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Making the Case for Quality

August 2015

Indian 5-Star Hotel Front-Line Staff


Find Happiness, Empowerment in
Solving Attrition Problem by Sunil Kumar V Kaushik

Sunil Kumar V Kaushik is a freelance Six Sigma trainer and consultant who is also an ASQ Influential
At a Glance . . . Voices author. Hired by a major hotel chain in India to train its senior management on Six Sigma
practices, Kaushik was retained to complete a process improvement project in September 2013 for the
Muri, a Japanese term chain, which operates in 16 countries and employs more than 9,000 individuals.
that means stress, exists
throughout organizations, The director of the Bangalore branch, who was also the project sponsor, shared that for the previous
and the elimination of it
year, the company had experienced a large spike in customer escalations due to numerous mistakes
plays a crucial role in its
growth and sustainability.
from the staff. Kaushik gathered a sample of the mistakes through interviews and analyzed the details
to learn they were all linked to not following the process. For example, when a family came to the
While the hotel industry
is growing in India and restaurant with kids, staff members did not ask if the parents required special seating for their infant
other parts of the world, children, and if the customers requested one, the employees did not put in effort to finding one, or
attrition has become a bluntly would tell the family they did not have one. Also, several customers had to repeatedly request
very big problem, with water that was not served on time, and even some regular guests requested specific tables to avoid cer-
one of the primary reasons
tain employees whom they thought provided poor service.
being work stress.
This case study discusses Kaushik felt it difficult to put in place a process to fix these issues, as they all involved human interac-
the techniques that were
tions and the only measure could have been to learn how much effort the staff had made to please the
used by consultant Sunil
Kaushik to understand customer. When he looked at the tenure of the staff to validate if there were needs for additional train-
the root causes of stress, ing, 64 percent of the employees were on the job for less than one year, while 20 percent were less than
to quantify it, and arrive two years, and only 17 percent had been working for the company for more than two years. It became
at solutions for a popular increasingly clear that training, or lack thereof, was at the root of the problem due to a large population
Indian hotel chain that
of relatively new staff members coming in contact with customers.
will remain anonymous.

Insight to Attrition

The sponsor agreed with Kaushiks findings, confirming that retraining should be provided on a regular
basis. The trainings duration varied from 10 days to four weeks depending on the role, and it took an
employee approximately six months to comfortably learn everything and be able to work indepen-
dently. The change, though, was not of much use, as the trained employees would usually quit within
a year, and then the cycle would begin again. Kaushik understood the problems root cause was due to
attrition, which was hovering at 41 percent.

To further investigate the issue, senior stakeholders participated in a brainstorming sessiona task
many of the leaders expected to use to devise solutions such as automation or mistake proofing to
reduce mistakes. But such moves were not likely since this was the hotel industry, which requires
human interaction with customers, and leaders soon agreed that if the attrition was decreased to more

