Ritz-Carlton Presentation

Bachir El-KoussaAneez KulangaraAslan TussupzhanovAlbert Chibukhchyan

Living up to your Values

Table of Contents:

- 2 -

Ritz-Carlton’s History…………………. 3

Ritz-Carlton’s Vision and Mission……. 4

The Golden Standards…………………. 5

Ritz-Carlton’s Values…………………... 6

Human Support Systems……...……….. 7

Employee Empowerment……………… 12

The Profession of Service……………… 13

Creating Memorable Experiences…….. 14

Profit Leadership………………………. 15

References………………………………. 16

References

Ritz-Carlton was founded by Cesar Ritz in 1898. In time, the Ritz-Carlton became one of the most

famous hotel brands around the world and now it is a part of the Marriott International Group.

Profit LeadershipCreating Memorable ExperiencesThe Profession of ServiceEmployee Empowerment - 3 -

Founded by

Cesar Ritz

Albert Keller established the

Ritz-Carlton in the US and

franchised the name.

The only operating

hotel was The Ritz-

Carlton, Boston.

The rights for RC North

America was bought by

Johnson Company.

1898 1900 1940 1983 1997

Marriott

International

purchased the

Ritz-Carlton.

2015

The Ritz-Carlton

now operates a 104

hotels in 36

countries.

Human Support SystemsRitz-Carlton’s ValuesThe Golden StandardsRitz-Carlton’s Vision and MissionRitz-Carlton’s History

Ritz-Carlton’s vision is clear and inspirational. The mission statement, however, is vague as it

does not identify the stakeholders and what the organization provides them with.

Vision

“The Ritz-Carlton inspires life’s most

meaningful journeys.”

Mission

“Provide genuine care and exceptional products

and services resulting in profit leadership.”

Clear and Easy to understand.

Inspirational.

Provides Common Direction.

Defines Success.

Defines Stakeholders.

Specific and short.

Value to citizens is given.

Clear Organization purpose.

- 4 -ReferencesProfit LeadershipCreating Memorable ExperiencesThe Profession of ServiceEmployee EmpowermentHuman Support SystemsRitz-Carlton’s ValuesThe Golden StandardsRitz-Carlton’s HistoryRitz-Carlton’s Vision and Mission

Ritz-Carlton’s values are defined in their “Gold Standards”, which consists of: the three steps of

service, the motto, the credo, the employee promise, and the 12 service values.

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Three Steps

Of Service

1

A warm and sincere greeting.

Use the guest name, if and

when possible.

2

Anticipation and compliance

with guest needs.

3

Fond Farewell. Give them a

warm good-bye and use their

names, if and when possible.

ReferencesProfit LeadershipCreating Memorable ExperiencesThe Profession of ServiceEmployee EmpowermentHuman Support SystemsRitz-Carlton’s ValuesRitz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden Standards

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.

Service values1. I build strong relationships and create Ritz-Carlton guests for life.

2. I am always responsive to the expressed and unexpressed wishes and

needs of our guests.

3. I am empowered to create unique, memorable and personal

experiences for our guests.

4. I understand my role in achieving the Key Success Factors, embracing

Community Footprints and creating The Ritz-Carlton Mystique.

5. I continuously seek opportunities to innovate and improve The Ritz-

Carlton experience.

6. I own and immediately resolve guest problems.

7. I create a work environment of teamwork and lateral service so that

the needs of our guests and each other are met.

8. I have the opportunity to continuously learn and grow.

9. I am involved in the planning of the work that affects me.

10. I am proud of my professional appearance, language and behavior.

11. I protect the privacy and security of our guests, my fellow employees

and the company's confidential information and assets.

12. I am responsible for uncompromising levels of cleanliness and

creating a safe and accident-free environment.

The employee promise has the core values of the organization which include, trust, honesty,

respect, integrity, and commitment.

