Steve Lohr of the New York Times wrote an article on the
research, and commented:
The impact, the researchers say, came not from firing
workers engaged in theft, but mostly from their changed
behavior. Knowing they were being monitored, the servers
not only pulled back on any unethical practices, but also
channeled their efforts into, say, prompting customers to
have that dessert or a second beer, raising revenue for the
restaurant and tips for themselves.
In human resources, much emphasis is placed on employee
selection: if you pick the right people, they will do the right
thing. Instead, this research suggests that the surveillance
effect on employee behavior is striking.
Not surprisingly, NCR is delighted by the results. “It validates
the customer data we’ve seen,” said Jeff Hindman, a vice
president at NCR. “But this is done by outside experts with
the academic standards and statistical rigor they bring to
the analysis.”
To view the entire New York Times article by Steve Lohr
regarding the report, visit bits.blogs.nytimes.com.
Summar y – The modern world is full of surveillance. Speed
cameras, street cameras and Internet monitoring systems
are only some of the ways our behavior is monitored — but
can such techniques reduce the rate of theft in the service
industry?
According to a new report, “Cleaning House: The Impact of
Information Technology Monitoring on Employee Theft and
Productivity” (.pdf), the work of Lamar Pierce, Daniel Snow,
and Andrew McAfee, details how significant an impact
surveillance can have on our daily lives.
The research team measured how rates of theft altered at
392 restaurants in U.S. 39 states after the installation of NCR
Restaurant Guard was followed by:
• Increased total sales of more than $2,900 per location,
per week on average – which represents a 7% increase
• Increased average weekly drink revenue (which has
particularly high profit margins) of more than $900 per
location, representing an increase of more than 10%
• An estimated 35% average increase in operating margin
Results suggested that these gains did not fade over time;
instead they remained steady for at least several months
after NCR Restaurant Guard was adopted. The research
also suggested that these gains were usually achieved
without much staff turnover, and that managers used
NCR Restaurant Guard information to reward trustworthy
employees with more hours.
August 26, 2013 NCR Hospitality News
By Steve Lohr
The New York Times
© The New York TImes
NCR is a registered trademark of NCR Corporation in the United States and/or other countries. All brand and product names
appearing in this document are trademarks, registered trademarks or service marks of their respective holders.
© 2013 NCR Corporation Patents Pending www.ncr.com
For more information, visit www.ncr.com or email hospitality.information@ncr.com
