The document discusses how Station Casinos uses periodic employee and customer surveys through a proprietary process called the Service-Culture Map to improve organizational performance. The Service-Culture Map measures six key organizational dimensions through surveys to help define an organization's vision, develop performance measures, gain employee commitment, and nurture an effective culture. It is illustrated through the example of Sunset Station casino, which improved its employee satisfaction scores from below average to excellence levels after two years of using the Service-Culture Map process.

1. Improving Organizational
Performance
Using Survey-driven
Databases
The search for organizational peak performance is considered by many to be the Holy Grail
of the business world. A new process involving periodic employee and customer surveys
by Gene Ference can help in that search and be the beginning of organizational-performance improvement.
T he process of achieving orga-
nizational peak performance
is often thought of in the same way
that Winston Churchill character-
ized Russia: “… a riddle wrapped
in a mystery inside an enigma.”
Although achieving peak perfor-
mance is, indeed, one of the most
illusive of company goals, the situa-
tion is not hopeless.
This article describes how Station
Casinos, a Las Vegas hotel-casino
management company, uses a pro-
prietary, trademarked process (called
the Service–Culture Map) to en-
hance its organizational perfor-
mance. The Service–Culture Map, Gene Ference, Ph.D., is president of
illustrated on pages 14–15, can be Connecticut-based HVS International/
used to (1) define an organization’s The Ference Group ( gference@
vision and decision guidelines, hvsinternational.com).
(2) develop employee-performance
measures, (3) gain team-member © 2001, Cornell University
12 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

2. O P E R AT I O N S M A N A G E M E N T
commitment, and (4) nurture a Human resources. In 1997,
company-wide culture that encour- Valerie Murzl, Station Casino’s
ages peak performance from execu- vice president of human resources,
tives, managers, and employees alike. was hired to spearhead the develop-
Organizational dimensions are ment of a company-wide human-
clusters of related survey statements. resources program and to help sup-
Using a combination of employee port Station’s goal of continuous Photo: Las Vegas News Bureau
and customer surveys, the Service– growth. A human-resources veteran
Culture Map measures six key with over 25 years of hotel-industry
organizational dimensions: (1) orga- experience, Murzl believed strongly
nizational communication, (2) orga- in the value of measuring organiza-
nizational teamwork, (3) executive tional culture through satisfaction
leadership, (4) mid-management surveys, data analysis, and subse-
practices, (5) job satisfaction and quent action planning. As it turned
morale, and (6) training and career out, the Service–Culture Map was
development. Those organizational a good fit for Murzl’s philosophy,
dimensions are broad functions style, and goals:
through which senior executives can I believe the ultimate goal of the
monitor and implement company- Service–Culture Map is quite
wide strategies and objectives. The simple—the process develops self-
surveys can be customized so that empowered people who are sincerely
interested in bettering themselves
measurements are not limited to
and their companies. The result is
those six dimensions, but can in- an organization that feeds on height-
clude additional dimensions such as ened employee creativity and enthu-
strategic-goal achievement, service siasm. When a company under-
quality, and competitive positioning. stands where it is, versus where it
wants to be, the process becomes “The goal of the Service–Culture Map is quite
It may be helpful to refer to the simple—the process develops self-empowered
Service–Culture Map throughout a powerful tool for providing the
missing pieces, bridging the gap, people who are sincerely interested in
this article. bettering themselves and their companies.”
and advancing to a higher level of —Valerie Murzl, Station Casino’s
organizational effectiveness.
Station Casinos corporate vice president
The Service–Culture Map out- for human resources
The Station name was first intro-
lines key steps needed to create a
duced to Las Vegas in 1983 at Palace
successful service company. The
Station. Since then the Station Casi-
model focuses on employee satisfac-
nos company has grown substan-
tion, commitment, and customer
tially. Today it comprises nine sepa-
responsiveness as the keys to a
rate gaming and entertainment
strong return on owner investment.
complexes and has approximately
When measuring those factors the
11,000 employees. The mission of
Service–Culture Map identifies that
each Station property is to deliver an
the drivers for empowerment, cre-
array of entertainment and gaming
ativity, and enthusiasm are at the
options in an environment charac-
hourly employee level, while the
terized by quality and attention to
drivers for commitment, teamwork,
detail. To fulfill its mission, Station
and communication lie at the ex-
Casinos offers comfortable hotel
ecutive level.
rooms at an affordable price, gaming
venues, movie theaters, specialty Sunset Station: A Case Study
restaurants, child care for employees,
Sunset Station is one of nine hotel-
live entertainment, and a variety of
casinos in the greater Las Vegas
fast-food venues. It may be said that
community operated by Station
Station Casinos properties are no-
Casinos. It opened on June 10,
table for their great value and per-
1997. Sunset Station offers 457
sonalized service.
April 2001 • 13

3. Exhibit 1
Service–Culture Map™
Phase I Phase II
STRATEGIC THINKING SURVEY-DRIVEN DATABASE
M
Step 1: Master plan Step 2: Survey design Step 4: Reports
• Corporate opinion • Structures:
M
Vision
L M • Employee satisfaction —Multi-level
Core values • Customer satisfaction —Multi-segmented
L M • Alignment assessment —Cross correlations
Mission statement • Data formats:
M
—Baseline
L M
—Comparative
Credo or motto
Step 3: Survey administration —Trend
L M
—Demographic
Guiding management • Populations • Narrative commentary
principles • Cycle times
L M • Resources
Standards
Reassessing foundation basics Achieving peak performance
Process re-evaluation:
Renew the process with Steps 3–10
Steps 1–2
M M
Step 10: Managing for continuous improvement
Source: HVS/The Ference Group; TheFerenceGroup.com; gference@hvsinternational.com
rooms and suites, 12 restaurants, 8 Don Marrandino opened the
bars, a 600-seat night club, a 5,000- Sunset Station property as general
seat amphitheater, 13 movie theaters manager. A strong believer in hotel-
with a seating capacity of over 3,000 wide and department-level vision
viewers, 3,000 slot machines, 50 and mission statements, coupled
gaming tables, a 600-seat bingo with goal setting, Marrandino set
room, and a 400-seat facility for out to establish a service culture
betting on racing and other sporting based on creativity, commitment,
events. Sunset Station also offers a and self-empowerment. In so doing,
gym, pool, fitness center, and a he found the Service–Culture Map
6,000-square-foot video arcade for to be a useful tool.
children. Sunset Station has 1,800 Baseline. HVS/The Ference
employees (called team members), Group uses percentages to identify
runs an annual occupancy over 90 company, employee, and customer-
percent, welcomes 20,000 guests satisfaction ratings. The following
and casino customers per day, and table is based on findings from over
prepares 200,000 meals per month. 20 years of data collection and ap-
14 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

