wco introduction for mongolia farhad

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rld Class Operations Introduction for KFC Mongolia Farhad Kiani

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Page 1: Wco introduction for mongolia farhad

World Class Operations Introduction forKFC Mongolia

Farhad Kiani

Page 2: Wco introduction for mongolia farhad
Page 3: Wco introduction for mongolia farhad

FARHAD KIANITitle: Head of Restaurant Excellence, KFCYears of service: 27 years (since 1985)

JOHN ZHANGTitle: Senior Manager, EngineeringYears of service: 15 years (since 1997)

AJAY KUMARTitle: Restaurant Excellence Manager, KFCYears of service: 4 years (since 2008)

CAROL LOOTitle: Restaurant Excellence Services ManagerYears of service: 27 years (since 1985)

ANTHONY LEONGTitle: Restaurant Excellence ConsultantYears of service: 30 years (and since April 2012)

SANILAH ALITitle: Executive SecretaryYears of service: 15 years (since 1997)

+1 Vacant Position

Page 4: Wco introduction for mongolia farhad

Who am I?

My role is to increase the shareholders value forboth YUM and our Partners

My Job is…• To drive WCO agenda• To ensure perfect Execution every transaction, every shift• To help our partners to be successful and profitable• To build people and organizational capability for our partners• To drive our culture deep• To Protect our Brand

What is my Role?

Page 5: Wco introduction for mongolia farhad

How do we engage with our partners?

Page 6: Wco introduction for mongolia farhad

Main Focus in2012

Page 7: Wco introduction for mongolia farhad

Can Operations Drive Loyalty?

Food + Experience + Value = Decision To Return

• Service • Ambiance

• Quality • Variety

31% 56% 13%

• Price • Value Perception

Page 8: Wco introduction for mongolia farhad
Page 9: Wco introduction for mongolia farhad
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Reinforce Operating Standards & core tools and processes

Standards • Clear, defined, Current, accessible

• Executable Every Transactions, Every Shift

Page 11: Wco introduction for mongolia farhad

Clear and Complete Training Paths

Taking People With You

Page 12: Wco introduction for mongolia farhad

Align Compliance Measurement systems and accountabilities

eCER (Electronic Champs Excellence Review) • A full compliance check done by Specialist

FSA (Food Safety Audit)• Is completed as part of eCER also referred to as FSC Food

Safety Consultation)

CHAMPSCHECK• Mystery shopper program conducted twice a month by an

authorized 3rd party vendor

Page 13: Wco introduction for mongolia farhad

Drive Performance Measurement and elevated Obsession measures

Obsession Measures• Markets with 2-3 well defined Obsession measures, derived from Performance Measures

Performance Measure• Balance Scorecards and Operational measures in place

in all markets and displayed and up to date in every store. (BSC is based on Customer, People, sales and Profit)

• BIT (brand Image Tracker)

• CSS (Champs Satisfaction Survey)

• PDS study (Problem Detection Study)

Page 14: Wco introduction for mongolia farhad
Page 15: Wco introduction for mongolia farhad

• Fusion• KDS• HPK 1 & 2

• Ops Capability Assessment• eCER to full potential

• FSC reporting mechanism• Electronic Hostess System• Tablet ordering • Kiosk ordering• QPM/ePCS

• Customer Relation Management- Delivery• Tablet ordering• Driver GPS

Page 16: Wco introduction for mongolia farhad

Bold Goal

Urgent Actions

AFBUWCO

COMPASS

Key Enablers

Deliver Brand StandardsAs #1 brand Building

Initiative

• Define Standards• Train to deliver

standards• Audit performance

against Standards• +/- Consequences • 3rd Party eCER• CHAMPSCHECK• Food Safety • BSC + Action Plan• Performance

Appraisals

Cultivate Operational Excellence

Mindset

• Have the right organization to support you• Operations enabled by all - x-functionally

• Ops Capability Assessment • Market Action Plan• Structured Store visit program• RE/Ops Structure• # Training Days by designation • Engineering Mindset

• Attract better talents• Replace mediocre talent • Urgent Investment on Training• Task everyone to train

• RGM #1• GM Training• DC certified Mgt• Ops College• Learning Zone• Employer Branding• Career development• Selection Tools• Engage & Energize training program• Success profile

