Luxury Hoteliers Magazine 2nd Quarter 2018 | Page 45

B L EFFECT Moneyball, a best-selling book based on true events, chronicled the penny-pinching Oakland Athletics’ extraordinary run to win their division championship using statistical analysis called sabermetrics (Moneyball). Competing with deep-pocketed teams, the A’s made a game-changing move that completely altered their business model; they began basing all of their recruiting and game-time decisions solely on statistical analysis of measurable factors like number of runs and on-base percentages, rather than star quality, scout instincts, or overall athleticism. By analyzing objective, fact-based data on player performance, the A’s won back-to-back championships— not with League MVPs and first- round draft-picks, but with cast-off veterans and affordable rookies. They built a winning strategy that permanently shifted the way front office management evaluates players. Fifteen years later, the vast majority of professional sports teams employ statisticians and analysts to turn player data into actionable coaching insights. Wouldn’t it be great to have that level of insight at your hotel properties? Imagine what you would learn if you had a full-time statistician analyzing your employees, guests and product offerings, and then developing a plan based on those daily insights. What might they find, and what might you decide to do differently? Incremental revenue consulting firm Frontline Performance Group (FPG) conducted a case study at client property Boca Raton Resort & Club A Waldorf Astoria Resort that validated the Moneyball Theory. The property implemented IN- Gauge, FPG’s revenue optimization and performance management software, to collect real-time data analytics from its most critical customer touchpoint—the frontline. By leveraging actionable data, the property eliminated subjectivity and relied solely on facts to successfully make certain key business decisions. The following managerial actions have been scientifically proven more effective using hard data than by relying on other factors. Each action below is followed by actual results from Boca Raton Resort & Club A Waldorf Astoria Resort case study—in true Moneyball fashion, the numbers speak for themselves. 1. Accurately quantify the value of each employee: Build the ultimate team, free of subjectivity or bias. Evaluate the effectiveness of your agents, not on immeasurable qualities like personality, appearance or likeability, but based on hard numbers like conversion, average revenue per product, and total sales. These objective statistics allow you to identify top and low performers, understand their strengths and weaknesses, and measure their overall contribution to your bottom line. After analyzing these insights, you can properly recognize ILHA 45