Motel Strategy Map

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Running a motel or a chain of motels is quite different from managing hotels. Different traget groups, different costs and expenses etc. In this article we will talk about implementation of Balanced Scorecard in a motel. Check additional information about motel strategy map.

When a chain of motels experiences problems losses can be enormous. Indeed, if one motel faces with difficulties and problems, the other motels in a chain will have the same problems as well. Thus, in order to overcome crisis or gain competitive advantage in the market it is necessary to implement strategic plans. It is possible to adopt a comprehensive strategy and forget about it for several years, and then see whether or not the company has succeeded to reach strategic goals. However, this is a big risk. Why not use a proven strategic management and performance evaluation tool that is popular in various industries and businesses? We are talking about Balanced Scorecard. BSC is perfect for hotels, motels and inns. In this article we will talk about how a motel can benefit from Balanced Scorecard.

First off, it needs mentioning that Balanced Scorecard is just useless unless a company that uses this system has a strategy that is clear both to top management/owners and company employees. Would you need a map or a GPS navigator if you do not know where you are going? Of course, these devices would be useless. The same is the case with BSC and strategic plans. A motel should have a strategy. Motel top management should know where they are going, what market segment they are about to occupy, who their customers are and how they are going to make customers unique offers. Strategy is a form of protection for any company, including a motel.

As to the next stages, here comes the implementation process. It starts with development of key performance indicators which are distributed among 4 categories: financial, customer, internal business processes, learning and growth. The 4 categories cover critical success factors for a motel. Besides, all indicators and categories are interrelated. What does it mean? Let's view a simple example. What is a goal of any motel? Right, making profits! How is it possible? Guests pay money to stay in motels. The more visitors, the more money. Why would people love staying in certain motels? Customers like low prices, excellent service and positive image of a motel. How is it possible to offer top quality service at reasonable prices? It is possible through optimization of motel performance and cost savings which is possible through education and training of personnel. In this example we showed cause and effect ties between categories.

Through measurement of KPIs in the 4 categories of motel scorecard it becomes possible to analyze information on current motel performance in terms of implementation of strategic goals. It is imperative to select the right key performance indicators that really represent key success factors for a motel. Thus, for example employee lateness rate may be not as important as cleaning cost per room or revenue per room. One of the most important indicators in a motel BSC is room occupancy. If more than half of motel rooms are empty all the time, something should be undertaken in order to change the situation.

If you are interested in motel strategy map, check this link to find out more about motel strategy map. Also, you can check other articles in Strategic Planning category.

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