酒店业的六西格玛资料课件

WhySixSigma@StarwoodWhySixSigma@StarwoodWeThinkWe’reDifferent!WeThinkWe’reDifferentoday,if2.5(84%yield)then10dissatisfiedcustomerseveryday,everyproperty!WhySixSigmaComplex,multi-stepprocessStarwood=25MillionGuestsAnnuallyIf99%,then90%yield

9dissatisfiedperpropertyeverydayIf99.9997%then,99.997%yield10dissatisfiedperpropertyeveryyear99%x99%x99%x99%x99%x99%x99%x99%x99%x99%=90oday,if2.5(84%Widevariabilityofperformancetocustomerexpectationsincoreprocessesacrossbusiness:MajoropportunityMajorriskNocommonmethodforsustaining,leveragingandtransferringinnovationacrossStarwood

LackofrobustprocessestosustainaboveaverageEBITDAgrowthrates:

InternalviewthatStarwooddoesn’tsystematicallysupportcollaboration,processimprovement,peopledevelopment,andbestpracticesharing.“CaseforChange”WidevariabilityofperformancTheCaseforChange:

GuestSatisfaction-25MillionGuestsGlobalGSIComposite“HighlySatisfied”=3-6xmorestaysvs.“satisfied”OpportunitySatisfiedcustomers=$2bn+RevenueBillionsofrevenuefromincreasedsatisfaction“Dissatisfiedcustomers”tell8-10people...…“internet”allowsdissatisfiedcustomerstobroadcasttothousandsofpeople20,250,000

peopleawareofdissatisfactionBillionsofpotentiallynegativeimpressionsZagatsExpediaTravelocityEThreatSatisfied41%HighlySatisfied50%Dissatis.9%Ifnot“highlysatisfied”,thencustomersdefectforpriceorlocation.12,500,000

“atrisk”customersProvideCustomersCompellingReasonToReturnTheCaseforChange:

GuestSatWhatIsSixSigma?WhatIsSixSigma?Youlistentothecustomer..Yougetthefacts...Youeliminatenon-valueaddedwork...Yougivethecustomerwhatshewants–consistently!SixSigma:What’snottolike?Youlistentothecustomer..TheFoundationSixSigmais…VoiceoftheCustomer-Measure:

-Goal: Systemofmanagement:

ToBenefittheBusiness&itsCustomers,AssociatesandOwners

HowwellwearemeetingtheCustomersrequirementsCriticaltoQualityMeasuresDefinethecapabilityofaprocessImprovementthatreachesnear-perfectionAchievelastingbusinessleadershipandtopperformanceTheFoundationSixSigmais…ToCustomerisanypersonororganizationthatreceivesaproductorservice(Output)fromourworkactivities(Process)ProcessisSeriesofActivitiesthat:TakeInputs,AddsValue,ProducesOutputSixSigma:ProcessFocusedCustomerisanypersonororgaSixSigmaApproach&ProjectsSixSigmaSequence

GenerateProjectIdeasTransfer“BestPractices”SelectProjectsDoProjectsEveryoneincluding:customers(Internal&External)EvenVendorsSixSigmaCouncilPropertyAreaDivisionalDMAICProjects:BB&TeamQuickHitsProcessownerDesignatebestpractice–SixSigmaCouncil(Division,Global)iDMAIC“Import”projectsProcessownerSixSigmaApproach&ProjectsSixSigma:WhatItIsNot!

Statistics,statisticsandmorestatistics...

Numbersofprojects...Theonlywaywecanchange&improve...A“magicpotion”tosolveeverything...SomethingDONETOthebusinessbyspecialistsAsubstituteforsoundbusinessstrategy...SixSigma:WhatItIsNot!SixSigmaRolesWhatisaBlackBelt?WhatisaMasterBlackBelt?Whatisyourrole?SixSigmaRolesWhatisaBlack酒店业的六西格玛资料课件SixSigmaRoles:BlackBeltsWork

withpropertyleadershiptoidentifyopportunities

MobilizetheteammembersandothersinthepropertyCoach/trainteammembersinSixSigmamethods“just-in-time”Identifyimplementationsuccessbarriers&workwithotherstoovercomeRecommend&PilotwiththeteaminnovativebusinessprocessimprovementsAchieveandcapturemeasurablefinancial&guestloyaltyresults;

complete3to8projectsannually,dependingonsize,complexity&resourcesBBDoestheWork&Drivestheteam!Responsibility:Profile:“A+”talent;yourassociatewhoyoucanleastaffordtolose!Analytical“horsepower”,intellectualcuriosity&problemsolvingskillsLeadership

