Bob kharazmi ritz carlton hotel

Ritz-Carlton

BACKGROUND OF THE INDUSTRY

A search the “Ritz-Carlton” website revealed the history of the lavish hotel and the man responsible for its creation. According to information gained from the website, the history of The Ritz-Carlton Hotel Company, L.L.C. originates with The Ritz-Carlton, Boston. The standards of service, dining and facilities of this Boston landmark serve as a benchmark for all Ritz-Carlton hotels and resorts worldwide. The legacy of The Ritz-Carlton, Boston begins with the celebrated hotelier Cesar Ritz, the “king of hoteliers and hotelier to kings.” His philosophy of service and innovations redefined the luxury hotel experience in Europe through his management of The Ritz Paris and The Carlton in London. The Ritz-Carlton, Boston revolutionized hospitality in America by creating luxury in a hotel setting: private bath in each guest room; lighter fabrics in the guest room to allow for more thorough washing; white tie and apron uniforms for the wait staff, black tie for the Maitre d’ and morning suits for all other staff, conducive to a formal, professional appearance; extensive fresh flowers throughout the public areas; a la carte dining, providing choices for diners; gourmet cuisine, utilizing the genius and cooking methods of Auguste Escoffier; and intimate, smaller lobbies for a more personalized guest experience. Cesar Ritz died in 1918 but his wife Marie continued the expansion of hotels bearing his name. In the United States, The Ritz-Carlton Investing Company was established by Albert Keller who bought and franchised the name. In 1927 The Ritz-Carlton, Boston, opened and other hotels followed in New York (at Madison and 54th), Philadelphia, Pittsburgh, Atlantic City and Boca Raton. However, by 1940 none of the hotels were operating except The Ritz-Carlton, Boston. The hotel embodies the vision of Cesar Ritz, Yankee ingenuity and Boston social sensibilities (http://corporate.ritzcarlton.com/en/About/OurHistory.htm). Established in 1983 with the purchase of The Ritz-Carlton, Boston and the rights to the name Ritz-Carlton. The management company has grown from one hotel to 77 hotels worldwide with plans for further expansion in Europe, Africa, Asia, the Middle East and the Americas. The Ritz-Carlton Hotel Company is an independently operated division of Marriott International, Bethesda, Md. It also has major service training operations in its Ritz-Carlton Learning Institute and Ritz-Carlton Leadership Center, created by Ritz-Carlton executive (emeritus) Leonardo Inghilleri, where nearly 50,000 executives from other companies worldwide have been trained in the Ritz-Carlton principles of service.

The Ritz-Carlton Hotel Company, L.L.C. develops and operates luxury hotels for others. The hotels are designed and identified to appeal to and suit the requirements of its principal customers who consist of: (1) Meeting Event Planners and (2) Independent Business and Leisure Travelers (http://corporate.ritzcarlton.com/NR/rdonlyres/22E2CEC9-62A4-4EA2-9C3C-51628265E10E/0/rcappsum.pdf). “Forbes” website states that Ritz-Carlton has become a leading brand in luxury lodging by rigorously adhering to its own standards. It is the only service company in America that has won the Malcolm Baldridge National Quality Award twice, and Training Magazine has called it the best company in the nation for employee training. Its unique culture starts with a motto: "We are ladies and gentlemen serving ladies and gentlemen." One of its remarkable policies is to permit every employee to spend up to $2,000 making any single guest satisfied. Ritz-Carlton codifies its expectations regarding service in "The 12 Service Values," "The Credo," "The Three Steps of Service," "The 6th Diamond" and other proprietary statements that are taught to all 38,000 employees throughout 73 properties in 24 countries (http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html).

I researched a large amount of information regarding the financial standing of the Ritz-Carlton. Through all of the research, I was unable to find any numbers for the Ritz-Carlton. I believe that this because there re many different divisions within the organization and the numbers are not all compiled into one document in one location for each year the business in in service.

