A Systematic Approach for Making Innovation a Core Competency

John C. Timmerman

Two-time Baldrige winner, The Ritz-Carlton

applies a four-step innovation process that

fully engages employees’ creativity to craft

service experiences that delight customers.

A Systematic Approach for

Making Innovation a Core Competency

The Ritz-Carlton must be agile in responding to evolving customer

expectations and the introduction of competing brands. Through its sys-tematic approach to innovation, we tap into employees’ full potential to deliver genuine and unscripted service experiences. This article describes our innovations process and its research foundation.

Innovation can be sourced exter-nally by connecting companies with independent inventors, market-ready concepts, or new ventures that have market-ready concepts (Nambisan and Sawhney). Alternatively, innova-tion can be grown internally through strategic research and development or more informal processes that encourage benchmarking and employee ideas. The four-step innovation process (Figure 1) was developed from a research-based approach by analyzing the current body

of knowledge from credible publications that included the Harvard Business Review and the American Society for Quality. Proven practices were identified from a benchmarking study of external orga-nizations that have a well-established core competency of innovation such as Disney, Corning Incorporated, and Cisco, Systems, Inc.

Internal focus groups were conducted to collect design requirements and ensure the model could be transferred effectively to The Ritz-Carlton culture. The four-step innovation process was designed with environmental factors at the core of the model to promote a culture of innova-tion that transcends any individual step of the model. The environmental factors of inspiring vision, providing recogni-tion, and encouraging risk-taking foster an atmosphere of employee empower-ment. Factors in the model related to stimulating ideas, benchmarking, and

The Journal for QualiTy & ParTiciPaTion January 20094

www.asq.org/pub/jqp 5

testing ideas strengthen employee innovation and benchmarking. Effective implementation of the process involved integrating it with the Green Book, The Ritz-Carlton’s approach to winning the prestigious Malcolm Baldrige National Quality Award twice (1992 and 1999); training programs; company-wide communication; and performance management systems.

Overview and Scope

RationaleThere is a strong consensus among business

leaders, academia, and consultants that people are the most important resource of any organization. Although metrics and estimations vary, research-ers and organizational experts agree that most companies do not yield the full potential of the work force. Most previous management theory involved methods for making workers’ “hands” produce more work. Recent advances in industrial psychology have identified that this is an incom-plete paradigm, and Curt Coffman (author and leading expert in employee engagement) empha-sizes that people are comprised of a “head” and “heart” in addition to their “hands.”

The industrial revolution of the 20th century ushered in an era of management practices that helped improve productivity by organizing work in large factories or providing production-based incentives. These early methods yielded diminish-ing returns as workers fulfilled their economic needs, and the United States began shifting from a manufacturing to a service- and technology-based economy. The manufacturing economy relied upon faster hands to improve worker yield.

Figure 1: Four-Step Innovation Process

1.InspireVision

3.Stimulate

Ideas

4.TestIdeas

2.Foster

Environment

Provide Recognition

Promote Benchm

arking

Enco

urag

e Ri

sk

Figure 2: Employee Engagement Groups—U.S. Working Population*

14%

Actively DisengagedThese employees are physically present but psychologically absent. They are unhappy with their work situation and insist on sharing this unhappiness with their colleagues.

44%

Not EngagedThese employees may be productive, but they are not psychologically connected to their company. They are more likely to miss workdays and more likely to leave.

42%

EngagedThese employees are loyal and psychologically committed to the organization. They are more productive and more likely to stay with their company for at least a year.

Source: The Gallup Organization (*Percentages reflect 2007 Gallup Q12 database figures)


The new service and technology economy requires better utilization of workers’ hearts and heads.

Innovation was previously restricted to top management in the manufacturing era because only a few people were responsible for product design and manufacturing techniques. In the new service economy, the customers walk into your factory (the hotel) and formulate their opinions from their experience and not exclusively from the utility of the physical product.

Current StateFostering an environment of innovation helps

The Ritz-Carlton unleash the talent of the work force to deliver memorable guest experiences. Additionally, innovation accelerates service break-throughs by leveraging employee creativity and response to rapidly changing markets and compet-itive offerings. The Gallup Organization estimates that only 42 percent of the U.S. work force is fully engaged (see Figure 2).

Although The Ritz-Carlton employee engage-ment levels exceeded the national average, there still was a significant opportunity to increase employee engagement and get more employees involved in “brick building” as shown in Figure 2. Innovation methods and tools are catalysts that encourage employee ideas and participation in running the business, unlocking employee innovation, and empowering people.

Research and Analysis

Research PlanThe research plan to develop the four-step inno-

vation process included both new and secondary research to provide a robust framework. New research involved soliciting recommendations and best practices from external organizations such as the U.S. Quality Council and from internal prac-titioners in the field including the area directors of quality. Secondary research and information included books, published papers, and Internet searches. The plan balanced quantitative data from published sources with qualitative informa-tion from interviews, identifying the most effective approaches for spreading innovation across an organization.

