Managing for Quality in the Hospitality Industry © 2006 ...


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Managing for Quality in the Hospitality Industry © 2006 ...

  1. 1. Chapter Nine Strategic Quality Plan
  2. 2. Strategic Quality Plan <ul><li>“ Managing quality is often a topic we only </li></ul><ul><li>assume is being addressed until reality tells </li></ul><ul><li>us otherwise.” </li></ul>Allegra Johnson, CCM Club Manager Dunwoody Country Club Dunwoody, GA
  3. 3. Strategic Quality Plan <ul><li>“ Everyone in the organization must believe in the </li></ul><ul><li>Strategic Quality Plan and integrate the plan’s </li></ul><ul><li>directives into all actions and decisions. When the </li></ul><ul><li>plan is used, the associates and the customers </li></ul><ul><li>know it, and teamwork and partnerships are </li></ul><ul><li>created.” </li></ul>Bob Wills Executive Vice President Operations HDS Services Farmington Hills, MI
  4. 4. Learning Objectives <ul><li>Define “a vision” and the desired link between a personal vision and an organization’s vision </li></ul><ul><li>Describe the characteristics of a shared vision </li></ul><ul><li>Detail the question that core values answer and how the vision, mission, and core values fit together in an organization </li></ul>
  5. 5. Learning Objectives (cont.) <ul><li>Describe strategic goals and the areas of the organization that they typically address </li></ul><ul><li>Define how to generate the strategic quality plan and make it operational </li></ul><ul><li>Understand how to build commitment for a strategic quality plan </li></ul><ul><li>How are the Balanced Score Card and the Strategic Action Plans linked? </li></ul>
  6. 6. Strategic Planning Process <ul><li>Quality </li></ul><ul><ul><li>Defined processes </li></ul></ul><ul><ul><li>Continuously improved </li></ul></ul><ul><li>Strategic quality planning process </li></ul><ul><ul><li>Comprehensive </li></ul></ul><ul><ul><li>Position organization for the long term </li></ul></ul><ul><ul><li>Key strategic issues in the near term </li></ul></ul>
  7. 7. <ul><li>A vision of the future </li></ul><ul><li>An ideal view of where we want to be or what we want to create </li></ul><ul><li>The expected impact of our current and future performance </li></ul><ul><li>Personal vision </li></ul>Strategic Planning Process (cont.)
  8. 8. Shared Vision <ul><li>Core values of employing organization must be genuinely reflected by employees </li></ul><ul><li>Reflection of both individual visions and the collective shared vision of the group </li></ul><ul><li>Organizational and personal visions evolve </li></ul>
  9. 9. Shared Vision (cont.) <ul><li>Grows from personal vision </li></ul><ul><li>A reflection of the personal visions of the people in that organization </li></ul><ul><li>Uses synergy to make itself stronger than each individual’s personal visions </li></ul><ul><li>Results from the interaction of personal visions in an organization </li></ul>
  10. 10. Enrollment <ul><li>Freedom to choose; not “buy in” </li></ul><ul><li>Easy if personal vision in line with organization’s </li></ul><ul><li>The leader enrolls first, others will follow </li></ul><ul><li>A shared vision is based on trust and placing the needs, wants, and expectations of others first </li></ul>
  11. 11. Vision <ul><li>Visions are crafted by discussing the completion of this statement: </li></ul><ul><ul><li>The vision of the [organization ] is to be [state what we want to create to complete this sentence] </li></ul></ul>
  12. 12. Sample Vision Statement <ul><li>The Detroit Athletic Club </li></ul><ul><ul><li>The vision of the Detroit Athletic Club is to be recognized as the premier private gathering place in Southeast Michigan </li></ul></ul>
  13. 13. Sample Vision Statement (cont.) <ul><li>Elk Creek Resort </li></ul><ul><ul><li>We will be the Pinnacle in Hospitality, Unmatched Among Destinations </li></ul></ul><ul><li>HDS Services </li></ul><ul><ul><li>We will be the preferred partner in providing management and consulting in the Food Service and Hospitality Industries </li></ul></ul>
