You can not be idle within the constantly developing corporate environment. Large-scale success never happens by accident: it will require profound planning, making right conclusions and decisions. A few 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 just a piece of cake for those who are knowledgeable about the key of action of Balanced Scorecard. With this tremendously popular framework for strategic management you can aquire 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 shall try to make up some KPIs for a hotel business.
Before identifying key indicators, it is best to get to know the way in which your performance evaluation system works. Within the scorecard template (in case you make use of the initial variant proposed by Drs. Robert Kaplan and David Norton) you will discover four perspectives from which your enterprise is evaluated.
These are: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The existence of three non-financial aspects is the hallmark with this framework, since all the previous assessment systems were mainly dedicated to timing and funds. Thus, the Balanced Scorecard provides you with an all natural picture of your business performance from four perspectives which can be separated into smaller constituents. This is when KPIs enter in to play. To provide you with better understanding of these elements along with 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 care, price of certain processes, along with overall management expertise of the hotel unit. These measurements are widely used both by small motels and huge international hotel networks. A few of the indicators for hotel industry might include:
Customer feedback (calculated in grades/points, for instance). This indicator will go to the profile and can show the amount of client satisfaction. You might establish the following measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased perspective regarding the unit’s service quality, company owners send so-called ‘mystery shoppers’ which can be found at various marketing research organizations. Mystery shoppers use rsqono services of a chosen unit then fill in evaluation forms. The information extracted from these forms are then put into the Balanced Scorecard.
Advertising ROI (Return) rates. Most hotels monitor their marketing expenditures to find out whether these are justified. They study the response of TV commercials, classifieds ads along with other forms of online and offline marketing. This indicator would fit in with the interior Processes Perspective field. The metrics obtained from this field may help the hotel owner decide if the ads bring enough customers to pay for the expenditures.
Each industry does have its specifics, and it is essential to determine the most crucial constituents of your own business to help make up a good group of KPIs and implement your business strategy.
To look at a complete hotel KPI package, welcome to our website where you can find a lot of helpful BSC related products, including software to produce and manage your Balanced Scorecard projects.