Paul A. Phillips

Performance Measurement Systems in Tourism, Hospitality, and Leisure Small Medium-Sized Enterprises: A Balanced Scorecard Perspective

In response to the United Kingdom’s government’s desire to improve the performance of tourism, hospitality, and leisure small medium-sized enterprises, this article analyzes the performance measurement processes within 10 best practice organizations. Related to contemporary approaches to improving business performance in the management literature, performance measurement approaches are analyzed using the balanced scorecard framework. An exploratory case study approach using the balanced scorecard as the theoretical framework was taken to explore and elicit critical success factors in performance measurement. Results revealed that four key concepts drove measurement and performance evaluation systems across the sample. These were the exercising of budgetary control with a view to increasing total revenue, the undertaking of customer relationship management as a means of improving quality of service and customer retention, the necessity for strategic management in managing internal business processes, and collaboration (both inter and intra) to drive innovation and learning. The article also proposes a balanced scorecard template for hotels.

Hotel performance and competitive advantage: a contingency approach

Performance measurement is an important managerial activity that is of key concern to the hotel general manager. Unfortunately, there has been a paucity of hospitality related research to assess the appropriateness of existing hotel performance measurement systems in use. This conceptual paper shows how a performance measurement system has the potential to deliver competitive advantage. This paper speculates that competitive advantage can be achieved if inputs, processes, outputs, markets, environmental characteristics are congruent with business objectives.

Performance measurement systems and hotels: a new conceptual framework

Abstract Given the preceived inadequacies in traditional accounting-based performance measures, the objective of this paper is to foster innovation in performance measurement in the hotel sector. This is achieved by (i) a review of the performance literature, (ii) the amalgamation of relevant finance, marketing strategy and hospitality literatures, and (iii) proposing a hotel performance measurement framework that goes beyond technique to process and structure.

The Strategic Planning Index: A Tool for Measuring Strategic Planning Effectiveness

Little empirical research exists on the measurement of strategic planning effectiveness. The authors propose a new approach: the strategic planning index (SPI). The SPI is tested on the hotel sector. Findings suggest that the SPI can be particularly useful for corporate and hotel unit managers in evaluating their strategic planning processes.

Performance implications of capital structure: evidence from quoted UK organisations with hotel interests

The objective of this article is to foster research on the relationship between capital structure and corporate performance with hotel companies. Using data collected from 43 UK quoted organisations which possess an interest in owning and managing hotels, Modigliani and Millers (1958) capital structure irrelevancy theorem is tested. Empirical analysis revealed no significant relationship between the level of debt found in the capital structure and financial performance. These results are consistent with Modigliani and Millers theorem. Results also highlight that low levels of returns on equity are a feature of the sample. This latter point appears to an important issue for hotel investment, as hotel companies are continually looking to raise external finance to fund expansion. The findings of the study suggest that Chief Financial Officers of the sample organisations need to identify novel ways of expanding the business without increasing the levels of debt. The article concludes by providing examples of how some Chief Financial Officers are responding to the challenges of capital structure.

Measuring strategic planning effectiveness in hotels

Strategic planning is currently back in vogue as a key managerial process. However, despite the voluminous amount of strategic planning literature there has been a paucity of research that has measured planning effectiveness. This paper proposes a diagnostic tool developed for hotels called the strategic planning index (SPI) that measures planning effectiveness. Six factors were found to be critical to effective planning: planning implementation; future performance; past performance; functional coverage; reliance on analytical techniques; and staff planning assistance.

The impact of strategic planning on the competitiveness, performance and effectiveness of bank branches: a neural network analysis

The banking distribution system is going through a rapid process of change. This research study focuses on the analysis of the perceptions, of 58 bank branch managers selected from 14 branches belonging to two major Scottish banks, of the impact of a variety of planning practices on competitiveness, overall performance, strategic planning effectiveness and marketing effectiveness. The gathered data were then subjected to a number of learning iterations as part of a specifically designed neural network topology. Major findings derived from the study revealed that: bank branch effectiveness is affected by effective management practices; the overall performance of the branch depends highly on both long term thinking and innovation; long‐term thinking seems to have also a high degree of impact on strategic planning effectiveness; and finally, the degree of precision attached to planning, programming, budgeting and control seems to trigger high levels of marketing effectiveness.

The Kohonen self-organizing map: an application to the study of strategic groups in the UK hotel industry

This paper examines a neural network method known as the self-organizing map (SOM). The motivation behind the SOM is to transform the data to a two-dimensional grid of nodes while preserving its ’topological’ structure. In neural network terminology this involves unsupervised learning. The nearest related statistical technique is cluster analysis. We employ the SOM in the task of identifying strategic groups of companies, using data which relate to the generic strategies suggested by Porter. Following identification of different groups of hotels with certain strategic emphases, the study investigates correlations between strategies followed and hotel performance. We compare and contrast the ’feature map’ generated by the SOM with the results of a standard cluster analysis using the k-means method. The data also cover performance indicators and the results indicate that performance varies between strategic groups.

The interactive effects of strategic marketing, planning and performance: a neural network analysis

Marketing managers practice in a consistently changing environment necessitating the need for the formalisation, implementation and evaluation of strategic marketing plans. Nevertheless, despite the advocated benefits of strategic marketing planning, a paucity of empirical evidence makes this notion speculative. This study examines the relationships between strategic marketing planning and performance. The interactive effects of strategic marketing planning and performance are stressed and examined. Findings suggest that the issue is not whether strategic marketing planning affects performance, but rather what marketing capabilities are required to enhance performance. This study extends the knowledge of strategic marketing planning and performance by focusing on the service industry, and provides controls for market-level influences by being restricted to the hotel sector.

Quality performance in a global supply chain: finding out the weak link

Much has been written on the intensive interconnection between supply chain management (SCM) and quality management (QM) with a particular focus on the systems-based view as the common thread between these two operation management topics. Absent in this debate has been any examination of the dynamics of SCM and QM practices and the resultant implications for the end customer in terms of product/service quality at a global level. In consequence, the nature and extent of their interconnection or interlinking and the resultant implications for the product/service quality has remained tangential. Using a qualitative study of two very large branded athletic and casual sports apparel and footwear manufacturers based in Asia with world-wide suppliers and distribution centres, this study aims to broaden the debate by arguing that partnering with suppliers of high QM capabilities in chains of relationships does not necessarily result in downstream benefits to both the manufacturer and end customers. We argue that both SCM and QM practices must advance from traditional firm-driven, fire fighting and product-focused mindsets to a more collaborative mode of inter-firm relations in that a much greater level of co-operation among both upstream and downstream chains is regarded as a key to competitive advantage.