4. O P E R AT I O N S M A N A G E M E N T
Phase III Phase IV
TEAM DYNAMICS ORGANIZATIONAL CULTURE
M
Step 9:
M
Step 5: Data analysis
Achieving peak performance
• Historical performance M Step 6: Goal setting
• Internal benchmarks Employee satisfaction
• Industry norms • Types • Time frames L M
• Gap and spread analysis —Systems —Immediate Customer satisfaction
• Root-cause analysis —Processes —Moderate L M
• Key-driver correlation —Relationship —Long range Employee retention
• Overall satisfaction —Best practices L M
M
M —Stretch targets Market share and loyalty
L M
TEAMSTRATEGICS DAILY CYCLE Product and profit dominance
Step 8: Relationship management Step 7: Feedback formats
• Build team dynamics
• Foster creativity
• Pre shift
• Cross functional
M
• Develop learning–coaching • Departmental communications
environment • Visible management Return on owner’s investment
• Measure performance • Focus groups
• Leverage motivation • Executive-level meetings
• Have fun • Workshops and retreats
M
M
Competence — Commitment — Coherence
proximately 30 million survey re- ment, the employee-satisfaction
sponses. The categories have been score was only 65 percent. In De-
in use since the 1980s. cember 1999, after administering
Employee-satisfaction Levels: the survey just three times and em-
Excellence 86 to 100 percent ploying the Service–Culture Map
for a little over two years, Sunset
Above average 79 to 85.9 percent
Station achieved an employee-
Average 73 to 78.9 percent satisfaction-survey rating of over 86
Below average 66 to 72.9 percent percent, thereby achieving an “ex-
Poor to failing ≤ 65.9 percent cellence” rating for employee satis-
Sunset Station conducted its faction. Moreover, Sunset Station
first employee-satisfaction survey successfully elevated the department
in December 1997. The property that scored lowest in the 1997 sur-
achieved a rating of 79.1 percent. vey from 65 percent to 78 percent.
This barely qualified the property In 1999 Marrandino was pro-
for inclusion in the above-average moted from general manager to
category. In one particular depart- president of Sunset Station. Cookie
April 2001 • 15

5. losophy? What are our financial
Exhibit 2 goals?
Team-member satisfaction surveys ➔ I-CPN* = Credo or motto: Generally, a one-line
77.6% statement capturing the spirit and
December 1999 36% 86.2%
essence of the vision and mission
(n = 1,507) statements. All employees should
December 1998
understand, embrace, and re-
36% 80.8%
(n = 1,437) member (if not memorize) the
company’s credo or motto.
December 1997 37% Guiding management principles: A set
79.1%
(n = 1,222)
of operational principles agreed
25% 50% 75% to by all members of an executive
team. The principles focus on
Tend to agree Strongly agree how employees manage them-
selves on a day-to-day basis. The
*Industry-Comparative Performance Norm (as determined by HVS/The Ference Group) guiding management principles
encourage and direct employees
to use their highest level of per-
Dreschler was promoted from direc- ness, and creates overall success for sonal effectiveness in the pursuit
tor of finance to general manager. the company or brand. Working in of systematic and continuous
While other hotels have achieved concert with each other, those ele- improvement. Just as a rising tide
a rating of “excellence,” Sunset Sta- ments become a company’s master lifts all boats, an organization
tion is the first hotel-casino to reach plan. where individuals can achieve
that highest category of employee Step 1—Master plan. The mas- their highest level of personal
satisfaction. Significantly, its score ter plan lays the foundation for cre- effectiveness is, by definition, a
placed 8.6 percentage points above ation of a company culture. Without company that is likely to achieve
the Industry-Comparative Per- such a plan and the attendant ex- its highest level of organizational
formance Norm (I-CPN), which ecutive focus and action, an organi- effectiveness.
is calculated from over 2,000 zation has no internal compass. If an Standards: There are two categories
hospitality-service properties world- organization doesn’t know what it of standards: technical standards,
wide (hotels and casinos) that are is, it can’t have a clue what it wants which identify operational tasks
included in HVS/The Ference to be. Experience from working specific to departments, and ser-
Group’s normative databank. Ex- with successful service companies vice standards, which identify
hibit 2 illustrates the overall survey supports the premise that employees levels of interpersonal service
results for Sunset Station. at all levels seek direction and pur- provided by employees. Standards
pose. A master plan, comprising a facilitate the creation of a consis-
Phase I: Strategic Thinking company’s vision, core values, mis- tent and clear culture that per-
Strategic Thinking (Phase 1 of sion statement, credo or motto, meates all company activities by
the Service–Culture Map) provides guiding management principles, codifying (1) how decisions are
alignment of the elements necessary and standards provides that focus. made, (2) how the organizational
for a successful company culture: The individual elements of the structure complements operating
vision, core values, mission state- master plan are defined below. principles, and (3) the desired
ment, credo or motto, guiding Vision: What the organization wants long-term market position.
management principles, and stan- to become. Once the master plan is success-
dards. Those elements are critically Core values: Timeless principles that fully implemented, employees have
important if employees are to use employees believe in and upon the direction and sense of purpose
their knowledge, experience, and which companies are built. necessary for performance success.
insights to improve performance. A Mission statement: A strategic docu- This is an important point. There is
successful company culture enables ment identifying key constituen- a fundamental link between strate-
employees to create new ways to cies. What business are we in? gic thinking at the senior-executive
manage systems and processes, en- What is our market? What is the level and the implementation of
sures that day-to-day standards are level of our product and service? those strategies at the front-line and
met, enhances leadership effective- What is our management phi- guest-contact levels.
16 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

