You can not be idle in the constantly developing corporate environment. 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 a piece of cake for those who are familiar with the principle of action of Balanced Scorecard. Using this tremendously popular framework for strategic management you can obtain 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 some KPIs for a hotel business.
Before identifying key indicators, you should familiarize yourself with just how your performance evaluation system works. In the scorecard template (in case you make use of the initial variant proposed by Drs. Robert Kaplan and David Norton) you will find four perspectives that 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 the hallmark of this framework, since all of the previous assessment systems were mainly focused on 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. Here is where KPIs enter into play. To offer you better comprehension of these components as well as 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 satisfaction, expense 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. Some of the indicators for hotel industry can include:
Customer comments (calculated in grades/points, for instance). This indicator will proceed to the profile and definately will show the degree of customer care. You may establish the subsequent measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To get the most unbiased perspective regarding the unit’s quality of service, company owners send so-called ‘mystery shoppers’ that can be found at various marketing research organizations. Mystery shoppers use rsqono services of any chosen unit and then fill in evaluation forms. The information taken from these forms are then applied for the Balanced Scorecard.
Advertising ROI (Return on your investment) rates. Most hotels keep track of their marketing expenditures to find out whether these are generally justified. They study the response of TV commercials, classifieds ads as well as other forms of online and offline marketing. This indicator would fit in with the Internal Processes Perspective field. The metrics taken from this field can help your accommodation owner decide whether the ads bring enough customers to protect the expenditures.
Each industry has its specifics, and it is important to determine the most crucial constituents of your own business to help make up a great group of KPIs and implement your small business strategy.
To look at a total hotel KPI package, you are welcome to our website where you will discover a lot of helpful BSC related products, including software to create and manage your Balanced Scorecard projects.