You can’t be idle within the constantly developing business world. Large-scale success never happens by accident: it requires 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 simply a piece of cake if you are acquainted with the key of action of Balanced Scorecard. With 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. So that you can clarify the BSC principle of work, we shall try to form a collection of KPIs for a hotel business.
Prior to identifying key indicators, it is advisable to fully familiarize yourself with just how your performance evaluation system works. In the scorecard template (in the event you make use of the initial variant proposed by Drs. Robert Kaplan and David Norton) you will discover four perspectives that your enterprise is evaluated.
They are: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The existence of three non-financial aspects is the hallmark of the framework, since all of the previous assessment systems were mainly focused on 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 enter into play. To give you better comprehension of these factors and 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, along with overall management expertise of any 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 comments (calculated in grades/points, for example). This indicator will go to the Alexander Mirza and definately will show the level of customer satisfaction. You might establish the subsequent measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To get the most unbiased point of view regarding 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 complete evaluation forms. The information taken from these forms are then applied for the Balanced Scorecard.
Advertising ROI (Return on Investment) rates. Most hotels keep an eye on their marketing expenditures to view whether these are justified. They study the response of TV commercials, yellow pages ads along with other kinds of online and offline marketing. This indicator would fit in with the inner Processes Perspective field. The metrics taken from this industry will help the resort owner decide whether or not the ads bring enough customers to cover the expenditures.
Each industry does have its specifics, and it is very important find out the most important constituents of your business to make up a good group of KPIs and implement your business strategy.
To check out an entire hotel KPI package, thanks for visiting our website where you will discover lots of helpful BSC related products, including software to create and manage your Balanced Scorecard projects.