World-class service quality at Ritz-Carlton
New Library World
London
1994
-----------------------------------------------------------------------------Authors:
Anonymous
Volume:
95
Issue:
1113
Start Page:
7
ISSN:
03074803
Subject Terms:
Quality of service
Hotels & motels
Customer services
Case studies
Classification Codes:
9190:
9110:
8380:
5320:
2400:
Geographic Names:
Companies:
US
United States
Company specific/case studies
Hotel & restaurant industries
Quality control
Public relations
Company Name: Ritz-Carlton Hotel Co
Abstract:
The Ritz-Carlton Hotel Company manages 27 luxury hotels which aim to be the
best in each market. According to Corporate Director of Quality Patrick Mene
- and confirmed by 3 major hotel-rating organizations - it has achieved that
already and is now aiming still higher. Mene plans to succeed in one of the
most logically complex service businesses, and he does so on the strength of a
comprehensive service quality program that is integrated into marketing and
business objectives. Hallmarks of the program include participatory executive
leadership, thorough information gathering, coordinated planning and
execution, and a trained workforce that is empowered to do what is required to
satisfy customers. Copyright MCB University Press Limited 1994
Full Text:
INTRODUCTION
From just one hotel eight years ago, the Atlanta-based Ritz-Carlton Hotel
Company has made great strides. Targeting primarily industry executives,
meetings and corporate travel planners, and affluent travellers, the company
now manages 27 luxury hotels which aim to be the best in each market.
According to Corporate Director of Quality, Patrick Mene--and confirmed by
three major hotel-rating organizations--it has achieved that already and is
now aiming still higher.
Mene plans to succeed in one of the most logically complex service businesses,
and he does so on the strength of a comprehensive service quality programme
that is integrated into marketing and business objectives. Hallmarks of the
programme include participatory executive leadership, thorough information
gathering, coordinated planning and execution, and a trained workforce that is
empowered to move heaven and earth to satisfy customers.
RITZ-CARLTON'S BUSINESS PLAN
Quality planning begins with president and chief operating officer, Hort
Schultze and the other 13 senior executives who make up the corporate steering
committee. This group, which doubles as the senior quality management team,
meets weekly to review the quality of products and services, guest
satisfaction market growth and development, organization indicators, profits
and competitive status.
The company's business plan demonstrates the value it places on goals for
quality products and services. Quality goals draw heavily on consumer
requirements identified from extensive research by the travel industry and by
the company's own customer reaction data, focus groups, and surveys. Success
relies on a management system designed to avoid the variability of service
delivery often associated with hotels, with uniform processes defined and
documented at all levels of the company.
"GOLD STANDARDS"
Key product and service requirements of the travel consumer have been
translated into "Gold Standards", which include a credo, a motto, three steps
of service and 20 "Ritz-Carlton Basics". To reinforce the importance of these
standards, the company president and other senior leaders personally instruct
new employees during a two-day orientation. Each employee is then expected to
understand and adhere to the standards, which describe processes for solving
problems guests may have, as well as detailed grooming, housekeeping, and
safety and efficiency standards. To ensure problems are resolved quickly,
workers are required to act at first notice--regardless of the type of problem
or customer complaint. All employees are empowered to do whatever it takes to
provide "instant pacification". No matter what their normal duties are, other
employees are expected to assist if aid is requested by a fellow worker while
responding to a guest's complaint or wish.
The company is confident this emphasis is on the mark, rewarding customers
and, ultimately, the company itself. "Get the features right, the elements
that give guests the 'feel good' factor, and there is real benefit to the
guest in terms of service and reliability--and it makes Ritz-Carlton the clear
choice for discriminating travellers", says Mene.
And it goes further than that. As in other industries, a brand leader has
advantages which translate into an opportunity to charge premium prices, or to
turn all or some of that benefit back and operate from a lower cost base. This
is Mene's present task now the earlier rapid expansion has slowed; ensuring
that the features, already seen as effective and reliable, are delivered
efficiently in all the company's hotels.
EMPLOYEE TRAINING, RESPONSIBILITY AND COMMITMENT
The company trains employees with a thorough orientation, followed by on-thejob training, then job certification. Corporate values are reinforced
continuously by daily "line-ups", frequent recognition for extraordinary
achievement, and a performance appraisal based on expectations identified and
explained during the orientation, training and certification processes.
Much of the responsibility for ensuring high-quality guest services and
accommodation rests with employees. Surveyed biannually to ascertain their
levels of satisfaction and their understanding of quality standards, workers
are keenly aware that excellence in guest services is a top hotel and personal
priority. A full 96 per cent of all employees surveyed singled out this
priority--even though increase in staff numbers in the late 1980s and early
1990s was dramatic. There is a pay-off for the company here too: "Involving
employees in changing and improving our systems--taking note of their ideas,
interest and concerns--produces real value for the company and at the same
time helps keep staff turnover down", says Mene. Other benefits follow;
reduced staff training costs, and a higher proportion of experienced staff
familiar with the standards expected.
Teams and other mechanisms also work to cultivate employee commitment. For
example, each work area is covered by three teams responsible for setting
quality-certification standards for each position, problem solving and
strategic planning. At each level of the company--from corporate leaders to
managers and employees in individual work areas--teams are charged with
setting objectives and devising action plans, which are reviewed by the
corporate steering committee.
THE MONITORING OF DATA
Daily quality production reports, derived from data submitted from each of 720
work areas in the hotel system, serve as an early warning system for
identifying problems that can impede progress towards meeting quality and
customer satisfaction goals. Coupled with quarterly summaries of guest and
meetings-planner reactions, the combined data are compared with predetermined
customer expectations to identify areas for further improvement. Among the
data monitored over time are guest room preventive maintenance cycles per
year, the percentage of check-ins with no queuing, and time spent to service
occupied guest rooms.
From automated building and safety systems to computerized reservation
systems, Ritz-Carlton uses advanced technology to full advantage. For example,
each employee is trained to note guest's likes and dislikes. These are entered
in a computerized guest history profile that provides information on the
preferences of the company's 240,000 repeat guests, resulting in a still more
personalized service.
CONCLUSION
The aim of these and other customer-focused measures is not simply to meet the
expectations of guests but to provide them with a "measurable visit".
According to surveys conducted by an independent research firm, 92-97 per cent
of guests do leave with that impression. "World-class", says Mene, "but never
good enough. Constant and continuous attention to quality improvement will
help to maintain our standing in the marketplace."
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