Maximizing the Success of Balanced Scorecard Implementation in the Hospitality Industry

Abstract

The balanced scorecard (BSC) is increasingly being adopted by firms in the corporate sector, with some studies estimating that more than 40% of the Fortune 100 companies will implement the BSC by 2001. Analogous to the instrument panel of a plane, the BSC provides management with a holistic view of what is happening inside and outside the organization. A well-designed BSC can help management to translate the organization's mission into goals, actions and performance measures, align individual and organizational goals, and measure/guide progress towards goal attainment. However, the BSC is not without its share of pitfalls and problems. This article discusses how hospitality establishments also can reap the benefits from implementing the BSC while avoiding its pitfalls. We provide an overview of the nature of the BSC, and review two case studies from the hospitality industry. Findings from discussions with hotel general managers also are reported. These managers strongly support the potential usefulness of the BSC in their industry. Then we draw on Martha S.

Balanced Scorecard Usage and Performance of Hotels: A Study from the Tourist State of Uttarakhand, India

“…Measuring performance plays an important role in planning and decisionmaking and makes the link between strategy intent, competitive environment, revenue generation, service delivery process and strategic evaluation (Kaplan & Norton, 1992;Doran, Haddad & Chow, 2002). It is seen as an important way of keeping a company on track for achieving the organization's objectives and as a monitoring mechanism employed by the owners of an organization (Ittner et al, 2003).…”

“…Huckestein & Duboff (1999) and Denton & White (2000) reported on the experiences of White Lodging Services in implementing the BSC and recorded several positive improvements in the performance. Harris & Mongiello (2001) and Doran et al (2002) examined the range of key indicators that hotel managers find useful in managing their businesses, acknowledging the value of the BSC. Brander-Brown & McDonnell (1995), Phillips (1999), Atkinson & Brander-Brown, (2001), Ittner et al (2003), Banker, Potter & Srinivasan (2005), Haktanir & Harris (2005) and Ramdeen, Santos & Chatfield (2007) concluded that both financial and non-financial performance improve the overall performance of organizations.…”

The Balanced Scorecard in Hotel Managment

“…Narzędzia tego nie można traktować jak rozwiązania gotowego do użycia (Doran, Haddad, Chow, 2002). Wymaga ono dostosowania do zaistniałych okoliczności i wymagań przedsiębiorstwa.…”

Human resource managers’ perceptions of the applications and merit of the balanced scorecard in hotels

“…Notwithstanding these benefits, it has been acknowledged that the process of adopting the BSC is complex and requires the commitment of resources and time to monitoring, continuous learning, feedback and adjustments (Doran et al, 2002). A balance needs to be struck between having sufficient detail to be actionable, but only enough to be meaningful in a way that can be easily interpreted by managers (Lingle and Schiemann, 1996).…”