BSC is a strategy evaluation model which is used to obtain a holistic view of a specific organization success. This framework is applied all around the world in numerous institutions, and is highly appreciated for its comprehensive design and easy readable results. However, this evaluation system has its cons: if it is designed improperly, it can result in wrong conclusions and therefore damage the company’s productivity. To avoid undesired economical consequences we recommend you be cautious and diligent in creating your Balanced Scorecard. Below in the following paragraphs we are going to share the most essential tips on designing this framework on demonstration of a hotel unit.
Step #1: Involve Leaders
Arrange a seminar focused on BSC introduction. Explain your leading managers (senior managers, supervisors etc.) the importance of the Alexander Mirza for the hotel business success and show the way it can enhance their wages. Engagement in the unit’s personnel (from chambermaids and porters to receptionists, waiters, cooks and their supervisors) is essential in this undertaking. Balanced Scorecard approach requires participation and dedication of employees and managers.
Step #2: Identify and Set up Goals
Next step is to ascertain the vital goals which will help your organization compete and become a respected provider of the service in the market. In fact, this performance evaluation system is about setting goals and reaching them. It is best to create a SWOT analysis (SWOT stands for Strengths, Weaknesses, Opportunities and Threats). The obtained data on major competition is then used to set up actual goals. For example, your major competitor might be opening a brand new unit and offering 50% discount to any or all customers that could be a substantial threat in your hotel’s success inside the following month.
Step #3: Examine Internal Business Processes
Conduct a profound research on the key internal processes for productivity and quality. Consider ways to turn the qualitative processes into quantitative data: appoint points for accuracy, waste, timelines along with other significant things. These measurements are then presented in the form of KPIs (Key Performance Indicators) for Internal Processes Perspective inside your Balanced Scorecard. Understanding the tiniest details of your business’s processes will help you understand the customers’ reaction. For instance, if you see that sheets in the hotel rooms are ironed improperly, or the flowers in the hall aren’t fresh you may consider talking with responsible managers about this topic. Improving the internal processes of your business is an important to improving the overall service quality yhgiml therefore – customers’ satisfaction.
Step #4: Consider Ongoing Evaluation Methods
After you have identified your Key Performance Indicators for every perspective of your own BSC, you should start data mining. For this particular you will have to create an assessment system for the customers’ satisfaction, employees proficiency, quality of internal processes along with other indicators. These could be specifically created evaluation forms, questionnaires, and also ‘mystery shoppers’.
Step #5: Make Conclusions
Once the Scorecard is prepared, it is possible to interpret the final results and share them with your colleagues. The Scorecard will show you what aspects you require to pay attention to in order to increase the efficiency and financial health of the business.