A Balanced Scorecard Brenda Rivers HTT 220 May 15, 2010 Simone Davis

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 variances. Key indicators or critical success factors provide information across vast categories including; operational statistics, competitive activity, internal factors, employee measures, satisfaction ratings, cost savings, turnovers, guest perspectives and supplier relationships (Nyheim, McFadden & Connolly 2005). A balanced scorecard also provides strategic objectives to those in charge of the implementation and fulfillment of these duties. The scorecard provides a benchmark to measure and compare results against other results previously taken (Nyheim, McFadden & Connolly 2005). Other information represented on a balanced scorecard includes; environmental issues such as energy consumption and recycling programs, external factors including research and development, training and innovation (Nyheim, McFadden & Connolly 2005). All of the information provides mangers within the hospitality industry with success and competitive advantage. Departments that collect the data include; management, front office, back office, housekeeping, and sales. Management uses the data collected to monitor financial considerations such as revenues, net profit, actual versus budget