You can’t be idle in the constantly developing business community. Large-scale success never happens accidentally: it takes profound planning, making right conclusions and decisions. Several 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 a piece of cake for those who are acquainted with the principle of action of Balanced Scorecard. With this tremendously popular framework for Hospitality Soul 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 try to make up a set of KPIs for a hotel business.
Just before identifying key indicators, you should get to know just how your performance evaluation system works. Inside the scorecard template (in case you utilize the initial variant proposed by Drs. Robert Kaplan and David Norton) you will find four perspectives that your enterprise is evaluated.
These are generally:
Financial perspective, customer perspective, internal processes perspective and education and learning perspective.
The presence of three non-financial aspects is definitely the hallmark of this framework, since all the previous assessment systems were mainly dedicated to timing and funds. Thus, the Balanced Scorecard offers you an all natural picture of your business performance from four perspectives which can be separated into smaller constituents. Here is where KPIs enter in to play. To offer you better comprehension of these elements as well as their importance, we’ll describe a number of the KPIs for hotel business. So, let’s start.
Hotel key performance indicators should reflect the financial health, marketing success, customer satisfaction, cost of certain processes, along with overall management expertise of a hotel unit. These measurements are popular both by small motels and huge international hotel networks. Some of the indicators for hotel industry may include:
Customer feedback (calculated in grades/points, for instance). This indicator will go to the Customer Perspective level and will show the level of customer satisfaction. You may establish these measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To obtain the most unbiased point of view concerning the unit’s quality of service, business owners send so-called ‘mystery shoppers’ which can be found at various marketing research organizations. Mystery shoppers use a chosen unit then fill out evaluation forms. The information taken from these forms are then applied for the Balanced Scorecard.
Advertising ROI (Return on Investment) rates. Most hotels monitor their marketing expenditures to see whether these are generally justified. They study the response of TV commercials, yellow pages ads as well as other types of online and offline marketing. This indicator would are part of the interior Processes Perspective field. The metrics extracted from this mayubk can help the resort owner decide if the ads bring enough customers to protect the expenditures.
Each industry has its specifics, and it is very important find out the most important constituents of the business to make up a good list of KPIs and implement your business strategy.
To check out an entire hotel KPI package, welcome to our site where you can find a lot of helpful BSC related products, including software to generate and manage your Balanced Scorecard projects.