Scott Heintzeman - CIO
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- Janis Norman
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1 Scott Heintzeman - CIO
2 The Value of Process Thinking Achieving Process Excellence In A Highly Integrated World Systems & Functions Functional Expertise & Conventional Training Johnny Web Betty Booker Henry Hotel Joe Information Ima Reports The Guest Experience Internet And GDS Systems Worldwide Curtis-C Central Reservations System & Call Centers Hotel Property Management Systems Customer- KARE & Information Repository Systems Production Reports Yield Mgt. Development Analysis Integration Strategy & Process To Deliver a Seamless Guest Experience Marketing Analysis 2
3 CONTROL: Help make sure the problem stays fixed and that the new methods can be further improved over time. IMPROVE: Develop, implement, and evaluate solutions targeted at the verified cause. 3 - ANALYZE 1 Process Mapping (Illustrate the as is Process) 2 Cause and Effect Fishbone Diagram (The 5 Whys) 3 Analysis of Base Line Data 1 Pareto Chart ANALYZE: 2 Histogram 3 Scatter Plots Develop theories of root 4 Box Plot causes, confirm the theories with data, and finally identify the root cause(s) of the problem. The Six Sigma DMAIC Model 4 - IMPROVE 1.Generating & Weighting Solutions (Brainstorming) 2.Cost / Benefit Analysis of our Best Options (with Assumptions) 3.Create a Should Be Process Map with Best Option 4.Risk Analysis (Failure Modes Effect Analysis) for new process 5.Pilot Solutions 6.Implement the New Process A Way to do Great Work Everyday 5 - CONTROL 1. Monitor the New Process 2. Document Control Plan 3. Documentation 1 - DEFINE 1 Project Charter 2 Stakeholder Analysis 3 SIPOC (Suppliers, Inputs, Process, Outputs, & Customers 4 VOC - Voice of the customer 5 CTQ -Critical to Quality Requirements 2 - MEASURE 1 Baseline Data Collection Plan 2 Baseline Data Display 1 Frequency Plot 2 Run Chart 3 Pareto Chart 3 Calculate Process Sigma DEFINE: boundaries based on the organization s business goals, customer needs, and the process that needs to be improved to get to a higher sigma level. MEASURE: Pinpoint the location or source of problems as precisely as possible by building a factual understanding of existing process conditions and problems. Establish a baseline capability level. Revised 09/27/02
4 The Balanced ScoreCard Evolution 1) Financial Perspective 2) Customer Perspective 3) Process Perspective 4) Learning & Growing
5 Why is the Balanced Score Card So Powerful? Harvard Business School 1990 s Robert Kaplan David Norton Intended to Measure Key Results New Insights 10 Years & 275 Companies Later: 70-90% Failed To Implement their Strategy Successful Companies Were Effectively Measuring their Degree of Strategy Implementation The Best Measurements Were Predictive or Leading Indicators Measurement is More Important Than Strategy.
6 Mobilize Everyone for Action on the: Measures That Matter Drill Down An Example of Top Line Measures from the Balanced ScoreCard Fill The Pipeline (Net Hotel Openings) Drill Down Managed Hotels (Net Openings) Franchised Hotels (Net Openings) Prospects Applications/Deposits Signed Agreements Measures That Matter 1. Identification of Real Leading Indicators 2. Identification of Opportunities for Resource Allocation / Prioritization 3. Increase Employee Engagement: I can see that my work really does matter 4. New Six Sigma Opportunity to accomplish Measurable Improvement.
7 Business Performance Methodology The Integration of Balanced ScoreCard & Six Sigma 9/26/02 carlson companies greatwork. D Define Corporate Strategy Map M Balanced Score Card Measures Objectives Measures Goals Results Focus on Leading Indicator (Enable Layers of Scorecards) A Analysis, Evaluate & Prioritize Brain Storm Scan Listening Posts Scan Parking Lot Evaluation Alternatives Prioritization Confirm Project Champion I Launch Approved Initiatives Strategic Project I Monitor Work Teams & Resource Mgmt Team Project Team Resources $ Resources Project Plan C Closed Loop Accountability Check to ensure that the Initiative is positively effecting the intended measures The Listening Posts Revised: 11/20/02 7
8 How Does Carlson Hospitality Operationalize the Strategy? We are a Strategy Focused Organization Cause & Effect Inter-Dependencies are Confirmed & Illustrated Our 4 Level Strategy Map communicates our business Objectives Designed Around Our Core Processes Our ScoreCard monitors Measures That Matter We use Leading & Lagging Indicators We use Personalized Dashboards to enable Line of Sight to My Work We use Measurement Certification Process to keep integrity in our measures. Our Core Objectives have Specific Owners We use Carlson s Six Sigma Process Improvement Methodology Initiatives are Charted based upon impact to OIBT & Core Measures Initiatives are Monitored (On Time, On Budget, On Task) Our GreatWork = The Value of our Profit Improvement Portfolio Resources are Optimally Deployed Our Organization & Incentives are Aligned and Matrixed We Share a Declaration of Commitment We use a BPM System ( Rembrandt ) to Monitor Our Closed-Loop Process. 8
9 CARLSON HOTELS WORLDWIDE THE AMERICAS Strategy Map GROW ICC GROW OIBT Grow Revenues Grow Profit Per Customer F1 F2 F I N A N C E F3 C U S T O M E R C IT Initiatives Versonix Implemented for Cruise Rez & Ops on 11/1/03 RSSC.com Website Deployed for Cruise on 7/15/03 (Cruise) (Cruise) Expand Products & Services to Customers Build Brand Value C3 C2 New CRM Capabilities delivered via KARE DataTrust to close gaps in CRM Wheel (Defined later Cruise) (Cruise) Deliver & Leverage Customer- Centric Solutions PT1 Optimize Guest P1 Relationships (B2C) Engage Customers Engage Owners P2 & Management Companies (B2B) Generate Breakthrough Ideas C4 Implement Great Work & Quantum Leap Ideas P R O C E S S & T E C H N O L O G Y Sales Force Automation for Cruise, Hotel Sales & Hotel Development P2 ImagInn PMS interface to Curtis-C Inventory Mgt Process full system testing by end of year P2 Consistent Delivery of Products & Services PT2 The Opera PMS Beta Site is Live with 1 ½-Way Interface P2 PT3 P E O P L E Optimize P3 One Carlson & Intermediary Relationships (B2B) P4 Multi Lingual Web Site and Content Management System deployed for Radisson only PT1 Disaster Recovery Architecture is implemented for CCG & CSS (In conjunction with the Data Center Consolidation Initiative) PT3 New CRM Capabilities delivered via KARE DataTrust to close gaps in CRM Wheel (Defined later Hotels) PT1 Balanced ScoreCard and Initiative Mgt System delivered to CCG Corporate Staff by closing all gaps in our Measurement Processes (ActiveStrategy) P5 Engage Employees P5 Customer Focused Knowledge-Based Integrated Global Best in Class 9 Revised 03/03/03
10 Successful Balanced ScoreCard Implementation: Four Core Questions & Nine Steps Cause & Effect Core Questions The 4 Perspectives 4. Financial 4. For our Owners/Investors needs to be achieved, what Financial Results must we deliver? For our Business to thrive, what must our Customers see, feel, experience, receive? 3. Customers Process 2. For our Customers to be satisfied and retained, in which Processes must we excel? 1. Learning & Growing 1. For our Processes to be optimally effective, what must we be Learning and how must we be Growing? 10
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