You can not be idle in the constantly developing corporate environment. Large-scale success never happens accidentally: it requires profound planning, making right conclusions and decisions. A couple of decades ago monitoring a company’s performance was a rather time- and effort-taking task, yet today, with the advent of information technologies assessing Key Performance Indicators (KPI) is merely easy if you are knowledgeable about the key of action of Balanced Scorecard. With this tremendously popular framework for strategic management you can obtain a comprehensible picture of your business’s state of affairs without being an analytic guru. To be able to clarify the BSC principle of work, we will try to form a set of KPIs for a hotel business.
Prior to identifying key indicators, you should familiarize yourself with the way in which your speed and agility evaluation system works. Inside the scorecard template (in the event you make use of the initial variant proposed by Drs. Robert Kaplan and David Norton) you can find four perspectives from where your enterprise is evaluated.
These are generally: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The actual existence of three non-financial aspects will be the hallmark of the framework, since all the previous assessment systems were mainly dedicated to timing and funds. Thus, the Balanced Scorecard offers you a holistic picture of your own business performance from four perspectives which can be separated into smaller constituents. This is where KPIs enter in to play. To provide you with better understanding of these factors and their importance, we’ll describe a few of the KPIs for hotel business. So, let’s start.
Hotel KPIs – Hotel key performance indicators should reflect the financial health, marketing success, customer satisfaction, cost of certain processes, along with overall management expertise of the hotel unit. These measurements are popular both by small motels and huge international hotel networks. Some of the indicators for hotel industry might include:
Customer comments (calculated in grades/points, as an example). This indicator will visit the profile and will show the amount of customer care. You could establish these measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased perspective concerning the unit’s service quality, business people send so-called ‘mystery shoppers’ that can be found at various marketing research organizations. Mystery shoppers use rsqono services of a chosen unit and after that fill out evaluation forms. The information obtained from these forms are then entered into the Balanced Scorecard.
Advertising ROI (Return on your investment) rates. Most hotels keep track of their marketing expenditures to find out whether these are justified. They study the response of TV commercials, yellow pages ads along with other forms of offline and online marketing. This indicator would are part of the Internal Processes Perspective field. The metrics obtained from this field will help the resort owner decide whether or not the ads bring enough customers to cover the expenditures.
Each industry has its own specifics, and it is important to determine the most crucial constituents of your own business to make up an excellent set of KPIs and implement your business strategy.
To look at an entire hotel KPI package, you are welcome to our website where you will discover lots of helpful BSC related products, including software to create and manage your Balanced Scorecard projects.