1. Managing for Quality in the Hospitality Industry © 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Strategic Quality Plan

2. 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

3. 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 plan’s
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

4. 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 organization’s 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

5. 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?

6. 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

7. 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.)

8. 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

9. 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
individual’s personal visions
• Results from the interaction of personal visions
in an organization

10. 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
organization’s
• The leader enrolls first, others will follow
• A shared vision is based on trust and placing
the needs, wants, and expectations of others
first

11. 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]

12. 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

13. 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

14. 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

15. 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]

16. 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

17. 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

18. 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

19. 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

20. 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 ______________.

21. Managing for Quality in the Hospitality Industry © 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Sample Core Value Statement

22. 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

23. 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

24. 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

25. 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?

26. Managing for Quality in the Hospitality Industry © 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Organization’s Values
• Ask and answer the following questions to
clarify the organization’s 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?

27. 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

28. 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

29. 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

30. 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
organization’s 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. Managing for Quality in the Hospitality Industry © 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Strategic Quality Planning
Process Model

37. 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

38. Managing for Quality in the Hospitality Industry © 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Balanced Score Card

39. Managing for Quality in the Hospitality Industry © 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Balanced Score CardHDS SERVICES
BALANCED SCORE CARD
Fiscal Year 2004
MEASUREMENTOUTCOME REPORTINGTARGET
FREQUENCY
CURRENT
PERFORMANCE
BASELINE
PERFORMANCEAREA 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

40. 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

41. 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

42. 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.

43. Managing for Quality in the Hospitality Industry © 2006 Pearson Education, Inc.
King/Cichy Upper Saddle River, NJ 07458
Building Commitment (cont.)
• Understand each person’s 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
_____________

44. 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 organization’s definition of quality fit
with these definitions?
– How does our organization survive?

45. 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

46. 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
organization’s strategic quality planning process
• The strategic quality planning process is the
heart and soul of the organization

47. 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

48. 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

49. 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

50. 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

51. 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

52. 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 Quality’s 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