There are companies that rely solely on service and quality to maintain their brand image. The hotel industry is a prime example of this, as their customers expect consistent service regardless of the country they stay in. To understand how the Ritz Carlton achieves superior service in all their hotel properties, which are owned by Marriott, research should be conducted on the management’s objectives and goals. This allows the hotels to provide excellent service regardless of the workforce or culture of the country they operate in.
Reference materials, both from course readings and external sources, should be utilized to strengthen arguments. The management objectives and goals of The Ritz Carlton are crucial in their reputation for superior service worldwide. To achieve this, they employ the gold standard approach, which encompasses specific leadership behaviors that empower their staff and foster an extraordinary commitment to customers. President Simon Cooper emphasizes the importance of a strong foundation rather than simply superficial quality.
The Gold Standards and disciplined business practices drive our company’s achievements in various areas such as attracting job seekers, engaging customers, and maintaining quality excellence worldwide. The Ritz Carlton’s success lies in its well-defined Gold Standards and the remarkable discipline in instilling them in the daily lives of their employees, known as “Ladies and Gentlemen of the company.” These Gold Standards encompass the company’s vision, purpose, and values. The leaders at the Ritz Carlton are dedicated to incorporating the company’s purpose and values into the everyday routines of their employees. As part of their uniform, every employee carries a tri-fold that serves as a constant reminder of the purpose and values. This approach fosters a cohesive work environment where each employee is driven by a singular goal of ensuring guest safety and comfort.
The Ritz Carlton employees, known as Ladies and Gentlemen of Ritz Carlton, participate in a lineup meeting before each shift with management. The purpose of this meeting is to reinforce the Credo Card, Motto, and Three Steps of Service. The lineup involves repeating values, using common language, utilizing visual symbols, sharing oral traditions, telling positive stories, and leaders modeling behaviors. By involving employees at every level, the Ritz Carlton attributes their success to this inclusive approach.
The company believes that every employee is equally important, both to the company and to the customers. The company’s Credo consists of three steps that are embedded in the company’s culture: greeting guests warmly and sincerely, using their names; anticipating and fulfilling guests’ needs; and saying goodbye with a warm farewell, using the guest’s name. These core values not only guide employees in their interactions with customers but also in their interactions with each other, including from management to subordinates.
According to the Ritz Carlton, when leaders of the company follow these core values when interacting with their subordinates, it is believed that the subordinates will adopt this approach towards customers. The Ritz Carlton has a set of guidelines called the 20 Basics, which focuses on empowering staff and providing personalized service to guests. These guidelines encourage staff to go beyond their normal duties to address and resolve guest concerns, as well as identify and note guest preferences.
The 20 Basics encompass various areas such as cleanliness, personal appearance, complaint management, communication style, etiquette, and ownership of corporate assets. However, with valuable input from the Ritz Carlton staff, these basics were refined into 12 values that emphasize desired behaviors rather than actions. This approach enables employees to prioritize the customer’s desired outcome.
The Ritz Carlton leadership constantly enhances their hotel design and services to cater to the needs of both traditional and new consumers. They achieve this by gathering feedback from customers, sales force, employees, and word of mouth. The key to Ritz Carlton’s success lies in their careful selection of individuals who share the company’s commitment to selfless service towards fellow Ladies and Gentlemen.
At The Ritz, the hiring process is thorough and involves multiple interviews to ensure that employees are carefully selected. This investment in getting to know potential hires fosters a sense of responsibility and motivates them to perform well and take ownership of their work. It is worth mentioning that this process is longer compared to other businesses.
Despite the hotel industry’s 60 percent turnover rate, the Ritz Carlton maintains a low employee turnover rate of approximately 20 percent due to its unique hiring process. The company relies on its leadership to make effective business decisions that uphold its reputation. To achieve this, they implement a financially viable business model and offer necessary resources and training for their staff, ensuring long-term employment.
According to President Simon Cooper, it is important for our company to be profitable in order to do good beyond our organization. During our orientation, we emphasize the necessity of financial stability and highlight that making a profit is not a negative concept at Ritz-Carlton. The success of our business ensures job security for our employees and allows us to expand opportunities globally. Being successful brings numerous benefits.
If our expenses continue to exceed our revenues, all the positive impact we have on others will eventually go to waste. It is crucial to establish a business that can sustain itself in the long term, not just in terms of environmental sustainability. Generating profits over an extended period is essential. Surprisingly, despite providing luxury products, I believe in avoiding excessive resource allocation. I have witnessed cases where resources were added during prosperous times but had to be removed during challenging periods.
The Ritz Carlton’s New Gold Standards delineate five leadership principles that differentiate them from other businesses within their industry. Their strategic plan prioritizes their employees, who are referred to as Ladies and Gentlemen and receive consistent training and reminders of these principles at the start of each shift through “the line up”. The principles taught to the Ladies and Gentlemen of the Ritz Carlton are: define and refine; empower through trust; it’s not about you; deliver wow; and leave a lasting footprint.
When guests enter the Ritz Carlton, they encounter a unique level of customer service that distinguishes it from competitors in the hotel industry. This differentiation is achieved through the Ritz Carlton’s commitment to training its leadership and employees in the five principles of leadership. Additionally, the Ritz Carlton constantly adapts to meet the needs of today’s guests, giving them a strong strategic advantage over other hotels in the industry.
Citing:
The book titled “The New Gold Standard: 5 Leadership Principles for Creating a Legendary Customer Experience” written by Joseph A. Michelli and published by McGraw-Hill in 2008 focuses on the Ritz-Carlton Hotel Company.
