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1、Why Six Sigma StarwoodWe Think Were Different !13246578910Today, if 2.5 (84% yield) then 10 dissatisfied customers every day, every property!Why Six SigmaComplex, multi-step processStarwood = 25 Million Guests AnnuallyIf 99%, then 90% yield 9 dissatisfied per property every dayIf 99.9997% then, 99.9
2、97% yield 10 dissatisfied per property every year99% x99% x99% x99% x99% x99% x99% x 99% x 99% x99% =90%Wide variability of performance to customer expectations in core processes across business: Major opportunity Major riskNo common method for sustaining, leveraging and transferring innovation acro
3、ss Starwood Lack of robust processes to sustain above average EBITDA growth rates: Internal view that Starwood doesnt systematically support collaboration, process improvement, people development, and best practice sharing.“Case for Change”The Case for Change:Guest Satisfaction - 25 Million GuestsGl
4、obal GSI Composite“Highly Satisfied” = 3 - 6 xmore staysvs. “satisfied”OpportunitySatisfied customers= $2bn+ RevenueBillions of revenue from increased satisfaction“Dissatisfied customers” tell 8 - 10 people. “internet” allows dissatisfied customers to broadcast to thousands of people20,250,000 peopl
5、e aware of dissatisfactionBillions of potentially negative impressions Zagats Expedia Travelocity EThreatSatisfied41%Highly Satisfied50%Dissatis.9%If not “highly satisfied”, then customers defect for price or location.12,500,000 “at risk” customersProvide Customers Compelling Reason To ReturnWhat Is
6、 Six Sigma?You listen to the customer. . You get the facts . . .You eliminate non-value added work . . .You give the customer what she wants consistently !Six Sigma: Whats not to like? The FoundationSix Sigma is -Voice of the Customer - Measure: - Goal:-System of management:To Benefit the Business &
7、 its Customers, Associates and Owners How well we are meeting the Customers requirementsCritical to Quality MeasuresDefine the capability of a processImprovement that reaches near-perfectionAchieve lasting business leadership and top performanceCustomer is any person or organizationthat receives a p
8、roduct or service (Output) from our work activities (Process)Process is Series of Activities that: Take Inputs, Adds Value, Produces OutputSix Sigma: Process FocusedSix Sigma Approach & Projects Six Sigma SequenceSix Sigma Sequence Generate Generate Project Project IdeasIdeasTransfer Transfer “Best
9、“Best Practices”Practices”Select Select ProjectsProjectsDo Do ProjectsProjectsEveryone including: customers (Internal & External)Even VendorsSix Sigma CouncilPropertyAreaDivisionalDMAIC Projects:BB & TeamQuick HitsProcess ownerDesignate best practice Six Sigma Council (Division, Global)iDMAIC“Import
10、” projectsProcess ownerSix Sigma: What It Is Not! Statistics, statistics and more statistics . . . Numbers of projects . . . The only way we can change & improve . . . A “magic potion” to solve everything . . . Something DONE TO the business by specialists A substitute for sound business strategy .
11、. .Six Sigma RolesWhat is a Black Belt?What is a Master Black Belt?What is your role?Six Sigma Roles: Black Belts1.Work with property leadership to identify opportunities 2.Mobilize the team members and others in the property3.Coach/train team members in Six Sigma methods “just-in-time”4.Identify im
12、plementation success barriers & work with others to overcome5.Recommend & Pilot with the team innovative business process improvements6.Achieve and capture measurable financial & guest loyalty results; complete 3 to 8 projects annually, depending on size, complexity & resourcesBB Does the Work & Dri
13、ves the team !Responsibility:Responsibility:Profile:Profile:1.“A+” talent; your associate who you can least afford to lose!2.Analytical “horsepower”, intellectual curiosity & problem solving skills3.Leadership & influence skills4.Future business leadersSix Sigma Roles: Master Black Belt Support, cha
14、llenge & guideSupport, challenge & guide project selectionproject selection through the Six Sigma through the Six Sigma Council (e.g., what projects Council (e.g., what projects shouldshould property work on). property work on). Leadership, direction, guidance & support Leadership, direction, guidan
15、ce & support to AMD, VPs & GMs to AMD, VPs & GMs relating to Six Sigma relating to Six Sigma Coach & consultCoach & consult to Black Belts, & to Black Belts, & apply Six Sigmaapply Six Sigma methods in area of methods in area of responsibility (area, division, or corporate)responsibility (area, divi