&influenceskillsFuturebusinessleadersSixSigmaRoles:BlackBeltsWoSixSigmaRoles:MasterBlackBeltSupport,challenge&guide

projectselectionthroughtheSixSigmaCouncil(e.g.,whatprojectsshouldpropertyworkon).Leadership,direction,guidance&supporttoAMD,VP’s&GM’srelatingtoSixSigmaCoach&consulttoBlackBelts,&applySixSigmamethodsinareaofresponsibility(area,division,orcorporate)Analytical“horsepower”,intellectualcuriosity&problemsolvingskillsEnsurequality&robustnessofprojectintegrity&teamsolutionsDriveinnovationtransfer;prevent“reinventingthewheel”Achievemeasurablefinancialandcustomerloyaltyresults:completeapproximately15to30projects,dependingonsize,complexityandresources(approximately$5-$10MMannually)“PortfolioManager”SixSigmaRoles:MasterBlackTraining&Tools—BlackBeltTrainingLeadingTeamsDMAIC1DMAIC2TrainingProjectSoftware&IntranetToolsE:TOOLPowerPointMiniTabExcelVisio&ProjectBlackBeltHiringAssessmentToolsBehavioralInterviewsComputerSkillsassessmentComprehension&NumericalRelationshipsTraining&Tools—BlackBeltTraOtherImportantSixSigmaRolesProjectSponsorsPeople(manytimesleadership)withintheexistingorganizationmostcloselyassociatedwithaproject.Theyaretypicallytheoneswhowillgainorlosethemostfromtheproject’ssuccessorfailureProcessOwnersPeopleresponsibleforon-goingpost-implementationsupportofprocesschanges/improvementsMustworkcloselywithProjectSponsorand/orBlackBeltthroughoutprojectImprovementTeamMembersParticipateinallstepsofdefiningandimplementingprojectsTheyarethesubjectmatterexpertsOtherImportantSixSigmaRoleSixSigmaAPDRolloutSixSigmaAPDRolloutAPDTimetableStaffMBBsPreliminarytimetabletoimplement1Q03SepOctNovDecJanFebAprJulAugMarSelectBBsMBB&BB“Wave1”training&trainingprojects$Propertycounciltraining(SSC)3to4PropertiesperFirstBBprojectsstartOwner“roadshows”DesignAPDarchitecture&rolloutGMtraining(LSS)BB“Wave2”training&trainingprojectsFirst“QuickHits”2$12Property“billing”iDMAICNov02BeyondHRASSESSMENTTOOL1$MBB’sStartJan1APDTimetableStaffMBBsPrelimiAPDSixSigmaSummary45+full-timeresources,globally10,000trainingdaysProjects600+DMAIC,Transfer&QHprojectsintoControl 3to5YearGoalsGuests:ExceedexpectationswithlessvariabilityOwners:SubstantialFinancialBenefitAssociates:Toolstocosteffectivelytransferinnovation&improvecoreprocesses 2003Targets:AtleastFullBreakeven$600,000+BB’s,MBB’setcAPDSixSigmaSummary45+full-“BlackBelt”(40-45+/-):

Full-timeleadership&executionofproperty,area,ordivision-levelprojects

Associates:Workonprojectteams“MasterBlackBelt”(3-4):

SupportAMDsviadiagnostics,managetheprojectportfolio,andcoachBBswithinageographyDivisionManagement,AreaVP,GM:Project,processandbusinessresults

DivisionSixSigmaLeader:DrivingtheSixSigmainitiativewithinthedivisionDivisionSixSigmaAnalyst(1):Financialtracking,reporting&analysisofprojectsandresultsKeyRoleAccountabilityFTE=45+/-APDSixSigmaOrganizationEVPSixSigma“BlackBelt”(40-45+/-):Divi10BBMBB#110BBMBB#2