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reasonable levels, there would be multiple benefits, such as an The leaders thanked the employees for the feedback, saying they
increase in customer satisfaction and reductions in cycle times were unaware of the issues. Randomly, employees were hand-
and hiring and training costs. But first, to rule out the monetary picked at all the levels for focus group sessions, and this time,
benefit factor, which is one of the common causes for attrition, they were more vocal about the issues. The feedback included
a benchmark study was completedsalaries were on the same 73 percent of the participants saying they had issues with self-
lines with competitors. respect, including the general manager (GM) who complained
that he was often treated like a servant when greeting top entre-
To learn more from the employees, Kaushik conducted one- preneurs, ministers, and other VIPs at the hotel. He said it was
on-one interviews with a small group spread across different very easy for him to lose his dignity.
departments, tenures, and levels within the organization. He
found it difficult to earn their trust, allowing them to openly and Upon learning more of the GMs background, including that he
truthfully provide information. The employees all said they were had changed jobs three times in two years, Kaushik was curi-
happy to be part of the company, but they did not answer why so ous to know the reason why. The manager told Kaushik that he
many people quit. Many were scared to say anything ill of their had been in the hotel industry for years as a GM and could not
managers or the working environment, forcing Kaushik to dig handle stress. He then moved to a service organization as a vice
much deeper in search of answers, which were still insufficient. president, where the culture was vastly different. The GM said
in the service organization, he didnt have anyone to make him
The projects sponsor was informed of the difficulties and con- his coffee or turn on his computer, unlike in the hotel industry,
vinced that without the support of the front-line employees, no and he felt he had lost his authority, so he moved back to the
impactful change could be brought to the organization. The hotel industry within six months. Hearing this and other feed-
leaders began addressing the groups in person regarding the back, Kaushik learned that:
importance of knowing their problems with a clear emphasis
that improvement would be impossible unless the employees Authority was the only power used by the managers to get
shared the real cause(s) of the high attrition rate. This led to the the work done.
first-ever meeting between front-line staff and senior leadership. There was never any interaction one level up, and middle
management did not feel attrition was an issue.
Following the meeting, employees were handed a satisfaction Those who quit the hotel mostly joined call centers, as they
survey containing 30 questionsa questionnaire that would had good communication, customer management skills, and
guarantee anonymity to spark honest conversation of the real the work environment was stress free.
issues present hindering positive growth. In total, 226 front- There was no proper hiring structure in place, apart from a
line employeesincluding those in the food and beverage, and 30-minute interview with respective managers.
room-service fieldsprovided answers to the questions.
Based on the survey response, it became evident the company
From the survey, Kaushik learned: was in a bad spot. The problem was difficult for Kaushik to
approach because it was completely related to people, stress
84 percent of the staff felt their job was highly stressful.
management, and interpersonal skills. To further illustrate the
72 percent felt their health deteriorated.
causes and effects for the muri in the organization, the surveys
59 percent felt their job affected their personal life.
findings, employee interviews, and lessons learned from brain-
91 percent who answered said top leadership does not hear
storming sessions were mapped to an Ishikawa diagram, which
their voice.
can be seen in Figure 1.
68 percent felt the work environment was much better
with the competitive hotel chains.
Solution Approach and Workshop
81 percent answered they did not see any growth in their
jobrole. The findings were shared with the project sponsor and senior
57 percent were demotivated within a month of joining leadership. The next step was to identify the processes that
because of their immediate managers and supervisors. make the job more stressful, and to determine how leadership
58 percent answered Yes for the question, Do you feel can relieve employees stress.
you are losing your self-respect when a customer treats
youbadly? A value stream map was created with the project team to depict
a typical day of an employee from food and beverage. The
In the six months prior to the survey, the attrition rate for the map, which could not be published in this case study, identified
hotel chains employees was 41 percent, with major contribu- the number of possible points that could cause stress. It was
tions from the food and beverage division (23 percent) and found that an employees entire work day is spent receiving
room service employees (13 percent). orders, leaving many to feel stressed because they dont receive

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an opportunity to vent their frustrations
Figure 1: Ishikawa Diagram of Causes for Muri while always helping customers. With so
much stress and frustration, the employees
Personnel
were not self-driven; their objective was
Measurements Lack of motivation
to simply complete the task rather than to
Deterioration of health ensure customer satisfaction. While senior
leaders agreed with most of the observa-
Employee satisfaction not measured High ego in work environment tions, Kaushik was told the employee
Work-life imbalance concerns were normal in the hotel indus-
try and that not much could be done to
Stress not measured Self-respect improve it.
Lack of exercise
While he had initially tried to play the role
Muri of an advisor on the project, Kaushik deter-
Lack of process Power and authority Career development mined that being a facilitator was yielding
improvement used to get the trainings were minimal better results, so he decided to guide the
work done
No career path
staff through a brainstorming session to find
Authority driven
RCA never performed for employees solutions to problems identified in the sur-
Abusive vey. The main objective of these sessions
language used People blamed Losing experienced people
for defects
was to assure employees they were impor-
Customer-facing Long training period tant, and the managers were advised to hold
on to the solutions regardless of how simple
Work Methods Attrition or straightforward they were.

