Although Baum tried to make it easier to understand, the scorecard still has many elements and some of the financial figures and Maverick lodging balanced scorecard measurements are hard for entry-level managers to understand.
As a result, many managers would be reluctant to accept the scorecard. However, the balanced scorecard has several problems and makes it hard for the company to reach its goals.
The third alternative the company can take to change the scorecards is to let all level managers discuss the properties of the scorecards and implement the scorecards measurements in all level managers.
The second problem is that the scorecard contains uncontrollable factors for managers. For the variable costs and the variable revenues, the company uses drivers and actual quantity to determine the value of flexible budget.
For financial performance, according to Exhibit 7, the Maverick Courtyard has 3. In addition, since the customer survey is complicated and time-consuming for customer to fill in, many customers would not complete the survey.
Since the bottom level managers cannot determine the components of the scorecards, the acceptance and implementation process would be difficult. The first problem is that the balanced scorecard is hard for hotel level managers to understand. Secondly, the company should eliminate the uncontrollable factors in scorecards.
The scorecards process would be fairer if all level managements apply the same measurements. As a result, the company can make some changes to modify the scorecards.
After one fiscal year of operating, the management gets the actual data of revenue and expense. The balanced scorecard has several attributes, such as tracking financial performance, tracking nonfinancial measures and communicating franchisees and owners objectives of growth.
However, hotel level managers have no right to determine the budget and this measurement is unfair. Since it is hard to understand, the scorecard would have problems on acceptance and the implementation process would be difficult.
As a result, the financial performance is generally good for the company. Firstly, the company should simplify the scorecards procedure to help managers understand and increase acceptance.
Another way to solve this problem is to let bottom level managers plan for their own budgets so that they have the power to determine the original budget. After determine level of performance, the company uses the flexible budget controllable profit percentages to determine the color rankings of managers.
The management would then make reforecast target, which is the flexible budget, to measure the performance of each hotel. In addition, the implementation process lacks communication between different levels of managements.Maverick Lodging is concerned that there is a decrease in guest satisfaction, but the balanced scorecard still shows positive results.
Since, there was a % growth in the RevPAR and a % growth in brand average %(13). This is a Darden case mi-centre.com this case, Maverick Lodging, a hotel-management company, assesses the initial effectiveness of its recently implemented balanced scorecard system.
The case gives. Maverick Managed Properties: Guest satisfaction and staff retention. Developing a balanced scorecard to differentiate its services from competitors. Core Value Proposition What Happened in ?
Maverick Lodging Company Success Company Journey. Maverick Lodging is a hotel management company that manages the day-to-day operations of third party franchisees of the Marriott Corporation. The company has recently implemented a balanced scorecard in an effort to align company strategy, structure, performance measurements, and incentives.
You are to help prepare her for her meeting with her boss, Robert Sandlin, President and CEO of Maverick Lodging to discuss the results for and to assess the balanced scorecard framework as both a measurement system and management system. Presentation Format Your presentation will cover the following areas: 1.
SUBJECT: MAVERICK LODGING CASE Year Analysis Inthe Maverick Lodging company implements balanced scorecard to establish a measurement system and control the hotel level management.
The balanced scorecard has several attributes, such as tracking financial performance, tracking nonfinancial measures and .Download