CORPORATE CULTURE AND MANAGEMENT

The Ritz-Carlton has a credo rather than a mission statement. According to the “Ritz-Carlton” website, The Ritz-Carlton Hotel 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 (http://corporate.ritzcarlton.com/en/about/goldstandards.htm).

“Travel Weekly” website states that Marriott International is undertaking an ambitious corporate makeover that will split it into four autonomous divisions around the globe and bring many formerly independent Ritz-Carlton brand operations into Marriott’s corporate offices. Many of Ritz-Carlton's operations are being streamlined into the corporate structure as Marriott works to set up what Sorenson described as four "continental" offices, each of which will have its own president and resources to operate independently. Each region will have its own teams for all the necessary operations like sales and marketing, revenue management, procurement and finance (http://www.travelweekly.com/Travel-News/Hotel-News/Marriott-company-restructuring-to-streamline-Ritz-Carlton/). Based on information gained from the “Ritz-Carlton” website, the executive officers are the President and Chief Operations Officer, Herve Humler, the Chief Financial Officer, Peter Cole, and the Global Officer, Worldwide Operations, Bob Kharazmi.

From the “Forbes” website, I learned that decision making is based three fundamentals. First, location--making sure we get absolutely the best location, where our luxury customers want to stay. Second, product--building the right physical product for what our guests want today and what they will want tomorrow, which means an investment of between $500,000 and over $1 million per room. That's the platform. Third, people--our ladies and gentlemen serving ladies and gentlemen. They animate the platform. But you must get the first two right. If you're not in the right location, or if you don't have the right physical product, then employees, ladies and gentlemen, can only do so much (http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html).

MOTIVATIONAL STRATEGIES

Through an article from “Expert Magazine” website I learned that the now-popular term “empowerment” originated with the Ritz-Carlton. Gutierrez put a dollar figure on the employee’s resources for solving a problem immediately, without checking with a supervisor. Our new employee Katherine can commit up to $2,000 of the hotel’s funds to bring instant resolution to a guest’s problem. Clearly, an employee cannot evade difficult situations by uttering, “That’s not my job.” Job descriptions become irrelevant when guest satisfaction is at risk. Ladies and Gentleman step outside job boundaries, and no one questions their right to act—because they have an overriding obligation to settle issues (http://www.expertmagazine.com/EMOnline/RC/part2.htm).

This website goes on to say that to choose from the numerous job aspirants, van Grinsven noted that the Ritz-Carlton studied top performers in other organizations, to develop the ideal “profile” for each position. “We looked at what made these employees give exceptional performance,” he explained. “Then we developed job descriptions, and detailed qualifications, for comparable jobs in our properties. Some might say we ‘benchmarked’—that is, we used workers in other high caliber companies as our models.” The result? Employee turnover declined. The Ritz-Carlton enjoys the lowest turnover rate of any hotel in the industry. Additionally, for employee selection the Ritz-Carlton uses the services of Talent+, an international human resources firm, based in Lincoln, Nebraska. Talent+ adds objectivity to the selection process, and helps assure that new employees will bring full commitment to the Ritz-Carlton tradition and service (http://www.expertmagazine.com/EMOnline/RC/part2.htm). From the “Ritz-Carlton” website I learned that the Ritz-Carlton encourages employees to strive for continual personal and professional development. We believe strongly in the value of training and the impact it can have on you and our guests. Because of this, as a new employee, you receive a minimum of 310 hours of training within your first year of service and are paired with Departmental Trainers to ensure you understand the skills, knowledge and standards necessary to successfully complete your job. Throughout your career, you are encouraged to continue to participate in a variety of dynamic personal and professional development courses offered on a regular basis. As expressed in The Employee Promise, "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." (http://corporate.ritzcarlton.com/en/careers/faqs.htm)

Through the “Ritz-Carlton” website it was discovered that, in today's business world, rewarding exceptional employees and loyal clients has never been more crucial. And, the gift of travel is always appreciated. For those achievers, we offer The Ritz-Carlton Incentive Awards for a memorable experience that is every bit as exceptional as they are. Memories start with their desired worldwide destination, opening a world of possibilities. The Ritz-Carlton Incentive Awards are available at various price and destination levels. Also available are The Ritz-Carlton TravelCard, The Ritz-Carlton Currency and The Ritz-Carlton Spa Experience Awards (http://www.ritzcarlton.com/en/Retail/IncentiveAwards.htm).