There were 226 participants in 16 groups


Table 1 Problems, Solutions, and Impacts Board in the workshop. The problem was shared
with them and participants were asked how
Problem Solution Impact leadership could help them. The work-
Manage stress, stay The yoga instructor from the hotel spa was Employees feel energized and shop involved ice-breaker activities, focus
centered, manage asked to conduct 15-minute yoga and relaxed through the day.
health, achieve meditation sessions three days a week. group sessions, and some mind maps.
work-life balance
Senior leaders are trained on Vipassana Staff manages uncertainty and stays Theemployees were able to come up with
yoga to manage stress, uncertainties, centered, which helps in seeing the present 65percent of the solutions.
and stay focused on the present. without any emotion attached to it.
30-minute exercise in the gymnasium. Employees feel better and This was quite new to them, and suddenly
have improved health.
they felt empowered and energized that
Meetings could be attended Staff get to spend five additional
from home over the phone. hours per week with family.
they were making a difference in their orga-
Empowerment Managers put the problems to the Synergy among front-line employees
nization. The manager and senior leaders
and self-direction forum and employees come up with builds confidence and a continuous actively participated and concluded that
for continuous a solution through lean and logical improvement culture.
whenever there was any problem in the
improvement reasoning, and the ideas are rewarded.
work area, the staff could brainstorm ideas.
Participate in meetings with managers Build trust between leadership and front-
one level above your immediate boss. line staff. Bring transparency to work.
Empowerment and Mandatory lean training once a Build a process improvement culture.
Without losing momentum, boards were
self-direction for year and during onboarding, which installed in work areas (as can be seen in
employee growth covers lean tools and wastes. Table 1) where the manager could write a
Clear growth path created (horizontal Create a pool of motivated, self- mistake that had occurred in the past, and
and vertical) from bell staff and driven employees from different areas
doorpersons up to general manager. (rooms, bakery, bar, restaurant, then staff would offer solutions, with the
Mentors are assigned to cross-train. etc.) and retain the best talents. best one being recognized through letters
Ten hours dedicated for cross- Employees manage resources effectively, and emails. The solutions were imple-
training per month. saving costs on hiring and training.
mented quickly, and within three days, staff
Rewards and Monthly awards for the best Motivate and recognize employees.
recognition improvement idea at different levels.
began receiving communication on the
Policy Authority to be used by managers only in Encourage employee to be self-driven to
progress of the solutions. The objective was
case of urgency and customer escalations. serve the customer. Create a healthy and clear to employees: Understand customer
clean work environment where there is a
Abusive language used within the
mutual respect irrespective of the level.
needs before they ask for something, and
hotel premises was offensive.
provide a smile with theirservice.

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Results

Second and third surveys were conducted at three and six months with the same As a Six Sigma professional, Kaushik
questioner. By the end of the first year, the attrition rate was 14 percent, a decline learned there are times when it is better
of 27percent just by using available resources and managing people effectively. not to bring out his expertise (advisor) and
Process improvement has become part of the work culture over the past year and instead have the clients understand they
many improvements have been completed, including improving customer satisfac- already know the solution (facilitator).
tion, cycle times, and the company reaping cost savings, according to the projects Thiswill create a huge synergy, people feel
sponsor. Specific data to support the anecdotal evidence was not offered though. empowered, and in such circumstances,
supervision is not required and people are
Over six months, employees completed three surveys answering questions on a self-driven, impacting the sustainability of
variety of factors, including feelings about stress and health. Figure 2 shows the the solutions.
improvements the employees made in regards to their physical and mental health as
the percentage of individuals identifying with negative factors decreased dramati- For More Information
cally. The following were the eight questions answered by employees each time:
To contact the author of this case
Figure 2: Employee Survey Results Over Time study, email Sunil Kumar V Kaushik at
sunilkaushik15@gmail.com.
100% To view this and other case studies,
90%
visit the ASQ Knowledge Center at
asq.org/knowledge-center/case-studies.
80%
70%
About the Author
60%
50% Sunil Kaushik, PMP, SPSM, CPSCM,
40% ASQ Certified Six Sigma Black Belt
30% (CSSBB), is a freelance Six Sigma
trainer and consultant. Also an ASQ
20%
Influential Voices author, Kaushik blogs at
10%
www.trainntrot.com. He is getting set for an
0% around-the-world bicycle tour to promote
1 2 3 4 5 6 7 8
sustainable quality.
Pre-project Third month Sixth month

1. Do you think your job is highly stressful?


2. Do you feel healthy?
3. Does the job affect your personal life?
4. Do you feel your opinions and concerns are heard by senior management?
5. Do you think there are similar jobs in the market that can provide better work-life balance?
6. Do you see a career growth in the next three to five years?
7. Do you get enough motivation from your immediate managers/supervisors?
8. Do you feel you are losing your self-respect when a customer treats you badly?

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