6. O P E R AT I O N S M A N A G E M E N T
Step 1 suggests that the ultimate dimensions thereby ensuring that
reason for the diffusion of any stra- survey statements are in alignment
tegic plan may be measured by with a company’s master plan. Well-
comparing employee perceptions designed surveys measure what is
of two organizational dimensions: important to all stakeholders. For
(1) organizational communication instance, employee-satisfaction sur-
and (2) training and career develop- veys should be designed to provide
ment. For example, strong interde- for immediate operational insights,
partmental communication allows employee empowerment, and moti-
for rapid identification and imple- vation. Mechanisms that promote
mentation of new employee skills organizational communication are
within a department. At Sunset paramount if teams are to become
Station, the correlations between sophisticated enough to develop the
organizational communication and ability to think strategically.
training and career development At Sunset Station, following the
generally are moderately strong to steps of the Service–Culture Map
strong (r = .500 to .590). Impor- has strengthened the interrelation-
tantly, the correlations become ship between the organizational-
stronger over the years of survey communication and organizational-
administration. teamwork dimensions. Again, in our
experience, the correlations become
Phase II: Survey-driven Database stronger as the survey is adminis-
A company’s quest for continuous tered year after year.
improvement requires the use of By the time the most recent
quantitative data for problem solv- Sunset Station survey results were “Our team-member surveys have 42 questions
ing, decision making, action plan- completed, in January 2001, the and focus on relationship management, which
is all about communications, motivation,
ning, and change. A high priority correlations between the dimensions teamwork, and leadership. In other words,
must be placed on developing a organizational communication and we are measuring the cultural aspects of what
strong database and gathering from organizational teamwork in many our team members create everyday through
it as much relevant information as instances ranged from moderately their actions and performance.”
—Don Marrandino,
possible to plan organizational and strong to very strong (including r = President of East Las Vegas
operational improvements. To build .755). Of the four organizational Operations for Station Casinos
such a database, the Ference Group levels, (executives, managers, super-
is in favor of surveying employees visors, and hourly employees), the
and customers to determine satisfac- correlations per survey statement
tion levels. were consistently higher for hourly
Step 2—Survey design. Effec- employees. This is to be expected.
tive surveys capture timely informa- A significant part of front-line em-
tion that can be translated easily ployee success depends on the ex-
into action plans. Surveys encompass tent of organizational communica-
a variety of designs and purposes. tion and organizational teamwork in
For example, they can measure: a company. For hourly employees,
(1) Corporate opinion, for scope other high correlations with organi-
and direction; zational communication and organi-
(2) Employee satisfaction, for zational teamwork were: perceptions
operational culture; of “team member mutual support
(3) Customer and guest satisfac- and encouragement” and “manage-
tion, for brand loyalty; and ment encouragement for employees
(4) Organizational alignment, to listen to each other” (r = .618),
for mergers, acquisitions, and “receiving objective and honest
transitions; and for vendor information from the manager” and
and owner relations. “management creating a good team
Surveys are customized from core effort” (r = .645), and “performance
April 2001 • 17

7. • Overall, the transition period with
Exhibit 3 this company is working well.
Sunset Station compared to industry norms Properly constructed surveys
assist in executive decision-making
Overall satisfaction 86% by imparting accurate, real-time
78%
Organizational communications 82% insight into operations. Company
75%
86%
executives are responsible for devel-
Training and career development
80% oping and maintaining organiza-
90%
Job satisfaction and morale
77% tional alignment. The support and
Organizational teamwork 82% enthusiasm of executives and senior
74%
89% managers are integral to any com-
Mid-management practices
79% pany initiative, be it the adoption of
Executive-committee leadership 88%
75% a motto or the identification of a
25% 50% 75% company’s core competencies. Sun-
set Station attempts to accomplish
Sunset Station Industry norm this through what is called relation-
ship management. This is discussed
feedback” and “management creat- way that allows employees to relate later in more detail. Using the
ing a good team effort” (r = .623). each statement to their own job Service–Culture Map, executives at
Because of the array of survey responsibilities. Examples of Sunset Station made real gains in
statements, we can gauge front-line employee-satisfaction-survey company alignment—ensuring that
employee perceptions of “empower- statements are as follows: the elements of the master plan
ment.” Empowerment is a function • Communication between depart- were understood and implemented
of (1) the sophistication of commu- ments is effective. within all levels and functions of the
nication mechanisms, where evolved • I am treated with respect by my property. Among those important
communication links effectively manager. gains were stronger correlations
carry vision, goals, and standards • Senior management places the right between executive-leadership and
across a company, and (2) the de- emphasis on both the quality of organizational-communication di-
gree of teamwork, where a learning service and profit. mensions. For the property overall,
environment encourages front-line Examples of guest-satisfaction- the correlation between those di-
employees to rely on each other and survey statements are: mensions witnessed marked im-
provide problem-solving direction • I felt welcomed upon arrival. provement, from moderately low to
to supervisors. We ran correlations • The overall cleanliness and upkeep moderately strong ( generally up to
between the “empowerment” survey of my room met my expectations. r = .600).
statements and the two dimensions • The room-service menu provided Similarly, marked improvement
organizational communication and me with the selection and variety occurred when the executive-
organizational teamwork. As before, I expected. leadership dimension was correlated
the strength in the correlations in- Examples of corporate-opinion- with the dimensions organizational
creased over the years so that the survey statements are: teamwork and training and career
most-recent results were generally • The company is achieving tangible development. Of importance here
moderately strong to strong (typi- results in improving the area of meet- is measuring how the executive-
cally ranging from .530 < r < .660). ing sales and growth requirements. leadership dimension affects how
The most consistent correlations • Transfers between regions are encour- front-line team members perceive
involved gauging team members aged and carried out in a fair manner. their work. In both instances the
“receiving objective and honest • Corporate senior managers work as great majority of correlations indi-
information from the manager,” a team. cated moderately strong coefficients.
“performance feedback,” and “ab- Examples of organizational- Consistently stronger and more
sence of favoritism.” Those results alignment-survey statements are: prevalent correlations emerge year-
indicate that careful survey design • I am proud to be associated with to-year in survey statements that
is at the heart of gaining insight this company. measure front-line employee per-
into a company’s success factors. • I believe this company is concerned ceptions of “senior management’s
Survey statements. Survey ques- about the quality of work life in this commitment to and understanding
tions and statements are stated in a property. of the employee work environ-
18 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

