Holtin Hotel Group (HHG) operates five-star boutique hotels across the capital cities of Australia. HHGs strategy is focused on meeting the needs of premium business travellers by providing high quality accommodation, express check in/out services, and world class business amenities. A key priority of HHG is to have the same high-level of service and amenities at each hotel.

The CFO of HHG, Cathy Chu, recently raised the idea of introducing a balanced scorecard, explaining that, it will focus the attention of employees on our key priorities as well as provide the opportunity to reinforce our strategy throughout the company. At this stage it has only been discussed at board level, but most of the board are in favour of its implementation.

Cathys first draft balanced scorecard developed for use at the individual hotel level is provided below.

REQUIRED:

a) Provide a critique of the proposed Balanced Scorecard. Include in your answer at least four aspects of the scorecard that you think could be improved.

b) Recommend TWO additional measures to include in the scorecard for the Internal Business perspective. Justify each choice by explaining how it supports HHGs strategy.

(4 marks)

c) Do you agree with Cathys statement that introducing a Balanced Scorecard will focus the attention of employees on our key priorities as well as provide the opportunity to reinforce our strategy throughout the company Explain your answer.

Perspective Objective Measures Financial Increase profitability Revenue per available room Customer Improve customer relations Customer satisfaction score Internal business process Improve operational effectiveness Cost per available room Learning & Growth Meet all quality and star-rating benchmarks Training time per employee Perspective Objective Measures Financial Increase profitability Revenue per available room Customer Improve customer relations Customer satisfaction score Internal business process Improve operational effectiveness Cost per available room Learning & Growth Meet all quality and star-rating benchmarks Training time per employee