The Ritz Carlton Legendary Service from a Legendary Culture with Raving Fans

1. The Ritz CarltonLegendary Service from a Legendary Culture with Raving Fans Prepared by: James J. Messina, Ph.D.

2. The Ritz Carlton Mystique

3. “The Customer is always Right” Cesar Ritz

4. History 1850 – Cesar Ritz born in Niederwald, Switzerland 1898 – The Paris Ritz open and the Ritz-Carlton Management company formed 1910 – Ritz-Carlton Hotels are established in the United States under the supervision of Cesar Ritz 1912 – The Ritz-Carlton, Montreal opens 1918 – Cesar Ritz died and his wife Marie kept up the family business 1927 – The Ritz-Carlton, Boston opens Depression Era – The lights were kept on to portray a successful image 1964 – The Ritz-Carlton, Boston is owned and managed by Cabot, Cabot and Forbes and later by Gerald Blakely

5. History 1983 – William B. Johnson buys the Ritz-Carlton, Boston and the rights to the Ritz-Carlton name. The Ritz-Carlton Hotel Company is founded and established 1984 – Openings of the Ritz-Carlton, Buckhead; The Ritz-Carlton, Atlanta; The Ritz-Carlton, Laguna Niguel (the first resort) 1990 – Opening of the Ritz-Carlton, Sydney (first property outside the United States) 1992 – The Ritz-Carlton Hotel Co. wins Malcolm Baldrige award 1998 – The Ritz-Carlton Company became part of the Marriot International family of hotels 1999 – The Ritz-Carlton Co. wins the Malcolm Baldrige award a second time 2012 – 77 Properties worldwide

6. The Legend • The Ritz Carlton has achieved the Malcolm Baldrige Award twice, once in 1992 and again in 1999 • No other entrant in service division has been successful more than once • Highest in guest satisfaction among Luxury Hotel Chains in 2003

7. Known for its fine Service • Private bath in guest room • Lighter fabrics in rooms • White and black tie uniformed staff • Fresh cut flowers in public areas • Ala Carte dining / gourmet cuisine • Intimate smaller lobbies • Personalized guest experience

8. The Ritz CarltonCulture • The Gold Standards are the foundation of The Ritz-Carlton Hotel Company, L.L.C. They encompass the values and philosophy by which they operate and include: • The Credo • The Three Steps of service • Service Values • The Employee Promise • These Gold Standards are printed on a card carried by all employees to insure flawless service to their guests

9. The Credo • The Ritz-Carlton is a place where the genuine care and comfort of our guests is our highest mission. • We pledge to provide the finest personal service and facilities for our guests who will always enjoy a warm, relaxed, yet refined ambience. • The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.

10. The Motto At The Ritz-Carlton Hotel Company, L.L.C., "We are ladies and gentlemen serving ladies and gentlemen."  This motto exemplifies the anticipatory service provided by all staff members

11. The Three Steps of Service • A warm and sincere greeting. Use the guest's name • Anticipation and fulfillment of each guest's needs • Fond farewell - Give a warm good-bye and use the guest's name

12. Service Values 1-6 I am proud to be Ritz-Carlton • I build strong relationships and create Ritz-Carlton guests for life. • I am always responsive to the expressed and unexpressed wishes and needs of our guests. • I am empowered to create unique, memorable and personal experiences for our guests. • I understand my role in achieving the Key Success Factors and creating The Ritz-Carlton Mystique. • I continuously seek opportunities to innovate and improve The Ritz-Carlton experience. • I own and immediately resolve guest problems.

13. Service Values 7-12 I am proud to be Ritz-Carlton • I create a work environment of teamwork and lateral service so that the needs of our guests and each other are met. • I have the opportunity to continuously learn and grow. • I am involved in the planning of the work that affects me. • I am proud of my professional appearance, language and behavior. • I protect the privacy and security of our guests, my fellow employees and the company's confidential information and assets.  • I am responsible for uncompromising levels of cleanliness and creating a safe and accident-free environment.

14. Guest Relations Standards • Never lose a guest – Instant guest pacification is the responsibility of each employee – whoever receives a complaint will own it, resolve it to the guest’s satisfaction • Escort guests rather pointing out directions to another area of the Hotel

15. Customer Delight • To create loyal customers one must have a keen understanding of the customers and fulfilling their desires: • “Remember me” • “Know what I want” • “Know how I want it”

16. 3 Components of Employee Empowerment • Know what they are suppose to do • Know how well they are doing • Authority to make changes

17. The Basic Empowerment Process

18. Results of Empowerment • Each employee has access to an account to provide the magnificent customer service each guest expects • Guests remark that they are: • “Pampered” • “Respected” • “Treated like Royalty”

