2005 Landmark Case Study

National Institute of Standards and TechnologyTechnology Administration • Department of CommerceBaldrige National Quality Program

LandmarkDining, Inc.Case Study

2005

National Institute of Standards and TechnologyTechnology Administration • Department of Commerce

Baldrige National Quality Program2005

The Landmark Dining, Inc., Case Study was prepared for use in the 2005 Malcolm BaldrigeNational Quality Award Examiner Preparation Course. The Landmark Dining, Inc., CaseStudy describes a fictitious small business organization in the restaurant industry. There is noconnection between the fictitious Landmark Dining, Inc., and any other organization, eithernamed Landmark Dining, Inc., or otherwise. Other organizations cited in the case study also arefictitious, except for several national and government organizations. Because the case study isdeveloped to train Baldrige Examiners and others and to provide an example of the possiblecontent of a Baldrige application, there are areas in the case study where Criteria requirementsare not fully addressed.

LandmarkDining, Inc.Case Study

CONTENTS

2005 Eligibility Certification Form ……………………………………………………………… i

Organization Chart ……………………………………………………………………………… x

2005 Application Form ………………………………………………………………………… xi

Glossary of Terms and Abbreviations …………………………………………………………… xii

Preface: Organizational Profile

P.1 Organizational Description …………………………………………………… xvP.2 Organizational Challenges …………………………………………………… xviii

Category 1—Leadership

1.1 Senior Leadership …………………………………………………………… 11.2 Governance and Social Responsibilities ……………………………………… 3

Category 2—Strategic Planning

2.1 Strategy Development ………………………………………………………… 62.2 Strategy Deployment ………………………………………………………… 8

Category 3—Customer and Market Focus

3.1 Customer and Market Knowledge …………………………………………… 123.2 Customer Relationships and Satisfaction …………………………………… 14

Category 4—Measurement, Analysis, and Knowledge Management

4.1 Measurement, Analysis, and Review of Organizational Performance………… 184.2 Information and Knowledge Management …………………………………… 21

Category 5—Human Resource Focus

5.1 Work Systems ………………………………………………………………… 235.2 Employee Learning and Motivation ………………………………………… 265.3 Employee Well-Being and Satisfaction ……………………………………… 28

Category 6—Process Management

6.1 Value Creation Processes……………………………………………………… 306.2 Support Processes and Operational Planning ………………………………… 34

Category 7—Business Results

7.1 Product and Service Outcomes ……………………………………………… 367.2 Customer-Focused Results …………………………………………………… 387.3 Financial and Market Results ………………………………………………… 397.4 Human Resource Results……………………………………………………… 427.5 Organizational Effectiveness Results ………………………………………… 447.6 Leadership and Social Responsibility Results………………………………… 48

i

2005 Eligibility Certification Form Page 1of 7

Malcolm Baldrige National Quality Award

1. Applicant

Official Name Headquarters Address_______________________________________________ _______________________________________________

Other Name_______________________________________________ _______________________________________________

Prior Name_______________________________________________ _______________________________________________Has the applicant self-certified for eligibility in a prior year(s)?

� Yes � No � Do Not Know

If “yes,” the year(s) in which the applicant self-certified and the name of the applicant at that time, if different

Year(s)__________________________________________________________________________________________________________

Name(s) of Applicant__________________________________________________________________________________________________________

2. Highest-Ranking Official� Mr. � Mrs. � Ms. � Dr.

Name Address_______________________________________________ _______________________________________________

Title_______________________________________________ _______________________________________________

Telephone No._______________________________________________ _______________________________________________

E-mail Fax No._______________________________________________ _______________________________________________

3. Eligibility Contact Point� Mr. � Mrs. � Ms. � Dr.

Name Address_______________________________________________ _______________________________________________

Title_______________________________________________ _______________________________________________

Telephone No. Overnight Mailing Address (Do not use a P.O. Box number.)_______________________________________________ _______________________________________________

Fax No._______________________________________________ _______________________________________________

E-mail_______________________________________________ _______________________________________________

4. Alternate Eligibility Contact Point� Mr. � Mrs. � Ms. � Dr.

Name__________________________________________________________________________________________________________

Telephone No.__________________________________________________________________________________________________________

Fax No.__________________________________________________________________________________________________________

OMB Clearance #0693-0006Expiration Date: January 31, 2007

If you are unable to respond to any item,please contact the Baldrige Program Office at (800) 898-4506 before submitting your form.

Landmark Dining, Inc.

X

X

Owen Dudley

President/CEO

713-555-1212

[email protected]

X

Debby Dudley

Catering Director

713-555-1214

713-555-1215

[email protected]

X

Sam Dudley

713-555-1216

713-555-1217

1871 Harrisburg Station Drive

Houston, Texas 77092



713-555-1213





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2005 Eligibility Certification Form Page 2 of 7

5. Applicant Status

a. Has the applicant officially or legally existed for at least one year, or prior to April 12, 2004? (Check one.)

� Yes � No

b. Has your organization ever been a Malcolm Baldrige National Quality Award recipient? (Check one.)

� Yes � NoIf you checked “No,” proceed to item 6.

c. Was your organization an Award recipient in 1999 or earlier? (Check one.)

� Yes � NoIf you checked “No,” your organization is not eligible to reapply this year for the Award or for feedback (please contact the Baldrige Program Office at 800-898-4506 if you have any questions). If you checked “Yes,” please choose one of the fol-lowing options:

Applying for feedback only � Applying for the Malcolm Baldrige National Quality Award

6. Award Category and For-Profit/Nonprofit Designation (Check as appropriate.)

� Manufacturing (For-Profit Only) � Education (For-Profit) � Health Care (For-Profit)

� Service (For-Profit Only) � Education (Nonprofit) � Health Care (Nonprofit)

� Small Business (For-Profit Only)

Criteria being used: (Check one.)

� Business � Education � Health Care

(For-profit education and health care organizations may choose to use the Business Criteria and apply in the service or small business categories.)

7. Industrial Classification

List up to three of the most descriptive three- or four-digit NAICS codes. (See page 23 of the PDF version of the BaldrigeAward Application Forms at www.baldrige.nist.gov/Award_Application.htm.)

a. _____________ b. _____________ c. _____________

8. Size and Location of Applicant

a. Total number of • employees (business) ________• faculty/staff (education) ________• staff (health care) ________

b. For the preceding fiscal year,• check one financial descriptor: � Sales � Revenues � Budgets

• check amount: � 0–$1M � $1M–$10M � $10M–$100M � $100M–$500M � $500M–$1B � More than $1B


X

X

X

X

X

X

722

212

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8. Size and Location of Applicant—continued

c. Number of sites: U.S./Territories _______ Outside U.S./Territories _______

d. Percentage of employees: U.S./Territories _______ Outside U.S./Territories _______

e. Percentage of physical assets: U.S./Territories _______ Outside U.S./Territories _______

f. If some activities are performed outside the applicant’s organization (e.g., by a component of the applicant that is outsidethe United States or its territories, the parent organization, or its other subunits), will the applicant, if selected for a sitevisit, make available in the United States sufficient personnel, documentation, and facilities to allow full examination ofits operational practices for all major functions of its worldwide operations?

� Yes � No � Not Applicable

g. In the event the applicant receives an Award, can the applicant make available sufficient personnel and documentation to share its practices at The Quest for Excellence Conference and at its U.S. facilities?

� Yes � No

h. Attach a line and box organization chart for the applicant. In each box, include the name of the unit/division and itshead.

9. Subunits (If the applicant is not a subunit as defined on pages 6–7, please proceed to question 10.)

a. Is the applicant _____ a larger parent or system? (Check all that apply.)

� a subsidiary of � a unit of � a school of� a division of � a like organization of � owned by� controlled by � administered by

b. Parent Organization

Name Highest-Ranking Official___________________________________________________________

Address Name___________________________________________________________ _____________________________________________________________

Title___________________________________________________________ _____________________________________________________________

Number of worldwide employees of the parent ______

c. Is the applicant the only subunit of the parent organization intending to apply? (Check one.)

� Yes � No (Briefly explain.) � Do Not Know

d. Briefly describe the major functions provided to the applicant by the parent or by other subunits of the parent. Examplesof such functions include but are not limited to strategic planning, business acquisition, research and development, data gathering and analysis, human resources, legal services, finance or accounting, sales/marketing, supply chain man-agement, global expansion, information and knowledge management, education/training programs, information systemsand technology services, curriculum and instruction, and academic program coordination/development.




3

100%

100%

X

X

iv



9. Subunits—continued

e. Is the applicant self-sufficient enough to respond to all seven Baldrige Criteria Categories?

� Yes � No (Briefly explain.)

f. Provide the name and date of the official document (e.g., annual report, organization literature, press release) supporting thesubunit designation. Attach relevant portions of the document showing clear definition of the applicant as a discrete entity.Note: applicants supplying a Web site as documentation must print the relevant pages and include these with the application.

Name of the Document Date

g. Briefly describe the organizational structure and relationship to the parent.

Attach a line and box organization chart(s) showing the relationship of the applicant to the highest management level of the parent, including all intervening levels. Each box within the chart should include the name of the head of the unitor division.

h. Is the applicant’s product or service unique within the parent organization? (Check one.)

� Yes � No

If “No,” do other units within the parent provide the same products or services to a different customer base? (Check one.)� Yes � No

If neither of the “Yes” boxes in “h” is checked, complete 1, 2, and 3 below.

(1) Provide a brief description of how the market and product(s) or service(s) are similar.

(2) Indicate the organizational relationships of all units that provide similar or identical products or services, including the approximate sales, revenues, or budgets for each.

(3) Describe how the applicant is different from its parent and the other subunits of the organization (e.g., market, location, name).


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9. Subunits—continued

i. Manufacturing and service subunits of parents with >500 employees, only.

• Are more than 50 percent of the applicant’s products or services sold or provided directly to customers outside the applicant’s organization, the parent organization, and organizations controlled by the applicant or the parent?(Check one.)

� Yes � No

• Does the applicant have more than 500 employees? (Check one.)

� Yes � No

• Do the applicant’s employees make up more than 25 percent of the worldwide employees of the parent? (Check one.)

� Yes � No

j. All business subunits, regardless of parent size.

• Was the applicant independent prior to being acquired, and does it continue to operate independently under its own identity? (Check one.)

� Yes � No � Not Applicable

• Is the applicant separately incorporated and distinct from other subunits of the parent? (Check one.)

� Yes � No

Note: If self-certification is based on the subunit being independent prior to being acquired and continuing to operate independently under its own identity, provide a copy of an official document to support this response.

Note: If all answers to “i” and “j” are “No,” contact the Baldrige Program Office at (800) 898-4506 before submitting your form.

10. Supplemental Sections (Check one.)

� The applicant has (a) a single performance system that supports all of its product and/or service lines and (b) products or services that are essentially similar in terms of customers/users, technology, types of employees, and planning.

� The applicant has (a) multiple performance systems that support all of its product and/or service lines and/or (b) productsor services that are not essentially similar in terms of customers/users, technology, types of employees, and planning.

If you checked this box, please describe briefly the differences among the multiple performance systems of your organization in termsof customers, types of employees, technology, planning, and quality systems.

Note: The applicant’s Eligibility Contact Point will be contacted if the second option is checked. Applicants may have two or more diverse product and/or service lines (i.e., in different NAICS codes) with customers, types of employees, technology, planning, and quality systems that are so different that the application report alone does not allow sufficient detail for a fair examination. Such applicants may submit one or more supplemental sections in addition to the application report. The use of supplemental sections must be approved during the eligibility certification process and is mandatory once approved.



X

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Signature of Highest-Ranking Official

Printed Name

Date


11. Application Format

If your organization applies for the 2005 Award, in which format would you submit the Application Package? (Check one.)

� 25 paper copies (due date May 26, 2005) � CD (due date May 12, 2005)

12. Self-Certification Statement, Signature of the Highest-Ranking Official

I state and attest that

(1) I have reviewed the information provided by my organization in this Eligibility Certification Package.

(2) To the best of my knowledge,

� no untrue statement of a material fact is contained in this Eligibility Certification Package, and

� no omission of a material fact has been made in this package.

(3) Based on the information herein and the current eligibility requirements for the Malcolm Baldrige National QualityAward, my organization is eligible to apply.

(4) I understand that at any time during the 2005 Award Process cycle, if the information is found not to support eligibility, my organization will no longer receive consideration for the Award and will receive only a feedback report.

13. Eligibility Certification Filing Fee

Enclose a $150 nonrefundable fee to cover the cost of the eligibility certification filing process. Make the check or moneyorder payable to

Malcolm Baldrige National Quality Award.

You also may pay by VISA, MasterCard, or American Express. Please indicate the method of payment below:� Check or money order (enclosed) � VISA � MasterCard � American Express

Card Number Authorized Signature_______________________________________________ _______________________________________________

Expiration Date Printed Name_______________________________________________ _______________________________________________

Today’s Date

X

X

January 19, 2005

Owen Dudley

One senior member from each organization whose Eligibility Certification Package is postmarked on or before March 11, 2005, may become a member of the 2005 Board of Examiners. The opportunity to learn and the requiredcommitment of time are substantial. The time commitment is a minimum of 110 hours between April and December(including approximately 40 hours in April/May to complete prework for the Examiner preparation course, 4 days in May to attend the Examiner preparation course, and another 35–50 hours in June to complete a Stage 1: IndependentReview). If requested by the Program, Examiners also are expected to participate in the Stage 2: Consensus Review(approximately 25 hours) and Stage 3: Site Visit Review (approximately 9 days).

Nominees must be citizens or permanent residents of the United States and be located in the United States or its territories.

� ___________________________________________ from our organization will serve on the 2005 Board of Examiners.Name of Senior Member Nominee*

*Please, no substitutions after April 12, 2005.

Nominee’s contact information:

� Mr. � Mrs. � Ms. � Dr.

Nominee’s Title_______________________________________________

Name of Nominee’s Organization Nominee’s Home Address_______________________________________________ ___________________________________________

Nominee’s Work Address_______________________________________________ ___________________________________________

Home Phone_______________________________________________ ___________________________________________

Work Phone Home Fax_______________________________________________ ___________________________________________

Work Fax Home E-mail Address_______________________________________________ ___________________________________________

Work E-mail Address_______________________________________________


14. Nomination to the Board of Examiners



X Debby Dudley

X

Catering Director

Landmark Dining, Inc. 3224 Robin Drive

1871 Harrisburg Station Drive Houston, Texas 77093

Houston, Texas 77092 713-555-9845

713-555-1214 713-555-7630

713-555-1215 [email protected]

[email protected]

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viiiviii

The following information is needed by the Malcolm Baldrige National Quality Award ProgramOffice to avoid conflicts of interest when assigning Examiners to evaluate your application andby Examiners in performing their evaluations.

1. Site Listing and Descriptors

Please refer to the instructions on page 18 of this document to complete this Site Listing and Descriptors form. It is importantthat the totals for the number of employees, faculty, and/or staff; percentage of sales, revenues, or budgets; and sites on this formmatch the totals provided in response to questions 8a, 8b, and 8c on pages 2 and 3 of the 2005 Eligibility Certification Form. Forexample, if you report 600 employees in response to question 8a, the total number of employees provided in the Site Listing andDescriptors form should be 600. Duplicate the Site Listing and Descriptors page if all sites cannot be listed on a single page.

Provide all the information for each site, except where multiple sites produce similar products or services. For multiple sitecases, refer to “c” under item 8, which is titled Size and Location of Applicant, on page 3 of the Eligibility Certification Form.Also, see 2005 Eligibility Certification Form—Instructions on page 9 of this document.

Use as many additional copies of this form as needed to include all sites.

2005 Additional Information Needed Form Page 1 of 2


Address of Site(s) Percentage� Sales� Revenues� Budgets

NumberEmployees,

Faculty,and/or Staff

For each site, describe the relevantproducts, services, and/or technologies.


Headquarters1871 Harrisburg Station DriveHouston, Texas 77092

Harrisburg Station1860 Harrisburg Station DriveHouston, Texas 77092

Texas Lightkeeper3020 Coastal HighwayGalveston, Texas 77532

12

108

92

0%

56% (49%Dining and 7% Catering)

44%

Organizational Leadership, Accounting,Marketing, Procurement, Warehouse,Business Excellence, Human Resources,Safety, Compliance, Catering Reservations,Dinner Delivery Service

Dining services for customers andcatering servicesTechnologies include restaurant kitchenequipment, restaurant software system

Dining services for customersTechnologies include restaurant kitchenequipment, restaurant software system

X

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2. Key Business/Organization Factors

List, briefly describe, or identify the following key organization factors. Be as specific as possible to help us avoid real or per-ceived conflicts of interest when assigning Examiners to evaluate your application. “Key” means those organizations that consti-tute 5 percent or more of the applicant’s competitors, customers/users, or suppliers.

A. List of key competitors

B. List of key customers/users

C. List of key suppliers

D. Description of the applicant’s major markets (local, regional, national, and international)

E. The name of the organization’s financial auditor

F. The applicant’s fiscal year (e.g., October 1–September 30)

2005 Additional Information Needed Form Page 2 of 2



Black Pearl Steakhouse, Surf and Turf Seahouse, Blackberries, A Bite of Texas, Corrinas, Dukes andDuchesses, Formerly Known As…, Morgan’s Lonestar Grill, Texas Property, Infront Bar and Grill,Pepperleaves

Hundreds of diners of steak and seafood in the Houston and Galveston area; distributors of HomeMeal Replacements (HMRs) in the Houston Area, including Kids Happen, Peanuts, Prisms ChildrenCenter, Matthew’s Mahem, Camelot Children’s Care, Pacers Health Center, Figurines Women's Fitness,and Multicenters Gym

TexRest Purchase Group; Geekhead Information Systems; Texas Maintenance Systems; PromotionalExperts; Staffing Solutions, Inc.; Security Systems, Inc.

Houston, Texas and Galveston, Texas

David & Bradley LLP

January 1–December 31

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Release and Ethics Statements

a. Release Statement

We understand that this application will be reviewedby members of the Board of Examiners.

Should our organization be selected for a site visit, weagree to host the site visit and to facilitate an open andunbiased examination. We understand that our organiza-tion must pay reasonable costs associated with a site visit.The site visit fees range from $1,500–$35,000, dependingon the type of applicant. (The fees are shown on page 4.)

If our organization is selected to receive an Award, weagree to share nonproprietary information on our suc-cessful performance excellence strategies with other U.S.organizations.

b. Ethics Statement and Signature of the Highest-Ranking Official

I state and attest that

(1) I have reviewed the information provided by my organization in this Application Package.

(2) To the best of my knowledge,

� no untrue statement of a material fact is contained in this Application Package, and

� no omission of a material fact that I am legally permitted to disclose and that affects my organization’s ethical and legal practices has been made. This includes but is not limited to sanctions and ethical breaches.

ApplicantApplicant Name_________________________________________

Mailing Address_________________________________________

_________________________________________

_________________________________________Award Category (Check one.)� Manufacturing � Service � Small Business� Education � Health Care

For small businesses, indicate whether the largerpercentage of sales is in service or manufacturing.(Check one.)� Manufacturing � Service

Criteria being used (Check one.)� Business � Education � Health Care

Official Contact Point

� Mr. � Mrs. � Ms. � Dr.

Name_________________________________________

Title_________________________________________

Mailing Address_________________________________________

_________________________________________Overnight Mailing Address (Do not use P.O. Box number.)_________________________________________

_________________________________________

Telephone No._________________________________________

Fax No._________________________________________

Alternate Official Contact Point

� Mr. � Mrs. � Ms. � Dr.

Name_________________________________________

Telephone No._________________________________________

Fax No._________________________________________

1.

2.

3.

5.Malcolm Baldrige National Quality Award

2005 Application Form Page 1 of 2

4.

Provide all information requested. A copy of page 1 of this2005 Application Form must be included in each of the 25paper copies of the application report (or, alternatively, inthe PDF version on a CD).

Date___________________

Signature _________________________________________

� Mr. � Mrs. � Ms. � Dr.

Printed Name_________________________________________

Title_________________________________________

Mailing Address_________________________________________

_________________________________________

_________________________________________

Telephone No._________________________________________

Fax No._________________________________________

X

X

X

X

X

X

Debby Dudley

Catering Director



1871 Harrisburg Station DriveHouston, Texas 77092

713-555-1214

713-555-1215

Sam Dudley

713-555-1216

713-555-1217

May 3, 2005

Owen Dudley

President/CEO




713-555-1212

713-555-1213




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2005 Application Form Page 2 of 2

Confidential Information

a. Social Security Number and Date of Birth of the Highest-Ranking Official

If your application is selected for Stage 3 review, this information will be used in the process fordetermining role model organizations (see pages 3–4).

Name_________________________________________

Social Security Number_________________________________________

Date of Birth_________________________________________

b. Application Fees (see page 28 for instructions)

Enclosed is $________ to cover one application report and ________ supplemental sections.

Note: An additional $1,250 is required if you are submittingthe application report on CD.

Make check or money order payable to

Malcolm Baldrige National Quality Award.

You also may pay by VISA, MasterCard, orAmerican Express. Please indicate your method of payment below:

� Check or money order (enclosed)

� VISA � MasterCard � American Express

Card Number_________________________________________

Expiration Date_________________________________________

Authorized Signature_________________________________________

Printed Name_________________________________________

Today’s Date_________________________________________

6. Submission

Complete Award Application Packages must be post-marked or consigned to an overnight delivery serviceno later than May 26, 2005 (May 12, 2005, if submitting on CD) for delivery to

Malcolm Baldrige National Quality Awardc/o ASQ—Baldrige Award Administration600 North Plankinton AvenueMilwaukee, WI 53203(414) 298-8789, extension 7205

OMB Clearance #0693-0006Expiration Date: January 31, 2007

7.

Please note: To help ensure the confidentiality ofthe information requested, submission requirementsfor this page (page 2) of your Application Form differfrom those for page 1 of the form and for the appli-cation report. Whether you submit 25 paper copiesor a CD of your application report, one completedpaper copy of page 2 may be submitted with yourAward Application Package, or the information maybe telephoned to ASQ at (414) 298-8789, extension7205. Do not include this page in the 25 copies of yourapplication report.

Owen Dudley

000-00-0000

October 24, 1943

$20000

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AACF: American Culinary Federation. Refers to the organiza-tion that provides a certification program for employees whoare chefs.

ADA: Americans with Disabilities Act

ATF: Bureau of Alcohol, Tobacco, Firearms, and Explosives.Refers to the federal agency that regulates licensing for servingalcohol.

BBE Director: Business Excellence Director

CCEO: Chief Executive Officer—Owen Dudley

CFO: Chief Financial Officer— Frank Fendley

COA: Certificate of Analysis

DDDSD: Dinner Delivery Service Division

DINERS: Refers to the process for performance improvementused by Landmark Dining employees. A full description is pro-vided in 6.1a(6).

EEBIT: Earnings before interest and tax

EEOC: Equal Employment Opportunity Commission

EPA: Environmental Protection Agency. Refers to the federalagency that regulates issues related to environmental safety.

ERISA: Employee Retirement Income Security Act

FFLSA: Fair Labor Standards Act

FMLA: Family Medical Leave Act

FoH: Front of House. Refers to employees who work in posi-tions that interface directly with customers. (e.g., servers,hosts/hostesses).

FTE: Full-Time Equivalent

Foodtrak: Software system used by Landmark Dining toprovide Point of Sale and management software.

GGDH: Galveston Department of Health. Refers to a regulatoryagency that oversees food safety compliance for the City ofGalveston.

HHACCP: Hazard Analysis and Critical Control Point. Refersto an approach developed by the U.S. Food and DrugAdministration to ensure the safety of food from its raw statethrough processing and consumption.

HDH: Houston Department of Health. Refers to a regulatoryagency that oversees food safety compliance for the City ofHouston.

HHS: Health and Human Services

HIPAA: The Health Insurance Portability and AccountabilityAct of 1996

HMHPA: Houston Metropolitan Historic Preservation Associ-ation. Refers to an association founded by Owen Dudleydedicated to service to the community and preservation ofhistorical sites.

HMR: Home Meal Replacement. Refers to the dinner deliveryservice product distributed to customers through partnerorganizations.

HR: Human Resource or Human Resources

IIRDP: Individual Review and Development Plan. Refers tothe approach used to provide employees feedback on their per-formance and guidance on their development.

IRS: Internal Revenue Service. Refers to the federal oversightagency for accounting and reporting practices.

IT: Information Technology

LLAN: Local Area Network. Refers to a type of informationtechnology access method to provide connectivity for employ-ees within a single site.

LSQA: Lone Star Quality Award. Refers to the state qualityaward program that emulates the Malcolm Baldrige NationalQuality Award Program.

Glossary of Terms and Abbreviations

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MMIS: Management Information System

NNRA: National Restaurant Association

OOJT: On-the-Job Training. Refers to a type of training thatprovides skills and knowledge by learning while performingspecific job functions.

On-Call employees: Refers to Landmark employees who arenot scheduled to work specific times. They are called on an as-needed basis in order to provide flexibility to address changingneeds of the organization.

OSHA: Occupational Safety and Health Administration

PPDA: Personal Digital Assistant. Refers to a type of technologyused by servers to connect to the point-of-sale (POS) system toplace orders and enter other appropriate information.

PDCA: Plan-Do-Check-Act. Refers to a specific improvementmethodology for processes made famous by W. EdwardsDeming. The DINERS Improvement Process is based on thismodel.

POS: Point of Sale. Refers to the software used by Landmarkfor management of operations and provided through theFoodtrak system.

RRSI: Repetitive strain injury

SS Corporation: Refers to the legal structure of the organiza-tion that provides a closely held organization the benefits ofbeing a corporation.

Sarbanes-Oxley: Refers to the Sarbanes-Oxley Act of 2002,federal legislation that focuses on transparency of operations inlarge, publicly held organizations (governance).

SWOTT: Strengths, Weaknesses, Opportunities, Threats, andTrends. A type of analysis used within the Strategic PlanningProcess to identify the most important short- and longer-termissues to address.

T TDH&HS: Texas Department of Health and Human Services.Refers to a state regulatory agency that oversees food safetycompliance.

TTY: TTY stands for teletypewriter but often is referred to asText Telephone. It also is sometimes called a TDD, orTelecommunication Device for the Deaf. A TTY is a specialdevice that lets people who are deaf, hard of hearing, orspeech-impaired use the telephone to communicate by allow-ing them to type messages back and forth to one anotherinstead of talking and listening. A TTY is required at both endsof the conversation in order to communicate.

W WAN: Wide Area Network. Refers to a type of informationtechnology access method to provide connectivity for employ-ees at various sites.

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P.1 Organizational DescriptionP.1a Organizational EnvironmentLandmark Dining, Inc., (Landmark) is a family-owned and-operated steak and seafood restaurant small business in southTexas. The first restaurant, Harrisburg Station, and its associat-ed catering business, Harrisburg Station Catering, are locatedin one of the oldest standing landmarks in Houston—a trainstation built in 1857 in the small settlement then known asHarrisburg. The second restaurant, Texas Lightkeeper, is locat-ed in a restored lighthouse built in 1853 in Galveston. Land-mark restaurants offer an exceptional dining experience at agood value to the Houston and Galveston metropolitan areas.

Mr. John Moodey established the first restaurant, HarrisburgStation, in 1945 after he returned from World War II. He andhis wife, who was accustomed to cooking a wide variety oflarge meals for her father’s ranch hands, purchased the recentlyvacated train station and renovated the structure to provideopen space for dining areas and a large modern kitchen. Therestaurant became renowned for its home-style cooking, heartyportions, and good value for the dollar.

Owen Dudley, a native of Houston, had fond memories of hisfamily’s experiences at Harrisburg Station and, as a boy, hadalways dreamed of someday owning the restaurant. Withrestaurant ownership in mind, Owen graduated from college in1965. He returned to Houston and obtained the position ofevening manager for the restaurant. Frank Fendly, Owen’s col-lege roommate, was hired as the bookkeeper for the restaurantthat same year.

By 1968, John Moodey and his wife decided to retire, and inresponse, Owen and Frank purchased the Harrisburg Stationrestaurant in Houston. Over the next ten years, the restaurantcontinued in the tradition of providing customers with greatfood, in a great atmosphere, at a great value. Owen tookexceptional pride in providing families with the same fondmemories of Harrisburg Station that he had as a child.

