OOOOO GIoGhana ? 4:06 PM 'Y 'r Ritz-Carlton CASE STUDY.pdf Done QUALITY IN PRACTICE-SERVICE QUALITY AT THE RITZ-CARLTON HOTEL COMPANY, L.L.C35 Source: Adapted from the Malcom Baldridge National Quality Award Application Summaries of the Ritz-Carlton Hotel Company, L.L.C. Cheri Henderson, "Putting on the Ritz," TQM Magazine 2, no. 5 (November-December 1992), 292-296 Caesar Ritz defined the concept of a luxury hotel in the 18905. In 1992, The Ritz-Carlton Hotel Company, LLC. became the first hospitality organization to receive the Malcolm Baldrige National Quality Award; in 1999 they became the second company to win the award a second time, a testament to their continuous journey of improvement. The hotel industry is a very competitive business, one in which consumers place great emphases on reliability, timely delivery, and value. The Ritz-Carlton focuses on the principal concerns of its main customers and strives to provide them with highly personalized, caring service. Attention to employee performance and information technology are two of the company's many strengths that helped it to achieve superior quality. The Ritz-Carlton operates from an easy-to-understand definition of service quality that is aggressively communicated and internalized at all levels of the organization. Its Three Steps of Service, Motto, Employee Promise, Credo, and Service Values-collectively known as the Gold Standards-are shown in Figure 2.2, and instilled in all I employees through extensive training approaches. They allow employees to think and act independently with innovation for both the benefit of the customer and the company. Figure 2.2 The Ritz-Carlton Three Steps of Service, Motto, and Credo THE RITZ-CARLTO CREDO The Ritz-Carlton Hotel is a place where the THREE STEPS "We Are genuine ca re and CF SERVlCE comfort of our guests is 1 Ladies and our highest mission. We pledge to provide the Gentlemen finest personal service and facilities for our Serving guests who will always 2 enjoy a warm, relaxed Anticipation and compliance Ladies and yet refined ambience. with guest needs. The Ritz-Carlton 3 Gentlemen " experience enlivens the senses, instills well- being, and fulfills even the unexpressed wishes and needs of our guests. A warm and sincere greeting. Use the guest name, if and when possible. Fond farewell. Give them a warm good-bye and use their names, if and when possible. Source: Adapted from the Malcom Baldridge National Quality Award Application Summaries of the Ritz-Carlton Hotel Company, LLC, 1998 The Ritz-Carlton uses many sources of information to understand its customers. These include alliances with travel partners such as airlines and credit card companies; focus groups and customer satisfaction results; complaints, claims, and feedback from the sales force; customer interviews; travel industry publications and studies; and even special psychological studies to understand what customers mean, not what they say, and how to appeal to the customer in the language they most understand. A formal strategic planning process sets business directions to achieve the company's long-term vision: "To Be the Premier Worldwide Provider of Luxury Travel and Hospitality Products and Services." Upper managers at the corporate and hotel level conduct monthly performance reviews of the strategic plan, focusing on key indicators that reflect employee