The “Ritz-Carlton” website explains that the Ritz-Carlton considers the health and well-being of its employees to be one of its highest priorities. We are pleased to offer an array of benefits designed to meet the needs of today’s changing workforce. These benefits include: competitive wages; promotions/transfers; career development programs; two day orientation; on-the-job training; well-tailored uniforms; employee recognition programs; medical, dental, vision coverage; life and accidental death & dismemberment insurance; short and long term disability; health care and family care spending accounts; domestic partner benefits; vacation, sick/personal and holiday pay; retirement 401(k) plan; employee stock purchase plan; employee assistance program; business integrity line; educational assistance program; employee discounts on hotel rooms, restaurant outlet meals and retail items; and complimentary employee meals.

“1to1media” website lets us know that if any company leads in setting the gold standard for service, it’s the Ritz-Carlton, whose commitment to quality is not just part of the company’s philosophy, it’s part of the employees’ DNA. The company began its commitment to quality in 1983 with such simple touches as fresh flowers throughout its hotels, white ties and aprons, and gourmet cuisine. It also established its Gold Standards for customer service—which include its credo, motto, employee promise, three steps of service, and the 12 service values—leading the company to repeatedly outperform its competition, increase customer loyalty (the average guest spends $250,000 at a Ritz over his lifetime), and win the Malcolm Baldridge National Quality Award twice (http://www.1to1media.com/view.aspx?DocID=30068&m=n).

Looking at managerial roles, I learned through “jenjobs” website that those in a managerial role are responsible for the management and coordination of all aspects of the Front Office functions including financial results, and quality and service standards. They also direct, implement and evaluate the quality of products and services given to customers and employees (http://www.jenjobs.com/jobs/jobdetails.php?apply=0&update=0&emid=1014223&jid=144394&type=0).

Goals and objectives at the Ritz-Carlton are clearly explained through the “media.ft.com” website. There it is explained that the three goals of our organization are financial results, customer satisfaction and employee satisfaction. These goals are not exclusive from each other. They are very closely interrelated. Without satisfied and engaged employees, there is no way we could ever achieve excellent financial results and guest satisfaction (http://media.ft.com/cms/5aa22940-74a7-11db-bc76-0000779e2340.pdf).

Cornell Hotel and Restaurant Administration Quarterly speaks directly to the topic of performance appraisals. Within the document, it is written that the Ritz-Carlton values are reinforced continuously by daily "line ups," frequent recognition for extraordinary achievement, and a performance appraisal based on expectations explained during the orientation, training, and certification processes. Once our employees become certified, performance appraisals are nothing more than a recertification, so that training can become a continuous process. We also ask our people to contribute to the process by identifying problems and working to solve them."

Through “Businessweek” website I discovered the leadership style at the Ritz-Carlton. There it was stated that The New Gold Standard is primarily intended to help managers, owners, and leaders understand the driving principles, processes, and practices that have generated unusual staff loyalty, world-class customer engagement, and significant brand equity for Ritz-Carlton. However, it also provides perspective on those same principles from the viewpoint of frontline workers (both customer facing and non–customer facing), customers, and other stakeholders. Whether you wish to attract, hire, and retain the "right" employees, are interested in producing transformational customer experiences, or are looking for ways to maintain the relevance of your product and service offerings, The New Gold Standard shares the wisdom of Ritz-Carlton leadership. Ritz-Carlton leaders are responsible for stewarding an icon in the luxury market, through a constant quest for excellence, to continue its success in a changing global economy and with changing customer needs. Even in areas of international growth, succession planning, finding the best location for your business, or determining meaningful quality enhancements, Ritz-Carlton offers a rich tapestry of leadership successes and breakdowns that can help you shorten your path to greater success (http://www.businessweek.com/managing/content/jun2008/ca20080625_920931.htm).

