PMI index – Improve your productivity management skills

The new and improved PMI index allows you to deep dive into your performance at a grassroots level. You have a birds-eye view of all levels, which means a chain, group, and/or country, division, and department. Each unit is measured separately on level of activity, accuracy, schedule alignment, and completeness. The new PMI index can also be used as a coaching tool for cockpit owners.

About Adaptive resource management (ARM)

Adaptive resource management (ARM), is a tool that is used not only to change a system but also gives you an opportunity to learn about the system. Adaptive management is based on a learning process to improve long-run management outcomes. Here, you can see what reduces the total index score the most and improve it. You can also see what you are doing great at and how to keep it consistent. PMI index measures skills and tasks considered to be important to productivity management. The skills and tasks are organized under 5 steps (Plan, Do, Monitor, Evaluation & learn and Adjust) which is known as the Adaptive Resource Management (ARM) process framework. The main focus is continuous improvement; this is achieved particularly through Monitor, and Evaluation and learning steps.

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As mentioned its divided into 5 steps:

  • Plan – Determine the general expectations and targets for a coming period
  • Do – Continuous work to implement the plan
  • Monitor – Daily monitoring of the current situation compared to the plan to identify if any action is needed
  • Evaluate & learn – Study results, find deviations, learn why these happened, identify specific areas for improvement or need for corrective actions
  • Adjust – Adapt to changes, implement improvements, take corrective/preventive actions found at a prior stage

Access and user rights

Access depends on your user rights, which department, division, property, and group you have to access to. For example, if you are the Food & Beverage Manager at 2 properties then 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, then you will have access to all properties, divisions, all departments, and ARM steps. A general rule is, If you don’t have user rights to a specific unit then it is automatically grayed out. You access the PMI index from the Home screen. Click on the PMI index widget at the bottom left-hand side of the screen.

About navigation

  1. Selected chain – this is for d2o employees and a select few users with access to chain level, mostly from your Head Office
  2. Group – and/or country your property belongs to
  3. Property – choose the specific property you want to focus on
  4. Division – choose the division your department belongs to
  5. Department – choose the specific department you want to focus on
  6. All steps – choose a specific step or all steps for a specific group, property

PIA (Productivity Intelligence Assistant) is here too, to guide you with words of encouragement, supporting you in your daily routines and reaching your goals. The score indicates how well your productivity management skills and habit are according to PMI best practices. A PMI index score of 8.5 or more is considered satisfactory or better. The index score explained below:

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

Part 1 (screen on the left-hand side) 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). An arrow that either points up or down showing the (positive or negative) comparison to yesterday.
  2. Current – the average of the last 7 generated scores.
  3. Last year – equivalent current period last year. Please note that many properties will have “0” as this was not a comparative last year. That is why we are keeping the Legacy PMI index (Point 5).
  4. Peers – the average index for the same current period. Here it also depends on what you have selected in the midsection.
  5. Legacy PMI index – this is the score you previously saw on the right-hand side of your screen. This will be removed at a later stage.

Part 2 (mid section) explained:

  1. The header (this varies depending on what you choose, in our example it is Rooms) – when you click on the? you get a description of what this section includes.

The height of the bar represents the PMI index score, i.e. how well you performed the task,  Each unit you choose is measured separately on level of activity, accuracy, schedule alignment, and completeness. The width or weight represents the impact on the overall score, i.e. how significant the individual units are relative to others. Here in the example, the weight shows that this department has used more hours (resources) than revenue, so the productivity levels are low compared to the revenue.

  • Cockpit only – the weight is calculated based on how many hours that department use 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.

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

  • 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.
  • Peer average: When a property is part of a group/country, then 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 Part 1. In the widget, it is displayed by the dotted line by each unit chosen.

2. Scroll arrows -this is used for example when you have several departments, you use the arrows to locate them all as not all fit onto the page.

3. Recommended action(s) – the specific level/department (varies depending on what you choose, in our example it is Rooms) you selected above is based on the weighted index. This means the weight is calculated based on how many hours the department used of all hours used at the specific hotel. So this displays the level/department that reduces the total index the most, and what to do to improve the measurement score. Further below you will find an overview of the exact measurements and actions.

