09jun willtate
TRANSCRIPT
Value Value Assessments: Assessments:
Measuring what Measuring what MattersMattersPresented by: Will TatePresented by: Will Tate
Management Alternatives, Inc.Management Alternatives, Inc.
[email protected]@manage-alt.com
972-599-2833972-599-2833
•In the beginning was the Plan.
•And then came the Assumptions.
•And the Assumptions were without form.
•And the Plan was without Substance.
•And darkness was upon the face of the Workers.
•And Workers spoke among themselves saying, "It is a crock of dung and it stinks.“
•And Workers went unto their Supervisors and said, "It is a crock of
dung and we cannot live with the smell.“
•And Supervisors went unto their Managers saying, "It is a container
of organic waste, and it is very strong, such that none may abide by it.“
•And Managers went unto their Directors, saying, "It is a vessel of
fertilizer, and none may abide its strength.“
•And Directors spoke among themselves, saying to one another; "It
contains that which aids plant growth, and it is very strong.“
•And Directors went to Vice Presidents, saying unto them, "It
promotes growth, and it is very powerful.“
•And Vice Presidents went to the President, saying unto him "It has
very powerful effects.“
•And the President looked upon the Plan and saw that it was good.
•And the Plan became Policy.
AgendaAgenda
►DefinitionsDefinitions►Historic CriteriaHistoric Criteria►Historic ComponentsHistoric Components► Inventive ComponentsInventive Components►Keep Communicating!Keep Communicating!
QuizQuiz
What are:What are: KPIs?KPIs? SLAs?SLAs? SLIs?SLIs? CSF?CSF? TLAs?TLAs?
What Matters?What Matters?
►What do you spend your time on?What do you spend your time on?►What gives your company the greatest What gives your company the greatest
return on your time?return on your time?►Do these match?Do these match?
You measure what you value.
You get what you measure!
Val
ue A
chie
ved
Level of Activity Required
Single Initiatives
Resource Bandits
Sustainable Value
Short Term Gain
VALUE TO ACTIVITY LEVEL
The FrameThe Frame
► In Scope?In Scope? Measure Realized SavingsMeasure Realized Savings Measure Lost SavingsMeasure Lost Savings Consider OpportunitiesConsider Opportunities
►More to preferred suppliersMore to preferred suppliers►More advance purchaseMore advance purchase
►Out of Scope?Out of Scope? Opportunity AnalysisOpportunity Analysis
►Change in preferredsChange in preferreds►Change in policy (tiers)Change in policy (tiers)
Historically…Historically…
► TMC FeesTMC Fees Telephonic FeesTelephonic Fees Online Booking / Fulfillment FeesOnline Booking / Fulfillment Fees
► Online BookingOnline Booking► TMC Service LevelsTMC Service Levels► Airline Ticket PricesAirline Ticket Prices► Hotel RatesHotel Rates► Rental Car RatesRental Car Rates
What is the right priority order What is the right priority order for these?for these?
Addiitional Airline Fees
Multiply by Number
Multiply by Number
of Trips to get
of Trips to get
SavingsSavings
Air SavingsAir Savings
$-
$20
$40
$60
$80
$100
$120
BOY EOY
Industry AverageHotel Night Cost
Company AverageHotel Night Cost
Multiply by Multiply by
Number of Nights
Number of Nights
to get Savingsto get Savings
Hotel SavingsHotel Savings
Non-Historically…Non-Historically…
► Customer Satisfaction RatesCustomer Satisfaction Rates► Small Business ProgramsSmall Business Programs► TMC Process StandardizationTMC Process Standardization► Internal BenchmarkingInternal Benchmarking► Market Rates rather than Preferred AgreementsMarket Rates rather than Preferred Agreements► Airline baggage/seating preferenceAirline baggage/seating preference► Direct Carrier Access (SWABIZ)Direct Carrier Access (SWABIZ)► Expense ManagementExpense Management► Cost by ChannelCost by Channel► Program Management FeesProgram Management Fees
per headcountper headcount per air $ managedper air $ managed Per revenuePer revenue
TMC Process StandardizationTMC Process Standardization
Internal BenchmarkingInternal Benchmarking
MessageMessage ClarityClarity► The paomnnehil pweor of the hmuan mnid.The paomnnehil pweor of the hmuan mnid.
► Aoccdrnig to a rscheearch at Cmabrigde Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoetnt the ltteers in a wrod are, the olny iprmoetnt tihng is taht the frist and lsat ltteer be at the tihng is taht the frist and lsat ltteer be at the rghit pclae. The rset can be a total mses rghit pclae. The rset can be a total mses and you can sitll raed it wouthit porbelm. and you can sitll raed it wouthit porbelm. Tihs is bcuseae the huamn mnid deos not Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a raed ervey lteter by istlef, but the wrod as a wlohe.wlohe.