10BBMBB#3VPSixSigma&MBBIndonesiaSixSigmaLeadershipMBB#4

10BBAus./NZ/FijiMalaysia,Thailand,&PhilippinesChina,HongKong&MacauJapan,Korea&GuamVERYPRELIMINARYDivisionSixSigmaAnalystTheabovecouldalsobeconsiderationforthewayAreaCouncilsarestructuredifitfitswithinthestrategicframework&organizationofthedivision10BBMBB#110BBMBB#210BBMBTrainingProjectListBlackBelt&PropertyTrainingCycle1-2MonthsagoLSSOverviewofSixSigmatoolsandSSCprocessPre-work(GM,BB,ExComm)SSC3daycourseDMAIC1TrainingprojectDMAIC2GeneralManager&PropertyTraining

SSCWorkshop

SimulationPDFreview/critiqueCouncilMeetingActionPlans1DayGM-ledsession3DayFacilitatorledTrainingevent$$$$$BBProject#1BBProject#2TodayBrainstormingPrioritizationSelectionof3-5projectideasPDFassignmentPDFPDFRevisedPDF’sPDFPDFSSC4x/year$$$1-2weeksPDFPDFPDFBlackBeltTrainingTrackTrainingBlackBelt&PropertySixSigmaTrainingInvestment10,000+DaysofTrainingSixSigmaTrainingInvestment1SixSigmaTrainingDeploymentiDMAICTrainingisintendedforallonPropertyManagersandwillbedonethrutheDevelopmentCenteronlineinStarwoodOneDetaileddescriptionofthetermsusedcanbefoundhereSixSigmaTrainingDeploymentGeneral6SigmaInformationGeneral6SigmaInformationSixSigmaInformationETOOLINNOVATIONTRANSFERLESSONSLEARNEDCURRENTGLOBAL,DIVISIONAL&CORPORATEPROJECTSTHEDMAICPROCESSSixSigmaInformationETOOL1)TheEToolDocumentsProjectsTollGates&TracksProjectProgressRecordsourFinancialsTransfersBestPracticesKnowledgeWarehouse–AccessibleGlobally1)TheEToolDocumentsProject3002001000100806040200BADCEFBAr=.7CauseBEffectr=.5CauseAEffectDefectsSigma246ProcessBaselineDefectsSigma246ProcessEntitlementProcessRedesignSIProcessOCFriendlyResponseSpeedCTQVoiceoftheCustomerProjectCharterReducecycletimeandvariabilityofCheck-In.Choice3

Choice2Choice1SolutionsDecisionMatrixCriteriaImplementationActivitiesDefineMeasureAnalyzeImproveControlDMAICProcessImprovementMethodology3002001000100806040200BADTheStatisticalToolsusedTheStatisticalToolsusedTollgateChecklist–DefineForourproject,wehave:1. ConfirmedthatourprojectisaworthwhileimprovementpriorityandissupportedbytheQualityCouncil.2. Beengiven(orwritten)abriefbusinesscaseexplainingthepotentialimpactofourprojectoncustomers,profits,anditsrelationshiponbusinessstrategies.3. Composedandagreedtoatwotothreesentencedescriptionoftheproblemasweseeit–theProblemStatement–focusingonsymptomsonly(notcausesorsolutions).4. PreparedaGoalStatementdefiningtheresultswe'reseekingfromourproject,withameasurabletarget(orplaceholdertoaddone).NosolutionsareproposedintheGoalStatement5. PreparedotherkeyelementsofanDMAICteamcharter,includingalistofconstraintsandassumptions,areviewofplayersandroles,apreliminaryplanandschedule,and(ifneeded)aprocessscope.6. ReviewedyourCharterwithyoursponsorforthisprojectandconfirmedhis/hersupport.7. IdentifiedtheprimarycustomerandkeyrequirementsoftheprocessbeingimprovedandcreatedaSIPOCdiagramoftheareasofconcern.8. Preparedadetailedprocessmapofareasoftheprocesswhereweexpecttofocusourinitialmeasurement.YESNOYESNOYESNOYESNOYESNOYESNOYESNOYESNOEveryStageoftheDMAICProcesswillhaveatollgatechecklistEveryStagewillrequireSixCouncilandMBBreviewandapprovalTollgateChecklist–DefineForProjectSearchCriteriaProjectSearchCriteriaProjectsbyMasterBlackBeltoravarietyofothersearchmethodsProjectsbyMasterBlackBelt酒店业的六西格玛资料课件AProjectsP&LSummaryMonthlyViewAProjectsP&LSummaryMonthlyProjectFinancialBenefitSummaryProjectFinancialBenefitSummP&LSummary,Total,Property,ProjectP&LSummary,Total,Property,2)InnovationTransferTheRoleallofourAssociateswillplayinchangingthecultureandexecutingthebenefits2)InnovationTransferTheRole- Peopletrained,processesmapped&measured- “BestPractice”innovationstransfer- Dashboardsinplace- Clearsigmaimprovementagainstcustomer“CTQs”.- Dramaticprocessimprovementagainststretchtargetsto“CTQs”- Coreprocessesredesigned- SixSigmadeliversmaterialnetincome.- Thewaywerunthebusiness,daytoday.Multi-YearChangeProgram:DeliverCompellingGuestSatisfaction2-3s20012002-32004-6WhatOur“Roadmap”LooksLike- Programlaunched&rightresourcesallocated- Organizationbelieveswe’reserious-Projectslaunched&improvementtracked;- Greattalent:BBs/MBBs-DeliverstotheP+L3-4s4-5s- Peopletrained,processesInnovationTransfer