Consistency==Reliability=

Brand Loyalty

• Measure Operations & Brand Metrics• Correlate Operations and Brand Metrics• 100% Champs With a Yes Mindset

• % @ 100• % above 90• CSS/BIT• Branded Service as part of Sogood campaign. • Engaging

• Must permeates from top to bottom• Must be uplifting , Connecting and belonging• must be Mission and Purpose driven

• Above store recognition• Store level recognition• WFP• CM Squad board• Champs Challenge• Champions Club• AC Quarterly award

Create a ‘Cult Like’ Recognition

Culture

Talent Recruitment & Development aSignature Process

Page 17: Wco introduction for mongolia farhad

CHAMPS

The Cornerstone ToRunning Great Restaurants

Page 18: Wco introduction for mongolia farhad

Decision to Return

Food Value

Experience

AmbienceServiceDecision

to Return

+ + + =

Significant research led to an understanding that Operations owned 87% of a consumers “Decision to Return”

87%

31% 56% 13%+ +

Page 19: Wco introduction for mongolia farhad

Historical Perspective of CHAMPS

• Developed by operators at YRI in the mid-90’s:

31% Food 56% Experience 13% Value

100% Decision to Return

For each point lost in experience, we need to gain 4 points in valueor 2 points in food to break even!

Built on the“Recipe For Success” Model

Recipe For Success

Captures all elementsunder control of RGM

CleanlinessHospitalityAccuracyMaintenanceProductSpeed of Service

CHAMPS is a process – not an eventCHAMPS is a process – not an event

Page 20: Wco introduction for mongolia farhad

CHAMPS Improvement System

1

4

2

3

A four point process

designed to help improve

CHAMPS performance

for our customers.

Page 21: Wco introduction for mongolia farhad

CHAMPS Improvement System

CHAMPSCHECK (customer)

Operational feedback from our

customers’ perspective.

Operations still owns 87% of a consumers Decision to Return…

Food + Experience + Value

The experiential

reality that we deliver

overshadows anything that

Marketing can deliver.

Page 22: Wco introduction for mongolia farhad

CHAMPS Improvement System

CHAMPS Excellence

Review(standards)

Operational feedback in theform of standards review.

3rd Party CER defines operational reality for senior leaders to depths that they are often not

able to experience themselves.

Do you…

Know your Business?

Insist on Reality?

Follow Thru?

Reward the Doer?

ALL the way down to each store level?

Page 23: Wco introduction for mongolia farhad

CHAMPS Improvement System

Customer Feedback

(complaint line)

Immediate access for customers to relay and

resolve problems.

Customers who have

their complaints

resolved are the most

loyal.

Page 24: Wco introduction for mongolia farhad

CHAMPS Improvement System

Self-Review LAST CER Self-Scoring CHAMPS Check-Up

Restaurant tools that can be used

in the stores to regularly check their performance against

consumer touch points and operational standards.

Great tools help

restaurant teams define reality every Transaction, Every shift.

Page 25: Wco introduction for mongolia farhad

CHAMPS Improvement System

CHAMPSCHECK (customer)

CHAMPS Excellence

Review(standards)

Customer Feedback

(complaint line)

Using all 4 processes

provides the best

opportunity for CHAMPS Improvement

in our Restaurants.

Self-Review LAST CER Self-Scoring CHAMPS Check-Up

Page 26: Wco introduction for mongolia farhad

CHAMPSCHECK

• YRI created CHAMPSCHECK– A restaurant level feedback mechanism for consumer perceptions

of restaurant experiences.

– Feedback must be timely and actionable.

– To ensure that standards meet our customers’ expectations

Page 27: Wco introduction for mongolia farhad

CHAMPSCHECK

• YRI created CHAMPSCHECK– A restaurant level feedback mechanism for consumer perceptions

of restaurant experiences.

– Feedback must be timely and actionable.

– To ensure that standards meet our customers’ expectations

Page 28: Wco introduction for mongolia farhad

CHAMPSCHECK

• Mystery Customer evaluates their individual restaurant experience against CHAMPS– Anonymous average customer, not a trained professional

shopper.

• Questions based on customer perception.

