Choosing to set up a hotel - in particular or an accommodation facility in general - involves paying attention to many aspects, more or less fundamental to the smooth running of the business. It is a complicated business, which must be followed as it deserves in order to reap financial and other rewards.
The objectives to be achieved are diverse and should always be studied, calculated and achieved in a professional manner. Top managers, when looking at and evaluating the performance of structures, are generally inspired by the balanced scorecard, which originated at General Electric with Jack Welch and was then transported to other kinds of services.
Balanced scorecard. What it is and why it is important to evaluate a hotel
Literally 'balanced scorecard', the balanced scorecard is a very useful tool for the strategic management of a company, whether it is related to the hotel industry or not, as it provides clear reference points for a timely and precise evaluation.
Having the possibility to measure the performance of one's business is necessary in order to always have under control one's strengths and areas where one needs to improve. It is thanks to the balanced scorecard that the results of a hotel become measurable with precision and reliability, thanks to KPIs (Key Performance Indicators).
Corporate KPIs to assess the performance of accommodation facilities
The balanced scorecard encompasses four KPIs and aims to maintain a balance between all the points necessary to achieve a level performance. In the hotel world, these are the KPIs that managers (but also heads of service) should look at consistently and carefully. Here are what they are:
1. Turnover. Turnover is certainly an essential aspect, although it is not the only one that shows a complete picture of the business.
2. Profit. Therefore, it is not only the turnover that is judged, as the operating profitability of a hotel is also crucial.
3. Benchmarking. Another important KPI to always keep in mind is that of benchmarking, which allows you to evaluate your own structure, putting it in relation to your competitors and also judging it according to the positioning of your competitors.
4. Customer Experience and Customer Satisfaction. This data encompasses both guest and employee satisfaction, which is essential to complete the scoreboard of the accommodation in question.
These 4 KPIs must result in 100, but having 100 in only one KPI is not a good result: when the balanced scorecard shows a certain imbalance between the factors, it means that there is something to change, because the 100 you should aim for is the one that creates a perfect balance between all 4 points.
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