In 1990, with expansion on their minds, the friends establisheda company structure called Landmark Dining, Inc., to providesustainability to the existing restaurant and any future restau-rants. Later that year, the company acquired and renovated an-other vacant landmark building—an old lighthouse in Galve-ston, Texas. After the renovation, Owen’s son, Sam, opened therestaurant—Texas Lightkeeper. He also began assisting hisfather in general operations of the business, including strategicplanning and business planning.

After Owen’s daughter, Debby, received her Masters in Busi-ness Administration in 1998, she started a new catering serv-ice, Harrisburg Station Catering. She also used her expertise todevelop approaches to marketing research and customer rela-tionship management. Debby was an Examiner in the LoneStar Quality Award (LSQA) Program and later, the BaldrigeNational Quality Program, to help understand the Criteria forPerformance Excellence and how to implement them. Land-

mark applied for and received the LSQA award in 2002 andnow continues its performance excellence journey through theBaldrige program.

P.1a(1) Products and servicesLandmark’s key food services include lunch and dinner in-house dining, take-out dining, dinner delivery, and event cater-ing, such as corporate cookouts. Landmark restaurants providea full-service, memorable lunch and dinner dining experience,seven days a week. The restaurants are well known for greatsteak and fresh seafood meals in an historic atmosphere, andthey offer a variety of beer, wine, and spirits from around theworld. The typical per-person lunch check ranges from $13 to$25. Dinner entrees range from $16 to $35, a price that contin-ues to make Landmark a destination for families and businesspeople alike. In addition, the catering service provides infor-mal and formal lunches and dinners to groups up to 500.

In the fourth quarter of 2004, Landmark began a new servicecalled Landmark Dinner Delivery Service. This service deliv-ers pre-ordered dinners, or home meal replacements (HMRs),to a network of partners—day-care and gym facilities in theHouston area that distribute the meals as a service to their cus-tomers. Parents and other patrons may order the HMRs for anyday of the week and pick them up when they pick up theirchildren or finish their workouts.

P.1a(2) Organizational context/cultureLandmark takes pride in the historic atmosphere provided toguests and the family culture provided to employees. Service

VisionTo be recognized as one of the top ten dining experiencesin our cities each year because of the outstanding foodand unique experience provided.

MissionLandmark Dining is the ultimate restaurant experience forour guests. Through our focus on great tasting food,historic atmosphere, superior service, and professionalgrowth for our employees, we are the “restaurant ofchoice” for individuals, families, and businesses. We arepart of our communities’ histories through service andpreservation of our landmark buildings.

Values• Excellence in Service and Customer Focus• Exceptional Food• Promotion of a Healthy Lifestyle• Ethics, Honesty, and Integrity• Innovation and Energy• Family Culture with Teamwork• Employee Development• Community Enrichment• Historic Preservation• Joy

Figure P.1-1 Landmark’s Vision, Mission, and Values

P Preface: Organizational Profile

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to the community and preservation of history have always beena passion for Owen Dudley, who is a founding member of theHouston Metropolitan Historic Preservation Association(HMHPA). Service to the community is a key characteristic ofLandmark, with several programs designed to reach out to thecommunity, as described in 1.2c. This includes supporting localfood banks and “meals on wheels,” donating holiday meals,and hiring developmentally disabled persons and disabledveterans. Landmark also partners with the community collegeto teach children healthy eating habits and to provide trainingfor the college’s students and Landmark’s future employees.These practices and many other activities establish Landmarkas a proactive community citizen.

In 1990, with the opening of the second restaurant, Landmarkformalized its Vision, Mission, and Values. These express thefocus of the organization and its unique image of the future, andthey provide all employees with the framework to make decisionsand help set directions. They are shared with all new employees,reviewed during monthly meetings, posted in employee areas,and printed in restaurant menus and promotional literature.

P.1a(3) Employee profileAs a family-owned and -operated business, Landmark takesgreat pride in its restaurants and employees, many of whomhave grown up in the business. Most salaried employees start-ed as hourly employees, including Sam and Debby Dudley,who both have worked in the business since they were 16.

Currently, there are 212 employees, including 47 full-time, 102part-time, and 63 on-call employees. Although the restaurantindustry has a very high turnover rate, Landmark has retained

more than 33% of its employees for over 10 years, another19% have been retained for over 5 years, and 12% have stayedbetween 2 and 5 years. Most of the remaining 36% are em-ployees who are students or have recently graduated.

Employees reflect the diversity of the communities surround-ing our restaurants. Figure P.1-2 identifies the categories andtypes of employees by position and status, gender, racial/ethnicdiversity, age diversity, and education level.

To help our employees focus on core competencies, contractemployees are used in the areas of kitchen sanitation andrestaurant cleaning, information technology (IT), and mainte-nance of facilities and equipment. All on-site contract employ-ees are provided an orientation training session covering thehistory, Vision, Mission, and Values of the company.

Health and safety requirements are identified in Figure 5.3-1. Noemployees or contract employees are covered by bargaining units.

P.1a(4) Major technologies, equipment, and facilitiesFacilities include a 38-table (192-seat) restaurant in Houstonwith a lounge seating 35 people and a 43-table (218-seat)restaurant in Galveston, also with a lounge seating 35 people.The average capacity for restaurants in Houston and Galvestonis between 175 and 200 seats. A separate headquarters buildingfor functions of management, marketing, accounting, IT, vehi-cles, and warehousing is located in the historic railroad towerbuilding a block from the Houston restaurant.

Equipment includes traditional, microwave, and convectionovens, walk-in freezers and coolers, heated holding tables, andvarious small-wares used in commercial/restaurant food prepa-ration. The catering and dinner delivery services use the kitchenequipment during off-peak times. These divisions also leasetrucks to ensure safe transport of prepared food. The DinnerDelivery Service Division (DDSD) has specific food-safe stor-age containers that are kept at partner locations to sustain foodtemperatures once delivered to the distributors.

The IT infrastructure is focused primarily on the use of thewireless industry Point of Sale (POS) system called Foodtrak.This system facilitates reservation and order processing, inven-tory management, customer information management, menuengineering, operational measurement and analysis, time/attendance tracking, scheduling, data management, and ware-housing. Following a benchmarking visit to a Baldrige Awardrecipient, we expanded the system’s capabilities to enable us totrack customer information for tailoring the dining experience.

P.1a(5) Legal/regulatory environmentThe restaurant industry in Texas operates under a number ofregulations and requirements, as well as industry standards forfood safety, as shown in Figure P.1-3.

P.1b Organizational RelationshipsP.1b(1) Organizational structure and governanceIn 1990, Landmark was incorporated as an S corporation andformed a Board of Directors composed of Owen Dudley andhis wife (not active in the business), Sam Dudley, and FrankFendly. Debby Dudley was added to the board in 2000. In

IndustryLandmark Avg.

Management (salary) 7% (14) 3%Servers/hosts(esses) (hourly) 43% (92) 50%Chefs (hourly) 25% (52) 23%Kitchen staff (hourly) 6% (12) 7%Bussers (hourly) 6% (13) 5%Bartenders (hourly) 8% (17) 4%Support staff (salary) 6% (12) 8%Full-time 22% 20%Part-time/on-call 78% 80%Male 42% 45%Female 58% 55%White 24% Texas = 53%Hispanic 49% Texas = 32%African American 23% Texas = 12%Other 4% Texas = 3%>40 years old 7% 5%31–40 years old 24% 20%21–30 years old 40% 30%<21 years old 29% 45%Bachelors or above 21% 18%Some college 27% 20%High school 34% 50%<High school 18% 12%

Figure P.1-2 Employee Demographics

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addition, an external Advisory Board was established that con-sists of business leaders representing areas of much-neededexpertise. The two boards were formed to provide long-termdirection and oversight to the company. External financialoversight is provided through monthly updates to both boardsand an annual financial audit directed by the Advisory Board.

For day-to-day business, the organizational reporting structureis defined as shown in the Organization Chart (in the Eligibili-ty Certification Form). A system of internal controls ensuresaccountability of employees and family members at all levelsof the organization.

P.1b(2) Key customer and stakeholder groupsKey customer groups include individual and family patrons,businesses, and tourists. Industry studies and customer inputhave been used to identify and prioritize the following key re-quirements of all customers, regardless of segment:

#1—Reliability: the ability to deliver the promised servicedependably and accurately.

#2—Responsiveness: the willingness to help customers andto provide prompt service.

#3—Assurance: interaction with knowledgeable, courteouspersonnel and the ability to convey trust and confidence

#4—Empathy: the ability to provide caring and individual-ized attention to each customer

#5—Tangibles: attractive facilities, cleanliness, high-qualityequipment, and effective communication materials

#6—Exceptional food at a good value: flavorful meals,broad menu options, attractive presentation, and heartyportions at competitive prices

#7—A memorable dining experience: a combination ofappealing atmosphere, attentive service, and outstanding food

Each distinct customer group has additional, specific require-ments. Figure P.1-4 shows customer groups and these addition-al requirements.

Other stakeholder groups include regulatory agencies (identi-fied in Figure P.1-3), whose overall requirements and expecta-tions include compliance, accessibility, and transparency.Owners are a key stakeholder group whose requirements arereflected in the company’s Values. The community is a keystakeholder group with requirements for involvement, respon-sibility, and leadership. The supplier and partner stakeholdergroups’ requirements are shown in Figure P.1-5.

P.1b(3) Role of suppliers and distributorsSuppliers are an integral part of delivering a memorable diningexperience to customers. Landmark’s cost of sales (i.e., fundsneeded to purchase supplies) is approximately 30% of its totalsales. A local restaurant purchasing consortium provides coor-dination with important suppliers of food, beverages, andrestaurant supplies to ensure high quality and freshness ofmeat, seafood, vegetables, and other needed materials. Throughthe consortium, other services, such as health care insurancefor employees, are contracted at a lower price.

Other suppliers involved in value creation processes are the sup-pliers of IT services and custodial services. The use of thesesuppliers allows Landmark employees to function more effec-tively in their jobs and/or focus resources on core competencies.Suppliers involved in key support processes include a securitycompany, an advertising company, and a human resource (HR)services organization that assists with some HR functions(other support processes are managed internally). These keysuppliers and requirements are shown in Figure P.1-5.

Open relationships are established and managed with eachsupplier to provide rapid and frequent communication andbuild trusting partnerships. Whenever possible, suppliers areinvolved in process improvement efforts, including innovationand continuous improvement processes.

The most important types of distributors (Figure P.1-5) includecertain day-care facilities and gyms within a 30-mile radius ofthe Houston restaurant that partner with Landmark to deliverHMRs to their clients.

P.1b(4) Key supplier and customer partnersKey partnering relationships are shown in Figure P.1-5 withtwo-way Landmark and supplier/partner requirements.

Requirement Authority Process Measure Goal

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Figure P.1-3 Regulatory Environment

Food safety codesWaste removalZoning codesLicensing

Financial

Employee-relatedreg. (FMLA, ERISA,ADA, OSHA, FLSA,EEOC, etc.)Safety

TDH, HDH, GDH, HACCPEPACityATF, City

IRS

Federal agencies

OSHA

000

All

0

0

0

ViolationsViolationsFindingsApprovals

Findings

Findings orviolations

Incidents

Food handling procedures, inspections, trainingWaste handling proceduresBuilding safety procedures, internal auditsInventory procedures, reporting procedures, workinstructionsAccounting procedures, audit and reportingproceduresHuman resource procedures, periodic internal fileaudits, self reporting

Safety training, inspections, monitoring measures

xviiixviii

Key supplier communication mechanisms include daily Web-based ordering of food stocks and supplies, as well as monthlymeetings with managers at all levels to discuss supplier per-formance and reinforce expectations. In addition, IT systemsenable vendor access to inventory levels within the restaurantsthrough special secure Web access points to manage inventorylevels and freshness.

For the DDSD, distributors have direct contact with end custo-mers to help them select and order the meals to be deliveredfor their pick-up. Communications with these organizationsoccur in person and by phone, fax, and e-mail on a daily basis.

Key customer relationships are described in P.1b(2). Commu-nication mechanisms include Voice of the Customer resources(Figure 3.1-1), such as direct mail, focus groups, surveys,phone discussions, and the Landmark Web site, as well aspersonal meetings for event planning and evaluation.

P.2 Organizational ChallengesP.2a Competitive EnvironmentP.2a(1) Competitive PositionThe restaurant industry has enjoyed 13 consecutive years ofgrowth. The industry sales forecast is for 4.4% growth in 2005and 2006. The Landmark dining area includes over 10,000 eat-ing establishments in Houston and Galveston that could beconsidered competitors; however, Landmark has defined itsspecific market niche as family and business diners desiringfine food and an extraordinary dining experience. As such,Landmark competes most directly with 35 specialty restaurantsin the Houston area and 20 in the Galveston area. Landmarkdoes not have the largest restaurant in either city, but it main-tains the third-highest occupancy of the restaurants in Houstonand the highest in Galveston. Revenues for 2004 were in ex-cess of $5.9M. Of that, $5.5M comes from restaurant and take-

out dining and $400K from catering. Projections for 2005 are inexcess of $6M.

Suppliers/Partners Landmark Requirements Supplier/Partner Requirements

Figure P.1-5 Supplier/Partner Types and Requirements

TexRest Purchase Group—Local food,beverages, and restaurant supplies

Geekhead Information Systems—Webdevelopment, Foodtrak, and IT supportTexas Maintenance Systems—Cleaningand sanitation

Promotional Experts—Imagedevelopment, advertising, and marketingpromotionsStaffing Solutions, Inc.—HR functionsof recruitment and satisfaction surveys

Security Systems, Inc.—On-site securityservicesThe local community college—Collegestudent and staff training programsDay-care and gym delivery partners—Distribution channels

Interaction; fresh food products; cost;availability; on-time, complete deliveries

Knowledge, flexibility, responsiveness,accuracy, timeliness, availability Completion of work, meeting regulatoryrequirements, value, on-time arrival

Flexibility, responsiveness, creativity,broad access

Effective approaches, measurable results,accurate results, flexibility to needs

Flexibility, responsiveness, subtlepresenceSound educational programs, support ofstudentsTimely distribution, satisfied customers,sensitivity to culture

Clear requirements, adherence topolicies, on-time payment, frequentcommunicationClear requirements, frequentcommunication, on-time paymentClear requirements, adherence topolicies, frequent communication, on-time paymentClear requirements, frequentcommunication, timely turn of drafts

Clear requirements, adherence topolicies, frequent communication, on-time paymentClear requirements, adherence topolicies, on-time paymentAvailability, reliability, clearrequirements, frequent communicationGood reputation, on-time delivery,satisfied clients

Customer Group Sales RequirementsBY ORGANIZATIONLocal families 25% Child friendly, value, rapid

service, healthy menuoptions, short wait times,recognition as “regulars”

Local businesses 40% Business conducive, handlegroups, short wait times,recognition as “regulars”

Tourists 35% Fun experience, souvenirsavailable

BY FAMILY STATUS—Excluding business customersFamilies with children 15% Child friendly, value, healthy

menu options, rapid service,short wait times

Couples 15% Short wait times, ambience,not noisy, fine wines

Singles 30% Short wait times, broad wineand beer choices

BY SERVICEDine-in—routine 33% Recognition as “regulars”Dine-in—event 20% Special effortDine-in—1 time 30% Special effortTake-out 10% On time, food temperature,

ease of orderingCatering 7% Menu options, on time, food

temperature, ease of orderingDelivered to distributor 0% On time, food temperature,

ease of ordering

Figure P.1-4 Customer Segments and Requirements

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Catering is offered only in Houston at this time. In Houston,there are 7,000 competitors, but only ten provide full mealselections (versus sandwiches and salads) to the same marketserved by Landmark, i.e., large special occasions. Informationon catering competitors is difficult to obtain, but Landmarkappears to cater more special events than any competitor.

Landmark is the only company in the Houston market provid-ing HMR delivery service.

P.2a(2) Competitive success factorsThe principal factors that determine our success relative tocompetitors are

• name recognition• value for the dollar• fresh menu design and re-engineering• healthy menu items • effective use of facilities• superior service• operational excellence• community involvement

P.2a(3) Comparative dataKey sources of comparative data from within the industryinclude

• the National Restaurant Association (NRA) for industryperformance, human resource performance, and finan-cials. The NRA local chapter provides informal settingsfor sharing data and information.

• customer satisfaction survey results from a vendor• People Report 2004 HR best practices• the Secret Diners Association third-party comparative

service• Employee Dining Reports resulting from visits to other

restaurants• the informal consortium of restaurants in Texas (led by

Owen Dudley) that share results and best practices• various Web sites specific to the industry

Key sources of comparative data from outside the industryinclude

• David & Bradley for financial comparisons • Staffing Solutions, Inc., for employee satisfaction results• published literature about and visits to Baldrige Award

recipients • general business and economic publications

P.2b Strategic ChallengesThe greatest operational, business, and human resource strate-gic challenges include

1. continued expansion of products and services2. an increase in the number of competitors with a projected

growth rate of 5.2%3. the availability of skilled and motivated employees to

match the expected growth of the organization

4. consumers with increased disposable income and a needfor convenience and socialization

5. sophistication of the American palate, reflected in a desirefor more frequent restaurant dining and more frequentmenu changes

6. changing customer age demographics affecting prefer-ences and buying behaviors

7. heightened interest in food safety, nutrition (e.g., low-carband low-fat diets), and health issues, such as obesity

8. intensified government impact through regulatory man-dates, thereby increasing costs

Challenges to the sustainability of Landmark enterprises in-clude numbers 3, 5, 7, and 8 above.

P.2c Performance Improvement SystemThe overall approach to maintaining an organizational focuson performance improvement, including organizational learn-ing, is through strategic planning and systematic evaluationand improvement methods. The annual strategic planningprocess described in 2.1a is designed to provide a regular eval-uation of company operations and directions, with opportuni-ties to make improvements to actions, activities, and strategies.A Balanced Scorecard (Scorecard) is used to deploy goals andmonitor progress on a weekly, monthly, and annual basis.

Overall approaches to organizational learning and sharing arethrough systematic communication activities and training.Cross-training is used extensively for job growth and, in com-bination with rotational assignments, to train employees onsuccession paths. Training teams work with training providersto develop customized training that includes organizationalknowledge.

Knowledge and best practices are shared throughout the com-pany using a variety of methods, including communication atmeetings, employee exchanges, information posted on bulletinboards, and participation on cross-restaurant and cross-depart-ment teams, as well as coaching, mentoring, and training. Also,an organizational knowledge database is maintained throughFoodtrak, a software system used to gather and communicateinformation about the company. Using this system, informa-tion is collected on functions performed throughout the com-pany, key changes to systems, and key learnings from projects.

Regular evaluation of the effectiveness of processes and ap-proaches occurs through monitoring measures (described inCategory 4), evaluating and analyzing data during reviews andsubsequent sharing of review findings with employees (Item4.1b), and conducting an annual Baldrige self-assessmentactivity. When opportunities for improvement are identified,they are addressed through benchmarking other organizations,improvement through action plans, and improvement throughprocess improvement teams, using the DINERS process im-provement approach (Figure 6.1-3).

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1.1 Senior Leadership1.1a Vision and Values1.1a(1) Set and deploy Vision and ValuesThe Senior Leadership Team of Landmark consists of thePresident/CEO, the CFO, the Restaurant Director, the CateringDirector, the Business Excellence (BE) Director, the ExecutiveChefs, the Front-of-House (FoH) managers for both restaurants,and the Advisory Board. With the addition of the AdvisoryBoard in 1990, Landmark formalized its Vision, Mission, andValues, as described in P.1a(2) in the Organizational Profile.This initiative was led by the President/CEO, using a consensusprocess, and agreed upon by other members of the SeniorLeadership Team. As described in Item 2.1, the Vision, Mission,and Values are reviewed annually during the Strategic PlanningProcess and are incorporated into the Strategy Matrix (Figure2.2-3). While the Vision, Mission, and Values remain consis-tent to guide and sustain the organization, two additions havebeen made to the Values. In 1995, in response to an emergingconsumer trend toward healthier lifestyles, Promotion of aHealthy Lifestyle was added as a Value. In addition, while ethi-cal conduct always has been a family value, Ethics, Honesty,and Integrity was added to the organization’s Values in 1998.

Senior leaders deploy the Vision, Mission, and Values in avariety of ways, including the Landmark CommunicationProcess shown in Figure 5.1-1 and the Strategic PlanningProcess described in Item 2.1. Landmark’s Leadership Team iscomposed of all members of the Senior Leadership Team withthe exception of the Advisory Board. In 2001, the LeadershipTeam developed a Strategy Matrix (Figures 2.2-3 and 2.2-4) toprovide alignment among employees, key suppliers, partners,and customers in the deployment of the organization’s Vision,Mission, and Values. The Strategy Matrix links the Vision,Mission, Values, competitive success factors (P.2a[2]), strategicchallenges (P.2.b), objectives, action plans, and key measures.It is reviewed with all employees, and their Individual Reviewand Development Plans (IRDPs) are linked to it. As a result,every employee understands the Vision, Mission, and Values ofthe organization and knows how he or she contributes to ensur-ing they are sustained within the organization.

Specific portions of this Strategy Matrix also are shared withour key suppliers and partners, some of whom participate in itsdevelopment. Recognizing the strategic challenge of an increas-ing number of competitors, Landmark has increasingly soughtto enhance its relationships with suppliers and partners to pro-vide a competitive advantage. Meetings with all prospectivepartners and suppliers begin with a detailed one-on-one discus-sion of each organization’s values, expectations, and strategicdirection. It is made clear that mutual support of each other’sdirections and values is considered key to the success of thepartnership, as well as a requirement for doing business withLandmark.

Landmark’s Vision, Mission, and Values are printed on itsmenus and posted on its Web site for customers to read. While

this originally was designed primarily as a mechanism forcommunicating with all customers and potential customers, italso has assisted the organization in its efforts with historicpreservation. In 1996, a prominent Houston area businessCEO noticed the efforts Landmark was making in the area ofhistoric preservation and was impressed that this was part ofthe Mission of the organization. This CEO worked with theLandmark Leadership Team to establish additional funding forthe HMHPA, as described in 1.2c.

Senior leaders’ personal actions reflect a commitment to orga-nizational Values through communication, reinforcement, androle modeling of Values and expectations. Decisions that aremade by senior leaders and employees on a day-to-day basisare guided by the organization’s Vision and Values. For exam-ple, even with the rising cost of health care and the industrynorm of not providing health care to part-time employees,Landmark has made a commitment to employees to continueto provide discounted health care options to all part-time em-ployees to support the organization’s Value of Family Culturewith Teamwork.

To further reinforce Values and expectations and to promotecommunication, members of the Leadership Team each spendat least 10% to 20% of their time working in the restaurants orcatering service every week. They work alongside employeesin a variety of positions (e.g., server, busser, prep chef) in orderto get to know the employees, to act as role models, and tolearn from the employees’ point of view. As noted in 5.1c(2),all potential employees are provided with a one-page outlinecalled the “Prospective Employee Guide,” which lists theValues and high-level expectations of the company. Thisenables appropriate potential employees (to some extent) toself-select. Upon hiring, all employees (full-time, part-time,and on-call) receive a half-day orientation led by a member ofthe Senior Leadership Team. At this orientation, employees’responsibilities related to Landmark’s Values and expectationsare discussed in depth. Values are prominently posted in thereception area and work locations, as well as printed on therestaurant menus. Additionally, at the monthly all-employeemeetings, an employee leads a discussion of one or more Valuesand how to better deploy them throughout the organization.

1.1a(2) Foster and require legal and ethical behaviorLandmark recently added Ethics, Honesty, and Integrity to itsValues, and they are a non-negotiable requirement of employ-ment. Senior leaders use the Communication Process shown inFigure 5.1-1, policies and procedures, and role modeling on anongoing basis to promote an environment that fosters and re-quires legal and ethical behavior. During orientation and on anannual basis, employees receive ethics training, which includesrole playing of sensitive issues, such as the safeguarding ofcustomer credit card information. All employees are requiredto sign the Landmark ethics policy at the end of training. It ismade clear to all employees that any violation of the ethicspolicy or any failure to report a violation of the policy by

1

1: Leadership

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another employee is grounds for immediate termination. Also,all suppliers and partners are provided with a copy of theethics policy and asked to report any perceived violations. TheSenior Leadership Team investigates all reports of unethicalbehavior by suppliers and partners. Ethical violations aregrounds for termination of the supplier relationship; in 1998,Landmark terminated a contract with a meat supplier whofalsified Certificate of Analysis documents.

1.1a(3) Create a sustainable organizationThe Harrisburg Station has been in operation since 1945, andas operators of a family-owned small business, the organiza-tion’s senior leaders have learned from past experience and havedeveloped strategies to ensure the organization will continue togrow and prosper. Sustainability is addressed through a three-tiered approach. First, senior leaders focus the organization ona strong Vision and direction to provide all employees with abasis for decisions. Second, a strong process orientation isemphasized by the organization to reinforce standardized ap-proaches and consistent results. Third, a sense of accountabilityfor performance is built into the organization through themeasurement system and review structure described in Item4.1. This also reinforces the environment of performanceimprovement.

Senior leaders use the Strategic Planning Process (2.1a), theStrategy Matrix (Figures 2.2-3 and 2.2-4), and the StrategyDeployment Process (2.2a) to ensure the organization’s Vision,Mission, Values, competitive success factors (P.2a[2]), strategicchallenges (P.2.b), action plans, key measures, and goals arealigned and enable the organization to accomplish its strategicobjectives. In addition, real-time and formal executive reviews(Figure 4.1-2) of key performance indicators enable seniorleaders to make timely decisions in response to unexpected orunanticipated business conditions.

Innovative approaches to improving the organization also areencouraged. Ideas are discussed at the monthly all-employeemeetings, daily line-ups, and monthly team leader meetings.For example, one employee asked if she could demonstratesome small magic tricks at tableside to entertain children. Theemployees discussed the proposal and agreed that this andother ideas for surprising and delighting the customer shouldbe approved, provided they were presented beforehand anddeemed appropriate not only for a particular customer but alsofor surrounding customers. As a result, as a part of the hiringprocess, new employees are now asked about any unique orspecial talents they may bring.

Employees are encouraged to identify improvements in allareas. The Value of Family Culture with Teamwork creates anatmosphere where all improvement suggestions are welcomed.Recognition is given at daily line-ups and all-employee meet-ings to employees who made suggestions, and an update isprovided on the status of the suggestions. The cross-trainingprogram and Landmark’s policy of having employees work oneday per month in other areas helps “out of the box” thinking.

Yet another vehicle to encourage innovation is the company’scommitment to the Baldrige Criteria for Performance

Excellence. A member of the Senior Leadership Team servesas an Examiner for the Baldrige National Quality AwardProgram, and two others are Examiners for LSQA. This servesto not only drive improvement within the organization but alsobrings new and innovative ideas from other industries.

Employee development and professional growth are key com-ponents of Landmark’s Mission and Values. Individual and or-ganizational learning are accomplished in a number of ways.By scheduling employees to work once a month in other areas,Landmark not only fosters their appreciation of the work inthese areas but also enhances communication among workareas. As part of Landmark’s commitment to employee devel-opment, all employees who are interested in a career in therestaurant/hospitality industry are encouraged and providedwith assistance to continue their education in that field.

Each senior leader personally participates in succession plan-ning and the development of future organizational leaders. Thisis accomplished by knowing and working with employees toidentify talent, establishing IRDPs for formal development ofleadership skills, coaching and mentoring high-potential futureleaders, and discussing future leadership issues during monthlyexecutive reviews.

1.1b Communication and Organizational Performance1.1b(1) Senior Leaders communicateAs described in 1.1a(2), senior leaders use the CommunicationProcess (Figure 5.1-1), policies and procedures, and role mod-eling to encourage consistent and ongoing two-way commu-nication. The Communication Process provides a systematicapproach to discussion of key information throughout theorganization. This helps ensure the various communicationswithin the organization are clearly understood by all employ-ees. Also, during the time senior leaders work in the restau-rants and catering service, they reinforce key messages andreceive direct feedback from employees.

As shown in Figure 4.1-2, a number of regularly scheduledmeetings provide a vehicle to communicate and further rein-force organizational Values, directions, and performance ex-pectations as well as to provide recognition. A culture of opencommunications has developed a strong sense of trust, andmeetings and cross-training opportunities are designed toencourage frank, two-way communication at all levels of theorganization. The daily line-up meetings in particular aredesigned to be open and frank discussions about events androot causes of issues. When senior leaders are not working inthe restaurants, the organization’s open door policy provides anadditional means for employees to voice opinions or concerns.

