We become what we behold. We shape our tools and then our tools shape us.
—Marshall McLuhan

In the hospitality industry, benchmarking is a trusted tool for analyzing operational performance. Common KPIs (key performance indicators) such as revenue per available room, food cost percentages, and customer satisfaction scores, help measure management’s effectiveness. These metrics often influence compensation, contract renewals, and the overall success of the business versus a competitive set or industry standard.

But what if benchmarking could do more than track performance? What if the same techniques used to measure whether we have maximized room rates or restaurant profitability could uncover systematic fraud within your organization?

Same Tool New Perspective

Imagine analyzing patterns in commission structures, vendor payments, rebates, or employee benefits data. Could these reveal red flags for collusion or fraud? As an industry, have we considered that the analytical methods, like benchmarking, we rely on for financial strategy might also expose schemes costing organizations thousands, or even millions of dollars?

Benchmarking isn’t just about operational insights. It can be a powerful fraud detection tool, if we learn to look at the data differently.

Insights from Dr. Erik Lie

In his book LinkedIn.

She holds a doctorate in Instructional Systems Design and Technology and an MBA from Sam Houston State University, a BBA in Accounting from the University of Texas at Austin, and industry certifications including CHAE, CHE, CHIA, and CAHTA. She is a frequent author and speaker at hospitality industry events.