You can’t be idle in the constantly developing business world. Large-scale success never happens by accident: it will require 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 all the advent of information technologies assessing Key Performance Indicators (KPI) is merely a piece of cake for those who are acquainted with the principle of action of Balanced Scorecard. Using this tremendously popular framework for Alexander Mirza 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 make up a set of KPIs for a hotel business.
Just before identifying key indicators, it is advisable to fully familiarize yourself with the way your speed and agility evaluation system works. In the scorecard template (just in case you utilize 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 presence 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 own business performance from four perspectives which can be divided into smaller constituents. This is where KPIs enter into play. To provide you with better understanding of these factors 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, price of certain processes, in addition to overall management expertise of any hotel unit. These measurements are commonly used both by small motels and huge international hotel networks. A few of the indicators for hotel industry might include:
Customer feedback (calculated in grades/points, for example). This indicator will visit the Customer Perspective level and can show the degree of customer care. You could establish the subsequent measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To get the most unbiased perspective 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 the services of a chosen unit and then fill out evaluation forms. The information taken from these forms are then put into the Balanced Scorecard.
Advertising ROI (Return on your investment) rates. Most hotels keep an eye on their marketing expenditures to view whether these are generally justified. They study the response of TV commercials, online directory ads and other types of offline and online marketing. This indicator would fit in with the interior Processes Perspective field. The metrics extracted from this mayubk will help your accommodation owner decide whether the ads bring enough customers to pay for the expenditures.
Each industry does have its specifics, and it is essential to determine the most important constituents of the business to help make up a great list of KPIs and implement your company strategy.
To look at a complete hotel KPI package, you are welcome to our site where you will discover plenty of helpful BSC related products, including software to produce and manage your Balanced Scorecard projects.