• Scoring is bucketed “all-or-nothing”– Must receive a “Yes” on all questions within a category to

receive the points for that category.

• Frequency is twice per month

Page 29: Wco introduction for mongolia farhad

CHAMPSCHECK Analysis

• Evaluate and use local CHAMPSCHECK data for example…– Which CHAMPS attribute has the most opportunity for improvement?– Which areas are missing specific questions the most?

• Use all elements of the CHAMPS Improvement System

• Enforce use of CHAMPSCHECK-Up– Pre-rush CHAMPSCHECK

• Consider doing Competitive CHAMPSCHECKs as a means to gain deeper insight into your competitive landscape.

Page 30: Wco introduction for mongolia farhad

CHAMPSCHECK Program – Key Features

Consistent execution across all markets – ‘lead’ vendorsEnhanced reporting at all levels – balanced, specific, actionable

Results owned and actioned by Operations Team

Page 31: Wco introduction for mongolia farhad

YRI CER

How the process works.

Page 32: Wco introduction for mongolia farhad

CER Purpose

• High Level Reality– Provide a systematic view of reality of our restaurant operations for

operators for all levels

• Low Level Reality– Coach and recognize restaurant operators towards consistently

improved performance– Inspire the choice to be excellent every day

“Execution is a systematic way of exposing reality and acting on it.”Larry Bossidy

Page 33: Wco introduction for mongolia farhad

Combining Forces

• Consistently improved performance can only be achieved with operator involvement

• Restaurant behavior must change and be made to stick– Leader led within an organization– Reinforce the mind shift from compliance to a daily commitment to

excellence

“Failure to follow through is a widespread and major cause of poor execution.”Larry Bossidy

“Execution is a systematic way of exposing reality and acting on it.”

Page 34: Wco introduction for mongolia farhad

Company

ARL CER Specialist

How the CER Process Works

The success partners in the CER process are as shown. The relationship between all of these partners is a key factor in the CER process and how it creates value for the organization and our guests.

Restaurants

Page 35: Wco introduction for mongolia farhad

Company

ARL

On the left side is the traditional relationship between an organization and their leadership for results. This is critical the to success of the organization. The leadership is responsible to coach their teams to deliver these results. It is their follow-up and continued reinforcement that makes behavioral changes “stick”.

Results

Coaching

How the CER Process Works

Make It Stick

Restaurants

Page 36: Wco introduction for mongolia farhad

On the right side is the non-traditional relationship between and organization and a CER Specialist to report the purest reality that they can about field operations. This is a critical element that allows Senior Leaders to “live” in their businesses. It is also the CER Specialists responsibility to discover the cause of opportunities and then to coach restaurant teams based on their vast experience, using recognition and influencing skills. Without this characteristic, the CER becomes a test as opposed to a teaching.

Company

CER Specialist

Purest Reality

Coaching

How the CER Process Works

Restaurants

Page 37: Wco introduction for mongolia farhad

ARL CER Specialist

Teamwork

Keeping in mind that the Leadership and CER Specialist have a similar coaching responsibility to the restaurant teams, this teamwork relationship is valuable towards the goal of consistently running great restaurants. Interestingly, both the ARL and the CER Specialists are tasked with consistently running great restaurants.

CoachingCoaching

How the CER Process Works

Make It Stick

Restaurants

Page 38: Wco introduction for mongolia farhad

Company

ARL CER Specialist

CoachingCoaching

Teamwork

Each partner must have a commitment to all relational elements illustrated here to create and foster an environment of success and progressive excellence. It is imperative that the leadership consistently deliver results and appropriately coach theirteams to ensure success.

Purest RealityResults

It is equally essential for the CER process to portray the purest reality to the

organization. It is the only way to provide effective coaching to the restaurant teams, and create the unquestioned value to the

organization.

How the CER Process Works

Make It Stick

Restaurants

Page 39: Wco introduction for mongolia farhad

Success Strategy (Eyes on operational reality at all levels)

• Store level reality is the Action Plan– Operations improve when Action Plan is implemented

• Data confirms this• Completed & Maintained

– Focus on Action Plan = most impactful metric• More impactful than score (outcome) because it focuses on behavior

(process).

