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Chapter Nine Strategic Quality Plan

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Strategic Quality Plan


Managing quality is often a topic we only assume is being addressed until reality tells us otherwise.
Allegra Johnson, CCM Club Manager Dunwoody Country Club Dunwoody, GA

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Strategic Quality Plan


Everyone in the organization must believe in the Strategic Quality Plan and integrate the plans directives into all actions and decisions. When the plan is used, the associates and the customers know it, and teamwork and partnerships are created. Bob Wills Executive Vice President Operations HDS Services Farmington Hills, MI
Managing for Quality in the Hospitality Industry King/Cichy 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Learning Objectives
Define a vision and the desired link between a personal vision and an organizations vision Describe the characteristics of a shared vision Detail the question that core values answer and how the vision, mission, and core values fit together in an organization

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Learning Objectives (cont.)


Describe strategic goals and the areas of the organization that they typically address Define how to generate the strategic quality plan and make it operational Understand how to build commitment for a strategic quality plan How are the Balanced Score Card and the Strategic Action Plans linked?
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Strategic Planning Process


Quality
Defined processes Continuously improved

Strategic quality planning process


Comprehensive Position organization for the long term Key strategic issues in the near term

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Strategic Planning Process (cont.)


A vision of the future An ideal view of where we want to be or what we want to create The expected impact of our current and future performance Personal vision

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Shared Vision
Core values of employing organization must be genuinely reflected by employees Reflection of both individual visions and the collective shared vision of the group Organizational and personal visions evolve

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Shared Vision (cont.)


Grows from personal vision A reflection of the personal visions of the people in that organization Uses synergy to make itself stronger than each individuals personal visions Results from the interaction of personal visions in an organization
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Enrollment
Freedom to choose; not buy in Easy if personal vision in line with organizations The leader enrolls first, others will follow A shared vision is based on trust and placing the needs, wants, and expectations of others first
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Vision
Visions are crafted by discussing the completion of this statement: The vision of the [organization] is to be [state what we want to create to complete this sentence]

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sample Vision Statement


The Detroit Athletic Club
The vision of the Detroit Athletic Club is to be recognized as the premier private gathering place in Southeast Michigan

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sample Vision Statement (cont.)


Elk Creek Resort We will be the Pinnacle in Hospitality, Unmatched Among Destinations HDS Services We will be the preferred partner in providing management and consulting in the Food Service and Hospitality Industries

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Mission
A mission statement answers the questions:
Why do we exist? What is our purpose? In what interest do we function/operate?

The mission seeks to clarify why the organization exists, and how the organization adds value A mission is often expressed in terms of what we are in business to do or the line of work we are in
Managing for Quality in the Hospitality Industry King/Cichy 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Mission (cont.)
A mission is crafted by discussing the completion of this statement: the mission of the [organization] is to be [state the purpose for internal customers/ associates] [state the purpose for external customers] [state the purpose for partners/suppliers] [state the purpose for the community] [state the purpose about financial expectations]

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sample Mission Statement


HDS Services HDS Services is dedicated to providing hospitality-based dining services management at a level which exceeds our customers expectations

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sample Mission Statement (cont.)


RARE Hospitality, Inc.
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

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Core Values
How do we want to act? Behaviors important to the organization Helps determine our morals and decide which commitments we are willing to make Guides our interactions with others

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Core Values-Examples
Customer Satisfaction Merit Credibility Efficiency Honesty Quality Integrity Service Loyalty Personal Development Mutual Respect Improvement
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Core Values
The core values of the organization are surfaced by discussing the completion of this statement: The core values of the [organization] are [state the ways that we will act/how we will behave] ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, ______________, and ______________.

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sample Core Value Statement

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sample Core Value Statement


The University Club of Michigan State University
The core values of The University Club of MSU are personal and professional growth, communication, integrity, teamwork, balance, leadership, and excellence

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sample Core Value Statement


(cont.)

Nordic Lights Resort & Conference Center


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

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Core Values
Discover values through benchmarking Model values of most admired leaders Vision, mission, and core values tell others why we exist, how we think, and how we act
What? (the vision) Why? (the mission) How we act? (the core values) Together: what we believe in
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Self-Knowledge
Requires honesty with oneself and the ability to accept feedback from others Clarify personal values by asking:
What values are attractive to me in others (historic and modern day leaders, role models) and why? Who do I admire and why? Who do I try to emulate because I respect them? What do I believe in and why? What do I stand for and why?

What other questions can you think of?

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Organizations Values
Ask and answer the following questions to clarify the organizations values:
What values are attractive to our organization in other organizations (e.g., leaders in our industry) and why? Who do we admire most in our industry segment and why? Which organization(s) does our organization try to emulate because we respect the other organization(s)?

What other questions can you think of?


2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Building Commitment
This strategic quality planning process will be worth the effort if we _________________ People commit if they are involved Each person must be clear about their goal The vision must be compelling

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Strategic Goals
Action plans and identify with a prime mover to drive the goal Each goal has a time frame indicating start and end date Broad definitions of how the organization intends to assign resources to move toward the mission and vision Describe how people intend to focus
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Balanced Score Card


For strategic goals that can be measured A change process, not a metrics process Five categories of strategies:
Financial Marketing/Growth Organizational Effectiveness Human Resources Customer Satisfaction

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Critical Processes
Necessary to meet present and future needs of organizations customers Human resources processes CQI process Detroit Athletic Club (DAC) Five Points of Hospitality
Greet Anticipate Instill Suggest discuss-take action- follow-up Continuously improving

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sampling of Strategic Goals


Financial
Increase in overall dollar volume Increase in profit Productivity

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Sampling of Strategic Goals (cont.)


