Management perspective overview
Summary
The PMI Management perspective provides a complex, yet intuitive overview of the property’s performance; past, present and future, all in one view.
Intended Users
All users
Instructions
Top of page − Revenue and Hours graphs
- Use the top right-hand corner to select the time period you’d like to view—options include a month, several months, or a full year.
- The graphs at the top are dynamically linked to the tables below. When a department or KPI is highlighted in the table, it will be reflected in the corresponding graph.
- The legend beneath the graph allows you to toggle the data you wish to show or hide.
- The black, dotted vertical “Today line” visually separates past actuals from future forecasts or projections.
- Above the revenue graph, you can switch between daily or monthly trends using the radio buttons. Likewise, above the hours graph, you can choose to view total hours, total productivity, operational productivity, or labor cost percentages using the available radio buttons.
Left hand side table − Operational revenue
- Click any row in the table (the selected row is marked with a magnifying glass and labeled as the “Show in Graph” button) to display the selected data in the graph above the table. The KPI column shows the property’s performance compared to the Forecast, Budget, or Last Year.
MTD Forecast and Budget revenue and rooms/guests is not a summary of the daily forecast and budget figures you find in Live Forecast. Instead, it is found through a calculation and should answer the question “where should we have been today to achieve our monthly forecast/budget?”, given that the Live forecast for the rest of the month is correct. MTD Forecast is found by dividing the monthly forecast by the month-end Live forecast multiplied by the actuals month to date.
Left hand side − RevPOLU
The revenue per operational labor unit (RevPOLU) area shows important key figures for the property. It shows the month-to-date result in a larger font size and the current month-end figures for Live forecast (actual plus planned), Forecast, Budget and Last Year. It is calculated according to SMART (Specific, Measurable, Aligned, Realistic & Time sensitive).
The green or red upward or downward pointing arrow next to the month-to-date RevPOLU indicates if the figure is better or worse compared to the Forecast (color) and Last Year (arrow direction).
Bottom of page − 12-months On The Books (OTB) Room Nights
The bottom graph presents 12-month On The Books Room Nights. Choose what to display in the legend below the graph; Actual OTB, Pickup Last Year, Last Year, Rolling Forecast, Budget and Forecast (not applicable to a pure restaurant operation).
Right hand side table − Labor Hours, Cockpits (departments)
Rows in Red and Red columns in the graph above is displaying that the Cockpit have not been saved.
1. The Management Perspective provides an overview of departmental month-to-date labor and month-end productivity. Click any row (the selected row is highlighted with a magnifying glass and labeled as the “Show in Graph” button) to display the selected data in the graph above. The KPI column indicates whether departments are performing above or below target compared to the Forecast and Last Year.
2. Budgeted, forecasted and last year’s hours are recalculated based on the actual activity level, using the productivity from budget/forecast/last year − SMART (Specific, Measurable, Aligned, Realistic & Time sensitive). Example: If a department serves two times the number of guests forecasted, they most likely will need more hours than originally forecasted. If the comparison is made towards the actual number of forecasted hours, it would seem like they are spending more hours than they should. By using the forecasted productivity instead, and applying this to the actual number of guests, we simulate how many hours would have been forecasted if the forecasted number of guests had been correct, and we get a more appropriate comparison. This recalculation is made to be able to compare apples to apples, and the same principle applies to Last Year and Budget also. The actual budgeted and forecasted numbers can be found in both Other Budget and Forecast module and in the Time Sheet.
3. The Cockpit totals (divisions) will not add up to the division summaries since the Cockpit drives on operational targets and the divisions on a financial one. A financial goal is all revenues divided by total hours spent but an operational target is not necessarily linked to revenues,. E.g., the Housekeeping Cockpit sets cleaned rooms per worked hour as an operational target. Nevertheless, the Rooms Division Manager has to look at the overall financial goal since he/she has responsibility of the overall result.
4. By adding Static Forecast, Budget or Last Year in the View Box, (see below) a new column will appear, displaying the submitted Forecast, submitted Budget or Actual Last Year. These figures are then NOT recalculate according to SMART, i.e does not take into consideration if the Activity Level for that department is different than forecasted or budgeted.
Right hand side table − Food Cost
- Based on your settings, the Food Cost section (if applicable) displays the food cost percentage along with the actual cost in the selected currency, comparing it against the Forecast, Budget, or Last Year.
- The Inventory vs. Par-stock section shows the current inventory levels relative to the ideal inventory targets.
- Turnover Days indicates how long it takes for the inventory to be fully rotated compared to the target. (The industry standard is typically 10 days, meaning inventory should turn over three times per month).
Tools
In Tools you have the option of exporting the Management Perspective to Excel or PDF.-
View Options
Allows you to choose what data to measure against; Forecast, Budget/Target or Last Year.
If tick box Incl.Static Number is chosen, a new column will appear in the Management Perspective on the right hand side displaying the Submitted Forecast, Submitted Budget or Actual Last Year, depending on the choice made above.
This will only work when looking at Hours, Personnel Cost % or Cost. For Total Productivity or Operational Productivity, this option is not available since these numbers are never SMART.
Recommendations
Use the Management Perspective to get a complete overview of the property and to quickly identify where action needs to be taken. Look for deviations between Forecast and actual or planned, and focus on future dates (identified in the top right graph) where it is not too late to take action. Also, get a quick status of the on-the-books reservation for rooms (hotel properties).