You can’t be idle in the constantly developing business world. Large-scale success never happens accidentally: it takes profound planning, making right conclusions and decisions. Several decades ago monitoring a company’s performance was actually a rather time- and energy-taking task, yet today, with all the advent of information technologies assessing Key Performance Indicators (KPI) is merely a piece of cake for people who are familiar with the principle of action of Balanced Scorecard. With this particular tremendously popular framework for Alexander Mirza you can get 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 will make an effort to make up a set of KPIs for a hotel business.
Before identifying key indicators, you should fully familiarize yourself with the way your speed and agility evaluation system works. In the scorecard template (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.
These are generally:
Financial perspective, customer perspective, internal processes perspective and education and learning perspective.
The existence of three non-financial aspects is definitely the hallmark of this framework, since each of the previous assessment systems were mainly focused on timing and funds. Thus, the Balanced Scorecard gives you a holistic picture of the business performance from four perspectives which are divided into smaller constituents. This is when KPIs enter in to play. To give you better knowledge of these components 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 popular both by small motels and huge international hotel networks. Some of the indicators for hotel industry might include:
Customer comments (calculated in grades/points, for example). This indicator will go to the Customer Perspective level and definately will show the degree of client satisfaction. You might establish the subsequent measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased viewpoint with regards to the unit’s quality of service, business owners send so-called ‘mystery shoppers’ that can be found at various marketing research organizations. Mystery shoppers use a chosen unit and then fill in evaluation forms. The data obtained from these forms are then put into the Balanced Scorecard.
Advertising ROI (Return) rates. Most hotels monitor their marketing expenditures to view whether these are justified. They study the response of TV commercials, yellow pages ads as well as other kinds of offline and online marketing. This indicator would belong to the interior Processes Perspective field. The metrics extracted from this mayubk may help the hotel owner decide if the ads bring enough customers to pay for the expenditures.
Each industry has its own specifics, and it is essential to figure out the most crucial constituents of your business to make up a good set of KPIs and implement your business strategy.
To consider a complete hotel KPI package, welcome to our website where you will find plenty of helpful BSC related products, including software to produce and manage your Balanced Scorecard projects.