Financial Audits are mandated by some third party and every property is responsible for having financial audits performed at specific intervals.
Operations Audits are not mandated. They focus on Labor, the largest single Hotel/Casino expense. Labor controls represent a major opportunity to reduce costs and to improve Guest Service.
1 - What is an Operations Audit?
An Operations Audit focuses on Forecasting, Labor Standards, Staffing Requirements, Scheduling Strategies, and Reporting Flow and Timeliness. As a Financial Audit tests financial data and financial processes, our Operations Audit tests productivity and operations processes.
2 - Why do I need an Operations Audit?
You need a Financial Audit to get an independent, expert opinion of your financial controls and practices.
You need an Operations Audit to get an independent, expert opinion of your operations controls and practices.
3 - How does an Operations Audit differ from a Financial Audit?
A Financial Audit is primarily made by reviewing internal control procedures. It is the examination of records and reports of a company to assure that what is provided is relevant and truthful, and that all assets and liabilities are properly recorded on the balance sheet and that all profits and losses are properly assessed.
A MARK 100 Operations Audit reviews internal productivity controls and reports, but the emphasis is upon direct observation and upon Management and Supervisory interviews to determine not only how things are done but, more importantly, why they are done that way, at that time, by that number of staff.
4 - What Business Practices are audited in an Operations Audit?
All practices that impact Staffing and Guest Service levels including Forecasting, Flow Analysis, the application of valid work (as distinguished from financial) units of measure, realistic Labor Standards, and timely reporting.
5 - Will the Audit interrupt operations and consume a major portion of my Managers’ and Supervisors’ time?
No! We are experienced in observing operations, how and when to query Managers and Supervisors, and how to not be intrusive or disruptive.
6 - How does an Operations Audit differ from a standard Operations Analysis?
An Operations Analysis is chiefly concerned with identifying and quantifying operating system deficiencies. An Operations Audit is chiefly concerned with the application of Best Practices, how effective your operating systems are, and the property’s ability to forecast, measure, schedule, and control each department.
7 - What will I gain from having an Operations Audit conducted by MARK 100?
- a benchmark for Best Practices and a realistic productivity review
- quantification of system improvement potential
- insights into the reasons your Managers, Department Heads, and Supervisors do business the way they do… their understanding and interpretation of corporate purpose and objectives – the who, what, where, when, how, and especially the why of the way they manage your business.
- an analysis of your MARK 100 Management Index©
The MARK 100 Management Index© is a proprietary quantitative analysis tool that relates ratios of Exempt to Non-Exempt (salaried to hourly) employees. It is a Management cold shower that measures how many people are employed to create and implement policy and to direct and supervise others relative to the number employed to actually deliver the company’s goods and services.
8 - How long does an Operations Audit take?
Operations Audits range from 2 to 4 calendar weeks, 4 to 8 consultant man weeks, relative to the number of departments to be audited and the overall size of the facility.
9 - How much does an Operations Audit cost?
Operations audits pricing begin at $25,000.
10 - How do I schedule an Operations Audit?
