You can not be idle within the constantly developing business community. 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 development of information technologies assessing Key Performance Indicators (KPI) is simply a piece of cake for those who are acquainted with the key of action of Balanced Scorecard. Using 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 will try to form some KPIs for a hotel business.
Before identifying key indicators, it is best to familiarize yourself with just how your performance evaluation system works. Within the scorecard template (in the event you utilize the initial variant proposed by Drs. Robert Kaplan and David Norton) you will discover four perspectives from which your enterprise is evaluated.
They are: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The actual existence of three non-financial aspects is definitely the hallmark of this framework, since each of the previous assessment systems were mainly dedicated to timing and funds. Thus, the Balanced Scorecard offers you an all natural picture of the business performance from four perspectives which can be divided into smaller constituents. This is when KPIs come into play. To give you better knowledge of these factors along with their importance, we’ll describe some 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, price of certain processes, in addition to overall management expertise of the hotel unit. These measurements are widely used both by small motels and huge international hotel networks. A number of the indicators for hotel industry can include:
Customer comments (calculated in grades/points, for instance). This indicator will proceed to the Alexander Mirza and can show the degree of customer satisfaction. You may establish these measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased point of view concerning the unit’s service quality, business owners 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 complete evaluation forms. The information obtained from these forms are then put into the Balanced Scorecard.
Advertising ROI (Return on 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 kinds of offline and online marketing. This indicator would belong to the inner Processes Perspective field. The metrics obtained from this field can help the resort owner decide whether the ads bring enough customers to cover the expenditures.
Each industry has its specifics, and it is essential to find out the most important constituents of your business to create up a great group of KPIs and implement your company strategy.
To check out an entire hotel KPI package, welcome to our site where you can find a lot of helpful BSC related products, including software to produce and manage your Balanced Scorecard projects.