Definition and Scope of InnovationThe research and design of the innovation

model was anchored to this definition: “Innovation

means making meaningful change to improve an organization’s products, services, programs, processes, operations, and business model and to create new value for the organization’s stake-holders.” (2008 Criteria for Performance Excellence, National Institute of Standards and Technology)

Body of KnowledgeThe review of secondary research included

four books, published between 2002 and 2007, and nine publications issued in 2006 or 2007 to review the most current theory and practices. A list of these support materials is available online at www.asq.org/pub/jqp. Most of the body of knowledge gravitated around methods for stimu-lating creativity; less emphasis was placed on the implementation processes because the former area involves evaluating ideas that can impede creative thinking.

Methods for Stimulating and Organizing IdeasResearch in neuroscience illustrates the impor-

tance of cognitive processes in the generation of creative thoughts. The brain is the main engine that underpins creativity and can be stimulated through brain exercises such as crossword puzzles or improvisation (Gilkey and Kilts). Once the brain engine is running and the creative juices start flowing, it’s important to get people “think-ing outside the box.” Andy Stefanovich, founder of the innovation firm Play, takes clients outside their normal work environments and exposes them to new stimulus such as an art museum to help them shift mental gears. Directional inquiries, such as “imagine perfection” or “look beyond the boundaries of our business,” stimulate breakthrough thinking (Coyne et al.). Discoveries are possible through observational methods such as shadowing, visual diaries, and customer labs (Goncalves). Flipcharts and notepaper are ade-quate for recording thoughts and observations, but the surplus must be organized into a manage-able framework. Mind maps or affinity diagrams are simple methods of organizing related ideas into categories, providing a visual framework to communicate and stimulate new thoughts (Levesque and Walker). Databases are useful to organize ideas, but there is a general consensus among practitioners that technology can become a barrier if important considerations such as ease of access, input, and retrieval are not addressed. Here


is a summary of the key findings on what the brain needs to stimulate and organize ideas.

Exercise (e.g., thinking games and •improvisation).

Displacement (e.g., new environment).•

Stimulation (e.g., questions and observations).•

Organization (e.g., affinity diagrams and mind •maps).

External BenchmarkingAn e-mail based survey was administered to

members of the U.S. Quality Council. This group is comprised of quality professionals at the vice president and director level for a diverse group of manufacturing and service organizations such as Hewlett-Packard, Johnson & Johnson, Xerox Corporation, 3M, Corning Incorporated, and

Cisco Systems, Inc. The survey and participant list are included in the online portion of this article. A follow-up two-day site visit was conducted at Cisco Systems Inc. and Corning Incorporated to perform a more in-depth investigation of their innovation culture, methods, and tools. Additional innovation best practices were col-lected from participation in the 2007 American Society for Quality Innovation Conference and Executive Forum.

A thematic analysis identified important factors from the benchmarking data, as shown in Table 1, which represent the most important factors that were considered in the design of our innovation model. These findings were shared with the U.S. Quality Council to validate the interpretation of the data and during the 2007 regional general manager meeting to make certain they resonated with The Ritz-Carlton culture.

Internal Focus GroupsThis area was explored further through internal

focus groups conducted in 2007 with area directors of quality. This group was selected because of its members’ practical field experience in managing and facilitating innovation processes. The focus groups were asked to identify key methods of an innovation model. The verbatim comments were categorized into four critical steps and sequenced in a systematic order to facilitate an efficient appli-cation of the model, shown in Table 2. Then, the verbatim comments were distilled into key meth-ods to provide practical points for addressing the critical steps.

Summary of FindingsThe themes found in the body of knowledge,

external benchmarking surveys, and internal focus group were transcribed into a key theme matrix to identify specifications for the innovation model (Table 3). A horizontal scan of the matrix by source and requirement shows that the more dominant requirements include environment dis-placement, mental stimulation, leadership, team formation, and collection of inputs. The require-ments then were used to develop specifications for the innovation model with particular empha-sis placed on the more dominant requirements. A vertical scan of the matrix indicates that the more dominant specifications included environment and stimulation.

Leadership Senior leaders use a +/• Δ at the conclusion of their planning processes, e.g., identifying process strengths and opportunities for improvement.

Senior leaders create an ongoing •dialog to promote innovation and benchmarking, e.g., asking employees for their ideas and challenging them to look outside the organization.

Methods Provide an informal process to •generate ideas such as an Internet Wiki that feeds into a more formal engineering process.

Create a common language, •e.g., improvement is reducing defects, whereas innovation involves adding value to the product or process.

Recognition Place more emphasis on •recognition than rewards with interpersonal recognition having the most impact, e.g., thank you from senior leaders.

Make rewards relevant, e.g., pay •utilities for energy-saving idea.

Table 1: Important Factors for Promoting a Culture of Innovation


Innovation Model

Four-Step Innovation ProcessThe four-step innovation process was constructed

from the design specifications found in the summary of findings. The model was tested to ensure it satisfied the business and research objectives that included:

Systematic approach for achieving the key success •factors of driving employee empowerment and innovation and embracing product and service benchmarking.

