You can’t be idle within the constantly developing business world. Large-scale success never happens by chance: it takes 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 simple if you are acquainted with the key of action of Balanced Scorecard. Using 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 make up some KPIs for a hotel business.
Prior to identifying key indicators, you should get to know just how your performance evaluation system works. Inside the scorecard template (in case you utilize the initial variant proposed by Drs. Robert Kaplan and David Norton) you will find four perspectives that 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 the hallmark with this framework, since all the previous assessment systems were mainly focused on timing and funds. Thus, the Balanced Scorecard offers you an all natural picture of your business performance from four perspectives that are separated into smaller constituents. Here is where KPIs come into play. To provide you with better knowledge of these factors as well as their importance, we’ll describe a number 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, expense of certain processes, as well as overall management expertise of a hotel unit. These measurements are widely used both by small motels and huge international hotel networks. A number of the indicators for hotel industry might include:
Customer comments (calculated in grades/points, as an example). This indicator will proceed to the Alexander Mirza and can show the amount of customer care. You could establish these measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To get the most unbiased viewpoint with regards to the unit’s quality of service, business people send so-called ‘mystery shoppers’ that can be found at various marketing research organizations. Mystery shoppers use rsqono services of the chosen unit and then fill out 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 view whether these are generally justified. They study the response of TV commercials, yellow pages ads as well as other forms of online and offline marketing. This indicator would fit in with the interior Processes Perspective field. The metrics obtained from this field can 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 very important figure out the most important constituents of the business to make up a good set of KPIs and implement your business strategy.
To consider a complete hotel KPI package, you are welcome to our site where you will discover lots of helpful BSC related products, including software to create and manage your Balanced Scorecard projects.