As a result, the company can make some changes to modify the scorecards. Although the company has some unexpected performances, it develops well in year The balanced scorecard has several attributes, such as tracking financial performance, tracking nonfinancial measures and communicating franchisees and owners objectives of growth.
However, the balanced scorecard has several problems and makes it hard for the company to reach its goals. The second problem is that the scorecard contains uncontrollable factors for managers. The first problem is that the balanced scorecard is hard for hotel level managers to understand.
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. However, the fixed elements and the uncontrollable expenses stay the same as original budget.
The top management of the Maverick Lodging set the original budget at first. Firstly, the company should simplify the scorecards procedure to help managers understand and increase acceptance.
According to Exhibit 3, the company firstly determines whether the performance is low, base or high by viewing house profit percentage.
In addition, the implementation process lacks communication between different levels of managements. However, hotel level managers have no right to determine the budget and this measurement is unfair. As a result, the company should consider simplifying the guest-satisfaction survey in scorecards to attract more attendance for the survey.
For example, budget comparison should be deleted because bottom level managers have no right to determine the original budgets.
After the calculations, the company can acquire controllable profits and house profits for both actual and flexible budgets. For the variable costs and the variable revenues, the company uses drivers and actual quantity to determine the value of flexible budget.
After one fiscal year of operating, the management gets the actual data of revenue and expense. As a result, the financial performance is generally good for the company. Since the bottom level managers cannot determine the components of the scorecards, the acceptance and implementation process would be difficult.
The third problem is that the scorecard is only implemented at the hotel-general-management level.
Secondly, the company should eliminate the uncontrollable factors in scorecards. The scorecards process would be fairer if all level managements apply the same measurements. The management would then make reforecast target, which is the flexible budget, to measure the performance of each hotel. By implementing the balanced scorecard, the company is trying to increase financial yield, control profit and flexible budget, improve internal business control, stimulate performance of hotel management, facilitate communication between principals and agencies and start learning and growing processes.
Since it is hard to understand, the scorecard would have problems on acceptance and the implementation process would be difficult.
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.
As a result, the scorecard would not reach the maximum effectiveness and efficiency. As a result, many managers would be reluctant to accept the scorecard. In addition, since the customer survey is complicated and time-consuming for customer to fill in, many customers would not complete the survey.
Although Baum tried to make it easier to understand, the scorecard still has many elements and some of the financial figures and complicated measurements are hard for entry-level managers to understand. Based on the results, top management calculates the percentages of actual controllable profit divided by reforecast controllable profit.
For financial performance, according to Exhibit 7, the Maverick Courtyard has 3. As stated in the case, the hotel-general-management is the last level of the company management and they have no right to discuss the components of the scorecard.Professor Wu FROM: Minghao Tang, AE5 DATE: March 30, 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. Maverick Lodging was one of the earliest hotel-management companies to implement a balanced scorecard management system.
Keywords: balance sheet, accounting, control systems, management accounting Suggested Citation: Suggested Citation. Balanced scorecard system in the example of Maverick Lodging case, Cost accounting course. 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. 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. Memorandum % Robert, Sadlin FR Brian Wenbai Li CC Cindy, Baum DA% 11/18/ SUBJC% Comments on current Balanced Scorecard5/5(1).Download