Performance management is a process made up of three elements:
1. Goal planning planning and setting
2. Monitoring goals with balanced scorecarding
3. Performance analysis on a real-time, actionable basis

Widely deployed across other industries, Performance Management software is gaining acceptance in the hospitality industry as a way to improve return on investment (ROI) for business owners through more efficient reporting, more accurate and actionable information for decision-making and improved customer management.

Specifically designed for the hotel and hospitality industry, Performance Management is comprised of three components to form a circle of processes that includes budgeting and forecasting, analysis to measure performance against goals, and analytical tools that drill down into all data sources. Multiple data sources can be used including Smith Travel Research, the property’s PMS, back office, point of sale and other third-party systems. Hotel operators can enter the Performance Management process from any point. The objective is to identify key performance indicators and make accurate decisions as quickly as operational data changes, resulting in improved management efficiency and increased profitability

Managers may enter the Performance Management process from any point in the circle for a clearer picture of property efficiency. Taken together all three components provide a ‘heads-up’ display for managers in dynamic hotel situations and can yield increased return on investment for investors.