The Ritz-Carlton Case Solution

Presented by:Rohit Jain

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Interesting Facts

Reinforcement of Gold Standards

There is nothing more exciting than fixing a mistake or a defect

Employees do not just have to fulfil their functions but also have a purpose.

Good opportunities for career advancement.

Scene-1 Introduction The VisualThe Wow Story

Scene-1 Introduction The VisualThe Wow Story

Warm Welcome

Anticipation And

Compliance With Guest

Needs

Fond Farewell

Employee Senses Guest Wish or Need

Employee Breaks Away from Routine

Duties

Employee Applies

Immediate Positive Action

Determine Guest

Reaction

Document the Incident

Employee Returns to

Routine Duties

Guest Memory System

Escalate the Complaint

Satisfied

DissatisfiedThre

e Ty

pes o

f Ser

vice

1.

2.

3.

Ritz Empowerment Process

Every single Ritz Carlton staff member can spend up to $2000 on a guest.

Ritz Carlton makes a shoetree for a customer

Ritz Carlton retrieves a customer’s sunglasses by snorkeling

Ritz Carlton constructs a wooden pathway for a wheelchair

Ritz Carlton goes across the country to return a customer’s dress

Scene-1 Introduction The VisualThe Wow Story

Scene-1 Introduction The VisualThe Wow Story

The Big Discussion

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The Seven Day Countdown

Initial Occupancy rate

Scene-2 Points to consider ConclusionThe Meeting

Option – 1

Keep it as it is:Pros: Refined and evolved process for opening hotel chains by the Ritz Carlton

Provides standardization with greater efficiency.

Flawless execution is the goal; even if it takes longer, productivity will increase

as employees get more and more comfortable over time.

Focus on providing the “WOW” Ritz Carlton experience from the beginning.

Sufficient allocation of time frame for imbibing the Ritz Carlton culture and

values in the employees.

Focus on utmost quality, not on quantity from the very beginning

Offsets expected minor service failure from the beginning

Scene-2 Points to consider ConclusionThe Meeting

Option – 1

Keep it as it is:Cons: Loss of profit

Tension with owners

May not satisfy sufficient training for new facilities included.

7 day training may not be sufficient for the employees to deliver

the Ritz Carlton service standard.

Scene-2 Points to consider ConclusionThe Meeting

Option – 2

Extend countdown and maintain initial occupancy rate:Pros: More efficient employee training and morale.

Can allocate separate time for the new facility allocated.

Decrease tension with owners.

Scene-2 Points to consider ConclusionThe Meeting

Option – 2

Extend countdown and maintain initial occupancy rate:Cons: Extra loss of profit.

Can hamper brand equity.

No guarantee of increased efficiency.

Lead to rescheduling of whole program

Low incentive to move away from 7 day standardized training

program.

Scene-2 Points to consider ConclusionThe Meeting

Option – 3

Extend initial occupancy rate and maintain countdown:Pros: Increase in profit.

Decrease tension with owners.

Scene-2 Points to consider ConclusionThe Meeting

Option – 3

Extend initial occupancy rate and maintain countdown:Cons: More chances of service failure.

Even greater pressure on employees.

Can hamper brand equity.

Scene-2 Points to consider ConclusionThe Meeting

Option – 4

Extend both initial occupancy rate and countdown:Pros: Better profitability with lesser risk.

No tension with partners.

More efficient employees who can deliver Ritz Carlton standard.

Scene-2 Points to consider ConclusionThe Meeting

Option – 4

Extend both initial occupancy rate and countdown:Cons: Extra cost.

Will hamper brand equity.

No guarantee of definite success.

Complete rescheduling of the whole program.

Scene-2 Points to consider ConclusionThe Meeting

The Financial Analysis

Scene-2 Points to consider ConclusionThe Meeting

Cost

Benefits

My Suggestion

Go For Option 1“Let’s do what we do best”

Scene-2 Points to consider ConclusionThe Meeting