Essay on Maverick Lodging : A Good Year For The Company
In 1999, Maverick lodging started reviewing the result of the balanced scorecard (BSC) system they developed in 1998. Maverick implemented BSC to address some issues in the performance management system and to align the strategy, structure, and incentives.
Based on exhibit 7, we can see Maverick growth rate has increased by 3. 77% for the Maverick Courtyard, 2. 2% for Maverick Fairfield Inn, and 3. 5% for Maverick Residence Inn. Besides that, Maverick had achieved good result in flow-through flexible budget in two hotels - Maverick Courtyard and Maverick Residence Inn, while the Maverick Fairfield Inn had unexpected result. On the guest-satisfaction score side, the scores of two hotels (Courtyard & Residence Inn) were high compared to the brand average score, while Fairfield hotel’s score was lower than the brand hotel for 1999. The change percentage of the three hotels were decreased in 1999 compared to 1998. For comprehensive audit performance, we can see that Maverick achieved high scores 95.3; And for the employees’ turnover, Maverick had decreased the turnover by 12.3%. As a result, the financial performance of 1999 was good compared to previous years and to the brand average results.
2. What is their value-added proposition? What advantage are they trying to achieve? Does the balanced scorecard system and its related bonus plan help or hinder accomplishing its strategic objective?