Carino's Italian Grill improves retention, leadership effectiveness and operating performance using BHI 360° tools.
Client Challenge
Three years ago, Carino's Italian Grill was poised for rapid growth: The company would open 77 new restaurants before the end of 2006. To facilitate this growth, Carino's executive team began to look closely at how it might better develop leaders to meet the organization's future needs.
At the time, the company was using a variety of tools, mostly developed internally, for selection and performance management, along with a vendor product for leadership development. The result of this disconnected portfolio, according to Senior Vice President of Human Resources Rodney Morris, was inconsistent operating performance and a lack of traction in selection, retention and succession planning. And because Carino's had varied definitions of what success "looked like" for its leaders, there was a lack of performance alignment between internally- and externally-hired managers.
Solutions
As a first step, Carino's implemented BHI's PEAK Leadership Development System for its multi-unit supervisors. The PEAK 360° Assessment helped Carino's identify and articulate the strengths and opportunities of its 11 area directors—as perceived by their peers, supervisors and direct reports. In addition to showing the area directors how they were seen in the workplace, the process "gave them a more global understanding of what it takes to succeed as a multi-unit manager," according to Rodney.
The initial response to the PEAK program was so positive that Carino's expanded it to include individual coaching: A BHI Consultant worked with managers to interpret assessment results, set specific goals and monitor progress. The company also modified the assessment program to include indirect reports (assistant managers) in the rater pool. "This really opened their eyes about how their leadership was perceived beyond their direct reports," says Rodney. "It was very clear that they needed to spend quality time with everyone in their leadership domain." Carino's gained more than insight, however. Using the PEAK 360° competencies, the HR team developed more specific interview and selection materials—and reinforced the competencies in their performance appraisal process. Carino's now has "a comprehensive talent management system," says Rodney. "The disconnect is gone."
Results
In the three years since the implementation of PEAK, Carino's has retained nine of the 11 original area directors. Total hourly turnover has decreased by 23.1 percent. And total management turnover has gone from 31.5 percent to 23.5 percent, for an annualized savings of more than $500,000. Since Carino's is a private company, it does not share specific financial information. According to Rodney, however, "We do realize higher performing teams when turnover goes down…and EBITA nearly doubled between F'05 and F'06."
The "softer" results have been just as impressive. Leaders now look forward to measuring their improvement in the areas they've set goals—not just personally, but also as a team. Performance appraisal results have improved, which provides an easy answer to "What's in it for me?" Leaders see increases in salary and bonuses, and they tie those results directly to their efforts in using the PEAK system.
"Today we have better managers than we did three years ago," Rodney says. "And THAT drives better performance in our restaurants."
In 2008, Carino's Italian Grill will begin using the new High Definition 360° for it's corporate leadership team. Check back here for updated results.
