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Implementation of Knowledge Management in Starwood

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Yudha Satya Perdana
Yudha Satya Perdana

It is about how starwood capitalize knowledge management thru six sigma. This paper has been presented in Quality in Research Seminar (UI)

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Six Sigma e-tools: An Overview of Knowledge Management Application for Improvement Activities in Hospitality Industry Yudha Satya Perdana
Abstract • Six Sigma has been developed into a practical management system for continuous business improvement. • In 2001, Starwood became the first hospitality company to embrace Six Sigma and began to develop a knowledge management system. Six Sigma e-Tools Knowledge Management System (SSeKMS) was initiated as an integrated systematic approach in managing all of information assets, including database, documents, as well as expertise and experience for improvement initiatives (Six Sigma Project) held by 1,081 hotel chains world wide • SSeKMS enables each hotel property to identify improvement opportunities, develops innovative customer focused solutions, track the bottom-line result and transfer those innovations rapidly. This paper aims to give an overview of knowledge Management System implementation which supports the successive of Six Sigma adoption in hospitality industry
Introduction • In recent days the consumers is no longer in the passive market where goods or services are offered at the exact face value. • The developments of recent technology have support them in providing information about market and its competition. This has initiated new and radical changes in the business world. • The ability to improve and the ability to learn are the key drivers for a company to survive in market competition • Many organization already know the importance of process improvement and learning organization and try to implement it, but the result is not essential for their company. The reasons are: Lack of understanding on the level of maturity, Process improvement not link to the strategic plan and the criteria for success not establish, Inappropriate resource allocation, Lack of Coordination throughout the organization, Lack of Data Management
Process Improvement and Organization Learning Process Improvement Organization Learning Reflection Perform Enhance Skill • Common aspirations • Looking for better ways • Forward looking • Basic team building • Communication • Creativity/ innovation • Knowledge Improved process • Update documentation • Knowledge management • Process testing • Efficiency • Effectiveness • Other performance measure
Six Sigma & Knowledge Management • Six Sigma provides set of tools, proven methodology, and management system to boost profitability, increase market share and improve customer satisfaction. As a result of those, Six Sigma eventually increases the company’s competitiveness • Knowledge management provides strategy of putting tacit and explicit knowledge into action by creating context, an infrastructure, and learning cycles that enable people to find and use the collective knowledge of the enterprises • Knowledge management and Six Sigma share a notable distinction in a corporate universe full of change initiatives and improvement philosophies. These two approaches have been integrated into regular operations at leading companies to guide and maintain the learning cultures within organizations
Company Info • Starwood is the world’s largest hotel and leisure (1,081 hotels) . Starwood brand include: St. Regis, Sheraton, Luxury Collection, Le Meridien, W, Aloft, Element, Bliss, Westin, and Four Points • Before established Six Sigma in 2001, which was noted as the first hospitality company to embrace Six Sigma, Starwood already has SIS and SCE as a management improvement system. By Six Sigma, SIS and SCE have been enhanced as management system that enables associates to develop innovative customer focused solutions and transfer those innovations rapidly across an organization which known as the first hosp • Starwood has seven divisions: Asia Pacific, Latin America, North America, Europe & Middle East (EAME), SVO, Franchise, and Corporate. Each division's Six Sigma organization reports to divisional leadership and is aligned with the division's goals and priorities