providesusthevehicletogetallManagementTeamstrainedontheimportationofBestPracticeProjectsInnovationTransfer

providesuInnovationTransferCreatesStrategicAdvantageTacticalAdvantage2001-2:ProjectBenefitsProjectsdelivervalueattheproperty,fortheproperty:ProjectsimprovepropertyprocessesStrategicAdvantage2002-3+:InnovationTransferProjectsdelivervalue&improveStarwood-wideprocessesInnovationsrapidlytransferredtoallapplicableStarwoodproperties:InnovationTransferCreatesStInnovationTransferSPEEDLessInvestment(Don’treinventthewheel)LessRisk(Dowhatworkssomewhereelse)FasterImplementation–fasterbenefitsFasterrecoveryfromerrors-experimentationROI3Years>6MonthsInnovationTransferSPEEDROI3InnovationTransferAsof25June2002,8weekssincelaunch...8weekssincelaunch195TransferProjectsinProcessInnovationTransferAsof25JuiDMAICStatisticsModule4Completion(7202)iDMAICStatisticsModule4CompSixSigma:WhatitTakes

Results

=Quality

(ofsolution)XAcceptanceRQAGreatSolutionsWithoutBuy-inGetYouNothing!SixSigma:WhatitTakesResul3)KeyLessonsYear1SixSigmaasStarwoodValueStaff“top”talentasBlackBeltsLeveragetheSixSigmanetworkasresource–MBBs/GlobalteamProjectsthatmakeadifference–totheproperty...acrossthesystemProjectslinkedtoleader“big5”Do“QuickHits”“Import”innovationCommitment&InvolvementClearprojectsponsorshipwithresponsibilityLeadershiptestedateverylevelCouncilpartofregularmanagementcycleApplySixSigmaroles:ActivelyLeadit!Selecttherightprojects3)KeyLessonsYear1SixSigmaDriveChanges

