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Managing of an inn is quite a daunting task taking into account that inns are quite different from hotels and motels. In this article we will talk about KPIs that are to be used for evaluation of inn's performance with Balanced Scorecard. Check additional information about inn metrics.

Hospitality industry is going through harsh times. After the global recession many people do not have money to book hotels and have a great time there, while others who often travel on business choose cheaper options. Moreover, there is a tough competition in this market. Inns, however, are quite different from hotels. In an inn you will most certainly feel at home or at least as if you came to visit your relatives who are happy to see you. Yes, hotel's owners and managers also personally meet VIP guests and see them to their rooms. In inns this is a standard rule. Since inns are usually not very big, it is possible to adopt a personal approach to every guest. However, inns also experience problems, and unless managed properly they can bring nothing but headache to their owners. Luckily, there is Balanced Scorecard that can help optimize performance and put strategy into action.

A strategy is a kind of protection for any business. Strategy involves future planning and anticipation of possible problems. Inns are not insured against crises, thus, it would be great for inn's owners and management to start using BSC. Now, let's clear up what Balanced Scorecard is and how it can benefit inns' owners.

Balanced Scorecard is a performance evaluation and strategic management tool developed by two business gurus Norton and Kaplan. These business experts were the first to introduce non financial KPIs to performance evaluation system. Balanced Scorecard consists of 4 categories which are financial, customer, internal processes, learning and growth. BSC start functioning as soon as evaluation of key performance indicators begin. KPIs are chosen individually for every business type and company. However, there are sets of KPIs developed for various industries, including inn and hotel business. Sure, such sets cannot guarantee success, but it is possible to select the right indicators and amend them if necessary.

What are the most important KPIs in inn evaluation? If you think that these are financial indicators, you are mistaken. Sure, financial measures are all important since the goal of every business is to make profits, and inn is definitely not an exception here. However, progress in indicators in the other 3 categories will certainly contribute to achievement of positive financial results.

For example, through measurement of such KPIs as number of claims per customer or customer satisfaction it is possible to understand why the total number of customer is constantly decreasing. Introduction of additional services (like providing guests with information, city guides, ordering taxi, booking tables in restaurants etc) can improve customer satisfaction and thus boost inn performance.

The same concerns personnel. If there is high personnel turnover rate, it means that newcomers need time to get used to the work and learn everything they need to know. Education of employees and their participation in seminars and trainings is also a critical success factor.

In general, Balanced Scorecard makes it possible to locate weak points in inn's work, solve problems at early stages and monitor the process of strategy implementation.

If you are interested in inn metrics, check this link to find out more about inn metrics. Also, you can check other articles in General category.

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.