The Milestone 2001 20052004 2006 200720032002
The Organization Structure • Black Belt assigned to a number of Starwood properties, who is part of a larger SIXSIGMA project team. Black Belts are coached by a Master Black Belt, who has regional responsibility. • Each property has several Green Belts with primary role to take on the extra responsibility to drive improvements that positively impact their business. • At each property, a SIXSIGMA Council meets regularly to select and monitor projects. • Other leadership roles include area and division management, who are responsible for approving projects, sharing best practices, and coaching Master Black Belts.
DMAIC QUICK HIT BEST PRACTICE InnovationInnovation TransferTransfer Innovation Transfer Process Projects that follow the DMAIC methodology led by a Black Belt; will generally have a duration of 3-4 months and can cross functional boundaries. Transfer project that follow iDMAIC to ensure consistent and rapid transfer of innovation throughout Starwood. Best Practices project is identified as a transfer project when it has potential value to many other properties. Quick Hits are small projects that can be quickly implemented and can be completed within the boundaries of a single function or department. Quick Hits follow DMAIC method, but are not subject to as many tollgate reviews.
Six Sigma Best Practice
Six Sigma e-tool The Six Sigma eTool application is a web-enabled, global repository of Six Sigma projects. It is focused on data recording and houses project information from the initial project proposal through the completed project. The eTool improves Six Sigma performance assessment, knowledge capture, best practice transfer and senior leadership reporting. Providing Knowledge management
Six Sigma e-Tools Knowledge Management System • Six Sigma e-Tool for Project Reporting and Tracking . Six Sigma e-Tool is a robust warehousing capability houses project information from the initial through the completed project. The format of the Six Sigma reports and document are standardized and regulated for projects progress and tracking • Six Sigma e-Tool for Financial Reporting and Tracking. Six Sigma e-Tool provides financial report for leadership council. The benefit from projects can be tracked and validated. Financial benefit for Quick Hit is recorded for 12 months; DMAIC and i-DMAIC are recorded for 18 months. In the e-Tool, • Six Sigma e-Tool for Sharing Knowledge. the implementation of Six Sigma e- Tool knowledge management system is to speed up process learning. Different with DMAIC and Quick Hit project which starts with problem or opportunity and focuses on developing and implementing a solution, a project transfer (i-DMAIC) stars with a known solution and focuses on implementing that solution to address a problem that property has in common with the exporting property
Conclusions • Six Sigma is a proven management system for process improvement. On the other hand, Knowledge Management (KM) is a modern approach that deals with the greatest capital of organization. • Six Sigma achievements are also based on proper knowledge and its flow. • As a systematic approach to managing knowledge and process improvement activities with the aid of an information system in Starwood, Six Sigma e-Tool knowledge management system has been strongly emphasized and promoted throughout hotel chain. • Six sigma e-Tools Knowledge Management System has played important role in support growth, profitability and powerful tool to speed up organization learning process to become market leader