16、sion, or corporate) Analytical “horsepowerAnalytical “horsepower”, intellectual curiosity & problem solving skills”, intellectual curiosity & problem solving skills Ensure quality & robustnessEnsure quality & robustness of project integrity & team solutions of project integrity & team solutions Driv
17、e Drive innovation transferinnovation transfer; prevent “reinventing the wheel”; prevent “reinventing the wheel” Achieve measurable Achieve measurable financial and customer loyalty financial and customer loyalty resultsresults: : complete complete approximately 15 to 30 approximately 15 to 30 proje
18、ctsprojects, depending on size, complexity and , depending on size, complexity and resources (approximately $5 -$10MM annually)resources (approximately $5 -$10MM annually)“Portfolio Manager”Training & ToolsBlack BeltTraining Leading TeamsLeading Teams DMAIC 1DMAIC 1 DMAIC 2DMAIC 2 Training ProjectTr
19、aining ProjectSoftware & Intranet ToolsE:TOOLE:TOOLPower PointMini TabExcelVisio & ProjectBlack Belt Hiring Assessment Black Belt Hiring Assessment ToolsToolsBehavioral InterviewsBehavioral InterviewsComputer Skills assessmentComputer Skills assessmentComprehension & Numerical Comprehension & Numeri
20、cal RelationshipsRelationshipsOther Important Six Sigma RolesProject SponsorsProject Sponsors People (many times leadership) within the existing People (many times leadership) within the existing organization most closely associated with a project. organization most closely associated with a project
21、. They are typically the ones who will gain or lose the They are typically the ones who will gain or lose the most from the projects success or failuremost from the projects success or failureProcess OwnersProcess Owners People responsible for on-going post-People responsible for on-going post-imple
22、mentation support of process implementation support of process changes/improvementschanges/improvements Must work closely with Project Sponsor and/or Must work closely with Project Sponsor and/or Black Belt throughout projectBlack Belt throughout projectImprovement Team MembersImprovement Team Membe
23、rs Participate in all steps of defining and implementing Participate in all steps of defining and implementing projectsprojects They are the subject matter expertsThey are the subject matter expertsSix Sigma APD RolloutAPD TimetableStaff MBBsStaff MBBsPreliminary timetable to implement 1Q03 SepOctNo
24、vDecJanFebAprJulAugMarSelect BBsSelect BBsMBB & BB “Wave 1” training & training projects$Property council training (SSC) 3 to 4 Properties perFirst BB projects startOwner “road shows”Design APD architecture & rolloutGM training (LSS)BB “Wave 2” training & training projectsFirst “Quick Hits”2$12Prope
25、rty “billing” iDMAICNov 02BeyondHR ASSESSMENT TOOL1$MBBs Start Jan 1APD Six Sigma Summary45+ full-time resources, globally10,000 training daysProjects600 + DMAIC, Transfer & QH projects into Control3 to 5 Year GoalsGuests : Exceed expectations with less variabilityOwners : Substantial Financial Bene
26、fitAssociates : Tools to cost effectively transfer innovation & improve core processes2003 Targets: At least Full Breakeven$600,000 +BBs , MBBs etc“Black Belt” (40-45 +/-): Full-time leadership & execution of property, area, or division-level projectsAssociates: Work on project teams“Master Black Be
27、lt”(3-4): Support AMDs via diagnostics, manage the project portfolio, and coach BBs within a geographyDivision Management,Area VP, GM:Project, process and business resultsDivision Six Sigma Leader:Driving the Six Sigma initiative within the divisionDivision Six Sigma Analyst (1):Financial tracking,
28、reporting & analysis of projects and resultsKey Role AccountabilityFTE = 45 +/-APD Six Sigma OrganizationEVP Six Sigma10 BBMBB #110 BBMBB #2 10 BBMBB #3VP Six Sigma & MBB IndonesiaSix Sigma LeadershipMBB #4 10 BBVERY PRELIMINARYDivision Six Sigma AnalystThe above could also be The above could also b
29、e consideration for the way Area consideration for the way Area Councils are structured if it fits Councils are structured if it fits within the strategic framework & within the strategic framework & organization of the divisionorganization of the divisionTrainingProject ListBlack Belt & Property Tr
30、aining Cycle1-2 Months agoLSSOverview of Six Sigma tools and SSC processPre-work(GM, BB, ExComm)SSC3 day courseDMAIC 1Training projectDMAIC 2General Manager & Property Training SSC Workshop Simulation PDF review / critique Council Meeting Action Plans1 Day GM-led session3 Day Facilitator led Trainin
