1 FOCUS ON SUPERVISION: Guiding Principles for Supervising Success Marcia Thomsen Washington, D.C. October 25, 2005.

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FOCUS ON SUPERVISION:

Guiding Principles for Supervising Success

Marcia Thomsen

Washington, D.C.

October 25, 2005

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Recognize &Reward

InfrastructureIn Place

Set Clear, Universal Goals

Measure &Report Results

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GUIDING PRINCIPLESFOR

DRIVING EXECUTION

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Set Clear, Universal Goals

• Articulate precisely what is expected

• Focus entire workforce against same goals

• Translate goals for every business unit

• Communicate, communicate, communicate

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CE GUIDING PRINCIPLE #1

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Infrastructure In Place

PHYSICAL• Qualified, trained people at each level

• Workable spans of control

• Support System to enable success• people (trainers)• systems & processes• materials & equipment

PHILOSOPHICAL• Interdependency

• Training/coaching/enabling culture

• On-site mentality

GUIDING PRINCIPLE #2

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• Every goal must be measurable

• Data collection must be credible

• “Results are King” mentality

• Regularly report to all levels

• Data drives decision-making and deploys workforce

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Measure &Report Results

GUIDING PRINCIPLE #3

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Recognize &RewardE

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• Results = Rewards

• Structure Incentives to Reinforce Desired Results/Activities

• Promote all available incentives to drive team• financial• recognition• opportunity for advancement

GUIDING PRINCIPLE #4

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SUCCESS LOOPConnecting the four principles in a continuous loop drives success and continuous improvement

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• 4 State region• 600 Restaurants• 16,000 employees• $350MM sales• 28MM transactions/yr

APPLYING THE PRINCIPLES: A CASE STUDY

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Set Clear, Universal Goals

• Deliver in < 30 minutes, 85% of the time

• Achieve customer loyalty score of 65%+

• 100% staffed restaurants/100% trained employees

• Hit profit plan ($40MM)

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SET CLEAR, UNIVERSAL GOALS

• Articulate precisely what is expected

• Focus entire workforce against same goal(s)

• Translate goals for every business unit

• Communicate, communicate, communicate

• Deliver in < 30 minutes, 85% of the time

• Achieve customer loyalty score of 65%+

• 100% staffed restaurants/100% trained employees

• Hit profit plan ($40MM)

PRINCIPLES

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Infrastructure In Place

DVP

MARKET “COACH”

AREA“COACH”

RESTAURANT MANAGER

SPAN OF CONTROL

600

90 – 130

9 - 16

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FACTORS INFLUENCING SPAN OF CONTROL: • Expertise/Tenure of Supervisor• Health of Restaurants• Geography

Physical Infrastructure

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DVP

MARKET“COACH”

AREA“COACH”

RESTAURANT MANAGER

ON-SITE VISITS

1x/year

1x/month

1x/week

FRIDAY NIGHT: ALL-HANDS ON DECK!

Physical InfrastructureE

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Infrastructure In Place

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• Purposeful Interdependence

• Train and “Coach” to enable success

• Effort ≠ Results

• Single Unit Mentality, not averages

• On-site culture; no ivory tower

• Management Exists to support unit “We serve those who serve our customer”

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Infrastructure In Place

Philosophical Infrastructure

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Philosophical Infrastructure supports inverted pyramid“We serve those who serve the customer”

DVP

MARKET“COACH”

AREA“COACH”

RESTAURANT MANAGER/EMPLOYEES

Training Specialist

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Infrastructure In Place

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INFRASTRUCTURE IN PLACE

PRINCIPLES

DVP

MARKET“COACH”

AREA“COACH”

RESTAURANT MANAGER/EMPLOYEES

PHYSICAL• Qualified, trained people at each level

• Workable spans of control

• Support System to enable success• people (trainers)• systems & processes• materials & equipment

PHILOSOPHICAL• Interdependency

• Training/coaching/enabling culture

• On-site mentality

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Measure &Report Results

• Identify Problem Units (Outliers)

• Identify “Best Practices”

• Focus & Deploy Workforce

• Report Widely & Often

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65 CLI

% < 30 Minutes

Staffing/Training

Profitability

Customer Phone Surveys (Weekly)

Automated Thru Driver Dispatch System

Certified HR Specialist

Register Downloads, Creates P&L

CLEAR, UNIVERSAL GOALS MEASUREMENTS

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Measure &Report Results

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TRIAGE RECOVERING STABLE HEALTHY

EACH BUSINESS UNIT IS LIKE A PATIENT

BEST PRACTICES• Observe/replicate

• Train Peers

• Promotion Pool

EMERGENCY ROOM TACTICS• Diagnose Problem

• Deploy Specialists

• Performance Management• 30, 60, 90 day milestones

• Multi-level interventions

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TRIAGE RECOVERING STABLE HEALTHY

Data Drives Purposeful Activity

MOTIVATIONRestaurant StaffMarket/Area CoachDivision StaffTraining Specialist

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Data Reported Widely and Often

• KPI data polled weekly, monthly, quarterly

• Restaurant level data organized & personalized - by Market Coach - by Area Coach

• Rack ’em and Stack ’em - rank “Best” to “Worst”

• “Triage” Units trend reports - analyzed weekly for progress

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Frequent Forums to Review Results & Share Best Practices

Cascading Conference Calls (or Webcasts):- DVP Market Coaches (MC)- MC Area Coaches (AC)- AC Restaurant Managers (RM)- RM Crew

Attendees- DVP - MC- Specialists

Attendees- DVP - MC- AC- Specialists

WEEKLY ROUND-UP

MONTHLY MEETINGS

QUARTERLY CONFERENCES

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• Every goal must be measurable

• Data collection must be credible

• “Results are King” mentality

• Regularly report to all levels

• Data drives decision-making and deploys workforce

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Measure &Report Results

GUIDING PRINCIPLE #3

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Recognition &Reward

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RECOGNITION

ADVANCEMENT

PERFORMANCE = REWARDS

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PERFORMANCE ≠ REWARDS

RECOGNITION

ADVANCEMENT

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PERFORMANCE = REWARDS

PERFORMANCE APPRAISAL!

• Annual process

• Tied to results vs. goals

• Standardized data-driven evaluation

PAY RAISE

• % increase off base

BONUS

• Incremental

• Meet or exceed result targets

• Exponential if excelling

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PERFORMANCE = REWARDS

KEY PERFORMANCEINDICATORS

• CLI• %< 30• Profit• Staffing• Overall

RECOGNITION

WEEKLY

MONTHLY

QUARTER

ANNUAL

• Phone call• e-Newsletter

• “Broadcast” v-mail• Newsletter• Personal letter• Pin• Award @ Qrtly Mtg• Opportunity to teach

• Join DVP Roundtable• Nominated for Manager of the Year• CEO/COO Visit

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RestaurantManager

TrainingSpecialist

AreaCoach

MarketCoach

Division/HQStaff

ADVANCEMENT

• Broader Skills • Broaden Influence• Higher Salary • Greater Prestige

PERFORMANCE = REWARDS

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Recognize &RewardE

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• Results = Rewards

• Structure Incentives to Reinforce Desired Results/Activities

• Promote all available incentives to drive team• financial• recognition• opportunity for advancement

GUIDING PRINCIPLE #4

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FOUR GUIDING PRINCIPLES FOR SUPERVISING SUCCESS