- 6 -ReferencesProfit LeadershipCreating Memorable ExperiencesThe Profession of ServiceEmployee EmpowermentHuman Support SystemsRitz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden Standards Ritz-Carlton’s Values

The values are embodied in Ritz-Carlton’s Human Support Systems in the form of daily line ups,

employee empowerment, training, journey maps, hiring and rewards management.

Line up Journey map TrainingHiring Rewards

RC calls it ‘Sociotechnical

system’ and it is how the

employees interact with the

system and how they make

the customer feel rather than

just process monitoring.

There are approximately 200

project teams working to

solve problems and find ways

that will make us serve

customers better.

New joiners undergo a

quality selection process –

based on traits,

characteristics and

behavioral

profiles.

Ritz values are modeled,

monitored and instilled,

Mr. Schulze himself

trains new employees.

Top performers were

sent abroad to help with

staff training (a reward

which acknowledges

your seniority). Other

rewards include: dinners,

gift certificates, and trips

to any hotel in the US.

Every morning in every

functional area or at

every shift change,

employees gather to

reinforce values, and

recollect examples of

when they were shown.

- 7 -ReferencesProfit LeadershipCreating Memorable ExperiencesThe Profession of ServiceRitz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden StandardsRitz-Carlton’s Values Employee EmpowermentHuman Support Systems

Values 8 and 9



every shift change,

employees gather to









based on traits,

characteristics and

behavioral

profiles.



Mr. Schulze himself


Top performers were



which acknowledges















customers better.


Values 5,6 and 7











customers better.



every shift change,

employees gather to









Mr. Schulze himself


Top performers were



which acknowledges







based on traits,

characteristics and

behavioral

profiles.


Values 10,11 and 12



based on traits,

characteristics and

behavioral

profiles.











customers better.



every shift change,

employees gather to







Top performers were



which acknowledges







Mr. Schulze himself



Value 4



Mr. Schulze himself




based on traits,

characteristics and

behavioral

profiles.











customers better.



every shift change,

employees gather to







Top performers were



which acknowledges






Values 8 and 9

An important role of Ritz-Carlton’s Human Support System is also to empower their employees to

create unique, memorable and personal experiences for their guests.

Freedom to spend up to $2,000 per guest per stay without the need

for approvals.

Employees concerns and recommendations are gathered, logged and

acted upon in systematic manner.

The motto: We are ladies and gentlemen serving ladies and

gentlemen.

Employees are encouraged to breakaway from routine to solve

customers problems. For prevention, problems are acknowledged in

24hrs, assigned in 48hrs, and resolved in 30 days (24-48-30 rule).

New hotels do not start with 100% occupancy until all employees

are up to speed.

Employees are

empowered to create

unique, memorable and

personal experiences

for their guests.

- 12 -ReferencesProfit LeadershipCreating Memorable ExperiencesThe Profession of ServiceRitz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden StandardsRitz-Carlton’s ValuesHuman Support SystemsEmployee Empowerment

Values 1,2 and 3

As Ritz-Carlton puts it, they are not in the hotel business. They do not just sell rooms or food.

They are in a service business and they charge for that service. Service is their profession.

Personalized pillows for customers with their initials on it.

Technology Butlers Comprised of staff technicians to assist guests with computing problems and other technological difficulties.

Discount coupons presented on silver trays, serenaded with piano

concertos.

A few examples of their services:

- 13 -ReferencesProfit LeadershipCreating Memorable ExperiencesRitz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden StandardsRitz-Carlton’s ValuesHuman Support SystemsEmployee EmpowermentThe Profession of Service

In Ritz-Carlton’s commitment to achieving quality service, there are a lot of examples of their

commitment to excellence, customer satisfaction, and creating memorable experiences.

Wooden walkway to the beach for a customer who was in a wheel

chair. Tent was setup in the beach for the couple.

The chef cleaned and cut the whole fish for the customer who

asked only for ice to put in the ice box.

Photos of toy enjoying services at Rtitz Carlton was sent to the kid who forgot his favorite toy in the

hotel on his last stay.

