The Ritz-Carlton

THE RITZ-CARLTON TOKYO

Case Application

Making You Say Wow

When you hear the name The Ritz-Carlton Hotels, what words come to mind? Luxurious? Elegant? Formal, or maybe even stodgy? Way beyond my budget constraints? Three words that the company hopes comes to mind are exemplary customer service. Ritz-Carlton is committed to treating its guests like royalty. It has one of the most distinctive corporate cultures in the lodging industry, and employees are referred to as "our ladies and gentlemen. "Its motto is printed on a card that employees carry with them: "We are Ladies and gentlemen serving Ladies and Gentlemen." And these ladies and gentlemen of Ritz have been trained in very precise standards and specification for treating customers. These standards were established more than a century ago by founders Caesar Ritz and August Escoffier. Ritz employees are continually schooled in company lore and company values. Every day at 15-minute"lineup" sessions at each hotel property, managers reinforce company values and review service techniques. And these values are the basis for all employee training and rewards. Nothing is left to chance when it comes to providing exemplary customer service. Potential hires are tested both for cultural fit and for traits associated with an innate passion to serve. A company executive says, "The smile has to come naturally. "Although staff members are expected to be warm and caring, their behavior toward guests had been extremely detailed and scripted. That's why a new customer service philosophy implemented in mid-2006 was such a radical departure from what the Ritz had been doing.

The company's new approach is almost the opposite from what the company had been doing: Don't tell employees how to make guests happy. Now they're expected to figure it out. Says Diana Oreck, vice president, "We moved away from that heavily prescriptive, scripted approach and toward managing to outcomes." The out-come didn't change, though. The goal is still a happy guest who's wowed by the service received. However, under the new approach, staff member interactions with guests are more natural, relaxed, and authentic rather than sounding like they're recited lines from a manual.

Discussion Questions

1- Using Exhibit 3-2 and the information from this case ,describe the culture at The Ritz-Carlton. Why do you think this type of culture might be important to a luxury hotel? What might be the drawbacks of such a culture?

2- What challenges do you think the company faced in changing the culture? What is the Ritz-Carlton doing to maintain this new culture?

3- What kind of person do you think would be happiest and most successful in this culture? How do you think