Research-based, incorporating proven best •practices.

Transferable to The Ritz-Carlton’s culture.•

Effective in creating a culture of innovation.•

The four-step innovation process was designed with environmental factors at the core of the model to promote a culture of innovation that transcends any individual step of the model. The environmental factors of inspiring vision, providing recognition,

and encouraging risk taking all foster an atmosphere of employee empowerment. Factors in the model related to stimulating ideas, benchmarking, and testing ideas strengthen employee innovation and benchmarking.

Steps 1 and 2: Establish Vision and Environment (The Art of Leadership)

The first two steps of the process consist of inspiring a vision and fostering an environment for innovation—these are leadership responsi-bilities. Inspiring the vision is important to ensure that creativity is anchored to an inspirational goal or burning-platform issue. The Gallup research indicates that creating belief in a shared purpose is a critical factor in employee motivation. Without such an inspiring vision, ideas might be generated without context and fall on unfertile ground.

Fostering an environment of innovation is at the core of the process because positive recogni-tion for ideas sets a tone in the work environment

Critical Steps Key Methods

Provide context1. Communicate the business need for innovation.•

Align innovation efforts with the business strategy and key outcomes.•

Provide success criteria for ideas.•

Conduct customer 2. research

Observe how the customer uses the product and service.•

Learn why customers go somewhere else.•

Identify the value proposition for customers.•

Create a stimulating 3. environment

Form a team:

Select diverse functions, talents, and skills.•

Conduct brainstorming in a stimulating and unrestrictive environment.•

Reward risk taking and recognize the sharing of ideas.•

Ask provoking questions:

How can we take something generic and make it personal?•

What if we start with a clean slate?•

How can we integrate new technology into existing processes?•

Collect inputs:

Conduct benchmarking outside our industry.•

Identify emerging trends.•

Collect a thousand ideas from a hundred different sources.•

Select and test ideas4. Provide criteria for selecting ideas.•

Test, refine, and pilot ideas.•

Implement ideas through the nine-step quality improvement process.•

Table 2: Key Methods for an Innovation Model


that employee ideas are valued. Although not every employee expects that his/her idea will be imple-mented, employees do expect that their ideas will be recognized.

Promoting benchmarking within and outside The Ritz-Carlton is another leadership responsibil-ity that helps stimulate new ideas. Benchmarking is most powerful when employees can see the opportunity for innovation through their own eyes and then translate it to the context of their work processes. Innovation requires that leadership encourage employees to take risks by experiment-ing with new ideas. This can be accomplished concurrently with delivering defect-free service by giving employees a safe zone to test ideas.

Steps 3 and 4: Stimulate and Test Ideas (The Science of Ideation)

The first two steps of the process involve the art of leadership because they require creating a set of conditions to promote employee engagement in the model. The next two steps, stimulating and testing ideas, are part of the management function because they involve scientific methods and tools. These steps start the planting, growing, and harvesting of ideas from the fertile ground that was created in the first two steps. Various approaches can stimu-late ideas, such as selecting a diverse team, asking thought-provoking questions, or studying actual customer behavior. Once the ideas are ready for harvest, organize them into related categories with

Source Requirement

Specifications for the Innovation Process

Vis

ion

Envi

ron

men

t

Rec

ogn

itio

n

Ben

chm

arki

ng

Ris

k

Stim

ula

tio

n

Test

Body of Knowledge

Brain Exercise• X X

Environmental Displacement• X X X

Mental Stimulation• X X X

Idea Organization• X X

External Benchmarking Survey

Leadership• X X X

Methods• X X

Recognition• X

Internal Focus Group

Context• X

Customer Research• X X

Stimulating Environment•

Form a Team• X X X

Ask Provoking Questions• X X

Collect Inputs• X X X

Select and Test Ideas• X X

X Represents a relationship between requirement and specification. X Denotes a dominant theme.

Table 3: Key Theme Matrix


an affinity diagram. The affinity diagram serves as a reference document for the test and experimenta-tion of new ideas. The creation of learning cycles is the overall goal during the testing of new ideas.

Idea ImplementationIdeas can percolate and slowly morph into pro-

cesses or they can take a quicker and more direct route toward implementation. The direct route requires a vehicle to help ideas in crossing the chasm from testing to a final product or service. An idea evaluation matrix is useful in assigning weights of importance and allowing team mem-bers to allocate points for each idea. The matrix is a decision-support tool that highlights the impact and trade-off between ideas, but is not intended to automate the selection process.

After selecting an idea, the nine-step quality improvement process (QIP), shown in Figure 3,

is used for implementation. It is best to begin by ensuring the output, customers, requirements, and promises are defined clearly—the design stage of the process—before advancing to steps five through seven—the control stage of the process.

