1. What is the essence of The Ritz Carlton experience? What is The Ritz Carlton selling?

They are selling service. They are not a hotel business, but a service business (pg 13). Managers
are driven to reduce all defects that are within their power. 5% if unsatisfied customers equals
200,000 unsatisfied customer or $300 million in lost revenue. They wish to ensure that every
guest is fully and completely satisfied, that this is their temporary home and should be treated as
such.
2. At the heart of The Ritz Carlton approach is the commitment to their values and culture.
Describe what it means to be Ladies & Gentlemen Serving Ladies & Gentlemen. How do
they create Ladies and Gentlemen in only 7 days?
They begin orientation by discussing the values of the company to ensure this concept is really
driven home. We are Ladies and Gentlemen, just as the guests are, who we respect as Ladies
and Gentlemen. We are Ladies and Gentlemen and should be respected as such (pg 12).
3. What do they do to make sure that employees continue to provide excellent service?
We respect our employees. The issue of respect is a philosophical issue that is driven by our
leadership...So a
successful business is one that is capable of enlisting an employee not only for his muscles and
his labor, but also for his brain, his heart, and his soul (pg 6). Deep respect leads to satisfaction
and commitment (pg 6). Day 21 event to see if Ritz had lived up to its promises to employees.
Employees are not punished for mistakes, so the culture is designed that mistakes are not
hidden, but resolved.
4. Describe the role of management/leadership in the opening of the new Ritz Carlton.
Managers play an active role during the interview and hiring process. Managers are also
responsible for the satisfaction of new employees during the time between hire date and start
date. Managers ensure that employees feel welcome and treat them like guests to the hotel.
There was a demand on mangers to maintain the Ladies and Gentlemen serving Ladies and
Gentlemen philosophy. Managers are told to share their vision and have employees buy into it;
do not make them objects or tools in accomplishing the vision, but partners in the vision.
Managers also participate in training.
5. Should The Ritz Carlton fundamentally change its hotel opening system? Why or why not?
Be sure to justify, provide pros and cons, and address innovation experimentation in your
response.
This has seemed to be a tried and true method for Ritz, so there does not seem to be a reason to
fix what isn't broken. Even though the there is an initial loss in the first few months due to
occupancy, the first few guests that do arrived are given excellent service. Additional explicit
training is not the best answer, because when put into practice the new employees could be
overwhelmed and drive dissatisfaction. Allows them to practice quality service instead of
quantity service.