ThatMakeADifference

FortheGuest&

ToTheBusiness

4)Corporate,Divisional&GlobalProjectsDriveChanges

ThatMakeADif

BuildingtheSixSigmaCultureinAsiaPacific

AllowSixSigmatoweavethefabricofitsowncultureasitrelatestotheAsiaPacificRegion.Lessonslearnedwillbeimportant—butmoresotoguideusandanticipatepreviousshortcomings.1standforemostaclearunderstandingofeachregionsnuances,personalities,cultures,AwarenessofBrands&variedcustomerexpectations,Financial&Ownershipexpectations—understanding,involvementandbalance---targetprojectsthatmanagetothoseexpectationsTodrivedirectiontowardsmeaningfulprojects----basedoneachregionsneedsPassionaboutthisstuff---canbringchangetothewaywetreatourcustomersInvolvementEarlySuccessesHiringGreatpeopleHandsoninvolvementShorteningthelearningcurveBuildonourstrengthsandshareoursuccessesasaDivisionMinimizesomeoftheshortcomingsoftheoriginalroll-outsBorrowfrombestpracticesinNAD,LAD&EuropeAbilitytobuildrelationships,coalitions,andpeopleworkingtogethertoaccomplishthesamegoalWillclearlyrelyonthepeople(AMD/VP’s,GMS.&BB)tohelpclarifyandprovidethedirectionaswedevelopourstrategies&direction.

BuildingtheSixSigmaCulturGlobalStatusWeekEndingJune28GlobalStatusWeekEndingJuneSixSigmaBenefitsSnapshot2002System-wideSixSigmaBenefits(US$mm)2001YearEnd2002YTDActual2002FullYearForecast2002PriorMonthF/YForecast2002Budget2003ForecastSystem-wideBenefitsCorporate2.31.13.74.07.53.4NAD-Owned19.829.160.259.057.713.2-Managed14.225.856.553.751.716.0LAD-Owned3.43.57.27.17.93.3-ManagedNA0.10.20.10.00.0Europe-Owned2.26.315.613.214.810.1-Managed2.33.89.79.110.65.4St.Regis-Owned2.51.74.33.54.51.6-Managed0.30.50.90.91.50.2SVONA0.10.20.21.00.1Total-Owned30.241.891.287.093.431.7-Managed16.830.267.363.763.821.6STARS2.33.68.26.97.05.3TotalSystem-wideBenefits49.375.6166.7157.7164.258.6%benefitsfromDMAICProjects:18%20%30%84%SixSigmaBenefitsSnapshot200DMAICProjectAverageValueAverageDMAICProjectValuebyDivisionNotes:Projectdataasof6/27/02Assumedthat2001+2002+2003forecast=totalprojectvalueforecastUsed2001YEnumbersfromoldexcel"CotterReport"worksheetOriginalmodelof$200kaverageperDMAICprojectat“maturity”,with“learningcurve”averageeconomics:trainingproject$0,P1$67k,P2$133k.P3$200k–atthispointintime,modelaveragebenefitsof$140k(D-I)Averageprojectvalue$15k+(10%)aheadofmodelDMAICProjectAverageValueAve2001SixSigmaAwardWinners2001SixSigmaAwardWinnersWhyarethesewinners?Impact–processAND$$$$Wouldn’thavedonewithoutSixSigmaCross-functionalANDteamtoimplementNeededthetools...andusedthemTransferabilityWhyarethesewinners?MajorCorporateProjectsCORPHQPROJECTSCOMPLETED2001OutsideLegalCouncil(11984)–ReducefeespaidtooutsideattorneysformattersthataremanagedbytheCorporateLegalDepartment.2001benefit:$284k.2002benefit:$1.05mm(Sponsor:Seigel)AccountsReceivable(10821)–Reduceinterestcostsoffloatingreceivablesformanagedproperties.2001benefit:$153k.2002benefit:$342kBenefitTermination(12065QH)–Terminatebenefitsclosertoterminationdate(ratherthanpaybenefitsthroughtheendofthemonth).2001benefit:$581k;2002benefit:$480mm(Sponsor:Norton)DevelopmentProcess(12437)–Producednewbusinessplan,dealparameterguidelines,andnewapprovalprocess.Benefitnotquantified.(Sponsor:Goldman)CORPHQPROJECTSIN-PROGRESS2002WarrantyInsuranceProgram(12036)–Reducerepairandmaintenanceexpense;L/Topportunitytarget20%reductiononabaseof$52mmspentinNADin2001AirlinetravelServices(11965)–Newtravelguidelinesandtrippre-approvalprocess;PartIIwillexamineAmericanExpresspricingandservice.PartIbenefit2002:$200k.PartIIbenefit:TBD.HotelAccountingStandardizationandAutomation–Reengineer5coreprocesses—RevenueAudit,Cash,PurchasingandAP,AR,andtheClose.Estimatedbenefit:$3-5mmCorporate:7BBsand2MBBsMajorCorporateProjectsCORPHSTARSPROJECTSCOMPLETED2001MultipleCCCConversionProjects(11721,10693,43166,40821,19251)–Aseriesofprojectstoassessrecruiting,training,reporting,andperformanceofCCCassociateswiththegoalofincreasingconversionrates.2002benefit:$1.3mmSTARSPROJECTSIN-PROGRESS2002E-MailAddressCollection(40483)–Increasethecaptureratefore-mailaddressesfromproperty-enrolledSPGmembers.2002benefit:$162kPromotionLoading(14060)–Improvethemethodforprocessingmarketingpromotions.GDSRateModification(42369)–Reduceturn-aroundtimeandimprovetheaccuracyofratesloadedinGDSbyStarlink/GDSdesk.2002benefit:$280k.OptimizeCallHandlingTime(44847)–MinimizeATTvariancebycalltype.2002benefit:$384k.MajorSTARSProjectsSTARS:7BBsand1MBBSTARSPROJECTSCOMPLETED2001MGlobalProjectsApproved12/01Check-in(26373)–Twogoals:(1)Avisionforawinningcheck-inprocessthatdeliverscompetitiveadvantage;and(2)identifyandimplementincrementalimprovementstothecurrentprocess(sponsors:TedDarnallandSteveHankin)GuestIncidents–DesignproceduresforhandlingthesubsetofguestcomplaintsthatcouldpotentiallyexposeStarwoodtolegalexpense.(sponsor:PaulScottandTonyRodolakis).Overtime–NotaDMAICproject;rather,itisanefforttoassembletheresultsof40similarprojectsanddisseminateanOTreductiontoolkitviatheinnovationtransferprogram(sponsor:JosePonte).BusinessPlanningProcess–(35240)Designaplanningprocessthatlinksbudgeting,annual/initiativeplanning,andstrategicplanning(sponsor:DeneRogers)A&C/Design–Clarifyrolesandresponsibilitiesbetweenthetwogroups;afterthat,proposeasuiteofDMAICandQHprojects(sponsor:NormanMacLeod&JamesHyman)GlobalProjectsApproved12/01NADInitiativesandProjectsNADInitiativesandProjects5)TheDMAICProcess5)TheDMAICProcessDefineMeasureAnalyzeImproveControl“DMAIC”Projects:ConsistentMethod1.Whatistheprojectcharter?2.Whatisthe“VoiceoftheCustomer”Gettherightdata......nottheeasy,availabledata.Whatdoesthedatatellus?Whatisthe“rootcause”?Fixtheprocess“Improve”“Redesign”Istheimprovementdeliveringresults?FivePhasesofSixSigmaProjects:DefineMeasureAnalyzeImproveCon3002001000100806040200BADCEFBAr=.7CauseBEffectr=.5CauseAEffectDefectsSigma246ProcessBaselineDefectsSigma246ProcessEntitlementProcessRedesignSIProcessOCFriendlyResponseSpeedCTQVoiceoftheCustomerProjectCharterReducecycletimeandvariabilityofCheck-In.Choice3

