Case Study
Optimized Labor Management: CSM Delivers Unparalleled Labor Efficiencies Using Hotel Effectiveness
Summary
CSM’s lodging division is among the top 50 hotel management companies in the United States and has won numerous awards, including Marriott Hotel of the Year (three times) and Marriott Developer of the Year (two years in a row).
The lodging division was formed in 1992 when Carlson acquired and renovated a former Howard Johnson hotel into a Country Inn. Having built or owned more than 40 hotels and more than 4,700 rooms, today, CSM Corporation operates hotels for well-respected brands like Carlson, Hilton, Hyatt, Marriott, and more.
Properties Built in U.S.
Hotel Brands in the Portfolio
Total Rooms Built or Operating
The Challenge:
Peter Kilbourne, SVP of Lodging, returned to CSM to improve overall operational processes for the lodging portfolio after rolling out Hotel Effectiveness to 1,500 locations at Aimbridge. For CSM, there were some key areas of focus for operational improvements:
Manual process:
Financial reporting and labor management relied on manual data entry, without an integrated planning process.
Outdated Reporting:
CSM used an operational structure for labor and spending that wasn’t forward looking. Before Hotel Effectiveness, labor planning was based on historical run rates, not on operational efficiencies.
Inconsistent Labor Standards:
General Managers wanted to shift away from straight-line planning for labor staffing needs to a more flexible model based on occupancy.
The Solution
How Hotel Effectiveness Helped Improve Labor Standards
In response to these challenges, CSM Corporation implemented Hotel Effectiveness, the labor operations solution by Actabl:
Hotel Effectiveness (HE) provides real-time labor management insights, which enables CSM to create a continuous improvement process for labor standards moving forward.
- Hotel Effectiveness revolutionized labor management at CSM, addressing excess overtime hours.
- By looking holistically, the managing operations team could provide real-time insights into opportunities for cross-training staffing needs for career growth.
- This supported management in optimizing staffing efforts for smarter scheduling based on differing occupancy levels and resulted in significant operational and financial savings.
STREAMLINED AND EFFICIENT LABOR INTELLIGENCE
With features like Overtime Risk Reporting and Productivity Reporting, CSM Corporation enjoys:
An accurate, automatic view of pertinent labor data within a standardized system of record.
Quick access to important labor metrics to ensure alignment across the portfolio of locations.
Increased visibility across senior leadership teams to streamline operational efficiencies in their hotels.
REAL-TIME TRACKING OF OCCUPANCY RATES, LABOR USAGE & OVERTIME EFFICIENCIES
With Hotel Effectiveness, CSM Corporation can accurately track labor hours and rates, enabling automated reporting for General Managers to:
- Compare hotels in a portfolio or hotel departments side-by-side and see their full labor usage
- Highlight where opportunities for improvement have surfaced across different organizations, departments, and properties.
- Identify where to add or reduce spend while modifying headcount for long-term labor gains.
These organizational changes had a significant financial impact on the operational bottom line.
The Results
UNPARALLELED FINANCIAL SAVINGS IN OVERTIME MANAGEMENT
These two technologies provide CSM Corporation with a comprehensive view of labor costs in conjunction with flexible targets like occupancy rates and significant operational efficiencies.
- 80% REDUCTION IN OVERTIME ACROSS CSM'S PROPERTIES
Within the first year of implementing Hotel Effectiveness, overtime labor savings were down 80% across the portfolio.
- SIGNIFICANT REDUCTION IN HOURS PER OCCUPIED ROOM
In the second half of the year, CSM averaged 63 hours per occupied room in the housekeeping department. The historical run rate on that was 82.
- ENHANCED TEAM ALIGNMENT
Enhanced Team Alignment: Actabl’s tools' consistent data have improved team alignment, leading to better decision-making and operational efficiency.
SUPERIOR LABOR OPERATIONS THROUGH STRUCTURAL EFFICIENCIES AND PROTOCOLS
From the beginning, CSM’s collaboration with Actabl has positively impacted its growth. Unlike other software providers, Actabl ensured that the implementation process was smooth and that the CSM organization received timely assistance whenever needed.
Utilizing Actabl, CSM saw:
- Decreased Overtime and Extraneous Labor Costs
- Increased Accountability Among Managers
- Operational Efficiencies Throughout Portfolio
- Incredible ROI to drive new decisions for CSM
By automating and integrating key processes, CSM has saved significant amounts of money and freed up time for the team to focus on strategic priorities. The ROI is evident in the improved operational efficiency and substantial financial savings.
100% of CSM’s portfolio is utilizing Actabl
Optimized Labor Management:
CSM Delivers Unparalleled Labor Efficiencies With Hotel Effectiveness
