喜达屋酒店集团Starwood六西玛格培训

whysixsigma@starwoodwethinkwe’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%=90%widevariabilityofperformancetocustomerexpectationsincoreprocessesacrossbusiness:majoropportunitymajorrisknocommonmethodforsustaining,leveragingandtransferringinnovationacrossstarwood

lackofrobustprocessestosustainaboveaverageebitdagrowthrates:

internalviewthatstarwooddoesn’tsystematicallysupportcollaboration,processimprovement,peopledevelopment,andbestpracticesharing.“caseforchange”thecaseforchange:

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”customersprovidecustomerscompellingreasontoreturnwhatissixsigma?youlistentothecustomer..yougetthefacts...youeliminatenon-valueaddedwork...yougivethecustomerwhatshewants–consistently!sixsigma:what’snottolike?thefoundationsixsigmais…voiceofthecustomer-measure:

-goal: systemofmanagement:

tobenefitthebusiness&itscustomers,associatesandowners

howwellwearemeetingthecustomersrequirementscriticaltoqualitymeasuresdefinethecapabilityofaprocessimprovementthatreachesnear-perfectionachievelastingbusinessleadershipandtopperformancecustomerisanypersonororganizationthatreceivesaproductorservice(output)fromourworkactivities(process)processisseriesofactivitiesthat:takeinputs,addsvalue,producesoutputsixsigma:processfocusedsixsigmaapproach&projectssixsigmasequence

generateprojectideastransfer“bestpractices”selectprojectsdoprojectseveryoneincluding:customers(internal&external)evenvendorssixsigmacouncilpropertyareadivisionaldmaicprojects:bb&teamquickhitsprocessownerdesignatebestpractice–sixsigmacouncil(division,global)idmaic“import”projectsprocessownersixsigma:whatitisnot!

statistics,statisticsandmorestatistics...

numbersofprojects...theonlywaywecanchange&improve...a“magicpotion”tosolveeverything...somethingdonetothebusinessbyspecialistsasubstituteforsoundbusinessstrategy...sixsigmaroleswhatisablackbelt?whatisamasterblackbelt?whatisyourrole?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: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-$10mmannually)“portfoliomanager”training&tools—blackbelttrainingleadingteamsdmaic1dmaic2trainingprojectsoftware&intranettoolse:toolpowerpointminitabexcelvisio&projectblackbelthiringassessmenttoolsbehavioralinterviewscomputerskillsassessmentcomprehension&numericalrelationshipsotherimportantsixsigmarolesprojectsponsorspeople(manytimesleadership)withintheexistingorganizationmostcloselyassociatedwithaproject.theyaretypicallytheoneswhowillgainorlosethemostfromtheproject’ssuccessorfailureprocessownerspeopleresponsibleforon-goingpost-implementationsupportofprocesschanges/improvementsmustworkcloselywithprojectsponsorand/orblackbeltthroughoutprojectimprovementteammembersparticipateinallstepsofdefiningandimplementingprojectstheyarethesubjectmatterexpertssixsigmaapdrolloutapdtimetablestaffmbbspreliminarytimetabletoimplement1q03sepoctnovdecjanfebaprjulaugmarselectbbsmbb&bb“wave1”training&trainingprojects$propertycounciltraining(ssc)3to4propertiesperfirstbbprojectsstartowner“roadshows”designapdarchitecture&rolloutgmtraining(lss)bb“wave2”training&trainingprojectsfirst“quickhits”2$12property“billing”idmaicnov02beyondhrassessmenttool1$mbb’sstartjan1apdsixsigmasummary45+full-timeresources,globally10,000trainingdaysprojects600+dmaic,transfer&qhprojectsintocontrol

3to5yeargoalsguests:exceedexpectationswithlessvariabilityowners:substantialfinancialbenefitassociates:toolstocosteffectivelytransferinnovation&improvecoreprocesses 2003targets:atleastfullbreakeven$600,000+bb’s,mbb’setc“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+/-apdsixsigmaorganizationevpsixsigma10bbmbb#110bbmbb#2

10bbmbb#3vpsixsigma&mbbindonesiasixsigmaleadershipmbb#4

10bbaus./nz/fijimalaysia,thailand,&philippineschina,hongkong&macaujapan,korea&guamverypreliminarydivisionsixsigmaanalysttheabovecouldalsobeconsiderationforthewayareacouncilsarestructuredifitfitswithinthestrategicframework&organizationofthedivisiontrainingprojectlistblackbelt&propertytrainingcycle1-2monthsagolssoverviewofsixsigmatoolsandsscprocesspre-work(gm,bb,excomm)ssc3daycoursedmaic1trainingprojectdmaic2generalmanager&propertytraining

