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How Ritz Carlton applies Total Quality Management

In Fall 1992, Ritz-Carlton Hotel Co. became the first hotel company to win the Malcolm Baldrige National Quality Award. Ritz-Carlton implemented entire quality direction ( TMQ ) as a agency of winning the award and bettering its service. Patrick Mene joined Ritz-Carlton 3 old ages ago as corporate manager of quality to organize and spearhead the company ‘s TQM plan. Mene explains issues refering application of TQM to the hotel industry and using for the Baldrige award. One of the boards of TQM – authorization

– was an easy measure for Ritz-Carlton. Measurement was a hard hurdle because the industry does non hold service-quality benchmarks. Key merchandise and service demands of the travel consumer were translated into Ritz-Carlton Gold Standards, which include a creed, slogan, 3 stairss of service, and 20 “ Ritz-Carlton Basics. ” Team edifice was besides a time-consuming attempt. Ritz-Carlton is now necessitating its sellers besides to use TQM or a similar procedure.

Copyright Cornell University. School of Hotel Administration Aug 1993

Full Text:

The hunt for sustained, competitory advantage in the hotel industry has become focused to a big grade on merchandise and service quality. Achieving this quality on a consistent and low-priced footing, nevertheless, has proven to be an elusive mark. In the past, directors have been provided with such techniques and plans as direction by aims ( MBO ) , quality circles ( QC ) , and organisational development ( OD ) . Most late, entire quality direction ( TQM ) has become a focal point in many fabrication and service industries, including the hotel industry.

The thrust for quality betterment has become a nationally recognized end. To that terminal, the Malcolm Baldrige National Quality Award, established by Congress in 1987, recognizes U.S. companies that have achieved excellence through attachment to quality-improvement plans. Named for the late Secretary of Commerce, the award is administered by the Commerce Department ‘s National Institute of Standards and Technology. The ends of the award are to advance quality consciousness, recognize choice accomplishment of U.S. companies, and publicise successful quality schemes.

Companies take parting in the award application procedure must subject comprehensive information on the quality-improvement plans they have implemented. The seven classs on which appliers are evaluated are leading, information analysis, strategic quality planning, human-resource development and direction, quality confidence, quality operating consequences, and client satisfaction. Applications are graded on a 1,000-point graduated table, and companies with the highest tonss are visited by a squad of quality testers. The testers submit their findings to a board of nine Judgess, who so provide feedback studies to appliers and choice award receivers. Two awards may be granted annually to companies in each of three classs: fabrication, service, and little concern. While award receivers are allowed to publicise and publicize their awards, they are besides expected to portion information about their successful quality schemes with other U.S. companies. ( 1 )

In the first four old ages of its being, 12 houses won the Malcolm Baldrige National Quality Award: eight came from fabrication ; three were in the small-business class ; and merely one, Federal Express, hailed from the service sector. Certain facets of the service brush that are endemic to the hotel industry may do it hard but non impossible to use many of the direction rules from other industries. Those facets include the intangibleness and perishableness of the merchandise, variableness of bringing, coincident production and ingestion of the service, and the altering demands and outlooks of suppliers and users. ( 2 ) In a seminar held at the 1991 Annual CHRIE Conference in Houston, cordial reception pedagogues and industry professionals stated their belief that the hotel industry could successfully use Baldrige award standards and achieve public presentation degrees needed to win the award. ( 3 ) That belief was substantiated on October 14, 1992, when the Ritz-Carlton Hotel Company was named a victor of the 1992 Baldrige award, doing it the first hotel company to win this desired award.

In this article, I will associate the lessons of the Ritz-Carlton experience, based on an extended interview with Patrick Mene, Ritz-Carlton ‘s corporate manager of quality. At the decision, I will discourse some of the issues relative to execution of TQM in the hotel industry.

The modern-day Ritz-Carlton. The Ritz-Carlton Hotel Company is a direction house that develops and operates luxury hotels worldwide. It was formed in 1983 when Atlanta-based W.B. Johnson Properties purchased sole U.S. rights to the Ritz-Carlton hallmark along with the Boston Ritz-Carlton Hotel. Today, under the leading of William B. Johnson ( CEO ) and Horst Schulze ( COO ) , the privately-owned company operates 27 hotels and resorts in the United States and Australia. ( 4 ) Its future international enlargement programs include adding hotels in Hong Kong, Barcelona, and Cancun. Ritz-Carlton besides has nine international gross revenues offices and employs 11,500 people.

