The Scorecard as a Critical Tool for IT Value

The Hilton Hotel Corp.’s experience with the Balanced Scorecard proves that an IT organization can benefit from the Scorecard, even if it’s never rolled out within the department. In 1997, Beverly Hills, Calif.-based Hilton implemented the Scorecard companywide to maximize revenue, improve guest satisfaction and operational effectiveness, and foster internal learning and growth. However, CIO Tim Harvey never implemented the Scorecard within IT.

Still, Harvey says the Scorecard has been a critical tool for ensuring IT’s continued value. Though IT doesn’t have its own Scorecard, Harvey says, no IT project is commissioned without tying it back to one of the major value drivers on the Hilton Scorecard. For example, because one of Hilton’s key drivers is operational effectiveness, Harvey has made a major push to come up with technology to minimize manual efforts in conducting hotel business. “We’re constantly looking at what kind of technology we can provide that will reduce cost as much as possible,” he says. Harvey says using the Scorecard as a simple guidepost?even without devising one of his own?has done wonders for IT’s relationship with business. “It’s helped me make sure that everything we ask the corporation for money for is in complete alignment with the business,” he says. “As a result, I’ve seen the satisfaction with my organization rise.”