Employee empowerment and motivation also are accomplishedthrough open and honest communication and by rewarding andrecognizing employee contributions to the organization. Worksystems (5.1a) are designed to enable decision making at thelowest possible level in the organization. Behavior and perform-ance expectations have been clearly established (3.1a[2] and5.1b), and, through coaching and role modeling, senior leadersare able to take an active role in employee reward and recogni-tion. The all-employee meetings are the primary forum for

33

recognition; however, informal on-the-spot recognition also re-inforces high performance and a customer and business focus.

To promote empowerment, Landmark utilizes a team leaderapproach to process management. Team leaders are selectedwith input from team members to manage processes and func-tions. Under the guidance of the team leader, teams developtheir own daily and weekly work schedules. This helps ensurethe schedule meets the needs of both the company and the em-ployee. Teams adjust work schedules to accommodate workloadchanges, thus controlling costs while maintaining a high serv-ice level.

Additionally, to help ensure all customers have a pleasant din-ing experience, all employees understand that they “own” theresponsibility for their customers’ satisfaction. As part of theCustomer First training, employees are trained to identifypotential customer dissatisfiers through the Voices systemdescribed in Item 3.1 and to take action before the customercomplains. Whenever a problem or complaint does arise, theemployee who identifies it is responsible for logging it into theService Recovery Process (3.2a[3]) system of Foodtrak to en-able identification of systemic issues.

1.1b(2) Senior Leaders create a focus on actionFigure 4.1-2 shows the series of reviews regularly used to eval-uate organizational performance. At these reviews, performanceis evaluated against the Scorecard of key measures describedin 4.1a(1). The Scorecard is linked to and derived from the stra-tegic plan and Strategy Matrix (Figures 2.1-3 and 2.1-4). Thiscreates a focus on action to accomplish the organization’s ob-jectives, improve performance, and attain its Vision. The Score-card includes operating data, as well as action plan progress,and senior leaders review the information on a daily basis. TheScorecard is reviewed at weekly staff meetings and monthlyexecutive reviews, and as external and internal positionschange, the Matrix and Scorecard are changed to meet thesedirections. At the monthly reviews, action plans are developedfor any areas that are not meeting performance expectations.

The DINERS Improvement Process provides another methodfor senior leaders to focus the organization on performanceimprovement. DINERS Teams review each key organizationalprocess annually to identify opportunities to improve processesand the measurement system. DINERS Teams are sponsoredand reviewed by senior leaders.

Because reviews focus on Scorecard performance, which islinked to and derived from the Strategy Matrix, senior leadershave created a balance of value for customers and other stake-holders in the organizational performance expectations. Short-and longer-term action plans, related measures, and expectedresults are analyzed and correlated to ensure the alignment ofpriorities and resources. The Scorecard and Strategy Matrixalso are used to link and align all employee IRDPs; therefore,all employees are aware of their roles in addressing organiza-tional priorities. Key suppliers and partners participate in theannual strategic planning session and attend monthly executivereviews, thus reinforcing their alignment with and support ofthese priorities.

1.2 Governance and Social Responsibilities 1.2a Organizational Governance1.2a(1) Key factors in governance systemLandmark is a closely held S corporation, with stock owner-ship held by the Dudley and Fendly family members. In orderto obtain guidance and feedback regarding the organization’sleadership and governance, Landmark established an externalAdvisory Board, which is made up of some of the most promi-nent business leaders in the community. Members of the Advi-sory Board serve for three-year overlapping terms, with a thirdof the board rotating off each year. This allows continuity to bemaintained and encourages new, potentially innovative ideas.The board members are selected by using two criteria. First,they must be comfortable with and supportive of the organiza-tion’s Value system. Prospective members are interviewed bythe entire Senior Leadership Team, and the discussion of Land-mark’s Values is a major portion of that interview.

Second, members are chosen who possess skill sets that com-plement the existing Senior Leadership Team. For example, arecent addition to the board is the head of one of Houston’smost prestigious law firms that specializes in corporate com-pliance and the Sarbanes-Oxley Act of 2002. This board ac-tively participates in leadership meetings and strategic plan-ning activities, and it provides objective feedback to the SeniorLeadership Team regarding both style and actions. Upon selec-tion, Advisory Board members are required to sign nondisclo-sure and noncompete agreements with the organization. Thisprocess ensures that Landmark’s senior leaders are not puttingthe organization at risk by discussing proprietary informationwith the Advisory Board.

Transparency in operations is ensured through sharing theStrategic Planning Process, Strategy Matrix (Figures 2.2-3 and2.2-4), and key performance indicators with Advisory Boardmembers and employees. Results of financial audits also areshared with the board.

Despite the fact that the organization is family-owned, in orderto promote long-term and ethical thinking, Landmark uses ex-ternal independent auditors to conduct annual financial auditsof the organization. Management accountability for organiza-tion actions is linked to the fiscal integrity of the organizationand therefore addressed by the fiscal audit. Although not re-quired, it was suggested by our recent addition to the AdvisoryBoard that the organization implement the compliance elementsof the Sarbanes-Oxley Act to further build into the companyan accountability mind-set. Landmark is in the process of im-plementing that process.

Additionally, both as an organizational learning opportunityand a vehicle to promote fiscal and management accountabilityand transparency in operations, restaurant FoH managers per-form reviews at each other’s restaurants on a monthly basis.This includes a checklist-based walkthrough to validate safety,Occupational Safety and Health Administration (OSHA) com-pliance, cleanliness, and overall appearance. The managersthen meet to review the profit and loss statements. This processpromotes the sharing of ideas and best practices between thefacilities. Monthly financial numbers are rolled up from the

44

departments, reviewed by the CFO, and then discussed at theexecutive review meetings.

1.2a(2) Senior leader performance evaluationEmployee Development is a Landmark Value that senior lead-ers strongly believe applies to them as well. They work to con-tinually improve their performance, both as a group and as in-dividuals. In addition to tracking progress on the organization’sstrategic objectives, senior leaders track the completion of em-ployees’ IRDPs as a measure of their effectiveness in develop-ing employees. All managers and executives of Landmark re-ceive 360-degree reviews (feedback from subordinates, peers,and superiors). This includes the President/CEO, who receivesinput from subordinates, the Board of Directors, and the Advi-sory Board. The Advisory Board is well suited to provide thisfeedback since they participate in the monthly executive re-view, and several members are leaders of their own businesses.Results of feedback to all senior leaders are discussed openlyat a special meeting prior to the strategic planning session inorder to identify common themes. For example, in response toresults from last year’s employee survey, a consultant was hiredto improve the skills of the Senior Leadership Team as a wholein the area of giving constructive feedback.

Since 1999, Landmark has contracted with a professor fromthe business department of a local university to attend boardmeetings on a quarterly basis. She provides guidance and feed-back to both Landmark’s senior leaders and the AdvisoryBoard on their performance.

1.2b Legal and Ethical Behavior1.2b(1) Adverse impacts on societyAs noted in Figure P.1-3, Landmark is subject to several regu-latory and legal requirements. Landmark receives its licensesfrom the Houston and Galveston Health and Human Services(HHS) departments. The goal in this area, which has beenachieved for the past seven years, is to receive no permit viola-tions—serious, substantial, or general. Promotion of a HealthyLifestyle, another Landmark Value, is taken very seriously.Landmark worked with the Texas Department of Health on thedevelopment of the Indoor Air Quality Initiative. AlthoughHouston is one of the last major cities not to have a smokingordinance, the CFO is working closely with our local council-woman to help develop and enact one. In order to provide asafe air environment for our customers and employees and pre-pare for the change in legislation, Landmark restaurants be-came nonsmoking facilities in 2003, with no adverse impacton the business.

To prevent the spread of infectious diseases, all new food serv-ice employees receive training on safe food handling techniquesprior to starting work. This training is repeated annually duringthe month of September, which is National Food Safety Edu-cation Month. Managers at both facilities are certified foodsafety trainers. As noted in Figure P.1-3, Landmark’s goals forits key compliance measures are no incidents or violations.Additionally, all managers, including shift managers, havecompleted the Food Service Managers Certification programoffered by HHS, and the Executive Chefs at both restaurants

have successfully completed the requirements for CertifiedExecutive Chef from a national culinary association. A largepart of these certifications addresses sanitation and regulatoryrequirements.

Landmark seeks to anticipate and prepare for public concernsat multiple levels. At the local level, senior leaders are mem-bers of the Metropolitan Houston Restaurant Association, theGalveston Coastal Restaurant Association, and the NRA. TheCEO is a member of the local Chamber of Commerce, and therestaurant managers serve on the HHS advisory boards for thecities of Houston and Galveston. From these sources, Land-mark obtains information on trends and future directions of theindustry, as well as actual and anticipated public response tocurrent and planned operations. This information, as well aspotential concerns, are key inputs to the strategic plan and helpthe organization proactively address the issues. Other sourcesof information include the Advisory Board and customer andcommunity surveys.

For example, as noted in P.2b, intensified government impactthrough regulatory mandates is one of the company’s strategicchallenges. At the 1999 strategic planning session, Landmarkidentified the potential impact of Hazard Analysis and CriticalControl Point (HACCP), an approach developed by the U.S.Food and Drug Administration to ensure the safety of foodfrom its raw state through processing and consumption. At thatplanning session, it was decided to implement key elements ofthe approach in anticipation of future regulations and as avehicle to further ensure the safety of customers.

Key processes, measures, and goals for addressing regulatoryissues and risks associated with products, services, and opera-tions are shown in Figure P.1-3. Processes for addressing spe-cific risks are incorporated into key value creation and supportprocesses to ensure compliance and a proactive stance.

1.2b(2) Promote and ensure ethical behaviorAs noted in 1.1a(2), ethical behavior is a Value and a conditionof employment. Many concerns have surfaced in the publicabout identity theft and credit card misuse by restaurant employ-ees. All employees know that if there is a question regardingethical behavior, they are encouraged to raise it immediately.On a more structured basis, all employees receive annual ethicstraining, which includes role playing of sensitive issues. It iscommunicated clearly during training that not only is ethicalbehavior important, but so is the perception of ethical behavior.

Ethical behavior is measured through annual surveys of cus-tomers, employees, and partners/suppliers. Specific questionsregarding ethical behavior are asked on each of these surveys.Informal surveys and walk-around questions provide informalinformation, and the Advisory Board provides real-time feed-back to senior leaders regarding their ethical behavior. On amore formal basis, that feedback is a part of the annual 360-Degree Feedback Process. Additional measures of ethical be-havior include the number of code of conduct violations, em-ployment termination due to ethical issues, and the amount ofshrinkage of inventory due to theft.

5

As with regulatory compliance issues, key processes for ad-dressing specific ethical behavior are incorporated into keyvalue creation and support processes as much as possible toensure compliance and accuracy in reporting. Training pro-vides a significant impact on ethical awareness, and the open-ness of key processes discourages unethical behavior.

Senior leaders and/or the Advisory Board address possiblebreaches of ethical behavior. Following all legal requirements,investigations are conducted, appropriate action is taken, andunethical behavior is not tolerated.

1.2c Support of Key CommunitiesRecognizing that Landmark is a small business, two keycommunities have been selected to support: Galveston andHouston. Landmark also has selected five areas on which tofocus (Figure 1.2-1) based on the capabilities of the organiza-tion, its Values, and the needs of the communities. These areasoriginally were developed as a part of strategic planning andare reviewed annually to ensure they remain appropriate.

To support these community areas, Landmark senior leadersand employees participate in

• the annual Houston Restaurant Week activities• the annual Galveston Food Sharing Festival• Thanksgiving and Christmas meals for the homeless• the Houston Food Fund • employment of developmentally disabled persons• Chef’s Day at a local community college• providing nutritional information and heart-healthy infor-

mation on menus • Houston and Galveston historic preservation societies

In addition to volunteering side-by-side with employees, seniorleaders also serve on the boards of several community agen-cies, including the Houston and Galveston Food Funds,historic preservation associations, and area Chambers ofCommerce.

5

Key Support Areas Value FigureSupport the less fortunate Community Enrichment 7.6-6 and 7.6-7Support those with disabilities Community Enrichment,

Employee Development 7.6-8Support employee growth in the hospitality industry Employee Development 7.6-9Promote healthy lifestyles Promotion of a Healthy

Lifestyle 7.6-7Maintain and support the history of our communities Community Enrichment, 7.6-3

Historic Preservation

Figure 1.2-1 Key Community Support Areas

2.1 Strategy Development 2.1a Strategy Development Process2.1a(1) Strategic PlanningKey participants involved in the Strategic Planning Process(Figure 2.1-1) include the Board of Directors and the SeniorLeadership Team. Key suppliers attend part of the first day’ssession to advise Landmark of major trends in their respectiveareas. Guests and/or speakers are invited to present specificinformation as needed.

The annual Strategic Planning Process was introduced by SamDudley in 1990. During earlier strategic planning sessions, aSWOT (Strengths, Weaknesses, Opportunities, Threats) analy-sis was conducted, and answers were generated for the follow-ing four questions:

• Where are we now?• Where do we want to be?• How do we get there?• What do we do?

The Strategic Planning Process has evolved over the years toinclude the key steps shown in Figure 2.1-1, but it maintains afocus on the four general questions.

The Strategic Planning Process is evaluated and refined as partof the annual strategic planning retreat. For example, the Strat-egy Matrix (Figures 2.2-3 and 2.2-4) was introduced in 2001

to align the company’s Vision, Mission, and Values with itsstrategic objectives and short- and longer-term action plans andgoals. After Debby Dudley became an LSQA Examiner, keysuccess factors and stakeholders were added. The Matrix nowis structured so that anyone viewing it can easily align specificgoals and action plans to the company’s Vision, Mission, andValues. The latest improvement to the Strategy Matrix has beenthe inclusion of the Approach-Deployment-Learning-Integration(ADLI) concept and how it relates to the strategic plan.

Prior to the annual three-day strategic planning retreat, mem-bers of the Leadership Team gather and analyze the informationfor which they are responsible (see 2.1a[2] and Figure 2.1-2).This information comes from throughout the organization toensure senior leaders have sufficient knowledge to make deci-sions. The data are analyzed as described in 4.1b(1) to providean understanding of trends, correlations, and root causes aspart of a SWOTT (Strengths, Weaknesses, Opportunities,Threats, Trends) analysis. In addition, each member of theLeadership Team is a Baldrige Category Champion and usesthe Baldrige Criteria for Performance Excellence as an assess-ment tool and to identify opportunities for improvement.

The first day of the retreat is devoted to determining the pres-ent status of the organization in relation to its external and in-ternal environments by reviewing results of analyses by eachof the data owners. As part of the review, each member of theLeadership Team answers the following questions:

• How did Landmark do last year compared to its goals andbenchmarks?

• If targets were achieved, should they be set higher?• If targets were not achieved, why not?• What can Landmark do to improve?

A SWOTT analysis is performed to identify relevant businessopportunities. In prior years, several opportunities related tothe company’s previous strategic objective of continued expan-sion were identified and have resulted in new services for thecompany. These include Harrisburg Station Catering and take-out meals, as well as the Dinner Delivery Service that providesHMRs, which was initiated in fourth quarter 2004.

On the second and third days of the retreat, the organization’sVision, Mission, and Values, as well as its strategic directionfor the next five years, are reviewed and revised if necessary.Next year’s action plans, key measures, and goals are set. Bythe end of day three, the Strategy Matrix (Figures 2.2-3 and2.2-4) is completed.

The Strategic Planning Process is designed to help identifyblind spots by including various participants in the process—suppliers, partners, Advisory Board members, and communitymembers, when appropriate. This ensures senior leaders gainthe perspective of different viewpoints and also gather infor-mation from areas of greatest significance to Landmark’ssuccess. Another method that is used to identify blind spots isthe inclusion of input from multiple sources in various areas.

6

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Identify Key Strengthsand Key Competencies

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Strategy

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Where are wenow?

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How do weget there?

What do we do?

Figure 2.1-1 Strategic Planning Process

7

This provides significant information from areas that are notnormally reviewed by senior leaders.

Landmark’s short-term planning horizon is one year, and itslonger-term horizon is five years. While the industry standardfor longer-term planning is three years, Landmark’s work withhistoric preservation requires a minimum five-year planningwindow. These time horizons are included in the StrategyMatrix.

Landmark incorporates knowledge of its past performance andkey factors into the assessment of its ability to execute thestrategic plan. In addition, as presented in Figure 2.2-4, interimmilestones have been established between the short- andlonger-term goals to ensure the organization is on track toaccomplish longer-term goals.

2.1a(2) Key factors addressed in planningEach member of the Leadership Team is responsible for one ormore key factors, as shown in Figure 2.1-2. Each member ofthe Board of Directors and the Leadership Team is responsiblefor collecting and analyzing data throughout the year and pre-senting them at the annual strategic planning session and atmonthly meetings. For example, in 1999, Sam Dudley readabout a restaurant that was able to achieve an occupancy rateof more than 90 percent by analyzing the size of dining partiesand reconfiguring its table setup to correspond. Analysis ofdata collected from Foodtrak showed that party sizes differed

for lunch and dinner at both restaurants: parties of four, six,and eight for both lunch and dinner were more prevalent atHarrisburg Station, while parties of four for lunch and partiesof either two or four for dinner were more prevalent at TexasLightkeeper. Originally, tables at each restaurant seated fivepeople. In 2000, funds were allocated to purchase new tablesthat could be configured for parties of two, four, or six at bothrestaurants. As a result of the data collection and analysis,Landmark now enjoys an occupancy rate four percentagepoints above the national average.

To address the organization’s ability to execute the strategicplan, leaders assign ownership and allocate required resourcesfor every approved action plan. Each action plan and strategyis assigned to one of the senior leaders as a champion to pro-vide resources and review the progress of key factors in thestrategic plan execution.

If there are changes in any of these key factors during the yearand analysis indicates a negative trend, the person responsiblefor that factor will make a presentation to the Leadership Teamand Board of Directors at scheduled executive review meet-ings. Any potential midyear changes in response to businessclimate, market conditions, customers’ requirements, or emer-gencies are analyzed in the same manner as in the annualStrategic Planning Process. This process ensures continuity inLandmark’s approach to sustaining the organization for thelong term.

Key Factor Who Data SourceStrengths,Weaknesses,Opportunities,ThreatsCustomer andMarket Needs

CompetitiveEnvironmentTechnology

HR Needs

Financial,Other RisksSocietal/ Regulatory/Ethical RisksSustainabilityand BusinessContinuityChanges inEconomyUniqueFactors

BE Director, DebbyDudley

Sam Dudley

CEO, Advisory Board

Sam Dudley

BE Director, DebbyDudleyCFO

CEO

Debby Dudley

CEO

All

Baldrige self-assessment, Foodtrak reports, industry comparative data, informalconsortium, general news and publications, monthly board meetings, information on Baldrige Award Recipients

Foodtrak reports, industry publications, customer satisfaction surveys, industry assoc.memberships, industry Web sites, Employee Dining Reports, informal restaurantconsortium, Secret Diners Association, Chambers of Commerce, Advisory Board Same as above, Metropolitan Houston Business Group

Industry MIS Executive Study Group, public literature, vendor literature, businessmagazines, informal consortiumEmployee satisfaction report, industry comparative data, People Report 2004,Foodtrak reportsAccounting system, David & Bradley reports, informal restaurant consortium, NRAcomparative informationMetropolitan Houston & Galveston Coastal Restaurant Associations, industryreports, Chambers of Commerce, Department of Health inspection and audit reports,HHS advisory boards, industry Web sitesInformation on Baldrige Award recipients, industry and business reports, technologyvendor publications, business continuity workshops

Metropolitan Houston Business Group, business publications, Federal Reserve BeigeBookPartnerships for Dinner Delivery Service—Chambers of Commerce, phone directoryCommunication mechanisms—all previously listed sources (e.g., in P.1b[4] and3.1a[3])

Figure 2.1-2 Annual Strategic Planning Responsibilities

8

2.1b Strategic Objectives2.1b(1) Key strategic objectivesKey strategic objectives and the timetable for accomplishingthem are presented in the Strategy Matrix (Figures 2.2-3 and2.2-4). Goals have been established and are presented in Fig-ure 2.2-4. The most important 2005 goals are (1) maintaining a15% growth rate per year in new service results through theestablishment of a local community college on-campus restau-rant and an increase in catering, take-out, and Dinner DeliveryService income; (2) increasing the customer satisfaction rate to96.5% through a variety of actions, including the use of tech-nology to provide better customer service; and (3) increasingthe occupancy rate to 85% through better use of facilities.

2.1b(2) Strategic Objectives Address ChallengesThe Strategy Matrix (Figures 2.2-3 and 2.2-4) illustrates howLandmark’s strategic objectives and short- and longer-termaction plans are related to its Vision, Mission, Values, key suc-cess factors, stakeholders, and strategic challenges. Associatedwith each key success factor is one or more of Landmark’sValues, stakeholders, strategic challenges, strategic objectives,longer-term action plans, short-term (2005) action plans, keymeasures, and goals. This ensures alignment to the organiza-tion’s key challenges and balances short- and longer-termopportunities and stakeholder needs.

Landmark uses a Scorecard that is derived from the key meas-ures in the Strategy Matrix. This Scorecard, which is updatedin real time by Foodtrak, is reviewed at monthly executivereview meetings, where the external environment and internalperformance are discussed and the Strategy Matrix is updatedas needed.

2.2 Strategy Deployment2.2a Action Plan Development and Deployment2.2a(1) Develop and deploy action plansThe Leadership Team ensures that each key success factor isaligned with key stakeholders, related strategic challenges, andone or more organizational Values during the strategic plan-ning annual retreat. One or more strategic objectives, with re-lated performance measures, are provided for each key successfactor. Action plans are then developed by identifying the spe-cific actions/tasks that are required for the accomplishment ofa specific strategy. These specific actions identify who, what,when, and how a specific action/task will be accomplished.Action plans are reviewed and approved during the StrategicPlanning Process.

Action plans are deployed throughout the organization and tosuppliers and partners through the Communication Process(Figure 5.1-1). In addition, Landmark uses a cascaded deploy-ment approach for specific short-term action plans. In this ap-proach, departments create action plans to support organiza-tional direction and then employees create individual actionplans to support their departments. These individual actionplans are incorporated into employees’ IRDPs to ensure a con-sistent focus on the organization’s overall strategies.

While the Leadership Team develops longer-term actionplans, various members of the team are responsible for the

development and deployment of short-term plans, as well asdeployment to all employees throughout the organization.Short-term plans are aligned with given results. Figure 2.2-1shows the individual who owns or is responsible for each Itemin the Results Category.

In many instances, action plans are developed and deployed byaligning the actions of several people. Sam Dudley previouslyhad correlated Overall Customer Satisfaction results (Figure7.2-1) with employees’ knowledge and use of the Foodtrak sys-tem. He used the Communication Process (Figure 5.1-1) andworked closely with the BE Director to ensure all employeeswere able to use the Foodtrak system and to understand howbetter use of the system relates to customer satisfaction.Knowledge of the Foodtrak system is now included in allemployee IRDPs.

Key changes that result from action plans are reviewed asdescribed in 1.1b(2). In addition, Landmark uses the DINERSImprovement Process (6.1a[6]) to systematize processes andensure that key changes are sustained. The results owner isresponsible for entering the information into the Foodtrakknowledge base and uses the Communication Process to informemployees of changes. The BE Director makes appropriatemodifications to training as needed.

An example of how Landmark has been able to sustain actionplan results relates to its strategy for wage reserves. In 1999,the CFO read an article about a world-class company that hadnext year’s salaries and wages in reserve. He presented thisidea to the Leadership Team, which felt this strategy wouldalign with the company’s Values of Family Culture with Team-work and Community Enrichment. However, since Landmarkis a relatively small company, the Board of Directors decidedthat a reserve of three months’ salaries and wages was morerealistic to ensure meeting payroll obligations during an eco-nomic decline. As a result, a portion of net profits was addedto this reserve fund over time. The value of this action was re-vealed after the disaster of September 11, 2001, and the corre-sponding economic slowdown. Landmark was able to keepemployees at full wages until customer confidence was re-gained. The funding of this reserve account is at the forefrontof the company’s financial allocations.

2.2a(2) Establish and deploy modified action plansModified action plans that are developed in response to changesin business climate, market conditions, customers’ require-ments, or emergencies are developed as described in 2.1a(2)and 2.2a(1). If circumstances dictate a need to modify,

Who Results CategorySam Dudley Customer-FocusedExecutive Chefs/ Product and Service OutcomesManagersCFO Financial and MarketBE Director Human ResourceSam Dudley Organizational EffectivenessCEO and D. Dudley Leadership, Social Responsibility

Figure 2.2-1 Results Ownership

9

discontinue, or create new action plans, they are revised in theStrategy Matrix, and, as needed, appropriate measures areadded to the Scorecard to track performance to the plan. Em-ployees are notified of changes through line-up meetings orall-employee meetings, and supervisors assist employees inmodifying IRDPs, if appropriate.

2.2a(3) Key short- and longer-term action plans Key short- and longer-term action plans are included in theStrategy Matrix (Figure 2.2-3).

Key changes in products, services, customers and markets for2005 include

• the use of community college students to conduct pre-audits to help us prepare for state and local audits

• the opening of an on-campus restaurant as part of ourtraining program at the community college

• development of the Dinner Delivery Service HMR program• expansion of catering, take-out, and semiprivate banquet

room services• better use of parking facilities at both locations• creation of an open kitchen design at the Texas Lightkeeper• the opening of gift shops at both restaurants

2.2a(4) Key human resource plansStrategic Objective #4, to be the employer of choice, relatesspecifically to Landmark’s human resources, although a humanresource component is incorporated into all strategic objectives.Figure 2.2-2 illustrates most of our short-term action plans andrelated human resource plans. The relationship of short-termaction plans to longer-term action plans and strategic objec-tives is illustrated in the Strategy Matrix (Figure 2.2-3).

2.2a(5) Key performance measuresLandmark uses the Strategy Matrix (Figures 2.2-3 and 2.2-4)to align key performance measures with short- and longer-term action plans, strategic objectives, strategic challenges,stakeholders, key success factors, and its Vision, Mission andValues. Progress on action plans is evaluated at weekly andmonthly executive review meetings through the review of relat-ed measures and activities under way. During these meetings,the Leadership Team measures progress, as well as budgetvariances where applicable, against the annual goals listed inthe Strategy Matrix. If it appears there is little to no progresson an action plan, a root cause analysis is conducted, and goalsand budgets are adjusted as needed.

The use of key stakeholders as alignment points ensures allstakeholder needs are addressed in action plans. The

deployment of the Strategy Matrix to all divisions and restau-rants in the organization ensures key deployment areas areincluded.

2.2b Performance ProjectionLandmark’s key performance projections for both short- andlonger-term planning time horizons, key competitors’ perform-ance projections for 2010, and goals for performance areshown in the Strategy Matrix (Figure 2.2-4). Past performanceresults are shown throughout Category 7.

Landmark is one of the few restaurants in the Houston andGalveston areas participating in performance excellence im-provement; therefore, Landmark is projected to outperform itscompetitors significantly over the next three to five years.Where projected gaps exist between Landmark and competi-tors, DINERS Teams already are working on innovations anddirections to close the gaps.

Action Plans HR Plans

Figure 2.2-2 Short-term Action Plans and Related HR Plans

Use technology toincrease customersatisfaction

Expand HMR, catering,and take-out servicesDevelop innovative usesof facilitiesProvide ethicsmentoringImprove customerserviceHire physically/mentally challengedpersonsOpen gift shops

Provide leadershiptraining

• Team leaders—receive trainingin performance measurement

• All—receive Foodtrak training• Vendors—provide training on

technology changes to managersand team leaders

• Training on catering, HMR, andtake-out processes

• Valet parking training

• Training on mentoring• Ethics training• Training/review of Service

Recovery Process• All—receive diversity training

(working alongside employeeswith disabilities)

• Hire and train employees inretail/customer service

• Selected employees will learnabout and participate in StrategicPlanning Process

• Management Team—receiveBaldrige training

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12

3.1 Customer and Market Knowledge3.1a Customer and Market Knowledge3.1a(1) Identify customers and marketsMarket segments are identified by the restaurant industry bystrategic choices of what to serve (product), where to serve it(markets), and how much to charge (price). Landmark com-petes in the market segment for semicasual dining steak andseafood restaurants in south Texas with $35–$50 dinner pric-ing. Within this market, specific customer segments andgroups are identified based on the restaurant’s ability to meettheir requirements. Landmark customers are segmented asshown in Figure P.1-4. Customers, including customers ofcompetitors, are identified for current and future products andservices, based on market research of the respective segmentsthat are best served by the characteristics of the product/service(see Item 2.1).

