During the last years, quality and consistent service experience has become crucial factor in the hospitality industry; shareholders invest only in reliable products, customers become more demanding and evaluate the received services more critically and the employees drive for training and development. Continuously change and rethinking is required to keep track.
The author will analyze the change strategies used by Starwood Hotels & Resorts to launch the quality management tool Six Sigma in order to reduce the amount of bad service encounters and align the organization into one direction. The 5-P model was chosen, as it gives a simple and logical approach to the purpose for change, priorities during the implementations, involved people, change process as well as the proof of the change outcome.
The analysis shows, that the successful top – down transformational change approach by Starwood Hotels & Resorts Executives led to short – term financial benefits and increased guest satisfaction and employee motivation in the long run.
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: CHANGE ANALYSIS
2.1 PRESSURE FOR CHANGE
2.2 KEY ROLES FOR CHANGE
2.3 5- P MODEL OF LEADING CHANGE
2.3.1 PURPOSE
2.3.2 PRIORITIES
2.3.3 PEOPLE
2.3.4 PROCESS
2.3.5 PROOF
2.4 SUMMARY
CHAPTER 3: CONCLUSION AND RECOMMENDATIONS
CHAPTER 4: BIBLIOGRAPHY
CHAPTER 5: APPENDICES
A. Brand portfolio SHR (in 2005)
B. Innovation chart
Objectives and Topics
The primary goal of this case study is to analyze the strategic implementation of Six Sigma within Starwood Hotels & Resorts starting in 2001. The work examines how management utilized specific change frameworks to align organizational processes, reduce service failures, and improve long-term financial performance and guest satisfaction.
- Analysis of change management strategies within the global hospitality industry.
- Application of the 5-P model (Purpose, Priorities, People, Process, Proof) to Six Sigma.
- Evaluation of top-down leadership and its impact on organizational transformation.
- Examination of the challenges associated with implementing quality management tools.
- Assessment of the correlation between service quality improvements and financial outcomes.
Excerpt from the book
2.3.1 PURPOSE
Effective change managers identify a purpose, which is “a goal, vision, or compelling problem” that needs to be addressed in the course of a change effort (Kotter, 1996, p. 7). Denning (2005) underlines, that for change implementations the targeted outcome needs to be in mind and how the organisation will look when the change is completed.
The following statement by Sternlicht shares the vision of the Six Sigma launch and the targeted outcome, to increasing guest satisfaction in the long run and align the cooperation into one direction in order to increase Type 1 benefit; cost reduction and revenue increase (hospitality.net, 2001):
Six Sigma is one of the most important strategic initiatives since the formation of our company. This […] effort encompassing thousands of our associates. Its successful implementation will sustain and build new momentum, strengthen our global brands, enhance our ability to share best practices globally, speed the adoption of new technologies, prepare us for the challenges of constant change, provide critical focus on the customer and, over time, help deliver a dramatic improvement in the bottom line. Starwood and the owners of the properties we manage, are uniquely positioned to benefit from this effort.
Summary of Chapters
CHAPTER 1: INTRODUCTION: This chapter introduces the context of organizational change and provides an overview of Starwood Hotels & Resorts as a leading entity in the global hospitality market.
CHAPTER 2: CHANGE ANALYSIS: This section utilizes the 5-P model to analyze the structured implementation of Six Sigma, examining the pressure for change, key roles, and the strategic process of the transition.
CHAPTER 3: CONCLUSION AND RECOMMENDATIONS: This final chapter synthesizes the outcomes of the Six Sigma initiative, confirming the success of the strategy in improving financial results and service quality despite initial employee resistance.
Keywords
Starwood Hotels & Resorts, Six Sigma, Visionary Leadership, Change Management, Hospitality Industry, 5-P Model, Organizational Transformation, Quality Management, Guest Satisfaction, Process Improvement, Business Strategy, Service Consistency, Corporate Innovation, Employee Development, Financial Performance.
Frequently Asked Questions
What is the primary focus of this study?
The study examines the introduction and execution of the Six Sigma quality management program within Starwood Hotels & Resorts to address service consistency and operational efficiency.
Which theoretical framework is applied to analyze the change?
The author employs the "5-P model," which breaks the change process down into Purpose, Priorities, People, Process, and Proof.
What was the main research objective?
The objective was to analyze the change strategies used by the company to align its global organization and mitigate high rates of service failure.
What research methodology was used?
The research is a case study approach, utilizing secondary literature, internal company documents, and established change management theories to evaluate Starwood's performance.
What were the major findings regarding the Six Sigma implementation?
The implementation was considered successful, leading to measurable financial gains, a 10% reduction in guest complaints, and improved employee retention through training.
Which primary stakeholders are identified in the paper?
The study focuses on the impact of the change on ownership/management, the hotel staff, and the end customers.
Did employees embrace the change immediately?
No, there was initial resistance due to concerns about job security, skill requirements, and a perceived lack of information flow during the transition.
How does the paper define the "decree approach" used by Starwood?
It refers to a top-down implementation strategy where executive management makes the key decisions, which was considered appropriate for the initial, complex roll-out of Six Sigma.
- Quote paper
- William Gemkow (Author), 2010, A Case Study on the Implementation of Six Sigma within Starwood Hotels & Resorts, Munich, GRIN Verlag, https://www.grin.com/document/167854
