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In 1998, Cindy Baum, the Vice President of Asset Management at Maverick developed and implemented a

balanced scorecard to be used both for the overall organization and for the hotel properties that it manages. The
balanced scorecard was fully implemented and used for performance measurement for the 1999 operating year.
Now entering its second year, Baum wants to consider how the business performed with the addition of the
balanced scorecard approach, whether or not the balanced scorecard was effective, and how the scorecard can be
further improved.

The performance of Maverick properties for 1999 was generally mixed for each of the property categories
managed. There were improvements in the financial performance measures identified in the scorecard, such as
top-line yield and flexible flow-through budget, while non-financial areas such as customer satisfaction and
employee turnover saw a large decline. Therefore, despite the balanced scorecard providing favorable results,
there is still opportunity for it to increase its level of effectiveness upon further revisions.

llowed Maverick to provide opportunities for higher success in indicators such as RevPAR for the hotel
stakeholders.

By providing financial and non-financial indicators that measure both the long-term and short-term growth,
Maverick anticipated a high success rate in their operation goals. One of the most important operational goals for
Mavericks managed hotels was to exceed the profitability levels of Marriott-branded hotels owned and managed
by Marriott. To do this, the balance scorecard focused on profitability measures such as top-line yield growth
measures, and controllable profit relative to flexible budget. This provided additional value for hotels looking for
a management company, which would convince potential hotel owners/franchisers that the service Maverick
provides is better than that which Marriott provides.