SummarySince the introduction of its four-step inno-

vation process, The Ritz-Carlton has leveraged employee ideas effectively and efficiently, improv-ing its ability to create exceptional experiences for its customers. Inspired by our values and dedicated to engaging employees completely, this process creates learning cycles that not only help us rapidly respond to customers’ evolving needs but also to improve our organizational knowledge and capabilities on a long-term basis.

Acknowledgments: The author thanks Ana Laura Solis, RC Naples, and Ana Brant, RC Boston Common, for leading the first two innovation pilots, which are reviewed in the online content.

More Online Much more information related to this article is available

at www.asq.org/pub/jqp. In addition to the bibliography of resources The Ritz-Carlton used to generate its four-step innovation process, a presentation of the process’ application, including photos, apears.

John C. TimmermanJohn Timmerman is corporate vice president of operations for The Ritz-Carlton Hotel Company. He is responsible for food and beverage, culinary, meetings and special events, rooms, purchasing, and customer relationship management. Timmerman is a certified Hotel Administrator by The American Hotel and Lodging Association. In 2007, he received ASQ’s Ishikawa Medal for his contributions to the human aspects of quality. He is a Senior member of the American Society for Quality and is a Certified Quality Auditor, Quality Engineer, and Manager of Quality/Organizational Excellence. Timmerman serves as a senior examiner for the Malcolm Baldrige National Quality Award (2005-08) and co-chair of the U.S. Quality Council. He can be contacted at [email protected].

Figure 3: Nine-Step Quality Improvement Process

1. Identify Output

Desi

gnCo

ntro

lIm

prov

e

2. Identify Customers

3. Identify Customer Requirements

4. Translate Requirements Into Promises

5. Identify Steps in the Work Process

6. Select Measurements

7. Determine Process Adequecy

Can ItProduceOutput

ProduceOutput

TransferKnow-How

Six-StepProblemSolvingProcess

IsThere aProblem

Six-StepProblemSolvingProcess

8. Evaluate Results

9. Recycle


John C. Timmerman

Information That Provided a Foundation for Developing The Ritz-Carlton’s Four-Step Innovation Process

Bibliography

Internal Publications

Daniela Garcia, “CUE: Creative Use of Empower-ment,” The Ritz-Carlton Hotel Company, 2006.

Hermann Elger, “The Innovatron,” The Ritz-Carlton Hotel Company, 2007.

External Publications

Baldrige National Quality Program, “2008 Criteria for Performance Excellence,” NIST (National Institute of Standards and Technology), 2007.

Kevin P. Coyne, Patricia Gorman Clifford, and Renée Dye, “Breakthrough Thinking From Inside the Box,” Harvard Business Review, Dec. 2007, pp. 71-78.

Roderick Gilkey and Clint Kilts, “Cognitive Fitness,” Harvard Business Review, Nov. 2007, pp. 53-66.

Alexis P. Goncalves, ‘Innovation: Five Effectiveness Capabilities,” Innovation Specialist, Sept. 2007.

Justin Levesque and H. Fred Walker, “The Innovation Process and Quality Tools,” Quality Progress, July 2007, pp. 18-22.

Satish Nambisan and Mohanbir Sawhney, “A Buyer’s Guide to the Innovation Bazaar,” Harvard Business Review, June 2007, pp. 109-118.

Morten T. Hansen and Julian Birkinshaw, “The Innovation Value Chain,” Harvard Business Review, June 2007, pp. 121-130.

Books

Malcolm Gladwell, Blink: The Power of Thinking Without Thinking, Little Brown & Company, 2005.

W. Chan Kim, Blue Ocean Strategy, Harvard Business School Press, 2005.

Clayton M. Christensen, Innovator’s Dilemma, HarperCollins Publishers, 2003.

Malcolm Gladwell, The Tipping Point: How Little Things Can Make a Big Difference, Little Brown & Company, 2002.

External Benchmarking Survey

Benchmarking Survey Participants:ASQ Innovation Conference •

American Society for Quality Executive Forum •(included Disney)

U.S. Quality Council, including: 3M, Abbott •Laboratories, Alcoa, Allegheny Energy, Inc., Corning Incorporated, Cisco, Systems, Inc., FedEx, Hewlett-Packard, IBM, Johnson & Johnson, Milliken & Company, and Xerox Corporation

Internal Focus GroupFourteen managers provided input that led to

development of the following critical process steps:

Create a stimulating environment (32 responses).•

Conduct customer research (20 responses).•

Provide context (12 responses).•

Select and test ideas (9 responses).•

There also were six other comments.

onlInE-only contEnt

John C. Timmerman

Putting the Four-Step Innovation Process to Work

The Ritz-Carlton’s four-step innovation process was developed from a research-based approach that incorporated theories and suggested practices from thought leaders in the field, experiences of other organizations, and input from internal managers. It is designed to promote an overall culture of innovation and foster an atmosphere of employee empowerment by inspiring vision, promoting benchmarking, providing recognition, and encouraging risk taking.

Figure 1 provides an example of inspiring a vision and fostering an innovative environment, the first step steps of the innovation process for The Ritz-Carlton’s goal to increase hotel food and beverage revenue by 25 percent.

