Quality Management Just a cost or also beneficial for the Casino industry?

1. Quality Management Just a cost or also beneficial for the Casino industry? Philip John Davies CEO, Casino International at Hilton Batumi Helmut Wede Casinos Austria Swiss AG August 2015

2. Topics • Quality Management for Casinos? • Doesit matter? • WhatcanbethekeyareasofQuality Management • Costorprofit?

3. Quality Management for Casinos? • Casinos are clearly service oriented organisations which sell entertainment and excitement • Service should be understood as availability of different facilities, customer experience and quality of applied attention to customers • The origin of Quality Management (QM) derives from the manufacturing industry. The car manufacturing industries of Japan and Germany gained substantial competitive advantage when they start to apply QM measures and rules • Worldwide operating service providers (e.g. Starbucks, KPMG, Vodafone, etc.) use QM to ensure consistent delivery of service and products

4. Quality Management for Casinos? (II) Service oriented organisations also have to focus on • Customer satisfaction • Customer behaviour (and the change of it) • Service innovation • Product innovation These are classical areas of Quality Management in the service industry but also key to success for the Casinos. Conclusion: QM can and should be applied in Casinos!

5. Does it really matter? Remember the worst Casino experience lately? What were the main shortcomings / failures / disturbances?  Mainly it will be in the line of • Bad employee behaviour • Unclear gaming rules • Bad F&B • Long-winded procedures • I lost a fortune… a) – d) can be addressed when applying QM, e) is our core business…

6. Does it really matter? (II) Implementing and using QM for your operation can make a difference: • Uniform and congruent staff behaviour, all staff delivers a minimum standard of service – at least the staff is friendly and polite • Gaming procedures are secure, transparent and comprehensible – at least the customer knows why they have lost. • QM in the Food area is vital for the survival of customers – bad F&B service usually makes customers a little bit unhappy, especially if they are not winning

7. Does it really matter? (III) Implementing and using QM for your operation can make a difference: • Constant review of procedures in the Casino from the customer’s point of view enhances our understanding of the business and reduces redundancies – we should not torture customers more than necessary with our procedures • Accounting without QM – how is that supposed to work if the Casino is operated seriously. • Controls and improvements are a central part of QM – and shout be of anybody’s Casino Operation. Conclusion: yes it does matter for you, your staff and your customers

8. Key areas of QM in the Casino As outlined in the examples before the main areas for constant Quality Management in the Casino environment can be: • Customer experience • Game security & control • Key financial procedures and accounting • Constant improvement of business All above areas add tremendous to the profitability of your operation and long term determine the success of your business.

9. Key areas of QM in the Casino – Customer Experience Try to draw a value chain of our customer’s visit from the catching of attention to the farewell when leaving • Main areas of catching attention – do we spend the marketing $ right? • How can they get to the Casino, do we provide the necessary facilities / services? • How is it to get into the Casino? Is it really nice and easy? • Who is waiting for them inside? Do we do enough to welcome them? Do we do too much? • How long are they staying? Do we get enough time from them? Take as a reference the most advanced competitors in customer experience: ONLINE CASINOS. All of the above points (and more) are potential loss of revenue

10. Key areas of QM in the Casino – Game security So obvious that it is not necessary to explain; just reflect on: • Speed versus customer experience • Clean hand procedures throughout the Casino • Slot analysis through data: sufficient statistical and technical knowhow and expertise? • Drop and hold analysis – what gets measured gets attention • How can information from past incidents be used to improve the security All of the above points (and more) are have the potential to reduce or increase revenue and profits

11. Key areas of QM in the Casino – Accounting The accounting of the Casino is a major area of fraud and cheating in the Casino. Staff collusion can damage the Casino financially and reputational. • Four eyes principle • Constant cost control through KPIs • Clear procedures to avoid any “strange” situations in Casino accounting • Financial control goes beyond pure cost management – established procedures help to reduce operational costs dramatically All of the above points (and more) are have the potential to reduce or increase profits

12. Key areas of QM in the Casino – Constant improvement The commitment to constant improvement is a key element in the Quality Management approach. All efforts are directed to continuously improve the operation and delivery of services and products. As Casinos are operating in a multi competitor environment such as other Casinos – Slot/VLT halls – Online Casinos – illegal Casinos, the constant improvement and innovation of gaming products and services is the key to sustainable success in an increasingly competitive market.

13. Conclusions: QM – Cost or Profit for the Casino Implementing and using QM for your operation will assist in increasing profits: • Putting the customer in the centre of all efforts increases retention, satisfaction and hence spending • Evaluating the efforts will reveal potentials for cost savings as well as excess service offers, overall improving the operation • Secure and transparent gaming and accounting procedures reduce the risk of loss through fraud and mistakes The operation of a sound QM is not an extra cost, it should be an integrated part of every department.

14. Questions!? • Thank you for your attention! ISO Certified since 2006