• Operators at all levels can make better decisions based on a reality assessment– Store specific, trended or system-wide issues

Page 40: Wco introduction for mongolia farhad
Page 41: Wco introduction for mongolia farhad

Developing Champions

Yum’s Restaurant Management and Area coache’s Training Program

Page 42: Wco introduction for mongolia farhad

DEVELOPING CHAMPIONS OVERVIEW

Page 43: Wco introduction for mongolia farhad

Leading aShift

• 11 Modules in total • 1 HS Modules• 4-6 weeks Full time• 90% in-restaurant• 2 classroom modules -Orientation -Get Ready to Lead

(Duty Manager)

• 19 Modules• 2 HS Modules• 12-14 weeks full time• 90% in-restaurant• 3 classroom modules -Module Trainer TTT -Lead the Team -Lead the Business

(Assistant Manager)(Restaurant General Manager)

• 14 Modules• 4 weeks full time• 90% in-restaurant• 2 classroom modules -Introducing Your Role -Coaching for Success

(Area Manager)

• Complete cross-training & certification for all hourly Team Member positions

• STAR 2000

Leading aRestaurant

Leading MultipleRestaurants

TeamMember

Brand SpecificTraining Developing Champions Training

Training System Overview

Page 44: Wco introduction for mongolia farhad

What is Developing Champions?Curriculum linked to Team Member Training, CSL, and CER Technical and leadership skills required for Restaurant ExcellenceBrand Transparent90% In-restaurant deliveryLearner LeadA series of modules each supported by a trainers guideOrganized into key processes

q Leading a Shift q Leading a Restaurantq Leading Multi Restaurantsq Leading a Market (under development)

Page 45: Wco introduction for mongolia farhad

Module HoursClasses Orientation 4

Get Ready To Lead 8

Modules 1 Customer Mania 92 Cleanliness & Food Safety 123 Safety & Security 104 Emergency Situations 10.55 Basic Human Resource Management 86 Product Quality 97 Daily Inventory 168 Shift Labour 11.59 Cash Control 13.510 Open, Shift Change, Close 1811 Putting It All Together 14

Total 143.5Concept Modules KFC/TB

PH

Drive Thru

Home Service 1Dine-InBuffet

Leading A Shift

Page 46: Wco introduction for mongolia farhad

Leading A Restaurant Modules(In the absence of the Manager)

ModuleClass Module Trainer TTT

Modules 12 Recognition13 Training One-on-One14 Restaurant Audits15 Forecasting16 Managing Food & Paper Costs17 Managing Labour18 Managing Semi-Variables19 Managing Facilities & Equipment20 Basic Restaurant Finances21 Retention22 Recruiting Team Members23 Selecting Team Members

Concept Modules PH Home Service 2

Page 47: Wco introduction for mongolia farhad

Leading A Restaurant Modules(Continuously)

ModuleClasses Lead The Team

Run Great Restaurants Roadmap (Planned forQ4/2002)

Modules 24 Managing Restaurant Training25 Communicating With The Team26 Maximising Restaurant Performance27 Creating a Safe and Positive Environment28 Counseling Your Team29 Developing Your Team30 Marketing

Concept Modules PH Home Service 3

Page 48: Wco introduction for mongolia farhad

Module Class Coaching For Success Modules 1 Introducing Your Role 2 Getting Organised 3 Planning For Success 4 Managing Information

5 Keeping Your Team 6 Rewarding & Recognising Your Team 7 Staffing Your Team 8 Developing Your Team

9 Driving Restaurant Excellence

10 Controlling Costs 11 Building Sales 12 Making Plan

13 Transition To Your Area 14 Demonstrating Habits & Getting

Results

Leading Multi Restaurants

Preparing for

Success

BuildingGreatTeams

RGR

Acting Like Owner

Leading a Team

Page 49: Wco introduction for mongolia farhad

Module Trainer

Learner

TRGM / RGM Area Manager

Op’s ManagerOp’s DirectorField Trainers

Key People

Page 50: Wco introduction for mongolia farhad

Module Trainer

• Shift Supervisor / Shift Manager

• Assistant Restaurant Manager

• Restaurant General Manager

• Training Restaurant General Manager

• Area Manager

Field Trainer

• Training Coordinator

• Senior Training Coordinator

• Concept Training Manager

• Country Training Manager

Who is Who?