Often innovation conjures a mental image of someone getting a dazzling idea in the shower or a group of executives playing with Tinkertoys® to inspire brilliance. Although some people occasion-ally do get an idea in the shower and regressing to one’s childhood can feel good, it isn’t a systematic

approach for establishing an innovation process that’s anchored to real business goals. It’s impor-tant; therefore, that the innovation process helps the organization solve a chronic problem or create a product/service that enhances its competitive advantage. This involves the first step of inspir-ing a vision for the innovation process. Define the vision so that it can be measured and provide direction, but it should not be so prescriptive that it stifles creativity.

For example, The Ritz-Carlton Naples leader-ship team asked the innovation team to create a price premium for its club-level guest rooms. This stimulated many ideas for accomplishing the goal; however, management didn’t tell the inno-vation team to add more product features to the guestrooms because that would have been too pre-scriptive, and the team might not have invented a breakthrough idea. Following the four-step innova-tion process, the team created a unique and private beach experience that is sold with the club-level


onlInE-only contEnt

Figure 1: Four-Step Innovation Process—Steps 1 and 2, Establish Vision and Environment

1.InspireVision

Example:First Class Card for ExternalBenchmarking

Example:Emphasize Learning OverImmediate Success

Example:Conduct InnovationSession at Shopping Mall

Example:Visit High PerformanceRestaurants

Example:Increase Food and BeverageRevenue by 25%

3.Stimulate

Ideas

4.TestIdeas

2.Foster

Environment

Provide Recognition

Promote Benchm

arkingEn

cour

age

Risk


guestrooms to enhance revenue. The team discov-ered that the guestroom features were second to the beach experience for the leisure customers. If the direction had been too tactical, they might have implemented larger flat-panel televisions in the guestrooms, which would have provided customers marginal value, whereas having a private concierge service on the beach is almost priceless.

Figure 2 shows this example’s corresponding information for the third and fourth steps of the

innovation process, stimulating and testing ideas. A diverse team, representing both internal and external perspectives, used the three questions below to stimulate ideas:

What if we start with a clean slate?•

What does perfection look like?•

When do customers become fully engaged?•

Brainstorming and observing customer behav-ior generated answers to these questions, which

Figure 2: Four-Step Innovation Process—Steps 3 and 4, Stimulate and Test Ideas

Select DiverseTeam MembersHourly and Salary:• Sales• Culinary• Finance• Concierges

External• Luxury Retailer

Note:Teams should ideallybe eight or fewer in size

Ask provokingquestions

What if we start witha clean slate?

What does perfectionlook like?

Observe customerbehavior

When do customersbecome fullyengaged?

Example:Affinity Diagram

Less Than90-MinuteCycle Time

Less Than20-MinuteCycle Time

SeatingComfort

AnticipateNeeds

LargePortions

ModernDecor

Relaxedand Fun

Steak &Fish

UpbeatMusic

ServiceFoodAmbiance

Example:Trial feeding ofnew menu withemployees.

Experiment withnew menu duringlow-volume mealperiods.

1.InspireVision

3.Stimulate

Ideas

4.TestIdeas

2.Foster

Environment

Provide Recognition

Promote Benchm

arking

Enco

urag

e Ri

sk


subsequently were categorized into an affinity dia-gram. Innovative ideas were tested and evaluated with the affinity diagram information used as a reference for evaluating the merit of each idea.

Studying customer behavior and taking an inven-tory of your current assets are powerful methods for identifying pain points for customers and leverag-ing your capital. The Ritz-Carlton Boston Common observed that a rainy day can put a damper on sightseeing, thus, leaving guests disappointed and roaming the public spaces to pass time. The inno-vation team combined this observation with the identification that the hotel artwork is a valuable asset that could be leveraged by creating podcast video tours for guests. Often times, customers can-not articulate an innovative idea. I have interviewed hundreds of customers, asking, “Is there any other product or service we could provide?” and receiv-ing a null response in most instances. Studying customer behavior, however, helps stimulate ideas for the innovation process. In the case of Boston Common, the customers didn’t ask for a video-pod art tour but their boredom on rainy days helped

stimulate the innovative idea. Too often we try to fix defects without understanding organizational strengths and maximizing our capital.

The idea evaluation matrix (Table 1) documents the criteria used to assess the proposed ideas. This decision-support tool helps team members determine the impacts and trade-offs among the potential innovations, helping them to select the most viable option to implement.

Once an inventive solution is chosen, the four-step innovation process links to The Ritz-Carlton’s nine-step quality improvement process where a detailed design is established and a control system is developed. This approach ensures integration of the innovation into the company’s existing system, ensuring smooth connectivity with other processes and staging it for continuous improvement over the long term.

The Ritz-Carlton’s video art tour at its Boston Common Hotel and club-level service at its Naples hotel were created using the four-step innovation model. Click on this link insert link here to see photos of these examples.