QUALITY-MANAGEMENT Plan

Quality direction begins with president and head runing officer Schulze and the other 13 senior executives who make up the corporate guidance commission and the senior quality-management squad. They meet hebdomadal to reexamine product-and service-quality steps, guest satisfaction, market growing and development, organisational indexs, net incomes, and competitory position. Approximately one-fourth of each executive ‘s clip is devoted to quality-related affairs.

Gold criterions. Key merchandise and service demands of the travel consumer have been translated into Ritz-Carlton Gold Standards, which include a creed, slogan, three stairss of service, and 20 “ Ritz-Carlton Basicss ” ( see Exhibit 1 ) . Each employee is expected to understand and adhere to these criterions, which describe procedures for work outing jobs invitees may hold every bit good as elaborate training, housework, and safety and efficiency criterions.

To supply superior service, Ritz-Carlton created its targeted choice procedure to guarantee a successful lucifer of possible employees to employment. Upon being selected, new employees are versed on the corporate civilization through a two-day orientation, followed by extended on-the-job preparation, so occupation enfranchisement. Ritz-Carlton values are reinforced continuously by day-to-day “ line ups, ” frequent acknowledgment for extraordinary accomplishment, and a public presentation assessment based on outlooks explained during the orientation, preparation, and enfranchisement procedures.

To guarantee invitees ‘ jobs are resolved rapidly, workers are required to move at first notice — regardless of the type of job or client ailment. All employees are empowered to make whatever it takes to supply “ instant mollification. ” No affair what their normal responsibilities are, other employees must help if assistance is requested by a fellow worker who is reacting to a invitee ‘s ailment or want.

The duty for guaranting high-quality invitee services and adjustments remainders chiefly with employees. Surveyed yearly to determine their degrees of satisfaction and apprehension of quality criterions, workers are keenly cognizant that excellence in invitee services is a top hotel and personal precedence. A full 96 per centum of all employees surveyed in 1991 singled out this priority-even though the company had added 3,000 new employees in the old three old ages.

Detailed planning. At each degree of the company-from corporate leaders to directors and employees in the single work countries — squads are charged with puting aims and inventing action programs, which are reviewed by the corporate guidance commission. In add-on, each hotel has a designated quality leader, who serves as a resource and advocator as squads and workers develop and implement their quality programs. To cultivate employee committedness farther, each work country is covered by three squads responsible for job resolution, strategic planning, and puting quality-certification criterions for each place.

The benefits of elaborate planning and the hands-on engagement of executives are apparent during the seven yearss taking up to the gap of a new hotel. Rather than opening a hotel in stages, as is the pattern in the industry, Ritz-Carlton purposes to hold everything right when the door opens to the first client. A “ seven-day-countdown control program ” synchronizes all stairss taking to the gap. ( 5 ) The company president and other senior leaders personally instruct new employees on the gold criterions and choice direction during a two-day orientation, and a specially selected start-up squad composed of staff from the company ‘s other hotels ensures that all work countries, procedures, and equipment are ready.

Quality informations. Daily quality production studies, derived from informations submitted from each of the 720 work countries in the hotel, function as an early warning system for placing jobs that can hinder advancement toward run intoing quality and customer-satisfaction ends. Coupled with quarterly sum-ups of invitee and meeting-planner reactions, the combined informations are compared with preset client outlooks to better services. Among the informations gathered and tracked over clip are one-year guest-room preventive-maintenance rhythms, per centum of check-ins with no queuing, clip spent to accomplish industry-best clean-room visual aspect, and clip to serve an occupied invitee room.

From automated edifice and safety systems to computerized reserve systems, Ritz-Carlton uses advanced engineering to full advantage. For illustration, each employee is trained to observe a invitee ‘s likes and disfavors. Those informations are entered in a computerized guest-history profile that provides information on the penchants of 240,000 repetition invitees, ensuing in more individualized service.

Quality consequences. The purpose of these and other customer-focused steps is non merely to run into the outlooks of invitees but to supply them with a memorable visit. Harmonizing to studies conducted for Ritz-Carlton by an independent research house, 92 to 97 per centum of the company ‘s invitees leave with that feeling. As a consequence of its quality plan, Ritz-Carlton received 121 quality awards from the travel industry in 1991 entirely, including: “ Best Hotel Chain in the United States, ” by Zagat Travel Survey ; “ Index Award of Excellence, ” by Hotel and Travel Index, “ Alred Award ” for Best Hotel Chain, by Corporate Travel ; and “ Top Hotel Chain in Ability to Service Meetings, ” by Successful Meetings.