Page 51: Wco introduction for mongolia farhad

Learner

Module Trainer

TRGM / RGM

Area Manager

Operations Manager / Director

Field Trainer

Responsibilities

Page 52: Wco introduction for mongolia farhad

Learner Responsibilities

• Complete all Training activities

• Applies knowledge and skills during

• Skills Assessments and Development Record

• READ the module

• PLAN to complete each activity

• DO the work

• DEMONSTRATE knowledge and skill

Page 53: Wco introduction for mongolia farhad

Field Trainer Responsibilities

• Conducts classroom training

• Certifies Module Trainers

• Monitors learner’s progress and Module Trainer performance

• Ensures training is executed to standards

Page 54: Wco introduction for mongolia farhad

• Complete all activities in Module Trainer Guide

• Arrange for materials and resources for learner

• Schedules module activities

• Coaches and supports learner throughout training

• Recognizes and rewards training success

• Prepares learner for Skills Assessment

Module Trainer Responsibilities

Page 55: Wco introduction for mongolia farhad

• Plans and schedules training

• Selects Module Trainers

• Support learner throughout training

• Coaches and supports Module Trainer

• Recognizes and rewards training success

• Conducts and sign off on Skills Assessments

• Prepares learner for Development Record

TRGM/RGM Responsibilities

Page 56: Wco introduction for mongolia farhad

• Monitors learner progress and Module Trainer performance

• Makes sure training is executed to standards

• Coaches and supports TRGMs / RGMs

• Recognizes and rewards training success

• Signs off on Development Record for Certification in LAS and

LAR in the Manager’s absence .

Area Manager Responsibilities

Page 57: Wco introduction for mongolia farhad

• Monitors learner progress and Module Trainer performance

• Makes sure training is executed to standards

• Coaches and supports Area Manager

• Recognizes and rewards training success

• Signs off on Development Record for certification in LAR

Continuously and Leading Multi-Restaurants

Ops Manager/Director Responsibilities

Page 58: Wco introduction for mongolia farhad

Trainer Steps

PREPARE Manager and learner meet to overview modules and agreetimeframe

Manager appoints a “Module Trainer” for each module

SHOW & TELL

GUIDED PRACTICE

Learner completes activities with assistance of CHAMPSStandards Library (CSL) and with instruction asnecessary by the Module Trainer

Learner practices skills with assistance of Module Trainer

CERTIFY Manager assesses learner on knowledge & skills at theend of each module (Module Certification*)

Manager’s supervisor assesses learner on knowledge &skills at the end of the program (Program Certification**)

*Module Certification: Learner is certified to perform the tasks covered in aparticular module (e.g. “Recruiting Team Members”)

**Program Certification: Learner is certified to perform all tasks in a program (e.g.Lead a Shift, Lead a Restaurant, Lead Multiple Restaurants)

Steps to completing each part of DC

Page 59: Wco introduction for mongolia farhad

Module Workbooks for Learners

Module Trainer’s Guides

Skill Assessments

Development Record

Module Planner

Module Readiness Checklists

CSL & CER

Program Tools

Development RecordCertificationTools

EXPERT

Page 60: Wco introduction for mongolia farhad

Certification Tools

• Learners must be certified BEFORE assuming their new position• There are 3 Certification Tools used in Developing Champions:

– Proficiency Assurance System (PAS)– Skills Assessments– Development Record

• Certification Tools measure learner skills and knowledge - not restaurant performance– Restaurant performance is driven by some factors outside the learners

control, e.g.• Team Member selection and training, RGM leadership,

communication, performance management– Experienced shift runners can overcome obstacles but new shift runners

lack the experience, “maturity” or judgement to compensate for these factors

– The Skills Assessments and the Development Record takes these factors into account

Page 61: Wco introduction for mongolia farhad

Skills AssessmentThere is a “Skills Assessment” at the end of each DC Module• 3-4 tasks for the learner to demonstrate and 3-4 discussion questions

which allow the evaluator to test knowledge

• Each skills assessment “stands-alone, i.e: passing the assessment certifies the learner to perform the group of tasks covered in the module e.g.:– LAR Module 13: Train One-on-One– LAR Module 23: Select Team members