Criteria Weight Idea 1 Idea 2 Idea 3 Idea 4

Mystique 10% 40 30 10 10

Customer Engagement 25% 45 20 30 30

Employee Engagement 15% 5 10 20 10

Product and Service Excellence 15% 5 20 10 30

Financial Performance 35% 5 20 30 20

Total Points 19 20 24 22

Table 1: Idea Evaluation Matrix

INNOVATION CASE STUDY

The Ritz-Carlton, Boston Common

The Fine Art of Living

STRENGTHENING SCENOGRAPHY

A FOUR-STEP INNOVATION PROCESS

2.

Foster Environment

1.

Inspire

Vision

4.

Test

Ideas

3.

Stimulate

Ideas

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Provide Recognition


SCENOGRAPHY: CURRENT STAGE

THEME: THE FINE ART OF LIVING

BACKGROUND: FINE ART COLLECTION▪ THE COLLECTION INCLUDES LOCAL CONTEMPORARY ARTISTS

WHO ARE STILL “CREATING” THEIR NAMES AND STYLES▪ A BROCHURE, DESCRIBING THE FINE ART AROUND THE HOTEL

HAS BEEN CREATED IN 2001 - NEEDS REFRESHMENT▪ EMPTY “PRIME LOCATION” SPACE FOR THE ARTWORK IN THE

LOBBY LOUNGE

BACKGROUND: OPPORTUNITIES▪ SCENES” ARE IN PLACE▪ “MOMENT IN TIME” IS IN PLACE▪ LADIES AND GENTLEMEN ARE FAMILIAR WITH THE THEME OF THE

HOTEL; HOWEVER, THEY FIND IT DIFFICULT TO DESCRIBE▪ ENLIVEN FIVE SENSES NOT ENLIVENED▪ SIXTH SENSE MISSING


SCENOGRAPHY: DESIRED STAGE

THEME: THE FINE ART OF LIVING

GOAL:“STIMULATE UNIQUE, MODERN, AND STATE-OF-THE-ART EXPERIENCE FOROUR GUESTS WHILE ENLIVENING FIVE SENSES AND TRIGGERING THESIXTH SENSE THROUGH EXPERIENCE AND KNOWLEDGE”


INSPIRE VISION


2.

Foster Environment

1.

Inspire

Vision

4.

Test

Ideas

3.

Stimulate

Ideas

Pro

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INSPIRE VISION

COMMUNICATE BUSINESS NEEDS FOR INNOVATION

▪ CASUAL CONVERSATION IN THE LOBBY LOUNGE ABOUT SCENOGRAPHY (HOTELTHEME)(BETWEEN DIRECTOR OF OPERATIONS AND QUALITY ANALYST)

▪ FORMED A SMALL PILOT TEAM THAT WILL FOCUS ON SCENOGRAPHY AT LEISURE(GUEST SERVICES MANAGER, GUEST RELATIONS MANAGER, QUALITY ANALYST, AND DIRECTOR OFOPERATIONS)


ENVIRONMENTAL DISPLACEMENT

▪ STIMULATE NEW IDEAS AND BREAKTHROUGH THINKING

▪ INVITATION TO A SPECIAL EVENT AT THE LOCAL ART GALLERY (PILOT TEAM ATTENDED)

▪ ALL FIVE SENSES INCLUDED; SIXTH SENSE STIMULATED THROUGH LEARNING &EXPERIENCE

INSPIRE VISIONLET IDEAS FLOW▪ THE DAY AFTER THE SPECIAL EVENT AT MODERN ART GALLERY, A RECAP MEETING

WAS CONDUCTED(PILOT TEAM ATTENDED)

MEETING AGENDA▪ REFLECTION ON THE EVENT▪ THOUGHTS/IDEAS/SUGGESTIONS▪ WHAT DID WE LEARN?▪ HOW DID THE EVENT MAKE US FEEL?

IDEAS GENERATED DURING THE MEETING▪ PARTNER WITH ART GALLERY

(“RENT” EMPTY LOBBY LOUNGE LOCATION AND HAVE GALLERY REPRESENTATIVE DO A LOBBYAMBASSADOR SHIFT WHILE SHOWCASING THEIR ART)

▪ CREATE PODCAST/ITOUR FOR THE CURRENT ART COLLECTION IN THE HOTEL▪ CREATE SPECIAL EVENTS IN PARTNERSHIP WITH MODERN ART GALLERY

(INVITE PROMINENT AND WELL KNOWN ARTISTS TO HOST AN EVENT AT THE CLUB LOUNGE, BOOKSIGNING, ETC.)

▪ SELECT SIGNATURE PIECE OF ART THAT WILL BE SHOWCASED THROUGHOUT THEHOTEL

▪ SELECT SIGNATURE BACKGROUND LOBBY MUSIC▪ SELECT SIGNATURE SENT▪ COMPLEMENT THE THEME WITH THE F&B EDITIONS – CHOCOLATE EXTRAVAGANZA


PROVIDE RECOGNITION


2.

Foster Environment

1.

Inspire

Vision

4.

Test

Ideas

3.

