Publications
Publications
- July 2015 (Revised October 2016)
- HBS Case Collection
China Lodging Group (A)
By: Tatiana Sandino, Shelley Xin Li and Nancy Hua Dai
Abstract
This case study explores the challenges of aligning middle management interests with company goals as a company navigates rapid growth in a dynamic industry. China Lodging Group, a Chinese hotel chain that opened about 2,000 hotels during its first decade in business, uses Balanced Scorecard (BSC) metrics to promote both consistency of service and an entrepreneurial attitude among hotel managers. The company needs to encourage its managers to operate according to company-level values and goals, without gaming the BSC metrics for short-term rewards or without focusing exclusively on local, narrow results. This case illustrates how executive teams can develop incentive systems that increase managers' sense of ownership and commitment to company values and goals.
Keywords
Motivation and Incentives; Business or Company Management; Growth Management; Balanced Scorecard; Accommodations Industry; China
Citation
Sandino, Tatiana, Shelley Xin Li, and Nancy Hua Dai. "China Lodging Group (A)." Harvard Business School Case 116-004, July 2015. (Revised October 2016.)