Design Performance Development Plan (PDP)

 

Creating a well-structured Performance Development Plan (PDP) workbook is essential for hotel leaders who want to optimize revenue, align teams, and ensure smooth operations. This blog post walks you through how to design an efficient PDP workbook that helps organize performance data, manage risks, and streamline decision-making processes.

Here’s a step-by-step breakdown of what each worksheet should contain, how they link together, and how they contribute to achieving your business goals.

Workbook Overview

This PDP workbook is tailored to guide hotel managers and revenue leaders through analyzing performance, identifying growth opportunities, and aligning strategies across business segments. The interconnected worksheets ensure you can track performance, plan productive meetings, and align actions with business objectives.

1. Objective and Instructions Worksheet

This is the starting point for your PDP workbook. It provides:

• Overview: Goals of the PDP process (like revenue growth, segment optimization).
• Instructions: A step-by-step guide on entering revenue, room nights, and budget data.
• Milestones: Important timelines (e.g., review deadlines, feedback dates).
• How It Works: A description of how each worksheet is linked and what data flows where.

This sheet helps everyone involved understand the workbook's purpose and ensures smooth collaboration.

2. Time Allocation – Revenue Worksheet

This worksheet helps allocate meeting time for each business segment based on revenue performance.

What It Includes:

• Segment names (e.g., Premium, Corporate, Leisure).
• Revenue comparisons (Current Year vs. Previous Year and Budget).
• Risk assessment for each segment (High, Medium, Low).
• Suggested time allocation based on segment risk and contribution.

How It Links:

• Pulls data from segment-specific diagnostic sheets to assess performance.
• Feeds into the Meeting Planner to ensure focus on high-impact areas.

3. Time Allocation – Room Nights Worksheet

Some properties might prefer to allocate meeting time based on room nights rather than revenue. This sheet offers a similar structure but focuses on guest volume trends.

What It Includes:

• Room night comparisons (Current Year vs. Previous Year and Budget).
• Risk assessment and suggested time allocation by segment.

How It Links:

• Works alongside the Revenue Worksheet to provide a balanced view.
• Helps leaders see if segments with more bookings (but lower revenue) need special attention.

4. "Optimal Mix" Calculation Worksheet

This worksheet allows leaders to play with segment mixes and find the most profitable combinations of room nights and average rates.

What It Includes:

• Segment names and current performance metrics.
• Editable fields to test new room night or rate combinations.
• Automatic revenue recalculation based on new inputs.
• Comparison with historical and budgeted performance.

How It Links:

• Pulls data from Revenue and Room Night Worksheets.

Adjusts risk assessments and informs the Time Allocation Worksheets if segment strategies change.

5. Segment Diagnostic Worksheets

(One worksheet per segment: Corporate, Premium, Leisure, etc.)

These worksheets provide a deep dive into the performance of each business segment.

What It Includes:

• Revenue and room night trends over multiple years.
• Market environment analysis (e.g., competitors, economic conditions).
• Potential risks and growth opportunities.
• Key discussion points for PDP meetings (e.g., "How can we grow group bookings?").

How It Links:

• Feeds into Revenue and Room Night Worksheets to influence time allocation.

Identifies risks that adjust segment strategies in the Optimal Mix sheet.

6. Contract & Group Catering Worksheet

This sheet focuses on specific revenue streams like contracts and catering, which are critical for some hotels.

What It Includes:

• Year-over-year contract and catering revenue comparison.
• Risks affecting catering business (e.g., seasonal challenges).
• Time allocation recommendations for PDP meetings based on risk.

How It Links:

• Integrates with the Revenue Worksheet to track these unique revenue sources.

Informs the Meeting Planner on where to focus for these streams

7. Summary Sheet

The Summary Sheet offers a consolidated view of all business segments and their performance to ensure nothing is overlooked.

What It Includes:

• Total revenue and room night figures across all segments.
• Risk levels and key metrics at a glance.

Allocated meeting time per segment.

• Actionable insights and recommendations.

How It Links:

• Pulls data from segment and diagnostic worksheets.

Feeds into the Meeting Planner to ensure the agenda covers all critical areas.

8. Meeting Planner Worksheet

The Meeting Planner Worksheet organizes the final PDP meeting agenda, ensuring productive discussions and clear next steps.

What It Includes:

• Segment names and allocated time (from Time Allocation Worksheets).
• Key discussion points (from Diagnostic Worksheets).
• Action items and follow-up tasks.
• Assigned owners for each task to ensure accountability.

How It Links:

• Uses inputs from Revenue, Room Night, and Optimal Mix Worksheets.
• Feeds action items into the Summary Sheet for tracking.

How the Worksheets Work Together

1. Data Flow:
• The Segment Diagnostic Worksheets provide raw data, including revenue, room nights, and market insights.
• This data flows into the Revenue and Room Night Worksheets to determine meeting priorities.
2. Risk Adjustments:
• Risk assessments from diagnostic sheets influence time allocations in the Time Allocation Worksheets.
• Managers can override risks if the business strategy shifts (e.g., focusing more on leisure than corporate bookings).
3. Revenue Optimization:
• The Optimal Mix Worksheet allows testing new segment combinations and sets new revenue targets.
• Adjustments in the Optimal Mix Worksheet are reflected in the Time Allocation Worksheets to guide PDP meetings.
4. Final Meeting Plan:

The Meeting Planner Worksheet compiles all recommendations into a structured agenda with actionable items.

Conclusion

Designing an effective PDP workbook ensures that hotel leaders can make data-driven decisions, focus on the right segments, and manage risks efficiently. This structure helps teams stay aligned, track performance trends, and develop actionable strategies to meet revenue and occupancy goals.

With the interconnected worksheets, hotel managers can streamline PDP meetings, identify opportunities, and stay ahead of challenges. Use this framework to create your PDP workbook and unlock new growth potential for your property!