PATRICK MENE AND TQM

Patrick Mene joined the Ritz-Carlton Hotel Company three old ages ago as corporate manager of quality to organize and spearhead the company ‘s TQM plan. Prior to fall ining Ritz-Carlton, he was with L’Hermitage Hotels in Los Angeles and served as general director of the Le Bel-Age. He has besides been associated with Hyatt Hotels, Westin International, and Omni Hotels. He brings to his place a comprehensive cognition of all facets of the hotel industry, from operations to nutrient and drink and direction preparation.

In Mene ‘s position, Ritz-Carlton ‘s attack to the Baldrige award began long before the award was established and before anyone had heard of TQM. “ About eight old ages ago Ritz-Carlton set out to be a individual provider of luxury belongingss that met Mobil ‘s and AAA ‘s highest criterions. Six old ages subsequently, we had achieved acknowledgment from those independent evaluation organisations as the lone hotel company that systematically met their highest criterions, ” he said. Now, Ritz-Carlton is the benchmark used by AAA and Mobil in evaluation housing belongingss.

“ At that point, company president Horst Schulze shook us to our foundations one twenty-four hours when he told us, ‘You know what? We ‘re a lucky, bloody six, on a graduated table of one to ten. ‘ What he was stating was that all of our clients were still non being satisfied all the clip, ” Mene said.

He said that despite a desire to happen countries of betterment and a strong quality-based civilization, the company had run out of thoughts for how to better. “ We went to several of our chief clients and independent quality-rating organisations, ” Mene recalled. “ They suggested turning to the Baldrige standards for counsel. Those standards were difficult to understand, and at first we did n’t believe they were relevant to our concern. We bit by bit realized the award standards could function as a route map for quality betterment. ”

“ I think it is of import that everyone understands we were non a authoritative TQM company to get down with, ” Mene added. “ Despite our civilization and compulsion with quality betterment, we were non a authoritative TQM company and I do n’t even cognize to this twenty-four hours if we are, although we surely apply many of the rules. We are n’t as statistically controlled as some of the more traditional TQM companies, but we are get downing to travel more and more in that way. ”

Authorization

One of the boards of TQM, authorization, was an easy measure for Ritz-Carlton, Mene said. “ To us, empowerment means giving employees the duty for work outing invitees ‘ jobs. We found that happens in two phases if you ‘re remaining at a hotel and you encounter a job or something is incorrect. In phase one, the employee will hold to interrupt away from his or her normal everyday to take an immediate positive action, to look into what went incorrect, and unbend it out. ”

Interrupting off is non precisely the proper term, since work outing invitees ‘ jobs is a major consideration in invitee service. Mene explained, “ We would instead hold a guestroom attender, for illustration, trade with repairing a invitee ‘s job on the topographic point instead than holding the manager of marketing hole it subsequently. It ‘s the 1-10-100 regulation that we believe in: What costs you a dollar to repair today will be $ 10 to repair tomorrow and $ 100 to repair downstream. ”

Teamwork. Constructing a squad attack did occasion some opposition from directors, because of its freshness. Employees met as squads to descry job forms, prioritise jobs, and develop steps to forestall their return. “ This was the stage that was wholly new to us, ” Mene said. “ The manner we addressed managerial concerns was by affecting all the directors in a reappraisal procedure. Subsequently, we went on to make strategic planning squads where every degree of the organisation was charged with the duty to put ends and action programs. We allowed the directors to sit in on reappraisal boards and analyze each squad ‘s aims and programs. Of class, they had some preparation on what to look for. The directors came to see their function as still responsible for aims and solutions and to guarantee they were adequately researched and funded, but with input and engagement from employees. ”

Mene said the company has learned that non everyone wants the duty of being on a strategic-planning squad and that some directors are better suited to a squad attack — peculiarly as facilitator or manager — than others. “ We use testing methods in engaging to find who portions in our values, and we use prognostic instruments to state if people are good suited to teamwork. That ‘s a discovery, ” he said. “ We besides spent more clip constructing the relationship of the squad. We took for granted that if you were already a good Ritz-Carlton employee, you already understood our construct of sidelong service. So when we put a group of cross-functional people together in a squad, we figured they would merely of course work together as a squad and travel frontward. But what we found was that we had to pass more clip to let the squad members to acquire to cognize each other and larn how to construct and keep support before they could truly acquire the sort of betterment we wanted. Let ‘s merely say that we learned how to break physique and keep our squads. ”

