Maverick Lodging
An Analysis of Maverick Lodging
Abstract
Maverick Lodging is a hotel management company that manages the day-to-day operations of third party franchisees of the Marriott Corporation. The company has recently implemented a balanced scorecard in an effort to align company strategy, structure, performance measurements, and incentives. The organization strategy involves growth in revenue and customer base with the use of differentiation. Issues with the current scorecard and its measures have been identified. Alternative solutions have been researched. A recommended course of action is presented that will allow Maverick Lodging to achieve its strategic goals and objectives.
Theme
Many hotel companies, such as the Marriott Corporation, are in the business of selling hotel franchises. Owners that purchase franchise rights enter into a contract with the Marriott Corporation and have actual ownership of a hotel. Franchisees can either manage the day-to-day operations of the hotel on their own or outsource these responsibilities to hotel management companies for a fee. Maverick Lodging is a hotel management company that operates Marriott franchise hotels on behalf of third party owners. The company receives a base management fee and an incentive management fee based on a percentage of the hotel’s net profit.
Cindy Baum, Vice President of Asset Management, was hired by Maverick Lodging to construct and implement a balanced scorecard as both a management system and measurement system. A balanced scorecard is defined as an integrated set of performance measures that are derived from and support a company’s overall strategy throughout the organization (Garrison, Noreen, & Brewer, 2008). The primary objectives of the balanced scorecard created by Baum were to align the company’s strategy, structure, measurements, and incentives. In1999, the balanced scorecard was implemented and represented the first full year of results. The balanced scorecard was
Abstract
Maverick Lodging is a hotel management company that manages the day-to-day operations of third party franchisees of the Marriott Corporation. The company has recently implemented a balanced scorecard in an effort to align company strategy, structure, performance measurements, and incentives. The organization strategy involves growth in revenue and customer base with the use of differentiation. Issues with the current scorecard and its measures have been identified. Alternative solutions have been researched. A recommended course of action is presented that will allow Maverick Lodging to achieve its strategic goals and objectives.
Theme
Many hotel companies, such as the Marriott Corporation, are in the business of selling hotel franchises. Owners that purchase franchise rights enter into a contract with the Marriott Corporation and have actual ownership of a hotel. Franchisees can either manage the day-to-day operations of the hotel on their own or outsource these responsibilities to hotel management companies for a fee. Maverick Lodging is a hotel management company that operates Marriott franchise hotels on behalf of third party owners. The company receives a base management fee and an incentive management fee based on a percentage of the hotel’s net profit.
Cindy Baum, Vice President of Asset Management, was hired by Maverick Lodging to construct and implement a balanced scorecard as both a management system and measurement system. A balanced scorecard is defined as an integrated set of performance measures that are derived from and support a company’s overall strategy throughout the organization (Garrison, Noreen, & Brewer, 2008). The primary objectives of the balanced scorecard created by Baum were to align the company’s strategy, structure, measurements, and incentives. In1999, the balanced scorecard was implemented and represented the first full year of results. The balanced scorecard was
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