3.1a(2) Listen and learnRestaurant, catering, and dinner delivery customers share com-mon requirements, as described in P.1b(2), including reliability

(dependability and accuracy), responsiveness (timeliness andhelpfulness), assurance (knowledge, trust, and confidence),empathy (individual care and attention), tangibles (cleanlinessand appearance of the facility), value (competitive price for theproduct received), and a memorable dining experience. Otherrequirements are specific to various segments of the customerpopulation (Figure P.1-4). These requirements are gatheredthrough a systematic listening and learning approach for po-tential customers (including customers of competitors), currentcustomers, and past customers.

The listening and learning approach used by Landmark isknown as the Voices system. This was designed in 1997 to pro-vide a system of measurable devices to determine what custo-mers expect and what delights them. The system is composedof knowledge gathered from four directions to provide a full360-degree analysis of customer needs. Knowledge comesfrom industry and market sources (Voice of Experience), cus-tomers (Voice of the Customer), employees (Voice of the Serv-er), and service delivery process data (Voice of the Process).

3: Customer and Market Focus

VoiceBefore the Dining Experience(Frequency)

During the Dining Experience(Frequency)

After the Dining Experience(Frequency)

Voice of Experience

• Ind. publications/Web sites (O)• Contact with ind. experts (O)• Industry conferences (O)• Acad. experts, consults. (O)• Secret Diners Association (A)• Competitors’ sat. ratings (A)

• Advisory Board visits (Q)• Restaurant owner visits (O)• Industry and market experts’

visits to our facilities (O)

• Advisory Board (Q)• Local collaboration events (O)• Ind. and market experts (O)• Industry publications (M)

Voice of the Customer

• Academic/ind. research (O)• Potential cust. inquiries (D)• Referral inquiries (D)• Our Family analysis (D)• Web site hits, e-mails (D)• Referral sources (D)• Local market focus group (Q)• Local market surveys by

independent organizations (A)

• In-check server survey (T)• “Dear Dudley” forms (T)• Foodtrak entries (T)• On-the-spot follow-up with

customers (T)• Service recovery issues (S)

• Web site survey (D)• Web site complaint e-mails (D)• Personal call on all complaints

within 24 hrs. (D)• “Dear Dudley” forms (D)• Follow-up from owner (W)• 30-day follow-up survey (M)• Focus groups (Q)• Customer satisf. survey (A)

Voice of the Server

Staff input on• Food quality (S)• Menu design, content, etc. (M)• Training needs, delivery (Q)• Recognition/compensation (Q)• Recruiting/hiring process (Q)• Service improvement (Q)• Job and process design (A)

• Customer behavior (T)• Customer comments (T)• Customers’ answers to

employees’ questions (T)• Cook staff visits to tables (S)• Shift mgr. visits to tables (S)• Owner visits to tables (S)• Server complaints (S)

• Server complaints (T)• Server meetings (W)• Kitchen staff meetings (W)• Monthly shift and location

manager meetings (M)• Internal customer satisfaction

surveys (A)

Voice of theProcess

• Customer requirements (O)• Process design standards (T)• Process Measurement Plan (T)• Service Recovery Process (S)

• Wait times (S)• Food quality (S)• Service quality (S)• Service Recovery Process (S)

• Process results (M)• Process improvements (Q)• Knowledge sharing (Q)• Rate of improvement (A)• Service Recovery Process (S)

Frequency Codes: Ongoing, Transaction, Shift, Daily, Weekly, Monthly, Quarterly, and Annually.

Figure 3.1-1 Voices: Listening and Learning Methods Deployed Across the Customer’s Dining Experience

13

This combination of knowledge provides an integrated, bal-anced view of what is important to customers. The Voicessystem also is designed to gather input from various diningexperience stages (Figure 3.1-1).

The Voice of Experience includes industry, market, competi-tor, and best practice or benchmark information gatheredthroughout the year to track external conditions. Industry andmarket research is purchased from academic and commercialsources to broadly define customer requirements and to under-stand customer purchasing decisions. This research is used todesign further listening and learning approaches to understandthe specific requirements of Landmark’s customers. Seniorleaders integrate and analyze these data through a SWOTTanalysis and use the results to make strategic decisions.

The Voice of the Customer comprises data and informationgathered from customers and distributors, using a variety ofmethods before, during, and after a dining experience. Mostmethods include two-way communication at key “moments oftruth” during the experience. Because different customers pre-fer to give different types of input, a variety of methods areused to ensure information is gathered from each customersegment. For example, surveys delivered with a check mostoften are completed by families. Business customers more of-ten will complete on-line surveys. These data and informationare used to design menus and processes, provide real-time in-puts for process management, evaluate processes, and improveservice delivery process performance (6.1a).

Data and information about the potential to serve noncusto-mers, including competitors’ customers, are gathered throughmarket research and satisfaction surveys that ask customers tocompare products and services with known best-in-class com-petitor restaurants. Findings are validated using results frommarket surveys, focus groups, and observation of competitors’capabilities through the Secret Diners program and AdvisoryBoard feedback.

The Voice of the Server refers to inputs gathered from em-ployees based on observation techniques that are designed intotheir job descriptions and work processes. Staff members aretrained in specific techniques to observe, listen, and proactive-ly ask for customer feedback on product and service perform-ance in addressing customer expectations in real time andthrough a series of follow-ups. Voice of the Server inputs arelinked whenever possible to Voice of the Customer inputs toprovide additional information on satisfaction and requirements.For example, table surveys, which are bar-coded by time, loca-tion, server name, and customer data, are issued to a sample ofcustomers. Staff comments also are scanned, coded, and linkedto the event. This allows for correlation of Voice of the Serverinputs to those responses from customers. The results are usedto improve processes, products, and services.

Voice of the Process is a set of process measurement resultsused to ensure processes perform to the standards required toexceed customer expectations. The information is aligned toVoice of the Customer and Voice of the Server information.

For example, if a customer is dissatisfied with the wait time toreceive his/her order, the actual length of time is analyzed tounderstand the appropriateness of performance standards andto ensure processes are consistent and effective. Voice of theProcess results also provide segment-specific and customer-specific information, such as which customer types are moreor less satisfied with various portions, food temperatures, waittimes, and contact frequency.

Satisfaction surveys ask customers to rate the satisfaction andthe importance of each factor. The relationship between impor-tance and satisfaction is analyzed by displaying data points ona scatter plot. Figure 3.1-2 shows the overall relationships

between importance and satisfaction levels for sample require-ments. Comments are coded by factor to identify specificopportunities to drive customer satisfaction and loyalty and toeliminate or prevent dissatisfaction.

Factors rated low in importance and satisfaction are simply“expected” by customers. Meeting these factors does not “ex-cite” customers or produce high satisfaction, but, if not met,they produce dissatisfaction. Factors with low importance andhigh satisfaction have lost their importance over time and arenow viewed as “nice to have.” Factors rated high in importancebut not high in satisfaction are the areas where improvementpriorities are focused. High satisfaction and high importanceare the vital few factors that delight customers, increase loyal-ty, and provide a sustainable competitive advantage. Results ofthese analyses are used to design value creation processes toensure they are capable of meeting customer requirements, thusleading to increased customer loyalty and retention. Resultsalso are used to design jobs and provide training to ensure staffmembers have the capability to deliver service that aligns withcustomer expectations. In addition, they are used to charter im-provement teams using the DINERS Improvement Process orto create action plans to implement improvements. Finally, re-sults provide an understanding of the performance of satisfac-tion surveys to ensure they provide reliable and valid data.

ExcitersHigh ImportanceLow Satisfaction

• Reliability• Responsive Service• Assurance

Expecteds“Must Have”Low ImportanceLow Satisfaction

• Cleanliness• Basic Food Quality• Smoke-free

DelightersHigh ImportanceHigh Satisfaction

• Value• Exceptional Food• Memorable Experience

Old Exciters“Nice to Have” Low ImportanceHigh Satisfaction

• Empathy• Tangibles• Price

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� Satisfaction Level �Figure 3.1-2 Relative Satisfaction and Importance Levels

14

Listening and learning methods are tailored to the variouscustomer groups by virtue of the wide variety of methods andopportunities available to give input. Verbal responses toemployees’ questions, multiple choice responses, phone andwritten surveys, fill-in-the-blank comment cards, and writtenresponses via e-mail are all methods that customers can use toprovide feedback, depending on their preferences. Listeningand learning mechanisms also are varied based on the frequen-cy of contact with customers. Current customers are surveyedduring and immediately after their visits. Potential and com-petitors’ customers are included in quarterly and annual surveysand often in focus groups.

Input provided through the Voices system (Figure 3.1-1) in-cludes measures, such as the number of referrals, indicatingthe effectiveness of marketing and sales; data on customer loy-alty and retention from the Our Family frequent diners pro-gram; and information from the Service Recovery Process.Once gathered, these are used to validate results of surveys,make decisions, identify opportunities, make menu adjust-ments, provide employee recognition, and design communica-tions. Information from each of the Voices is aggregated andused during strategic planning to ensure customer needs areaddressed and changing perceptions (importance) are identi-fied. Information about perceptions of food offerings are usedto modify menu offerings or determine their placement on themenu. Performance indicators are aggregated from varioussources and used to identify requirements for new processesand improve existing processes (6.1a[2] and 6.2a[2]). Knowl-edge gained from listening and learning also is used during theannual Strategic Planning Process (2.1a[1]) to influence seniorleaders’ decisions.

3.1a(3) Listening and learning kept currentOriginally, customer input came only from tabletop commentcards and handwritten notes that managers used to identifycustomer dissatisfiers. As information and data usage evolved,these approaches have gone through numerous cycles of re-finement, and additional approaches have been added.

Each year, listening and learning approaches and customer re-lationship processes (3.2a) are included in the evaluation andimprovement of processes, using the DINERS approach.Needs for improvement in the design of a specific listeningand learning or customer relationship process are addressedthrough strategic planning with a DINERS Team. These annualimprovement cycles, as well as Baldrige self-assessment feed-back, have provided several refinements to listening and learn-ing approaches.

For example, satisfaction surveys now are conducted through-out the year rather than once a year. This approach was identi-fied by benchmarking a local state quality award recipient inhealth care in 2003. It has improved efficiency, turnarounds,response rates, currency of data, and employees’ perceptions ofhaving adequate information about customers. Another exam-ple is a result of the most recent Strategic Planning Process,during which multiple Voices methods were used to seek data

and information about various strategic challenges, includingchanging consumer needs for convenience and socialization,palate and dietary trends, and changing preferences due to the“graying of America.”

3.2 Customer Relationships and Satisfaction3.2a Customer Relationship Building3.2a(1) Build relationshipsRelationship building occurs at every point of contact withcustomers. This includes identifying specific customer require-ments for all aspects of our food and beverage preparation andservice (Figure 6.1-1).

To acquire customers, Landmark uses various media to createpublic awareness of its reputation for outstanding food andservice and the value Landmark provides to the community.Promotional mechanisms include television, radio, magazine,and Web-based advertising; displays; ongoing promotions; andactive participation in the community. Media and promotionalmessages are directed to targeted customer segments, usingimportance data and information gathered from the Voicessystem.

The Voices system provides data and information to build cus-tomer relationships by focusing on areas of high importance tocustomer satisfaction and loyalty. For example, when customerreturn rates were first tracked in 1999, Landmark was retainingonly 65%–70% of “Satisfied” customers (a 4 out of 5 rating)and over 90% of “Very Satisfied” customers (a 5 rating). Thispredictive model indicated that customers who were “VerySatisfied” were three times more likely to return than thosewho were merely “Satisfied.” Because the cost of acquiringeach new customer is $51 (based on local area industry norms),profits are realized only when customers become repeat custo-mers (“regulars”).

Based on that analysis, in 1999, one of the first DINERS Teamstackled the issue of improving customer retention through re-designed products and services and the implementation of afrequent diners program called “Our Family.” Loyalty incen-tives include free desserts, two-for-one meals, and early noticeof special events and new menu items. Our Family customersreceive thank-you, birthday, and anniversary cards and “treat afriend” coupons in order to gain customer referrals. Our Familymembers receive additional incentives for each customer refer-ral they provide. When an Our Family member makes a reser-vation, the on-line reservation system displays his/her prefer-ences, including parking, meal times, seating, servers, menuitems, specials, beverages, payment methods, and promotions.It also displays past satisfaction ratings, complaints, orderingtrends, and special needs, such as access for disabled persons,booster seats, high chairs, and large-print menus. One hourbefore the reservation time or immediately upon the guest’sarrival, the profile is displayed again for the host(ess) to use toplan the dining experience. Our Family members can updatetheir family portrait and profile on-site or through the Website.

15

3.2a(2) Key access mechanismsThe Voices system provides a variety of access mechanisms toaccommodate differing communication preferences of custo-mers throughout the dining experience cycle (Figure 3.1-1).These include access through personal contact, phone, theInternet, fax, e-mail, surveys, and focus groups. Requirementsfor contact methods are determined by using the Voices systemto track and analyze customer satisfaction data, comments, andcomplaints about the Voices methods. In addition, the customercontact staff provides input on the best contact methods, styles,and frequency to increase service ratings and tips. These inputsalso are used to update customer contact standards, such asthose shown in Figure 3.2-1 for access by personal contact.

One customer contact requirement is for staff members to askcustomers about any issues that were not resolved in the previ-ous dining service step and verify their continuing satisfaction.For example, servers ask customers about their reservations,reception, and bar service. Employees are trained to ask ques-tions in a nonintrusive, conversational manner to avoid bother-ing the customer.

Contact standards are deployed to staff members through in-clusion in the “Prospective Employee Guide” and the Employ-ee Handbook. They are communicated at training and dailyline-up meetings and are incorporated into individual process-es through the Foodtrak system. For instance, chefs receive aprompt through Foodtrak on an hourly basis asking if theyhave visited at least one table and what the results were.

3.2a(3) Complaint management processThe Service Recovery Process (Figure 3.2-2) developed in1997 is used to address complaints. The process is deployed toall customer contact personnel in all locations. It was modeled

after best practices observed at three best-in-class service com-panies known for superior service recovery results. The processis designed to leverage the most important benefit of the din-ing industry: the capability to surface customer complaints inreal time and resolve them on the spot or before the customerleaves. This minimizes customer dissatisfaction and actuallypromotes repeat business, because the customer feels that he/she has received special treatment in order to recover therelationship. This process is used in all stages of the customerexperience, either by phone, mail, e-mail, or personal contact.Each division uses this approach, including Catering and theDDSD. Built into the process are review points that ensurecomplete resolution of all complaints. All formal complaintsare followed up by the shift manager through a personal phonecall or e-mail to ensure resolution.

Contact standards and service recovery are extensions of theValue of Excellence in Service and Customer Focus. These ap-proaches are shared with employees from the day they apply towork at Landmark. The “Prospective Employee Guide” (5.1c)explains the importance of these Values and outlines customercontact requirements and service recovery expectations. Then,during orientation, employees review the Employee Handbooksections on contact requirements and service recovery, andthey participate in role playing to reinforce the standards.

During the first week on the job, new employees receiveCustomer First training, which includes training on contactrequirements and the Service Recovery Process. They arementored and observed during their initial contact with cus-tomers to determine and improve proficiencies. Also, new em-ployees are evaluated on customer contact and service recov-ery performance during their probationary employment periodand on an annual basis thereafter. Positive performance is aprerequisite to promotion to team leader or manager. All con-tact staff, team leaders, and managers receive refresher trainingannually.

Successful service recovery is reinforced through recognitionduring shift and weekly staff meetings. Exceptional events inservice recovery are rewarded and celebrated through story-telling at the meeting and published in internal communica-tions to reinforce the service culture.

Data gathered through the Service Recovery Process are inte-grated with data gathered through other dissatisfaction indica-tors, such as negative comments, letters, or e-mails and lowratings on surveys. Common rating scales on all survey instru-ments facilitate the integration of ratings data. Comments andother qualitative data are sorted and coded by theme in orderto analyze trends with Pareto charts. The set of themes is re-viewed to determine the root cause through a fishbone analy-sis. Theme frequency data are correlated with results of surveyratings in associated areas through scatter diagrams and corre-lation analysis. Results are used to identify trends, cause andeffect, and priorities in market and segmentation strategies andcustomer requirements (Figure P.1-4). They also help determinethe effectiveness of listening and learning methods (Figure3.1-1), methods to delight customers (Figure 3.1-2), customer

Position Standards for Contact, Quality, and ServiceAllStaff

Pleasantly greet all customers you meet. Ask,“Is there anything else I can do?”

Host(ess) Greet customers before they greet you.Confirm reservation details without being asked.Inquire about special needs before seating.Before seating, ask about future reservations.

BarServiceStaff

Verify age before serving alcohol.Check for refills before drink is empty.Verify sobriety before each refill.

FoodServiceStaff

Present menu within one minute of seating.Take orders immediately upon request with100% accuracy. Confirm expected food delivery time.Provide refills and attend to additional needs.

Chefs Inquire about food and service at one table perhour.

Manager Inquire about food and service at three tables perhour.Inquire about special needs, preferences, etc.

Figure 3.2-1 Sample Personal Customer Contact Standards

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contact standards (Figure 3.2-1), the Service Recovery Process(Figure 3.2-2), satisfaction measurements (3.2b[1]), and reten-tion and loyalty programs (3.2a[1]). Suppliers and distributorsare included in DINERS Teams when trends and analyses showimpact by or to them.

3.2a(4) Relationship building kept currentApproaches to building relationships and providing customeraccess are kept current through annual reviews of the Voicessystem, Our Family program, contact methods and standards,and the Service Recovery Process by using the DINERSImprovement Process, as described in 6.1a(6). Additional as-sessment of the alignment of these processes is provided eachyear through external review and feedback from the Baldrigeself-assessment. The results of these review and improvementefforts from throughout the company are evaluated duringstrategic planning, when senior leaders ensure they align withthe strategic direction of the company. Action plans are createdto address changes to these processes in order to meet strategicgoals.

3.2b Customer Satisfaction Determination3.2b(1) Determine customer satisfaction/dissatisfactionA variety of methods are used to determine customer satisfac-tion and dissatisfaction before, during, and after the diningexperience, as described in 3.1a(2) and shown in Figure 3.1-1.A restaurant is a unique service business in that our customersconsume the products and use the services “on premises”;therefore, satisfaction levels often can be determined as servicesare provided. It is easy for customers to express their satisfac-tion or dissatisfaction and provide feedback through the varietyof communication modes tailored to customer preferences.

Landmark uses an external customer satisfaction survey con-ducted by a vendor, plus internal customer satisfaction surveys.These surveys are available in a variety of formats, includingmultiple choice, fill-in-the-blank, verbal, or on-line. All cus-tomer communications are available in Spanish, as well asEnglish. Surveys also are offered in braille, and hearing-im-paired customers have access to TTY-enabled systems. Chil-dren are given surveys that use “happy faces” to show varyingdegrees of pleasure so they can express their satisfaction or dis-satisfaction. Our Family customers are provided access to cer-tain Web site pages and receive quarterly newsletters and othercommunications that request ongoing input and feedback on avariety of issues.

Verbal inquiries and conversations, write-in responses on sur-veys, and the correlation analysis created from importance andsatisfaction ratings (Figure 3.1-2) are all used to capture ac-tionable information for use in exceeding customer expecta-tions. Results of ongoing comment gathering and analysis areused to provide potential actions that best address customerexpectations.

The goal of the Service Recovery Process (Figure 3.2-2) is todetect and implement an effective, immediate resolution of thesymptoms of dissatisfaction before they become complaints. Inthe service industry, customer loyalty and positive referral ac-tually increase when service gaps have to be recovered versuswhen they never occur. The process for service recovery isdesigned to capitalize on this phenomenon to improve the cus-tomer retention and referral that occur as a result of successfulrecovery. The likelihood of receiving positive referrals is moni-tored by asking “Would you recommend us?” on appropriatefeedback mechanisms. Figure 3.2-2 Service Recovery Process

ProblemResolved?

Can YouResolve This

Alone?

AnyProblems?Ask

Listen• Do not interrupt• Be understanding

• Be sorry for inconvenience• Take full responsibility

• Tell customer you understand• Take ownership of the situation

• Understand what customer is saying• Show customer how you will fix it

• Do whatever it takes to resolve it• Give something of added value

• Give customer a comment form• Ensure customer completes form

• Tell customer you will get help• Get the best person to resolve this

Apologize

Empathize

Restate

Resolve theProblem

Follow Up

Get Feedback

ProblemResolved?

Can YouResolve This

Alone?

ContinueService

• Ask customer if problem is resolved• Thank customer for letting you help

YesNo

No

No

Yes

Yes

YesNo

Yes

No

17

DINERS Teams use the correlation of importance and satisfac-tion, as well as complaint factor analysis trends, to tailor newprocess designs to customer needs (6.1-[3]), manage processperformance in real time (6.1a[4]), and redesign/improveprocesses during evaluation cycles (6.1a[6]).

3.2b(2) Follow up with customersMost of the methods shown in the Voices system (Figure 3.1-1)are used to obtain immediate feedback. Providing feedbackopportunities throughout the course of the dining experienceprovides all employees with the opportunity to identify poten-tial areas of dissatisfaction and address them before they be-come complaints. This immediate follow-up with customers isdesigned to ensure they receive prompt resolution to their con-cerns, and it provides an opportunity for Landmark to ensurethe corrective action is appropriate for the specific customerconcern. All actions are documented in the Foodtrak system tocapture learnings. An additional follow-up mechanism isthrough shift manager calls to customers verifying the resolu-tion of formal complaints.

3.2b(3) Satisfaction relative to competitorsSeveral methods are used to obtain information about Land-mark customers’ satisfaction relative to their satisfaction withcompetitors. The external customer satisfaction survey con-ducted by a third party is a primary source of comparativedata. In addition, the Secret Diners Association provides asummary report of service performance for each restaurantthat participates. Reports provide information about food andservice quality, timeliness, price, value, and facilities.

On internally generated surveys, customers are asked to ratethe food and service quality, timeliness, price, value, and facil-ities and if they intend to repurchase from the Landmarkrestaurant. They also are asked to specify the “best other

restaurant eaten at during the last year,” which allows analysisof the competitive strengths and weaknesses of each majorcompetitor identified by customers.

Additional satisfaction information is gathered from local pub-lications in news and trade journals with reviews by food criticsand journalists. These local market data are supplemented withdata from industry associations, industry Web sites, industryanalysts, other consultative reports, and benchmarks.

3.2b(4) Satisfaction determination kept currentThe accuracy, reliability, and validity of survey instruments arerecalibrated annually. For vendor surveys, an academic expertreviews instrument reliability statistics and its construct andpredictive validity with a representative of the survey vendor.This information is used to improve survey questions, format,and data collection. Software used to generate internal surveysprovides validity and reliability statistics that also are reviewedby the academic expert.

For customer feedback methods that are comment based, Loca-tion Management Teams aggregate and sort them into “keythemes” quarterly and annually. The team creates a Paretochart to analyze and prioritize satisfaction measurement im-provement opportunities. Additionally, feedback from expertsin the Baldrige assessment process provides information usedto improve the satisfaction determination methods.

For all satisfaction input methods, direction for improvementto support their decision-making needs is given annually fromsenior leaders as a result of strategic planning. In some cases,survey information is updated because process teams orDINERS Teams need to have specific data to support theirdecision making.

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4.1 Measurement, Analysis, and Review ofOrganizational Performance

4.1a Performance Measurement4.1a(1) Select, collect, align and integrate dataData for tracking overall organizational performance are select-ed and aligned through the Strategic Planning Process describedin Item 2.1, which culminates in the Strategy Matrix. Throughthis Matrix, senior leaders create a Scorecard with all the keymeasures identified in Figure 2.2-4 that is used to track monthlyupdates of organizational performance. This approach ensuresthe measures in the Scorecard are tracking the areas of greatestimportance to the company and are integrated through all areasof the organization.

Measures on the Scorecard (available on site) are color coded(red, yellow, and green) to show progress to plan. Trend direc-tion also is designated so senior leaders can quickly identifyareas in need of attention. The Scorecard is available on-lineand updates automatically from the real-time data in theFoodtrak system. Foodtrak is an integrated commercial solu-tion system designed for the management of restaurant andfood service operations and particularly suited for use withmultiple locations. This type of POS system is prevalent in therestaurant industry and offers a mature system to even thesmallest restaurants. Foodtrak uses advanced hardware, soft-ware, and networking technologies to integrate support andoperational systems.

Clicking on any element of the Scorecard in Foodtrak bringsup the underlying data for analysis. The Scorecard includesboth operating data and actionplan progress. Senior leaders canand do review the informationon a daily basis. The Scorecardand the Strategy Matrix are thefocus of weekly staff meetingsand monthly executive reviews,as shown in Figure 4.1-2. As partof these reviews, the externalenvironment and internal per-formance are discussed and theStrategy Matrix and Scorecardare updated as required. Priori-tized changes automatically aredeployed to the staff through theFoodtrak system. This flexibilityenables the company to rapidlyadapt to changing needs. Forexample, the Scorecard is beingexpanded to accommodate theimplementation of the DinnerDelivery Service.

The data used to track daily op-erations are selected systemati-cally and refined through annual

formal evaluation and improvement activities by DINERSTeams (6.1a[6]). These reviews are used to improve processesand align new and existing metrics for key processes. As newDINERS Teams address issues, they may define new or re-vised measures for processes. The actual measures that havebeen selected and currently are in use are shown in Figures6.1-1 and 6.2-1.

When needed, new or revised organizational and operationalmeasures are selected based on a set of priorities and criteria.Measures are selected that (1) are (or can be) part of normaldaily operations to minimize extra effort and increase utiliza-tion compliance, or they can be combined with one or moresuch measures; (2) are directly connected to the strategic planor process involved; (3) can be easily and quickly recorded inreal time; (4) can be compared to industry or other averages;and (5) can be used and/or reported (preferably in real time) bystaff to improve performance.

All significant operational measures are collected and integrat-ed using the Foodtrak system. Where Foodtrak does not sup-port specific Landmark needs, supplemental databases areused to collect information and are linked to the system for re-porting and analysis. Figure 4.1-1 represents the design of theFoodtrak system, with linkages and access points. The systemis based on a private Wide Area Network (WAN) that providessecure network communications among restaurant and head-quarters locations. Each location is served by a Local AreaNetwork (LAN) that includes secure high-speed wireless tech-nology for communication with portable and handheld devices,

4: Measurement, Analysis, and Knowledge Management

Figure 4.1-1 Foodtrak Linkages and Access Points

Internet

Wide Area Network

Terminal

Touch PadKitchen

TouchTerminal

PDA TouchPads

WiredWireless

Headquarters

Restaurant

Catering andDelivery

Restaurant

Service Recovery Service Recovery

Menu M

gt.Or

ders

Food

Prep

.Se

rvers

Reser

vation

s

Cust.

Sat. S

urvey

Our F

amily

Progra

mPa

ymen

tsSc

orecar

dRe

ports

Know

ledge

Mgt.

Inven

tory

HR an

d Trai

ning

Foodtrak Functions

19

also a standard technology in the restaurant industry. The cen-tral database is mirrored among all three sites, allowing for aremote site to operate fully independently for a period of timeif necessary and for redundant backup.

The entire network is designed to be “location unspecific,”meaning that all features, functions, files, and data are avail-able at all access points. This enables employees to performtheir necessary job functions regardless of location. For exam-ple, if a member of the headquarters staff is needed to help at arestaurant location, he/she will have full access to his/her nor-mal work files to serve customers or suppliers who may callfor assistance. This also provides all employees with the profileand preferences of Our Family frequent diners.

Four types of access points to Foodtrak are provided at therestaurants (Figure 4.1-1). These include (a) wired touchpadtablets mounted in key kitchen areas; (b) wired POS touch ter-minals in each restaurant and at the host/hostess stand, withcredit card swipes and printers; (c) wireless POS/PDA unitsissued to servers for each shift; and (d) wireless POS tabletunits for use by customers and staff, including a credit cardswipe and small thermal printer. In addition, servers offer cus-tomers the option of using these units to place their own foodorders at the table. Traditional wired computers are used inoffice locations. These computers are linked to Foodtrak andother resident systems.

