The Ritz-Carlton Hotel Co. Quality Troy Jan 1993 -----------------------------------------------------------------------------Volume: 32 Issue: Start ISS#: Su&'e(t Terms: a!

e: 1 2" $3%$993% Total )uality Quality o* ser+i(e ,r!anizational &eha+ior Hotels - motels .m/loyee in+ol+ement Customer satis*a(tion Case stu0ies 12ar0s 919$: 911$: "3"$: 532$: 25$$: 26$$: 3S Com/any #ame: Ritz-Carlton Hotel Co 3S Com/any s/e(i*i(4(ase stu0ies Hotel - restaurant in0ustries Quality (ontrol ,r!anizational &eha+ior u&li( relations

Classi*i(ation Co0es:

7eo!ra/hi( #ames: Com/anies:

1&stra(t: The Ritz-Carlton Hotel Co. 8RCHC9 2as a2ar0e0 a 1992 :al(olm ;al0ri!e #ational Quality 12ar0 in the (ate!ory o* ser+i(e (om/anies. Tar!etin! /rimarily in0ustry e<e(uti+es= (or/orate tra+el /lanners= an0 a**luent tra+elers= RCHC mana!es 25 lu<ury hotels that /ursue the 0istin(tion o* &ein! the &est in ea(h mar>et. It 0oes so on the stren!th o* a (om/rehensi+e ser+i(e )uality /ro!ram that is inte!rate0 into mar>etin! an0 &usiness o&'e(ti+es. Hallmar>s o* the /ro!ram in(lu0e /arti(i/atory e<e(uti+e lea0ershi/= in*ormation !atherin!= (oor0inate0 /lannin! an0 e<e(ution= an0 a 2or>*or(e em/o2ere0 to !o to !reat len!ths to satis*y (ustomers. 1ll em/loyees are s(hoole0 in the (om/any?s !ol0 stan0ar0s= 2hi(h set out its ser+i(e (re0o an0 &asi(s o* /remium ser+i(e. .a(h em/loyee is e</e(te0 to un0erstan0 an0 a0here to these stan0ar0s= 2hi(h 0es(ri&e /ro(esses *or sol+in! /ro&lems !uests may ha+e as 2ell as 0etaile0 !roomin!= house>ee/in!= sa*ety= an0 e**i(ien(y stan0ar0s. Co/yri!ht Hit(h(o(> u&lishin! Com/any Jan 1993 @ull Te<t: The Ritz-Carlton Hotel Co. 8RCHC9 aims to su((ee0 in one o* the most lo!isti(ally (om/le< ser+i(e &usinesses. Tar!etin! /rimarily in0ustry