Choice2Choice1SolutionsDecisionMatrixCriteriaImplementationActivitiesDefineMeasureAnalyzeImproveControlDMAICProcessImprovementMethodology3002001000100806040200BADTollgateChecklist–DefineForourproject,wehave:1. ConfirmedthatourprojectisaworthwhileimprovementpriorityandissupportedbytheQualityCouncil.2. Beengiven(orwritten)abriefbusinesscaseexplainingthepotentialimpactofourprojectoncustomers,profits,anditsrelationshiponbusinessstrategies.3. Composedandagreedtoatwotothreesentencedescriptionoftheproblemasweseeit–theProblemStatement–focusingonsymptomsonly(notcausesorsolutions).4. PreparedaGoalStatementdefiningtheresultswe'reseekingfromourproject,withameasurabletarget(orplaceholdertoaddone).NosolutionsareproposedintheGoalStatement5. PreparedotherkeyelementsofanDMAICteamcharter,includingalistofconstraintsandassumptions,areviewofplayersandroles,apreliminaryplanandschedule,and(ifneeded)aprocessscope.6. ReviewedyourCharterwithyoursponsorforthisprojectandconfirmedhis/hersupport.7. IdentifiedtheprimarycustomerandkeyrequirementsoftheprocessbeingimprovedandcreatedaSIPOCdiagramoftheareasofconcern.8. Preparedadetailedprocessmapofareasoftheprocesswhereweexpecttofocusourinitialmeasurement.YESNOYESNOYESNOYESNOYESNOYESNOYESNOYESNOEveryStageoftheDMAICProcesswillhaveatollgatechecklistEveryStagewillrequireSixCouncilandMBBreviewandapprovalTollgateChecklist–DefineForMeasureIPOInputOutputDevelopMeasuresProcessBasedonCTQsandprocessStratificationWho?What?When?Where?operationaldefinitions