Stimulate

Ideas

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Provide Recognition


PROVIDE RECOGNITION

NIGHT OUT▪ DIRECTOR OF OPERATIONS TOOK THE TEAM FOR A DINNER

AFTER THE SUCCESSFUL RECAP MEETING

VERBAL RECOGNITION▪ TEAM MEMBERS PROVIDED RECOGNITION TO EACH OTHER

COMPLIMENTING IDEAS AND HUNGER FOR INNOVATION

SPECIAL PROJECT▪ SATISFACTION FOR BEING PART OF A SPECIAL PROJECT,

NOT INCLUDED INTO “JOB DESCRIPTION”▪ ABILITY TO CREATE, INNOVATE, AND SET STANDARDS FOR

HOSPITALITY INDUSTRY


FOSTER ENVIRONMENT


2.

Foster Environment

1.

Inspire

Vision

4.

Test

Ideas

3.

Stimulate

Ideas

Pro

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Provide Recognition


FOSTER ENVIRONMENT

OBSERVE CUSTOMER INTERACTION▪ THE PILOT TEAM MADE A FEW MORE VISITS TO THE GALLERY TO OBSERVE

CUSTOMER INTERACTION

KEY FINDINGS – WHY CUSTOMERS LEAVE:ON MANY OCCASIONS, CUSTOMERS FELT “UNCOMFORTABLE” ASKING QUESTIONS THINKING THEYWILL SOUND UNINFORMED OR NOT KNOWLEDGEABLE IF NOW KNOWING, I.E., WHAT TECHNIQUE ISUSED ON SPECIFIC PIECE OF ART

KEY FINDINGS – WHY CUSTOMERS STAY:▪ HIGH ENGAGEMENT

EVERY CUSTOMER IS APPROACHED ON A PERSONALIZED LEVEL, COMMON INTEREST/THEMEBETWEEN STAFF AND CUSTOMERS

▪ LEARNING/EDUCATIONAL EXPERIENCE – 6TH SENSECUSTOMERS ARE PROVIDED WITH FACTS AND FIGURES ABOUT ART AND ARTISTS, WHICH CREATESEDUCATIONAL EXPERIENCE

▪ APPROACHABLE AND FRIENDLY STAFF


FORM A TEAM – IN-HOUSE TEAMTHE PILOT TEAM FORMED THE SCENOGRAPHY TEAM(ADDITIONAL TEAM MEMBERS – F&B, FRONT OFFICE, EXECUTIVE OFFICE, COMMUNICATION & MSE)

PROMOTE BENCHMARKING


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PROMOTE BENCHMARKING

BENCHMARKING SUMMARY

▪ EDUCATIONAL EXPERIENCEALL THREE BENCHMARKING PRACTICES PROVIDE EDUCATION EXPERIENCE TO THEIRCLIENTS/GUEST

▪ INTERACTIVE ACTIVITIESTWO OUT OF THREE BENCHMARK COMPANIES USE PLANNED ACTIVITIES THAT INCLUDEGUESTS/CLIENTS AND STAFF MEMBERS

▪ INCORPORATION OF FOOD AND BEVERAGE ACTIVITIESONE OUT OF THREE BENCHMARKS USE FOOD AND BEVERAGE OUTLETS TO ENHANCE EXPERIENCEAND TO ADD VALUE/REVENUE

▪ MOMENT IN TIME EXPERIENCEALL THREE BENCHMARKS ARE INVITING ARTISTS TO CONDUCT INTERVIEWS, REFLECTIONS,OBSERVATIONS, AND MOST IMPORTANT INTERACTION AND EDUCATION OF CUSTOMERS

▪ USE OF MODERN/CONTEMPORARY DEVICES TO PROMOTE ARTTWO OUT OF THREE BENCHMARK COMPANIES USE MOBILE PHONES, VIDEOS, AND OTHER DEVICESTO PROMOTE FINE ART AND MAKE IT MORE APPROACHABLE TO CLIENTS


STIMULATE IDEAS


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STIMULATE IDEAS

IDEAS STIMULATED SELECT A SIGNATURE ARTWORK

SIGNATURE ARTWORK WILL BE SHOWCASED THROUGHOUT THE HOTEL (MEETINGROOMS DOOR CARDS, BUFFET DISPLAYS, GUEST AMENITIES, POST CARDS, ROOMKEYS, TURNDOWN CARDS)

▪ SELECT A SIGNATURE SCENT

▪ PURCHASE COFFEE TABLE BOOKS FOR THE LOBBY LOUNGE “THE GALLERY”

▪ SELECT A SIGNATURE AMENITY

▪ SCENTED CANDLES FOR FLOWER DECORATIONS

▪ PURCHASE ART INSPIRED BUFFET DISPLAYS/FRAMES

▪ LOBBY LOUNGE “THE GALLERY MENUS”