Feedback

Wining the Baldrige award turns out to be a “ good-news, bad-news ” state of affairs. A month or two after winning the award, Ritz-Carlton received a feedback study proposing 75 countries of betterment. The following measure, Mene said, was to travel right back after defects. “ We announced to the employees that by 1996, and this one truly agitate them, we wanted to cut down the rhythm clip ( the clip between placing a invitee ‘s demand and fulfilling that demand ) by 50 per centum, and we besides wanted to put an aim of 100-percent client keeping. So, we really set ends of tremendous magnitude right on the heels of winning the Baldrige, long-range quality ends. What I think got people ‘s attending was that non merely did we have new high-quality ends, but we were n’t halting at Baldrige. We wanted the highest degree of quality. ” Ritz-Carlton did non aim such traditional ends as tenancy rate because the company expects the focal point on quality ends will develop quality production that will drive the fiscal result. “ That was a existent daze to our employees, ” Mene said. “ Whether we end up with the highest mean rate and tenancy I do n’t cognize, but we will hold the most efficient system to fulfill clients. ”

Suppliers, TOO

Ritz-Carlton is now working with its providers for quality direction. The house has developed supplier enfranchisement, by which the company non merely measures how frequently suppliers fitting specifications on clip, but how good they improve their rhythm clip from order to bringing. “ If they do n’t hold the willingness to make that we can no longer make concern with them, ” Mene warned. “ We want to see which providers are best able to run into our measure needs, and which will run into our quality demands by making an internal appraisal or by using for the Baldrige award themselves. ”

The internal appraisal involves a strict 100-question internal audit of providers ‘ capablenesss, plus a study of the people who use their merchandises and services, including buying agents, accounting forces, gross revenues individuals, and hotel invitees, who besides rate the quality of those providers ‘ merchandises and services. Ritz-Carlton ranks the providers based on a mark developed from the provider audits and user studies. The end is to acquire providers to progress through a enfranchisement plan to go a to the full incorporate spouse.

“ Most of our providers are already involved in this attack and they ‘re happy to portion with us their capablenesss, but we have all kinds of other providers demoing up and stating, ‘Look at me, look at what I can make. ‘ So I think the response to our plan has been good, ” Mene said.

HUMAN RESOURCES

Ritz-Carlton wholly integrates human resources and operations, so that an outside perceiver might be hard pressed to calculate out who were the human-resources people and who were the operations people, Mene observed. Human-resources and operations forces work together to choose, East, train, and attest employees. They besides guarantee that the employees remain profoundly involved in running the concern, since every degree of the organisation is charged with the duty of puting ends and aims.

Appraisal. “ Our quality public presentation criterions are besides established by employees through their work squads in each country of the hotel, ” Mene said. “ This leads me to our performance-appraisal system, in which we hold our people responsible merely for the things they can command. Appraisal is based on the things that we told employees were of import during their orientation — the gold criterions. Once our employees become certified, public presentation assessments are nil more than a recertification, so that preparation can go a uninterrupted procedure. We besides inquire our people to lend to the procedure by placing jobs and working to work out them. ”

Advice FOR EDUCATORS

Mene had the undermentioned ideas for pedagogues: “ The instruction constitution needs to acknowledge that quality is a whole new subdivision of cognition, and it has to be taught to the pupils as an wholly separate construct. I do n’t even cognize if it should be a separate class or something that is inculcated throughout the course of study. I truly believe the director of the hereafter must be a Renaissance man. I do n’t believe we teach pupils adequate about interpersonal relationships or how to construct and keep a squad attack. ( 6 )

“ I think we should learn them less about fundss and more about quality. We ‘ve got to acquire them off the fiscal docket. You can non better a company ‘s fiscal public presentation simply by concentrating on fundss. So, we can no longer state to human-resources people that they be responsible for forces, and to accountants that they be responsible for fundss. Future directors, and employees to a different extent, have to cognize and be responsible for quality, relationships, and fundss. ”

