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The Majestic Star is a Lake Michigan based
casino in Northwest Indiana, drawing from the
Chicago suburbs. The property shares a pavilion
with the Trump Casino and competes with several other
local, lake-based casinos. With approximately 925
employees, The Majestic Star operates within the range
of 700 and 750 FTE?s. They have approximately 1650 slot
machines and 47 table games.
In 2003, the casino decided to look for a different approach to
staff planning based on the competitive environment, the need
to better match staffing to guest activity, and the concern that there
might also be times when staffing wasn’t consistent with the
needs of the guest.
Historically, managers had developed schedules based on their
experience, a broad perception of the coming week (which lacked specific volume projections)
and any employee requests they received. Managers generally knew their minimum and maximum staffing levels, but there was no objective process for tying staffing to forecasted volumes.
The property had a “Weekly Labor Effectiveness Report” which was produced a week and a half after the end of the workweek. The report compared weekly departmental revenue; turnstile counts and labor performance against both the previous week and the same week from last
year. Though helpful, the property wanted more current information than the report provided.
In deciding to look for technology that would assist the property in managing the labor process, The Majestic Star established the following selection criteria for the
software and the company.
- Software had to be in use in other casino properties.
- Software had to incorporate forecasting, scheduling and labor reporting.
- Company had to have experience in staff planning in casinos and in hospitality.
- Software had to be user friendly.
- The installation team had to be experienced and have sound interpersonal skills.
Upon deciding on UniFocus and their Watson, R.M.
software, a project plan was put together after historical
performance had been analyzed and the organization had
had an opportunity to better determine what opportunities
existed to improve service and reduce costs.
The implementation plan was designed to be flexible
and allow for close analysis of some departments while
taking advantage of current efficiencies in other areas.
The property wanted to pay particular
attention to Public Areas and Slots,
both of which were seen as presenting
opportunities to improve performance
and reduce cost.
In order to ensure that property management
was prepared to support the
changes necessary to implement the
software and develop labor standards,
senior management began meeting
with property management. Frankly, it
was an easy sell as the tone at the top
of the organization was to approach
the project with an open mind and
give the UniFocus team full support.
Leadership took the approach that
Watson R.M. was, and still is, a tool to
help managers better manage. It’s a tool to help managers
spend less time on schedules, and be more focused on managing
the business and driving revenues.
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With the help of UniFocus, the presentation showing the
property’s history and anticipated future successes helped
managers buy into the program and processes. In addition, as
the implementation proceeded, managers began to experience the benefits.
As is usually the case when change initiatives begin, a small group is
open to change, the majority is waiting to see what happens and a
few prepare to fight change to the bitter end. To keep everyone focused
on the positive outcomes, senior management laid out the objectives of the project, the anticipated benefits and time frames and constantly reinforced this message in management meetings and in one on one conversations.
Some departments were able to devise standards with minimal
assistance while others requiredmore in-depth analysis. A consultant
worked with the managers in defining standards that were appropriate
for differing levels of guest activity so that labor use would flex as volume
flexed. For some managers, this was a new approach as they were
used to scheduling with a fixed schedule. Some managers
embraced the new approach while others required more persuasion and
needed help to move from the concept of flexible staffing to the reality of it.
Over a period of a couple of months, all departments worked through
developing refined standards and a number of opportunities to improve
efficiency and processes. All the standards were reviewed and approved
by senior management. Throughout the process, the management team
challenged the staff to be more productive and more self-critical.
The original set up was completed in April of 2004. Since then,
the property has generated the following improvements: While revenues are up by 10% or $14
million over 2003, labor costs were flat over the prior year and $800,000
better than the initial budget. Payroll, as a percentage of gross gaming
revenue (“GGR”), a key measure in the gaming industry, declined from
17.3% of GGR in 2003 to 16.0% of GGR in 2004. Moreover, these results
do not even cover a full year, as the system was not fully implemented in
all departments until June of 2004.
In looking back, it is clear that success depends on the management team
working through the challenges and inevitable set-backs. The consulting
team needs to be open to feedback and willing to change methods to
adapt to the needs of the organization and operating circumstances.
But the rewards are clear. Implementing the Watson, R.M. software and revising and establishing
labor standards has resulted in improved profitability while providing a stable system for managing all aspects of the labor cycle forecasting evaluation, from forecasting through
reporting and evaluation.
Troy Keeping is the Vice President and General Manager of Majestic Star Casino in Gary, Indiana.
Reprinted from FocusEd, Spring 2005 edition.
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