8. O P E R AT I O N S M A N A G E M E N T
ment.” Correlation coefficients went sions of executive leadership and
from a range generally between .400 mid-management practices). The
to .460 in December 1998 to .500 most recent survey results for Sunset
to .570 in December 2000. More Station indicate consistent correla-
important, correlations were highest tions in which the relationship is
among survey statements centering largely moderately strong to strong,
on the ”absence of favoritism” in many instances ranging from
(r = .509), “creating a good team .540 < r < .638.
effort” (r = .572), and “recognition Step 4—Reports. It is common
of special efforts” made by front-line for senior managers to want a single
employees (r = .572). number that tells them how the
Step 3—Survey administra- organization compares to industry
tion. The type of survey determines norms and to the local competition.
how it is administered. For example, By comparison, employees want to
surveys that are completed by em- know what specific tasks need to be
ployees (i.e., corporate opinion, accomplished. Employee motivation
employee satisfaction, and company lies in actual achievement and op-
alignment) generally can be handled portunities for improvement. The
internally, usually with the help of discrepancy between the needs of
the organization’s human-resources managers and those of department-
department. Because the population level employees is unfortunate. Re-
of company employees is known ports designed for executives and
and manageable, all team members senior managers typically deliver
can be expected to complete a sur- only broad company performance Sunset Station employees practice what they
preach.
vey within seven days. information. They avoid peeling off
Customer- and guest-satisfaction organizational layers and reaching
surveys, on the other hand, should core data, where process successes
be administered by independent and failures can be identified. Such
survey professionals and conducted reports do not provide employees
via mail, telephone, or electronically with the key data needed to en-
(e.g., over the internet). Because the courage change.
population of hotel guests and ca- To overcome the discrepancy
sino patrons is too large to survey in between what information manag-
its entirety, random sampling is un- ers find useful and what information
dertaken, with care given to market employees find useful, the Station
segmentation. Casinos survey reports the data by
The survey is an invaluable tool organizational level, that is, by ex-
to gauge front-line opinion and gain ecutives, managers, supervisors, and
operational insight into a company’s hourly employees. Those reports
day-to-day environment. A well- also featured data further segmented
designed survey can measure indi- by divisions and departments.
vidual perceptions on topics such as Typically, data from the first sur-
the “absence of favoritism” in a vey establish a baseline against
department, “recognition of special which subsequent surveys are mea-
efforts” by employees, “employee sured. The second survey establishes
willingness to ask for help from a comparative database that indicates
peers and supervisors” alike, “per- the direction in which surveyed
ceived fairness in the distribution topics are moving (that is, are issues
of work,” and “fair management improving or getting worse?). The
practices.” The perceptions on the third and succeeding surveys moni-
aforementioned topics can then be tor the direction and magnitude of
compared to, or correlated with, those trends within the company,
management style (i.e., the dimen- property, division, or department.
April 2001 • 19

9. call). Regardless of what demo-
Exhibit 4 graphic data are collected, there
Gap analysis by job position (measuring hiring “fairness”) needs to be a specific, stated reason
for doing it. That modest level of
When job openings occur, the best-qualified people are usually chosen. disclosure adds to the sense of trust
between employees and managers.
Executive
All survey reports should clearly
14% 86% outline the areas of employee satis-
directors (n = 14)
faction and dissatisfaction by depart-
Managers and ment and job level. Looking at sur-
directors (n = 49) 35% 61%
vey results in this manner indicates
Supervisors, what departmental strengths and
38% 40%
assistant managers weaknesses deserve further atten-
(n = 118) tion. For example, by focusing on
Front-line (hourly) 43% 34% department and job-level results,
team members executives at Sunset Station have
(n = 1,251) been able to measure employee
25% 50% 75% perspectives on the effect that ex-
Tend to agree Strongly agree
ecutive leadership has on employee
evaluations of job satisfaction and
morale and training and career de-
velopment. Indeed, over the years of
There appears to be a handful of (1) Perceived absence of favoritism survey administration, those correla-
key factors that influence organiza- within the department. tions have been gaining in strength,
tional dimensions and department (2) Continuous and frequent per- in many instances increasing from
performance. To identify these key formance feedback and recog- .340 < r < .440 to a current corre-
factors at Sunset Station, HVS/The nition of special efforts made lation of .540 < r < .600.
Ference Group first determined by employees. Survey-driven databases can help
which departments realized a statis- (3) Team members’ perceptions direct a culture where decisions are
tically significant gain or loss in of middle-management’s fair- made by those closest to the work.
team-member-satisfaction scores ness in dealing with all staff In such an environment, senior
from the second to third (most members. managers provide basic strategies
recent) survey years. We discovered (4) Manager objectivity and and resources for getting a job done
that 33 of 47 departments experi- honesty in providing feedback well. At the same time, employees
enced a real change in score, where to and information about on the front lines are granted
the confidence interval ranged employees. greater autonomy and responsibility
from > 95.0 percent to < 99.9 (5) Senior managers’ understand- for making decisions on their own.
percent. Next, Sunset Station’s de- ing of the front-line work The goal is to train talented em-
partments were grouped according environment. ployees in the organization’s mission
to whether they experienced an (6) Mid-managers’ competence. and objectives, empower those em-
increase or decrease in overall score. Concern over confidentiality and ployees to make appropriate deci-
Testing between the two groups anonymity restricts one’s ability to sions, and then hold them account-
identified those survey statements collect descriptive information on able for results.
with the most-significant mean survey participants. Generally, only Within a company, the survey-
differences. Those statements were an individual’s department and job report formats cut data at three
most responsible for a real increase level is identified. Depending on the levels, as shown below. As discussed
or decrease in overall department level of trust within the organiza- earlier, the strength of peeling off
score. tion, however, it may be possible to organizational layers to reach the
At Sunset Station, the drivers of collect additional demographic in- core, where processes can be as-
department performance were the formation such as gender, ethnicity, sessed in their simplest forms, pro-
same factors that had the largest shifts worked, length of service, and vides employees with ownership of
impact on department morale. employee type (i.e., full time, part their respective job positions and
They follow, in descending order: time, flex time, temporary, and on the information they need to im-
20 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

