: Strategic & operational Performance Indicators - Case Study Example

Finance and Accounting Finance and Accounting Guidelines for the Frantour Case - BSC Please answer to the following questions in your analysis What are some key features and KSF (key success factors) of the hotel industry? Generally, the key success factors in the hotel industry, according to the Frantour’s hotels, range from the various activities in the industry. First, the industry enjoys some benefits of the tour operators and the travel agencies, mostly when it is the time for low season.

Another success factor for the hotel industry is that they have the obligation of lodging a particular proportion of the leisure clients at a rate that is preferential, though it penalizes them when it is the time for high season. However, the hotel industry always develops new properties in other countries, which encourages it to nurture its client base, a factor that helps them become more independent, considering their occupancy policy (Agarwal, 2013).. What is the current organization? How many organizational layers are involved?

The current organization of the Frantour hotel is made up of three layers. The topmost layer comprises of the hotel manager, who is Mr. Tisserand. He is assisted by two assistant managers. The second layer is composed of the managers who run the reception department, catering department, floors department, administration/audit department, and the maintenance department. All these departments are run by the department heads. Each department has another layer of organization. The reception department has the assistant head of department, four team leaders, four daytime receptionists, four rotating receptionists, and one reservation specialist, all of whom report to the head reception.

The catering department also has its sub-departments which make up the third layer. They include the deputy head, the assistant catering manager, the barman, the breakfast manager, three breakfast waiters, two part-time breakfast waiters, two dishwashers, and a catering manager, all of whom report to the department head (Person, 2013). The floors department is headed by the housekeeper assisted by the sub-departments in the lower layer. They include the assistant, two floor housekeepers, the laundress, and three general helpers, one of whom works half of the time in maintenance.

All these sub-departments report to the housekeeper. The administration/audit department is run by the department head, assisted by the assistant department head and two secretaries as the sub-departments. The maintenance department is run by the department head assisted by the repairman as his sub-department. Imagine a BSC for the Corporate Hotel management (note that there is no Manager!) a) Suggest at least one objective (verb, with time line and measurable) for each perspective; b) Suggest one or two initiatives (or action plans) (non exhaustive) associated to the objective above for each perspective; c) Suggest a few related indicators: Lagging output indicators (relative to the objective, please provide a benchmark and frequency of reporting) and leading action indicators or effort indicators.

Specify which action you are monitoring, + a benchmark/target + frequency of reporting. Initiatives Output Effort or action Perspective Objectives indicators indicators (action plan) (lagging) (leading) Financial 1. Reduce the costs of operation 2. Maximizing profits 1. Keeping a correct inventory 2. Maintaining accurate financial audits 1.Establishing the budget of the hotel 2.Setting the pricing policy 1.No wastage of resources 2.Reduced costs Clients/ customers 1. Ensure comfort of the customers 2.

Set reasonable prices to promote more sales 1. Management of the personnel 2. Recording all receivables from the customer 1.Efficient services 2.Clear and accurate records 1.Improved customer relations 2.Consistency of the sales and recurrent customers Internal Processes 1.Facilitate better communication 2.Keeping up with the technology 1. Preparing the account statements prior to sending them to group headquarters 2.Controlling the costs of availing services to the customers 1.Inexperienced employees 2.

Lack of the appropriate technology 1.Increasing efficiency 2.Increasing the profitability of the hotel Learning 1.Maintaining the pace of operations in the hotel 2.Ensure safety and security of the customers 1.Keep an eye on the current situation of the hotel 2.Analyze the occupancy forecasts 1.Improve the methods of reporting 2.Update the hotel databases regularly 1.Better public relations 2.Attraction of more customers 2 Imagine a BSC for the Hotel Manager (Mr Tisserand) a) Suggest at least one objective (verb, with time line and measurable) for each perspective; b) Suggest one or two initiatives (or action plans) (non exhaustive) associated to the objective above for each perspective; c) Suggest a few related indicators: Lagging output indicators (relative to the objective, please provide a benchmark and frequency of reporting) and leading action indicators or effort indicators.

