Methodology MANAGEMENT AND PERFORMANCE MEASUREMENT FOR DMOS: A BALANCED SCORECARD APPROACH Dr. Douglas C. Frechtling Professor of Tourism Studies School of Business The George Washington University to the Ulysses Conference on Excellence in Public/Private Tourism Destination Management World Tourism Organization, Madrid, Spain, June 2, 2005
Slide 2Introduction Conference committed to DMO Excellence Must incorporate "Manageability" Long-term center Strategic Objectives Strategy Management System Performance Measurement System
Slide 3Business Strategic Objectives Focus on boosting proprietor/shareholder esteem over the long haul Now should deliver adding to society's prosperity, too Still a focal concentrate on back
Slide 4Life is Not So Simple for Destination Managers!
Slide 5Importance of Goals Douglas Pearce, in his particular treatment of Tourist Organizations (1992), states: "Social specialists have noticed that objectives assume a key part in the foundation and presence of associations."
Slide 6Strategic Goals & DMO's Challenges "Tourism Supply" can be characterized as - An accumulation of differing items Sold by a huge number of sellers From a scope of enterprises In a plenty of areas To very portioned advertises Through an intricate appropriation chain !
Slide 7In Addition to These Challenges, DMOs . . . Have little control over item quality, accessibility or cost Must advance whole product offering Do not profit much from their exercises Are obligated to a few partner bunches
Slide 8Range of DMO Goals INCREASE BENEFITS Visitor volumes from chose showcase sections Supplier deals Employment openings Personal wage Government income
Slide 9Range of DMO Goals REDUCE COSTS Congestion Other social costs Environmental costs Consumer seek costs
Slide 10A New Solution: The Balanced Scorecard Introduced by Robert Kaplan and David Norton in 1990 Adopted by the greater part of the main 500 companies in America now Adopted by affiliations, colleges and government organizations, also Spawned more than about six books
Slide 11What Gets Balanced? Monetary and nonfinancial markers of progress Internal and outside partner intrigues Leading and slacking achievement pointers
Slide 12The BSC is intended to . . . Direct viable usage of a procedure Measure hierarchical execution in achieving vital objectives
Slide 13BSC as a Strategy Management System Requires quantifiable destinations Tests each activity and cost against targets Cascades to workers and providers Communicates technique and destinations
Slide 14BSC as a Performance Measurement System Addresses objectives in four points of view Financial Customer Internal procedures Learning and development Two sorts of progress markers Lagging Leading – "Execution Drivers"
Slide 15Adapt the BSC to a DMO Partnering with Faculty of Tourism and Food at the Dublin Institute of Technology Apply it to Ireland West Tourism Assisted by an exploration concede from the WTO Education Council
Slide 16The Business Balanced Scorecard Schematic
Slide 17Sample DMO BSC Matrix
Slide 18Sample BSC Strategy Map for a DMO
Slide 19BSC Benefits for the DMO Provides responsibility Generates quantifiable results Creates concentrate on methodology Produces data, not simply information Demonstrates productivity Drives change Inspires trust
Slide 20Next Steps Consensus working among IWT partners on mission, qualities and vision proclamation Develop scratch goals and system Designate execution drivers by viewpoint Develop measures, targets and activities Apply BSC and screen quarterly
Slide 21Next Steps Results of the Ireland West Tourism application will be distributed for the WTO people group Stay tuned to the WTO Education Council
Slide 22Thank You!
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