• A skills assessment should ideally be conducted by someone other than the Module Trainer

• Recommended assessors are:– LAS: RGM– LAR: Area Manager / Operations Manager or Director– LMR: Operations Manager and Op’s Director

Page 62: Wco introduction for mongolia farhad

• The Development Record (DR) is used to certify a learner in a program– Certified to lead a shift (CHAMPS/Shift Leader or Assistant)– Certified to lead a restaurant (RGM)– Certified to lead a market (Area Coach)

• Completion of the DR is the responsibility of the Area Coach, although parts may be delegated to others (e.g. TRGM)

• Pass Mark is 100%, although allowance is made for some failures:– If the learner doesn’t perform a particular task, the evaluator can give

the learner a “second chance” by asking the learner to demonstrate the task or by asking additional questions to verify the learners knowledge

– The learner can then pass the DR if they perform these tasks correctly

– The above DOES NOT apply to tasks related to safety, Security, or Food Safety. If the learner fails any of these items, the evaluator:

– Completes the DR, but the learner is automatically failed– Schedules a follow-up assessment

Development Record

Page 63: Wco introduction for mongolia farhad

Target Position Prerequisite Training Content Certification Tools

Team Member N/A CHAMPS & BrandSpecific Training

Knowledge Quiz

Performance Evaluation

Shift Manager Team Member training LAS Modules 1-11 PAS

Skills Assessments

Development Record

Assistant Manager LAS 1-11 LAR Modules 12-23 PAS

Skills Assessments

Development Record

RGM LAR 12-23 LAR Modules 24-30 PAS

Skills Assessments

Development Record

TRGM LAR 24-30 N/A Restaurant Certification

Field Trainer LAR 24-30 LMR Modules 1-8 Skills Assessments

Area Coach LAR 24-30 LMR Modules 1-14 Skills Assessments

Evaluation

Certification Standards - Learners

Page 64: Wco introduction for mongolia farhad

Certification Standards – Trainers Target Position Prerequisite Training Content Certification Tools

Team Member Trainer Team Member Training LAS Module 13 Skills Assessment

LAS Module Trainer LAS 1-11 Module Trainer TTT Class Skills Assessments

LAR Module Trainer LAR 12-30 Module Trainer TTT Class Skills Assessments

LMR for Field TrainersModule Trainer

LMR 1-8 Module Trainer TTT Class Skills Assessments

LMR Module Trainer LMR 1-14 Module Trainer TTT Class Skills Assessment

DC Certified Trainer Complete Classes as a learner Teachback Co-facilitate classes

DC Training Manager DC Certified Trainer Facilitation Skills Teachback

Page 65: Wco introduction for mongolia farhad

Fast Track To Restaurant Excellence

Developing Champions

Time

Development

EXPERT

Gold

EXPERT

Shift

Sup.

LMR

LAR

LAS

Assessment

Center

DC Career Path

Duty or Shift Manager

Assistant Manager & RGM

Area Manager

Page 66: Wco introduction for mongolia farhad
Page 67: Wco introduction for mongolia farhad

Which Holding Equipment for Fusion / KDS?

EquipmentHCW UHS ½-Size HC

Products - No mixed products - Mixed products - No mixed products

- No grilled products - All types of products - All types of products

Obstruction Flip door Doorless Flip door

Water Supply Supply (8L/hr) & drainage No Water pan; no drainage

Configuration 1 1 unit of HCW5 2 units of UHS 2 units of half-size HC

Capacity (pans) 5 pans 8 pans (160%) 10 pans (200%)

Footprint (mm) 1524 x 750 (613x2) x 840 (90%) (617x2) x 790 (85%)

Power Rating 4.16 kW 3.1 kW x 2 (149%) 2 kW x 2 (96%)

Pricing S$3,793 US$2,100 x 2 (138%) S$2,010 x 2 (106%)

Configuration 2 1 unit of HCW8 3 units of UHS 3 units of half-size HC

Capacity 8 pans 12 pans (150%) 15 pans (188%)

Footprint (mm) 2460 x 750 (613x3) x 840 (84%) (617x3) x 790 (79%)

