Why Six Sigma @ Starwood
We Think We’re Different !
Today, if 2.5? (84% yield) then 10 dissatisfied customers every day, every property!
Why Six Sigma
Complex, multi-step process
Starwood = 25 Million Guests Annually
90%
Wide variability of performance to customer expectations in core processes across business: Major opportunity Major risk No common method for sustaining, leveraging and transferring innovation across Starwood Lack of robust processes to sustain above average EBITDA growth rates: Internal view that Starwood doesn’t systematically support collaboration, process improvement, people development, and best practice sharing.
“Case for Change”
The Case for Change:Guest Satisfaction - 25 Million Guests
Global GSI Composite
“Highly Satisfied” = 3 - 6 x more stays vs. “satisfied”
Opportunity
Satisfied customers = $2bn+ Revenue
Billions of revenue from increased satisfaction
“Dissatisfied customers” tell 8 - 10 people...
… “internet” allows dissatisfied customers to broadcast to thousands of people
20,250,000 people aware of dissatisfaction
Billions of potentially negative impressions Zagats Expedia Travelocity Epinions
Threat
If not “highly satisfied”, then customers defect for price or location.
12,500,000 “at risk” customers
Provide Customers Compelling Reason To Return