Parsimony and productivity paying off

Nation's Restaurant News, April 11, 1994 by Dennis Reynolds

It can be said that parsimony -- the extremely sparing, prudent use of resources -- is paying off in the foodservice industry when labor utilization is discussed. In fact, one of the positive consequences of the last few recessionary years is that aggressive companies have developed and implemented new methodologies for enhancing the productivity of service workers. And for those companies that have dedicated the necessary time and financial resources to this high-return area, the focus on productivity is not just a trendy practice but is in truth a competitive advantage.

At Sodexho USA, for example, we have been measuring and analyzing productivity at various levels of the organization for several years. During this time we have enbraced numerous techniques for its maximization; these vary from the overtly simplistic to the enormously complex. Regardless of the complexity, however, we have discovered that the basics of productivity enhaancement emanate from a handful of key principles.

The first is founded on two simple questions. The primary one is, What is the desired result of the specific task or function? The secondary question is What are the mandatory steps that must be included? As Peter Drucker -- one of the leading authors in the field of business administration -- has pointed out on several occasions, productivity gains come from defining the task and eliminating what does not need to be done. That principle, while seemingly simple, is too often overlooked or taken for granted.

The second key principles is working smarter. This phrase, which has most recently been linked to total quality management, is a basic tent of increased productivity. Simply explained, it means working more productively without working harder or longer.

The real key to working smarter is concentrating on the major steps involved with each task; that is accomplished only by including the suggestions and recommendations of those doing thes work. The importance of that step cannot be overemphasized. Eliciting and applying employee input is one of the most effective techniques available. That seemingly simple concepts is one that has been mastered by consultants for years, yet it is one that too many managers have been slow to embrace.

Hence, the dominant factor critical to the success of any productivity-enhancing procedure is the participation of everyone involved. In other words a manager cannot institute a new "productivity" practice without the cooporation and support of the staff. That is the one aspect of productivity enhancment that is both rewarding and challenging; it requires a team mentality and can be implemented only if the team is cognizant of and focused on the desired goal.

It should be noted that employees often provide suggestions requiring capital expenditures or new technologies that are beyond the reach of the manager. Such advice never should be ignored because of its obvious shortcomings. Instead, managers should catalog these thoughts and communicate them to others in the organization for whom the feasibility may moe readily be realized. In that way great ideas can be translated into reality -- albeit somewhat indirectly -- and enjoyed by multiple users. It is also important that the manager communicate to the employee the evolutionary progress of the suggestion.

The final principle fundamental to enhancing productivity is measuring the results. That process must begin before the implementation of any new productivity-enhancing techniques in order to establish a base line for the operation. Use the same metrics, management and staff can explore which techniques deliver hte best results. Through accurate tracking, the various costs, financial and organizational, can be weighed against the returns.

In summary, the keys to productivity are to define the tasks, concentrate on the critical steps and measure the results. All that should be done repeatedly at a rate that outpaces the changes inherent in the industry, such as major fluctuations in the cost of goods, changing customer demographics, new market trends, shrinking labor pools and increasingly limited capital.

The final point on productivity that cannot be ignored is the negative fallout. Plainly stated, the regrettable downside of productivity maximization, as it applies to work force re-engineering, is that gains in productivity generally greate significant peripheral damage in the form of layoffs.

That is an unfortunate component commonly associated with these economically difficult times. And while it is inadequate consolation for those who have been negatively impacted, layoffs have a direct relationship to the current recessionary economy. That trend has been witnessed in every era of arduous business conditions since the Industrial Revolution and is unlikely to change.

It can be said that the greatest challenge facing managers in the hospitallty arena is to raise the productivity of service workers. That challenge, which will continue to dominate our industry, will be a high priority iten for several decades. Fortunately, this need to manage human resources parsimoniously will not require miracles but will demand managerial acumen at every organizational level. For the leaders of tomorrow, prowess in that area must be demonstrated in the short term and must be ongoing in order for us to achieve long-term results.