The following functions supported by Foodtrak are designed toclosely support the company’s value creation processes (Figure6.1-1):

• Menu Management formats and maintains menus, selectsrecipes, and determines special preparation and presentationinstructions.

• Order System allows order entry by customers or serversfrom wherever they may be for the location the order shouldbe presented, and orders automatically are routed to the ap-propriate kitchen.

• Food Preparation System manages pending and in-processorders with touch access to menus and special instructionsfor the kitchen staff (including pictures of ideal presenta-tions) to ensure consistent results.

• Server System customizes access to other Foodtrak func-tions for employees to manage their customers’ experiences.

• Reservation/Table Management System manages reserva-tions and monitors table utilization, including current status.

• Customer Satisfaction Survey allows customers to com-plete a survey at any time after the servers log their orders as“delivered.” The survey may be completed either in therestaurant or via the Web.

• Our Family Program Manager maintains customers’ pro-files, order history, and satisfaction records, and it allocatesspecial offers and “treat a friend” coupons.

• Payment Manager processes and records customer payments,including processing credit card payments and managing thecash drawer for each location.

• Scorecard Manager maintains the Scorecard measures in adashboard-style monitor with prompts for required updatesprior to reviews of progress on goals and action plans.

• Report Generator allows standard and customized reportsto be generated in real time with data from operations.

• Knowledge Management System is a database to tracksuggestions, problems, process documentation, process im-provements, and best practices.

• Inventory Management tracks inventory and places elec-tronic orders through the purchasing consortium or directlywith other suppliers. Vendor access provides remote accessto requirements and inventory levels.

• HR and Training Support is used to track nonsecureemployee-related information and training records and toprovide access to on-line training materials. Secure HRinformation is maintained in a private system.

• Service Recovery Process is used to enter, track, and ana-lyze customer service issues. The system also automaticallyidentifies unresolved issues and alerts managers.

All operational processes are integrated through Foodtrak,allowing the monitoring of key performance measures as theprocess is performed. Most measures used in tracking perform-ance are entered through Foodtrak by employees or customers,or they are collected directly by Foodtrak (such as clock cycletime). As employees perform their jobs, they are prompted forinformation, such as freezer temperatures, results of pre-audits,or customer comments. This information is entered into thesystem and validated based on prior trend information.

Organizational-level information, including results and trends,is used in a variety of meetings and particularly in the monthlyexecutive review. This information is used to evaluate organi-zational performance status and progress to plan to assist inmaking decisions about directions and corrective actions. Ifcomparative data show a performance gap, this information isused to identify areas for innovative approaches to improve-ment. During line-up meetings, operational performance meas-ures are used to review prior shift, day, and week results and toidentify any issues. Trends, especially satisfaction data, are re-viewed during weekly all-employee meetings.

Other information is available through Foodtrak to all employ-ees as needed to make decisions, and key operational measuresfor each of the key processes are displayed on system termi-nals. For example, each server carries a handheld wirelessPOS/PDA unit that is used to place orders. The order applica-tion running on the handheld units also displays the status oforders he/she has placed, as well as other servers’ orders thathave been ready for more than two minutes. At a glance, allservers can tell which customers’ orders need attention.

4.1a(2) Comparative dataStrategic planning and the DINERS Improvement Process bothrequire that measures of organizational success be selected thathave appropriate comparative data available. The restaurantindustry has been very successful in promoting informationsharing among organizations. Comparative data sources includeNRA standard reports or sharing meetings, local industry surveysthrough the chambers of commerce, the informal consortiumof restaurants, and Secret Diners studies. With 43 other arearestaurants, Landmark established the Secret Diners Association,in which trained food critics eat at member restaurants and

provide a monthly report to the association. Names of restau-rants are protected in the comparative data on food quality,menu items, and service. Additionally, member restaurantsprovide data on financial and menu item performance. This in-formation enables members to assess their relative perform-ance and identify areas for improvement. A less formal butstill very valuable data source is the Employee Dining Report.Employees are encouraged to eat at other restaurants onceevery six months as a training experience, and they are com-pensated up to $50 when they submit a structured report.

Comparative data are used during reviews to understand com-petitive position and also are used in process design. Thesedata are used during strategic planning to help determine ac-tion plans and goals; Landmark’s overall target is for eachrestaurant to be in the top 10% of its respective market. Com-parative data also help identify opportunities for innovation insupport of emerging customer requirements. Key processbenchmarks and comparisons are obtained from best-in-classsources, such as Baldrige Award recipients.

4.1a(3) Keep performance measurement system currentIn addition to the regular operational review of performancemeasures, trends tracked daily and/or weekly by in-processmeasures are analyzed quarterly against overall organizationalcustomer and performance measures. These analyses are usedto verify that leading indicators used as in-process measuresare predictive of organizational performance, and measures areimproved as needed. Annual reviews of processes that are con-ducted by DINERS Teams include regular updates of themeasures used to track them.

All key measures are reviewed during strategic planning by re-evaluating their linkage to the Strategy Matrix and Scorecard.In addition, employee suggestions for measurement systemimprovements are collected through the Foodtrak KnowledgeManagement system. Staff feedback also is gathered duringregular meetings and from the external Advisory Board duringstrategic planning. Changes to measures are made throughFoodtrak to quickly deploy them to all employees for rapid

response to changing conditions. In addition, the linkage of theStrategy Matrix and Scorecard, as well as their incorporationinto Foodtrak, facilitates response to rapid or unexpected orga-nizational or external changes.

4.1b Performance Analysis and Review4.1b(1) Performance analysis and reviewFigure 4.1-2 shows the series of reviews regularly used to eval-uate organizational performance. This cascading set of reviewsat every level of the organization ensures employees have ac-cess to information to improve their performance and under-stand operations. For example, at the daily menu design andre-engineering meeting, Executive Chefs and FoH managersuse performance data on specific menu items from Foodtrak tomake decisions regarding the profitability of menu items,menu item placement, and the availability of special itemsbased on ingredient availability and probable demand. Sincemenus are printed daily, the restaurants have great flexibility torespond rapidly to changing tastes and the availability of keyingredients.

Various types of analyses are performed on the data reviewedto provide information for making appropriate decisions. Manyof these analyses are used to aggregate and correlate Voicesdata, as described in 3.1a(2). Analysis techniques includecorrelation analysis, use of Pareto charts for qualitative dataanalysis, scatter plot diagrams for understanding the effects ofimportance and satisfaction on requirements, fishbone dia-grams for discovering the root cause of dissatisfaction, andother techniques taught to and used by DINERS Teams in eval-uating performance and identifying areas for improvement.

In preparation for strategic planning, correlation analysis andfrequency distribution charts help Landmark understand envi-ronmental data, and issues undergo a SWOTT analysis, asdescribed in 2.1a. Traditional trend and comparative analysesalso are used to understand Landmark’s current position in themarketplace. The Foodtrak system has facilitated the use ofseveral analysis tools, including correlation analysis. Restau-rants tend to use many mature analysis techniques in the

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Meeting Frequency Attendees TopicsLine-Up Each shift Shift managers and

scheduled employeesWork assignments, menu items, key focus thrusts, training progress,service performance issues from team leaders

Menu Design/Re-engineering

Daily/weekly

Restaurant ManagementTeam

Menu planning, menu profitability, menu item placement,availability of special items

Staff Weekly All management Progress to plan, action item review, Scorecard review, customercomplaints

Team Leader Monthly All team leaders Performance measures, customer feedback, sharing of best practices

All-Employee Monthly All leaders andemployees

Progress to plan, Values discussion, employee recognition, newemployee introductions, lessons learned, open forums, performanceto Scorecard, training progress, customer complaints

Executive Review Monthly Sr. leaders, AdvisoryBd., key suppliers

Progress to plan, Scorecard review, course corrections required

Strategic Plan-ning Session

Annually Sr. leaders, AdvisoryBd., key suppliers

Development of strategic direction and high-level action plans andmeasures

Figure 4.1-2 Regularly Scheduled Reviews

21

management of overall and day-to-day business operationsbecause of the sophistication of the computational tools in thePOS systems in the industry.

The reviews shown in Figure 4.1-2 allow senior leaders toassess organizational success by providing a thorough evalua-tion of whether the company has achieved its goals, and if not,why. During these reviews, senior leaders assess their progresson strategic objectives and action plans, and they compareorganizational performance to competitive or benchmark per-formance. The benchmark performance level for each measureis included on the Scorecard to provide quick reference.

Reviews are designed to provide frequent assessment of thestatus of and changes in the operating environment. For exam-ple, at a recent review it was noted that the number of custo-mer complaints remained consistently below the target of 300.However, the wait time to be seated, while still below the targetof six minutes, was climbing. Because occupancy rates were84% and gross profit per seat was $13.1K—levels that indicat-ed room for improvement—a decision was made to changetable configurations to provide more availability to patrons.

In order to modify and deploy changing priorities and outputsfrom reviews, senior leaders make changes to the StrategyMatrix and Scorecard. These are then cascaded down throughthe organization to the various managers and employeesthrough the daily and weekly meetings.

4.1b(2) Translate findings into prioritiesDuring each of the reviews in Figure 4.1-2, gaps in perform-ance or changing issues are addressed through either the devel-opment of action items, action plans, or DINERS Team issues.These activities are easily translated into prioritized findingsbecause of the alignment of the measurement system to thedirections of the organization. The Scorecard is linked to andderived from the Strategy Matrix (Figures2.2-3 and 2.2-4) andthus aligned to organizational priorities. All IRDPs are derivedfrom and linked to those same documents, therefore ensuringdeployment throughout the organization. In addition, becauseScorecard performance is reviewed during the monthly all-employee meeting, all employees are aware of priorities. Keysuppliers and partners participate in the annual strategic plan-ning session and attend monthly executive reviews, whichhelps them align with and support Landmark’s priorities.

During reviews of progress to plan, senior leaders re-allocateresources as required. For example, during a recent review, itwas noted that the redesign of the prep area at the Texas Light-keeper in order to provide an “open kitchen” (a project initiallyproposed by a cross-training employee) was behind schedule.Because the new layout was projected to generate significantcost savings and increased business, over-time was authorizedfor the DINERS Team, and two employees were temporarilytransferred from the Harrisburg Station.

Most data are reported in real time to all staff members, in-cluding servers, kitchen staff members, and managers, via theirhandheld wireless units and other terminals. Summary results,including recent trends, are discussed at the line-up, regular

staff, and all employee meetings and posted as charts on bul-letin boards. Results of analyses that are not considered duringthese meetings are deployed through the CommunicationProcess (Figure 5.1-1).

4.2 Information and Knowledge Management4.2a Data and Information Availability4.2a(1) Make data and information availableAll employees have access to one of several kinds of terminals,all of which have access to Foodtrak and its various measures.In addition to internal networks, Foodtrak is integrated withthe company’s Web site, allowing the general public to viewmenus and make comments regarding general service issues,menu choices, or any topic they believe to be relevant. OurFamily program members are provided special access to makeand review reservations, review the menu, place orders, andcomplete satisfaction surveys regarding their most recent visit.They also may change their personal preferences, review theirstatus, and review special offers and rewards. These samemodules allow customers to review and change catering ordelivery orders; however “lockout points” prevent any changesafter order preparation has begun or supply commitments aremade, such as special ingredients or material acquisition forlarger orders.

Vendors and suppliers, as appropriate, can gain access to in-ventory management functions by using a unique user identifi-cation and password on Landmark’s Web site. Through thisinterface they observe inventory utilization and expected de-mand, as well as comments from customers, servers, or kitchenstaff members that may be linked specifically to their products.This interface also allows electronic commerce suppliers to re-view pending orders and performance. Some vendors are givenWeb access to reports of their performance-related data but notdirect access to the database. For example, cleanliness satisfac-tion results are provided to the cleaning contractors.

4.2a(2) Ensure reliability, security, and user friendlinessThe vendor for Foodtrak is a key partner. Under contract, atechnical services representative remotely monitors systemperformance, including user feedback input in the KnowledgeManagement module. Through this contract, technical supportis available on demand during the restaurants’ operationalhours. Network security, backup systems, and the operation ofthe mirrored databases to ensure data security are all part ofthis monitoring activity.

The individual location LANs are connected by redundantdirect wiring that is maintained by the local telephone companythrough a contractual agreement. The entire WAN system iselectronically located behind a firewall to control access fromoutside sources. Local wireless networks all are configuredwith secure encryption enabled.

4.2a(3) Continued availability in an emergencyLandmark has created a Disaster Preparedness Plan that is re-sponsive to the needs of the business. Systems operate frombattery-backed power supplies, and all data are backed up dailyto on- and off-site locations. All locations have replacementunits of interface hardware to handle breakdowns of devices.

22

Emergency system response is contracted to replace malfunc-tioning hardware within 24 hours and, in the event of a disas-ter, to replace damaged systems hardware within 12 hours andall customer contact systems within 24 hours.

4.2a(4) Data and information availability kept currentConstant user feedback is provided to the Foodtrak KnowledgeManagement system and is monitored by the technical staff tokeep current with business needs. Users can enter commentson-line or discuss their questions, concerns, and suggestionsduring shift meetings. An annual Improvement Day is heldwith the vendor and other Foodtrak customers to review sys-tem performance and update functionality. To ensure usabilitygoals are met, new updates, applications, and system changesare previewed prior to acceptance by a sampling of the staffmembers who will use the system. Once accepted, changes andupdates are beta tested using parallel data to test system opera-tion before the changes are applied to the system.

For example, the original Foodtrak system tracked operationsbut did not provide real-time information to users. Serversrequested that they somehow be notified of order readiness be-cause they often were busy serving customers and could notmonitor the progress of their orders. A DINERS Team ad-dressed the issue with the vendor, which led to the improvedintegration of two functions within Foodtrak to provide real-time order status through the handheld wireless PDA units.

4.2b Organizational Knowledge ManagementThe Foodtrak Knowledge Management system helps collectand organize ideas, suggestions, and best practices. Newentries are reviewed weekly with management and during staff

meetings. Frequently used system features are reviewed atmultiple staff meetings for staff awareness. Best practices arediscussed at team leader meetings and then communicated atline-up meetings. When appropriate, vendors and suppliers areincluded in the discussions. As vendors and suppliers also haveaccess to the system, they are encouraged to enter and sharecomments, suggestions, and ideas regarding their products.Best practices generally are incorporated into the work flowthrough the Foodtrak system.

4.2c Data, Information, and Knowledge QualityThe accuracy of data and information is validated through dataentry processes and double-checks. Processes are designed tominimize errors in entry by providing selection options ratherthan requiring full text entry, by using a bar code scan whenpossible, and by incorporating a forced review of input by theperson entering the data.

Integrity and reliability are addressed by ensuring that all elec-tronic systems are backed up regularly for easy restoration. Incase of a power outage, manual systems are provided, includ-ing a manual cash drawer, a credit-processing terminal, andsupplies of duplicate order pads. The use of the PDA and otherterminals at key locations ensures the timely entry of data.

Security and password systems are in place to protect sensitivedata, including Our Family members’ profile data and sensitivefinancial and operational data. Authorization by senior leadersis required to access protected information, such as credit carddata, customer profiles, and critical organizational financialdata.

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5.1 Work Systems5.1a Organization and Management of Work5.1a(1) Organize and manage work and jobsAs a key strategic challenge, the availability of skilled, moti-vated employees is essential to Landmark’s competitive suc-cess factor of superior service and essential to its Value ofEmployee Development. To address that challenge, a focus onteam work and the development of employees improves serv-ice and reduces turnover.

Until the early 1990s, our work and jobs were organized ac-cording to accepted industry practices. Employees were hired forspecific jobs, worked specific hours, and had very little inputinto how tasks were performed. With the initiation of a formalStrategic Planning Process and the articulation of its Vision,Mission, and Values, Landmark began to develop innovativeprocesses to manage work and jobs in support of highperformance.

In order to facilitate cooperation and empowerment, employeesin all business divisions, including Catering, Dinner DeliveryService, and Administration, are organized in empoweredprocess teams that align with the key processes outlined inFigures 6.1-1 and 6.2-1. Each team is responsible for its ownscheduling and process improvement, and each has a memberin the role of team leader. The team leader is not considered apart of management but is compensated for assuming requiredextra duties, including (1) ensuring the team schedule is devel-oped, (2) training new employees and providing refresher train-ing for all team members, (3) monitoring and coordinatingimprovement of the team’s processes (including reportingmetrics), and (4) providing input for team members’ perform-ance appraisals. Team leaders are selected by the FoH Managerand Executive Chef based on specific criteria. They receivespecial training when assigned their duties, with a focus onteam development, leadership, the Baldrige Criteria, and theDINERS Improvement Process to promote innovation through-out the organization.

Cooperation, initiative, empowerment, and innovation are fur-ther promoted through a process improvement reward system(5.1b) and through an emphasis on lateral service. This meansthat servers “work the room,” not just their sections; for exam-ple, when they refill their own customers’ water glasses theyalso fill the glasses in other servers’ areas. In addition, to facil-itate cooperation, Landmark uses a “point system” at tablesthat assigns a number to each seat for purposes of taking anddelivering orders so anyone can deliver an order.

To ensure agility and to stay abreast of changes, teams alsowork across locations with cross-process and cross-restaurantteams, as necessary. All team leaders meet monthly to assessperformance against measures, review customer feedback,identify improvement opportunities, and share best practices.Agility also is facilitated through cross-training. All employeesare exposed to each process during orientation and cross-trained to ensure adequacy or competence in at least two jobs:

the position they are hired for, plus the next higher-levelposition. Employees choose their third cross-training opportu-nity as part of the IRDP Process. All hourly workers with ayear or more on the job are cross-trained in at least three posi-tions. Employees must work in a cross-trained position for oneshift at least once per quarter.

5.1a(2) Capitalize on diverse cultures, ideas, and thinkingLandmark’s empowered team approach, coupled with diversitytraining, sets the stage for capitalizing on diverse ideas, cul-tures, and thinking. Employees are expected to participate eachyear in at least one DINERS Team, which comprises cross-functional and cross-location members. The flexibility thatLandmark has in the types and hours of its positions (e.g., parttime, weekends, nights, on-call) makes it possible to hire anextremely diverse workforce (Figure P.1-2) with varying needs.

All managers and team leaders are trained in the basic con-cepts of team development and selection. Orientation includesan introduction to diversity training and a personality typeidentification exercise. This helps employees understand andappreciate the strengths each personality type brings to anorganization and how the organization can benefit.

Employees also are encouraged to have fun and use any uniquetalents on the job, as appropriate. Based on benchmarking afamous seafood market where workers throw fish to oneanother, the bartenders have perfected tossing metal drinkshakers to each other from one end of the bar to another. Anamateur magician performs magic tricks while serving chil-dren, and an employee who is particularly good with childrenmight be sent to a table with an unhappy child.

A variety of approaches address the need to have Spanishspeakers on staff, due to the large Spanish-speaking populationin the area. Spanish-speaking employees give informal lessonsto non-Spanish speaking staff, and the community collegeprovides employees with courses on English for Speakers ofOther Languages.

5.1a(3) Effective communication and skill sharingEffective communication and skill sharing are accomplishedchiefly through a combination of the Communication Process(Figure 5.1-1), use of the Foodtrak Knowledge Managementsystem, and meeting structures. As Landmark grew, effectiveand timely communication became increasingly challenging.To address this, in 2002 a DINERS Team, along with a publicrelations consultant, created the formal CommunicationProcess shown in Figure 5.1-1. The Communication Processstarts with asking the question, “Who needs to know?” aftereach meeting or decision. Once the audience is identified, themethod of communication is determined. Among the methodsfor communication are training and education, regular meet-ings, bulletin board postings, Web site postings, and e-mail. A“communicator” is assigned responsibility for the communica-tion task and enters it into the communication log on a shareddrive. After the communication method is designed and deployed,

5: Human Resource Focus

24

the communicator updates the log. The process is reviewedannually for improvements by a DINERS Team led by theprocess owner. The log was an enhancement developed in2003 after benchmarking a Baldrige Award recipient.

All results from process improvements are documented andincluded in the Foodtrak Knowledge Management system.Standardized processes and procedures are placed in theFoodtrak system to ensure the process is followed andmanaged. All teams using the DINERS Improvement Process(Figure 6.1-3) check Foodtrak before starting a new effort inorder to identify previous lessons learned.

Team leaders meet monthly to share best practices that are takenback to each location. In addition, the monthly all-employeemeetings include best practice sharing, process changes, andgeneral updates. The communication log documents the recipi-ents of each communication.

5.1b Employee Performance Management SystemThe formal performance review approach is the IRDP Process.This process was designed to provide two-way communicationbetween an employee and his/her manager. Organizational-level action plans are cascaded to departments’ and to individ-ual employees’ action plans and goals. This ensures a focus oncustomers and business success. The IRDP includes both anappraisal of current performance against individual and/or de-partment action plans and goals and a development plan foreach employee. The development plan includes dates forachieving the next level, and each employee is asked for a ca-reer goal, in or outside the industry.

Reviews are conducted quarterly during the first year and an-nually thereafter. Annual reviews have a midyear check-in stepto assess progress and identify any barriers to completing theplan. Managers are trained to provide continuous feedback soformal appraisals contain no surprises and focus on steps toget the employee to the next level.

In addition to having an IRDP themselves, managers partici-pate in the 360-Degree Feedback Process conducted by anexternal consultant every other year. Development plans areconstructed based on this feedback.

Compensation is designed to be very competitive in the restau-rant industry and is supplemented by a wide variety of rewardsand recognition events focused on performance in key areas ofbusiness success. On-the-spot awards in the form of gift cardsto a local department store are given by managers based on therecommendation of peers, positive written or verbal customercomments, or an employee’s willingness to “go the extra mile”for a customer or another employee. Rewards are timely, andthe model behavior or best practice is shared. For example,awards are given immediately and announced during the dailyline-up and at monthly all-employee meetings. Each on-the-spot award is documented, and, for every five awards, the em-ployee receives a $100 bonus and has a star embroidered onhis/her apron. The latter was an enhancement in 2004 follow-ing a DINERS Team recommendation. In addition, employeeswho serve on DINERS Teams receive gift certificates and aretreated to a team recognition event.

New employees who have been with the organization for threemonths are invited to dine at the restaurant in recognition ofthat milestone and as an enhancement to their training. Em-ployees with at least six months on the job are recognized bybeing invited to eat at a competitor’s restaurant at company ex-pense. They also complete an Employee Dining Report on thatestablishment that is shared at monthly all-employee meetings.During the meeting, employees are asked to share whatchanges they might make based on that experience. To supportthe Value of Family Culture, all birthdays are celebrated with acake presented during the employee’s shift, recognition and achorus at line-up, and a gift certificate for four to dine at eitherLandmark restaurant.

Meeting held ordecisions made

Identify audience(who needs

to know)

Determinecommunicationvehicle and key

messages

Enter incommunications

log

Implementcommunications

plan

Identifyimprovements to

process

Implementimprovements/update process

Communicatorupdates log

Share best practices

Determine who will communicate

Figure 5.1-1 Communication Process

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5.1c Hiring and Career Progression5.1c(1) Identify characteristics and skills neededCharacteristics and skills needed by potential employees aredocumented in formal job descriptions and identified throughthe Job Review Process (Figure 5.1-2). All required character-istics begin with the company’s common skills of “good atti-tude and service focus.”

Each established job position has a set of defined skills andcharacteristics based on process requirements. These job de-

scriptions initially were devel-oped based on industry normsbut have been refined based onLandmark’s specific needs.They are regularly refined dur-ing annual process reviews fol-lowing strategic planning orafter a major process change.For example, the CateringEvents Manager position wasrevised in 2004 following aDINERS Team recommendationthat this position assumeresponsibility for obtainingcustomer event evaluations.

The BE Director starts theprocess by asking a sample ofemployees and team leaders ateach location to review and pro-vide feedback on the existingjob description. The feedback isincorporated and validatedthrough either a review of thedocument or observation of thejob, depending on the signifi-cance of the change. The de-scription is updated and sharedthrough IRDPs.

Skills needed for newly createdpositions, an infrequent occur-rence, are identified by the hir-ing manager based on goals forthe position and functionalflowcharts of the key processes.

They are validated and updated through weekly reviews whenthe employee is hired.

5.1c(2) Recruit, hire, and retainEmployee retention in the food service industry generally isvery low. Target employees are in large part young peopleworking in their first jobs while in school or in some othertemporary status. With that reality in mind, it is Landmark’sobjective to assist these employees in their goals while estab-lishing a strong core group of employees to provide stabilityand knowledge. For its short-term employees, Landmark is anemployer of choice with a strong reputation for providingexcellent training.

Landmark’s recruiting efforts are driven by both the need tomaintain the proper level of staffing for current operations andalso to grow according to the strategic plan. For example,Landmark is increasing recruitment efforts to support thenewer HMR and catering business directions.

Landmark’s systematic Recruiting and Hiring Process is shownin Figure 5.1-3. The recruiting process is outsourced to

Staffing Solutions, Inc., anHR firm that provides serv-ices through the purchasingconsortium. They use aprocess appropriate forrestaurants, which includesrecruiting at school culinaryprograms, following up onemployee referrals, workingwith high school counselors,advertising in trade maga-zines, recruiting from com-petitors, placing newspaperads, and advertising at localcommunity centers to ensurea diverse pool of potentialemployees.

The process begins with thehiring manager notifying theBE Director that a position isvacant. The BE Director isthe interface with the HRfirm to coordinate recruit-ment and provide guidanceabout search resources andcompany needs. The HRfirm then begins the recruit-ing process for the position.This includes a review of thediversity of current employ-ees and the employee hiringcommunity and targeting re-cruiting efforts to fill gaps.

As part of its recruiting re-sponsibilities, Staffing Solu-tions, Inc., also conductsreference and backgroundchecks and screens appli-cants, using established crite-ria. Applicants are given a“Prospective EmployeeGuide” that outlines companyValues and high-level expec-tations to help them deter-mine if Landmark is a good

fit for them. Once a potential employee is selected through theLandmark hiring process, Staffing Solutions, Inc., providesdrug-screening services.

Review jobdescription

Capturefeedback

Aggregatefeedback

Validatefeedback

Rewrite jobdescription and

post

Review andrevise process

Hiring managernotifies BE Director

BE Director notifiesHR firm

Update jobdescription if

necessary

HR firm beginsrecruiting process

based on gaps

HR firm screens candidates

Interview and scorecandidates

Hiring managermakes hiring

decision

Review andrevise process

Figure 5.1-2 Job Review Process

Figure 5.1-3 Recruiting and Hiring Process

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Staffing Solutions, Inc., sends candidates to interview with thehiring manager, team leader, and at least one team member.The interview is based on a formal set of questions designed todetermine if the applicant has the appropriate work attitude,desired behaviors, and skills required for the job. After thehiring decision is made by the hiring manager, candidates areoffered a position. This process is reviewed annually and im-proved with the use of DINERS Teams.

To support the Recruiting and Hiring Process, Landmark usesseveral approaches to maintain relationships with sources ofpotential employees. These include attending feast days at lo-cal culinary schools, employing college and technical schoolinterns, and participating in high school career days with jobshadowing opportunities.

Landmark has identified effective recruitment as being key toorganizational success. To meet that need, recruitment effortsare designed to identify potential employees who will succeedwithin the organization’s culture. Landmark differentiates itselfas an employer of choice by creating systems and approachesthat ensure employees (primarily students) have an opportunityto grow and develop their skills to make them desirable candi-dates for their ultimate careers. Landmark is considered to be apremier culinary training ground whose employees are highlyregarded in any industry.

Retention efforts are focused on a core group of employeeswho provide the stability and knowledge base for the organiza-tion. These efforts include supporting employees through afocus on individual development and team work Values, re-ward and recognition programs, mentoring, coaching, and anenvironment that supports our Value of Family Culture withTeamwork. Former employees return as customers for manyyears because of the sense of family they experienced whileLandmark employees. Desired retention levels with upper andlower control limits are established during the Strategic Plan-ning Process. When retention goes below the lower limit, addi-tional actions are taken to retain key staff members.

5.1c(3) Succession planning and career progressionBased on feedback from the Advisory Board, a formal succes-sion plan for leadership positions was established in 2000 thatidentifies specific individuals to be developed for each leader-ship position. The selection is based on tenure with the com-pany, career goals, talent and skills for the position, and workperformance. The succession plan includes the design of acareer path, rotational assignments, training and developmentactivities, and job shadowing of the future role. The plan isreviewed every six months by Owen Dudley and the BE Direc-tor. To support employee development at all levels, an im-provement was made in 2002 with the addition of team leadersto the plan. Two potential names are identified for each teamleader role, with a full succession plan for each individual,similar to the ones for senior leaders. This improvement has in-creased retention rates of these high-performing employees.

