Starwood Appoints Former GE Executive to Spearhead the Effort
WHITE PLAINS, N.Y., Feb. 5 /PRNewswire/ --
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) has announced that it
will be the first hospitality company in the world to embrace Six Sigma, the
internationally recognized program that dramatically accelerates and maximizes
business performance. Importantly, this initiative is expected to deliver
significant long-term financial benefits -- more than $200 million of
incremental EBITDA over the next five years.
Six Sigma will roll out across Starwood Hotels & Resorts starting in the
first quarter of 2001, completing implementation through the entire company by
the end of 2002. While the company has budgeted a net cost for the program in
2001, as training and process reengineering begins, the company expects the
program to begin delivering benefits in 2002 and beyond.
Pioneered by Motorola and made famous by GE, Six Sigma has helped some of
the world's leading companies greatly improve customer service and increase
financial returns. Starwood expects to save millions of dollars through
improved efficiencies and maximized targeting of employed capital. Further,
Starwood expects to generate significant incremental revenue and profit due to
enhanced loyalty and additional products and services.
Barry S. Sternlicht, chairman and chief executive officer, Starwood Hotels
and Resorts stated, "The launch of Six Sigma is one of the most important
strategic initiatives since the formation of our company. This is a multiyear
effort encompassing thousands of our associates. Its successful
implementation will sustain and build new momentum, strengthen our global
brands, enhance our ability to share best practices globally, speed the
adoption of new technologies, prepare us for the challenges of constant
change, provide critical focus on the customer and, over time, help deliver a
dramatic improvement in the bottom line. As the world's largest owner of
hotel and resort properties, Starwood and the owners of the properties we
manage, are uniquely positioned to benefit from this effort".
"We have spent $1 billion in our ongoing effort to bring consistency to
our branded hotels around the world," says Bob Cotter, chief operating
officer, Starwood Hotels & Resorts. "It is time and we are ready to
complement this effort with a global focus on the delivery of consistent and
exemplary service to our guests. From the reservation and check-in process,
to room standards and cleanliness, it is our goal for every Westin, Sheraton,
W, Four Points by Sheraton, Starwood Vacation Ownership and St. Regis/Luxury
Collection guest to have a flawless experience during each and every visit.
Six Sigma will help us reach that goal."
Former GE executive James Hyman has been named executive vice president,
Six Sigma, for Starwood and will have global responsibility for executing the
strategy, designing the tools and overseeing the implementation of Starwood's
Six Sigma initiative. Before joining Starwood, Hyman served as President of
Europe for GE Capital Modular Space. Hyman will report directly to Bob
Cotter.
Starwood has also enlisted the expertise of renowned Six Sigma specialists
Peter S. Pande, co-author of "The Six Sigma Way" and president of Pivotal
Consulting, and the George Group to assist with the launch.
During the first five quarters of implementation, Starwood will primarily
redeploy current Starwood associates to fill approximately 450 Six Sigma
specialist roles. Starwood will fill these roles with many of the company's
highest performing associates, in addition to some external candidates from
all fields. These Six Sigma specialists will have strong analytical and
organizational skills, and most will hold the title of "black belt" or "master
black belt." Each "black belt" is expected to drive EBITDA gains of
$200,000 or more per year.
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) is one of the
leading hotel and leisure companies in the world with more than 725 properties
in 80 countries and 120,000 employees at its owned and managed properties.
With internationally renowned brands, Starwood is a fully integrated owner,
operator and franchiser of hotels and resorts including: St. Regis, The
Luxury Collection, Sheraton, Westin, Four Points by Sheraton, W brands, as
well as Starwood Vacation Ownership, Inc., one of the premier developers and
operators of high quality vacation interval ownership resorts. For more
information, please visit us at http://www.starwoodhotels.com .
SOURCE Starwood Hotels & Resorts Worldwide, Inc.
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CONTACT:
Nadeen N. Ayala of Starwood Hotels & Resorts,
914-640-8259, or 866-4-STAR-PR (866-478-2777)
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