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What is the best way to avoid pitfalls when introducing BSC in a hotel? How to choose the right hotel's metrics? What are most common hotel KPIs? Find answers in this article. Check additional information about services provided by hotels bsc.

Very often top managers and business owners make very serious mistakes when implementing Balanced Scorecard in their companies. This also concerns hotel owners and top managers running hotels, inns and motels chains. The problem is that there is a tough competition in this market. If a potential hotel visitor does not stay in hotel A, he or she will most certainly go to hotel B. Thus, if one hotel earns money the other loses it. This increases gap between them, and one of the hotels loses competitive advantage. Such losses may result in bankruptcy and serious problems for hotel owners. Use of Balanced Scorecard can help solve these problems (but BSC never solves problems by itself, never substitutes strategy etc.) In this article we will talk about Balanced Scorecard use in hotel industry.

First off, it is worth saying that Balanced Scorecard works effectively only if the entire hotel personnel is involved. What does it mean in practice? Of course it is impossible to involve every employee. Cleaning service maids should not necessarily take part in discussions of company strategy. However, the need to understand how their work contributes to implementation of strategic goals and what benefits they will get the hotel is doing OK. This improves organization climate as well as personal motivation of most employees. Is Balanced Scorecard becomes a part of an everyday routine for the majority of hotel personnel, there are many chances that BSC will lead such a hotel to success.

Of course, the most important part is development of hotel strategy and creation of key performance indicators that will be evaluated in the hotel Balanced Scorecard. Hotel KPIs differ from those used in other industries although they have the same nature. Traditionally, key performance indicators are split between the four categories which are financial, customer, internal business processes, learning and growth. All the four categories are vitally important for a hotel.

There is a common mistake that top managers and those employees responsible for implementation of Balanced Scorecard in a hotel pay the most attention to financial indicators. In fact there is nothing wrong with financial KPIs, however one needs to remember that achievement of positive financial results is impossible without making accomplishments and improving indicators in the other three categories. Thus, there will be no regular customers if customer satisfaction rate constantly goes down. Thus, revenue will drop dramatically. No guests means no money.

It is impossible to decrease cost per room (maintenance and cleaning) without use of optimize procedures and even later technologies. Balanced Scorecard will vividly demonstrate what must be improved to achieve adopted goals. Performance optimization will perhaps result in opposition of ordinary personnel. However, if everything is done right, Balanced Scorecard will contribute to improvement of personnel motivation and desire to show top performance. Top managers have to remember that implementation of Balanced Scorecard always comes with introduction of a fair and comprehensive reward and compensation system for the hotel personnel. Only motivated personnel will show the best performance!

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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.