Implementation of the Balanced Scorecard: The Case of Star-Class Hotels in Sri Lanka

Abstract

Although there are numerous studies carried out to study the Balanced Scorecard (BSC) as a performance measurement system, there is a dearth of research studies on the post-implementation issues of BSC, especially in hotel industry in Sri Lanka. Therefore, this study attempts to address the research question of "Can the Balanced Scorecard be developed and implemented as an effective organizational performance measurement system in star-class hotels in Sri Lanka?" To address the objectives of the study, a mixed method research approach was adopted by utilizing multiple case studies. Five star-class hotels were selected as case studies, covering entire geographical area of the country. Data were gathered through documentation review; interviews with the top management; and a questionnaire administered among senior and middle level managers. The study found that hotels were more concerned about financial and customer perspectives when measuring hotel performance and a lower degree of attention was given to internal business perspective, and innovation and learning perspective. Further, interviews raised some important concerns, which need to be addressed when implementing BSC in the hotel sector in Sri Lanka.