MOD003460 - Balanced Scorecard Implementation at Hilton Hotel

This report provides an analysis of Hilton Hotel's business performance management through the implementation of a balanced scorecard (BSC). It explores the four perspectives of the BSC: financial, customer, internal process, and learning & growth, detailing objectives, measurements, targets, and initiatives for each. The report further examines key performance indicators (KPIs) and their measures related to shareholder value. Strengths and weaknesses of using a balanced scorecard are discussed, offering a comprehensive overview of its practical application within the Hilton Hotel context. Desklib provides access to this and other solved assignments to aid students in their studies.

Business Performance Management
Hilton Hotel

Business Performance Management 1
Contents
Introduction......................................................................................................................................2
Overview of company......................................................................................................................3
Balance scorecard and their perspectives........................................................................................3
Balanced Scorecard for Hilton Worldwide......................................................................................5
Financial perspective...................................................................................................................5
Customer perspective...................................................................................................................6
Internal process perspective.........................................................................................................7
Learning & growth perspective...................................................................................................8
Balanced scorecard with KPI and Measures...................................................................................9
Strength and weakness of balanced scorecard...............................................................................14
Strength......................................................................................................................................14
Weakness...................................................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

Business Performance Management 2
Introduction
A balanced scorecard is a strategy performance tool and a semi-standard structured report that is
used by the managers of the company to keep the record of the execution of activities by the staff
within their control and to monitor the consequences that might arise from these actions. BSC is
one of the effective tools with the help of which the company can easily align their day-to-day
work that is done by their staff every day (Smith, 2010). The report is prepared by the Trainee
management accountant for a large well-known hotel chain that is Hilton Hotel. The area
manager has decided to make use of balanced scorecard with the objective to for the plan and
control operations within the hotel.

Business Performance Management 3
Overview of company
Hilton Hotel is highly recognized hotel and resorts which came into existence in the year 1919.
The hotel was established by Conrad Hilton with the objective to provide accommodation
facilities in the country. Since its establishment, the company is successfully able to manage its
operations due to which currently the company is operating in 92 countries. These successful
operations were possible because company adopted the balanced scorecard tool for the strategic
management of the hotel (Hilton Hotel, 2018).
Vision and mission
Mission- The mission of the hotel is to spread the light and warmth of the hospitality in the
market.
Vision- The vision of Hilton hotel is to become the preeminent global hospitality company and
to become the first choice of their guest, team members and others (Hilton Hotel, 2018).
Balance scorecard and their perspectives
A balanced scorecard is the performance metric that used in strategic management to identify
and improve the different internal functions of a form and their resulting external outcome (Coe
and Letza, 2014). Hilton hotel makes use of this tool to measure working of internal functions
and can learn from the feedbacks. The BSC consists of four perspective that is financial,
customer, internal process and learning & growth.
Financial perspective

Business Performance Management 4
This perspective is used by the company to view the organizational financial performance and
the use of the financial resources in the company (Perkins, Grey and Remmers, 2014).
Customer perspective
This perspective reflects the organizational performance from the customer point of view
considering the services that are offered by the company.
Internal process perspective
This perspective reflects the performance of the firm considering the lenses of the quality and the
efficiency related to the products and services (Wu and Liao, 2014).
Learning & growth perspective
This perspective shows the performance of the firm on the basis of human capital, infrastructure,
culture and other capacities.
Each of the perspectives includes: -
 Objective
 Measurement
 Target
 Initiatives

Business Performance Management 5
(Source: Cooper, Ezzamel and Qu, 2017)
The image reflects the four perspectives of the balance score along with the four major points
that are Objectives, measure, targets, and initiatives.
Balanced Scorecard for Hilton Worldwide
Hilton Hotel makes use of the BSC tool so that they can effectively measure the performance of
the company. This tool has contributed to the growth and expansion of the business across the
world (Northcott and Taulapapa, 2012). Below given is the explanation of each perspective of
BSC from the hotel point of view.
Financial perspective
The overall aim of this perspective of BSC is to improve the value of the shareholders and
maximizing the revenue which can be achieved by the Hilton when they will be able to attain

Business Performance Management 6
their customers by providing them value-added services (Sainaghi, Phillips and Corti, 2013). The
hotel has brought changes in their cost structure many times so that they can offer the better
prices to their customers. Along with this, the company improved assets through Mergers and
Acquisitions across the world and mainly in the USA. This helps the hotel in performing the
activities in an effective and productive way. Below given are general objective, measurement,
target and initiative of Hilton Hotel for the financial perspective.
 Objective: - The primary objective of the Hilton hotel is to achieve the productivity and
revenue growth. The hotel will be able to achieve the objective by capacity utilization
and by forming the best brand image in the market. Another objective of the company is
to maximize the hotel assets and to find the new investors (Savkin, 2017).
 Measurement: - The hotel can easily measure the objective by analyzing the percentage
booking of Hilton in comparison to its competitors. Moreover, they can the new investors
who are willing to invest the amount in the company.
 Target: - Hilton hotel target is to add on new hotels in their chain and getting certifies as
the best hotel in the city.
 Initiative: - Effective monitoring in the hotel
Customer perspective
Hilton hotel is well-known in the market because of its premium services and high quality which
they offer to its customers. Though, for these services the company charges high amount from
their customers. The focus of Hilton hotel is always on the services that they are offering to their
customers (Kaplan, Norton and Rugelsjoen, 2010). They ensure that they are offering high-
quality services which cannot be compromised. Moreover, the hotel forms strategies so that they
can maintain and develop the long-lasting relationship with their customers which help them in

