Increasing Quality of Service Process Evaluation and Improvement

1. Process optimization Potential Pitfalls Definition and Benefits Methods for Optimization • Lack of ownership • Failing to account for all • Increase efficiency • Increase profitability • Consistency of service • Process Evaluation • Process Mapping • Simulations Success! Increasing Quality of ServiceProcess Evaluation and Improvement Dallas, TX June 23, 2004

2. Introductions • Moderator • Chris Hartmann, HVS Technology Strategies • Panelists • Dylan Arriaza, Bacara Resort and Spa • Amitava Chatterjee, CHTP, IBM Business Consulting Services • Caroline Mace, Consultant, Currently at Mandarin Oriental Hotel Group; Director, Encore Consulting Group

3. Session Goals Process optimization Definition and Benefits Methods of Optimization Avoid Potential Pitfalls • Lack of ownership • Failing to account for all • Increase efficiency • Increase profitability • Consistency of service • Process Evaluation • Process Mapping • Simulations Success!

4. What Is Process Optimization? Process optimization Definition and Benefits Methods of Optimization Avoid Potential Pitfalls • Lack of ownership • Failing to account for all • Increase efficiency • Increase profitability • Consistency of service • Process Evaluation • Process Mapping • Simulations Success!

5. What Are Processes? Why Do They Need Improvement? • Process: A series of actions, changes, of functions bringing about a result • Improvement: To raise to a more desirable or more excellent quality or condition; make better • Why: Profits, “Variance vs. Mean”, Consistency

6. What Do Most Efforts Have In Common? • Inclusive and collaborative group efforts • Multi-disciplinary • Goal Based: Begin at high level and provided at each organizational level • Iterative process: Define, Measure, Improve, Feedback/Control • Ideally: Organization-wide

7. Benefits of Process Optimization Process optimization Avoid Potential Pitfalls Definition and Benefits Methods of Optimization • Lack of ownership • Failing to account for all • Increase efficiency • Increase profitability • Consistency of service • Process Evaluation • Process Mapping • Simulations Success!

8. Registration at Bacara Resortand Spa Getting the stakeholders involved – understanding gaps that hinder delivery Leveraging technology – implementing a measurable process Identification of the objective – A fast and efficient check-in

9. Methods of Process Optimization Process optimization Definition and Benefits Methods of Optimization Avoid Potential Pitfalls • Lack of ownership • Failing to account for all • Increase efficiency • Increase profitability • Consistency of service • Process Evaluation • Process Mapping • Simulations Success!

10. Process Evaluation • Is this really the right way to do this? “Frog in the well” or “Silo” syndrome • Close inspection of processes often reveals flaws that waste resources • Removal of flaws has payoffs: • Customer satisfaction • Increased productivity • Improved bottom line

11. Process Mapping • Needs to occur twice • Existing and Optimized process • Importance • Diagrammatic representation • Provides insight into how the procedure works • Allows collection of relevant requirements • Provides insight into touch points with other applications or work streams • Provides opportunity to make improvements before implementation

12. Process Simulation • Requires a very detailed flow chart, representing all steps (technical, paper and human) on a computer to properly analyze every step • Provides Statistical Analysis of Process Results – Compare to Actual • Allows “What if” Testing • “Stressful Conditions” • Changes to the Process • Does Not Affect Guests or Staff • Adds Support to “Gut Feel”

13. Some Methodologies • Six Sigma – Early – DMAIC – reduce variance • Lean – Eliminate “non value add” • Kaizen – Slash & Burn, Quick hits • Triz – “Theory of Invention”, 75% evolutionary, 20% outside industry, 5% truly breakthrough • TQM, Balanced Scorecard, many variants

14. Potential Pitfalls Process optimization Definition and Benefits Methods of Optimization Avoid Potential Pitfalls • Increase efficiency • Increase profitability • Consistency of service • Process Evaluation • Process Mapping • Simulations • Lack of ownership • Failing to account for all Success!

15. Potential Pitfalls To Avoid • Projects fail for several reasons • Lack of complete understanding of the existing process and its current rationale & objectives

16. Potential Pitfalls To Avoid • Projects fail for several reasons • Interviews with stakeholders fail to ask the right questions and gain an accurate picture of the true status quo – get what you inspect, not what you expect

17. Potential Pitfalls To Avoid • Projects fail for several reasons • Inability to dissect the current process to identify what should remain and what could be discarded

18. Potential Pitfalls To Avoid • Projects fail for several reasons • Lack of follow through on the human resources aspect – does the existing staff base have the potential to master necessary skills to actually perform the new process?

19. Potential Pitfalls To Avoid • Projects fail for several reasons • Inability to redesign all areas of the process and reintegrate them into a new process – forms, checklists, job descriptions, reports, measurements, benchmarks, etc.

20. Potential Pitfalls To Avoid • Projects fail for several reasons • Communication, documentation and training – ignoring or not leveraging the role of technology in keeping current

21. Potential Pitfalls To Avoid • Projects fail for several reasons • The eventual “perfectly” redesigned process is itself not analyzed for potential negative domino effects when re-inserted into the total environment

22. Cultural/Organizational Issues • Do not ignore the “People” component! • Not invented here syndrome • Lack of appreciation of culture shock • Cultural inability to confront the issues and report them – how to ask the right questions • Silo mentality of various divisions causing duplication of effort or, worse, inadvertent sabotage of efforts, more confusion • Net result – “if it ain’t broke, don’t fix it” mentality.

23. The Role Of Systems And Technology In Process Improvement • Why involve an HFTP professional? • They have the latest tools for process improvement • Successful technology planning requires process discipline • Technologists are comfortable with constant change – it is a way of life • Technology or Business Process solutions treated in isolation will never work

24. Key Takeaways • Set clearly understood goals and priorities • Always involve key stakeholdersand include guest and customer perspectives • Take care while selecting the process optimization team • Consider all variables • Always test a process on the uninitiated • Be flexible, ready to adapt and ready to modify as necessary

25. The Goal – Success! Process optimization Definition and Benefits Methods of Optimization Avoid Potential Pitfalls • Lack of ownership • Failing to account for all • Increase efficiency • Increase profitability • Consistency of service • Process Evaluation • Process Mapping • Simulations Success!

26. Please contact us if you have any questions… • Dylan ArriazaBacara Resort & Spa DArriaza@bacararesort.com • Amitava Chatterjee, CHTPIBM Business Consulting Services amitava.chatterjee@us.ibm.com • Chris HartmannHVS Technology Strategies chartmann@HVSit.com • Caroline L. Macecurrently at MOHG carolinem@mohg.com