During performance reviews, all employees are asked to stipulatea career goal. Those that express interest in the hospitality indus-try are supported with special training and development oppor-

tunities. All employees’ development goals are accompaniedwith an action plan and an estimated timeline for completion.

5.2 Employee Learning and Motivation5.2a Employee Education, Training, and Development5.2a(1) Contribute to achievement of action plansAs described in 2.2a(4), strategic objectives drive the develop-ment of human resource-related plans, which in turn driveemployee training plans. This process ensures key needs asso-ciated with organizational performance are addressed and thattraining and education reflect short- and longer-term organiza-tional goals. For example, in 2001, a key strategic objectivewas to go beyond gathering customer perceptions of service tounderstanding what events formed those perceptions. A DINERSTeam was formed to expand the Voices system (Figure 3.1-1)to include predictive approaches and to train all employees onthe approaches and the customer service philosophy behindthem. A course was designed called “Customer First,” which isattended by every employee at least every two years.

Based on key changes in the strategic plan, training for 2005(Figure 2.2-2) will be offered on ethics mentoring, the cateringservice, the delivery service, the Foodtrak system, and strategicplanning. Also, training for all employees will continue onCustomer First and the DINERS Improvement Process, andtraining will be offered on Foodtrak functionality and under-standing performance measurement systems, as well aschanges to technology used in the business. Organizational ob-jectives are balanced with employees’ needs through inclusionof appropriate training activities into their IRDPs.

5.2a(2) Address key organizational needsEach new employee receives an Employee Handbook outliningexpectations, policies, and general work requirements. A four-hour orientation program is provided by senior leaders thatcovers basic safety (including workplace violence); diversity;ethics; customer contact standards; and Landmark’s Mission,Vision, Values, and strategic objectives. This is followed by avirtual tour of all the facilities and an introduction to the teamleader, who begins training the employee on processes, using achecklist and Foodtrak functions. An experienced employeeserves as a coach/mentor and is available for three months toanswer questions and provide guidance. In addition, new em-ployees job shadow the coach for three to five days. All criticalwritten training materials, such as the Employee Handbook,are translated into Spanish.

Basic training on ethics and safety is provided during orienta-tion, with further education and reinforcement provided regu-larly. For example, Landmark employees receive basic trainingand refresher courses on CPR techniques and procedures in theevent of a potential choking emergency. Each employee reviewsand signs an ethics agreement each year. Managers are requiredto review the key elements of the agreement with employeesbefore they sign. Ethical behavior is further reinforced at all-employee meetings as a standard agenda item.

After orientation, further reinforcement and details of safetyissues are provided by the new employee’s team leader and coach.Safety issues that are covered include OSHA requirements,

27

workplace violence, safe handling of equipment, and buildingsecurity. Refresher training is conducted during line-ups, on-line modules, and all-employee meetings, as appropriate. All-employee meetings also cover information related to food safe-ty, customer satisfaction, diversity, contact standards, serviceand selling, and menu items. Landmark requires all employeesto pass the NRA’s course for food handling and food safetywithin two months of employment—most restaurants requireonly managers and key staff members to complete this course.Managers also complete the Food Service Managers Certifica-tion offered by the Health and Human Services departmentand a certification program offered by a national culinary as-sociation. All procedures for preparing and storing food aredocumented and posted in the kitchen, and procedures are re-viewed quarterly.

Most management and leadership training courses are updatedeach year, and all managers and leaders participate. Leadershiptraining includes participation in the state and national qualityaward programs, business building seminars, accounting andfinancial courses, and other training identified as neededthrough strategic planning. In 2004 for example, all leadersparticipated in training on how to give constructive feedback.

5.2a(3) Input from employees, supervisors, and managersThe company uses several methods to gather input on trainingneeds from employees, supervisors, and managers. The keytool is the IRDP. Each employee’s IRDP addresses training thatis suggested by the individual or the supervisor to support ac-tion plans and the strategic direction. The BE Director reviewsall IRDPs to uncover themes among the plans. The EmployeeSatisfaction Survey also is used to identify training needs. In2003, as a result of the survey, the Catering Management Teamtook a refresher course in coaching skills when survey resultsshowed employees were disappointed with their supervisors’ability to assist them effectively. Also, the company is smallenough that in many cases senior leaders simply ask employ-ees about their training needs during line-ups.

In order to incorporate organizational learning and knowledgeassets into education and training, the BE Director ensuresappropriate learnings from the Foodtrak Knowledge Manage-ment system are given to training providers (such as the com-munity college) to incorporate into training activities. Anothermethod of sharing learning is by pairing a new employee witha more experienced one who serves as a coach. Informal incor-poration of knowledge assets into learning occurs through useof the Knowledge Management system during required researchfor DINERS Teams. In addition, best practices are shared atmonthly all-employee meetings as a training approach.

5.2a(4) Delivery of education and trainingTraining typically is delivered by one of five methods: on thejob, on-line, in meetings, in a classroom or seminar, or throughresearch. Although on-the-job training (OJT) is most oftenused, some training is available through community and tech-nical colleges, the NRA, line-ups, on-line refresher modules,and all-employee meetings. Coaching and the KnowledgeManagement system provide additional training methods.

Whenever a new training need is identified, the BE Directorapplies a set of criteria to determine appropriate deliverymethods. For example, the criteria for training during line-upsare that it take 30 minutes or less and require no handouts.When the beverage service was changed to include “bottom-less” sodas, for instance, training was delivered during line-up.Input from employees and managers concerning deliverymethods is provided through evaluations of current training,which ask about delivery methods. In addition, methods gener-ally are selected by employees at the same time as IRDP goals;both formal and informal delivery approaches (describedabove) are considered as training delivery options during IRDPdiscussions.

5.2a(5) Reinforce the use of new knowledge and skillsSince most training is OJT with a coach, instant reinforcementoccurs. Training conducted through line-ups is held only whenthere is an immediate need. When updates to Foodtrak weredeveloped, training was held “just in time,” and employeeswere expected to immediately use the new skills, with coach-ing from team leaders.

For training conducted by external organizations, supervisorsare required to develop a plan for their employees’ use of thenew skills, and employees are expected to share key learnings.For example, a team leader who attended a Baldrige overviewcourse was placed on the Application Writing Team and askedto share key lessons learned at the next monthly meeting.Because training is included in employees’ IRDPs, furtherreinforcement is provided, as employees are evaluated forattainment of skills. Lessons learned also are entered into theKnowledge Management system for long-term learningopportunities.

Generally, knowledge is transferred from voluntarily departingemployees through a “debrief period” after the employee hasgiven notice. During this time, the employee trains his/her re-placement, documents best practices, and ensures that accountsand activities are wrapped up. Employees who depart involun-tarily, as well as some who depart voluntarily, do not have adebrief period; however, during an exit interview, Landmarkasks about reasons for leaving, perceptions of the organization,and any other thoughts and practices the employee would liketo share.

5.2a(6) Evaluate the effectiveness of education andtraining

Training is evaluated through several methods, including for-mal evaluations at the end of all classroom training. Also, theannual employee survey includes questions designed to evalu-ate employees’ perceptions of the effectiveness of training andwhether they were able to use the new skills on their jobs, thusproviding another level of assessment.

Training also is correlated with operational improvements. If asolution to an improvement opportunity involves training, theBE Director schedules training on the process improvement.Training that is included as part of the strategic plan or includedin action plans to accomplish a strategic objective is evaluatedto some extent through the successful attainment of strategic

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goals. Training also is linked to IRDPs to help employees carryout their action plans and meet their goals. The percentage ofgoals that employees attain is an indicator of the success of thetraining provided.

5.2b Motivation and Career DevelopmentLandmark’s Values of Employee Development and FamilyCulture with Teamwork guide managers and employees alike.The company understands that what motivates one employeemay not motivate another. As a result, it is the responsibility ofmanagers and team leaders to identify the motivational factorsfor each employee. Because we are a small business, this iseasily accomplished. The foundation for motivation and careerprogression is the IRDP, which outlines employees’ careergoals, assesses current performance, and documents plans toreach career goals and meet the organization’s operationalneeds. Raises and promotions are tied to performance appraisalresults but can be given at any time at the manager’s discretion.

Informal methods used to motivate employees to achieve theirfull potential include informal techniques described previously,such as coaching, recognizing good performance, and develop-ing succession plans.

5.3 Employee Well-Being and Satisfaction5.3a Work Environment5.3a(1) Improve the work environmentLandmark contracts with an outside firm to provide servicesrelated to improving the health, safety, security, and ergonom-ics of the workplace. These services include monitoring OSHAcompliance, providing health and safety training to employees(including ergonomics), and conducting regular inspections.The BE Director is responsible for oversight of the contract andfor reviewing and monitoring performance measures. Reportsare made during the monthly executive review meetings.

Employees are asked to provide suggestions for improvementof these workplace factors during discussions at line-ups andduring IRDP sessions. Performance of measures related tohealth, safety, and security processes is monitored by teamleaders to identify areas for improvement. Opportunities to im-prove safety also are identified through regular internal inspec-tions conducted by the community college partnership andLandmark’s safety contractor. Solutions to issues are developedthrough the use of DINERS Teams. Employees participate onthese teams to improve safety if it meets their developmentplan goals or if they are considered subject matter experts.

Figure 5.3-1 shows the major health, safety, security, and ergo-nomics performance measures, along with targets, benchmarks,and the major employee groups impacted. Measures have beentracked for five years and have shown significant improve-ment. Additional information and further segmentation of themeasures by employee group are available on site.

5.3a(2) Ensure workplace preparednessThe BE Director maintains a Disaster Preparedness Plan that isupdated annually and described in 6.2b(2). The plan empha-sizes responses to the specific kinds of disasters likely inSouth Texas, including tornadoes, hurricanes, flash floods, andsevere thunder storms, as well as general business disasters,such as fires and power disruptions. It details actions employ-ees should take based on the scenario, such as stay inside,evacuate, or call rescue services. The plan is reviewed annual-ly, and a hard copy is available in each location, as well as atthe home of each member of the Senior Leadership Team. Inaddition, an electronic copy is available on the FoodtrakKnowledge Management system. The plan includes the desig-nation of ongoing activities to support disaster recovery, suchas the creation of daily backups of all data systems and weeklyoff-site storage. Other electronic system disaster recovery andsystem assurance procedures are described in Item 4.2.

Emergency exits and the evacuation process are discussed withnew employees during orientation and reviewed on a regularbasis with all employees. In addition, monthly fire, severeweather, and evacuation drills are held.

5.3b Employee Support and Satisfaction5.3b(1) Key factors affecting employee well-being,

satisfaction, and motivationThe primary tool for determining key factors that affect em-ployee well-being, satisfaction, and motivation is the EmployeeSatisfaction Survey, which has been used since 1999. This on-line survey, developed by an external consultant, is conductedtwice a year. Employees can access the survey at work or athome. The survey is modeled after a national survey by theNRA, enabling comparison to national results. The survey asksemployees to specify their job and location, along with demo-graphic data, such as gender, age, and ethnicity. Employeesrank order the satisfaction factors by importance and then ratetheir agreement from 1 to 5 (5 being “strongly agree”) withstatements related to their satisfaction with these factors. Theyalso are provided space to add written comments.

Factor Employee Group Measure Target Benchmark

Cuts Hourly Number of cuts <2 per year <3 per year

Burns Hourly Number of burns <2 per year <2 per year

Back Injuries Hourly Number of back strains <2 per year < 1 per year

Slips/Falls Hourly Number of slips/falls <3 per year <2 per year

Ergonomics Salaried Number of RSIs per year 0 0

Indoor Air Quality All Indoor air quality violations 0 0

Security All Number of security violations <2 per year 0

Figure 5.3-1 Sample Work Environment Performance Measures and Targets

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Key factors for both hourly and salaried workers include com-petitive compensation, competitive benefits, work-home lifebalance, respect and recognition, and community involvement.An additional factor for hourly workers is competent man-agers. Segmented data demonstrating the level of importanceof these factors are available on site.

Landmark also analyzes exit interview data and employeefeedback from the IRDPs to determine key factors. For allemployees, these include respect by coworkers and super-visors, benefits, and work-home life balance.

5.3b(2) Services, benefits, and policiesTo tailor benefits to a diverse workforce, Landmark uses acafeteria plan. Full-time (over 30 hours per week) and salariedemployees are given a dollar limit that they can apply to bene-fits such as a 401K plan and medical, vision, dental, and lifeinsurance. In addition, they are eligible for two weeks of paidvacation time that increases to three weeks after five years ofemployment.

After six months of employment, all employees are given anincrease in the benefits cap and can choose additional benefits,including a child care subsidy, health club membership, subsi-dized transportation, subsidized medical insurance (throughthe restaurant purchasing consortium), and disability and acci-dental death insurance (only for salaried positions). On-callworkers may purchase medical insurance at reduced ratesthrough the consortium. The benefits cap for part-time em-ployees is prorated based on the average number of hours theywork per month.

Other benefits and services include seven paid holidays, includ-ing a personal holiday, time off for community involvement/volunteer activities every year, recognition for participating inimprovement efforts, an in-restaurant dining discount, and abirthday dinner for four.

5.3b(3) Employee well-being, satisfaction, and motivationThe Employee Satisfaction Survey is the key tool for deter-mining employee satisfaction. Conducted twice a year andaccompanied by frequent reminders, the survey has a responserate of 90%. Because Landmark uses the NRA model, com-parisons are available to other top companies in the hospitalityindustry and to best-in-class benchmarks. In addition, all re-sults are segmented according to job, location, gender, age,

and ethnicity. Figure 7.4-9 lists the major results and a sampleof the segmentation.

Landmark also closely monitors employee turnover, the rate ofIRDP completion, absenteeism, sales per server, results fromexit interviews, and the work environment measures outlinedin Figure 5.3-1. When declining results occur in any of theseareas, they are investigated and improved through the use ofDINERS Teams. For example, in 2002, a DINERS Team inves-tigated a decrease in the completion of exit interviews. Theteam found that the lower numbers reflected a large decline ininterviews with servers and then linked this to a lack of timefor the BE Director to manage the interview process. Themethodology was streamlined and the process was delegated toStaffing Solutions, Inc. The current completion rate has im-proved to higher levels than in previous years.

5.3b(4) Relate assessment findings to business resultsResults from the employee survey and exit interviews, as wellas other key HR results, are reviewed regularly by senior lead-ers to identify improvement opportunities. For example, inearly 2003, employee survey results indicated that chefs’ satis-faction with “tools to do the job” was declining. This wascorrelated with an increase in the amount of time it was takingto prepare two new entrees. With the implementation of theDINERS Teams, the root cause was determined and a solutionimplemented. As a result, preparation time and the chefs’ satis-faction have both improved.

For the last two years, the company has regularly correlatedthe relationship between employee satisfaction and elements ofthe Voices system: the Voice of the Customer and Voice of theProcess. This correlation points us toward possible improve-ment areas in employee satisfaction. For example, a change inemployee retention rates automatically is analyzed to identifyany changes in customer comments or satisfaction levels.Changes in the number of part-time employees or changes inthe satisfaction of employee types are analyzed for relationshipto the performance of standard processes. In 2003, segmentedsatisfaction results showed a decline in the satisfaction ofhosts/hostesses, and a corresponding decrease was seen in thearea of customers’ satisfaction with being greeted cordiallyand promptly. An investigation revealed that a recent change inthe duties of hosts/hostesses made it difficult for them to re-spond promptly to customers.

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6.1 Value Creation Processes6.1a Value Creation Processes6.1a(1) Determine key value creation processesKey value creation processes, their requirements, in-processmetrics, and outcome metrics are shown in Figure 6.1-1. Land-mark determines its key value creation processes by using in-formation collected through the Voices system to evaluate howeach process’ outputs affect customers. Using the concepts of

Lean systems and quality tools such as value stream mapping,Landmark has identified value creation processes as those thatadd value to the dining experience according to the customer’sperspective. Mapping ensures that these processes are alignedto contribute to profitability and business success. Those thatdo not necessarily add value from the customer’s perspectivebut are required to support business are considered key supportprocesses. Over time, we have identified several processes that

6: Process Management

Process Requirements In-Process Metrics Outcome Metrics Reference

Res

taur

ants

Reservationsand Greeting

Accurate reservations System availability Customer satisfactionCustomer retention

7.2-3, 7.5-127.2-6

Prompt seating Accurate scheduling Wait time 7.1-1

Timely/courteous greeting Prompt, warm greeting Wait time 7.1-1

Order Taking Short wait time Ongoing table bussing Table set-up cycle time 7.5-9

Accurate order Send backs Customer complaints 7.1-4, 7.2-5

Responsive/informed server Up-selling Revenue per employee 7.5-1

FoodPreparation

Healthy meals Food safety/temperature Customer satisfaction 7.1-2, 7.6-5

Attractive presentation Visual standards Positive food present. 7.1-2, 7.2-3

Good taste Standardized recipes New item performance 7.5-5

As described in menu Standardized recipes Positive menu selections 7.2-3

Table Service Appropriate tempo/pace Visual observation Food cycle time 7.2-3

Table Bussing Dishes removed as finished Visual observation Table set-up cycle time 7.5-9

Cat

erin

g

Event Planning Timely event schedulingPositive client relations

Approved by customer, tokitchen 10 days prior

Customer satisfactionCustomer retention

7.2-17.2-6

Food Prep. (Same as for restaurants) (Same) (Same) (Same)

Delivery andEvent Cleanup

Delivered/served as planned Staff/vehicles scheduled 1week prior


7.2-17.2-6

HM

R

HMR DeliveryOrder Taking

Accurate orders Verify orders to kitchen24 hrs. prior to delivery


*N/A

HMR DeliveryService

Accurate, on-time delivery % On-time deliveries Customer satisfactionRepeat customers

*N/A

All

Bus

ines

s L

ines

New ProductIntroduction

New products and servicesvalued by customers

Introduction followsstandard process

Revenue/employee, Menuitem devel. cycle timeCustomer satisfaction

7.5-17.5-67.2-1, 7.2- 2

Menu DesignandRe-engineering

Favorable menu performance—semi-annual menu review Menu changes quarterly

Menu item trackingDevelopment of menuitems and review processfollowed

# New menu item ordersSend backsCustomer satisfactionMenu item developmentcycle time

7.5-57.1-47.2-1, 7.2- 27.5-6

PurchasingConsortium

Accurate delivery of products Availability of supplierinventory

Menu item shortagesSupplier performance

7.5-77.5-11

FacilityCleaning

Restaurants, restrooms, andkitchens clean and free of pests

Table/facil. cleanlinessWeekly inspection/pre-HHS scores

Customer satisfactionPre-audit scoresHHS audit results

7.2-1, 7.1-87.5-87.6-5

Figure 6.1-1 Key Value Creation Processes, Requirements, and Measures

Note: Space limitations in Category 7 permit results for only some outcome metrics and few in-process measures to be reported.*Results are not yet available for the HMR service started in the fourth quarter of 2004.

31

did not add value to customers and were not essential to sup-port business, and we have eliminated them from operations.

Voices information is reviewed annually during strategic plan-ning to determine whether any key new processes are emerg-ing. For example, in 2001, after customers indicated that thecleanliness of restrooms affects their overall dining experience,restroom cleaning emerged as a key process. Processes alsoare identified based on the determination of new service linesto be offered during strategic planning. For instance, the deci-sions to enter the catering business in 1998, add take-out serv-ice in 2001, and add the HMR Dinner Delivery Service in2004 required that new processes be designed.

Landmark’s processes create value by their effective and effi-cient design, systematic and consistent execution, and routineevaluation and improvement. All processes are designed firstto be effective and then to be efficient, using the fewest possi-ble steps. All processes are monitored using Foodtrak systemtools and a systematic process to evaluate effectiveness and ef-ficiency. Most key processes are monitored on a daily or evenhourly basis, with a few monitored weekly, and all have met-rics of effectiveness and efficiency. Foodtrak provides daily in-formation on most key metrics. Input from customers and oth-er stakeholders is gathered routinely, as described in Category3, and fed into the processes. Landmark continues to be prof-itable due to its close monitoring of metrics and keen focus oncost containment and productivity, important contributors tothe company’s business success.

6.1a(2) Determine value creation process requirementsRequirements of key processes are shown in Figure 6.1-1.These requirements are determined through the Voices system,which incorporates input from customers, employees, owners,and other stakeholders. Information gathered during the Voicesstages of before, during, and after the dining experience isused in designing value creation processes and monitoringprocess performance. As a result of customer survey responseanalyses, customer comments are translated into detailed serv-ice standards. For example, to address the key customer re-quirement of reliability, a requirement was incorporated intothe hosting process that the actual wait time to be seated notexceed the time quoted to customers. Daily line-ups include anin-depth menu and food preparation review so servers can de-scribe food accurately—reflecting Landmark’s focus on excep-tional service, another key customer requirement.

Landmark’s suppliers provide significant input to requirementsthrough their participation in reviews (4.1b) and through inputto the Knowledge Management component of the Foodtraksystem. On an almost weekly basis, brief meetings with repre-sentatives from local suppliers are scheduled by the Executiveand Sous Chefs to discuss both parties’ requirements and thequality and status of deliveries. They also frequently arrangetraining of other Landmark employees on such issues as theproper use and maintenance of dishwashers or the correct wayto describe fresh produce, seafood, and beef to customers. Themonthly executive review meeting is held with the purchasingconsortium manager, senior leaders, the Advisory Board, andrepresentatives of key suppliers. At this meeting, key metrics

are reviewed, new or revised specifications are discussed, andadditional products and services are identified.

Regulatory requirements for safe food handling are providedby the U.S. Food and Drug Administration and local HHS de-partments. The organization has implemented an HACCP plan(described in 1.2b[1]), which includes a specific documentedprocess to ensure food safety with regard to chemical, physi-cal, and microbiological hazards. The relevant HACCPs are in-corporated into Landmark’s process design and managementand include basic and routine controls, such as safe handlingand temperature monitoring.

Landmark’s owners’ process requirements are incorporatedthrough strategic planning. At the highest level, their require-ments are to maintain and enhance profitability in accordancewith the Vision, Mission, and Values. Profitability benefits theowners, employees, and the community where the business,owners, and employees pay taxes.

6.1a(3) Design processes to meet all requirementsAll processes (value creation and support processes) are de-signed by DINERS Teams and team leaders using a commonnine-step approach shown in Figure 6.1-2. Processes are de-signed by starting with the final desired process outcomesbased on customer and stakeholder requirements and thenworking back through the steps required to reach those out-comes. Existing processes may be periodically redesignedusing these same steps:

1. Determine the desired outcomes based on customer andstakeholder requirements.

2. Identify process outputs and establish end-of-process met-rics and targets with comparative data—for example, cy-cle time, productivity, and cost containment. Informationfrom the Foodtrak Knowledge Management system isevaluated to determine recent changes that affect theprocess, recent modifications to the specific process, andthe best design.

3. Develop the “To Be” flowchart to produce the desiredoutputs, using the fewest possible steps and incorporatingvisual management and value stream mapping.

4. Establish in-process metrics and targets, and identify relat-ed support processes required for effective performance,including information management and other technology.

5. Pilot the process, and measure the results. 6. Adjust and revise the process steps and metrics based on

the pilot.7. Finalize and document the process in Foodtrak with flow-

charts, procedures, and updates to training, and add to theDINERS calendar for a formal annual evaluation.

8. Communicate the process to all employees, and trainthose who will be executing the process (including em-ployees who will be cross-trained in the process).

9. Monitor and evaluate ongoing process effectivenessthrough indicators and the DINERS Improvement Processdescribed in 6.1a(6).

Landmark stays abreast of trends and best practices in therestaurant industry, including innovations in technology,

32

through participation in the NRA, the informal restaurant con-sortium, and other professional organizations. As a result ofbenchmarking a leading national restaurant chain, Landmarkimplemented the Knowledge Management component of theFoodtrak system, for instance.

Technology changes are evaluated and incorporated duringStep 4 of the design process. Technological features that havebeen incorporated into Landmark’s processes include theFoodtrak Server System (4.1a[1]). Landmark was one of thefirst independent companies in the industry to adopt severalinnovations that are now becoming standard industry practice,such as the use of wireless POS/PDA units, the on-line reser-vation system, the wireless communication system betweenservers and the kitchen, suppliers’ access to the on-line inven-tory system, and the Food Preparation System.

Organizational knowledge is incorporated into process designusing a variety of methods. First, to design processes, Land-mark uses cross-functional and cross-restaurant teams (includ-ing at least one chef and one supplier for food preparationprocesses), facilitated by a process team leader. The monthlyteam leader meeting is an important mechanism to share the

status and results of processes. In addition,Step 2 of the design process requires a formalsearch of the Knowledge Management sys-tem for relevant information.

Once processes are finalized, they are docu-mented on paper and in Foodtrak, which isused to monitor the day-to-day performanceof processes. The use of Foodtrak to docu-ment and manage processes provides rapidresponse to changing needs. Regular reviewof performance measures (4.1b) providesvisibility into the need for agility in theseprocesses.

Documenting all processes in Foodtrak helpsensure procedures are followed and key met-rics are monitored. Process changes are com-municated in line-ups, team leader and man-agement meetings, and in training. Employeesare trained to execute the process steps asdesigned to minimize defects and variation inservice.

6.1a(4) Key performance measures or indicators

Metrics for each of the key value creationprocesses are shown in Figure 6.1-1. Hardcopy and on-line process documentation isthorough and easy to understand. In additionto documentation, Landmark uses a variety ofother mechanisms in its day-to-day operationof processes to ensure they meet process re-quirements. These include training and on-the-job reinforcement for employees, visualmanagement and job aids, walk-throughs forrestaurant and catering events, and twice daily

line-ups (one for lunch and one for dinner at each restaurant)to manage daily operations and process performance. The line-up is a best practice adopted from a Baldrige Award recipientand is responsible in part for the high level of employee em-powerment and service vital to the continued success of thebusiness.

These practices and the ongoing review of process metrics on adaily, weekly, and monthly basis ensure that processes are exe-cuted as planned. In-process measures provide leading indicatorsof process performance. The use of these measures is incorpo-rated into process steps to ensure processes meet requirementsand standards. The Menu Design and Re-engineering Processprovides an example of how key value creation processes aremanaged with data. The Landmark menu remains fairly con-stant, with only 20% of the items changing to reflect seasonalor daily specials. The performance of specific menu items istracked daily through the Foodtrak system, with performancelevels plotted on a quadrant chart to determine the profitabilityand popularity of items. When new menu items are created, thedish is prepared and tested at least three times to ensure that itmeets standards for flavor, odor, texture, color, and generalcharacter. Testers, who include chefs, other employees, the

6. Adjust andRevise

1. Determine ProcessOutcomes

2. Identify Outputs andOutcome Metrics

3. Develop “To Be”Flowchart

4. Establish In-ProcessMetrics

5. Pilot and Measure

7. Document in Foodtrak

8. Communicate and Train

9. Evaluate ThroughDINERS

Cycle TimeProductivity

Costs

StakeholderRequirements

Meets Require-ments?

No

Yes

CustomerRequirements

Figure 6.1-2 Process Design Process

33

owners, and some customers, record their evaluations on tast-ing checklists. If the feedback is positive, a standardized recipemust be prepared according to established formulas. Recipescontain information on ingredients, nutritional value, andpreparation methods for quantities of 10 and 25. The recipealso is costed-out using a standard Recipe Costing Worksheetto ensure that adding the dish will result in positive contribu-tion margins. Both the recipe and the Recipe Costing Work-sheet are approved by the Executive Chef and entered into theFoodtrak system (accessible to both kitchens) before the dishis added to the menu.

Daily Foodtrak reports on the Scorecard, including daily re-sults and trend data, are posted for review by all employees.Any issues are discussed in the daily line-ups, which take be-tween 10 and 25 minutes and include daily announcements,customer feedback, menu item descriptions and methods topresent them, and samples of menu specials. In addition, to en-sure communication across shifts and restaurants, managers atthe restaurants and headquarters hold a brief conference callbetween shifts. This ensures carryover matters are reviewed inline-ups at both restaurants and provides an opportunity forsenior leaders to emphasize a particular concept for that day.