Some examples where memorable experiences are created:

- 14 -ReferencesProfit LeadershipRitz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden StandardsRitz-Carlton’s ValuesHuman Support SystemsEmployee EmpowermentThe Profession of ServiceCreating Memorable Experiences

The Ritz-Carlton has indeed achieved profit leadership by focusing on genuine care and

exceptional service through their Gold Standards.

The Ritz-Carlton is 2nd

in terms of RevPAR; which is an indication of profit leadership

Without the Ritz-Carlton the Average RevPAR for Marriott - North America, would drop from 109$ to 95$

Rank Group Hotel 2012 RevPAR 2013 RevPAR Avg. RevPAR

1 Starwood Hotels & Resorts St. Regis & The Luxury Collection 221.92 248.91 235.42

2 Marriott, NA Ritz-Carlton 212.34 230.82 221.58

3 Starwood Hotels & Resorts Le Méridien 198.16 213.73 205.95

4 Starwood Hotels & Resorts W 196.77 208.00 202.39

5 Marriott, NA Autograph Collection 145.96 158.87 152.42

6 InterContinental, NA InterContinental 127.73 138.59 133.16

7 Starwood Hotels & Resorts Westin 124.11 130.50 127.31

8 Marriott, NA Marriott 111.11 117.20 114.16

9 Marriott, NA Renaissance 104.89 109.30 107.10

10 Starwood Hotels & Resorts Sheraton 96.59 101.20 98.90

*RevPAR = Revenue Per Available Room

- 15 -ReferencesRitz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden StandardsRitz-Carlton’s ValuesHuman Support SystemsEmployee EmpowermentThe Profession of ServiceCreating Memorable ExperiencesProfit Leadership

References:

- 16 -Ritz-Carlton’s HistoryRitz-Carlton’s Vision and MissionThe Golden StandardsRitz-Carlton’s ValuesHuman Support SystemsEmployee EmpowermentThe Profession of ServiceCreating Memorable ExperiencesProfit Leadership References

• Reiss, Robert. "How Ritz-Carlton Stays At The Top." Forbes (2009). 19 March 2015.

http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html

• The Ritz-Carlton Hotel. www.ritzcarlton.com. 20 March 2015. 20 March 2015.

http://www.ritzcarlton.com/en/Corporate/GoldStandards/Default.html

• Clough, R. (2014, March). MARRIOTT BRANDS PERFORMANCE UPDATE. Retrieved April 3, 2015, from

http://www.boutique-hospitality.com/blog/wp-content/uploads/2014/04/HVS-In-Focus-Marriott-Brands-

Performance-Update.pdf

• Hilton: RevPAR 2014 | Statistic. (2015, January 1). Retrieved April 2, 2015, from

http://www.statista.com/statistics/297769/revenue-per-available-room-in-hilton-worldwide-hotels/

• Marriott: RevPAR by region 2014 | Statistic. (2015, January 1). Retrieved April 2, 2015, from

http://www.statista.com/statistics/271129/revpar-marriott-international-inc-hotels-worldwide/

• Snyder, J. (2014, April). INTERCONTENENTAL HOTELS GROUP. Retrieved April 2, 2015, from

http://www.hvs.com/

• Klein, N; Professor Sasser, E; Jones, T. (1999, March 5). The Ritz-Carlton: Using Information System to Better

Serve the Customer. Harvard Business Review Article. Retrieved March 20, 2015, from https://hbr.org/

• Sucher, S; Mcmanus, S. (2005, September 30). The Ritz-Carlton Hotel Company. Harvard Business Review

Article. Retrieved March 20, 2015, from https://hbr.org/

http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html

http://www.ritzcarlton.com/en/Corporate/GoldStandards/Default.html

http://www.boutique-hospitality.com/blog/wp-content/uploads/2014/04/HVS-In-Focus-Marriott-Brands-Performance-Update.pdf

http://www.statista.com/statistics/297769/revenue-per-available-room-in-hilton-worldwide-hotels/

http://www.statista.com/statistics/271129/revpar-marriott-international-inc-hotels-worldwide/

http://www.hvs.com/

https://hbr.org/

https://hbr.org/

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