The balance scorecard as a strategy implementation tool at Sarova hotels limited

Abstract

The environment within which the hospitality industry operates in Kenya has become very competitive as attributed to the many mushrooming hotels from five star hotels to three star hotels. The growth and competition is also surrounded by many challenges such as the rise in insecurity, focus on social media, digital rankings and referrals, a high level of standards in service among others. To remain competitive, any player in this industry must prove to be different and unique thus the need to not only develop strategies and strategic goals but also to have effective tools for implementing these strategies. This study sought to look at the balance scorecard as a tool for strategy implementation at Sarova hotels limited and the challenges faced in the use of this strategy implementation tool. The findings of the study would also benefit the other stake holders in the hospitality industry and the government since hospitality is a key revenue earner for the government. The research was done using a case study design and the object of the case study was Sarova Hotels Limited. A case study was chosen because it offered the opportunity to do an in-depth analysis of Sarova Hotels Limited as regards the use of the balance scorecard. An interview guide was used and five managers from senior, middle and lower level management were interviewed. The data was analyzed using content analysis. The findings were summarized and presented in this research project. Findings from the research brought out that the balance scorecard has been instrumental in helping Sarova hotels attain their strategic goals such as revenue growth, brand awareness, innovation in product and service delivery and a high guest satisfaction index. However Sarova hotels has in the past to date faced various challenges in the use of the balance scorecard in strategy implementation such as the balance scorecard as a tool for Sarova strategy communication from the directors to the junior employees, preparation of the balance scorecard, review and evaluation of the balance scorecard, performance rewards attached to the balance scorecard among others. Some of the recommendations were better communication of the scorecard from the senior management to the junior management, need to make specific, measurable, achievable, realistic and timely strategic goals in the scorecard, relook into the balance scorecard evaluation process, exploration of other forms of reward in addition the bonus as a way of motivating outstanding performance among others. Some of the recommendations for further research proposed were that studies should be done to survey the various challenges that are encountered by other hospitality institutions that have embraced the balance scorecard as a tool for strategy implementation and effective ways of evaluating the balance scorecard as a tool for strategy implementation. In the course of conducting the research, the main limitation encountered was the fact that the managers interviewed have busy schedules thus securing an appointment for the interview took time delaying the acquisition of required information for this research.