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ACCA Strategic Professional · Advanced Performance Management · Non-financial performance measurement

Karolis Hotels is building a balanced scorecard. Management wants a customer-perspective measure that is a leading indicator of future revenue rather than a lagging result. Which measure is most appropriate?

The percentage of guests who would recommend the hotel is the best leading customer measure. It captures satisfaction and loyalty, which drive future bookings and revenue. Room revenue and ROCE are lagging financial results, and average salary is not a customer-perspective indicator at all.

  1. ATotal room revenue for the year
  2. BPercentage of guests who say they would recommend the hotel, surveyed at check-outCorrect
  3. CReturn on capital employed of the hotel group
  4. DAverage staff salary per employee

Explanation

Guest recommendation intent reflects satisfaction and predicts repeat bookings and referrals, so it leads revenue. Room revenue and ROCE are lagging financial outcomes, and salary is an internal cost measure, not a customer measure.

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