e<e(uti+es= meetin! an0 (or/orate tra+el /lanners= an0 a**luent tra+elers= the 1tlanta-&ase0 (om/any mana!es 25 lu<ury hotels that /ursue the 0istin(tion o* &ein! the &est in ea(h mar>et. It 0oes so on the stren!th o* a (om/rehensi+e ser+i(e )uality /ro!ram that is inte!rate0 into mar>etin! an0 &usiness o&'e(ti+es. Hallmar>s o* the /ro!ram in(lu0e /arti(i/atory e<e(uti+e lea0ershi/= in*ormation !atherin!= (oor0inate0 /lannin! an0 e<e(ution= an0 a traine0 2or>*or(e em/o2ere0 Ato mo+e hea+en an0 earthA to satis*y (ustomers. ,* these= (ommitte0 em/loyees ran> as the most essential element. 1ll are s(hoole0 in the (om/any?s A!ol0 stan0ar0s=A 2hi(h set out RCHC?s ser+i(e (re0o an0 &asi(s o* /remium ser+i(e. RCHC is a mana!ement (om/any that 0e+elo/s an0 o/erates lu<ury hotels *or B.;. Johnson ro/erties= also in 1tlanta. In 19"3= B.;. Johnson a()uire0 e<(lusi+e 3S ri!hts to the Ritz-Carlton tra0emar>= a name asso(iate0 2ith lu<ury hotels *or 1$$ years. RCHC o/erates 23 &usiness an0 resort hotels in the 3S an0 t2o hotels in 1ustralia= has nine international sales o**i(es= an0 em/loys 11=5$$ /eo/le. T2o su&si0iary /ro0u(ts= restaurants an0 &an)uets= are mar>ete0 hea+ily to lo(al resi0ents. Quality /lannin! &e!ins 2ith /resi0ent an0 C., Horst S(hulze an0 13 senior e<e(uti+es 2ho ma>e u/ the (or/orate steerin! (ommittee. This !rou/= 2hi(h 0ou&les as the senior )uality mana!ement team= meets 2ee>ly to re+ie2 the )uality o* /ro0u(ts an0 ser+i(es= !uest satis*a(tion= mar>et !ro2th an0 0e+elo/ment= or!anizational in0i(ators= /ro*its= an0 (om/etiti+e status. .a(h year= e<e(uti+es 0e+ote a *ourth o* their time to )uality-relate0 matters. The (om/any?s &usiness /lan 0emonstrates the +alue it /la(es on !oals *or )uality /ro0u(ts an0 ser+i(es. These !oals 0ra2 hea+ily on (onsumer re)uirements 0eri+e0 *rom e<tensi+e resear(h &y the tra+el in0ustry an0 the (om/any?s (ustomer rea(tion 0ata= *o(us !rou/s= an0 sur+eys. The /lan relies on a mana!ement system 0esi!ne0 to a+oi0 the ser+i(e +aria&ility tra0itionally asso(iate0 2ith hotels. 3ni*orm /ro(esses are 2ell-0e*ine0 an0 0o(umente0 at all le+els. C.D ;1SICS Cey /ro0u(t an0 ser+i(e re)uirements o* the tra+el (onsumer ha+e &een translate0 into the !ol0 stan0ar0s= 2hi(h in(lu0e a (re0o= motto= three ste/s o* ser+i(e= an0 2$ ARitz-Carlton &asi(s.A .a(h em/loyee is e</e(te0 to un0erstan0 an0 a0here to these stan0ar0s= 2hi(h 0es(ri&e /ro(esses *or sol+in! /ro&lems !uests may ha+e as 2ell as 0etaile0 !roomin!= house>ee/in!= an0 sa*ety an0 e**i(ien(y stan0ar0s. Com/any stu0ies /ro+e that this em/hasis is on the mar>= /ayin! 0i+i0en0s to (ustomers an0= ultimately= to Ritz-Carlton. The (or/orate motto is Ala0ies an0 !entlemen ser+in! la0ies an0 !entlemen.A To /ro+i0e su/erior ser+i(e= Ritz-Carlton trains em/loyees 2ith a thorou!h orientation= *ollo2e0 &y on-the-'o& trainin!= then 'o& (erti*i(ation. RitzCarlton +alues are rein*or(e0 (ontinuously &y 0aily Aline u/s=A *re)uent re(o!nition *or e<traor0inary a(hie+ement= an0 a /er*orman(e a//raisal &ase0 on e</e(tations e</laine0 0urin! the orientation= trainin!= an0 (erti*i(ation /ro(esses. To ensure /ro&lems are resol+e0 )ui(>ly= 2or>ers are re)uire0 to a(t at *irst noti(e re!ar0less o* the ty/e o* /ro&lem or (ustomer (om/laint. 1ll em/loyees are em/o2ere0 to 0o 2hate+er it ta>es to /ro+i0e Ainstant /a(i*i(ation.A #o