Numerous in-process customer and employee inputs are pro-vided during the execution of these processes through theVoices system (Figure 3.1-1). Inputs are strategically designedto evaluate the performance of processes quickly so that serv-ice issues can be corrected before they become complaints.Inputs from suppliers and partners (e.g., Dinner Delivery Ser-vices distribution locations) are gathered through frequent con-tact and periodic performance evaluations to ensure the suc-cessful accomplishment of key processes.

6.1a(5) Minimize costs of inspections, tests, and auditsLandmark minimizes costs associated with inspections, tests,and audits by focusing on early detection of errors and defects.Numerous early checkpoints are provided in processes, such aswalkthroughs and line-ups. Verification that processes arebeing performed as designed takes place multiple times a daythrough observation and at least daily through the review ofprocess performance metrics. While actual audits by the vari-ous health departments (city and state) are conducted infre-quently (usually only once or twice a year) and on a surprisebasis, the philosophy of Landmark is to always operate thekitchens at the highest level of cleanliness and exceed regula-tions. Weekly “pre-audits” are conducted by trained studentsfrom the culinary arts program of the community college toevaluate compliance to state and local health departmentcodes. These quick and economical reviews keep the restau-rants “audit-ready” and serve as additional forms of trainingand on-the-job reinforcement. They also help prevent expen-sive fines or citations by a health department. Landmark hasnever received a citation and always earns high scores onactual health department audits.

6.1a(6) Improve value creation processesLandmark has adopted a version of the PDCA cycle andadapted it over time into a six-step improvement process re-ferred to as DINERS (Figure 6.1-3).

Define the current state and potential opportunity (must linkto strategic direction and incorporate Voice of the Processor Voice of the Customer data).

Investigate and validate the root cause.Nominate possible solutions and metrics of success.Execute the improvement plan.Review results of the improved process and associated

performance metrics; repeat and make adjustments asnecessary.

Systematize by documenting the revised process, enteringchanges and learnings into the Foodtrak Knowledge Man-agement system, communicating with all employees, andincorporating changes into training.

Each key process is evaluated and improved annually throughthe formal DINERS Improvement Process according to an es-tablished schedule. In addition, employees are trained to identifyproblems for which a DINERS Team should be initiated out-side the annual cycle. The process team leader is responsiblefor facilitating a cross-restaurant and cross-functional DINERS

Team. All employees are trained in simple quality tools, andthese are used during the various DINERS ImprovementProcess steps. For example, check sheets, histograms, andPareto charts are used to record defects, and fishbone chartsare created to brainstorm potential root causes. Many of thesequality tools are generated automatically by Foodtrak.

During the DINERS review, process performance for the pre-vious period and longer-term trends are analyzed. Updatedtechnology, information about best practices, and organization-al knowledge are brought into the process through the Definestep by reviewing data in the Knowledge Management system.The DINERS Team makes a presentation to the owners andmanagers upon completion of the DINERS ImprovementProcess, summarizing the key steps in the process and the

DINERS

(IdentifyImprovement

Need)

DefineCurrentState

InvestigateRoot Cause

NominatePossibleSolutionsExecute

ImprovementPlan

ReviewResults

Systematize

Figure 6.1-3 DINERS Improvement Process

34

resulting changes. Improvements are shared locally and just intime during daily line-ups. Process changes also are sharedmonthly in the team leader process meeting. Changes must bedocumented by the appropriate team leader in Foodtrak and in-cluded in employee training guidelines within ten days. In thisway, training for employees always is current with the most re-cent process changes.

An example of a significant process improvement activity isthe inclusion in the Menu Design and Re-engineering Processof the mandatory standardized Recipe Costing Worksheets anda disciplined process to ensure that only healthy, good tasting,and profitable food is presented to customers. While a simpleprocess existed when there was only one restaurant, as thecompany expanded into two restaurants and then more recentlyinto catering and the Dinner Delivery Service, the need for amore rigorous process to maintain profitability targets wasclear. The process continues to be refined as it cycles throughits annual DINERS reviews.

6.2 Support Processes and Operational Planning6.2a Support Processes6.2a(1) Determine key support processesFigure 6.2-1 identifies the key support processes, along withkey requirements, in-process measures, and outcome meas-ures. As described in 6.1a(1), key support processes are deter-mined at the same time and in a similar fashion as key valuecreation processes. As a strategic decision, many supportprocesses are outsourced so Landmark is able to focus on its

core competencies. Key support processes are identified eitherthrough Step 4 in the Process Design Process (Figure 6.1-2),which asks what support processes are required for effectiveoperation of key processes, or through identification duringstrategic planning. For example, a more comprehensive Disas-ter Preparedness Plan is an outgrowth of the business disrup-tions as a result of September 11, 2001. The process was im-proved following the massive blackout in the eastern and partsof the midwestern United States in August 2003, and again fol-lowing the hurricanes in the southeast in September 2004. ThisDisaster Preparedness Plan now is tested monthly.

6.2a(2) Determine support process requirementsRequirements of key support processes are determined byprocess owners and suppliers (Figure 6.2-1). These require-ments are determined similarly to value creation processes,with input from the Voices system (Figure 3.1-1). Informationgathered routinely from the Voices system, including Voice ofthe Process, is used to determine the requirements for and todesign support processes.

To the extent possible, the company also links support process-es to value creation processes. Employees working in valuecreation processes are considered internal customers of sup-port processes. Employees in support processes are trained tounderstand how their work contributes to the services expectedand received by external customers. Key value creation processresults are shared with support employees. Customer feedbackalso is translated back into support process requirements.

Process Requirements In-Process Metrics Outcome Metrics Reference

Info. Management System available Routine system maintenance System availability 7.5-12

Human ResourceManagement

Employees trained Employees with IRDPsSuitable employees hired Quick hiring processAccurate/timely payrollCost-efficient payroll

# Employees trained# Employee IRDPs# Applicants prescreenedInterviewed within 24 hrsTimely new hire informationTimely payroll info. entry

# Empl. cross-trained to standards# Employee IRDPs on targetEmployee turnover rateHiring cycle time

Cost per payroll

7.4-77.4-57.4-37.4-2

SupplierManagement

Suppliers provide serviceto contract specs. forquality and timelinessMeet supplierrequirements (see FigureP.1-5)

Service performance:• Equipment maintenance• Trash removal• Grease removal• Health pre-inspections• Temporary staffing• HR recruiting• Payroll processing• Financial & tax reporting

Supplier performance

HHS audit results

Hiring cycle timeSupplier satisfactionFinancial audit findings

7.5-11

7.6-5

7.4-2

7.6-4

DisasterPreparedness

Company and processesable to resume aftershort- and long-termdisruptions

Location and process plansin place, reviewed withemployeesMonthly kitchen fire drills Annual disaster drills

Time to resumption ofoperations

Advertising andMarketing

Effective ads andpromotions

Increase in meals served dueto promotions

Market sharePositive referrals

7.3-67.2-7

Figure 6.2-1 Key Support ProcessesNote: Space limitations in Category 7 permit results for only some outcome metrics and few in-process measures to be reported.

35

6.2a(3) Design support processesSupport processes are designed using the same design processshown in Figure 6.1-2. Changes in technology and organiza-tional knowledge are incorporated into the design of theseprocesses during Step 4 of the design process. Cycle time, pro-ductivity, cost control, and other efficiency factors are consid-ered throughout the design process.

An example of how Landmark incorporates the potential needfor agility into support processes is seen in the hiring process.The ability to quickly screen potential entry-level employees,select appropriate candidates, and communicate hiring deci-sions to them is critical in the restaurant industry. A DINERSTeam implemented a process improvement that enables the HRfirm to rapidly screen applicants and for Landmark to commu-nicate hiring decisions to applicants within 24 hours of beinginterviewed. This led to a reduction in the overall hiring cyclefor hourly employees (from employment opening to positionoffering) to two weeks and allows Landmark to hire neededemployees as soon as they become available and before theyare hired by competitors.

6.2a(4) Key performance measures or indicatorsFigure 6.2-1 shows the in-process and end-of-process measuresused for key support processes. Support processes are managedsimilarly to value creation processes, with team leaders desig-nated for monitoring and improving performance. Day-to-dayoperations help ensure that key performance requirements aremet by the incorporation of employee training and standard-ized work processes, including elements of Lean systems foradministrative areas. Also, support processes are guided byelectronic promptings of the Foodtrak system, which supportstandardization in performing these activities. In addition, theuse of Foodtrak ensures that when improvements are made inprocesses, the changes are cascaded to all employees by updat-ing process procedures in the system. Line-ups for supportprocess employees occur daily and link activities to relatedvalue creation processes that serve customers.

The Voices system ensures that team leaders and teams receivecustomer input in managing and improving support processes.This input is part of the standard review of support processesin the monthly meeting.

6.2a(5) Minimize cost of inspections, tests, and auditsIn order to minimize the cost of inspections, tests, and auditsof support processes, these processes undergo regular reviewsby managers and team leaders to ensure process complianceand performance to standards. Performance measures for sup-port processes are reviewed and reported monthly by managersduring the executive review. As part of the Supplier Manage-ment Process, suppliers participate in the monthly meetings, aswell as frequently in daily operations of the restaurants. Costsof inspections and audits for outsourced services are addressedby including responsibility for process observations and reportsin the contracts of outsourced services. For instance, there arevery high requirements for outsourced payroll processing, andLandmark uses a national firm that is the industry leader inthis area.

6.2a(6) Improve support processesSupport processes are improved using the DINERS Improve-ment Process (Figure 6.1-3). Support processes are reviewedannually by DINERS Teams for needed improvements of ap-proaches or measures. One improvement made as a result ofthe DINERS review is the real-time turnaround for key processmetrics (always within 24 hours, and hourly for some metrics),including cost, cycle time, and productivity. This is the result ofmaking improvements to both the Foodtrak system and supportprocesses. The improved, 24-hour cycle time for communicat-ing hiring decisions mentioned above is another example.

Improvements to support processes are shared first departmen-tally and then with internal customers. Improvements are in-corporated into training modules, and employees receiveupdated training once improvements are documented. Improve-ments and learnings are documented in Foodtrak to ensurethey are used for organizational learning and innovation ap-proaches for other processes.

6.2b Operational Planning6.2b(1) Financial resource availabilityFinancial resources to support Landmark operations and plansare determined and allocated through the annual BudgetProcess that follows strategic planning. During this activity,each department submits budget requests to support its needsto continue operations “as is.” The department also presentsbudget allocations (and a cost-benefit analysis) to accomplishaction plans outlined during strategic planning—particularlythose that require large investments, such as new business in-vestments. Once all budget requests are made, the LeadershipTeam reviews the requests, prioritizes them based on opera-tional and investment priorities, and allocates funds appropri-ately. For budget items that are not funded, discussions are ini-tiated with the requestor to investigate alternatives and/or apotential delay of activities. This process ensures that financialrisks associated with each area of the operation, as well as thefinancial risks of new investments, are reviewed each year toensure the optimum use of the company’s limited financialresources.

6.2b(2) Continuity of operationsLandmark’s Disaster Preparedness Plan described in 4.2a(3)and in 5.3a(2) is designed to ensure that operations can resumewithin a reasonable amount of time following a disaster oremergency. This plan, managed by the BE Director, ensures ITsystems are backed up and available. It also ensures that em-ployees are safe during and after an emergency and that theyknow the procedures for returning to work and helping to getoperations back in order. This plan covers procedures for gen-eral business emergencies, as well as various situations that arespecific to disasters likely in South Texas, such as tornadoes,hurricanes, flash floods, and thunder storms.

36

7.1 Product and Service Outcomes7.1a Product and Service ResultsFirst impressions tend to be the ones that have a lasting im-pact. Some of the most important measures of service resultsare those related to the first contact with customers. The timeto wait to be seated (with or without a reservation) and the

time to be served are key measures (Figure 7.1-1). Wait timewith or without a reservation measures the average time ittakes to seat a customer during the busy periods of the day(lunch and dinner rushes) at both restaurants. The wait time forfirst service measures the average time between the customer’sarrival at the restaurant and when he/she is served any food orbeverage (e.g., rolls, water, wine). These results demonstratesteady improvement, reflecting the success of the DINERS Im-provement Process. Data on competitors’ average wait timewith reservations come from Employee Dining Reports andSecret Diners Association Reports.

Landmark chefs and other staff members sample the food dur-ing various shifts at both restaurants to ensure it meets estab-lished standards of acceptability for several measures of im-portance to customers. These measures include the correctpresentation, appropriate temperature, and timely delivery offood (Figure 7.1-2). Information to validate the standards forthese measures is gathered through verbal, on-the-spot cus-tomer satisfaction feedback as part of the Voices approach de-scribed in Item 3.1.

Order accuracy is another factor of importance to customers.Landmark monitors its ability to capture the customer’s desiresthe first time (e.g., if a customer asks for mashed instead ofbaked potatoes, the order placed must reflect the substitution).Results for Landmark’s restaurants and its catering, take-out,and HMR Dinner Delivery Services are shown in Figure 7.1-3.Comparative data shown in the graph are from the externalcustomer satisfaction survey, which identifies a “best competi-tor” for each market. For results in this Item (Item 7.1), Com-petitor 1 is in Houston, and Competitor 2 is in Galveston.

The quality of both services and products also is measured bytheir acceptance by the customer. Send Backs (Figure 7.1-4)are measured at both restaurants as a percentage of all ordersreturned due to incorrect cooking (e.g., a steak that is too rareor too well done) or order fulfillment (e.g., missing vegetablesor a substituted menu item). Correlation of the results for both

7: Business Results

0

10

20

30

40

50

2000 2001 2002 2003 2004

Min

utes

With Reservation Without Reservation1st Service Goal with ReservationComp. with Reserv.

�Good

70%

75%

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004

Presentation TemperatureTimeliness Verbal Sat.Verbal Sat. Goal

�Good

75%

80%

85%

90%

95%

100%

2001 2002 2003 2004

Landmark Harrisburg Lightkeeper Rest. Compet. 1

Rest. Compet. 2 Take-out Take-out Compet. Catering

Catering Compet. HMR Delivery Restaurant Goal Take-out Goal

Catering Goal

�Good

Figure 7.1-1 Wait Time for Seating and Service

Figure 7.1-2 Standards of Acceptability for Food

Figure 7.1-3 Order Accuracy

37

restaurants in Figures 7.1-3 and7.1-4 indicate that the increase inOrder Accuracy also increases cus-tomer satisfaction as measured bySend Backs.

Timely delivery of an order is con-sidered an important component ofservice not only for Landmark’srestaurant customers but also forcustomers of its other services. Infact, Timeliness of Delivery (Figure7.1-5) is of greater importance tocatering and take-out customers.During analysis of results for thismeasure, data are disaggregatedinto appropriate segments. Resultsfor the timeliness of Landmark’scatering service have consistently demonstrated best-in-classperformance, while those for the timeliness of the take-outservice have shown significant improvement over time andnow exceed the best competitor’s level.

Cooking Time (Figure 7.1-6) measures the time it takes thekitchen staff to prepare orders. Benchmarks are not necessarilya comparison of the same approach, given the wide variationin menu items and food preparation methods, but Landmarkstrives to improve cycle time while complying with safe cook-

ing methods and standard recipes. Decreased cooking time isdesirable for customer service; however, average cooking timeshould not drop below ten minutes, as this would impact thequality of food.

Server Pick-up Time (Figure 7.1-7) measures the number ofminutes it takes the server to pick up orders once they are pre-pared. Landmark facilitates keen timing and communicationbetween the kitchen staff and servers through the Foodtrak sys-tem and has established a target of 1.5 minutes for server pick-up. Comparative data are collected through reports by mem-bers of the informal restaurant consortium and are validatedthrough Employee Dining Reports and Secret Diners Associa-tion Reports.

Along with the initial greeting and the seating process, TableCleanliness (Figure 7.1-8) is part of the first impression that iscritical to customers’ satisfaction. Average scores are moni-

tored throughout the year as an indicator of compliance withprocess requirements. The maximum score on the checklist fortable cleanliness is 6.0.

05

10152025

2000 2001 2002 2003 2004

Min

utes

Landmark Harrisburg LightkeeperGoal Compet. 1 Compet. 2

Figure 7.1-6 Cooking Time

0

1

2

3

4

2000 2001 2002 2003 2004

Min

utes

Landmark Harrisburg

Lightkeeper Target

Competitor 1 Competitor 2

�Good

Figure 7.1-7 Server Pick-up Time

70%

75%

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004

Landmark Harrisburg Lightkeeper

Competitor 1 Competitor 2 Take-out

Take-out Competitor Catering Catering Comp. 1

HMR Delivery Goal

�Good

Figure 7.1-5 Timeliness of Delivery

0

0.5

1

1.5

2

2.5

3

3.5

4

2000 2001 2002 2003 2004

Perc

enta

ge

Weekend Dinner Lunch

Lightkeeper Harrisburg Target

Benchmark

�Good

Figure 7.1-4 Send Backs

38

7.2 Customer-Focused Results7.2a Customer-Focused Results7.2a(1) Customer satisfactionFigure 7.2-1 shows the segmented results for two types of cus-tomer satisfaction surveys. The external survey is conductedby an external third party throughout the year, with results ag-gregated and segmented at the end of the year. Internal survey

results are compiled from surveys delivered with the check orentered on-line. Both the external and internal surveys use aLikert scale of one to five, with four being “satisfied” and five“extremely satisfied.” Unless noted otherwise, results for thisItem (Item 7.2) show the combined percentage of four and fiveratings. Results of these surveys show the effects of the Sep-tember 11 attacks in 2001, as well as three major improvementactions in 2001 and 2002: implementation of Customer Firsttraining, changes in Foodtrak, and changes to our processes toimprove cycle time and service. Also, although overall custo-mer satisfaction results are not yet available for the new HMRDinner Delivery Services, we set a 2004 goal of 92.4%.

On surveys, customers rate their satisfaction with the qualityof the dining experience. Figure 7.2-2 shows results for thismeasure from our internal surveys. Landmark has seen a con-sistent increase in satisfaction with quality. Although satisfac-tion ratings are highest for business customers, the family andtourist customer segments have shown significant increases insatisfaction.

Processes include frequent verbal checkpoints (specified timeswhen staffmembersask cus-tomers fortheir feed-back) tomonitorprocessflow andevaluatesatisfactionlevels, asdescribed in3.1a(2). Thenumber ofpositive ornegativecommentsfor variousareas areinput intoFoodtrak

and then aggregated for review. Results for the nine main areasof evaluation are shown in Figure 7.2-3. Significant increasesin the percentage of positive comments can be seen in manyareas.

Additional information on overall customer satisfaction is col-lected through Secret Diners Association and Employee DiningReports (Figure 7.2-4). Secret Diners Association Reports areprovided to participating restaurants on a quarterly basis, withan aggregated report provided annually. Employee Dining Re-ports, described in 5.1b, are compared to the Secret Dinersdata for consistency and trends. These also are analyzed withother Voices results, such as verbal comments (Figure 7.2-3)and the input from the customer surveys (Figures 7.2-1 and7.2-2).

33.5

44.5

55.5

6

2000 2001 2002 2003 2004

Scor

e

Landmark Harrisburg LightkeeperGoal Compet. 1 Compet. 2

�Good

Figure 7.1-8 Table Cleanliness

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

All External

Surveys

All Internal

Surveys

Harrisburg

Dine-in

Harrisburg

Take-out

Lightkeeper

Dine-in

Lightkeeper

Take-out

Catering

2000 2001 2002 2003

2004 Goal Baldrige Recip. Best in Class

�Good

Figure 7.2-1 Overall Customer Satisfaction

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004

All Segments Families

Business Tourists

Our Family First Time

Goal Best-in-Class

�Good

Figure 7.2-2 Customer Satisfaction with Quality (Internal Surveys)

Landmark conducts a combined analysis of two related results:complaints and meals that are complimentary (“comp’ed”) be-cause of customer dissatisfaction. Both are important indica-tors of process performance and customer dissatisfaction, as

described in 3.1a(2). Figure 7.2-5 shows the results for thenumber of complaints before, during, and after the dining ex-perience and for the value of the comp’ed items. Customerfeedback—including complaints—before and during the din-ing experience is encouraged and viewed as positive, becauseresolution of problems at this time may actually increase cus-tomer satisfaction. However, complaints after the dining expe-rience are more difficult to address; therefore, they are consid-ered more problematic and are closely monitored for processperformance. Comparative information for comp’ed meals isgained through the informal restaurant consortium. In 1998,Landmark expanded its definition of a complaint to includeany comment or behavior that is considered negative. Becausecompetitors do not use this higher standard, Landmark’s actualcomparative performance is better than the results imply.

7.2a(2) Customer-perceived valueCustomer retention, including repeat customers, is an indicatorof customer satisfaction. Figure 7.2-6 shows these results forrestaurant and catering customers. Customer retention is meas-ured by the number of catering customers and members of theOur Family frequent diners program, as well as the percentageof those customers who dine at the restaurants or use the cater-ing services more than once over a 12-month period. Retentionis high in both groups of customers, indicating the success oftargeted activities to build relationships, as described in3.2a(1).

Figure 7.2-7 shows the number of positive referrals receivedfrom various sources, as well as the percentage of customerswho, through referrals, have converted to, or joined, the OurFamily frequent diners program. The largest number of regularcustomer referrals consistently comes from advertising, whileexisting members of the Our Family program are the most ef-fective source of referrals for new program members. Thisanalysis led to the addition of incentives for Our Family mem-bers who refer customers to the program.

Focus groups are an important mechanism for determiningcustomer requirements and potential improvements. Figure7.2-8 shows information acquired recently from various focusgroups.

7.3 Financial and Market Results7.3a Financial and Market Results7.3a(1) Financial performanceLandmark measures gross profit per dining seat (Figure 7.3-1)as a general indicator of its effectiveness in controlling coststhrough the restaurant purchasing consortium while increasingsales through up-selling. In Figures 7.3-1 and 7.3-2, Landmarkcompares itself to the upper quartile of two groups of steakand seafood restaurants as defined by the National RestaurantAssociation; the industry comparison includes steak andseafood restaurants of all sizes, including large chain restau-rants, while the small restaurant comparison is limited to steakand seafood restaurants comparable in size to Landmark. Theupper quartile represents the median of the upper 25% of re-spondents—data on the industry best performance are notavailable.

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004

Secret Diners for LandmarkEmployee Dining Report for LandmarkSecret Diners CompetitorEmployee Dining Report Competitor

�Good

'

Figure 7.2-4 Secret Diners Association and EmployeeDining Reports

0

100

200

300

400

500

600

2000 2001 2002 2003 2004

$0

$5,000

$10,000

$15,000

$20,000

# Complaints Before # Complaints During

# Complaints After # Complaints Total

# Complaints Compet. # Complaints Goal

$ Comp’ed Meals $ Comp’ed Goal

$ Comp’ed Compet.

�Good

Figure 7.2-5 Complaints and Comp’ed Meals

Positive Eval. Areas 2000 2001 2002 2003 2004Food Quality 97.4% 97.9% 98.2% 99.1% 99.7%

Food Presentation 91.8% 91.2% 93.1% 95.2% 95.7%

Food Delivery 88.5% 88.3% 88.5% 89.1% 89.4%

Food Cycle Time 88.0% 88.1% 88.4% 88.6% 92.3%

Server Courtesy 93.5% 94.1% 95.5% 95.3% 96.1%

Greeting by Host(ess) 98.5% 99.1% 99.5% 99.2% 99.4%

Reservation 99.5% 100.0% 100.0% 100.0% 100.0%

Wait Time 77.5% 76.5% 81.5% 88.3% 93.1%

Menu Selections 98.0% 98.3% 98.6% 99.1% 99.4%

Figure 7.2-3 Sample Aggregated Verbal Comments

39

40

Results for Landmark’s Return on OwnerEquity (Figure 7.3-2) (return to the own-ers on the capital provided) demonstrateimprovement over time. In addition,Landmark has consistently surpassed thesmall restaurant group upper quartile andhas equaled the industry upper quartilefor the past two years.

The Current Ratio (Figure 7.3-3) meas-ures Landmark’s ability to meet currentliabilities with current assets. Figure 7.3-3shows two levels for Landmark’s currentratio: Landmark 1, which includes Land-mark’s reserve fund of three months’salaries and wages (2.2a[1]) and Land-mark 2, which excludes this reserve fund.Landmark’s goal is to maintain an averageratio (excluding the reserve fund) of 2:1,which represents a safety net, yet indi-cates a good fiduciary policy of investingprofits in growth.

Figure 7.3-4 shows a summary of Land-mark’s 2004 profit and loss statement.Additional years’ comparisons can be re-viewed on site. Landmark tracks its profitand loss statements as a ratio to totalsales. Information can be generated on analmost real-time basis with the Foodtraksystem. Landmark compares favorablywith the industry standard for steak andseafood restaurants due to its lower costsand higher sales per seat. Landmarkstrives to maximize certain elements(those shown with an *) to get earningsbefore interest and tax (EBIT) rates high-er than the industry standard.

Landmark’s membership in the SecretDiners Association (4.1a[2]) enables it to

compare itself to 43other area restaurants.The association aggre-gates and providesfinancial informationto its members (namesof the restaurants areprotected in the re-ports). Although Land-mark is a relativelysmall restaurant com-pared to other restau-rants in the association,its revenue growthcompares favorablywith that of the topSecret Diners restau-rants (Figure 7.3-5).

0

50

100

150

200

250

2000 2001 2002 2003 2004

Num

ber

60%65%70%75%80%85%90%95%100%

Our Family members Other customersAdvertising Drive-byPhone listing % Convert Our Family% Convert other customers % Convert advertising% Convert drive-by % Convert phone listing

�Good

Figure 7.2-7 Positive Referrals

0

500

10001500

2000

2500

30003500

4000

4500

2000 2001 2002 2003 2004 2000 2001 2002 2003 2004

Num

ber

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0%

# Customers % RetainedRetention Goal Industry Retention

Our Family Members Catering

�Good

Figure 7.2-6 Customer Retention

Topic Discussed2004 GeneralFocus Group

2004 AdvisoryBoard FocusGroup

2004 Our Family Focus Group

Increasing services to Our Family members � �

Menu and visual presentation of delivery �

Increasing the use of technology in the serviceprocess

� � �

Redesign of parking lots � � �

Menu change suggestions (e.g., adding applesauce to healthy kids menu)

� �

New opportunities for community involvement � � �

Advertising suggestions �

Strengthening ethics and governance �

Server process improvement �

Figure 7.2-8 Focus Group Results

41

All restaurants showed a tremendous growth rate in 2002 aftersustaining substantial losses in the fourth quarter of 2001.

7.3a(2) Marketplace performanceLandmark uses data from the NRA, plus information from theSecret Diners Association, to help determine its percentage ofthe market. Landmark’s goal is to hold a 10% share in the lo-cal small steak and seafood restaurant market (Figure 7.3-6).Its performance has improved over the past four years and isclosing the gap to this goal and to the nearest restaurant com-petitor. The Secret Diners Association just started trackingcatering market share in 2004. Harrisburg catering’s nearestcompetitor has a 1.9% market share. There is no market shareinformation for the HMR Dinner Delivery Service, becausethere are no other competitors in the Houston area at this time(as far as Landmark is aware).

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2000 2001 2002 2003 2004

Landmark IndustryGoal Small Rest.

�Good

Figure 7.3-1 Gross Profit per Seat

0246

2000 2001 2002 2003 2004

Landmark 1 Landmark 2Goal Industry Avg.

�

Figure 7.3-3 Current Ratio

0

2

4

6

8

10

2000 2001 2002 2003 2004

% R

etur

n

Landmark IndustryGoal Small Restaurants

�Good

Figure 7.3-2 Return on Owners’ Equity

Figure 7.3-4 2004 Profit and Loss Summary

Summary Items Industry LandmarkSales 100.0% 100.0%

Cost of sales* 35.2% 30.3%

Gross profit 64.8% 69.7%

Controllable expenses* 50.0% 49.6%

Controllable profit 14.8% 20.1%

Occupancy costs* 8.1% 8.1%

EBIT 6.7% 12.0%

3456789

10

2000 2001 2002 2003 2004

Perc

ent

Landmark Rest. ARest. B Goal

�Good

Figure 7.3-5 Restaurant Revenue Growth

50

60

70

80

90

100

2000 2001 2002 2003 2004

% S

eats

Occ

upie

d

Landmark Harrisburg LightkeeperGoal Benchmark Indust. Avg.