4. Colors and width of bars – for the example above you can see that Housekeeping is on amber and medium in width, Reservations are green and narrow 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!).

Part 3 (screen on the right-hand side) explained:

Here you find information on all ARM steps and tasks.

  1. Learn more about ARM steps & tasks – You can access this Knowledge base article by clicking the?. You can also read more Adaptive management here https://en.wikipedia.org/wiki/Adaptive_management
  2. Colors and width of bars – Note: Length = Index score, Width/Weight = Impact on overall index 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 Germany) is shown here.

Revenue & Productivity (R&P)

1a. 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?

1b. Action – make sure editing rights are granted to the correct persons, and that all routinely log in and perform their tasks to benefit from PMI. Also, ensure that all users that no longer work at your property are inactive.

2a. How often do you update the Live forecast? The live forecast forms the basis for staff/resource planning. The target is 10 times. Here it shows you how many times it’s been updated during the last 14 days.

2b. Action – review and update/save Live forecast to ensure a reliable source for resource (staff) allocation. If it’s manually handled, or imported from another source then it’s part of this too. This is not used in the forecast is auto-updated by PMI.

3a. How often do you monitor the Live forecast? The live forecast forms the basis for staff/resource planning. It should be viewed daily. Here it shows you how many times it’s been updated during the last 28 days.

3b. Action – review and update/save Live forecast daily to ensure a reliable source for resource (staff) allocation. Auto updated forecasts should be regularly viewed to see if any changes are needed.

4a. 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 the last day(s), review productivity vs target, and review future schedule vs cost driver. The target is 10 times. Here it shows you how many times the cockpit’s been updated in the last 14 days. Please disregard if automated imports are active.

4b. Action – review and update/save every day. Are you on track with productivity/hours target? Do you need to adjust the future schedule?

5a. 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. Here it shows you how many times it’s been monitored during the last 28 days.

5b. Action – review and adjust the staff schedule. It has to be aligned with daily fluctuating activity levels to ensure staffing is adequate in meeting the productivity norms. Using the comments feature on past (historic) days is great when analyzing a specific period.

Profit & Loss (P&L)

6a. 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. Here it shows you if it’s been more than 31 days since it was last viewed.

6b. Action – please view your P&L.

7a. 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.

7b. Action – please update your P&L for the upcoming period.

8a. 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. Here 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.

8b. Action – speak with your Controller and/or GM and check if an alternative driver can be used, or if a specific day should be manually forecasted.

9a. The Revenue Driver correlation is checked to what the total value was, this means that during the last 365 days the relation 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. Here it shows you the revenue driver used with the actual results for a specific department.

9b. Action – speak with your Controller and/or GM and check if an alternative driver can be used, or if the department would benefit from being manually forecasted.

10a. Reusing the Live forecasting accuracy index for the source department(s). Here the forecasting accuracy for the revenue driver used is checked. Here it shows you if it’s lower than desired.

10b. Action – speak with your Controller and/or GM and check for recurring over or under projections. Check for weekly patterns, consider a driver with higher correlation.

11a. 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. Here it shows you the cost driver used during the last 6 months with the actual results for this department.

11b. Action – speak with your Controller and/or GM to see if an alternative driver can be used, and ensure you’re taking full use of the function of Min/Max/Fixed hours.

12a. Reusing the Live forecasting accuracy index for the source department(s). Here the forecasting accuracy for the cost driver used is checked. Here it shows you if it’s lower than desired.

12b. Action – speak with your Controller and/or GM, do you have a tendency to be too optimistic or pessimistic? Can an alternative driver be used?

13a. 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.

13b. Action – identify the problem. Determine which factors are driving profitability by looking at trends shaping your departments performance. Track your competitors promotional offers, what can you learn from them?

14a. Improvement of the live forecast accuracy is measured. It shows the accuracy higher or lower over time. Here it tells you that your forecasting accuracy has declined during recent weeks.