Marketing/Growth
What to sell Who is the customer Pricing Advertising Promotions and sales Marketing New products Maintaining the competitive edge
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Sampling of Strategic Goals (cont.)


Organizational Effectiveness
Process identification Organizational functions Staffing requirements Control procedures Technology Materials, equipment, and facilities Scheduling Hassle identification
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Sampling of Strategic Goals (cont.)


Human Resources
External growth rate vs. internal talent Associate expectations Idea generation Associate training Associate selection Benefits Wage/salary administration Associate turnover rates
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Sampling of Strategic Goals (cont.)


Customer Satisfaction
Feedback Areas for improvement Expectations

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Strategic Quality Planning Process Model

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Linking the BSC


Measurable information from the Strategic Action Plans is put on the BSC BSC aligns performance measures with the activation of strategies that affect any particular metric BSC keeps everyone focused on the future

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Balanced Score Card

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Balanced Score Card


H S SERVICES D B ALAN CED SCO RE CAR D Fiscal Year 2004
OU TCO E M AREA 3. Custom Satisfaction er 3.1 Overall client satisfaction 3.1a Sanitation of departm ent 3.1b See value in HDS 3.1c W ould recom end HDS m 3.1d # of Red Flagged accounts 3.2 Im prove internal custom er satisfaction 3.2a Operations Staff Survey 3.2b Accounting 3.2c General Services 4. O rganizational Effectiveness ary vendors' 4.1 Enhance our prim satisfaction with our system s and processes 4.1a Satisfaction with prim ary vendors pliance with basic 4.2 Com program in all accounts over s six m onths tenure 4.3 Balanced Score Card in place in all current units of operation by July 03, new units within 90 days 5. H um Resources an prove EEOC com pliance 5.1 Im anagem ent positions 5.2 Fill open m 5.2a Unit Director 5.2b Assistant Director 5.2c Chef 5.2d Registered Dietitian prove associate satisfaction 5.3 Im TARGET PERFO RM CE AN CURREN T PERFO RM CE AN BASELINE PERFO RM CE AN M EASUREM T EN TO OL REPO RTIN G FREQ UEN CY

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Strategic Results
Begin with vision, mission, and core values Agree that the vision, mission, and core values accurately reflect what we want to create, why we exist, and how we act S.W.O.T. Analysis Develop a wish list for the next one, three, and five years
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Strategic Results (cont.)


Brainstorm wish-list and prioritize Set target dates for each issue as well as tentative completion dates for each Select project manager, establish goals Build commitment empowering all Best plans are based on CQI process
2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Managing for Quality in the Hospitality Industry King/Cichy

Building Commitment
The process of planning is relatively easy compared to the process of building commitment for the strategic quality plan.

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Building Commitment (cont.)


Understand each persons point of reference in the strategic quality planning process by asking each individual to complete the following statement:
This strategic quality planning process will be worth the effort if we _____________

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Building Commitment
Some questions to ask at the onset of the planning process include the following:
What is my personal definition of quality? What is our internal customers definition of quality? What is our external customers definition of quality? How does our organizations definition of quality fit with these definitions? How does our organization survive?

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Summary
Strategic quality planning is the core process in any high performance service organization Processes should be continuously improved Strategic quality planning embedded in all processes

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Summary (cont.)
Other processes are derived from the organizations strategic quality planning process The strategic quality planning process is the heart and soul of the organization

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Key Terms
Balanced Score Card (BSC) Benchmarking Building Commitment Core Values Statement

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Key Terms (cont.)


Critical Processes Enrollment Mission Mission Statement Personal Vision

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Key Terms (cont.)


Shared Vision Statements of Core Values Strategic Goals Strategic Planning Process Strategic Quality Plan
Managing for Quality in the Hospitality Industry King/Cichy 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Key Terms (cont.)


Strategic Quality Planning Process Model Strategic Results S.W.O.T. Analysis Targets Vision

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Relevant Web Sites


Best Practices in Resolving Customer Complaints: http://govinfo
.library.unt.edu/npr/library/papers/benchmrk/bstprac.html

Detroit Athletic Club Website: http://www.thedac.com/ HDS Services Website www.hdsservices.com RARE Hospitality International, Inc. Website: http://www. rarehospitality.com

Managing for Quality in the Hospitality Industry King/Cichy

2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

Relevant Web Sites (cont.)


Strategic Quality Plan: Strategic Quality Planning Through Qualitys Five Dimensions (by Richard Winder): http://www.ldri.com/articles/93stratqualplan.html University Club of MSU Website: http://www. universityclubofmsu.org What is Strategic Planning?: http://www.allianceonline .org/FAQ/strategic_planning
Managing for Quality in the Hospitality Industry King/Cichy 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458

http://www.co.mecklenburg.nc.us/cobudget/pdf/Introduction/StrategicQualPlan01.