  14. 14. Mission <ul><li>A mission statement answers the questions: </li></ul><ul><ul><li>“ Why do we exist?” </li></ul></ul><ul><ul><li>“ What is our purpose?” </li></ul></ul><ul><ul><li>“ In what interest do we function/operate?” </li></ul></ul><ul><li>The mission seeks to clarify why the organization exists, and how the organization adds value </li></ul><ul><li>A mission is often expressed in terms of what we are in business to do or the line of work we are in </li></ul>
  15. 15. Mission (cont.) <ul><li>A mission is crafted by discussing the completion of this statement: </li></ul><ul><ul><li>the mission of the [organization] is to be [state the purpose for internal customers/ associates] </li></ul></ul><ul><ul><li>[state the purpose for external customers] </li></ul></ul><ul><ul><li>[state the purpose for partners/suppliers] </li></ul></ul><ul><ul><li>[state the purpose for the community] </li></ul></ul><ul><ul><li>[state the purpose about financial expectations] </li></ul></ul>
  16. 16. Sample Mission Statement <ul><li>HDS Services </li></ul><ul><ul><li>HDS Services is dedicated to providing hospitality-based dining services management at a level which exceeds our customers’ expectations </li></ul></ul>
  17. 17. Sample Mission Statement (cont.) <ul><li>RARE Hospitality, Inc. </li></ul><ul><ul><li>The mission of RARE Hospitality is to be financially successful through GREAT PEOPLE consistently delivering GREAT FOOD, GREAT SERVICE, and making every guest a loyal guest </li></ul></ul>
  18. 18. Core Values <ul><li>How do we want to act? </li></ul><ul><li>Behaviors important to the organization </li></ul><ul><li>Helps determine our morals and decide which commitments we are willing to make </li></ul><ul><li>Guides our interactions with others </li></ul>
  19. 19. Core Values-Examples <ul><li>Customer Satisfaction </li></ul><ul><li>Merit </li></ul><ul><li>Credibility </li></ul><ul><li>Efficiency </li></ul><ul><li>Honesty </li></ul><ul><li>Quality </li></ul><ul><li>Integrity </li></ul><ul><li>Service </li></ul><ul><li>Loyalty </li></ul><ul><li>Personal Development </li></ul><ul><li>Mutual Respect </li></ul><ul><li>Improvement </li></ul>
  20. 20. Core Values <ul><li>The core values of the organization are surfaced by discussing the completion of this statement: </li></ul><ul><ul><li>The core values of the [ organization ] are [ state the ways that we will act/how we will behave ] ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, and ______________. </li></ul></ul>
  21. 21. Sample Core Value Statement
  22. 22. Sample Core Value Statement <ul><li>The University Club of Michigan State University </li></ul><ul><ul><li>The core values of The University Club of MSU are personal and professional growth, communication, integrity, teamwork, balance, leadership, and excellence </li></ul></ul>
  23. 23. Sample Core Value Statement (cont.) <ul><li>Nordic Lights Resort & Conference Center </li></ul><ul><ul><li>The core values of Nordic Lights Resort & Conference Center are loyalty, integrity and ethics, mentoring, honesty and trust, diversity, positive attitude, respect, empowerment, fun, teamwork, continuous quality improvement, and a passion for excellence </li></ul></ul>
  24. 24. Core Values <ul><li>Discover values through benchmarking </li></ul><ul><li>Model values of most admired leaders </li></ul><ul><li>Vision, mission, and core values tell others why we exist, how we think, and how we act </li></ul><ul><ul><li>What? (the vision) </li></ul></ul><ul><ul><li>Why? (the mission) </li></ul></ul><ul><ul><li>How we act? (the core values) </li></ul></ul><ul><ul><li>Together: what we believe in </li></ul></ul>
  25. 25. Self-Knowledge <ul><li>Requires honesty with oneself and the ability to accept feedback from others </li></ul><ul><li>Clarify personal values by asking: </li></ul><ul><ul><li>What values are attractive to me in others (historic and modern day leaders, role models) and why? </li></ul></ul><ul><ul><li>Who do I admire and why? </li></ul></ul><ul><ul><li>Who do I try to emulate because I respect them? </li></ul></ul><ul><ul><li>What do I believe in and why? </li></ul></ul><ul><ul><li>What do I stand for and why? </li></ul></ul><ul><li>What other questions can you think of? </li></ul>