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Implementation of Knowledge Management in Starwood

  • 1. Six Sigma e-tools: An Overview of Knowledge Management Application for Improvement Activities in Hospitality Industry Yudha Satya Perdana
  • 2. Abstract • Six Sigma has been developed into a practical management system for continuous business improvement. • In 2001, Starwood became the first hospitality company to embrace Six Sigma and began to develop a knowledge management system. Six Sigma e-Tools Knowledge Management System (SSeKMS) was initiated as an integrated systematic approach in managing all of information assets, including database, documents, as well as expertise and experience for improvement initiatives (Six Sigma Project) held by 1,081 hotel chains world wide • SSeKMS enables each hotel property to identify improvement opportunities, develops innovative customer focused solutions, track the bottom-line result and transfer those innovations rapidly. This paper aims to give an overview of knowledge Management System implementation which supports the successive of Six Sigma adoption in hospitality industry
  • 3. Introduction • In recent days the consumers is no longer in the passive market where goods or services are offered at the exact face value. • The developments of recent technology have support them in providing information about market and its competition. This has initiated new and radical changes in the business world. • The ability to improve and the ability to learn are the key drivers for a company to survive in market competition • Many organization already know the importance of process improvement and learning organization and try to implement it, but the result is not essential for their company. The reasons are: Lack of understanding on the level of maturity, Process improvement not link to the strategic plan and the criteria for success not establish, Inappropriate resource allocation, Lack of Coordination throughout the organization, Lack of Data Management
  • 4. Process Improvement and Organization Learning Process Improvement Organization Learning Reflection Perform Enhance Skill • Common aspirations • Looking for better ways • Forward looking • Basic team building • Communication • Creativity/ innovation • Knowledge Improved process • Update documentation • Knowledge management • Process testing • Efficiency • Effectiveness • Other performance measure
  • 5. Six Sigma & Knowledge Management • Six Sigma provides set of tools, proven methodology, and management system to boost profitability, increase market share and improve customer satisfaction. As a result of those, Six Sigma eventually increases the company’s competitiveness • Knowledge management provides strategy of putting tacit and explicit knowledge into action by creating context, an infrastructure, and learning cycles that enable people to find and use the collective knowledge of the enterprises • Knowledge management and Six Sigma share a notable distinction in a corporate universe full of change initiatives and improvement philosophies. These two approaches have been integrated into regular operations at leading companies to guide and maintain the learning cultures within organizations
  • 6. Company Info • Starwood is the world’s largest hotel and leisure (1,081 hotels) . Starwood brand include: St. Regis, Sheraton, Luxury Collection, Le Meridien, W, Aloft, Element, Bliss, Westin, and Four Points • Before established Six Sigma in 2001, which was noted as the first hospitality company to embrace Six Sigma, Starwood already has SIS and SCE as a management improvement system. By Six Sigma, SIS and SCE have been enhanced as management system that enables associates to develop innovative customer focused solutions and transfer those innovations rapidly across an organization which known as the first hosp • Starwood has seven divisions: Asia Pacific, Latin America, North America, Europe & Middle East (EAME), SVO, Franchise, and Corporate. Each division's Six Sigma organization reports to divisional leadership and is aligned with the division's goals and priorities
  • 7. The Milestone 2001 20052004 2006 200720032002
  • 8. The Organization Structure • Black Belt assigned to a number of Starwood properties, who is part of a larger SIXSIGMA project team. Black Belts are coached by a Master Black Belt, who has regional responsibility. • Each property has several Green Belts with primary role to take on the extra responsibility to drive improvements that positively impact their business. • At each property, a SIXSIGMA Council meets regularly to select and monitor projects. • Other leadership roles include area and division management, who are responsible for approving projects, sharing best practices, and coaching Master Black Belts.
  • 9. DMAIC QUICK HIT BEST PRACTICE InnovationInnovation TransferTransfer Innovation Transfer Process Projects that follow the DMAIC methodology led by a Black Belt; will generally have a duration of 3-4 months and can cross functional boundaries. Transfer project that follow iDMAIC to ensure consistent and rapid transfer of innovation throughout Starwood. Best Practices project is identified as a transfer project when it has potential value to many other properties. Quick Hits are small projects that can be quickly implemented and can be completed within the boundaries of a single function or department. Quick Hits follow DMAIC method, but are not subject to as many tollgate reviews.
  • 10. Six Sigma Best Practice
  • 11. Six Sigma e-tool The Six Sigma eTool application is a web-enabled, global repository of Six Sigma projects. It is focused on data recording and houses project information from the initial project proposal through the completed project. The eTool improves Six Sigma performance assessment, knowledge capture, best practice transfer and senior leadership reporting. Providing Knowledge management
  • 12. Six Sigma e-Tools Knowledge Management System • Six Sigma e-Tool for Project Reporting and Tracking . Six Sigma e-Tool is a robust warehousing capability houses project information from the initial through the completed project. The format of the Six Sigma reports and document are standardized and regulated for projects progress and tracking • Six Sigma e-Tool for Financial Reporting and Tracking. Six Sigma e-Tool provides financial report for leadership council. The benefit from projects can be tracked and validated. Financial benefit for Quick Hit is recorded for 12 months; DMAIC and i-DMAIC are recorded for 18 months. In the e-Tool, • Six Sigma e-Tool for Sharing Knowledge. the implementation of Six Sigma e- Tool knowledge management system is to speed up process learning. Different with DMAIC and Quick Hit project which starts with problem or opportunity and focuses on developing and implementing a solution, a project transfer (i-DMAIC) stars with a known solution and focuses on implementing that solution to address a problem that property has in common with the exporting property
  • 13. Conclusions • Six Sigma is a proven management system for process improvement. On the other hand, Knowledge Management (KM) is a modern approach that deals with the greatest capital of organization. • Six Sigma achievements are also based on proper knowledge and its flow. • As a systematic approach to managing knowledge and process improvement activities with the aid of an information system in Starwood, Six Sigma e-Tool knowledge management system has been strongly emphasized and promoted throughout hotel chain. • Six sigma e-Tools Knowledge Management System has played important role in support growth, profitability and powerful tool to speed up organization learning process to become market leader