Maverick Lodging Case Analysis

In 1999, the 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 communicating franchisees and owners objectives of growth. For financial performance, according to Exhibit 7, the Maverick Courtyard has 3.77% growth rate, Maverick Fairfield Inn has 2.22% growth rate and Maverick Residence Inn has 3.5% growth rate. For flow-through flexible budget, both Maverick

When Lambert resisted the idea of a full base salary structure, AAA suggested 5% of the salary bonus be based on commission. Lambert countered offered with 10% -- which was dismissed. Past experience indicates property performance tied to salary compensation is successful, so Lambert proposed 5% of the salary bonus be based on commission with the pay structure be revisited after one year to slowly change the salary structure toward the bulk of salary be commissioned, this was agreed on by both parties. The second biggest issue was team management and cross-training. Lambert proposed the local management team be vetted by AAA with training provided by Lambert – this would require annual mandatory training of AAA upper management team to be in attendance. This proposal was meet with irritation by AAA, offended that their management training was considered less than ideal. Additionally, AAA informed Lambert that local law requires AAA to provide training. Lambert elaborated on the management training with expectation of training to be given by AAA to their own middle management team, allowing for free movement of training. AAA would manage their local training with Lambert assistance when needed.

Balanced scorecard is a methodological tool that businesses use to get a measure by which someone can determine whether the set goals have been met or exceeded. It adds non-financial metrics to traditional financial metrics to give a well-rounded view of the performance in an organization. Balanced scorecards also help organizations to predict their success in meeting their overall strategic goals.

“The balanced scorecard should translate a business unit’s mission and strategy into tangible objectives and measures. The measures represent a balance between external measures for shareholders and customers and internal measures of critical business processes, innovation and learning and growth. The measures are balance between outcome measures, the results of past efforts, and the measures that drive future performance. And the scorecard is balanced between objective, easily quantified outcome measures and subjective, somewhat judgmental, performance…”

* The Balanced Scorecard performance and evaluation was going to be subjective because unlike quality levels, it would not be quantified except by surveys or by management opinion. Each manager at the nation, state and city levels

Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively

To decide how much of the marketing and advertising expenditures will be utilized to expand occupancy of family and leisure vacationers

Since its foundation in 1927 Marriott Corporation grew into one of the leading lodging and food services in the US. With three major business lines: lodging, contract services and related business, Marriott has the intention to remain a premier growth company. To achieve this goal the corporation’s strategy is to develop aggressively appropriate opportunities within their business lines. Marriott would like to be the preferred employer, the preferred provider and the most profitable company in each of the operating areas. The financial strategy includes four key elements:

Mr Brennan was quoted in the Financial Times saying, “The strategy is to create a branded hotels business. Many of these hotels have great locations but have not had much put into them. We have £100m to invest and renovate these hotels.”

The Balanced Scorecard Institute reports that in the 1950’s General Electric was the first to use the Balanced Scorecard approach, but it was not until the 1990’s when Dr. Robert Kaplan a Harvard Business School professor and Dr. David Norton officially titled it the Balanced Scorecard. Once used as only a measurement tool for organizations, it is now a complete strategic planning and management system (Balanced Scorecard Institute, n.d.). Originally, businesses looked at the financial reports to distinguish whether it was a quality company or not. Kaplan and Norton however believed the financial reports only showed past history and an organization must also track how it is performing currently and look at ways to constantly improve future performance. Kaplan and Norton established there are four business segments or perspectives to measure and make improvements on. The four segments

The main objective of the company is not only to attract but also to retain staff who are interested to work in the hotel business for the five-star level of high service, taking into account the wishes of clients, and which offers an innovative, dynamic environment and reflects the culture of the local country. To achieve this, Hyatt strives to be a company listening to well-informed and concerned people. Hyatt provides plenty of opportunities at all levels for their employees, which are accompanied by numerous development

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. The organization strategy involves growth in revenue and customer base with the use of differentiation. Issues with the current scorecard and its measures have been identified. Alternative solutions have been researched. A recommended course of action is presented that will allow Maverick Lodging to achieve its strategic goals and objectives.

3. Lyric Opera had a new question ahead of them. They had to figure out what they wanted to become. BLO’s existing strategy was not valid anymore as their operating expenses rose and revenues from ticket sales were limited. BLO decided to adapt the Balance Scorecard in order to set new strategic objectives and measure their performance against those

The balanced score card information is very helpful for managers to be able to know when to hire for different departments. Because of the hotels off seasons in spring and fall, the hotel may need less employees for one department and still need the same amount in another department so by looking at the balanced score card it is easier to determine. It can be used by managers for staffing, such as extra weekend staff during the busy season, or a holiday weekend and this information is all found on the balanced score card. There are some other examples of information that can be found such

To be the first choice of hotel guests, team members, and owners alike, building on the heritage and history by: