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WhySixSigma@StarwoodWeThinkWe’reDifferent!13246578910Today,if2.5(84%yield)then10dissatisfiedcustomerseveryday,everyproperty!WhySixSigmaComplex,multi-stepprocessStarwood=25MillionGuestsAnnuallyIf99%,then90%yield9dissatisfiedperpropertyeverydayIf99.9997%then,99.997%yield10dissatisfiedperpropertyeveryyear99%x99%x99%x99%x99%x99%x99%x99%x99%x99%=90%•Widevariabilityofperformancetocustomerexpectationsincoreprocessesacrossbusiness:MajoropportunityMajorrisk•Nocommonmethodforsustaining,leveragingandtransferringinnovationacrossStarwood•LackofrobustprocessestosustainaboveaverageEBITDAgrowthrates:•InternalviewthatStarwooddoesn’tsystematicallysupportcollaboration,processimprovement,peopledevelopment,andbestpracticesharing.“CaseforChange”TheCaseforChange:GuestSatisfaction-25MillionGuestsGlobalGSIComposite“HighlySatisfied”=3-6xmorestaysvs.“satisfied”OpportunitySatisfiedcustomers=$2bn+RevenueBillionsofrevenuefromincreasedsatisfaction“Dissatisfiedcustomers”tell8-10people...…“internet”allowsdissatisfiedcustomerstobroadcasttothousandsofpeople20,250,000peopleawareofdissatisfactionBillionsofpotentiallynegativeimpressions•Zagats•Expedia•Travelocity•Epinions.comSatisfied41%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•HowwellwearemeetingtheCustomersrequirements•CriticaltoQualityMeasures•Definethecapabilityofaprocess•Improvementthatreachesnear-perfection•AchievelastingbusinessleadershipandtopperformanceCustomerisanypersonororganizationthatreceivesaproductorservice(Output)fromourworkactivities(Process)ProcessisSeriesofActivitiesthat:•TakeInputs,•AddsValue,•ProducesOutputSixSigma:ProcessFocusedSixSigmaApproach&ProjectsSixSigmaSequenceGenerateProjectIdeasTransfer“BestPractices”SelectProjectsDoProjectsEveryoneincluding:customers(Internal&External)EvenVendorsSixSigmaCouncilPropertyAreaDivisionalDMAICProjects:•BB&TeamQuickHits•ProcessownerDesignatebestpractice–SixSigmaCouncil(Division,Global)iDMAIC“Import”projects•ProcessownerSixSigma:WhatItIsNot!•Statistics,statisticsandmorestatistics...•Numbersofprojects...•Theonlywaywecanchange&improve...•A“magicpotion”tosolveeverything...•SomethingDONETOthebusinessbyspecialists•Asubstituteforsoundbusinessstrategy...SixSigmaRolesWhatisaBlackBelt?WhatisaMasterBlackBelt?Whatisyourrole?WHOaretheseindividualswecallMasterBlackBelts&BlackBeltsMMaasstteerrBBllaacckkBBeellttss::GGeenneerraallMMaannaaggeerroorrAArreeaaMMaannaaggiinnggDDiirreeccttoorrssLLooccaattiioonnss::BBaannggkkookk,,SSyyddnneeyy,,SShhaanngghhaaii//BBeeiijjiinngg&&SSiinnggaappoorree1.Adiversebackgroundthatcomprisesexperiencesinoperations,sales&marketing,F&Bandsupportareas—criticalforbeingabletoleadprojectsandconfirmthedataandVOCelements2.Extremelyintuitive,yetacriticalthinker3.Leader,patience,perseverance,teacher,coach4.Resourcefulandorobtainingresources5.Anabilitytoseebeyondthenumbers6.Anaptitudefordrawingrelationshipswheninterpretingdataleadingprojects7.SuccessfulatweavingthefiberintoofthisnewfabricintoourHotelsandtheirteams8.ExamplesofleadingchangeandinstillingacultureBBllaacckkBBeellttss::EExxeeccuuttiivveeCCoommmmiitttteeeeLLeevveellaannddoorrDDeeppaarrttmmeennttHHeeaaddssLLooccaattiioonnss::DDeessiiggnnaatteeddPPrrooppeerrttiieess1.Goodstudents2.Criticalthinkers3.Curious---5whys4.Spurscreativity--leadsanorganizationtogettingoutofthebox5.Resourceful6.Takenothingforgranted7.Lessonslearnedfromthepast---notinfluencedintothefuture8.Objectiveandopenminded9.Interpretinformationanddata–abilitytodrawrelationships(financial&non-financial)10.Impactthefiberoftheorganization11.Drivetheculture12.GoodListener—doyouhear13.Interpretdata14.Influential15.WorksIndependentlySixSigmaRoles:BlackBelts1.Workwithpropertyleadershiptoidentifyopportunities2.Mobilizetheteammembersandothersintheproperty3.Coach/trainteammembersinSixSigmamethods“just-in-time”4.Identifyimplementationsuccessbarriers&workwithotherstoovercome5.Recommend&Pilotwiththeteaminnovativebusinessprocessimprovements6.Achieveandcapturemeasurablefinancial&guestloyaltyresults;complete3to8projectsannually,dependingonsize,complexity&resourcesBBDoestheWork&Drivestheteam!Responsibility:Profile:1.“A+”talent;yourassociatewhoyoucanleastaffordtolose!2.Analytical“horsepower”,intellectualcuriosity&problemsolvingskills3.Leadership&influenceskills4.FuturebusinessleadersSixSigmaRoles:MasterBlackBelt•Support,challenge&guideprojectselectionthroughtheSixSigmaCouncil(e.g.,whatprojectsshouldpropertyworkon).•Leadership,direction,guidance&supporttoAMD,VP’s&GM’srelatingtoSixSigma•Coach&consulttoBlackBelts,&applySixSigmamethodsinareaofresponsibility(area,division,orcorporate)•Analytical“horsepower”,intellectualcuriosity&pro