TMC FeesTMC Fees
►Telephonic – Cost Per TransactionTelephonic – Cost Per Transaction►Online Booking Fees – Cost per Online Booking Fees – Cost per
TransactionTransaction Include Maintenance, Amortized Include Maintenance, Amortized
Implementation, etc…Implementation, etc…
►Fulfillment – Cost per TransactionFulfillment – Cost per Transaction►Online versus Offline – Compare Fully Online versus Offline – Compare Fully
Loaded FeesLoaded Fees
Online BookingOnline Booking
►BookingBooking Agency Fee SavingsAgency Fee Savings Airfare SavingsAirfare Savings Hotel SavingsHotel Savings Increased Compliance with Preferred Increased Compliance with Preferred
Air/HotelAir/Hotel
►FulfillmentFulfillment Touchless, TouchedTouchless, Touched Why Touched?Why Touched?
TMC Service LevelsTMC Service Levels► What Matters?What Matters?► Considerations…Considerations…
Traveler/Arranger Satisfaction – Independent Traveler/Arranger Satisfaction – Independent SurveySurvey
Telephonic Agency Fees – Sliding ScaleTelephonic Agency Fees – Sliding Scale Airline Costs – CPM ReductionsAirline Costs – CPM Reductions Travel Policy – Compliance to Air/HotelTravel Policy – Compliance to Air/Hotel Data Timeliness – Dates DueData Timeliness – Dates Due Data Accuracy – Key Criteria from Established Data Accuracy – Key Criteria from Established
BaselineBaseline Account Management – Evaluative FormAccount Management – Evaluative Form New Ideas?New Ideas?
Airline Ticket PricesAirline Ticket Prices► What metrics do you use?What metrics do you use?► Average Ticket Price?Average Ticket Price?
ProsPros ConsCons
► Average Segment Price?Average Segment Price? ProsPros ConsCons
► Cost per Mile?Cost per Mile? ProsPros ConsCons
► Total Spend?Total Spend? ProsPros ConsCons
► Baggage/Preferred Seating Spend?Baggage/Preferred Seating Spend? ProsPros ConsCons
Airline Ticket PricesAirline Ticket Prices
►What can affect these metrics?What can affect these metrics? Supplier Choice – Are Discounts worth it?Supplier Choice – Are Discounts worth it? Greater Discount (Bid, Renegotiation)Greater Discount (Bid, Renegotiation) Greater Usage of Available DiscountsGreater Usage of Available Discounts Advance PurchasingAdvance Purchasing
Hotel RatesHotel Rates
► What metrics do you use?What metrics do you use?► Average Room Rate?Average Room Rate?
ProsPros ConsCons
► Percent Booked via TMC?Percent Booked via TMC? ProsPros ConsCons
► Percent in Preferred Properties?Percent in Preferred Properties? ProsPros ConsCons
► Total Spend?Total Spend? ProsPros ConsCons
Hotel RatesHotel Rates
►What can affect these metrics?What can affect these metrics? Supplier ChoiceSupplier Choice Greater Discount (Bid, Renegotiation)Greater Discount (Bid, Renegotiation) Greater Usage of Available DiscountsGreater Usage of Available Discounts
Rental Car RatesRental Car Rates
►What can affect these metrics?What can affect these metrics? Greater Discount (Bid, Renegotiation)Greater Discount (Bid, Renegotiation) Greater Usage of Available DiscountsGreater Usage of Available Discounts
Rental Car RatesRental Car Rates
► What metrics do you use?What metrics do you use?► Average Daily Rate?Average Daily Rate?
ProsPros ConsCons
► Percent on Preferred Companies?Percent on Preferred Companies? ProsPros ConsCons
► Total Spend?Total Spend? ProsPros ConsCons
When is Enough Enough?When is Enough Enough?
► Do you ever stop? Should you?Do you ever stop? Should you?► Pareto’s PrinciplePareto’s Principle
Imagine…Imagine…
Air Compliance
74%
75%
76%
77%
78%
79%
80%
81%
82%
Q1 Q2 Q3 Q4
Company Achieved Company Goal
Online Booking %
40%
50%
60%
70%
80%
Q1 Q2 Q3 Q4
Company Achieved Company Goal
Hotel Bookings via TMC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Q1 Q2 Q3 Q4
Company Achieved Company Goal
Cost Per Mile
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
Q1 Q2 Q3 Q4
Company Achieved Company Goal
It’s all About Communication
To my darling husband,
Before you return from your business trip, I just want to let you know about the small accident I had with our pick up truck when I turned into the driveway.
Fortunately, its not too bad and I really didn't get hurt, so please don't worry too much about me.
I was coming home from Wal-Mart when I turned into the driveway. I accidentally pushed down on the accelerator instead of the brake. The garage door is slightly bent but the pick up fortunately came to a halt when it bumped into your beloved Corvette.
I am really sorry, but, I know with your kind-hearted personality, you will forgive me. You know how much I love you and care for you my sweetheart.
I am enclosing a picture for you. I cannot wait to hold you in my arms again.
Your loving wife.
XXX
P.S. Your girlfriend called.
Clear Communication?Clear Communication?
Will TateWill TateManagement Alternatives, Inc.Management Alternatives, [email protected]
972-599-2833972-599-2833