Business Performance Management 7
making a customer loyal towards the brand. Below given are general objective, measurement,
target and initiative of Hilton Hotel for the customer perspective.
 Objective: - The objective is to meet the customer satisfaction level by offering them
delight services, adding loyal customers and enhancing delight experience for customers.
 Measurement: - Hotel can measure the involvement of new loyal customers and positive
feedback from the customers regarding the services offered by them.
 Target: - Analysing the actual data of the old and new customers in their record.
 Initiative: - The hotel can monitor its monthly sales and services which helps them in
making the strategy towards the investment in the lifestyle segment (Grigoroudis,
Orfanoudaki and Zopounidis, 2012).
Internal process perspective
Hilton hotel wants to be strong like a Goliath from internally due to which the company adopted
advanced technology which helped them in updating their services and improving the customer
management process (Tayler, 2010). The hotel has achieved the position in providing the
excellent level of service which made them socially responsible brand name in the world. Below
given are general objective, measurement, target and initiative of Hilton Hotel for the internal
process perspective
 Objective: - Hotel objective is to bring the improvement in the human resource
management and in its team by retaining the skillful and experienced employees.
 Measurement: - The measurement of the number of employees according to their tenure,
performance appraisal and measure of the data of a number of employees who took the
advantage of the new policies taken by the employees.

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 Target: - The aim of the hotel is to reduce the difference in the number of new employees
in each of the office branches every year. In addition, the hotel should retain the top
quality and experienced staff in the office.
 Initiative: - Hilton can make strategy such as cross audits. Facility readiness, weekly
follow-up and many others to check either company are able to fulfill the objective or
not.
Learning & growth perspective
Hilton knows the value of learning and growth for an organization as this is the only way
through which the brand can reach the new heights to achieve the objective (Tseng, 2010). The
motivated team and trained employees can help the company in maintaining the quality that the
company is offering to their customers. Hilton has invested millions of dollars in training and
development program considering the importance of training for their employees. The employees
are the one who interacts with the customers on regular basis due to which they should know the
way to treat the clients. Below given are general objective, measurement, target and initiative of
Hilton Hotel for the learning & growth perspective.
 Objective: - Hilton believes in maintaining the sustainable human resource and the
relationship with the customers and investors.
 Measurement: - Hilton hotel can measure the objective through the eligibility for
certifications, performance evaluation and through license and technical standards.
 Target: - The target of the company is to provide the best training and development
programs and ensure their participation in it. Implementation of the advanced technology
that supports the training that the company is offering to their customers (Balances
Scorecard Institute, 2017).

ustomer Perspective Financial Perspective
Business Performance Management 9
 Initiative: - Strategy that the company is implementing is effective communication, set up
of new technology to provide the support to human capital. Along with this Hilton hotel
is focused towards the training and skills programs.
Balanced scorecard with KPI and Measures
The below diagram includes two KPI of the company with its measures considering the
perspective of the shareholders. Shareholders of the company play a vital role in the company
and they consider each and every perspective before making the investment in the business
(Sivaraman, Al Balushi and Rao, 2014).
Balanced scorecard including KPI with Measurement
Shareholder's Profit
Growth
Productivity Growh
Decreasing Cost and
Optimization,
comparing the current
productivity with past
productivity
Increase in revenue
Dividend received by
shareholders
Comparison to last
year revenue

Internal Process
Perspective
Learning and Growth
Perspective
Business Performance Management 10
Financial perspective Objective and measures
Objective - 1 Productivity growth
Add and Retain
High Value
Customers
Increase in number of
loyal customers
Achieve and Retain
Partner Relations
Increase in number of
partners
Technology
capabilities
Number of
technology
adopted
Sustainable
humans resource
Measuring tenurity
of employees
Training and
development
programs
Performance
Evaluation
Awareness in
Society for
welfare
CRM

Business Performance Management 11
Productivity shows the various measures of the efficiency of the production. The productivity
growth reflects that more value is added in the production which means the company can
generate more income which will be distributed among the shareholders. Hilton Hotel is leading
company so the shareholders of the company will invest only when they find the productivity
growth.
Measures
 Decrease cost and optimization- Hilton hotel should try to reduce the cost of the
production and should make the maximum use of the resources through which they can
measure the productivity.
 Comparison- The hotel can measure it by comparing the previous year productivity with
the current year which reflects the change.
Objective - 2 Increase in Revenue
Increase in revenue is the objective which is kept by every stakeholder similarly Hilton hotel
stakeholders want to see a rise in the revenue of the company. The hotel needs to develop new
sources from which they can generate revenue.
Measure
 This objective can be measured with the help of the dividend received by the
shareholders of the company. Over here, high dividend reflects high revenue of Hotel.
 Hilton hotel can compare the revenue of the company with the last year revenue which
helps them in analyzing the favorable and adverse impact on revenue.
Customer perspective Objective and measures