31、g event$BB Project #1BB Project #2TodayBrainstormingPrioritizationSelection of 3-5 project ideasPDF assignmentPDFPDFRevised PDFsPDFPDFSSC4x / year$1-2 weeksPDFPDFPDFBlack Belt Training TrackSix Sigma Training Investment10,000+ Days of TrainingSix Sigma Training Deployment iDMAIC Training is intended
32、 for all on Property Managers and will be done thru the Development Center on line in Starwood OneDetailed description of the terms used can be found hereGeneral 6 Sigma InformationSix Sigma Information1. E TOOL2. INNOVATION TRANSFER3. LESSONS LEARNED4. CURRENT GLOBAL, DIVISIONAL & CORPORATE PROJECT
33、S5. THE DMAIC PROCESS1) The E Tool1.Documents Projects2.Toll Gates & Tracks Project Progress3.Records our Financials4.Transfers Best Practices 5.Knowledge Warehouse Accessible Globally3 0 02 0 01 0 001 0 08 06 04 02 00B A D C E FBAr=.7Cause BEffectr=.5Cause AEffectDefectsSigma2 4 6Process BaselineDe
34、fectsSigma2 4 6Process EntitlementProcess RedesignS I Process O C FriendlyResponseSpeedCTQVoice of the CustomerProject CharterReduce cycle time and variability of Check-In.Choice 3 Choice 2Choice 1SolutionsDecision Matrix CriteriaImplementationActivitiesDefineMeasureAnalyzeImproveControlDMAICProcess
35、 Improvement Methodology Project Search CriteriaProjects by Master Black Belt or a variety of other search methodsA Projects P&L Summary Monthly ViewProject Financial Benefit SummaryP&L Summary, Total, Property, Project2) Innovation TransferThe Role all of our Associates will play in changing the cu
36、lture and executing the benefits- People trained, processes mapped & measured- “Best Practice” innovations transfer- Dashboards in place- Clear sigma improvement against customer “CTQs”.- Dramatic process improvement against stretch targets to “CTQs” - Core processes redesigned- Six Sigma delivers m
37、aterial net income. - The way we run the business, day to day.Multi-Year Change Program:Deliver Compelling Guest Satisfaction2-3s s20012002-32004-6What Our “Roadmap” Looks Like- Program launched & right resources allocated- Organization believes were serious - Projects launched & improvement tracked
38、;- Great talent: BBs/MBBs- Delivers to the P+L3-4s s4-5s sInnovation Transferprovides us the vehicle to get all Management Teams trained on the importation of Best Practice ProjectsInnovation Transfer Creates Strategic AdvantageTactical Advantage2001-2: Project BenefitsProjects deliver value at the
39、property, for the property:Projects improve property processesStrategic Advantage2002-3+ : Innovation TransferProjects deliver value & improve Starwood-wide processesInnovations rapidly transferred to all applicable Starwood properties:Innovation TransferSPEEDLess Investment (Dont reinvent the wheel
40、)Less Risk (Do what works somewhere else)Faster Implementation faster benefitsFaster recovery from errors - experimentationR O I3 Years 6 MonthsInnovation TransferAs of 25 June 2002, 8 weeks since launch . . .8 weeks since launch195 Transfer Projects in ProcessiDMAIC StatisticsModule 4 Completion (7
41、 2 02)Six Sigma: What it Takes Results = Quality (of solution) X AcceptanceRQAGreat Solutions Without Buy-in Get You Nothing!Drive Changes That Make A DifferenceFor the Guest &To The Business 4) Corporate, Divisional & Global ProjectsBuilding the Six Sigma Culture in Asia PacificAllow Six Sigma to w
42、eave the fabric of its own culture as it relates to the Asia Pacific Region.Lessons learned will be importantbut more so to guide us and anticipate previous shortcomings.1st and foremost a clear understanding of each regions nuances, personalities, cultures, Awareness of Brands & varied customer exp
43、ectations,Financial & Ownership expectations understanding, involvement and balance -target projects that manage to those expectationsTo drive direction towards meaningful projects -based on each regions needsPassion about this stuff-can bring change to the way we treat our customers InvolvementEarl
44、y SuccessesHiring Great peopleHands on involvementShortening the learning curveBuild on our strengths and share our successes as a DivisionMinimize some of the shortcomings of the original roll-outsBorrow from best practices in NAD, LAD & EuropeAbility to build relationships, coalitions, and people working together to accomplish the same goalWill clearly rely on the people ( AMD/VPs, GMS. & BB) to help clarify and provide the direction as we develop our strategies & direction.同学们同学们来学校和回家的路上要注意安全来学校和回家的路上要注意安全同学们同学们来学校和回家的路上要注意安全来学校和回家的路上要注意安全
