You can’t be idle in the constantly developing corporate environment. Large-scale success never happens by accident: it requires 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 simply easy for those who are knowledgeable about the principle of action of Balanced Scorecard. With this tremendously popular framework for strategic management you can get a comprehensible picture of your business’s state of affairs without being an analytic guru. In order to clarify the BSC principle of work, we will try to form a set of KPIs for a hotel business.
Before identifying key indicators, it is advisable to get to know the way your performance evaluation system works. Inside the scorecard template (just in case you use the initial variant proposed by Drs. Robert Kaplan and David Norton) you will find four perspectives from where your enterprise is evaluated.
These are: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The presence of three non-financial aspects is definitely the hallmark of the framework, since all of the previous assessment systems were mainly centered on timing and funds. Thus, the Balanced Scorecard provides you with 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 knowledge of these elements as well as 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, client satisfaction, price of certain processes, along with overall management expertise of a hotel unit. These measurements are commonly used both by small motels and huge international hotel networks. Some of the indicators for hotel industry may include:
Customer opinions (calculated in grades/points, for instance). This indicator will go to the Press Release and can show the level of client satisfaction. You could establish these measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased point of view with regards to the unit’s quality of service, business people send so-called ‘mystery shoppers’ which can be found at various marketing research organizations. Mystery shoppers use rsqono services of a chosen unit and then fill in evaluation forms. The information obtained from these forms are then put into the Balanced Scorecard.
Advertising ROI (Return) rates. Most hotels keep track of their marketing expenditures to see whether they are justified. They study the response of TV commercials, classifieds ads along with other types of offline and online marketing. This indicator would belong to the interior Processes Perspective field. The metrics obtained from this field will help the hotel owner decide whether or not the ads bring enough customers to pay for the expenditures.
Each industry has its own specifics, and it is important to find out the most crucial constituents of the business to create up an excellent set of KPIs and implement your small business strategy.
To look at a complete hotel KPI package, welcome to our site where you will discover plenty of helpful BSC related products, including software to produce and manage your Balanced Scorecard projects.