Prof. Dr. Georg Westermann, Ilka Sehl, Beatrice Pohle. Conceptual issues for a Strategic Management in Tourist Destinations

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1 Prof. Dr. Georg Westermann, Ilka Sehl, Beatrice Pohle Conceptual issues for a Strategic Management in Tourist Destinations

2 Destination a Complex System economic environment physical environment social environment political environment

3 Strategic Management in Destinations Increasing global competition Stakeholder`s demands Shortened life cycles of touristic products Predominance of SMEs Pressure for legitimation Necessity of cross-company co-operations

4 Balanced Scorecard a Strategic Management Tool

5 Strategic Destination Management Applying Balanced Scorecards Manifold successful implemented management instrument Provides a better understanding of one s position and structures Integration of heterogeneous service providers objectives Integration of monetary and non-monetary performance indicators accounts to the requirements of tourism service industry

6 Balanced Scorecard System within a Destination Accomodation Business Unit Sector 1 Destination Organisation Service Department Provider 1 1 Recreation Business Sector Unit 2 Objectives Financial Customer Internal process Resources Trade Business and Commerce Unit 3 Service Department Provider 2 2 Department Team 1 1 Department Service Provider 3 3 Department Team 2 2

7 Parallel top-down and bottom-up Step 1 Decision makers BSC Step 3 result analyse interdependencies of both BSC levels Step 2 service providers BSC

8 Decision Makers Balanced Scorecard Added value Increase utilisation Increase Overnight stays Create New jobs Customer Increase Customer s satisfaction Develop Target group-specific offers Improve Image Employees & Actors Improve Consulting competensies Increase Identification with the region Process & Co-operation Optimize target group-specific marketing Offer qualitative products Infrastructure Improve booking opportunities Develop a region of partners Increase ecological surplus value Improve transport connections

9 Developing a Destination Balanced Scorecard System Decision makers Balanced Scorecard Objectives Added Value Customer Process & co-operation Employees & Actors Infrastructure Accomodation Food & Beverage Transportation Trade & Commerce Recreation Public utility infrastructure Service provider Balanced Scorecards

10 Service Provider Balanced Scorecard Financial Utilisation profit Customer Customer s satisfaction Target group-specific offers Internal process Quality management Communication processes Marketing activities Resources Employee s qualifications Co-operations Technical equipment

11 A Balanced Scorecard based Benchmarking approach Balanced Scorecard Benchmarking Perspective 1 objectives KPIs Actions Perspective 2 objectives KPIs Actions Perspective 3 objectives KPIs Actions Perspective 4 objectives KPIs Actions anonymous data comparison Ranking 1. rank: Service provider 3 2. rank: Service provider 1 3. rank: Service provider 2 KPIs Service provider 1 Service provider 2 Service provider 3 Changes & Improvements Service provider 1 Service provider 2 Service provider 3 Data Interpretation Service provider 1 Service provider 2 Service provider 3

12 A Balanced Scorecard based Benchmarking approach based on the value-added process based on qualitative and productivity indicators based on the Balanced Scorecard input throughput output outcome qualitative indicators Employees qualifications and motivations Technical equipment Quality management Internal processes profit utilisation cooperation offers Customer satisfaction Productivity-based indicators Employees qualifications Marketingacivities profit utilisation cooperation offers Customer satisfaction

13

14 Benefits of RegioBench Provides a management instrument for all relevant actors in the tourist value added service chain Benchmarking and DEA as instruments for identification of best-practices and efficiency Best practices as starting point for communication and co-operation Generates performance improvements

15 Performance improvement matrix Level of co-operation activity C D C D high A C D B G A E B F C low A C D B D C A G A E D E D B F Destination-internal 7-1 Destination-external 7-3 Benchmarking

16

17 RegioBench at the ITB Friday, , 15:20 p.m. Halle 5.1, Stand der Hochschule Harz Presentation of the Online-Platform RegioBench Saturday, , 13:20 p.m. Halle 5.1, Stand der Hochschule Harz Presentation of the Online-Platform RegioBench

18 Thank you for your attention! Contact: Hochschule Harz University of Applied Studies and Research Friedrichstraße Wernigerode, Germany Prof. Dr. Georg Westermann Phone: Fax:

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