14b. Action – identify the problem. Determine which factors are driving profitability and cost by looking at trends shaping your departments performance.

15a. It measures if your forecast is frequently biased, too high, or too low, biased live forecast. Here it tells you if your forecast is pessimistic or optimistic.

15b. Action -identify the problem. Speak to your Controller and/or GM, do you have a tendency to be too optimistic or pessimistic? Is the pattern for weekdays different from that of weekends?

16a. The accuracy of the live forecast is measured. Here it tells you the forecasting accuracy is lower than desired.

16b. Action – identify the problem. Speak to you Controller and/or GM, do you have a tendency to be too optimistic or pessimistic? Is the pattern for weekdays different from that of weekends?

Resource Planning Alignment

17a. 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 its made in the forecast for a cost driver.

17b. Action – have there been changes to the forecast (cost driver) but the schedules have not been changed to reflect this? Keep a bird’s-eye view of the live forecast for cost driver and update schedules as needed. Do you need more or less hours?

18a. Measures how hours are adapted to activity. Over or under staffing on historical days are compared to the actual cost driver (i.e. staffing according to actual activity). Here it shows you how the hours adapted to activity over the last 6 weeks.

18b. Action – flexibility in schedules as far as possible. Are you able to make any changes on the day if the activity is not as expected? Would you be able to use the hours on a day(s) it’s actually needed?

19a. 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.

19b. Action – are you able to adjust the schedule where necessary so that it does reflect the expected activity SMART (forecast)?

20a. Measures the scheduled hours’ alignment vs target where the total value is checked. Here it tells you your schedule is regularly misaligned with the expected activity (SMART forecast).

20b. Action – are you able to adjust the schedule where necessary so that it does reflect the expected activity SMART (forecast)?

21a. 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). Here it tells you the hours used per day are not aligned with the daily activity over the last 6 weeks.

21b. Action – a review of the productivity target for the next period is a good start as you are not able to change the current one. Consider also using min and/or max to avoid unrealistically high or low SMART forecast.

22a. 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?

22b. Action – a review of the hours for the next period is a good start as you are able to act on this today. Consider also using min and/or max or fixed hours to avoid unrealistically high or low SMART forecast.

23a. Measures if the Revenue/guests/rooms budget is complete. This is a sanity check of budgeted revenue/covers/guests/rooms for the next months ahead. Here it tells you your revenue budget for the specific month(s) is outside the normal range.

23b. Action – please verify if your budget is correct and updated in the Budget & Forecast module.

24a. Measures if the Revenue/guests/rooms forecast is complete. This is a sanity check of live forecast revenue/covers/guests/rooms for the next months ahead. Here it tells you your revenue live forecast for the specific month(s) is outside the normal range.

24b. Action – please verify if your budget is correct and updated in the Budget & Forecast module.

25a. Measures the complete productivity Budget. This is a sanity check of budgeted productivity/hours for the upcoming months. Here it tells you your productivity budget for the specific month(s) is outside the normal range.

25b. Action – please check your productivity/hours budget and adjust as needed.

26a. Measures the complete productivity Forecast. This is a sanity check of forecasted productivity/hours for the upcoming months. Here it tells you your productivity forecast for the specific month(s) is outside the normal range.

26b. Action – please check your productivity/hours forecast and adjust as needed.

27a. Measures the complete productivity/hours. This is a sanity check of live forecasted productivity/hours for the upcoming months. Here it tells you your live forecast productivity for the specific month(s) is outside the normal range.

27b. Action – please check your live forecast productivity/hours and adjust as needed.

Completeness

28a. 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. Here it tells you it’s been more than a month since you last submitted a forecast to P&L.

28b. Action – please update the P&L.

29a. 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.

29b. Action – please submit the forecasts for the entire period.

30a. Does a submitted Budget exist? The current year has a submitted budget not older than 365 days. Here 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.

30b. Action – please update your budget to P&L.

31a. Are all accounts mapped? Are they mapped or ignored (property level only).

31b. Action – please map the outstanding accounts or contact your Controller for assistance.

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