The Ritz-CarltonAngela Cauthorn Nneka Eni Heather Kromer Jessica Lovorn Ryan Rothermel Peter Singer

Presentation Overview Company History Business Model Current State 7 Day Countdown Learning Methods

Summary & Group Recommendation Ritz-Carlton Now No Ordinary Boot Camp Learning Methods

Ritz-Carlton History Cesar Ritz Shepherd in Switzerland Moved to Paris and worked in some of the finest hotels and restaurants Opened first hotel in Paris, followed by London (1898)

Dubai

Ritz-Carlton History 1927: Ritz-Carlton Hotel Company expanded toNorth America (Boston) 1983: Atlanta based Johnson Company bought North American rights to name 1997: Marriott International purchased RitzCarlton 2000: Ritz-Carlton primarily a management company operating 38 hotels and resorts across the globeDubai

Millennium Partners Overview New York based real estate development group High end luxury apartments Height Light Views Service

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What are the basic characteristics of the Ritz-Carlton business model?

Ritz-Carlton Business Model Focus on guests Greet at airport with mimosas and discount coupons on a silver tray Technology Butler Airport check-in concierge Event planners the vital few 40% of annual sales income

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Ritz-Carlton Business Model Management Contracts Real estate crash of the late 1980 s Hotel owners gained leverage in management contract negotiation process Wanted more voice in how properties were managed

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What is Ritz-Carlton selling?

Quality at Ritz-Carlton 2 Time Winner of Baldrige Award for Quality Total Quality Management Continuous improvement Programs designed to meet customer needs

Service Quality Indicators Guest RecognitionDubai

Human Resources at Ritz-CarltonWe respect our employees You have to have a passion for people. If you have an accounting approach to human resources, then you re bound to fail A successful business is one that is capable of enlisting an employee not only for his muscles and his labor, but also for his brain, his heart, and his soul.Dubai

Human Resources at Ritz-Carlton 20% annual turnover rate Industry average: 100%

Day 21 Event Degree to which company lived up to promises made to employees during orientation

25% of management began as hourly employees Extensive formal and informal trainingDubai

The Washington D.C. Hotel The complex was located in the Foggy Bottom Historic district of Washington D.C. For the first time the Ritz-Carlton was opening a hotel that was part of a multi-use facility The hotel was owned by Millennium Partners who had also signed contracts with The Four Seasons, the Ritz-Carlton's largest competitor

Washington D.C.

The Hospitality ComplexThe complex covered 2.5 acres It included 162 luxury condominiums A 100,000 square foot sports club Splash spa Three restaurants 40,000 square feet of street level restaurants and retail shops And the 300 room hotel Washington D.C.

Hotel Opening ProcessThe process was divided into three sections The Property Market Customization Staffing

Washington D.C.

The Property Many decisions have to be made regarding the site of a new Ritz-Carlton hotel The new D.C. location was desirable because of its proximity to may sites of interest such as the White House, Capitol Hill, Embassy Row and the Foggy Bottom Historic district Washington D.C. also attracted foreign diplomats and other potentially strong clienteleWashington D.C.

Market Customization The Ritz-Carlton had to customize each hotel to meet the local market demand In recognition of the fact that most of the potential customers were internet savvy, the hotel planned to link restaurant services to the internet Hotel guests and condominium residents could order food onlineWashington D.C.

Market Customization They also decided to break away from the company s historic English tradition The Ritz-Carlton recognized that old English tradition did not work well in the new millennium; especially since their main competitor was The Four Seasons

Washington D.C.

Staff Selection Millennium Partners had the right to approve the individuals nominated by the Ritz-Carlton for the executive positions The General Manager, the Director of Marketing and the Controller These executive members then selected their function managers who in turn were responsible for hiring line-staff members

Washington D.C.

Methods of Staff Selection Personnel recruitment- James McBride dined at the competitors and distributed cards with job application information to exceptional servers Ritz Carlton Job fair- Two-day event for job applicants, where they were treated to the service oriented culture that made the Ritz famousWashington D.C.

Seven Day Countdown This was the new employees first encounter with the hotel, that started exactly seven days before the grand opening of the hotel The first 2 days were devoted to orienting employees to the company culture and values The next five days were devoted to more skills training and trial runs of service delivery

Washington D.C.

Day One: Staff Orientation Big Pep Rally Enthusiasm around the Ritz-Carlton culture

Schultz addresses new employees Audiovisual Training Method Lecture Training Method

Service Philosophy Gold Standards

Hong Kong

Day One: Leadership Orientation Leadership Orientation Different approach from staff orientation Focus on the bottom line

Modified version of team leader training

The business is created for one reason to make money. This is your role.Hong Kong

Lecture Method One way communication from trainer to the trainee through spoken words Least expensive training method Best used for getting large amount of information in a well thought-out manner

Hong Kong

Audiovisual Instruction Overhead, slides, and video in conjunction with lecture Multiple advantages for trainers: Ability to go back or skip forward in lesson Can be watched as many times as needed Exposure to real life situations that are difficult to replicate Consistent instruction Allows for reviewHong Kong

Team Leader Training Team Leader Training Strategy within team training Refers to the training that the team manager or facilitator receives Involves preparing the leader to resolve conflict or help the team coordinate its activities

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Day Two: Departmental Vision Department Meetings Group icebreakers

Self-directed learning There is only one way of teaching self teaching. Think, when you ve left, where are you in creating a fine memory ?Hong Kong

Self-Directed Learning Employee has total responsibility to learn all objectives Determines when, where, and at what rate learning will take place Biggest drawback is employee must be motivated to learn material on their own

Hong Kong

Days 3 7: Skills Training For next five days the hotel s leadership team, trainers, and managers met each morning at 6am to review previous days training activities All employees attended a session on the anticipation and handling of guest requests

New York

Days 3 7: Skills Training Each department continued to formulate and refine its own philosophy and statement of goals Everyone received life safety instruction, was treated to wine tasting, and enjoyed product show which allowed each employee to learn more about the materials that would provide comforts to its guests

New York

Days 3 7: Skills Training Instant guest pacification was a Ritz-Carlton basic skill Day 4 all new employees were instructed in the standardized procedure for handling guest difficulties They were taught to break away from their standard duties to solve a customers problems

Each problem was documented on a Guest Incident Action FormNew York

Last 3 Days Departmental technical training occurred Learn details involved in performing their jobs to standards

Everyone was expected to master their department's key production processes Every employee practiced their job as if they were serving real customers (role play) examples: check-in, servers, etc.New York

Role Play For role plays to be effective, trainers need to engage in several activities before, during, and after the role play. Before the Role Play: It is critical to explain the purpose of the activity to the trainees Increases the chance that they will find the activity meaningful and be motivated to learn

A sample role play helps explain to the trainee how the role play worksNew York

Role Play During the Role Play: The trainer needs to monitor the time, degree of intensity, and focus of the group s attention The more meaningful the exercise is to participants the less trouble the trainer should have with focus and intensity

After the Role Play: Debriefing is critical Helps trainees understand the experience and discuss their insights with each otherNew York

Role Play at Ritz-Carlton Members of the corporate steering committee observed the trial runs or role playing They looked for flaws and then passed these observations on to trainers who then provided additional training Schulze would even step in and help a struggling employee. He would show them exactly how it was supposed to be done. (Behavior Modeling).

New York

Behavior Modeling Presents trainees with a model who demonstrates key behaviors to replicate and provides trainees with the opportunity to practice key behaviors Key Behavior is one of a set of behaviors that are necessary to complete a task

Is based on the principles of social learning theory (Ch4) which emphasize that learning occurs by: Observation of behaviors demonstrated by