it’s lower than desired.

Evaluate & learn

1. Reusing the Live forecasting accuracy index for the source department(s). Here the forecasting accuracy for the revenue driver used is checked. It shows you if it’s lower than desired.

2. Reusing the Live forecasting accuracy index for the source department(s). The forecasting accuracy for the cost driver used is checked. It shows you if it’s lower than desired.

3. The forecasting accuracy of your Profit & Loss is measured, MAPE. MAPE stands for mean absolute percentage error and is commonly used to express forecasting accuracy over a period in the past. E.g. if the MAPE is 5, on average, the forecast is off by 5%. Here it shows you in percentage.

4. Improvement of the live forecast accuracy is measured. It shows the accuracy higher or lower over time. It tells you that your forecasting accuracy has declined during recent weeks.

5. Measures if your forecast is frequently biased, too high, or too low, biased live forecast. It tells you if your forecast is pessimistic or optimistic.

6. The accuracy of the live forecast is measured. It tells you the forecasting accuracy is lower than desired.

7. Measures how flexible your scheduling adaptability is. Schedules are monitored and updated on a regular basis to ensure productivity reflects the current situation. How fast or slow your schedule is adapting to a change when it’s made in the forecast for a cost driver.

8. Measures how hours are adapted to activity. Over or understaffing on historical days is compared to the actual cost driver (i.e. staffing according to actual activity). It shows you how the hours adapted to activity over the last 6 weeks.

9. Measures the scheduled hours’ alignment vs target, where the lead time with the lowest score is checked. This means that future schedules are compared to the SMART forecast for lead time with the lowest score. Here it tells you your schedule does not reflect the expected activity (SMART forecast). It also tells you how many lead-time days you are off.

10. Measures the scheduled hours’ alignment vs target where the total value is checked. It tells you your schedule is regularly misaligned with the expected activity (SMART forecast).

11. Measures used hours alignment vs SMART forecast. This means that over or under staffing on historical days are compared to the last saved SMART forecast (i.e. staffing according to forecasted activity). It tells you the hours used per day are not aligned with the daily activity over the last 6 weeks.

12. Measures if used hours are frequently biased, too high or too low. Here it tells you if you are frequently understaffed or overstaffed. Is the productivity ratio at a reasonable level?

13. Measures the complete productivity Budget. This is a sense check of budgeted productivity/hours for the upcoming months. It tells you your productivity budget for the specific month(s) is outside the normal range.

14. Measures the complete productivity/hours. This is a sense check of live forecasted productivity/hours for the upcoming months. It tells you your live forecast productivity for the specific month(s) is outside the normal range.

Adjust

1. The Revenue Driver correlation is checked to see which day has the lowest score, this means that during the last 365 days the relation between the selected driver and the actual result is compared. Each day of the week is checked independently and the correlation value (Pearson coefficient) for each day is weighted based on the revenue per day to get a total score. If the value is <0.3 then it does not correlate, <0.5 then it has a very low correlation, <0.7 then it is only moderately correlating, and if it’s>0.7 then it has a lower correlation than the other days of the week. It shows you the revenue driver used for a specific day of the week compared with the actual results for that day of the week.

2. The Revenue Driver correlation is checked to what the total value was, this means that during the last 365 days the relationship between the selected driver and the actual results for a specific department. The department is checked independently and the correlation value (Pearson coefficient) is weighted based on the revenue to get a total score. If the value is <0.3 then it does not correlate, <0.5 then it has a very low correlation, <0.7 then it is only moderately correlating, and if it’s>0.7 then it does not have a perfect correlation. It shows you the revenue driver used with the actual results for a specific department.

3. The cost driver used during the past 6 months is measured. During the last 185 days, the relation between the selected driver and the actual result is compared. Each day of the week is checked independently and the correlation value (Pearson coefficient) for each day is weighted based on hours used per day to get a total score. If the value is <0.3 then it does not correlate, <0.5 then it has a very low correlation, <0.7 then it is only moderately correlating, and if it’s>0.7 then it does not have a perfect correlation. It shows you the cost driver used during the last 6 months with the actual results for this department.

4. Measures used hours alignment vs SMART forecast. This means that over or under staffing on historical days are compared to the last saved SMART forecast (i.e. staffing according to forecasted activity). It tells you the hours used per day are not aligned with the daily activity over the last 6 weeks.

PMI Index Onboarding Tutorial video 07m10s

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