(op-e-ra’-shen-el

def-e-nish’-ens)OChecksheetsSamplingProcessCapabilityTollgateMeasureIPOInputOutputDevelopMAnalyzeDeploymentMappingValue-AddedAnalysisCause&EffectHypothesis

StatementsRegressionDataAnalysis?TollgateAnalyzeDeploymentMappingValueRunChartvs.BoxplotSheratonPompeii

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RoomOccupancy1998-2000YearOccupancyRateStarwoodStation?RunChartvs.BoxplotSheratoImproveSolutionGenerationShould-BeMappingCost/BenefitAnalysisImplementationPlanningPilotNarrowingSolutionsMulti-VotingRiskManagementLaunchFMEATollgateImproveSolutionGenerationShouControlOngoingMeasurementDashboardReviewDocumentationRevisionPlanningControlChartsMulti-VotingProcessManagementSIPOCFuture-FocusedCause&EffectTollgateProcessNameProcessMapMonitoringControlOngoingMeasurementDashWhySixSigma@StarwoodWhySixSigma@StarwoodWeThinkWe’reDifferent!WeThinkWe’reDifferentoday,if2.5(84%yield)then10dissatisfiedcustomerseveryday,everyproperty!WhySixSigmaComplex,multi-stepprocessStarwood=25MillionGuestsAnnuallyIf99%,then90%yield

9dissatisfiedperpropertyeverydayIf99.9997%then,99.997%yield10dissatisfiedperpropertyeveryyear99%x99%x99%x99%x99%x99%x99%x99%x99%x99%=90oday,if2.5(84%Widevariabilityofperformancetocustomerexpectationsincoreprocessesacrossbusiness:MajoropportunityMajorriskNocommonmethodforsustaining,leveragingandtransferringinnovationacrossStarwood

LackofrobustprocessestosustainaboveaverageEBITDAgrowthrates:

InternalviewthatStarwooddoesn’tsystematicallysupportcollaboration,processimprovement,peopledevelopment,andbestpracticesharing.“CaseforChange”WidevariabilityofperformancTheCaseforChange:

GuestSatisfaction-25MillionGuestsGlobalGSIComposite“HighlySatisfied”=3-6xmorestaysvs.“satisfied”OpportunitySatisfiedcustomers=$2bn+RevenueBillionsofrevenuefromincreasedsatisfaction“Dissatisfiedcustomers”tell8-10people...…“internet”allowsdissatisfiedcustomerstobroadcasttothousandsofpeople20,250,000

peopleawareofdissatisfactionBillionsofpotentiallynegativeimpressionsZagatsExpediaTravelocityEThreatSatisfied41%HighlySatisfied50%Dissatis.9%Ifnot“highlysatisfied”,thencustomersdefectforpriceorlocation.12,500,000

“atrisk”customersProvideCustomersCompellingReasonToReturnTheCaseforChange:

GuestSatWhatIsSixSigma?WhatIsSixSigma?Youlistentothecustomer..Yougetthefacts...Youeliminatenon-valueaddedwork...Yougivethecustomerwhatshewants–consistently!SixSigma:What’snottolike?Youlistentothecustomer..TheFoundationSixSigmais…VoiceoftheCustomer-Measure:

-Goal: Systemofmanagement:

ToBenefittheBusiness&itsCustomers,AssociatesandOwners

HowwellwearemeetingtheCustomersrequirementsCriticaltoQuality