BSC and management indicators for the maintenance of tourist facilities
Keywords:
Management, Maintenance, Indicators, Evaluation, BSC, Quality.
1. Reflection on the Indicators:
Why do the Indicators exist? Well, the answer to this question can focus an immense discussion. Some of the possible answers may be: "… they help us to know how we are doing…", "… they allow decision-making…", "… they guarantee the monitoring of the Management functions…", etc. Now, in all of them we can find a common criterion. The indicators give us data about the businesses, these data, which can be converted, from their communication, into information, and in the end, allow us to make decisions.
If we look for the meaning of the word Indicator we have to: "What indicates or serves to indicate." (According to RAE Dictionary). From here, we come to the word Indicate, which implies (according to RAE) "Show or mean something with signs and signals." Well, here lies the core of the Indicators problem. They, using Clues and Signs, provides us with some data, data that is the responsibility of managers (leaders), converting information (from their organization) for subsequent Decision Making. But do the Indicators tell us what to do? Can you tell us how to do it? Of course not. The action of the indicators remains at the Information level. But decision making is an innate responsibility of managers or leaders, and it should be their responsibility to determine what indicators to use, how to use them, and above all what to do with them. Well, first we will see some characteristics of the Indicators.
Characteristics of the Indicators.
In order to define a good indicator of control in a Process, Function or Organization, it is important to develop a criterion for the selection of indicators that must be continuously controlled, since monitoring has a high cost when it is not supported by a true benefit. For this you can use a simple technique that consists of answering four (4) basic questions:
1. Is it easy to measure?
2. Is it measured quickly?
3. Does it provide relevant information in a few words?
4. Is it easy to graph?
If the answers to all these questions are affirmative, then an appropriate Indicator is already defined. Of course, it takes little time to evaluate each question concretely and ensure that if the answer is yes or negative, the answer is assured. In addition, this procedure allows defining only Indicators that solve the problem, and not that give more work than the existing one. From these criteria, we can see in Figure 1, what elements are necessary to characterize the Indicators.
Fig. 1: Characteristic elements of the Indicators.
Regardless of these elements, the Indicators must be clear, important (they evaluate key aspects), they must be reliable and above all, select only the necessary ones. Remember that the measurements and monitoring of the Indicators cost. Well, based on these elements, Management Evaluation Indicators, Performance Evaluation Indicators and Technical-Economic Indicators must be formed, according to the classification that you like. Now, this classification depends a lot on what is needed, and for this we will analyze the BSC Methodology or Balanced Scorecard. This methodology is used by 51% of companies, according to a survey by Bain & Company Inc3, carried out in 2001. Well, in this case, it was decided to use this Methodology to arrive at the Service Management Indicators Technicians,in some Hotel facilities.
2. The BSC Methodology and Maintenance.
According to many authors, the BSC Methodology achieves incredible results, thanks to its direct link with the Mission, Vision and Strategic Objectivesof the organization. The first thing that is solved is the obtaining of a Tool that allows to buffer the sudden changes in the business world and does not change in the search for the defined Vision. However, these elements must be aligned with what is established by the different levels of control (Strategic, Tactical and Operational). From here, it is that the way forward is a bit blurred. The issue is how, from the position we are in, we can help the fulfillment of the Indicators developed by the Balanced Scorecard. We all know that the Maintenance Function is one of the many things that must be taken into account in an Installation. Depending on the type of organization, it will be mostly present or not. According to Figure 2These elements must have a linear behavior, from the time the Facility defines and implements the Balanced Scorecard, until these Indicators come to give true results.
What is the Balanced Scorecard or BSC?
The Balanced Scorecard is to translate the organization's strategy into four perspectives: Customer, Internal Business, Innovation and Learning and Financial Perspective, each one supported by a group of defined strategic objectives that imply a series of management indicators, goals and initiatives, interactively connected in a cause-effect relationship.
According to Figure 3, the BSC Methodology allows, based on the Mission, Vision and Strategic Objectives, to define the Financial Objectives required to achieve the Vision and Mission and these will be in charge of projecting the mechanisms towards the Clients (Internal / External). The internal processes are planned to achieve financial and customer goals. Later, everything rests on Learning and Growthof the organization. All these elements guarantee that the Maintenance Function is supporting the achievement of the Objectives of the Organization to which it belongs, and at the same time, guarantees that Maintenance Management complies with what it defined, which cannot be measured, is not can manage.
As the use of the BSC Methodology is somewhat cumbersome, we propose to see its modeling based on an example, carried out in the Technical Services Department of a Tourist Facility. It is good to clarify that the implementation steps are not intended, if not, how to adapt this methodology to the needs of the Technical Services of the Tourist Facilities.
According to the BSC methodology, it is necessary to start from the Mission, Vision and Strategic Objectives. Well, in this case, for a Technical Services Department it can be defined how:
VISION: We must achieve a quality service to make the Facility a preferred center for National and Foreign visitors, with recognized prestige in the sector
MISSION: To guarantee the correct technical condition of the facilities that allows us to provide customer service with the highest quality, based on care for the environment, health and in a sustainable manner, guaranteeing considerable savings for Energy Carriers.
Here it is necessary to stop. As it seems almost evident, the mission can observe trends or fundamental aspects. These focus on:
1. Optimal technical condition of the equipment and facilities.
2. Environmental and health care.
3. Saving of Energy Carriers.
4. Sustainability. It involves both financing and the growth of knowledge. (Intangible Capital.)
5. High Quality Service.
And as a vital element, which is not directly expressed in the text of the Mission:
6. Decrease in Operating Costs.
As can be seen, based on these aspects contained in the Mission, the Strategic Objectives are composed.
Now, how are these factors related to the four (4) aspects proposed by the Balanced Scorecard ? In Figure 4, you can see this relationship. Please note that from the BSC aspects, other elements can be obtained that have to do with this. An example of this is obtained from the Client side, which can be complemented by the need to maintain the quality of the services.
From here, the control panel can be created, in such a way that the selected indicators allow to control and constantly monitor the elements seen here. In general, some of the selected Indicators have their counterpart in those proposed with the BSC. (See Table 1)
Table 1: Selected indicators vs. BSC indicators.
As you can see, the relationship is completely consistent. An important point to keep in mind is the relationship that must exist between these indicators and the indicators that the management of the Facility must carry, in order to guarantee the alignment seen in Figure 2. If this is guaranteed, you can start talking about a balanced scorecard that allows decision-making.
Bibliography:
1. Alva Fuente, Benjamin. "A Result-Oriented Strategic Planting Model through the BSC". Article.
2. Amendola, Luis. "The Balanced Scorecard in Maintenance Management" Article.
3. Betancourt T, José R. “Strategic Management. Navigating towards the fourth Paradigm ”TG-Red Edition. Third edition. August 2002.
4. Pérez Jaramillo, Carlos Mario. "The Management Indicators". Article. decomando.com
