Importance of Using Balance Scorecard in the Food and Service Sector

This study highlights the importance of using balance scorecard in the food and service sector to measure and evaluate performance. It discusses the benefits of using balance scorecard and provides examples of key performance indicators (KPIs) used in the industry. The study also emphasizes the role of balance scorecard in managing remote employees and aligning strategies with organizational goals.

Business Information Systems
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Table of Contents
INTRODUCTION 3
MAIN BODY 3
Business informations solutions of food and service sector 3
Ways to measure and evaluate performance against value 4
CONCLUSION 5
REFERENCES 6
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INTRODUCTION
Business information system refers interrelated processes of an organization which are
being used by companies in order to generate appropriate and desired informations (Gronwald,
2016). This study is going to show importance of using balance score card by restaurants and all
companies of food sector as it allows them to measure their overall performance. Further, it will
also show different KPI’s which are being used to measure performance related to finance and
others.
MAIN BODY
Business informations solutions of food and service sector
It is important for all companies of each sector to have all informations related to their business
as what is going on in their business as employees are working in an effective manner,
companies strategies are working or not, customers needs as what they are seeking for etc. All
these informations make them able to know their actual position in the market as where they
stand and appropriate strategies which can help them out in accomplishing their goals and where
they lack behind. So, in the context of restaurants and food sectors it can be said that they mainly
make an effective use of balance score card (Marimon and Malbasic, 2019). It has several types
of key performance indicators which allow them to evaluate and measure performance of each
department. There are several benefits of using balance scorecard such as:
 It allows companies to make better strategic planning in order to accomplish goals and
having all business related informations.
 It also allows them to align their strategies with projects.
 Improving performance reporting is other main benefits of using KPIs and balance
scorecard.
 They can align better business and processes of company
 Knowing the actual position of the company in the market and taking competitive
advantages are some other important benefits of it (Rao and Sreelakshmi, 2017).
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Ways to measure and evaluate performance against value
Before discussing about measuring performance with the help of balance score card it is
important to understand what is balance scorecard. It can be said that it is one of the effective
and important strategic management and planning system which different sectors of
organizations use for communicating and measuring performance in order to accomplish
whatever they want to achieve. With the help of this model or strategy companies of food sector
align their day to day operations or activities in order to make sure that everyone are on the right
track and doing their activities. In the context of food sector or in the restaurant context it can be
said that it is important for this sector and restaurants to evaluate performance because all
activities and strategies of this sector are customers centric. The main aims of this sector are to
please customers and it can only be possible when they evaluate performance of employees and
all activities which they perform. Uses of balance score card in food sector or Hilton hotel such
as:
Key performance Indicators (management): It is one of the main and important examples of
balance scorecard which is being used by restaurants and hotels to measure room occupancy rate,
labour cost, profit per available room in order to know the actual and net profit which they earn
on each and overall al rooms after deducting expenses of labour etc. So, in this context of
management indicators it can be said that cost per occupied room and profit per room is a main
example of KPI (SOUZA, 2017).
Sustainability KPI: Sustainability is one of the main important factor which needs to be focused
by companies and especially to restaurants and hotels in order to attract customers to the great
extent. Sustainability is the main factor which is being considered by customers while making
decision about buying products from hotels. There are several tools are available which can
allow restaurants and are being used by Hilton hotel and other restaurants in order to measure
effectiveness of performance and knowing whether its all products are qualitative and employees
are performing activities in an ethical manner or not. All tools related to this allow restaurants to
measure and identify total consumption of energy by them, CO2 footprint and knowing water
consumption.
Financial KPI: Rather, identifying sustainability, performance of employees it is also important
to have knowledge about finance and measuring total revenue which they have generated. It
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allows them to know whether customers prefer their services or not. By comparing revenue of
current year with previous year. Some tools which allow hotels and restaurants to measure and
identifying average room rate, room rate per guest, net revenue which they have generated on per
available room (Meng and Fenn, 2019).
In addition, it can be said that Hilton hotel have several units and it operates in several places so,
it can be said that by using balance score card and all key performance indicators in an effective
manner it can manage and measure performance of employees who are working remotely. It can
keep its eye on them and see whether they are working in a right and ethical manner or not. It
also allows them to reduce errors because with the help of balance scorecard model, employees
of different departments can understand clear linkage between their own strategies and strategies
of the organization as a whole. It allows them to work with concentration by providing clear line
of sight into knowing that how their roles are translatable across the company.
So, from the above discussed all approaches, models and examples of key performance
indicators and balance scorecard related to all factors allow restaurants to have a view of their
overall performance as well as knowing customers’ perspectives as well (SULEIMAN, 2016).
CONCLUSION
From the above study it has been concluded that balance score card strategy or model
played a vital role as it allows companies to measure performance and knowing whether they are
on the right track or not. It also allows them to make changes in their strategies in order to
accomplish goals by evaluating strategies.
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REFERENCES
Books and journal
Gronwald, K.D., 2016. Integrated Business Information Systems (Vol. 20). Springer,
http://www. springer. com/us/book/9783662532904. Accessed.
Marimon, F. and Malbasic, I., 2019. A Simplified Balanced ‘Balanced Scorecard’. European
Accounting and Management Review. 5(2). pp.38-60.
Meng, K. and Fenn, P., 2019. PERFORMANCE MEASUREMENT FOR CONSTRUCTION
PROJECTS. Project Management Development–Practice and Perspectives, p.89.
Rao, D. and Sreelakshmi, G., 2017. Balance Scorecard-Strategy Mapping Tool: A Case
Study. Asian Journal of Applied Science and Technology (AJAST), 1(1), pp.117-121.
SOUZA, J.A.E., 2017. APPLICATION OF FACTOR ANALYSIS TO IDENTIFY THE
ECONOMIC AND FINANCIAL KEY PERFORMANCE INDICATORS IN BANKING
INSTITUTIONS.
SULEIMAN, O., 2016. Assessment of information and communication technology on the
performance of selected small and medium scale enterprises in Ilorin Metropolis,
Nigeria. International Journal of Capacity Building in Education and Management. 3(1).
pp.1-12.
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