Learning Activity 1.What are the key problems facing Richard and his organization as described in this scenario? a.If you were in Richard’s shoes how might you go about addressing these challenges? b.What would be your strategy and why? c.Be sure to provide appropriate justification and a specific (i.e., detailed and measurable) action plan.

QUESTION

Read the case study and answer the 5 questions a the end.

Measurement before Management

Richard Brusher works for a major global food & beverage management company. His corporation has decided that his talents, honed as head of strategy for the brand, need to be targeted towards the north-eastern sector of the United States. This region has sixty-four restaurants and is presently the corporation’s weakest performing region. Of particular concern to his boss is the ability of one of the competitors in the region to respond to market forces more readily, leaving the company at a major disadvantage. One competitor in particular always seems to have its finger on the pulse and adjusts its menu pricing perfectly to meet shifting demand seen in the region. It packages deals constantly to meet with high approval, and owners couldn’t be happier.

Having been burned from the many “if you buy it, they will come” computer solutions offered by many dot com vendors, management is skeptical of purchasing new systems. Fortunately, Richard has a history of solving problems with little increased spending due to his ability to manage and use information effectively. Management is in clear agreement that the company presently at a competitive disadvantage. Rather than react to every new offering a competing restaurant may introduce to the marketplace. Richard and his boss concur that the best strategy to compete is to better use information and to build a solid foundation of smart business practices blended with customer focuses services and quality food & beverage offerings. The following five goals have been established and will be used as the basis of measuring Richards performance over the next year:

1.Increase revenue by 5%

2.Increase customer covers by 6%

3.Increase Guest Service Index (GSI) scores to 3.5 (on a scale of 1 to 5, with 5 being the most satisfied and 1 being the least satisfied)

4.Decrease food cost by 5%

5.Reduce employee turnover by 15%

Current Systems

Luckily for Richard, each restaurant recently upgraded its technology applications portfolio. Currently each restaurant shares similar network infrastructure and common operating system. High-speed internet access is available at all properties on personal computers using Microsoft Windows Software, despite being upgraded, has not been standardized throughout the company. Among the sixty-four restaurants in Richards region, there are three different restaurant POS systems, and three different database architectures in use. Additionally, work processing, spreadsheets and other productivity software differ from property to property. Browser software is equally divided in the company between Internet Explorer and Firefox.

Current Procedures

Report compilation and dissemination requires each restaurant auditor to fax flash reports to the regional office where the numbers are entered manually into spreadsheets so that a consolidated report for the region can prepared. Comment cards, the sole measurement of the GSI scores, are mailed to the corporate office each week. The corporate office compiles the scores to create the GSI index and then mails a printed report to the regional office each month. The food and beverage director submits bi-weekly purchasing history and nightly sales data to the restaurant manager who compiles the data and emails a series of reports to the regional office. Each month, the regional office emails a series of summary financial and operating reports to the corporate office and each property in the region detailing actual performance versus budget and year-to-date-statistics. These reports are then reviewed by the general manager and become subject to discussion in manager meetings in each restaurant.

Richard has some great ideas for a new strategy, He knows that he has to be able to measure what he is about to manage. Our learning activity is based on that theme.

Learning Activity

1.What are the key problems facing Richard and his organization as described in this scenario?

a.If you were in Richard’s shoes how might you go about addressing these challenges?

b.What would be your strategy and why?

c.Be sure to provide appropriate justification and a specific (i.e., detailed and measurable) action plan.

2.Before any action is taken, what managerial measurements must be implemented for the company’s five goals, and how should these be implemented?

a.What procedural changes are required at each property and at the regional and corporate offices?

b.How should these changes be introduced, and who should lead the change effort?

3.Would any of data required access restriction?

a.If so, who should have access, and to which data?

4.Evaluate the technology applications portfolio and infrastructure for Richard’s company.

a.What are the strengths and limitations?

b.In what ways is technology being used effectively?

c.Where is there room for improvement?

d.What changes would you suggest and why?

5.If you were to design a balanced scorecard approach for measuring and monitoring performance and the overall health of the organization for Richard’s company, how would you go about it?

a.Where would you start?

b.What issues might you face, and how would you overcome them?

c.What would your proposed balanced scorecard look like?

ANSWER

Enhancing Performance and Efficiency: A Case Study Analysis

Introduction

In this case study analysis, we explore the challenges faced by Richard and his organization, a major global food and beverage management company, in the northeastern region of the United States. We identify key problems, propose strategies for addressing them, and outline a detailed action plan. Additionally, we discuss the implementation of managerial measurements, necessary procedural changes, data access restrictions, and the evaluation of technology applications. Finally, we design a balanced scorecard approach to measure and monitor the organization’s performance and overall health.

Key Problems and Addressing the Challenges

Richard’s organization encounters several obstacles, including the lack of standardized systems, inefficient reporting procedures, limited access to real-time data, and a competitive disadvantage (Morrison-Smith & Ruiz, 2020). To tackle these issues, Richard needs to focus on leveraging information effectively to improve business practices, customer service, and product offerings.

