Starwood is a large hotel and leisure company that implemented a Six Sigma quality management program. Six Sigma aims for near perfection through reducing defects. It divides employees into Champions, Black Belts, and Green Belts to lead projects. While Six Sigma risks being seen as a "creativity killer", Starwood successfully combined efficiency and creativity by starting with a culture of innovation. It now has over 150 Black Belts and 2,500 Green Belts helping employees meet goals while sustaining creativity.
2. Outline
• Introduction
• Six- Sigma Process & Working
• SWOT
• Problem and solution
• Conclusion
• Questions and Answers
3. Introduction
• Starwood is one of the world’s largest hotel and leisure
company.
• Its brands includes Four Points, Sheraton, Westin, St. Regis
and W. Hotels.
• Six Sigma aims for perfection, which increases efficiency and
reduces product defects.
• It is often described as creativity killer.
• It divide the employees into:
• Black Belts
• Green Belts
4. Six- Sigma Process and working
• Divide its employees into Champions, Black Belts and Green
Belts.
• Champions:
1. Create the vision of Six Sigma
2. Define the path to implement Six Sigma across the
organization.
3. Ask Black Belts and Green Belts many questions to ensure
that they are properly focused
5. Six-Sigma Process and
working(cont.)
• Black Belts:
1. Act as Six Sigma experts
2. Lead and direct teams in project execution
3. Coach and Mentor Green Belts
4. Ensure that the results are sustained
5. Identify potential barriers to project completion
6. Six-Sigma Process and working
(contd.)
• Green Belts
1. Function as Green Belts on a part-time basis
2. Participate on Black Belt projects as content experts
3. Lead Green Belt projects
7. SWOT
STRENGTH
• Starwood (Brand Name)
Strong Culture Of Creativity, Wide Network (5 Branches),
Largest Hotel and Leisure Company. It is a very well known
brand around the world.
• Use of Six-Sigma quality management program
Making things efficient (aim to perfection)
8. Weakness
Starwood:
Less Employee efficiency. Therefore forming of black belts
and green belts can increase the effectiveness and
efficiency.
Six-Sigma
It is called Creativity Killer in the market. They have to get
rid this tag.
9. Opportunity
• Starwood
Increase the market share by concentrating more in quality
and making customers feel easy.
• A chance to be innovative for the frequent travelers who
feels lonely.
• Customers are looking forward to its W hotel for a trendy
experience.
Six-Sigma
Can get rid of tag “Creativity Killer”.
10. Threats
• Starwood
Other Rival Companies. There is always tough competitions
so they always have to do something new to be on top
position.
• Six-Sigma
Could be christened as creativity Killer. Usage of new
management can be risky.
12. Problems and Solutions(Contd.)
• How to attract Customers?
o Starwood is known well for its creativity and innovations.
o Starwood took help of various management processes
who provide them with opportunities and suggestions.
o More and more customers are attracted towards the
leisure services provided by Starwood.
• How to be more efficient and improve quality?
13. Problems and Solutions(Contd.)
o In 2006, the Westin chain of Starwood detected that 34% of
frequent travellers feel lonely during travelling.
o It was the challenge as well as an opportunity.
o Starwood implemented Six- Sigma. Six-Sigma specialists
help hotel employees find ways to meet their goals.
• How to make sure Six Sigma does not obliterate the
creativity?
14. Problems and Solutions(Contd.)
o Starwood has the advantage that, it is known for its
creativity.
o Here, Six- Sigma played a great role, when it make a
structure of "BLACK BELTS" and "GREEN BELTS" among
Starwood employees. Black Belts were handled with the
responsibility to overseeing projects and Green Belts are to
see the details.
o Six- Sigma specialists help hotel employees find ways to
meet their goals.
15. • Starwood’s maneuver to combine Efficiency and creativity was delicate
one, and Starwood has been successful because it started with culture of
creativity.
• Since the project is started, there are now 150 Black Belts and 2500 Green
Belts. Key To their Success: Handling like partners instead of workers.
• “...this Six Sigma journey will change the paradigm from fixing products
so they are perfect to fixing processes that they produce nothing but
perfection, or close to it.”-Jack Welchso
• Starwood implemented change very swiftly. It gives the impression of
White Water Metaphor.
16. Questions
• Q-1: Do some research on Six Sigma. Explain what it is. Do you
think its reputation as a “creativity killer” is justified? Why or
why not?
• Q-2: What does this say about what Starwood has
accomplished with its Six Sigma program? What could other
companies learn from Starwood’s experience?
• Q-3: How important do you think it is to have a culture of
creativity? If a company does not have such a culture, what
could managers do?
• Q-4: What else might Starwood do to promote creativity and
innovation?
17. Question (contd.)
• Q-5: Do you think hotel industry environment is in more Calm
Water or White-Water rapids? Explain your choice.