10. O P E R AT I O N S M A N A G E M E N T
prove individual—and therefore
organizational—performance. Exhibit 5
Level 1: General-manager Year-to-year comparison (measuring team-member satisfaction)
spreadsheets,
I am recognized for the contribution that I am able to make to the success of this property.
Level 2: Executive-summary
overviews, and
Level 3: Strategic department profiles. December 1999
40% 40%
(n = 1,475)
Each department receives its own
multi-segmented report with com- December 1998
40% 34%
(n = 1,400)
pany benchmarks, industry norms,
and cross correlations. December 1997
39% 34%
Areas of technical competencies (n = 1,178)
are measured with statements such
Cumulative
as: average
40% 36%
• This hotel–casino is doing a good
job of training managers.
• My manager knows his or her job. 25% 50% 75%
• Senior management places the right
Tend to agree Strongly agree
emphasis on both the quality of ser-
vice and profit.
Areas of human-resources prac-
tices include the organizational di- As for team members themselves, dence and trust that managers had
mensions mentioned earlier. For in general they welcome an inclu- in them. We found that teams which
example, organization teamwork sive performance- and feedback- experienced high levels of trust
measures employee perceptions measurement process. People like from managers operated in an envi-
regarding favoritism, assignments, being recognized for their efforts ronment where interpersonal com-
support, and problem solving. State- and work done well. Moreover, a munication was valued and re-
ments from the measurement of performance-measurement process spected. Correlations between the
organizational teamwork include: provides team members with infor- level of trust and statements measur-
• Favoritism is not a problem in my mation about and closure on pro- ing fairness and open communica-
department. grams, projects, and daily perfor- tion increased in strength signifi-
• I feel the distribution of work is mance. A continuous-improvement cantly during the period between
fair among team members in my approach to human-resources man- the first and most-recent survey. For
department. agement that encourages teams to instance, when employee percep-
• There is a high degree of cooperation be critical, energized, and aware of tions of “trust and confidence from
among departments in this property. the give-and-take involved in com- managers” was compared to the
• Employees in this property support municating should result in effective, “absence of favoritism,” the correla-
each other in solving job-related systematic, and efficient problem tions increased from r = .373 to r =
problems. solving by those teams. .460. When employee perceptions
Step 5—Data analysis. Survey of “trust and confidence from man-
Phase III: Team Dynamics data are often presented in both agers” was compared to “receiving
A survey-driven database can pro- tabular and graphic formats. Because objective and honest information
vide the foundation for employee- the data are compared to previous from managers,” the correlation
team goal setting, feedback formats, performance, internal benchmarks, increased from r = .468 to r = .540.
and relationship management. Mea- and industry norms, the formatting Organizational success depends
surement of those factors over time of results must lend itself to gap and to a large extent on teamwork and
provides managers with data regard- spread analysis, root-cause problem cooperative thinking. Employees in
ing strengths and limitations within solving, and overall-satisfaction- successful companies are expected
departments, divisions, units, and the acceptability ratings. to embrace a philosophy of creative
organization at large. Note that this A component of the survey used problem solving. The survey-data
is a short step away from identifying for Sunset Station measured em- analysis and follow-up that is rec-
and monitoring core competencies. ployee perceptions of the confi- ommended encourages everyone to
April 2001 • 21