To address these challenges, the proposed strategy involves implementing a standardized technology infrastructure, streamlining reporting procedures, and enabling real-time data access. This strategy will ensure better decision-making, increased operational efficiency, and improved customer satisfaction.

Action Plan: Standardizing Systems and Streamlining Reporting Procedures

The action plan includes the following steps:

Standardize Systems: Evaluate the existing POS systems, database architectures, and software applications across the organization’s restaurants. Implement a phased approach to standardize these systems throughout the region, ensuring compatibility, efficiency, and ease of data integration.

Streamline Reporting Procedures: Introduce automated reporting systems that eliminate manual data entry and streamline report compilation. Integrated software solutions should be employed to collect and analyze data from various sources, generating consolidated reports for the region and individual properties. This approach will enhance accuracy, speed, and efficiency in accessing critical information.

Real-time Data Access: Implement a centralized data management system that enables real-time data collection, analysis, and reporting. This system should provide access to key stakeholders, such as regional and corporate offices, restaurant managers, and staff. Real-time data access allows for prompt decision-making, effective response to market changes, and improved customer satisfaction.

Training and Change Management: Provide comprehensive training programs to employees at all levels to ensure a smooth transition to the new technology infrastructure and reporting procedures. Assign change champions to lead the change effort, promoting adoption and acceptance among the staff. Effective change management will facilitate a successful implementation and mitigate any resistance to new systems and procedures.

Managerial Measurements and Procedural Changes

To measure the achievement of the organization’s goals, several managerial measurements should be implemented. Procedural changes are required at each property, as well as at the regional and corporate offices.

At each property, standardized POS systems, database architectures, and software applications should be implemented. Protocols for data collection and reporting should be established, and staff should be encouraged to collect and submit comment cards electronically. This ensures consistency and efficiency in data management and enhances customer feedback collection.

At the regional and corporate offices, a centralized data management system should be developed to integrate data from all properties and generate consolidated reports. Automation of data collection and analysis processes will streamline reporting and provide real-time access to performance metrics (Dwivedi et al., 2022). This empowers decision-makers with up-to-date information for timely interventions and adjustments.

Data Access Restrictions

To maintain data security and confidentiality, access to sensitive financial information, customer data, and strategic planning documents should be restricted to authorized personnel. Access should be granted on a need-to-know basis, ensuring that only individuals with relevant roles and responsibilities can access specific data sets. This ensures data privacy and minimizes the risk of unauthorized data usage.

Evaluation of Technology Applications Portfolio and Infrastructure

The organization’s recent technology upgrades have provided high-speed internet access and standardized operating systems. However, the existence of multiple POS systems, database architectures, and software applications poses challenges to data integration and analysis.

To address these limitations, the organization should focus on standardization, automation, and real-time data access (Alotaibi & Federico, 2017). Implementing standardized systems will streamline operations, enhance data integration, and improve overall efficiency. Automation of reporting processes will reduce manual efforts, minimize errors, and accelerate the availability of critical information. Finally, real-time data access will empower decision-makers with the necessary insights to make informed and proactive decisions.

Designing a Balanced Scorecard Approach

A balanced scorecard approach is essential for measuring and monitoring performance and the overall health of the organization. It provides a comprehensive view by considering financial, customer, internal process, and employee development perspectives.

The balanced scorecard should include key performance indicators (KPIs) aligned with the organization’s five goals. For example, revenue growth percentage, customer satisfaction index, process efficiency metrics, and employee retention rate can be measured. Regular updates and communication of the balanced scorecard to all stakeholders will promote a shared understanding of organizational goals and encourage individual contributions towards their achievement.

Conclusion

In conclusion, Richard and his organization face challenges related to technology standardization, inefficient reporting procedures, limited access to real-time data, and a competitive disadvantage. By implementing the proposed strategies, including standardized systems, streamlined reporting procedures, real-time data access, and a balanced scorecard approach, the organization can enhance its performance, efficiency, and competitive positioning. The action plan, procedural changes, and focus on data security will contribute to the successful implementation of the proposed initiatives. Ultimately, these measures will enable Richard’s organization to achieve its goals and drive sustainable growth in the northeastern region.

References

Alotaibi, Y. K., & Federico, F. (2017). The impact of health information technology on patient safety. Saudi Medical Journal, 38(12), 1173–1180. https://doi.org/10.15537/smj.2017.12.20631 

Dwivedi, Y. K., Hughes, L., Baabdullah, A. M., Ribeiro-Navarrete, S., Giannakis, M., Al-Debei, M. M., Dennehy, D., Metri, B. A., Buhalis, D., Cheung, C. M. K., Conboy, K., Doyle, R., Dubey, R., Dutot, V., Felix, R., Goyal, D., Gustafsson, A., Hinsch, C., Jebabli, I., . . . Wamba, S. F. (2022). Metaverse beyond the hype: Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy. International Journal of Information Management, 66, 102542. https://doi.org/10.1016/j.ijinfomgt.2022.102542 

Morrison-Smith, S., & Ruiz, J. (2020). Challenges and barriers in virtual teams: a literature review. SN Applied Sciences, 2(6). https://doi.org/10.1007/s42452-020-2801-5