ANALYSIS

“American Management Association” website writes that while training at Ritz-Carlton is a rigorous process of identifying committed service professionals, individuals come to the company with varying levels of technical skill and backgrounds both inside and outside the hospitality industry. New staff members are assigned learning coaches who train and certify them on the core competencies of their jobs. Ritz-Carlton has effectively developed structured approaches to help staff members understand and embrace the company’s culture during both new hotel openings and the new-hire onboarding process. In each case, the transfer of corporate knowledge is highly valued both in terms of certifiable operational standards and cultural identity and history. Over time Ritz-Carlton leadership has developed a very sophisticated process of making training a person-to-person journey that results in the inculcation of corporate values and mission (http://www.amanet.org/training/articles/Training-the-Talented-the-Ritz-Carlton-Way.aspx).

REFERENCES

American Management Association (2008). Training the Talented, the Ritz-Carlton Way. Retrieved April 21, 2012 from http://www.amanet.org/training/articles/Training-the-Talented-the-Ritz-Carlton-Way.aspx.

Businessweek (2008). How the Ritz-Carlton Hotel Company Is Redefining the Gold Standard. Retrieved April 21, 2012 http://www.businessweek.com/managing/content/jun2008/ca20080625_920931.htm.

ExpertMagazine (2003). "My Pleasure" - The Ritz-Carlton Hotel PART II. Retrieved April 21, 2012 from http://www.expertmagazine.com/EMOnline/RC/part2.htm.

Forbes (2009). How Ritz-Carlton Stays At The Top. Retrieved April 21, 2012 from http://www.forbes.com/2009/10/30/simon-cooper-ritz-leadership-ceonetwork-hotels.html.

Jenjobs (2011). Company Description. Retrieved April 21, 2012 from http://www.jenjobs.com/jobs/jobdetails.php?apply=0&update=0&emid=1014223&jid=144394&type=0.

Media.ft.com (2001). The Portman Ritz-Carlton: Setting up our Ladies and Gentlemen for Success. Retrieved April 21, 2012 from http://media.ft.com/cms/5aa22940-74a7-11db-bc76-0000779e2340.pdf

1to1Media (2007). Inside the Ritz-Carlton's Revolutionary Service. Retrieved April 21, 2012 from http://www.1to1media.com/view.aspx?DocID=30068&m=n.

The Ritz-Carlton (2012). Gold Standards. Retrieved April 21, 2012 from http://corporate.ritzcarlton.com/en/about/goldstandards.htm.

The Ritz-Carlton (2012). Our History. Retrieved April 21, 2012 from http://corporate.ritzcarlton.com/en/About/OurHistory.htm.

The Ritz-Carlton (2012). Career FAQs. Retrieved April 21, 2012 from http://corporate.ritzcarlton.com/en/careers/faqs.htm

The Ritz-Carlton (2012). Incentive Awards. Retrieved April 21, 2012 from http://www.ritzcarlton.com/en/Retail/IncentiveAwards.htm

The Ritz-Carlton (1999). The Ritz-Carlton Hotel Company, L.L.C. at a Glance. Retrieved April 21, 2012 from http://corporate.ritzcarlton.com/NR/rdonlyres/22E2CEC9-62A4-4EA2-9C3C-51628265E10E/0/rcappsum.pdf

Travel Weekly (2009). Marriott company restructuring to streamline Ritz-Carlton. Retrieved April 21, 2012 from http://www.travelweekly.com/Travel-News/Hotel-News/Marriott-company-restructuring-to-streamline-Ritz-Carlton/