Power Rating 8.8 kW 3.1 kW x 3 (106%) 2 kW x 3 (68%)

Pricing S$5,568 US$2,100 x 3 (141%) S$2,010 x 3 (108%)

Page 68: Wco introduction for mongolia farhad

Balanced Scorecard

Page 69: Wco introduction for mongolia farhad

Balanced Scorecard Objectives

• Review the Balanced Scorecard tool, process, and measures

• Examine the benefits of using a Balanced Scorecard

• Assess a Balanced Scorecard and determine how you would coach to improve performance

• Understand the competencies that enable you to be successful in the execution of the Balanced Scorecard Process

Page 70: Wco introduction for mongolia farhad

Our Formula for SuccessPeople Capability First…

Satisfied Customers and Profitability Follow

• PEOPLE (30%)– Ensure that we retain Customer Maniacs– Measures – Annualized Team Member Turnover, Retention. Training ( Some equity markets are now only measuring TM Turnover. The objective is to bring TM Turnover <100% )

• CUSTOMER (30%)– Ensure that we put a Yum on customer faces– Measures – %100’s CHAMPS Checks, Speed with Service

• SALES (20%) & PROFIT (20%)– Ensure that we have focus on BYA Sales and Profits results by achieving plan and managing the profitability of our

restaurants– Measures:

• Net Sales vs. Plan• RCP vs. Plan• Flow-Thru

Note: Weights can change based on specific needs of the individual Brands

Page 71: Wco introduction for mongolia farhad

The Balanced Scorecard

PEOPLE

Turnover

Retention

Training

Staffing

Safety

SALES

Net Sales Vs. Plan

Net vs. Last Year

Concept Net Sales

CUSTOMER

CHAMPSCHECK

Speed with Service

CHAMPS Excellence Review

Customer Calls

PROFITS

RCP Vs. Plan

Flow Thru

RCP vs. Last Year

Non

Wei

ghte

d

W

eigh

ted

Page 72: Wco introduction for mongolia farhad

Example of RGM Targets

Measure SBT BT OT AT SATCustomer 30%

CHAMPSCHECK 20% < 86 86 90 92 94

Avg. In-store Time 10% > 23 23 20 18 16

People 30%

Team Turnover 20% > 125 125 110 90 50

% Turnover

Improvement Over

Prior Year

--- --- 15 30 40

Team Retention 5% < 65 65 75 85 90

% Team Trained in

14 days5% < 68 68 77 86 95

Sales 20%

Sales VS Plan 20% < 96 96 100 103 109

Profit 20%

RCP VS Flow-thru 10% < 99 99 100 103 107

RCP vs Plan 10% < 94 94 100 103 109

RATING5 Significantly

Above Target

6 Above Target

7 On Target

8 Below Target

9 Significantly Below Target

Page 73: Wco introduction for mongolia farhad

Example of AC/OM/OD Targets

Measure SBT BT OT AT SAT

Customer 30%

% of Restaurants Achieved

CHAMPSCheck 15% < 33 33 50 66 83

Aggregate CHAMPSCheck 5% < 86 86 90 92 94

% of Restaurants Achieved

Avg In-Store Time10% < 33 33 50 66 83

People 30%

% of Restaurants Achieved

Team Turnover10% < 33 33 50 66 83

Management Stability 15% < 37 37 47 57 67

% of Restaurants Achieved %

Team Trained in 14 days5% < 33 33 50 66 83

Sales 20%

% of Restaurants Achieved

Sales Plan15% < 33 33 50 66 83

Aggregate Sales vs Plan 5% < 96 96 100 103 109

Profit 20%

% of Restaurants Achieved

RCP vs Flow10% < 33 33 50 66 83

Aggregate RCP/RP vs Plan 10% < 94 94 100 103 109

Page 74: Wco introduction for mongolia farhad

Restaurant Balanced Scorecard Summary

Customer

People

Profit

Sales

Page 75: Wco introduction for mongolia farhad

Restaurant Balanced ScorecardWeighted Items

Weighted Items

Weighted Items

Weighted Items

Weighted Items

Page 76: Wco introduction for mongolia farhad

Restaurant Balanced Scorecard

Non-Weighted Items

Non-Weighted Items

Non-Weighted Items

Non-Weighted Items

Non-Weighted Items

Page 77: Wco introduction for mongolia farhad

Restaurant Balanced ScorecardReporting Time Frames

Reporting Time Frames

Page 78: Wco introduction for mongolia farhad

Restaurant Balanced Scorecard

Rating Scale

BSC Rating Scale

SAT = 5 (Sig. Above Target)

