In the previous videos we have discussed how to analyze the profit and loss in a very brief and very on a high level view, but is it the purposes performance depend only on data? Not really, there are other aspects of the business performances which are not depicted in the profit and loss statement. So, what are they? There are other reports necessary to diagnose the total performance, it can be, they can be divided into three other prospects customer So, what are the operations statistics, how many customers what are the how many customers we are getting, how many surveys we are getting, how many feedbacks we are getting, what are the quality of those feedbacks? Are there any requirements for any operation to be improved from a guest perspective? Is it the satisfaction level of each and every aspect of the guest journey is better for the check in checkout billing settlements, quality at the food quality of the services, cleaning this.

So, those are all the other important aspects that we have to see and how much new customers we are able to get what is the loyalty program that we are able to generate, how many, how many programs, how many peoples how many customers are being enrolled to the loyalty programs, how much repeat business we are getting from them. So, these are all the other aspects which are important or more important for the business performance of the future. So, which also needs to be looked at those are all the center if there is no standard report for that those are all depend on the hotel and the conditions of each hotel. So we will be just learning on the overall statistics, how we can analyze the business performance from other aspects. Then from the employee aspects also we have to look at performance because as somebody as Richard Branson or other multi billionaires are saying, take care of your employees and they will take So, to take care of the employees, we also need to look at their satisfaction.

So, their job satisfaction, how satisfied are they? So, how do we measure the performance? Normally we take the employee survey every every year every six months, we have one to one sessions with the employees, you may have coffee sessions with the employees to check on their satisfaction level to check on their motivation level, how are they how how motivated are they one such term is called employee turnover, how many percent of how many percent people are leaving our organization on a year to year basis month to month basis and what is it compare with the industry. So if you have a high labor, employee turnover compared to the industry or your market, which means employees are not really happy with the company, so we have to look at that because high employee turnover is an indication that you may not be earning a high enough profit which is not a very good idea, you may have productivity reports which we have discussed earlier.

And also the training reports how many hours training the person is getting, how many how much is their level of the operation. So, productivity reports will also show the training. Protein reports will show the effectiveness of the training. employee turnover will also show the effectiveness of the training, motivation trainings, English trainings. So, those are all the different different aspects of employee related things that meet the business performs the business owners or the top decision makers also have to look for then you have some internal processes, which means check in time serving time, how much it takes, how much time it takes to do the checking of the guest, How much time will it take to serve order to take the order new suppliers, are we picking new suppliers or we are relying on certain particular suppliers? maintenance report, are we doing enough preventive maintenance or we are not doing enough preventive maintenance because that will affect the property's ability to sustain in the future.

So those are all the different different aspects of the business performance that we are looking at, so that we can check our business performance from an overall perspective rather than on the financial perspective. So there's all four perspective, finance perspective, customer perspective, employee perspective, and internal processes are called balanced scorecard. We're going to be looking at that in the future as well. One such thing in so how we do this turns all these reports depend on some kind of benchmark we have been talking about to compare with a benchmark compared with a budget. So what is the budgeting and forecasting? So what that exercise is called budgeting and forecasting, so budgeting and forecasting is not only related for the finance is also elected for operations.

So there's a major There's a quote from Benjamin Franklin, if you don't plan you plan to fail. So, every business has to do a budgeting. So, how we do the budgeting. So, it serves and why we do that. So, it serves as a guide in making marketing and operational decisions and reduce the uncertainty a certain extent, because we have, we need to give our employees our managers certain path, where they can work for otherwise they will be working in the top right. Then you It also provides as a yardstick in measuring performance, which for customer elated for the employee related for maintenance related internal processes related financial performance.

So, it provides a yardstick so that we can measure if we are going in the right direction or the wrong direction. It also helps to communicate the goals and plans effectively at all levels because most of the time management at the level all the management levels are involved in budgeting and forecasting. So, it helps to understand our plan effectively And it also helps to involve the level of an increase the more accountability in the organization. And it also helps to understand our strengths and fix our weaknesses. So that's the importance of budgeting and forecasting.