A Balanced Scorecard
May 15, 2010
Made popular in 1996 by Kaplan and Norton, the balanced scorecard acts as an organizational report card that varies from business to business (Nyheim, McFadden & Connelly 2005). When assessing performance companies do not use single measurements, but rather a set of measurements which takes into the stakeholders, employees, guests, owners, supplier’s investors and franchisees. The goal of a comprehensive balanced scorecard allows management to monitor measurements such as financial ratios, net profit, revenues, and budget ...view middle of the document...
Management also the uses this information collected to monitor and measure completive activity and positioning including; rate positioning and market share, internal factors such as cost savings and efficiencies (Nyheim, McFadden & Connolly 2005). The front office uses the data collected to monitor and measure operational statistics that includes; occupancy, average dollar per room, total room revenue, rooms nights sold, and REVPAR. Employee measures such as satisfaction ratings, (Nyheim, McFadden & Connolly 2005). The sales department uses the data collected to monitor and measure guest perspectives such as satisfaction ratings and repeat business also any community sponsored programs or charitable contributions (Nyheim, McFadden & Connolly 2005). The back office uses the data collected to monitor and measure supplier performance and relationships such as on-time delivery and quality, delivery management systems, overtime, and turnover. Assessment learning and innovations such as trainings, experimentation, research and development and new ideas also falls under the back office (Nyheim, McFadden & Connolly 2005). Housekeeping uses the data collected to monitor and measure environmental concerns such as recycling programs and energy consumption (Nyheim, McFadden & Connolly 2005).
A balanced scorecard can help to determine the rates of a hotel room for a particular time of year, day or week, through measured data collected through the different department over a period of time. These measurements focus on different internal and external indications which include actual results and projections from comparisons to historical and budgeted results (Nyheim, McFadden & Connolly 2005). Through such data provide from departments such as sales and marketing, and business trends give distribution models on a balanced scorecard which gives management programs with dynamic real-time pricing. Hotel now channel reservations through services that yield greater contribution margins, which improves the hotels operating cost and as a result the hotels a completive advantage over other hotels (Nyheim, McFadden and Connolly 2005). Some channels also charge fixed fees in addition to transactions fees and services, example intermediary commissions 10 percent of the room total revenue, airline GDS fee $3 to $4 Universal switch $.25 to $.75 and hotel CRS $8 to $12 quickly adds up to as 20 percent of the hotels daily rate (Nyheim, McFadden & Connolly 2005).
In the food and beverage department a balanced scorecard measures sales and operations. This tool becomes critical to management because if studied correctly the scorecard enables different locations and employees to join together in for a more profitable department (Nyheim, McFadden and Connolly 2005). The food and beverage department uses the data from the balanced scorecard...