Dela Fuente, Darlene Gayle D. July 18, 2014
BSIE 4 – 3

Ritz-Carlton Case Study

Introduction Nowadays, many business trips held in hotel and resorts, many tourists spend their nights in prestigious luxury hotels to have one of a kind experience and it can be traveler or family affair. In service industry, one that tops the list is Ritz-Carlton Hotel Company, world-renowned for being premier provider of luxury lifestyle experience. Ritz-Carlton is the leading brand of luxury hotels and resorts with 84 properties located in major cities and resorts in 26 countries worldwide. Making it to the top and the only service company in America that has won Malcolm Baldrige National Quality Award not only once but twice. Its legacy continues and in 1997, Marriott International purchased The Ritz-Carlton which operated as a wholly owned subsidiary. When it comes to style, quality and unsurpassed service, the Ritz-Carlton Hotel Company has set the Gold Standards in giving their highest level customers satisfaction. It is compromised by five elements: “The Credo,” “The Motto,” “Three Steps of Service,” “The 6th Diamond,” and “Employee Promise.” Their reputation for going above and beyond their customers’ expectations and cultivation brand loyalty has made devotees of their service model in the hospitality industry and beyond. It’s simply their motto “We are Ladies and Gentlemen serving Ladies and Gentlemen,” suits their legendary customer service. Discussion Questions: 1. In what ways could the Ritz-Carlton monitor its success in achieving quality?
Ritz-Carlton is process-oriented company, to achieve its quality, Ritz-Carlton created its targeted selection process to ensure a successful match of potential employees to employment. When it comes to their employees, “They select, don’t hire.” The applicants undergo in comprehensive process that involves multiple interviews, identifying right qualities and requirements for each position. Typically about 2% of the people who apply for the job are being hired. Simply hiring is nothing than finding somebody to fill the vacancy; it’s their way to ensure that the employees they select are capable and competent to execute their job appropriately. The hotels invest 280 – 350 hours training per person in a year. It covers everything from basic etiquette to how to create unique and memorable experiences for guest to service psychology.
In Ritz-Carlton Hotel Company, they encourages their employees live this “Gold Standards” that focuses on the core company values. “Credo Card,” a pocket-size shape which is owned and memorized by Ladies and Gentlemen that is carried by each member of the staff all over the world. Also in Ritz-Carlton, before starting the day’s three shifts, all employees have they so-called “Daily Line Up.” It is an opportunity to get feedback about the progress of their success and what needs to be improved. There are also regular departmental meetings in which managers ask employees to suggest things for the improvement of the guest experience.
The Ritz-Carlton always strives not only to meet the expectation of the customer but also go beyond that. They have this approach “Radar On – Antenna Up!” They train their employees not just to serve customers but know what customers wants and needs before they know it themselves. They also have this principle “Deliver Wow!” It is a part of Daily Line Up wherein Ladies and Gentlemen share their “wow story” which they talk about great things they’ve done. It is also serves a communication tool between every department.
A way also of monitoring success by Ritz-Carlton is having a poll that is randomly-chosen of guests who stayed in the hotel. It will also become a basis if there is a positive response for the customers. Monitoring by customers surveys and letters, employee report and financial performance measure is a way to achieve quality.
Customers’ satisfaction is the top priority of the company as well as became the strategy to attain 100% customer loyalty. Continuous improvement, the acronym MR. BIV is being used consistently stands for, Mistakes Rework Breakdowns Inefficiencies Variations in work process. This will help the employee to be aware of opportunities and allowing them to think for the creative possible solutions.

2. Many companies say that their goal is to provide quality products or services. What action might you expect from a company that intends quality to be more than a slogan or buzzword?
For Ritz-Carlton Hotel Company which establish name not only as leading brand in hotel and resorts but it also sets an implication that it provides quality and contentment of the customers. For having a motto “We are Ladies and Gentlemen serving Ladies and Gentlemen,” is indeed an expression that elevates the status of service professionals and conveys employees and guests should treat each other respectfully. It is a promised that everyone should be treated as lady and gentleman. Ritz-Carlton is not about hotel business but their business is services. It implies that in every action they do, they give their excellence service. This concept is to create an absolutely wonderful stay for a guest. It is not basically meeting the expectations of guests but to provide them a memorable visit. In company like Ritz-Carlton that sets to be well-known in term of services, actions that intends quality to be more than a slogan or buzzword is that they will assure in every guest problems or concerns regardless how small or big and how urgent it is, is that they guarantee the fast-service and immediate response on customer complaint. In every action that their employees do is 100% accurate and doesn’t need to redo. For a company like this, they giving their customers high expectations that need to prove that their “ultimate guest experience strategy” is not only a word but a vision that comes into reality. Since technology is fast changing, the company should take actions to cope this trend to be able to meet and exceed the changing requirement of customers.

3. Why might it cost the Ritz-Carlton less to “do things right” the first time?
Ritz-Carlton aims to have everything right when the door opens to the first customer. Like in all companies they want to achieve this advocacy do things right the first time and all the time. In every wrongdoing and error committed by their employees it causes the company a revenue loss and for worst scenario it may affect their customers’ satisfaction which may lead in losing their guests. In high-end hotel like Ritz-Carlton they cannot afford to make mistakes every time because their name always comes along with the best quality and services. It seems that their reputation compromise with their good services without being doing it again and again. In the long run, without committing mistakes it will help the company to emanate a status that their company is not just for services but able to executing their job right the first time and all the time.

4. How did the self-examination help the Ritz-Carlton win the Malcolm Baldrige National Quality Award?
They entrust Ritz-Carlton’s staff members allowing them to spend $2,000 on a guest without permission of general manager. Self-examination is beneficial in Ritz-Carlton because it helps the company to go through total quality improvement. Everyone not just the manager bears a responsibility every day.
Ritz-Carlton has a “7 day countdown control plan” that synchronizes all steps leading to the opening. They trained their employee according to the standards set of the company and expected to master their department’s key production process. Employees are also instructed in ‘Handling Guest Difficulties’ to use their empowerment in designing appropriate solution to solve costumers’ problem. They are given authority to do whatever it takes to deliver a good customer service. They quickly respond and not wanting to wait to approach the guests.
With this, it will reduce turnover and concerns that make the Ritz-Carlton Hotel Company a better place for everyone.

5. Discuss what a “self-directed team” is. What are the advantages and disadvantages (if any) of organizing employees into “self-directed team” in the Ritz-Carlton Hotel Company?
The Ritz-Carlton Hotel Company uses self-directed teams. In a self-directed work team members may have specific individual roles but the team shared accountability for meeting performance objectives. Employee teams determine work scheduling, what work need to be done, and what to do about quality problems in their own area. The advantage of self-directed work team is that they are the one who is knowledgeable in that field or department in Ritz-Carlton Hotel Company. It’s their expertise to assure that quality of products and services are able to meet and exceed the expectation of the customers. That in every aspect of their department is in good state and function very well. It is also an advantage for it gives motivation to the employees to introduce changes that they have the real view of situation. It also builds strong bond and communication in achieving goals and success of the company.