11. department performance. The inter-
Exhibit 6 relationship between the perceived
Team members’ attitudes about job ➔ I-CPN* = “absence of favoritism” within one
78.1% department and “middle manage-
2000 annual survey 32% 56%
ment fairness in dealing with all
(n = 1,507) staff ” strongly correlated (r = .638).
1999 mid-year survey
That correlation is of particular
33% 53%
(n = 1,463) importance considering that those
survey statements were most signifi-
1998 annual survey 33% cant in explaining mean differences
51%
(n = 1,437)
among departments with positive
25% 50% 75% and negative real changes in perfor-
mance scores. (Refer to drivers of
Tend to agree Strongly agree peak department performance dis-
cussed earlier.) Relationship goals
*Industry-Comparative Performance Norm (as determined by HVS/The Ference Group)
are more complex than system
goals and should be targeted for
work together productively instead customer). For example, breakfast moderate-term achievement.
of at cross-purposes. The result is an cycle times for room service be- Best practices make use of histori-
environment whereby problem tween order takers, kitchen, and cal performance data that may be
solving and quality-improvement service staff—while scheduling for referenced to establish effective
initiatives take place as close as pos- elevator availability—is a process. product and service objectives. Sur-
sible to the level where problems Process goals can be completed vey results provide a powerful tool
occur. within an immediate or moderate for delivering a snapshot of com-
Step 6—Goal setting. Setting time frame. pany performance. The data can be
attainable employee goals is crucial Middle managers, because of used, first, to pinpoint weak areas
to creating a peak-performing orga- their direct daily involvement in and, second, to develop a plan for
nizational culture. Using the survey systems and processes, are key to improvement. For example, middle
database of employee- and guest- instituting clear performance direc- management’s singular effect on
satisfaction feedback, managers can tives and to maintaining existing front-line-employee performance,
encourage employees to clarify per- principles, values, and standards set as discussed above, means their
formance issues, work smarter, and forth in the master plan. Because teambuilding skills are critical to
engage in strategic thinking. To crucial customer contact occurs at department performance. At Sunset
facilitate their implementation, goals the front-line level, an environment Station, the correlation between
should be associated with a time in which front-line team members “middle management fairness in
frame: immediate, moderate, and are trusted and empowered to re- dealing with all staff,” and “team
long-range. Listed below are differ- spond quickly, effectively, and with member mutual support and en-
ent types of goals. high customer-perceived quality is couragement” increased from r =
Systems are highly related intra- essential. Creating that environment .358 to r = .503 from December
or inter-departmental job duties while at the same time maintaining 1997 to December 1999. The cor-
that, together, make up the simplest the goals set forth in the master plan relation between “middle manage-
form of a complete job function. is the subject of the remaining goal ment fairness in dealing with all
Challenges in such related systems types. staff ” and “employee mutual support
may be addressed, such as the inter- Relationship goals improve team- to solve job-related problems” in-
departmental handling of linens member interactions and enhance creased from r = .339 to r = .520,
between laundry and housekeeping. team intra- and inter-departmental again from December 1997 to De-
System goals are targeted for imme- communications. By working cember 1999. Thus, Sunset Station
diate attainment. through the Service–Culture Map, was able to realize a gain in the
Processes are interconnected sys- and using benefits derived from effect that middle managers had on
tems that cross departments and survey-driven databases, Sunset Sta- team building at the front-line level.
levels and that together complete a tion identified management prac- By definition, best practices goals
service or a significant portion of a tices that aided and hindered effec- are at least moderate-range, and in
service (i.e., product delivery to the tive working relationships and many cases long-range goals.
22 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

12. O P E R AT I O N S M A N A G E M E N T
Stretch targets are developed to
generate strategic, big-picture
changes in company performance
and can involve system and process
redesign. The most complex type
of goal, they build on knowledge
gained from the preceding four goal
types. A chief objective of using the
Service–Culture Map is enhancing
the organizational dimensions “job
satisfaction and morale” and “orga-
nizational teamwork.” For Sunset
Station, some of the most prevalent
correlations existed between the
dimension “mid-management prac-
tices” with “job satisfaction and
morale” and “organizational team-
work.” This confirms the increasing
role middle management plays in
attaining those key company goals.
In December 1997 the correlations
were generally low to moderate
in strength, most ranging from no more than 10 to 12 minutes in Station Casino’s Palace Station.
.310 < r < .450. By December length, these meetings are held at
1999, the results were markedly the beginning of a work shift and
different. Correlations generally are used to review operational issues
ranged from .510 < r < .640. that can be anticipated during the
Middle management’s increasing day. They can also cover a “topic of
effect on morale and teambuilding the day” in three minutes or less,
was clearly evident. Stretch-target focusing on results and issues un-
goals are long-range in nature. covered in the employee-satisfaction
Step 7—Feedback formats. survey.
Employees must believe that their Cross-functional meetings are de-
contributions are important to the signed especially for various depart-
success of their departments. As ments and levels to come together
such, adopting meeting formats that to work on issues of common inter-
are supportive and respectful of est. For example, wanting to im-
multiple viewpoints can help to prove awareness and acceptance of
create that understanding. Feedback company strategic goals, senior ex-
lets all employees know how their ecutives at Sunset Station set out to
department’s performance aligns increase organizational communica-
with the strategic goals defined by tion throughout the company. The
senior executives. By paying close result was that “management’s en-
attention to the goal–feedback loop, couragement of property-wide
senior executives can link the “top communication” correlated strongly
floor to the service floor.” All the with employee perceptions that
meeting types described below can “senior executives placed the cor-
use survey data as a starting point rect emphasis on quality of service
for discussion. versus profit” (r = .584).
Pre-shift meetings can be used ef- Departmental communications meet-
fectively to enhance daily commu- ings are usually held once a week or
nication between managers and twice a month and are a chance for
hourly employees. Designed to be department heads and the executive
April 2001 • 23