�Good

Figure 7.3-7 Occupancy Rate

0%

2%

4%

6%

8%

10%

Overall Harrisburg Lightkeeper Catering

2001 2002 20032004 Goal

NearestRestaurantCompetitor

�Good

Figure 7.3-6 Market Share

42

Landmark is not the largest restaurant in either Houston orGalveston, but it maintains the third-highest occupancy rate ofthe restaurants in Houston and the highest in Galveston (Fig-ure 7.3-7). Reconfigured seating resulting from analysis ofdata on dining party size (2.1a[2]) has improved the occupancyrates at both restaurants. In addition, the current rate is ap-proaching the 90% level of the benchmarked restaurant thatwas a catalyst for this improvement effort.

While the take-out and catering revenue streams have been inplace for a few years, they still are considered “new” from abusiness perspective. Figure 7.3-8 shows growth rates for thesetwo business lines, which are intentionally kept below 15% inorder to manage the pressures on the company and its employ-ees. The Board of Directors recently added the HMR DinnerDelivery Services program, which has a similar approach tomanage growth without restricting market demand. There areno benchmarks for this performance measure other than goalsset by the company (Figure 2.2-4).

7.4 Human Resource Results7.4a Human Resource Results7.4a(1) Work system performanceLandmark’s work system measures reflect its focus on team-work and its Value of Employee Development. One key meas-ure is the percentage of both hourly and salaried positionsfilled from within the company (Figure 7.4-1). Landmark hasmade steady progress in this area following a decision duringthe 2000 Strategic Planning Process to focus on internal pro-motions to increase employee retention. At this time, Land-mark also began to establish targets for the next year’s internalpromotions. The benchmark in Figures 7.4-1–7.4-3 is based ondata for hourly positions from a Baldrige Award recipient.

Landmark has shown steady progress in another work systemmeasure, the cycle time for hiring (Figure 7.4-2). We track thetime from the position opening to the time of an employmentoffer. The decrease in the hiring cycle time, particularly forhourly employees, reflects the success of a DINERS Teamprocess improvement that facilitates rapid screening and com-munication of hiring decisions.

We also track employee turnover rates, as shown in Figure 7.4-3.Employee turnover, particularly for hourly positions, is a chal-lenge for restaurants; some positions may experience multipleturnovers within a year (resulting in a turnover rate exceeding100%). We are below the industry average and making

progress toward the performance level of our benchmark. Theindustry average for this measure is provided through NRA data.

Results for other work system measures include those relatedto our key work processes presented in Items 7.1 and 7.2,along with organizational performance results in Item 7.5.

7.4a(2) Employee learning and developmentOne measure of employee learning and development is the ag-gregate employee performance rating. Landmark rates eachemployee on a one to five Likert scale, with five being “out-standing,” and each level is accompanied by a description ofrelated skills and attributes. The current target is to have 78%of employees at a four or five level. Figure 7.4-4 shows the

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004

Hourly Salaried

Target Hourly Target Salaried

Benchmark Hourly

�Good

Figure 7.4-1 Percentage of Positions Filled From Within

0

2

4

6

8

10

2000 2001 2002 2003 2004W

eeks

Hourly Salaried

Target Hourly Target Salaried

Benchmark Hourly

�Good

Figure 7.4-2 Hiring Cycle Time

0%

50%

100%

150%

2000 2001 2002 2003 2004

Hourly Salaried

Total Benchmark Hourly

Target Total NRA Average

�Good

Figure 7.4-3 Employee Turnover Rate

0%

5%

10%

15%

20%

2001 2002 2003 2004

Catering Take-out Growth Goal

�Good

Figure 7.3-8 New Service Growth

aggregate rating percentages for levels four and five since2000. Segmented data by position are available on site.

Landmark also tracks the percentage of IRDPs that are on tar-get, as shown in Figure 7.4-5. Results show steady progress inthis area since tracking began. This measure is correlated withthe combined percentage of employees who agree or stronglyagree they are satisfied with their IRDPs. This correlation indi-cates that meeting the target has a positive effect on the satis-faction of employees with their IRDPs.

Succession planning is tracked by the percentage of manage-ment and team leader positions that have succession plans inplace (Figure 7.4-6). The team leader position was created in2001, and 100% of succession plans for this position werecompleted in 2004. Since 2001, 100% of management-levelplans have been completed.

We cross-train hourly employees in at least two positions with-in two months of their starting work. Employees who havebeen with us at least a year are cross-trained in at least threepositions. In addition, we have some senior employees cross-trained in four positions. Figure 7.4-7 shows the results forcross-training employees in hourly positions to these standards.

Cross-training also has allowed the company to control costsrelated to hiring, including keeping the number of FTE (full-time equivalent) employees under control. Another factor thathelps limit the number of FTE employees is Landmark’s use ofon-call workers. Figure 7.4-8 shows that Landmark has suc-cessfully controlled its percentage of growth in FTE employeessince it started the cross-training program. The data on indus-try average are provided by the NRA.

Landmark also correlates training with improved processesand performance, whenever appropriate. One recent examplewas training provided to servers on up-selling appetizers (e.g.,from chips and salsa to gulf shrimp). After training was com-pleted, a 5% per server increase in appetizer sales was realized.

7.4a(3) Employee well-being and satisfactionDue to frequent employee turnover and rapid changes in thehospitality industry, Landmark conducts employee satisfactionsurveys twice a year and averages the scores at year end. Fig-ure 7.4-9 shows the results of the top employee satisfactionfactors, segmented by hourly and salaried positions. Resultswith further segmentation (e.g., by location and job type) areavailable on site. The results reflect the combined percentageof employees who agree and strongly agree with statements

0

20

40

60

80

100

2000 2001 2002 2003 2004

Perc

ent

On Target

Employee Satisfaction with IRDP

Target

�Good

Figure 7.4-5 IRDPs on Target

0

20

40

60

80

100

1999 2000 2001 2002 2003 2004

Perc

ent

% Mgmt. Complete % TL Complete

Mgmt. Target TL Target

�Good

Figure 7.4-6 Succession Plans

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004

> 1 yr. 2 mo.–1 yr.

<= 2 mo. Target to std.

�Good

Figure 7.4-7 Cross-Training Hourly Employees to Standards

0.00

0.05

0.10

0.15

0.20

0.25

2000 2001 2002 2003 2004

% Growth Industry Avg. Target

�Good

Figure 7.4-8 % Growth in FTE Employees

60

65

70

75

80

2000 2001 2002 2003 2004

Perc

ent

% rated 4 or 5 Target

�Good

Figure 7.4-4 Employee Performance Ratings

43

about their satisfaction with various areas. Overall employeesatisfaction for both hourly and salaried employees has steadilyimproved, and by 2004 the combined results for these employ-ee segments exceeded the 2005 target of 78% (Figure 2.2-4).The benchmark is the best performer identified in a similar na-tional survey conducted by the NRA.

Through information gathered in exit interviews, Landmarktracks the top reasons for leaving the company (Figure 7.4-10)in order to understand key dissatisfiers. Landmark segments itsresults by hourly and salaried employees and compares its datawith that of the best area competitor (identified by informationfrom the Secret Diners Association). Landmark has set a goal

to conduct exit interviews for 95% of em-ployees who leave voluntarily. In 2004,Landmark surpassed this goal by conduct-ing exit interviews with 100% of employ-ees who left voluntarily. Ongoing improve-ments for salary, hours, and benefits arecontinuously addressed. Because researchshows that managers are most dissatisfiedwith their long working hours and work-home life balance, a variety of actionshave been put in place to help managersimprove this balance.

Figure 7.4-11 shows results for Land-mark’s work environment measures (Fig-ure 5.3-1), including security violationsand aggregated results of ergonomic andother injuries. In addition, it shows resultsfor workers’ compensation claims. Thebenchmark is a previous Baldrige Awardrecipient. Results for OSHA and indoor airquality violations are not shown in Figure7.4-11, as there have been none in the lastseven years.

7.5 Organizational Effectiveness Results7.5a Organizational Effectiveness Results7.5a(1) Value creation processesRevenue per Employee (Figure 7.5-1) is a primary measure ofemployee productivity. The catering service experiencesgreater fluctuations in revenue than the other business lines,because bookings are very sensitive to changes in the economy.For example, when business customers experience economicdeclines, they usually will hold scheduled events but chooseless expensive catering options. The industry average used forcomparison of results in this Item is provided by the NRA,and, unless otherwise noted, the benchmark refers to a best-in-class area restaurant. In addition, results for Landmark’s take-out services are included in the data for the two restaurants.No results are available yet for the new HMR Dinner DeliveryServices. Also, data on administrative and accounting staffmembers are included in the overall Landmark results inFigures 7.5-1 and 7.5-4.

0

2

4

6

8

Injuries Workers’ CompClaims

SecurityViolations

Num

ber

1999 2000 20012002 2003 2004Benchmark

�Good

Figure 7.4-11 Work Environment

Figure 7.4-10 Top Reasons for Leaving

2000 2001 2002 2003 2004 CompetitorHourly

Higher pay 49% 44% 40% 34% 31% 31%

Better hours 18% 20% 17% 16% 15% 16%

Found job inchosen careerfield

20% 25% 22% 28% 31% 29%

Moved out ofthe area

8% 10% 14% 18% 20% 17%

Salaried

Higher pay 26% 27% 21% 22% 25% 24%

Better benefits 10% 11% 13% 14% 13% 16%

Found job withbetter hours

55% 51% 48% 46% 42% 35%

Moved out ofthe area

6% 5% 11% 14% 16% 20%

Figure 7.4-9 Employee Satisfaction Results

2000 2001 2002 2003 2004Benchmark(NRA Best)

Hourly

Competent Management 43% 48% 55% 54% 56% 65%

Competitive Compensation 55% 61% 65% 68% 77% 85%

Competitive Benefits 55% 64% 63% 65% 69% 80%

Work-Home Life Balance 63% 65% 71% 74% 76% 75%

Respect and Recognition 70% 74% 78% 78% 82% 75%

Community Involvement 64% 66% 64% 67% 71% 65%

Overall 61% 64% 63% 75% 78% 80%

Salaried

Competitive Compensation 54% 62% 65% 70% 74% 85%

Competitive Benefits 59% 66% 68% 71% 76% 70%

Work-Home Life Balance 55% 61% 68% 73% 78% 70%

Respect and Recognition 71% 74% 77% 78% 83% 75%

Community Involvement 65% 68% 69% 70% 73% 65%

Overall 65% 68% 67% 77% 79% 80%

44

Chef Volume (Figure 7.5-2), another measure of productivity,is the average number of meals cooked and served per chef.Because of efficient operations, performance improvementsdue to Foodtrak, and productive employees, Landmark hasbeen able to prepare significantly more meals without addingmore chefs. Decreased volume in 2001 and 2002 reflects thedecline in overall volume experienced by the restaurant, duringwhich time we maintained our staffing levels for future growth.

Prime Cost (Figure 7.5-3) is the percentage of total costs thatconsists of food and labor costs. Because these costs are mostdirectly related to producing value for the customer, theyshould constitute the largest percentage of the total costs.Landmark’s performance has consistently improved for thismeasure and currently exceeds that of its benchmark.

The Cost per Employee (Figure 7.5-4) is an indicator of costcontrol. It is computed as the cost of sales and controllable ex-penses divided by the number of total employees. This cost in-creased during the economic downturn in 2001 and 2002, butit decreased to the target level by 2004. Landmark’s costs arehigher than the industry average due to the costs related toowning and maintaining its historic properties.

New Menu Item Performance (Figure 7.5-5) is the averagenumber of new menu item orders and is a measure of the

effectiveness of the Menu Design and Re-engineering Process.Landmark considers 50 orders a week in the first 90 days (ap-proximately 600 orders) to be an outstanding success. Basedon industry data from the NRA, the average is around 490 to500. Since the refinement and expanded use of the MenuDesign and Re-engineering Process, the number of new menuitem orders has increased significantly, indicating the

45

$0

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$20,000

$30,000

$40,000

$50,000

2000 2001 2002 2003 2004Landmark Harrisburg

Lightkeeper Catering

Target Overall Benchmark

Industry Avg.

�Good

Figure 7.5-1 Revenue per Employee

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2000 2001 2002 2003 2004

# of

Mea

ls C

ooke

dan

d Se

rved

Landmark Harrisburg



Industry Avg.

�Good

Figure 7.5-2 Chef Volume

56.0%

58.0%

60.0%

62.0%

64.0%

66.0%

68.0%

2000 2001 2002 2003 2004

Prim

e Co

st

Landmark Harrisburg



Industry Avg.

�Good

Figure 7.5-3 Prime Cost

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

2000 2001 2002 2003 2004

Landmark Harrisburg



Industry Avg.

�Good

Figure 7.5-4 Cost per Employee

300350400450500550600650700

2001 2002 2003 2004

/sredrO # egarevAsyaD 09 gnilloR

1st new entrée 2nd new entrée3rd new entrée 4th new entrée5th new entrée TargetIndustry Avg.

Good

Figure 7.5-5 New Menu Item Performance

46

effectiveness of the process. Figure 7.5-5 represents a samplingof new entrées introduced throughout each year.

Menu Item Development Cycle Time (Figure 7.5-6) is theaverage time to introduce new menu items and/or revise themenu. Again, the refinement and expanded use of the MenuDesign and Re-engineering Process has significantly improvedthe time it takes to introduce new items. Some new menu itemsare actually introduced the same day. Data are unavailableprior to 2002, as this measure of performance was introducedfollowing an analysis of the 2001 LSQA feedback report.

Menu Item Shortages (Figure 7.5-7) are measured as the per-centage of times that items are not available when ordered bycustomers. Landmark tracks this measure as part of its elec-tronic ordering program on the Foodtrak system. There are sofew shortages at Landmark that this measure is being consid-ered for removal in the 2005 DINERS Improvement Processreview cycle.

7.5a(2) Other key process performancePre-Audit Scores (Figure 7.5-8) are the unofficial results fromLandmark’s internal pre-audit walk-throughs with students

from the culinary program at the community college. As indi-cated by comparing pre-audit scores to actual health depart-ment audit results (Figure 7.6-5), the internal pre-audits arescored more severely than the actual health department audits.This careful examination helps prepare the organization to ex-ceed health department requirements.

Table Set-up Cycle Time (Figure 7.5-9) is the number of min-utes it takes to set up a table for restaurant dining or a cateringevent. Landmark’s adoption of industrywide improvements,changes in the work process flow, and process standardizationhave significantly improved Landmark’s performance on thismetric over time.

Spoilage (Figure 7.5-10) is the percentage of total food coststhat is attributed to food supplies that are discarded becausethey are spoiled and/or expired. Frequent communication andclose collaboration with the restaurant purchasing consortium,as well as better use of the Foodtrak system for supplier inven-tory management, have improved performance on this measuresignificantly.

Because products and services acquired from our restaurantpurchasing consortium constitute 90% of our supplier costs,our main focus for improving supplier performance is on thisorganization. Supplier performance for the consortium (Figure7.5-11) is measured by fill rate and on-time delivery. Fill rate

0

10

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60

70

2002 2003 2004

Hou

rs

Landmark Target

Benchmark Industry Avg.

�Good

Figure 7.5-6 Menu Item Development Cycle Time

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2001 2002 2003 2004

Min

utes

Lightkeeper Harrisburg

Catering Benchmark

Target Industry Avg.

�Good

Figure 7.5-9 Set-up Cycle Time

0.00%

0.01%

0.02%

0.03%

0.04%

0.05%

0.06%

0.07%

0.08%

0.09%

2000 2001 2002 2003 2004

Landmark Industry Avg.

Benchmark Target

�Good

Figure 7.5-7 Menu Item Shortages

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004Landmark HarrisburgLightkeeper TargetBenchmark

Good

Figure 7.5-8 Pre-Audit Scores

is the percentage of items delivered as ordered. Suppliers areexpected to deliver 100% of the orders placed. Supplier on-time delivery is the percentage of orders delivered on time.The supplier is expected to deliver orders within 24 hours (orwithin an agreed-upon time frame). Significant improvementis shown for both of these key measures. Our target and com-parisons for supplier performance reflect the combined per-centage for both fill rate and on-time delivery.

System Availability (Figure 7.5-12) is the percentage of timethat systems are up and running with no unscheduled downtime. Help Desk Issue Resolution (Figure 7.5-12) is the per-centage of issues that are resolved by the IT vendor on the firstcall from Landmark employees. Results show the impact ofvarious relationship-building activities, better communications,and improvements in the POS technology over this time period.

Shrinkage (Figure 7.5-13) is the percentage of supplies nototherwise accounted for by sales or spoilage. Landmark con-siders it a metric of internal control over food supplies andemployee behavior. Over the past few years, Landmark has

increased its focus on reducing shrinkage and spoilage and hasprovided training to employees on methods to reduce waste, aswell as the impact of shrinkage on company profits and there-fore on their employment opportunities. Landmark’s 2004 re-sults for shrinkage are approaching the benchmark of .01% ofa former Baldrige Award recipient.

Improvement Process Savings (Figure 7.5-14) is the percent-age of cost savings that can be attributed to teams using theDINERS Improvement Process each year. Landmark’s bench-mark is a recent Baldrige Award recipient from the servicesector.

0.00%

0.01%

0.02%

0.03%

0.04%

0.05%

0.06%

0.07%

0.08%

0.09%

0.10%

2000 2001 2002 2003 2004

Landmark Harrisburg

Lightkeeper Target

Industry Avg. Benchmark

�Good

Figure 7.5-10 Spoilage

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004

Supplier Fill Rate

Supplier On-time Delivery

Target

Benchmark

Industry Avg.

�Good

Figure 7.5-11 Supplier Performance

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2000 2001 2002 2003 2004

Landmark Target Benchmark

�Good

Figure 7.5-14 Improvement Process Savings

0.00%

0.05%

0.10%

0.15%

2000 2001 2002 2003 2004

Landmark Benchmark

Target Industry Avg.

�Good

Figure 7.5-13 Shrinkage

75%

80%

85%

90%

95%

100%

2000 2001 2002 2003 2004

System Availability Help Desk Resolution

Target Availability Target Help Desk

Benchmark Avail. Benchmark Help Desk

Industry Avg. Avail.

�Good

Figure 7.5-12 System Availability and Help Desk IssueResolution

47

7.6 Leadership and Social Responsibility Results7.6a Leadership and Social Responsibility Results7.6a(1) Organizational strategy and action plansAction plan achievement can be shown by the results through-out Category 7, because those measures identified in the Strat-egy Matrix (Figure 2.2-4) are considered key to the success ofthe strategic plan. In addition, Figure 7.6-1 shows the percent-age of strategic action plans on target for achieving key mile-stones and deadlines.

7.6a(2) Ethical behavior and stakeholder trustFigure 7.6-2 shows results from the employee annual surveyfor the statement, “I feel confident that all employees behavein an ethical manner,” and from the supplier annual survey forthe statement, “Landmark employees behave in an ethicalmanner at all times.” Results for 1999 through 2001 show thecombined percentage of four- and five-level responses (agreeand strongly agree) on a five-point Likert scale; however, in2002, the measure was changed to include only “top box”(strongly agree) responses in order to provide more actionabledata and a better comparison to our best competitor. Becausethese surveys are used by all members of the Secret DinersAssociation, Landmark obtains comparative data through theassociation. On both surveys, Landmark exceeds the perform-ance of its best competitor. Results for additional measures ofethical behavior (e.g., code of conduct violations, ethics-related employment termination) are available on site.

As noted previously, the organization has chosen to focus itscommunity support in key areas that are aligned with itsValues. Figure 7.6-3 shows a partial listing of awards andrecognitions that Landmark has received over the past fiveyears in those areas.

7.6a(3) Fiscal accountabilityFigure 7.6-4 depicts findings from internal and external finan-cial audits. For the past three years, no findings were identifiedthrough external audits. Landmark’s internal audits tend to bemore comprehensive and include a thorough review ofprocesses. While findings from these audits have not includedany violations on the financial statements, Landmark has iden-tified several process deficiencies, such as missed deadlinesand incorrectly formatted reports.

0%

20%

40%

60%

80%

100%

2000 2001 2002 2003 2004

Landmark Target

�Good

Figure 7.6-1 Action Plan Achievement

0

20

40

60

80

100

1999 2000 2001 2002 2003 2004

Perc

ent

Employee Ethics RatingSupplier Ethics RatingBest Competitor EmployeeBest Competitor Supplier

�Good

Figure 7.6-2 Perceptions of Ethical Behavior

0

5

10

15

20

1999 2000 2001 2002 2003 2004

# Fi

ndin

gs

Internal Financial Audits

Annual External Audit

External Findings Target

�Good

Figure 7.6-4 Financial Audit Results

Community Service AwardsHouston Food Fund: Thanks a Ton Award (2000, 2001, 2002,

2003, 2004)Galveston Food Sharing Festival: Key Sponsor (2002–2004)Veterans of Texas Association: Certificate of Appreciation (2000,

2001, 2002, 2003, 2004)City of Houston: Compassionate Caring Award (2002, 2003)Carol J. Angelard College of Hotel and Restaurant Management:

Hall of Honor (2002)American Red Cross Disaster Assistance Award (1998)

Historical Preservation AwardsFounding member of the Houston Metropolitan Historic

Preservation Association (2003)Houston Historical Protection Alliance: Good Block Award

(2003, 2004)City of Galveston History Group: Award of Merit (2002, 2004)Texas Historical Preservation Society: Visionaries Award (1999,

2003)

Business Excellence AwardsLone Star Quality Award (2002)Charles S. Roulette Entrepreneur of the Year (2001)State of Texas Chamber of Commerce Employer of the Year

(2002, 2003)Houston Times Best Place to Work—Small Business (2000,

2002, 2003, 2004)

Figure 7.6-3 Partial Listing of Awards and Recognition

48

7.6a(4) Regulatory and legal complianceLandmark consistently scores high on audits by the Houstonand Galveston HHS departments. As shown in Figure 7.6-5,Landmark’s overall score on the 2004 health department audits(including the food preparation for the catering service) arehigher than the top 10% of reported audits in the two cities. Inthe past seven years, Landmark has not been cited for any vio-lations of health or food safety codes at either location.

The other areas of regulatory compliance identified in FigureP.1-3 have outstanding results that exceed regulatory require-ments. For example, for the past five years, Landmark has nothad any violations for waste removal or any violations foremployee-related regulations (e.g., regulations associated withthe Family and Medical Leave Act, Employee RetirementIncome Security Act, Americans with Disabilities Act, OSHA,Fair Labor Standards Act, or Equal Employment OpportunityCommission). Landmark continues to abide by all zoningcodes and licensing regulations and in fact exceeds require-ments through meticulous maintenance of its two sites as partof its historic preservation efforts.

7.6a(5) Organizational citizenshipSupport of its local communities is a year-round activity forLandmark. Figure 7.6-6 shows the results for two of our keycommunity contribution activities: Restaurant Week and dinner

donations. Each year, Landmark is a strong participant inRestaurant Week. During this week, proceeds from specificmenu items that customers order are donated to a charity or-ganization. The benchmark shown in this figure is the averageof the top 10% of the restaurants participating in this program,all of which are much larger than Landmark.

To support its local communities, Landmark offers free mealsto the homeless each Thanksgiving and Christmas. In addition,in 2002, to help numerous employees who lost their jobs in theoil industry due to the collapse of the Niorne Corporation,Landmark sponsored numerous networking dinners for theseemployees and potential new employers. Despite the fact that2002 also was a financially challenging year for the company,Landmark continued to meet the needs of the community,demonstrating its commitment to its Value of Enriching theCommunity.

In addition to the company’s financial and product contribu-tions, Landmark’s employees contribute numerous hours tovolunteer activities in the community. Employees can take offup to four days per year to volunteer at soup kitchens, the localveteran’s hospital, or other charitable organizations that areconsistent with the core Values of Landmark. As Figure 7.6-7indicates, most employees choose to do so, which reflects posi-tively on Landmark’s ability to identify and hire employeeswho support the organization’s Values and its ability to com-municate and reinforce those Values. In response to the eventsof September 11, 2001, and the difficult economy of 2002,employee participation was even higher than usual.

Additionally, as this figure shows, Landmark is committed topromoting a healthy lifestyle in the community. Working withthe local community college, the company offers a Chef’s Dayprogram for children aged 8–14 to teach them healthy eating

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

2001 2002 2003 2004

Num

ber

050100150200250300350400450

$ Donations Rest. Week

$ Donations Top 10%

$ Donations Target

# Dinners Served

Dinners Goal

�Good

Figure 7.6-6 Contributions to the Community

050

100150200250300350400450

2000 2001 2002 2003 20042500

3000

3500

4000

4500Hours

# employees who volunteer# employees# of courses taught# attendees Chef’s Day program# hrs. employees volunteer# hrs. employees target

�Good

Figure 7.6-7 Services Donated

86%

88%

90%

92%

94%

96%

98%

100%

2000 2001 2002 2003 2004

Landmark Harrisburg Lightkeeper

Benchmark Target Top 10%

�Good

Figure 7.6-5 Results of HHS audits

49

50

habits. Chefs also volunteer at the Houston Food Fund, teach-ing courses on nutrition and food budgeting skills for low-income families. The number of courses taught has grownfrom 3 in 2001 to 23 in 2004, supporting the growing interestin the community.

Another measure related to our Value of Enriching the Com-munity is our support of those with challenges (Figure 7.6-8).Working with local agencies, Landmark actively recruits thosewith developmental disabilities. Providing them with meaning-ful employment enables them to live independently and withdignity. The number of developmentally disabled employees atLandmark has increased consistently since 2001. In support ofour troops returning from war, Landmark also is committed torecruiting and employing disabled veterans. Active recruitmentin this area has increased these numbers significantly, and pro-jections are to reach the goal of 25 in 2005 and 35 in 2008.

While running Landmark is a business, it also is a labor oflove. The senior leaders of the company are very committed tothe hospitality industry and encourage interested employees topursue a career in the industry in a number of ways, includingflexible work schedules, internships, and scholarships. Figure7.6-9 indicates the growth in the number of employees whohave elected to continue their education in hospitality while atLandmark, the number of interns from the Carol J. AngelardCollege of Hotel and Restaurant Management, and the numberof scholarships the company is able to offer.

0

5

10

15

20

25

30

2000 2001 2002 2003 2004

# Em

ploy

ed

Disabled Veterans

Developmentally Disabled Persons

Total Target

�Good

Figure 7.6-8 Developmentally Disabled and DisabledVeterans Employed

0

2

4

6

8

10

2000 2001 2002 2003 2004N

umbe

r of E

mpl

oyee

sEnrolled Active Scholarships

Internships Enrollment Target

�Good

Figure 7.6-9 Employees Advancing Careers in Hospitality

Baldrige National Quality Program

Baldrige National Quality ProgramNational Institute of Standards and TechnologyTechnology AdministrationUnited States Department of CommerceAdministration Building, Room A600100 Bureau Drive, Stop 1020Gaithersburg, MD 20899-1020

The National Institute of Standards and Technology is a nonregulatory federal agencywithin the Commerce Department’s Technology Administration. NIST’s primary missionis to develop and promote measurement, standards, and technology to enhance produc-tivity, facilitate trade, and improve the quality of life. The Baldrige National QualityProgram (BNQP) at NIST is a customer-focused federal change agent that enhances thecompetitiveness, quality, and productivity of U.S. organizations for the benefit of allcitizens. BNQP develops and disseminates evaluation criteria and manages the MalcolmBaldrige National Quality Award. It also provides global leadership in promoting per-formance excellence and in the learning and sharing of successful performance practices,principles, and strategies.

Call BNQP or visit our Web site for

• information on improving the performance of your organization• information on eligibility requirements for the Baldrige Award• information on applying for the Baldrige Award• information on becoming a Baldrige Examiner• information on the Baldrige Award recipients • individual copies of the Criteria for Performance Excellence—Business, Education,

and Health Care (no cost) • information on BNQP educational materials • case studies

Telephone: (301) 975-2036; Fax: (301) 948-3716; E-mail: [email protected] site: www.baldrige.nist.gov

American Society for Quality600 North Plankinton AvenueP.O. Box 3005Milwaukee, WI 53201-3005

By making quality a global priority, an organizational imperative, and a personal ethic, theAmerican Society for Quality becomes the community for everyone who seeks qualitytechnology, concepts, or tools to improve themselves and their world. ASQ administersthe Malcolm Baldrige National Quality Award under contract to NIST.

Call ASQ to order

• bulk copies of the Criteria• Award recipients videos

Telephone: (800) 248-1946; Fax: (414) 272-1734; E-mail: [email protected] site: www.asq.org

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2005 Landmark Case Study

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