19. “Smile we are on Stage” • Always maintain positive eye contact • Use proper vocabulary with our guests and each other • Use words like: • “Good Morning” • “Certainly” • “I’ll be happy to” • “My pleasure”

20. “You are Ritz Carlton” Be an Ambassador of your Hotel in and outside of the workplace: Always speak positively-Communicate any concerns to the appropriate person

21. Telephone Basics Use Ritz-Carlton telephone etiquette • Answer within three rings with a “smile” • Use guest’s name when possible • When necessary ask the caller –”May I place you on hold?” • Do not screen calls • Eliminate call transfers when possible • Adhere to voice mail standards

22. Appearance • Take pride in and care of your personal appearance • Everyone is responsible for conveying a professional image by adhering to Ritz-Carlton clothing and grooming standards

23. Safety First • Think Safety First • Each Employee is responsible for creating a safe, secure and accident free environment for all guests and each other • Be aware of all fire and safety emergency procedures and report any security risks immediately

24. Protecting Ritz Carlton • Protecting the assets of a Ritz-Carlton Hotel is the responsibility of every employee • Conserve energy • Properly maintain our Hotels • Protect the environment

25. The Sixth Diamond

26. The Employee Promise • At The Ritz-Carlton, our Ladies and Gentlemen are the most important resource in our service commitment to our guests. • By applying the principles of trust, honesty, respect, integrity and commitment, we nurture and maximize talent to the benefit of each individual and the company. • The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is strengthened.

27. Business Excellence Roadmap • Plan: Develop the Roadmap to Excellence Pyramid • Do: President and COO personally demonstrate standards and hold one-on-one and group meetings, distribute the Excellence Pyramid, and reinforcement of The Gold Standards • Check: Leadership effectiveness is evaluated from semi-annual employee satisfaction survey and audit from public responsibility programs • Act: Leadership gaps result in additional training, developmental job assignments and/or improved processes, courses and/or facilities

28. Macro-Environment Analysis Plan: Confirm/Modify Vision, Strategy, Methods and Foundations Do: Select Ritz-Carlton Strategic Mandates Do: Develop Ritz-Carlton “Vital-Few” Objectives and Targets Macro-Environment Analysis

29. Macro-Environment Analysis • Check:Reviews of Strategic Plan by Vice President of Quality: monthly performance reviews of the Strategic Plan; quarterly reviews create opportunities for improvement and innovation and benchmarking • Act:Findings and Actions are deployed to lower levels through traditional hierarchy, process owners and teams, and Commitment to Quality newsletters

30. Ritz Carlton is Creating Raving Fans • According to Ken Blanchard and Sheldon Bowles it is no longer “good enough” to have satisfied customers in our service industries – our customers must be RAVING FANS! (Raving Fans by Ken Blanchard and Sheldon Bowles) • So how do we get them to be Raving Fans?

31. First Key to Creating Raving Fans Decide What you Want • If you want satisfied customers then just tell everyone: “We are no worse than our competitors” Instead: Create a Vision of perfection centered on your customer! • And then Check out on how well you are doing! • Look at what Cesar Ritz set out to do in 1898 and it is still live and well today! • He wanted his customers to always feel that they were right and that the service they received was legendary! How about you? What do you want?

32. Second Key to CreatingRaving Fans Discover What the Customers Want • Discover your customers’ vision of what they really want and then alter your vision if need be! • You must have your own vision before you can understand your customers’ vision • Your customers’ vision will likely focus on one or two things and your vision has to fill the gap • You have to know when to ignore the customers’ wants and if necessary & tell the customers to take the vision elsewhere to be fulfilled-You cannot be everything to everybody-you must be willing to be all that you can be within the window of your own vision – So do you know what your customers want?

33. Third Key to CreatingRaving Fans Deliver the Vision plus One Percent • You must always deliver all the time what your vision and your customers’ vision expect – Consistency creates Credibility–you must not only talk the talk but walk the talk • Delivering Vision plus one percent = keeps you moving ahead and focused beyond your vision – this rule reminds you that you only have to improve at a one percent rate per week and if that is the case in fifty weeks you have improved 50% - the One Percent also allows for Flexibility in the vision since visions always need to be changing, developing and altering direction based on changes customers’ expressed needs and vision • So how consistent and flexible are you in the execution of your vision?

34. You can do LegendaryWork with Raving Fans • You must commit to your vision for your organization • Listen to your Customers • Be consistent in your services and flexible in the evolution of your evolving vision

35. Resources • The Ritz-Carlton website: http://www.ritzcarlton.com/ • The Ritz-Carlton Leadership Center website: http://www.ritzcarlton.com/corporate/leadership/default.asp • Raving Fans (1993) By Ken Blanchard and Sheldon Bowles. New York: William Morrow