REAL TIME SLOTS: A managerial dilemma
by John-Martin Meyer
June 1, 2008
The solutions to the effects of high turnover and frequent promotions involve a different business practice from that used in the past
With the prolific expansion of gaming comes the insatiable need for
senior slot operations management. Unfortunately, this expansion, coupled with
the exponential growth in technology, has created a current “knowledge
vacuum.”
The old school thought system is fading away
and the new school is very young in that practical experience is very limited.
A new corporate paradigm has emerged to create specialized duties and titles
that focus on specific aspects of the slot product.
Generally, the initial goals are to rotate
the up-and-coming senior slot management candidates through a matrix of
positions to produce a well-rounded director or vice president. However, growth
demands have forced many companies to go to their benches prior to the talent
having the opportunity to gain the required knowledge. This condition is even
more exacerbated in the secondary markets where staff has been decimated by
frequent promotions and green replacements filling in the empty holes.
Management responsibility overload
Despite
slots' growth into a major revenue source, senior management views often haven’t
progressed out of the 1980s. During this period, the slot machine selection was
extremely limited and the technology primitive by today’s standards.
For many lead techs, our slot or technology
managers were the main source in providing answers to technological questions.
As an industry, we have effectively done away with this resource by
overburdening them with the physical installation of the technology they are to
oversee.
This catch 22 is again exponentially worse at the actual tech level. The amount
of permutations in game optioning is literally in the millions for
multidenomination, multigame units. Multiply this condition by the numerous
game manufacturers with their multiple platforms and with the multiple releases
of each platform, and we have a potentially insurmountable mountain of
information to process prior to even opening these games to the players. These
techs are now left to work their way through the configuration set up screens
on a learn-as-you-go basis.
For the larger corporate entities, there are
two distinct solutions: centrally supported corporate personnel who specialize
in each facet of the slot product where decisions are made at the corporate
level and implemented at the property level, and distributed support staff
located within each property. Both perspectives have great strengths as well as
weaknesses. It’s difficult to adapt a single vision for a centrally determined
policy for all properties and markets, just as it is difficult for a
distributed process to maintain a consistent enterprise-wide experience.
The majority of the operations within the industry work under a hybrid of the
distributed model. If we have a corporate umbrella, it does not have the
resources to directly dedicate to slot related items. Under this model, there
is a greater scope of responsibility that lies with the Senior Slot Manager.
With all three approaches there is an
undeniable need for education and training.
Who needs training?
The
universal question remains: Who needs to be trained or retrained? The reality
is that everyone needs some form of ongoing training to keep their
skills in step with the changes in technology and industry trends.
Cost and time are the main barriers noted by those who do not make training a
priority. To misquote Derek Bok, “If you think training is expensive, try
calculating the cost of ignorance.” In locations containing cash back programs,
specific examples of incorrect point count down parameters have cost the
properties tens of thousands of dollars. Game configuration errors have
provided players with games over-crediting players; again, this costs the
respective properties unnecessary losses.
The commonality of these losses is their
ability to have been easily prevented if the knowledge was imparted and
applied.
Now, the good news. The
industry has many options to assist in training, many of which are relatively
inexpensive or even free.
Train the trainer approach
For those properties with
time and cost concerns, utilizing point employees as trainers will provide a
cost effective solution. These point employees are chosen on their ability to
comprehend and pass the information on to other staff members. The trainers
attend the designated training classes and then pass the information to their
coworkers.
Continuing education
programs have progressed to the point that they have casino specific options
that directly pertain to current topics.
These programs are still great resources for general topics but are provided in
a more concentrated period.
The companies providing you
with your equipment have a solid interest in seeing their products used
properly. A quick review of your sales and maintenance agreements will bring
you up to speed as to what is included and what training is billable.
As
with all industries, gaming has the fringe element of the consultant industry.
Consultants are generally highly-trained individuals with experience in the
field. They have received the training that you require and have the ability to
provide the support you require. This support has a tendency to be more cost
effective and tailored to your specific needs.
For
those with a collective bargaining agreement, you are likely paying a portion
of the hourly wage to an education or training fund. These funds are fully
intended to be utilized to ensure your staff maintains a competitive level of
skills.
Unfortunately, the majority
of the gaming companies rarely take advantage of these funds. This can easily
be rectified by contacting the union’s business manager and coordinating your
programs.
John-Martin Meyer
has held director
positions in major casino properties such as the Grand Victoria in Illinois and
the Excalibur on the Las Vegas Strip during his 20-year gaming career. His work within the Mandalay Resort Group
provided valuable experience in several majorjurisdictions. He can be reached by
e-mail at j-mmeyer@mindspring.com, or by phone
at (702) 373-7758.
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