  26. 26. Organization’s Values <ul><li>Ask and answer the following questions to clarify the organization’s values: </li></ul><ul><ul><li>What values are attractive to our organization in other organizations (e.g., leaders in our industry) and why? </li></ul></ul><ul><ul><li>Who do we admire most in our industry segment and why? </li></ul></ul><ul><ul><li>Which organization(s) does our organization try to emulate because we respect the other organization(s)? </li></ul></ul><ul><li>What other questions can you think of? </li></ul>
  27. 27. Building Commitment <ul><li>This strategic quality planning process will be worth the effort if we _________________ </li></ul><ul><li>People commit if they are involved </li></ul><ul><li>Each person must be clear about their goal </li></ul><ul><li>The vision must be compelling </li></ul>
  28. 28. Strategic Goals <ul><li>Action plans and identify with a prime mover to drive the goal </li></ul><ul><li>Each goal has a time frame indicating start and end date </li></ul><ul><li>Broad definitions of how the organization intends to assign resources to move toward the mission and vision </li></ul><ul><li>Describe how people intend to focus </li></ul>
  29. 29. Balanced Score Card <ul><li>For strategic goals that can be measured </li></ul><ul><li>A change process, not a metrics process </li></ul><ul><li>Five categories of strategies: </li></ul><ul><ul><li>Financial </li></ul></ul><ul><ul><li>Marketing/Growth </li></ul></ul><ul><ul><li>Organizational Effectiveness </li></ul></ul><ul><ul><li>Human Resources </li></ul></ul><ul><ul><li>Customer Satisfaction </li></ul></ul>
  30. 30. Critical Processes <ul><li>Necessary to meet present and future needs of organization’s customers </li></ul><ul><li>Human resources processes </li></ul><ul><li>CQI process </li></ul><ul><li>Detroit Athletic Club (DAC) Five Points of Hospitality </li></ul><ul><ul><li>Greet </li></ul></ul><ul><ul><li>Anticipate </li></ul></ul><ul><ul><li>Instill </li></ul></ul><ul><ul><li>Suggest –discuss-take action- follow-up </li></ul></ul><ul><ul><li>Continuously improving </li></ul></ul>
  31. 31. Sampling of Strategic Goals <ul><li>Financial </li></ul><ul><ul><li>Increase in overall dollar volume </li></ul></ul><ul><ul><li>Increase in profit </li></ul></ul><ul><ul><li>Productivity </li></ul></ul>
  32. 32. Sampling of Strategic Goals (cont.) <ul><li>Marketing/Growth </li></ul><ul><ul><li>What to sell </li></ul></ul><ul><ul><li>Who is the customer </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>Advertising </li></ul></ul><ul><ul><li>Promotions and sales </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>New products </li></ul></ul><ul><ul><li>Maintaining the competitive edge </li></ul></ul>
  33. 33. Sampling of Strategic Goals (cont.) <ul><li>Organizational Effectiveness </li></ul><ul><ul><li>Process identification </li></ul></ul><ul><ul><li>Organizational functions </li></ul></ul><ul><ul><li>Staffing requirements </li></ul></ul><ul><ul><li>Control procedures </li></ul></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Materials, equipment, and facilities </li></ul></ul><ul><ul><li>Scheduling </li></ul></ul><ul><ul><li>Hassle identification </li></ul></ul>
  34. 34. Sampling of Strategic Goals (cont.) <ul><li>Human Resources </li></ul><ul><ul><li>External growth rate vs. internal talent </li></ul></ul><ul><ul><li>Associate expectations </li></ul></ul><ul><ul><li>Idea generation </li></ul></ul><ul><ul><li>Associate training </li></ul></ul><ul><ul><li>Associate selection </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><li>Wage/salary administration </li></ul></ul><ul><ul><li>Associate turnover rates </li></ul></ul>
  35. 35. Sampling of Strategic Goals (cont.) <ul><li>Customer Satisfaction </li></ul><ul><ul><li>Feedback </li></ul></ul><ul><ul><li>Areas for improvement </li></ul></ul><ul><ul><li>Expectations </li></ul></ul>
  36. 36. Strategic Quality Planning Process Model