Advice FOR INDUSTRY

To do quality work successfully, the president and senior leaders must originate and drive the procedure, Mene believes. “ The quality civilization has got to be at that place, and top leaders help to put that. It ‘s besides of import to understand the standard before starting, because it may look irrelevant to the typical hotel. Guidebooks and TQM seminars can be helpful. An application commission should be formed to measure the current state of affairs and implement the TQM procedure. Our commission was divided into seven subcommittees based on the seven scrutiny countries in the Baldrige application, with a senior director as leader for each country. Developing a elaborate program or work flow similar to opening a new hotel is highly of import for the intent of finishing the Baldrige application itself. The application procedure of outlining the study and so reexamining, redacting, publication, printing, and supporting it is a major project. I recommend utilizing a professional redaction squad, because you are printing a book, make no error about it. I besides suggest redacting the concluding papers in a business-center environment, like a retreat, where you acquire your redacting squad together for a hebdomad to lock yourself down and merely travel through the loops. The redacting procedure is bigger than one might conceive of. Finally, I believe you ought to dispute your organisation with an extraordinary end. The end to better by utilizing the application as a usher for self-assessment and developing a quality plan should outweigh the end of desiring to win the Baldrige award.

IMPLICATIONS OF THE RITZ-CARLTON EXPERIENCE

The Ritz-Carlton instance demonstrates that the hotel industry can use Baldrige-award standards to develop a successful quality plan merely like other houses in the fabrication and service industries. The main mechanism for guaranting the steady quality betterment required by the Baldrige award is authorising employees, which means giving them the authorization to place and work out client jobs on the topographic point and to better work procedures. A corollary of authorization is that employees should be able to do modest alterations in normal processs, particularly in deciding a invitee ‘s ailment. Ritz-Carlton, for case, allows each single employee to pass up to $ 2,000 to fulfill a invitee. As Patrick Mene so competently set it, “ Ritz-Carlton employees know that from twenty-four hours one they are empowered to interrupt off from their normal modus operandis whenever they see a job to convey that job under control. ” For authorization to hold a positive consequence, nevertheless, employees must besides hold the cognition and accomplishments to utilize their authorization good. That requires developing non merely in quality constructs and quality control tools and techniques, but besides in how to make the occupation and how to work together as a squad. ( 7 )

Another lesson learned from Ritz-Carlton ‘s quality attempt is that hotel companies can accomplish excellence in quality betterment without utilizing the sophisticated statistical techniques usually associated with fabrication companies. Although many individuals feel that the exactly measured Baldrige standards favor fabrication, the award does non necessitate companies to utilize computer-generated statistical techniques. Companies are required, nevertheless, to roll up and analyse information related to client satisfaction, quality of merchandises and services, cycle-time decrease, and fiscal and employee-related public presentation, and to do comparings with rivals and industry benchmarks.

In fact, mensurating quality is one topographic point where Ritz-Carlton encountered jobs. In our conversation, Patrick Mene expressed how hard it was to happen quality-related information on the industry. Except for fiscal informations, neither individual rivals nor the industry as a whole was tracking quality-assessment information. The demand to alter current systems of information assemblage and analysis to concentrate more on quality and informations related to client satisfaction will be a challenge to other hotel companies in be aftering their quality plans. Ritz-Carlton ‘s lesson was that it needed immediate responses throughout the system and accessible to all employees, merely to maintain gait with ever-changing client demands.

The Ritz-Carlton experience besides offers lessons for other hotel companies interested in prosecuting the Malcolm Baldrige National Quality Award. For the Ritz-Carlton, winning the Baldrige has been a double-edged blade. On the one manus, the award is a crowning accomplishment for employees on their successful development and execution of TQM. It has besides been effectual in solidifying the company ‘s place as a leader in the luxury hotel market and in bring forthing concern from companies interested in making concern with a Baldrige award victor. On the other manus, the figure of petitions for presentations, visual aspects, Tourss, and general information being placed on Ritz-Carlton ‘s executives and staff has been reeling — over 600 in the first three months of 1993 entirely. Patrick Mene admitted to passing more than 50 per centum of his clip going and doing presentations on Ritz-Carlton ‘s quality plan and the Baldrige experience. Although the award victors are non required to react to such demands, they are expected to back up the quality motion by sharing what they have learned with others.

