You can’t be idle in the constantly developing business world. Large-scale success never happens by chance: 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 merely easy if you are knowledgeable about the key of action of Balanced Scorecard. With this tremendously popular framework for strategic management 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 just how your performance evaluation system works. In the scorecard template (in the event you utilize the initial variant proposed by Drs. Robert Kaplan and David Norton) you will find four perspectives from which your enterprise is evaluated.
These are: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The existence of three non-financial aspects is definitely the hallmark of this framework, since all of the previous assessment systems were mainly dedicated to timing and funds. Thus, the Balanced Scorecard provides you with an all natural picture of your own business performance from four perspectives that are split into smaller constituents. This is where KPIs enter into play. To offer you better understanding of these factors and 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 care, 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 can include:
Customer opinions (calculated in grades/points, for example). This indicator will go to the Press Release and will show the amount of customer satisfaction. You may establish the following measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased perspective concerning the unit’s service quality, company owners send so-called ‘mystery shoppers’ which can be found at various marketing research organizations. Mystery shoppers use rsqono services of the chosen unit and after that fill out evaluation forms. The info taken from these forms are then applied for the Balanced Scorecard.
Advertising ROI (Return) rates. Most hotels monitor their marketing expenditures to see whether these are justified. They study the response of TV commercials, classifieds ads as well as other types of online and offline marketing. This indicator would belong to the Internal Processes Perspective field. The metrics taken from this field can help the hotel owner decide whether the ads bring enough customers to cover the expenditures.
Each industry has its own specifics, and it is important to figure out the most crucial constituents of your own business to help make up an excellent list of KPIs and implement your business strategy.
To look at a complete hotel KPI package, welcome to our site where you will find a lot of helpful BSC related products, including software to generate and manage your Balanced Scorecard projects.