AT = 4(Above Target)

OT = 3(On Target)

BT = 2(Below Target)

SBT = 1(Sig. Below Target)

Page 79: Wco introduction for mongolia farhad

Restaurant Balanced Scorecard Calculating Score

Calculating Score

1. Weight/Total Weight x Rating for each line

2. Add weighted items to get overall score

Page 80: Wco introduction for mongolia farhad

Calculating Customer Rating

WEIGHT MEASURE RATING 30% CUSTOMER 4.33

15% CHAMPSCHECK 5

SPEED of SERVICE

5% DT Order % < 45 sec. 5

10% DT Window % < 60 sec. 3

Calculating Score

1. Weight/Total Weight x Rating for each line

2. Add weighted items to get overall score

MEASURE WEIGHT TOTAL WEIGHT RATING TOTAL

CHAMPSCHECK 15% ÷ 30% X 5

0.5 X 5 2.5

DT Order % < 45 sec. 5% ÷ 30% x 5

.166 x 5 0.833

DT Window % < 60 sec. 10% ÷ 30% x 3

.333 x 3 1

TOTAL 4.33

Page 81: Wco introduction for mongolia farhad

Restaurant Balanced Scorecard Calculating Score

Calculating Score

1. Weight/Total Weight x Rating for each line

2. Add weighted items to get overall score

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Calculating Balanced Scorecard Rating

WEIGHT MEASURE RATINGOVERALL SCORE

30% CUSTOMER 4.33

30% PEOPLE 3.67

20% SALES 4.00

20% PROFIT 2.50

Calculating Score

1. Total Weight x Rating for Category

2. Add weighted items to get overall score

MEASURE TOTAL WEIGHT RATING TOTAL

CUSTOMER 30% X 4.33 1.299

PEOPLE 30% X 3.67 1.101

SALES 20% X 4.00 0.8

PROFIT 20% X 2.50 0.5

TOTAL 3.70

SAT

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Balanced Scorecard Benefits

• Drives our Yum Dynasty Formula for Success • Provides a balanced approach to long term success

– Customer measures ensure we listen and respond to the needs of our customers – People measures ensure we create a great place to work for our teams– Sales and profit measures help to ensure that we meet financial commitments to

shareholders• Aligns RGMs, Area Coaches, and Region Coaches against same performance goals to help

drive results• Measures and provides opportunity for recognition and rewards with timely and accurate

Balanced Scorecard, P&L, and Bonus reports – BSC measures drive merit increases, bonus, and long-term incentives

Why the Balanced Scorecard is so Important….

KFC 2005 Results

BSC%100's

CHAMPSTurnover

%Sales vs. Plan %

RCP vs. Plan %

Flow-Thru %

Top 10% 4.50 59 68 110 122 105Bottom 10% 1.74 42 181 95 88 86

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How Operators Use It

• Coaching tool for operators to celebrate successes and coach against performance gaps– Analyze results and identify areas of opportunities

• Develop action plans using the E.A.R.S. model– Explore: What is the gap?– Analyze: Why is there a gap?– Respond: What actions are needed?– Make it Stick: How to make it a habit?

• Communicate results with entire team– The more Team Members know and understand,

the more they care

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Coaching Using the Balanced Scorecard

Recognize

Recognize

Coach & Set Priorities

Coach & Set Priorities

Recognize

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Coaching Worksheet

Coaching Worksheet

Explore: Observe/Ask/Listen Observations Made Questions to Ask (Feelings & Facts) Listen to Responses

Analyze: Facts? Isolated? or Pattern? Root Cause What are the Facts? (Why? Why? Why? Why? Why?) What is the Root Cause?

Respond: Teach or Provide Feedback/Support/Commitment Stick: Follow-up/Recognition

Action By Whom By When Monitor and Communicate Results Celebrate Small and Big Successes