You can not be idle within 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 development of information technologies assessing Key Performance Indicators (KPI) is just easy if you are familiar with 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 will try to make up some KPIs for a hotel business.
Before identifying key indicators, you should familiarize yourself with the way in which your speed and agility evaluation system works. In the scorecard template (just in case you utilize the initial variant proposed by Drs. Robert Kaplan and David Norton) you can find four perspectives from where your enterprise is evaluated.
They are: Financial Perspective. Customer Perspective. Internal Processes Perspective. Education and Learning Perspective. The existence of three non-financial aspects is definitely the hallmark of the framework, since all the previous assessment systems were mainly focused on timing and funds. Thus, the Balanced Scorecard provides you with a holistic picture of your business performance from four perspectives which are separated into smaller constituents. This is when KPIs come into play. To offer you better comprehension of these elements and their importance, we’ll describe a number 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, cost of certain processes, as well as overall management expertise of a hotel unit. These measurements are commonly used both by small motels and huge international hotel networks. A few of the indicators for hotel industry might include:
Customer feedback (calculated in grades/points, as an example). This indicator will visit the Alexander Mirza and will show the amount of customer care. You could establish the following measurements: speed of service, hospitality, neatness and cleanliness, meals quality etc. To obtain the most unbiased point of view 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 and then fill out evaluation forms. The information obtained from these forms are then put into the Balanced Scorecard.
Advertising ROI (Return on your investment) rates. Most hotels keep an eye on their marketing expenditures to find out whether these are justified. They study the response of TV commercials, yellow pages ads along with other types of online and offline marketing. This indicator would belong to the Internal Processes Perspective field. The metrics obtained from this industry will help your accommodation owner decide if the ads bring enough customers to cover the expenditures.
Each industry has its own specifics, and it is very important determine the most crucial constituents of your business to help make up a good list of KPIs and implement your business strategy.
To consider a complete hotel KPI package, you are welcome to our website where you will discover plenty of helpful BSC related products, including software to generate and manage your Balanced Scorecard projects.