Developing a business strategy is admirable but executing the strategy is the key:
Based on this, I thought I would try to simplify the essence of strategy for today’s hospitality leaders. One simple strategy is to differentiate our operations via intangible assets.
As an example, customer relationship management or new and innovative products and services can provide differentiation from our competitors.
One strategy that has been employed frequently is the “balanced scorecard.” Simply put, this system allows a company to measure budgets and financial measurement devices as well as non-tangible assets such as customer relationships and brand awareness.
According to the book The Strategy Focused Organization by Robert S. Kaplan and David P. Norton, “an exclusive reliance on financial measures in a management system causes businesses to do the wrong things.”
Kaplan and Norton believe there are four basic strategic themes:
Build the franchise – in the case of hoteliers, this applies to the individual franchisee as well as the brand managers – optimize that brand name!
Increase customer value – today’s savvy customers may pay to stay in a luxury hotel, but they will require value for that dollar.
via Competitive Strategy for the Hospitality Industry. – Thursday, 12th February 2015 at 4Hoteliers.