13. committee to compare notes and members to listen to each other”
prioritize goals. Such meetings gen- and the level of “mutual support
erally are informational and focus team members give one another
on administrative and management to solve job-related problems” in-
items. At Sunset Station, the results creased from a moderate score of
attained from departmental commu- r = .490 in December 1999 to a
nications meetings strengthened the high score of r = .621 in 2001.
correlation between “executive level Executive-level meetings are at-
understanding of departmental tended by the executive committee
problems” and the perceived “effec- and are chaired by the general man-
tiveness of inter-departmental com- ager. These meetings are designed
munications.” In December 1997 to focus on immediate operational
this correlation measured at r = concerns, as well as on the big-
.355, whereas by December 1999 picture areas of vision, mission, core
it measured r = .511. values, and strategic long-range
Visible-management meetings are issues. Included in these discussions
one-on-one encounters between should be references to company
executives and employees that typi- survey results.
cally occur when executives walk Workshops and retreats are a useful
through their company. When form of meeting and are usually
greeting employees, executives ask held off-site. Although workshops
about a specific survey result that and retreats can take various forms
they know was agreed to as a new and have a variety of agendas, survey
“Team members now look upon the survey departmental goal. Such walking results often provide a good point
as part of the on-going management process tours offer an opportunity for man- of departure to get participants dis-
here. They actually look forward to not only
taking the survey but to anticipating their next
agement to recognize team-member cussing relevant issues and action
results.” contributions to company success. planning.
—Cookie Dreschler, vice president and This was particularly important for Sunset Station has used many of
general manager of Sunset Station Sunset Station managers considering those meeting formats to its advan-
the correlation between “recogni- tage, as illustrated in the examples
tion of special efforts” and “em- above. Through those tools, senior
ployee satisfaction with the review managers have carefully monitored
process overall” (r = .659). In other organizational alignment and goal
words, Sunset found that recogniz- implementation. The feedback com-
ing employee contributions and ponent of the Service–Culture Map
efforts significantly increases the has provided Sunset Station with
likelihood employees will “buy the means to monitor organizational
into” the performance review and alignment, stay grounded with re-
feedback process. spect to customer needs, and facili-
Focus groups are a forum for expe- tate employee peak performance.
rienced members of two or more Paying close attention to achieving
departments to meet and determine peak performance, Sunset Station
how best to solve customer-service, solidified the links between open-
employee, or departmental issues door management, and team leader–
uncovered through survey findings. team member relations.
Data from the surveys can be used Step 8—Relationship man-
to resolve conflicting issues. At Sun- agement. Over the years, research
set Station, the emphasis on focus by HVS/The Ference Group indi-
groups to resolve various work is- cates that most people in service
sues brought noteworthy results. organizations want to do a good job.
The correlation between “manage- The challenge is to create a culture
ment encouragement for team that empowers employees to do that
24 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

14. O P E R AT I O N S M A N A G E M E N T
good job. Since empowerment does achieve peak performance and the indicated a moderately low relation-
not mean free rein, survey results perceived level of “cooperation ship between the dimensions of
can establish where team members among departments” (r = .577). organizational communication and
need to focus their time and energy. Those findings support the recipro- executive leadership. However, cur-
Build team dynamics. For employ- cal nature of communication and rent survey results paint a different
ees to become team members and teamwork—elements providing a picture. The dimensions of organi-
complement each other, they need base for exercising creativity. Indeed, zational communication and execu-
to understand their individual in assisting one another, team mem- tive leadership correlate moderately
strengths and shortcomings. Facili- bers are not only better equipped to strongly to strongly in some in-
tating such insights usually involves solve problems but can, through a stances. Keep in mind this organ-
aspects of team dynamics. While concerted effort, draw attention to izational transformation occurred
opinions, attitudes, feelings, prefer- issues at hand. in only two and one-half years,
ences, and perceptions may be Develop a learning, coaching environ- from June 1997 to December 1999.
viewed as subjective, they are never- ment. The application and develop- Key indicators such as “inter-
theless “real” to the person who ment of relationship management is departmental communications”
holds or experiences them. Teams, further fostered by establishing a compared to “cooperation among
therefore, need ways to view their coaching-and-learning environ- departments” (r = .642), and the
internal functioning. This has a ment. Team, department, and perceived “follow-through on
broad, pervasive impact on effective- organization-wide meetings help executive-level commitments” com-
ness. For teams to progress, the dy- achieve this providing there are pared to ”team effort” (r = .593),
namics of teamwork need to be opportunities for true two-way are indicative of Sunset’s success at
studied as objectively as possible to communications. Discussions de- monitoring, targeting, and develop-
develop improvement plans. Prop- velop commitment to and align- ing peak-performance initiatives.
erly constructed survey feedback ment with shared goals by engaging Leverage motivation. An important
provides a framework for those employees in ways that matter to by-product of enhanced organiza-
plans. them and in which they can make tional teamwork is an increase in
Foster creativity. Relationship valuable contributions. The benefits employees’ job understanding. By
management permits tapping into Sunset Station realized were dem- job understanding I do not mean
the creative pool of team members onstrated in detail above under simply a team member’s ability or
to develop core strategic values. Step 7 (feedback formats), and in- proficiency in completing a task or
Managers can group survey state- cluded enhanced organizational related tasks. Instead, I refer to the
ments to measure the support net- communication, buy-in for the per- more-critical aspect of organiza-
work necessary to facilitate a proac- formance review process, and the tional alignment, namely, appreciat-
tive environment. Component increased support employees give ing the interconnected nature of
themes include the level of support one another. activities and how this relates to an
from colleagues, special recognition, Measure performance. Experience understanding of the big picture
communication, trust, and coopera- with service businesses employing regarding how each individual con-
tion. At Sunset Station, again, the relationship-management theory tributes to the total success of the
strength of the correlations in- indicates that the extent to which company.
creased over the years the survey interpersonal relationships and their Information gathering and
was administered. Current results mechanisms are developed directly analysis is time lost without under-
indicate moderately strong relation- affects performance. We have found standing the cause-and-effect rela-
ships among those themes. Among that organizational teamwork is tionships of day-to-day job per-
the more insightful correlations is reinforced or debilitated by the level formance. The focus here is for
the level of “trust and confidence of organizational communication managers to develop an awareness
from managers” that team members and executive leadership present. of what is involved in performing
perceive and “management respon- Sunset Station seized on that con- front-line activities that meet cus-
siveness to employee suggestions, cept and strove to enhance company tomer expectations. Employees,
problems, and complaints” (r = results by turning leaders into listen- conversely, learn to view work-
.571). Equally strong is the correla- ers. The data indicated that Sunset related issues in a context broader
tion between “team member mutual Station managers had their work cut than just their own work responsi-
support and encouragement” to out for them. Early survey results bilities. The flexibility of the survey
April 2001 • 25