  37. 37. Linking the BSC <ul><li>Measurable information from the Strategic Action Plans is put on the BSC </li></ul><ul><li>BSC aligns performance measures with the activation of strategies that affect any particular metric </li></ul><ul><li>BSC keeps everyone focused on the future </li></ul>
  38. 38. Balanced Score Card
  39. 39. Balanced Score Card
  40. 40. Strategic Results <ul><li>Begin with vision, mission, and core values </li></ul><ul><li>Agree that the vision, mission, and core values accurately reflect what we want to create, why we exist, and how we act </li></ul><ul><li>S.W.O.T. Analysis </li></ul><ul><li>Develop a “wish list” for the next one, three, and five years </li></ul>
  41. 41. Strategic Results (cont.) <ul><li>Brainstorm “wish-list” and prioritize </li></ul><ul><li>Set target dates for each issue as well as tentative completion dates for each </li></ul><ul><li>Select project manager, establish goals </li></ul><ul><li>Build commitment empowering all </li></ul><ul><li>Best plans are based on CQI process </li></ul>
  42. 42. Building Commitment <ul><li>The process of planning is relatively easy compared to the process of building commitment for the strategic quality plan. </li></ul>
  43. 43. Building Commitment (cont.) <ul><li>Understand each person’s point of reference in the strategic quality planning process by asking each individual to complete the following statement: </li></ul><ul><ul><li>This strategic quality planning process will be worth the effort if we _____________ </li></ul></ul>
  44. 44. Building Commitment <ul><li>Some questions to ask at the onset of the planning process include the following: </li></ul><ul><ul><li>What is my personal definition of quality? </li></ul></ul><ul><ul><li>What is our internal customers’ definition of quality? </li></ul></ul><ul><ul><li>What is our external customers’ definition of quality? </li></ul></ul><ul><ul><li>How does our organization’s definition of quality fit with these definitions? </li></ul></ul><ul><ul><li>How does our organization survive? </li></ul></ul>
  45. 45. Summary <ul><li>Strategic quality planning is the core process in any high performance service organization </li></ul><ul><li>Processes should be continuously improved </li></ul><ul><li>Strategic quality planning embedded in all processes </li></ul>
  46. 46. Summary (cont.) <ul><li>Other processes are derived from the organization’s strategic quality planning process </li></ul><ul><li>The strategic quality planning process is the heart and soul of the organization </li></ul>
  47. 47. Key Terms <ul><li>Balanced Score Card (BSC) </li></ul><ul><li>Benchmarking </li></ul><ul><li>Building Commitment </li></ul><ul><li>Core Values Statement </li></ul>
  48. 48. Key Terms (cont.) <ul><li>Critical Processes </li></ul><ul><li>Enrollment </li></ul><ul><li>Mission </li></ul><ul><li>Mission Statement </li></ul><ul><li>Personal Vision </li></ul>
  49. 49. Key Terms (cont.) <ul><li>Shared Vision </li></ul><ul><li>Statements of Core Values </li></ul><ul><li>Strategic Goals </li></ul><ul><li>Strategic Planning Process </li></ul><ul><li>Strategic Quality Plan </li></ul>
  50. 50. Key Terms (cont.) <ul><li>Strategic Quality Planning Process Model </li></ul><ul><li>Strategic Results </li></ul><ul><li>S.W.O.T. Analysis </li></ul><ul><li>Targets </li></ul><ul><li>Vision </li></ul>
  51. 51. Relevant Web Sites <ul><li>Best Practices in Resolving Customer Complaints: http:// govinfo .library. unt . edu / npr /library/papers/ benchmrk / bstprac .html </li></ul><ul><li>Detroit Athletic Club Website: </li></ul><ul><li> </li></ul><ul><li>HDS Services Website </li></ul><ul><li>www. hdsservices .com </li></ul><ul><li>RARE Hospitality International, Inc. Website: http://www. rarehospitality .com </li></ul>
  52. 52. Relevant Web Sites (cont.) <ul><li>Strategic Quality Plan: </li></ul><ul><li>Strategic Quality Planning Through Quality’s Five Dimensions (by Richard Winder): </li></ul><ul><li>http://www. ldri .com/articles/93stratqualplan.html </li></ul><ul><li>University Club of MSU Website: http://www. universityclubofmsu .org </li></ul><ul><li>What is Strategic Planning?: http://www. allianceonline .org/FAQ/strategic_planning </li></ul>