▪ MENUS - COVER PAGE OF THE MENU FEATURES SIGNATURE ARTWORK

▪ CREATE THE FINE ART I-TOUR

▪ THE FINE ART EVENTS


STIMULATE IDEAS

SIX SENSE DIAGRAM


TEST IDEAS


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TAKE RISK & TEST IDEAS

THE FINE ART EVENT▪ PROCESS

▪ INVITATIONS EXTENDED TO ALL IN HOUSE GUESTS AND RESIDENCES▪ LOCAL MODERN GALLERY INVITED THEIR TOP CLIENTS TO THE EVENT TO

EXPOSE THE RITZ-CARLTON, BOSTON COMMON

▪ SUMMARY

▪ GREAT WAY TO ENGAGE WITH GUESTS▪ MANY GUESTS WHO ATTENDED WERE FANS OF ARTIST'S WORK AND WERE

DELIGHTED TO PURCHASE HIS BOOKS WITH A SPECIAL PERSONALIZEDDEDICATION

▪ CLUB RESIDENCE HEARD ABOUT THE EVENT AND EXPRESSED WISH TOPARTNER IN FUTURE EVENTS

▪ LESSONS LEARNED

▪ PERFORM A SMALL SCENARIO PLANNING BEFORE DECIDING ON THE NEXTEVENT

▪ EDUCATE CONCIERGE ABOUT THE ARTIST AND THE EVENT SO THEY FEELMORE COMFORTABLE “SELLING”


INNOVATION CASE STUDY

The Ritz-Carlton, Naples

Club Beach

INNOVATION MODEL


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Club BeachClub BeachInnovation Process

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4-Step IP4-Step IP

1. Inspire the Vision1. Inspire the Vision

a. Operations Strategic Plan GT Meeting

b. Businesslunch–to defineaction plans

c. Lots of one-on-one meetings with all key stakeholders

“Provide our Club Guests with a unique and value-added experience”



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4-Step IP4-Step IP

Provide Recognition

a. Assigned “star” Leaders to takeownership.

b. Empower them to deliver ‘thebest we can be’.

c. Provided recognition for ‘leadingthe way’ for our hotel and theCompany.



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4-Step IP4-Step IP

2. Foster the Environment2. Foster the EnvironmentLeaders MeetingLeaders Meeting

Paper AirplaneA Lesson for Flying

Outside the Box

By: Michael McMillan



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4-Step IP4-Step IP

Promote Benchmarking

Beach events from ours and other RC’sUnique Beach experiences from social

events

Benchmarking Ideas came from:• South Beach FL Concepts

• All inclusive brands

• Caribbean resorts



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4-Step IP4-Step IP

3. Stimulate Ideas3. Stimulate IdeasEveryone contributed with great ideas. Input meetings conducted with:

Destination Services

Banquets

Conference Set-Up

Club Manager

Club Attendants

Chefs

Conference Services

Recreation

Poolside Café

Gumbo Limbo

Leisure Reservations

Front of the House



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4-Step IP4-Step IP

Encourage Risk

“Pilot test (learning how to do Club Beach best) so that we can support abusiness case for the long term future, was the priority”

Naples Beach Guidance Team



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4-Step IP4-Step IP

4. Test Ideas4. Test IdeasBeach Club test over 2008 President’s Day Weekend

“Value” and “Loyalty” drivencomment card provided during test

Employees throughoutthe resort knew ‘what to

ask for’ to obtainfeedback

BEOS were created



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4-Step IP4-Step IP

4. Test Ideas4. Test IdeasBeach Club test over 2008 President’s Day Weekend

• Provide an alternative breakfast and lunch venue for Club guests only (i.e.two meal presentations of highest demand and conflict when families withchildren interact with guests who preferred a more quite and relaxedambience).

• Provide and up-scale, unique, convenient and hassle-free Beach service andrelated amenities.

• Be able to collect and understand enough facts to build a future businesscase to sell Beach Club either as a ‘premium package’ that would be offeredto all guests. Or, as an ‘added value’ to Club guests only.

• Develop new ways to fully engaged our customers.



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4-Step IP4-Step IP

4. Test ResultsClub Beach Arrival

Upon Arrival:

• Welcome station andcheck-in podium.

Amenities:• Welcome mimosas• I-pods• DVDs• Slippers• Newspapers


4. Test ResultsGuest Comments & Survey Results


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4-Step IP4-Step IP

Liked:• Beach House is lovely for Breakfast

and Lunch• Great addition• Made a big difference in our stay –

absolutely fantastic• Staff was very helpful and

accommodating• Happy to see children’s food

options/snacks• Fun and convenient• Anticipated all needs• Hallmark of The Ritz-Carlton• Loved the cappuccino machine• Kids loved the experience• Fun, user friendly

Improve:• Additional seating• Need to find a way to distinguish “Club”

members rather than asking every guest• Provide a burger pit and tap beer• Big screen TV during lunch• Offer “Beach Experience” all the time to

Club guests• Need to make more private• Full bar service

95%

79%

94%

Enhanced my overall impression Would only buy Would recommend


Date post:	10-Apr-2015
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A Systematic Approach for Making Innovation a Core Competency

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