15. team members receive for their
work (r = .582). Moderately strong
correlations also exist between
“management’s knowledge of prob-
lems facing a department” and
“management responsiveness to
employee suggestions, problems,
and complaints” (r = .562).
Have fun. Relationship manage-
ment has always been about how
people get work done through
people. Today, it is also about getting
work done and having fun at the
same time. It is about creating time
to engage in different activities out-
side of normal daily routines. A part
of having fun is about creating a
more interesting, energetic work
environment. Whether directly or
indirectly, all employees at Sunset
are encouraged to have fun in the
work environment.
While we know that guests tire
quickly from attitudes of indiffer-
ence and that most of them likely
will not return for another ho-hum
experience, employees also tire from
At Sunset Station, having fun is a core value. doing the same monotonous rou-
provides a gauge for the degree of tines all day long. In seeking fun,
job understanding. Survey state- they search for diversification. Ev-
ments such as “recognizing team- eryone recognizes the importance of
member contributions,” the percep- providing upbeat, energetic, playful,
tion of “senior management’s and engaging experiences within
commitment to and understanding the work environment. The days of
of the employee work environ- stuffy, highly structured work envi-
ment,” and the perception of “train- ronments are past. Employees today
ing adequacy,” for example, can be seek engaging experiences among
used to gauge job understanding. themselves as well as with guests.
Sunset Station has made headway For employees, smiles should be
in encouraging team members to more common than frowns, eye
view their jobs as part of the entire contact more common than averted
Station Casino corporate operation. glances, and conversations person-
First- and second-year survey results able and engaging. Such behaviors
indicated low and moderate correla- become part of ongoing guest–
tions for those themes. More-recent employee performance and can be
results, however, recorded manage- genuinely delivered only when em-
ment’s increased responsiveness to ployees are having fun.
front-line requirements. Now, mod- At Sunset Station, having fun is
erately strong correlations exist be- a core value. All senior-managers’
tween “management’s knowledge of goals are written on a large chart
problems facing a department” and and posted in the conference room.
the “recognition of special efforts” Because members of the senior-
26 CORNELL HOTEL AND RESTAURANT ADMINISTRATION QUARTERLY

16. O P E R AT I O N S M A N A G E M E N T
management team know their col- perception. Measuring this percep- tion, they must first be satisfied with
leagues’ goals, they are able to sup- tion through surveys provides a and trust the manner in which feed-
port each other. It is common to clear understanding of employee back is generated and provided.
hear team members ask each other, and guest–customer satisfaction and Step 10—Managing for
How can I help you make your goals? dissatisfaction. Another key is un- continuous improvement. Em-
Team members engage in catching derstanding the effect that indi- ployees who embrace the philoso-
each other doing things right. Goal vidual perceptions have on em- phy of continuous improvement
results are posted, and if done well, ployee teams, guests, and customers. tend to be goal oriented, respectful
a whole department might go to a The Ference Group’s findings con- of their colleagues, and understand-
movie with pizzas and drinks. When firm that high employee satisfaction ing of their organization’s markets
executives are confronted with a leads to high customer satisfaction, and customers. Moreover, they un-
sticky decision, company president employee retention, guest loyalty, derstand their own strengths and
Marrandino is just as likely to take and market share. shortcomings.
them to a basketball court to discuss The approach facilitated by the Success in continuous perfor-
the situation as to sit around a con- steps in the Service–Culture Map mance improvement is due, in part,
ference table. When employees need enables organizations to develop to gathering strategic data and shar-
to stay late to cater a special event, a their own surveys to best suit their ing this data at all organizational
table of food and drink is available specific needs. The requirements are levels. When survey results are pro-
once employees have finished their that the format be continuous, ob- vided throughout the organization,
shift. jective, goal oriented, and inclusive. employees know what specific ini-
Measuring performance. Sun- tiatives to embrace to improve over-
Phase IV: Organizational Culture set Station’s year-to-year survey data all performance and customer ser-
Culture directly affects long-term demonstrate moderately strong vice. Such strategic data improve
sustainability. In turn, the long-term relationships most consistently organizational performance.
sustainability of a company is a where the drivers of departmental
measure of peak performance. High performance are concerned—fair- Recursive Cycle
return on owner investment is the ness in job training, objectivity, Organizational peak performance is
ultimate goal and can be reached honesty in communications, and a difficult goal to obtain. Unfortu-
through employee and customer frequency of performance reviews. nately, most who undertake this
satisfaction, market share and brand Moreover, analysis of Sunset quest give up far short of their desti-
loyalty, and product and profit Station’s data reveals what team nation. They are seduced by short-
dominance. It is no wonder that the members consider most important cuts that promise much but deliver
most successful organizations ex- in the performance-review process, little. They are intimidated by
hibit a distinctive “essence” that can as follows. countless departmental potholes,
be described by company insiders • Frequent performance reviews overwhelmed by steep management
and outsiders alike. These findings are perceived to be more S-curves, and caught in thorny em-
indicate that when people can pub- straightforward and honest than ployee briar patches. Without an
licly espouse a belief, they become sporadic performance reviews experienced guide, the traveler
much more likely to behave consis- (r = .589). should be prepared for more than
tent with that belief. Moreover, • Regular feedback increases the a few wrong turns and some long,
visionary companies do not merely likelihood that team members frustrating nights. There is, however,
declare an ideology, but they also will judge that feedback as hope. Perhaps the greatest benefit
take steps to make that ideology beneficial (r = .587). of the four-phase, ten-step Service–
pervasive throughout the organiza- • Recognizing team members for Culture Map is its function as a
tion and to ensure that it transcends their extraordinary contributions guide. For the company with in-
any individual leader. or efforts increases employees’ trepid leadership, the intelligent
Step 9—Peak performance. overall satisfaction with the application of survey-driven data-
When employees exhibit high en- performance-review process bases may be the first step in achiev-
ergy levels, sincere commitment, (r =.652). ing organizational peak perfor-
and true passion, peak performance In short, for team members to mance… a rich and rewarding
is achievable. One key is under- reach their peak performance, and journey for management, employees,
standing the power of individual thus positively affect guest satisfac- and stockholders alike. CQ
April 2001 • 27