Maverick Lodging Case Analysis

Maverick Lodging Case Study Notes * 1/2000: VP of Asset Management (Cindy Baum) was reviewing the 1999 balanced scorecard results for Maverick Lodging; she had developed & implemented the balanced scorecard throughout 1998 * 1999: first full year of results using the balanced scorecard approach * Designing a balanced scorecard had been a considerable challenge because of the complicated nature of the hotel industry * Maverick Lodging: managed hotels on behalf of 3rd party owners who had franchise agreements with Marriott * Maverick concentrated on managing 3 specific types of Marriott properties: Fairfield Inns, Courtyards, & Resident Inns * Fairfield & Courtyards: offered typical variety of hotel rooms * Residence Inns: offered “suite arrangements” that incl. a kitchen, sitting room, & 1 or 2 bedrooms * Courtyards: typically had a restaurant (the other 2 did not) * Fairfield & Residence Inns: had a gatehouse area that served complimentary breakfast * Because 3rd party owners had many choices among hotel management companies, Maverick believed that adopting a balanced scorecard might help differentiate its services * Additionally, Baum believed that a good balanced scorecard would be particularly useful to her because she was a principal liaison between the hotel owners & Maverick * Therefore, she had primary responsibility for ensuring that contract terms & both parties’ objectives were met * Maverick was one of the earliest hotel management companies to implement a balanced scorecard management system * Successful results from the balanced scorecard could help Maverick attract more hotels to manage, which would increase Baum’s responsibilities * In addition, the hotel managers were counting on the scorecard to work properly, as it was their performance assessment & compensation would be affected by the results