sscworkshop

simulationpdfreview/critiquecouncilmeetingactionplans1daygm-ledsession3dayfacilitatorledtrainingevent$$$$$bbproject#1bbproject#2todaybrainstormingprioritizationselectionof3-5projectideaspdfassignmentpdfpdfrevisedpdf’spdfpdfssc4x/year$$$1-2weekspdfpdfpdfblackbelttrainingtracksixsigmatraininginvestment10,000+daysoftrainingsixsigmatrainingdeploymentidmaictrainingisintendedforallonpropertymanagersandwillbedonethruthedevelopmentcenteronlineinstarwoodonedetaileddescriptionofthetermsusedcanbefoundheregeneral6sigmainformationsixsigmainformation

etoolinnovationtransferlessonslearnedcurrentglobal,divisional&corporateprojectsthedmaicprocess1)theetooldocumentsprojectstollgates&tracksprojectprogressrecordsourfinancialstransfersbestpracticesknowledgewarehouse–accessibleglobally3002001000100806040200badcefbar=.7causebeffectr=.5causeaeffectdefectssigma246processbaselinedefectssigma246processentitlementprocessredesignsiprocessocfriendlyresponsespeedctqvoiceofthecustomerprojectcharterreducecycletimeandvariabilityofcheck-in.choice3

choice2choice1solutionsdecisionmatrixcriteriaimplementationactivitiesdefinemeasureanalyzeimprovecontroldmaicprocessimprovementmethodologythestatisticaltoolsusedtollgatechecklist–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.yesnoyesnoyesnoyesnoyesnoyesnoyesnoyesnoeverystageofthedmaicprocesswillhaveatollgatechecklisteverystagewillrequiresixcouncilandmbbreviewandapprovalprojectsearchcriteriaprojectsbymasterblackbeltoravarietyofothersearchmethodsaprojectsp&lsummarymonthlyviewprojectfinancialbenefitsummaryp&lsummary,total,property,project2)innovationtransfertheroleallofourassociateswillplayinchangingthecultureandexecutingthebenefits- 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+l3-4s4-5sinnovationtransfercreatesstrategicadvantagetacticaladvantage2001-2:projectbenefitsprojectsdelivervalueattheproperty,fortheproperty:projectsimprovepropertyprocessesstrategicadvantage2002-3+:innovationtransferprojectsdelivervalue&improvestarwood-wideprocessesinnovationsrapidlytransferredtoallapplicablestarwoodproperties:innovationtransferspeedlessinvestment(don’treinventthewheel)lessrisk(dowhatworkssomewhereelse)fasterimplementation–fasterbenefitsfasterrecoveryfromerrors-experimentationroi3years>6monthsinnovationtransferasof25june2002,8weekssincelaunch...8weekssincelaunch195transferprojectsinprocessidmaicstatisticsmodule4completion(7202)sixsigma:whatittakes

results

=quality

(ofsolution)xacceptancerqagreatsolutionswithoutbuy-ingetyounothing!3)keylessonsyear1sixsigmaasstarwoodvaluestaff“top”talentasblackbeltsleveragethesixsigmanetworkasresource–mbbs/globalteamprojectsthatmakeadifference–totheproperty...acrossthesystemprojectslinkedtoleader“big5”do“quickhits”“import”innovationcommitment&involvementclearprojectsponsorshipwithresponsibilityleadershiptestedateverylevelcouncilpartofregularmanagementcycleapplysixsigmaroles:activelyleadit!selecttherightprojectsdrivechanges

thatmakeadifference

fortheguest&

tothebusiness

4)corporate,divisional&globalprojects

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.globalstatusweekendingjune28sixsigmabenefitssnapshot2002system-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%dmaicprojectaveragevalueaveragedmaicprojectvaluebydivisionnotes: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%)aheadofmodel2001sixsigmaawardwinnerswhyarethesewinners?impact–processand$$$$wouldn’thavedonewithoutsixsigmacross-functionalandteamtoimplementneededthetools...andusedthemtransferabilitymajorcorporateprojectscorphqprojectscompleted2001outsidelegalcouncil(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:7bbsand2mbbsstarsprojectscompleted2001multiplecccconversionprojects(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:7bbsand1mbbglobalprojectsapproved12/01check-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)nadinitiativesandprojects5)thedmaicprocessdefinemeasureanalyzeimprovecontrol“dmaic”projects:consistentmethod1.whatistheprojectcharter?2.whatisthe“voiceofthecustomer”

gettherightdata......nottheeasy,availabledata.whatdoesthedatatellus?whatisthe“rootcause”?fixtheprocess“improve”“redesign”istheimprovementdeliveringresults?fivephasesofsixsigmaprojects:3002001000100806040200badcefbar=.7causebeffectr=.5causeaeffectdefectssigma246processbaselinedefectssigma246processentitlementprocessredesignsiprocessocfriendlyresponsespeedctqvoiceofthecustomerprojectcharterreducecycletimeandvariabilityofcheck-in.choice3

choice2choice1solutionsdecisionmatrixcriteriaimplementationactivitiesdefinemeasureanalyzeimprovecontroldmaicprocessimprovementmethodologytollgatechecklist–defineforourproject,wehave:1. confirmedthatourprojectisaworthwhileimprovementpriorityandissupportedbythequalitycouncil.2. beengiven(orwritten)abriefbusinesscaseexplainingthepotentialimpactofour