No buy-in, no project

By Chin

Each company probably would have strategized targets to achieve on annually. In Starwood they are know as Big 5’s. Big 5’s are tactical targets that support the company’s global initiatives and global objectives; normally a mixture of financial and non-financial but measurable targets. These targets ‘flow down’ from divisional presidents’ offices’ to area directors and down to general managers of individual hotels. The general manager’s targets in turn are supported by each senior team member’s Big 5’s. Members of the management (who are stakeholders of processes as well) evaluate whether Six Sigma can be used as a platform to achieve Big 5’s. If there’s no clear link, it’ll probably mean no buy-in from stakeholders.

When there’s no buy-in, Black Belts are told to look at the next item in the pipeline. This is to avoid the project ‘dying’ halfway.



Comments 4

  1. I Talk

    It depends on how you look at Six Sigma.

    There are many company adopting Six Sigma solely for cost saving purpose, meaning to say, if there is no significant financial impact, don’t do it.

    In general, I do not agree with the concept. There are many thing out there can be improve to make our society better. Would this measurable with money?

    In short, if you measure Six Sigma performance with money, many things cannot be done or not justifiable to improve. Whereas, if you look at Six Sigma as a Best Practice or Habit in life, everything can be improve with Six Sigma DMAIC.

  2. Vincent Chin

    I mentioned ’financial & non-financial’ targets specifically; and both must be measurable. I agree that ’non-financial’ projects are equally as important as ’financial’ projects because ’non-financial’ is time-defined. In the longer run, ’non-financial’ could be financial as well, depending on how deep we dig. For instance, in the hotel industry majority of projects concerning guest satisfaction falls under the ’non-financial’ tag. It is classified as non-financial because the revenue impact of loosing a dissatisfied guest is unclear during the duration of the Quick Hit or DMAIC project. However every hotelier knows the result of dissatisfied customer- he/she may not be coming back at all. This revenue loss cannot be estimated with reasonable certainty- we don’t know the timing of the revenue impact; or was there a revenue loss in the first place because the guest had never intended to return.

    Quick Hit project- results tracked for 6 months. Is a term coined by Starwood for ’express’ projects.
    DMAIC project- results tracked for 12 months

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