Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.

King/Cichy Upper Saddle River, NJ 07458

Strategic Quality Plan

Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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?
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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
Strategic Planning Process (cont.)
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Core Values-Examples
Customer
Satisfaction

Merit

Credibility

Efficiency

Honesty

Quality
Integrity

Service

Loyalty

Personal
Development

Mutual Respect

Improvement
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Sample Core Value Statement
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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 2006 Pearson Education, Inc.
King/Cichy 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?
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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 2006 Pearson Education, Inc.
King/Cichy 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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Sampling of Strategic Goals (cont.)
Organizational Effectiveness
Process identification
Organizational functions
Staffing requirements
Control procedures
Technology
Materials, equipment, and facilities
Scheduling
Hassle identification
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Sampling of Strategic Goals (cont.)
Customer Satisfaction
Feedback
Areas for improvement
Expectations
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Strategic Quality Planning
Process Model
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Balanced Score Card
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Balanced Score Card
HDS SERVICES
BALANCED SCORE CARD
Fiscal Year 2004
MEASUREMENT OUTCOME REPORTING TARGET
FREQUENCY
CURRENT
PERFORMANCE
BASELINE
PERFORMANCE AREA PERFORMANCE TOOL
3. Customer Satisfaction
3.1 Overall client satisfaction
3.1a Sanitation of department
3.1b See value in HDS
3.1c Would recommend HDS
3.1d # of Red Flagged accounts
3.2 Improve internal customer
satisfaction
3.2a Operations Staff Survey
3.2b Accounting
3.2c General Services
4. Organizational Effectiveness
4.1 Enhance our primary vendors'
satisfaction with our systems
and processes
4.1a Satisfaction with primary
vendors
4.2 Compliance with basic
programs in all accounts over
six months tenure
4.3 Balanced Score Card in place in
all current units of operation
by July 03, new units within
90 days
5. Human Resources
5.1 Improve EEOC compliance
5.2 Fill open management positions
5.2a Unit Director
5.2b Assistant Director
5.2c Chef
5.2d Registered Dietitian
5.3 Improve associate satisfaction
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy 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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Key Terms
Balanced Score Card (BSC)

Benchmarking

Building Commitment

Core Values Statement
Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Key Terms (cont.)
Critical Processes

Enrollment

Mission

Mission Statement

Personal Vision

Managing for Quality in the Hospitality Industry 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy 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 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Relevant Web Sites (cont.)
Strategic Quality Plan:
http://www.co.mecklenburg.nc.us/cobudget/pdf/Introduction/StrategicQualPl
an01.pdf

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