Mene would alter nil, though. The concatenation ‘s representatives no longer hold to convert prospective clients that its belongingss offer a high-quality invitee experience. “ Peoples need to understand the economic sciences of quality, ” Mene warned. “ When you do n’t fulfill all the clients all the clip it can be you a luck. So we found the benefits more than outweighed any jobs. A quality attack to running a concern is the most cost-efficient, least capital-intensive way to profitableness. I have nil but positive things to state, and I ‘ve spent several old ages of my life on this. ”

In visible radiation of the significant attempt and existent costs involved in viing for the Baldrige award, non to advert a brawny up-front application fee ( $ 4,000 ) , hotel companies may desire to see whether they truly want to seek for the award itself. Companies that seek the award simply to derive promotion or prestigiousness will happen that such chases normally do non defy the examination that testers give each applier. ( 8 ) The existent danger lies in going more concerned with winning the award than with quality betterment. ( 9 ) Today, Baldrige-award victors typically spend several old ages working on TQM before even using for the award, and on that mark, Ritz-Carlton ‘s “ born at birth ” doctrine to quality appears to be prescient.

Ritz-Carlton ‘s experience with TQM and the Malcolm Baldrige National Quality Award provides valuable lessons for any hotel company. The hotel industry today is being challenged by a sulky economic system, increased transnational competition, and a more-sophisticated and demanding client. How these issues are addressed may really good find the difference between success and failure. While attacks to TQM can change depending on an organisation ‘s alone fortunes and features, the Baldrige-award standards serve as a utile usher for puting up and supervising a quality-improvement plan.

If the Ritz-Carlton experience Teachs us anything, it ‘s that a focal point on client satisfaction must be built into the direction processes of the organisation and supported through an incorporate system of information analysis, entire employee engagement, preparation, and the uninterrupted attempt to better service and merchandise quality.

1 Most of the information presented here is adapted from the 1992 Award

Standards: Malcolm Baldrige National Quality Award. To obtain a transcript at no cost, contact: Malcolm Baldrige National Quality Award, National Institute of Standards and Technology Gaithersburg, MD 20899 ( telephone: 301-975-2036 ) .

2 Robert C. Lewis and Richard E. Chambers, Marketing Leadership in Hospitality: Foundations and Practices ( New York: Van Nostrand Reinhold, 1989 ) , pp. 39-49.

3 R. Dan Beid and Melvin Sandler, “ An Evaluation of the Baldrige Award and Its Deductions for the Hotel Industry, ” abstracted in 1991 Annual CHRIE Conference Proceedings ( Washington, DC ) , pp. 256-257.

4 For remarks from Horst Schulze, see: Kenneth R. Greger and Glenn R. Withiam, “ The Position from the Helm: Hotel Execs Examine the Industry, ” The Cornell Hotel and Restaurant Administration Quarterly, 32, No. 3 ( October 1991 ) , pp. 18-36.

5 See: William E. Kent, “ Puting Up the Ritz: Using Culture to Open a Hotel, ” The Cornell Hotel and Restaurant Administration Quarterly, 31, No. 3 ( November 1990 ) , pp. 16-24.

6 These statements are congruous with the findings of the stakeholder study discussed by Cathy Enz, Leo Renaghan, and A. Neal Geller in “ Graduate-Level

Education: A Survey of Stakeholders, ” in this issue ‘s Educators ‘ Forum.

7 For authorization to he effectual, employees must besides be enabled. That is why Deming emphasized the demand for preparation and instruction in his rules of TQM. Deming ‘s thoughts are presented in: Mary Walton, The Deming Management Model ( New York: Putnam/Perigee, 1986 ) .

8 Marshall Saskin and Kenneth J. Kiser, Total Quality Managment ( Seabrook,

Old line state: Ducochon Press, 1991 ) , pp. 159-167.

9 Jeremy Main, “ Is the Baldrige Overblown? , ” Fortune, July 1, 1991, pp 62-65.

Exhibit 1

THE RITZ-CARLTON “ GOLD STANDARDS ”

THE RITZ-CARLTON CREDO

The Ritz-Carlton is a topographic point where the echt attention and comfort of our invitees is our highest mission. We pledge to supply the best service and installations for our invitees who will ever bask a warm, relaxed yet refined atmosphere. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unsaid wants and demands of our invitees.

THE RITZ-CARLTON MOTTO

“ We are Ladies and Gentlemen functioning Ladies and Gentlemen. ” Practice teamwork and “ sidelong service ” ( i.e. , employe-to-employee contact ) to make a positive work environment.

