BSC is a strategy assessment model that can be used to gain a holistic view on a company’s success. This framework is used in many institutions around the globe and is widely appreciated for its thorough design and easily readable results. This evaluation system does have its downsides. If it is not designed correctly, it can lead incorrect conclusions that could harm the company’s productivity. We recommend that you take care when creating your Balanced Scorecard to avoid unintended economic consequences. We will be sharing the best tips for designing this framework, using an example of a hotel unit.
Step #1: Involve Leaders
Arrange a seminar on BSC introduction. Explain your leading managers (senior managers, supervisors etc.) Explain the importance of the hotel business evaluation system and how it can improve their wages. This undertaking requires the engagement of all unit personnel, from chambermaids and porters, to receptionists, waiters and cooks, and their supervisors. All employees and managers must be involved in the Balanced Scorecard process.
Step 2: Set goals and identify them
Next, you need to identify the most important goals that will help your company be a leader in the market. This performance evaluation system is about setting goals and achieving them. A SWOT analysis is recommended (SWOT stands to Strengths, Weaknesses Opportunities and Threats). You can then use the data you have about your major competitors to help you set goals. Your competitor might open a new unit or offer 50% off to all customers. This could pose a serious threat to the success of your hotel in the next month.
Step 3: Examine internal business processes
Do a deep research about the internal processes that affect productivity and quality. You can turn qualitative data into quantitative data by identifying points that will measure accuracy, waste, timeliness, and other important factors. These measures are then presented as KPIs (Key performance indicators) for the Internal Processes Perspective of your Balanced Scorecard. Understanding the customer’s reaction to your business’s processes is key. If you notice that the sheets in your hotel rooms are not ironed correctly or that the flowers are not fresh, you might want to speak with responsible managers about this. Improvements in your company’s internal processes are key to improving customer satisfaction and overall service quality.
Step 4: Take into consideration ongoing evaluation methods
Once you have identified the Key Performance Indicators (for each perspective) for your BSC, it is time to begin data mining. You will need an evaluation system to measure customer satisfaction, employee proficiency, internal quality, and other indicators. These evaluation forms can include questionnaires and even mystery shoppers.
Step #5: Make conclusions
Once the Scorecard has been completed, you can analyze the results and share them to your coworkers. The Scorecard will help you identify the areas that need your attention in order to improve your overall performance and financial health.
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