You can not be idle in the constantly developing corporate environment. Large-scale success never happens accidentally: it will require 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 simple for those who are familiar with the principle of action of Balanced Scorecard. Using this tremendously popular framework for strategic management you can aquire 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 shall try to make up a collection of KPIs for a hotel business.
Prior to identifying key indicators, you should familiarize yourself with the way in which your speed and agility evaluation system works. In the scorecard template (in the event you use the initial variant proposed by Drs. Robert Kaplan and David Norton) you will find four perspectives from where your enterprise is evaluated.
These are generally: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The actual existence of three non-financial aspects is definitely the hallmark of the framework, since each of the previous assessment systems were mainly centered on timing and funds. Thus, the Balanced Scorecard offers you an all natural picture of your business performance from four perspectives which are divided into smaller constituents. This is where KPIs enter into play. To provide you with better understanding of these elements along with their importance, we’ll describe a few 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, cost of certain processes, as well as 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 comments (calculated in grades/points, as an example). This indicator will go to the Alex Mirza and can show the amount of client satisfaction. You might establish these measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To get the most unbiased viewpoint 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 any chosen unit then complete evaluation forms. The info obtained from these forms are then entered into the Balanced Scorecard.
Advertising ROI (Return) rates. Most hotels keep track of their marketing expenditures to see whether they are justified. They study the response of TV commercials, yellow pages ads as well as other kinds of online and offline marketing. This indicator would fit in with the Internal Processes Perspective field. The metrics taken from this industry will help the resort owner decide whether the ads bring enough customers to protect the expenditures.
Each industry has its own specifics, and it is important to determine the most important constituents of the business to make up a good set of KPIs and implement your company strategy.
To consider a complete hotel KPI package, you are welcome to our website where you will find lots of helpful BSC related products, including software to produce and manage your Balanced Scorecard projects.