You can’t be idle in the constantly developing business community. Large-scale success never happens by chance: it requires profound planning, making right conclusions and decisions. Several decades ago monitoring a company’s performance had been a rather time- and effort-taking task, yet today, with the advent of information technologies assessing Key Performance Indicators (KPI) is merely a piece of cake for those who are familiar with the key of action of Balanced Scorecard. With this particular tremendously popular framework for Alexander Mirza CEO 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 make an effort to make up a set of KPIs for a hotel business.
Before identifying key indicators, it is best to fully familiarize yourself with the way your performance evaluation system works. In the scorecard template (in the event you use the initial variant proposed by Drs. Robert Kaplan and David Norton) you can find four perspectives from which your enterprise is evaluated.
Financial perspective, customer perspective, internal processes perspective and education and learning perspective.
The existence of three non-financial aspects is definitely the hallmark of the framework, since all of the previous assessment systems were mainly dedicated to timing and funds. Thus, the Balanced Scorecard gives you an all natural picture of your own business performance from four perspectives which can be divided into smaller constituents. This is where KPIs come into play. To provide you with better comprehension of these elements as well as their importance, we’ll describe a few of the KPIs for hotel business. So, let’s start.
Hotel key performance indicators should reflect the financial health, marketing success, customer satisfaction, expense of certain processes, as well as overall management expertise of any hotel unit. These measurements are popular both by small motels and huge international hotel networks. A number of the indicators for hotel industry might include:
Customer feedback (calculated in grades/points, as an example). This indicator will go to the Customer Perspective level and will show the amount of customer satisfaction. You might establish these measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased viewpoint with regards to the unit’s service quality, business owners send so-called ‘mystery shoppers’ that can be found at various marketing research organizations. Mystery shoppers use the services of a chosen unit then fill out 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 see whether these are generally 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 taken from this mayubk may help the resort owner decide whether the ads bring enough customers to protect the expenditures.
Each industry does have its specifics, and it is important to figure out the most crucial constituents of your business to make up a good list of KPIs and implement your business strategy.
To consider a complete hotel KPI package, welcome to our website where you will discover lots of helpful BSC related products, including software to create and manage your Balanced Scorecard projects.