Specify which action you are monitoring, + a benchmark/target + frequency of reporting. Initiatives Output Effort or action Perspective Objectives indicators indicators (action plan) (lagging) (leading) Financial 1. growth of the current productivity 2. increasing the revenue 1.Developing new channels of revenue 2.Making improvements to the current profitability 1.Service per room 2.Average room rate 1.Decreasing costs 2. Improving the current profitability Clients/ customers 1.

Achieve high profitability 2.Focus on the high-value customers 1.Formalize it on the strategy map 2.Align it with objects that add high-value customers and retain them 1.The strategy map 2. The guest rooms of the hotel. 1. Helping the manager to attain the goal of achieving high profitability 2. Reducing the cost of maintenance of the guest rooms. Internal Processes 1. Attaining and keeping the partner relations 2. Improvement of the image of the hotel on booking websites. 1.

Ensuring that all that the customers’ needs are availed 2. Booking website score 1. The needs of the partners and customers 2. The hotel website 1. Satisfy all the needs of the customers to attract and retain them 2. Ensure that the customers may book reservations from wherever they are. Learning 1.Understanding the requirements in the hotel industry 2. Learning how to maintain good work relations Seek the understanding of public relations 1. Always refer to the strategy map 2. Hold meetings with the employees and discuss about the issues relating to work.

Look for employees who will maintain the public relations of the hotel. 1. The strategy map 2. The employees 1. Keep all actions in the hotel focused on the main objectives 2. Ensure a willing working environment for the employees of the hotel. Imagine the objectives and action variables for the Reception manager a) Suggest some objectives (verb, with time line and measurable) The receptionists usually have their own objectives. They include: 1. Maintaining the occupancy rate of the hotel as well as the profit margins on the room sales 2.

Maintain their concentration and their daily follow-up 3. Keep clear records for room reservations and ensure that all customers are satisfied in their rooms (Price, Jorgensen, & Knight, 2013). b) Suggest some initiatives (or action variables - AV) (non exhaustive) associated to the different objectives; tick when the AV contributes to the achievement of the objective. Objectives Initiation (action variables Objective #1 Objective #2 Objective #3 AV#1 Booking rooms and following up the procedures of reservation AV#2 Make rooms available and taking care of the guests in the period they stay in AV#3 Greeting guests and providing them with the reliable information AV#4 Ensure that the customers are charged for the products and services they have used during their stay in the hotel AV#5 Running the telephone switchboard and collecting all the relevant data of the of the customers regarding the services sold to them 4 Imagine the objectives and action variables for the Catering manager a) Suggest some objectives (verb, with time line and measurable) The catering manager has the following objectives: Taking the responsibility of the particular proportion of the total sales of the hotel Ensuring that there are enough service personnel and kitchen staff Helping to eliminate problems of overstaffing To oversee the supervision of the seasonal employees (Lessambo, 2013). b) Suggest some initiatives (or action variables - AV) (non exhaustive) associated to the different objectives; tick when the AV contributes to the achievement of the objective.

Objectives Initiation (action variables Objective #1 Objective #2 Objective #3 AV#1 Supervise the evening meals for the groups lodged on the half-board basis AV#2 Serves the breakfast AV#3 He is in charge of the seminars and banquets and the bar AV#4 He is responsible for taking care of the drinks vending machine in the hotel’s lobby References: Agarwal, Y. (2013). Capital Structure Decisions: Evaluating Risk and Uncertainty. New York: Wiley. Lessambo, F. I. (2013). The international corporate governance system: Audit roles and board oversight.

Basingstoke, Hampshire : Palgrave Macmillan, 2014. Person, R. (2013). Balanced scorecards & operational dashboards with Microsoft Excel. Indianapolis, IN: Wiley. Price, C., Jorgensen, A., & Knight, D. (2013). Building Performance Dashboards and Balanced Scorecards with SQL Server Reporting Services. Hoboken: Wiley.