matter 2hat their normal 0uties are= other em/loyees must hel/ 2hen as>e0 &y a *ello2 2or>er 2ho is res/on0in! to a !uest?s (om/laint or 2ish. :u(h o* the res/onsi&ility *or ensurin! hi!h-)uality !uest ser+i(es an0 a((ommo0ations rests 2ith em/loyees. Sur+eye0 annually to as(ertain their le+els o* satis*a(tion an0 un0erstan0in! o* )uality stan0ar0s= 2or>ers are a2are that e<(ellen(e in !uest ser+i(es is a to/ hotel an0 /ersonal /riority. 1 *ull 9% /er(ent o* all em/loyees sur+eye0 in 1991 sin!le0 out this /riority= e+en thou!h the (om/any ha0 a00e0 3=$$$ ne2 em/loyees in the /re(e0in! three years. 1t ea(h le+el o* the (om/any= teams are (har!e0 2ith settin! o&'e(ti+es an0 0e+isin! a(tion /lans that are re+ie2e0 &y the (or/orate steerin! (ommittee. In a00ition= ea(h hotel has a )uality lea0er 2ho ser+es as a resour(e an0 a0+o(ate as teams an0 2or>ers 0e+elo/ an0 im/lement their )uality /lans. Teams an0 other me(hanisms (ulti+ate em/loyee (ommitment. @or e<am/le= ea(h 2or> area is (o+ere0 &y three teams res/onsi&le *or settin! )uality-(erti*i(ation stan0ar0s *or ea(h /osition= /ro&lem sol+in!= an0 strate!i( /lannin!. The &ene*its o* 0etaile0 /lannin! an0 the han0s-on in+ol+ement o* e<e(uti+es are e+i0ent 0urin! the se+en 0ays lea0in! u/ to the o/enin! o* a ne2 hotel. Rather than o/enin! it in /hases 8the in0ustry /ra(ti(e9= Ritz-Carlton aims to ha+e e+erythin! ri!ht 2hen the 0oor o/ens to the *irst (ustomer. 1 se+en-0ay (ount0o2n (ontrol /lan syn(hronizes all ste/s lea0in! to the o/enin!. The (om/any /resi0ent an0 other senior lea0ers /ersonally instru(t ne2 em/loyees on the !ol0 stan0ar0s an0 )uality mana!ement 0urin! a t2o-0ay orientation. 1 s/e(ially sele(te0 start-u/ team (om/risin! sta** *rom other hotels aroun0 the (ountry ensures all 2or> areas= /ro(esses= an0 e)ui/ment are rea0y. Eaily )uality /ro0u(tion re/orts= 0eri+e0 *rom 0ata su&mitte0 *rom ea(h o* the F2$ 2or> areas in the hotel system= ser+e as an early 2arnin! *or i0enti*yin! /ro&lems that (an im/e0e /ro!ress to2ar0 meetin! )uality an0 (ustomersatis*a(tion !oals. Cou/le0 2ith )uarterly summaries o* !uest an0 meetin! /lanner rea(tions= the (om&ine0 0ata are (om/are0 2ith /re0etermine0 (ustomer e</e(tations to im/ro+e ser+i(es. 1mon! the 0ata !athere0 an0 tra(>e0 o+ertime are !uest room /re+enti+e maintenan(e (y(les /er year= /er(enta!e o* (he(>-ins 2ith no )ueuin!= time s/ent to a(hie+e in0ustry-&est (lean room a//earan(e= an0 time to ser+i(e an o((u/ie0 !uest room. @rom automate0 &uil0in! an0 sa*ety systems to (om/uterize0 reseation systems= Ritz-Carlton uses a0+an(e0 te(hnolo!y to *ull a0+anta!e. @or e<am/le= ea(h em/loyee is traine0 to note !uest li>es an0 0isli>es. These 0ata are entere0 in a (om/uterize0 !uest history /ro*ile that /ro+i0es in*ormation on the /re*eren(es o* 26$=$$$ re/eat RCHC !uests= resultin! in more /ersonalize0 ser+i(e. The aim o* these an0 other (ustomer-*o(use0 measures is not sim/ly to meet the e</e(tations o* !uests &ut to /ro+i0e them 2ith a Amemora&le +isit.A 1((or0in! to sur+eys (on0u(te0 *or RCHC &y an in0e/en0ent resear(h *irm= 92 to 9F /er(ent o* the (om/any?s !uests lea+e 2ith that im/ression. Re/ro0u(e0 2ith /ermission o* the (o/yri!ht o2ner. @urther re/ro0u(tion or 0istri&ution is /rohi&ite0 2ithout /ermission.