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MGMT E-6020Session 11

Ritz Carlton Case – Key Takeaways

• In businesses that depend on human interaction for success, the types of beliefs and values instilled by organizational leaders are crucial.– “Ladies and gentlemen serving ladies and

gentlemen”– Engage and empower employees

Ritz Carlton Case – Key Takeaways

• There is a financial benefit to RC to spend additional time training employees if it allows the hotel to open at a higher occupancy rate

• Changes in the competitive landscape may necessitate changes to the proven “Seven Day Countdown” opening process

The links in the service profit chain

4Source: HBR “Putting the Service-Profit Chain to Work,” by Heskett et al.

Service Leadership Characteristics

• Being driven by a set of core values • Seeing quality of service as the foundation

for competing• Recognizing the key role of employees in

delivering service• Giving priority to communicating with them• Having enthusiasm for the business in

which the firm is engaged.

Bright Horizons

• Employee turnover example

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Dr. Mahalee Case Discussion

1. Putting yourself in Dr. Mahalee’s shoes, how do you feel (both physically and mentally) after speaking with the receptionist at Global? What are your priorities right now?

2. As Sophia Costa, what action would you take in your first five minutes with Mahalee?

What is a successful outcome for this meeting?

• For Dr. Mahalee?

• For Sophia Costa?

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1. In Mahalee’s Shoes:

• Mentally: – Embarrassed or annoyed with himself for

arriving late? – Irritated that Kim is not there to meet with him? – Concerned about making it to his grandson’s

concert in 75 minutes?

• Physically: – Flustered? Tired? – In pain from arthritis? – Hungry and thirsty?

2. Sophia Costa’s goals for the first five minutes

• Establish rapport and learn about his background

• Apologize for Kim’s absence

• Establish how much time Mahalee has available

• Make him comfortable (beverage service etc.)

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Advice for Sophia beyond first 5 minutes

• Encourage Mahalee to talk about his financial needs, building her credibility and noting areas of her firm’s expertise as opportunity allows in the conversation– Employee buyout– Estate planning

• Learn about possible competitors Mahalee is considering and his relationship (or lack of) with Kim

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