A Guide for Management of Hotels BSC

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Implementation of Balanced Scorecard in a hotel is quite a complex process that can become a dauting task even for experienced hotel top managers. Read this article to get more info on hotel BSc and its components. Check additional information about management of hotels bsc.

Implementation and maintenance of Balanced Scorecard is not a fly by night event in the life of a company this is a lengthy process that requires complex approach and involvement of the entire personnel, from low level employees to top managers and business owners. Balanced Scorecard is not like other tools that look similar. BSC is really unique since it was the first system that included nonfinancial indicators to the list of measures to be evaluated for strategic management purposes. Of course, implementation process differs from industry to industry. This is explained by a peculiarity is of every business and individual character of every company. Hotel industry is a highly competitive market. Indeed, there is no lack of hotels and inns. When we're looking for a hotel we pay attention to price, hotel reviews and offered services. Many of us want to feel at home in a hotel rather than to spend a night there. Hotels are fighting to win customer loyalty and thus they improve services.

A hotel without a strategy is doomed to fail in this highly competitive market. Strategy is not about goals and objectives. It is about future vision and solving problems even before the show up. Strategic planning is about modeling business situations, making forecasts as to future developments in the market etc. A strategy for the hotel implies setting of ambitious goals that are at the same time realistic. Making much money is a cute strategy, however, a good strategy also demonstrates how it is going to be implemented. Every hotel is dreaming of enlarging customer base and improve and loyalty of customers. There are people who stay in the same hotel during vacations for decades. Thus, these are regular customers for the hotel. Such achievements are results of a long-term strategy aimed at improving customer loyalty. These are not short term programs aimed at earning fast cash. Strategy works throughout the years.

Balanced Scorecard is among the most popular strategic management and performance evaluation tools. Development of hotel Balanced Scorecard starts with strategic planning. As already said above, strategy must be realistic. Once the strategy developed it is time to select key performance indicators to be evaluated. KPIs are those measures that demonstrate hotel progress or regress on its way to achieve goals. Choice of key performance indicators is one of the most important stages in the entire BSC implementation process. Some of the most popular examples of hotel KPIs are revenue per room, revenue per customer, percentage of occupied rooms per night, percentage of international guests, percentage of customer complaints, customer satisfaction, percentage of housekeeping cost vs overall expenses etc. It should be mentioned that every hotel will have its own set of key performance indicators as every business is individual.

The next stage is analysis of evaluation results. There is always something to be improved in any business. Thus, top management and business owners should make relevant decisions in order to improve services or fix problems as displayed by hotel BSC.

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Balanced Scorecard Toolkit includes step-by-step manuals, documents, presentations, check lists designed to help business professionals with successful development and implementation of Balanced Scorecard. Learn more about BSC Toolkit.