You can not be idle within the constantly developing business community. Large-scale success never happens by accident: 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 development of information technologies assessing Key Performance Indicators (KPI) is just easy if you are knowledgeable about the principle 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. So that you can clarify the BSC principle of work, we shall try to form a collection of KPIs for a hotel business.
Just before identifying key indicators, it is best to get to know 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 discover four perspectives that your enterprise is evaluated.
They are: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The presence of three non-financial aspects is the hallmark of this framework, since each of the previous assessment systems were mainly dedicated to timing and funds. Thus, the Balanced Scorecard offers you an all natural picture of your own business performance from four perspectives which can be separated into smaller constituents. This is where KPIs enter into play. To give you better understanding of these components 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, client satisfaction, expense of certain processes, along with overall management expertise of the hotel unit. These measurements are popular both by small motels and huge international hotel networks. Some of the indicators for hotel industry can include:
Customer feedback (calculated in grades/points, for instance). This indicator will visit the profile and definately will show the amount of client satisfaction. You might establish the following measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To have the most unbiased perspective with regards to the unit’s quality of service, business people send so-called ‘mystery shoppers’ which can be found at various marketing research organizations. Mystery shoppers use rsqono services of a chosen unit and after that fill in evaluation forms. The data obtained from these forms are then put into the Balanced Scorecard.
Advertising ROI (Return on your investment) rates. Most hotels monitor their marketing expenditures to view whether they are justified. They study the response of TV commercials, classifieds ads along with other forms of offline and online marketing. This indicator would fit in with the inner Processes Perspective field. The metrics obtained from this industry may help the resort owner decide if the ads bring enough customers to pay for the expenditures.
Each industry has its specifics, and it is essential to determine the most important constituents of the business to create up a great set of KPIs and implement your small business strategy.
To check out a total hotel KPI package, welcome to our website where you can find a lot of helpful BSC related products, including software to create and manage your Balanced Scorecard projects.