THREE STEPS OF SERVICE

1. A warm and sincere salutation. Use the invitee ‘s name, if and when possible.

2. Anticipation and conformity with invitee demands.

3. Fond farewell. Give invitees a warm adieu and utilize their names, if and when possible.

THE RITZ-CARLTON “ BASICS ”

1. The Credo will be known, owned, and energized by all employees.

2. The three stairss of service shall be patterns by all employees.

3. All employees will successfully finish Training Certification to guarantee they understand how to execute to The Ritz-Carlton criterions in their place.

4. Each employee will understand their work country and hotel ends as established in each strategic program.

5. All employees will cognize the demands of their internal and external clients ( invitees and fellow employees ) so that we may present the merchandises and services they expect. Use guest penchant tablets to enter specific demands.

6. Each employee will continuously place defects ( Mr. BIV ” : Mistakes, Rework, Breakdowns, Inefficiencies, and Variations ) throughout the hotel.

7. Any employee who receives a client ailment “ owns ” the ailment.

8. Instantaneous invitee mollification will be ensured by all. React rapidly to rectify the job instantly. Follow-up with a telephone call within 20 proceedingss to verify that the job has been resolved to the client ‘s satisfaction. Make everything you perchance can ne’er to lose a invitee.

9. Guest-incident action signifiers are used to enter and pass on every incident of guest dissatisfaction. Every employee is empowered to decide the job and to forestall a repetition happening.

10. Uncompromising degrees of cleanliness are the duty of every employee.

11. “ Smile. We are on phase. ” Always maintain positive oculus contact. Use the proper vocabulary with our invitees. ( Use words like: “ good forenoon, ” “ surely, ” “ I ‘ll be happy to, ” and “ my pleasance. ” )

12. Be an embassador of your hotel in and outside of the work topographic point. Always speak positively. No negative remarks.

13. Bodyguard guests instead than indicating out waies to another country of the hotel.

14. Be knowing of hotel information ( hours of operation, etc. ) to reply invitees ‘ enquiries. Always recommend the hotel ‘s retail and nutrient and drink mercantile establishments prior to installations outside the hotel.

15. Use proper telephone etiquette. Answer within three rings and with a “ smiling. ” When necessary, inquire the company, “ May I place you on clasp. ” Do non test calls. Extinguish call transportations when possible.

16. Uniforms are to be speckless ; wear proper and safe footwear ( clean and polished ) , and your right name ticket. Take pride and attention in your personal visual aspect ( adhering to all training criterions ) .

17. Be certain of your function during exigency state of affairss and be cognizant of fire and life-safety response processes.

18. Advise your supervisor instantly of jeopardies or hurts and of equipment or aid that you need. Practice energy preservation and proper care and fix of hotel belongings and equipment.

19. Protecting the assets of a Ritz-Carlton Hotel is the duty of every employee.

Exhibit 2

FIVE TENETS OF TQM

While the undermentioned five rules are non the lone dogmas of Entire Quality Management, by concentrating on these rules, employees will recognize that TQM is non merely another “ plan ” that will about surely vanish. The key is that TQM is an incorporate system of techniques and preparation.

( 1 ) Commit to Quality. Making quality a number-one precedence requires an organisational civilization to back up it, and merely top leading can further a TQM civilization. Therefore, the first measure toward TQM must affect active support and way from top-level directors, particularly the CEO.

( 2 ) Focus on Customer Satisfaction. Customers are concerned about quality and, in fact, specify it for the organisation. Successful TQM companies are acutely cognizant of the market. They know what their clients truly want and constantly meet and exceed their outlooks.

( 3 ) Assess Organizational Culture. A choice group of top directors and employees from different parts of the company should analyze the organisation, with a focal point on its civilization, and assess the tantrum between that civilization and TQM ‘s rules. This appraisal, which may take several months to finish, will assist direction construct on strengths, place failings, and put precedences.

( 4 ) Empower Employees and Teams. Although TQM is led from the top, the existent work occurs “ bottoms-up. ” Empowering employees and squads requires developing them to utilize their authorization efficaciously. It may besides necessitate redesigning some occupations to ease a squad attack and modifying policies and patterns that support wagess for consequences and other cultural elements that empower employees.

( 5 ) Measure Quality Efforts. The ability to estimate your attempts toward superior employee public presentation, streamlined decision-making, supplier reactivity, and improved client satisfaction is endemic to the TQM procedure. Information assemblage and analysis techniques should assist place causes of work-process jobs and be well-designed, seasonably, and straightforward. In the terminal, TQM is based largely on rational thought and job resolution, non on sophisticated statistics and other measuring techniques.

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