Feather Falls Casino:Feather Falls Casino:
How A Successful Casino
Becomes More SuccessfulPart 3: Great Gains Results
In his first days as Feather Falls Casino’s new General Manager, Randy Carter realized that the casino was facing major growing pains that were revealing themselves as people problems. To quickly accomplish his goals he asked Bill Werst of Growth Associates to assist.
The specific issues they faced can be found in your September NAC issue [Feather Falls Casino: How A Successful Casino Becomes More Successful – Part 1: Birth, Success, and Growing Pains. The actions they took can be found in your October edition – Part 2: Actions to Turn Growing Pains Into Great Gains.
This article covers the dramatic results that the employees and managers of Feather Falls Casino have attained. We’ll start with the ‘softer’ results of the department action plans, move on to the ‘harder’ measurement of turnover, and end with the ultimate measurement – the bottom line.Soft Results
The individual department action plans include over 50 improvement items. That’s 50 improvements that didn’t exist before April. They cover implementation actions for improving communications, increasing sales, improving safety, employee recognition, and employee inclusion in decision making. Examples of implemented action plans include:
- Table Games: Timely communication by passing on managers meeting minutes within 48 hours and producing monthly calendar of events 30 days in advance
- Drop Team: Involving employees in redesigning their work
- Security: Holding three pre-shift meetings each day covering all information received from casino and all incidents reports
- Restaurant: Designed and implemented specific job descriptions with "scripts" and duties for each dining sequence step.
- Slots: Involving employees in procedural changes as well as encouraging them to make suggestions and complaints.
- Housekeeping: Shift overlaps to find out what prior shift has done and what needs to be done
- Maintenance: Implemented safety training for fire, machinery, and equipment safety
Employee satisfaction and morale seems to have improved dramatically. The follow up employee survey will confirm this. Department "siloing", described in the first article, has been replaced with a cooperative team effort. Departments and individuals are working together to meet casino goals rather than just their individual department’s goals. Pride, ownership, and smiles have and are increasing throughout the casino.
Has Feather Falls Casino turned itself into Camelot? Not yet, but it is rapidly heading in the right direction. And, all these changes have occurred under the stressful situation of preparing for the grand opening of a 65,000 square foot addition.Turnover
Historically Feather Falls Casino’s employee turnover was running at 45% - 50%. Turnover was projected at 51% for 2002. During the first quarter of 2002 turnover averaged 45% [projected annually].
In April we introduced the interview and March employee survey results and took immediate corrective actions to improve employee treatment, control procedural changes, involve employees in department decisions, and develop department improvement action plans. Turnover dropped to an average of 23% [projected annually] during the second quarter. Including July and August, turnover has maintained a 25% rate.Direct Cost of Turnover
Growth Associates conducted a turnover cost study at the 2001 Nevada State Human Resource Conference. Human Resource managers estimated that it costs 50% to 200% of annual salary to replace an employee. These costs included such variables as advertising, interview time, background checks, productivity lost during learning curve, orientation, training time, testing, and uniforms.
Using very conservative numbers, $8/hour for the average Feather Falls Casino employee and a replacement cost of 25% of annual salary [1/2 of the lowest percent from the Nevada State Human Resources survey], it costs the Casino $3,840 to replace one employee. [$8.00/hour x 40 hours/week x 48 weeks/year = $15,360 x 25% replacement cost = $3,840]
In the five months since we began implementing actions, Feather Falls Casino had saved $161,280 in turnover costs [42 less turnover employees X $3,840 = $161,280]. If Feather Falls Casino maintains this 25% turnover average through next April, it will save $387,840 in turnover costs.Hidden Cost of Turnover:
High turnover creates inferior service and customer disruption The above figures do not include the revenue lost from defecting customers or the cost of replacing those customers.
You can’t win the Super Bowl with rookies.
Bill WerstCustomers, especially gaming customers, want consistency. They have their favorite seat, machine, dealer, caller, dauber, and food items. They have their favorite employees. Employees who know them, recognize them, and treat them as family. You can’t provide this consistency if you turnover all your employees every two years. You can’t provide consistent and satisfactory service with rookies.
Feather Falls Casino has already saved $161,000 in turnover costs while improving employee and customer satisfaction and loyalty. Turnover savings alone have already paid for the entire change effort - - five times! Not a bad start.The Bottom Line
The ultimate measurement for any business is the bottom line. While actual financial figures can not be released, the following financial information is available. Feather Falls Casino earned record profits despite the complications of nine months of heavy construction and having to close its 600 positions parking lot for 75 days leading up to the September 18th Grand Opening.
During this critical final phase of construction Feather Falls Casino was still able to generate more customer volume and profits then in previous years. Management and employees overcame dust, California summer heat, and a half mile ‘customer commute’ with an innovative ‘Shuttle Up and Win’ promotion.
This effort was put together through outstanding efforts, creativity, and cooperation of the Marketing, Maintenance, Security, and Cage departments. The ‘Shuttle Up and Win’ effort moved 65,000 people in an atmosphere that insured that customers repeated rather than became one time ‘shuttlers’.
Perhaps the best test of your ability to deliver consistent outstanding customer service
is how your people perform under stress. Our people surpassed this test!
Randy Carter
This effort succeeded because in addition to accomplishing their specific job responsibilities, employees focused on their "real job" - - delivering outstanding customer service.CONCLUSION:
Is Feather Falls Casino satisfied with the results? Who wouldn’t be satisfied with motivated employees and managers, a 56% reduction in costly turnover, and record profits during stressful construction?
However, Feather Falls Casino management believes it has only begun the process of continuous quality improvement. Management believes that there are great opportunities for additional improvements and profits.
Part 4: Sustaining the Gains will highlight Feather Falls Casino’s plan for its future growth and profitability.
Background situation - Part 1: Birth, Success, and Growing Pains
Actions taken - Part 2: Actions To Turn Growing Pains Into Great Gains
Results to date – Part 3: Great Gains Results
Future plans - Part 4: Sustaining the Gains
The articles are written by Randy Carter, General Manager of Feather Falls Casino, and Bill Werst, President of Growth Associates, the consulting firm working with Randy and his staff to initiate the process of continuous organizational improvement.
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