Implementing Six Sigma at Starwood Resorts: A Case Analysis

Introduction

Implementing Six Sigma programs is a strategic undertaking that demands significant

time and commitment from an organization. This paper analyzes the case study "Process

Performance at Starwood Resorts" to assess the successful implementation of Six Sigma

principles through the redesign of the Sheraton Service Promise program. The paper will

critically evaluate how Starwood Resorts addressed various implementation points such as top-

down commitment, measurement systems, tough goal setting, education, communication, and

customer priorities. Additionally, the benefits of the new Sheraton Service Promise process in

avoiding the four costs of poor performance and quality will be explored. Furthermore, the paper

will examine why some organizations may be reluctant to adopt a formalized Six Sigma

methodology and propose alternative approaches that Starwood or its competitors could consider

to achieve quality improvement and operational excellence.

Implementation Points Addressed at Starwood Resorts

Starwood Resorts showcased an exemplary commitment to implementing Six Sigma

programs, successfully addressing several crucial implementation points. The organization

demonstrated top-down commitment by involving senior management and executives in driving

the program's adoption (Kumar & Antony, 2008). This commitment ensured the allocation of

necessary resources and support for the success of Six Sigma initiatives.

Moreover, Starwood effectively utilized measurement systems to track progress and

performance accurately. Incorporating key performance indicators (KPIs) and data analytics
enabled the identification of areas for improvement and ensured alignment with organizational

goals (Iqbal & Yadav, 2017).

Additionally, the organization set tough and measurable goals for service improvement,

aligning them with customer priorities (Smith & Blakeslee, 2015). These goals provided clear

direction for employees, fostering a culture of continuous improvement and ensuring a customer-

centric approach.

Furthermore, Starwood prioritized education and communication throughout the

organization, empowering employees with the necessary knowledge and skills to embrace Six

Sigma principles (Pande et al., 2014). Effective communication played a vital role in creating

awareness and driving the implementation process.

The Benefits of the Sheraton Service Promise Process

The new Sheraton Service Promise process holds the potential to help Starwood Resorts

avoid the four costs associated with poor performance and quality. Firstly, by implementing Six

Sigma practices, Starwood can significantly reduce internal failure costs. Through proactive

identification and rectification of service deficiencies, the organization minimizes rework and

operational inefficiencies, leading to substantial cost savings (Flynn et al., 2010).

Secondly, the process contributes to external failure cost avoidance by enhancing

customer satisfaction and loyalty (Raja & Nagasubramani, 2012). Satisfied customers are more

likely to become repeat customers, generating increased revenue and positive word-of-mouth

recommendations, thereby improving the brand's reputation and financial performance.

 Thirdly, the Sheraton Service Promise fosters continuous improvement, reducing the cost

of appraisal (Chakrabortty & Mukherjee, 2013). By consistently monitoring performance

metrics, Starwood can proactively identify and address potential issues, ensuring adherence to

quality standards and minimizing costly errors.

Finally, the new process mitigates the cost of prevention by establishing a systematic

approach to service delivery (Chiarini, 2015). Adherence to Six Sigma principles empowers

employees to identify and address service gaps, ensuring higher levels of service excellence and

reducing the need for costly corrections.

Reluctance to Adopt a Formalized Six Sigma Methodology

While Starwood Resorts embraced a dedicated Six Sigma program for quality

improvement, other organizations might be reluctant to follow this formalized methodology due

to various reasons. Firstly, implementing Six Sigma demands a considerable investment of time,

resources, and training, which smaller organizations or those with budget constraints may

perceive as financially burdensome (Goh, 2012).

Secondly, some organizations may already have established quality improvement

methodologies in place, leading them to believe that their current approach is adequate.

Switching to Six Sigma could be viewed as disruptive and unnecessary, potentially resulting in

resistance to change (Mitra & Gupta, 2016).

Furthermore, the statistical and data-driven nature of Six Sigma might be intimidating for

certain organizations, particularly in service-oriented industries like hospitality. This complexity

may deter them from embracing a formalized methodology (Hoerl & Snee, 2012).
 Alternative approaches that Starwood or its competitors could consider include Lean Six

Sigma, which focuses on eliminating waste and improving process flow, or Total Quality

Management (TQM), which emphasizes continuous improvement through employee

involvement and customer focus (Kumar et al., 2013).

Conclusion

The successful implementation of Six Sigma principles at Starwood Resorts through the

Sheraton Service Promise program exemplifies the organization's commitment to process

improvement and customer satisfaction. By effectively addressing key implementation points,

Starwood laid the foundation for sustained success. The new Sheraton Service Promise process is

expected to help Starwood avoid the costs of poor performance and quality, benefiting the

organization and its stakeholders. Despite Starwood's success, reluctance to adopt formalized Six

Sigma methodologies may exist among other organizations due to factors such as financial

constraints, existing methodologies, and complexity. Considering alternative approaches like

Lean Six Sigma or Total Quality Management can be crucial for organizations to achieve

operational excellence and maintain a competitive edge in the hospitality industry.

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