The New Gold Standard

1. Define and Refine: Establish Core Values While Adapting to Change

"The Gold Standards, and the disciplined business practices that emerge from them, create the platform for the achievements of our company in areas as wide ranging as our attractiveness to job seekers, our recognition for customer engagement, and our accomplishments in quality excellence throughout the world."

Foundation of excellence. The Ritz-Carlton's success is built on its Gold Standards, which include the Credo, Motto, Three Steps of Service, and Service Values. These foundational elements provide a clear vision and guide for employees at all levels. The Credo emphasizes genuine care and comfort for guests, while the Motto, "Ladies and Gentlemen serving Ladies and Gentlemen," instills mutual respect between staff and guests.

Continuous improvement. While maintaining core values, Ritz-Carlton leadership recognizes the need to evolve with changing customer preferences. This is exemplified by the transition from the rigid "20 Basics" to the more flexible "12 Service Values," which encourage employees to use their judgment in creating personalized experiences. The company also adapts its physical environments to reflect local culture and guest expectations, balancing tradition with modernity.

2. Empower Through Trust: Give Employees Authority and Responsibility

"We are confident that they will deliver the experience for which they are trained. That training in turn is ongoing and secures their skill sets. Ultimately, however, we know that we have to let our Ladies and Gentlemen figure out how to take their training and fit it with what is right for the guest."

Financial empowerment. Ritz-Carlton demonstrates trust in its employees by allowing each staff member to spend up to $2,000 per guest per day to resolve issues or enhance experiences. This policy enables swift problem-solving and creates memorable moments for guests.

Decision-making authority. Employees are encouraged to take ownership of guest experiences and use their judgment to fulfill both expressed and unexpressed needs. This empowerment extends beyond customer interactions to include involvement in planning work processes and participating in quality improvement teams.

• Employees can make on-the-spot decisions to benefit guests
• Staff members participate in problem-solving and process improvement
• Trust and empowerment lead to increased employee engagement and guest satisfaction

3. It's Not About You: Focus on Customer and Employee Needs

"Listening does not ensure that situations will always go smoothly, but ultimately it is the path to mutually acceptable solutions in challenging times."

Customer-centric approach. Ritz-Carlton prioritizes understanding and fulfilling guest needs through various methods:

• Mystique: A customer relationship management system that tracks guest preferences
• Gallup CE11: A survey tool to measure customer engagement
• Regular feedback collection and analysis

Employee engagement. The company recognizes that satisfied employees lead to satisfied customers. They use tools like the Gallup Q12 to measure and improve employee engagement, resulting in:

• Lower turnover rates compared to industry averages
• Higher levels of employee satisfaction and productivity
• Improved customer experiences due to engaged staff

4. Deliver Wow: Create Memorable Experiences Through Attention to Detail

"Wow stories are but one tool for communicating with staff. Ultimately, this tool has to be understood in the context of the objective it achieves—namely, helping leadership identify and communicate desired guest outcomes."

Wow moments. Ritz-Carlton encourages staff to go above and beyond in creating memorable experiences for guests. These efforts are captured as "Wow stories" and shared across the organization to inspire and educate employees.

Attention to detail. The company emphasizes the importance of noticing and acting on subtle cues from guests. This includes:

• Using all senses to anticipate guest needs
• Personalizing experiences based on observed preferences
• Communicating guest information across departments to ensure seamless service

5. Leave a Lasting Footprint: Make a Positive Impact on Communities

"We are part of the community. Our Ladies and Gentlemen understand that we are very serious about giving back to these local organizations that touch their lives."

Community Footprints program. Ritz-Carlton's structured approach to corporate social responsibility focuses on three key areas:

1. Hunger and poverty relief
2. Well-being of disadvantaged children
3. Environmental conservation

Employee involvement. The company encourages staff participation in community service activities, which:

• Strengthens team bonds
• Develops leadership skills
• Enhances employee pride and engagement

Guest participation. Ritz-Carlton extends community involvement opportunities to guests through programs like:

• Give Back Getaways
• Meaningful Meetings
• Environmental education initiatives

6. Select, Don't Hire: Choose Talent Aligned with Company Values

"You can't microwave Ritz-Carlton. Processes can be slow here, but when we complete a decision, it is likely to be on target. We really do take time to aim before we hire."

Rigorous selection process. Ritz-Carlton employs a comprehensive approach to hiring:

• Multiple interviews, including with frontline staff
• Focus on identifying candidates with service-oriented mindsets
• Assessment of alignment with company values and culture

Orientation and training. New hires undergo an immersive introduction to the company:

• Two-day orientation focused on company culture and values
• Job-specific training and certification within 21 days
• Ongoing learning and development opportunities

Employee retention. This careful selection and training process results in:

• Lower turnover rates compared to industry averages
• Higher levels of employee engagement and job satisfaction
• Consistent delivery of exceptional guest experiences

7. Support Frontline Empathy: Anticipate and Fulfill Guest Needs

"Anticipating your guests' needs is a simple, almost artistic, skill—one in which you listen and observe the guests' habits while taking a genuine interest in their well-being, whether that interest is directed to their family, their life, or what they did when they were at this property or even off-property."

Empathy training. Ritz-Carlton emphasizes the importance of understanding and anticipating guest needs:

• "Radar On/Antenna Up" training to heighten observational skills
• Encouragement to use all senses in assessing guest preferences
• Focus on fulfilling unexpressed wishes and needs

Communication and teamwork. The company fosters a culture of information sharing:

• Use of technology like earpiece radios to communicate guest information
• Cross-departmental collaboration to ensure seamless service
• Regular lineup meetings to share guest stories and service tips

Service recovery. When issues arise, employees are empowered to:

• Take ownership of problems
• Provide immediate resolution
• Go above and beyond to turn negative experiences into positive ones

8. Aspire, Achieve, Teach: Extend Brand Excellence Through Education

"We decided to elevate this training opportunity by creating a more systematic way to teach other businesses. We achieved our objective by opening the doors of our Leadership Center in 1999."

Internal learning. Ritz-Carlton invests heavily in employee development:

• Global learning center for staff training and development
• Operational certification programs for job-specific skills
• Leadership development initiatives

External education. The company extends its expertise to other businesses:

• Ritz-Carlton Leadership Center offers training to external organizations
• Courses cover topics such as service excellence and quality management
• Partnerships with universities for executive education programs

Knowledge sharing. By teaching others, Ritz-Carlton:

• Reinforces its own best practices
• Gains insights from other industries
• Elevates service standards across various sectors

9. Sustainability and Stewardship: Balance Luxury with Environmental Responsibility

"We want to make sure we don't impute guilt on guests who are paying for a luxury experience but at the same time we want to create openings for our guests to help us steward precious resources."

Environmental initiatives. Ritz-Carlton implements various eco-friendly practices:

• Energy and water conservation measures
• Waste reduction and recycling programs
• Sustainable design in new property development

Guest engagement. The company thoughtfully involves guests in environmental efforts:

• Educational programs like Ambassadors of the Environment
• Optional participation in linen and towel reuse programs
• Eco-tourism experiences at select properties

Balancing luxury and sustainability. Ritz-Carlton carefully considers how to:

• Maintain high standards of luxury while reducing environmental impact
• Educate guests about conservation without compromising their experience
• Invest in innovative technologies that support both comfort and efficiency

Last updated: October 24, 2024