Case : Quality At The Ritz-Carlton Hotel Company“Ritz Carlton” was the first hotel company to win the Malcom Baldrige National Quality Award. Thename alone evokes images of luxury and quality. Ritz treats quality as if it is the heartbeat of the company.This means a daily commitment to meeting customer expectations and making sure that each hotel is freeof any deficiency. In the hotel industry, guests buy an experience when they stay at the hotel and notproducts. Hence, quality is difficult to quantify. Thus, creating the right combination of the elements tomake the experience stand out is the challenge and goal of every employees, from maintenance tomanagement.Before applying for the Baldrige Award, company management undertook a rigorous self-examination ofits operations in an attempt to measure and quantify quality. Nineteen processes are studied, includingroom-service delivery, guest reservation and registration, message delivery and break fast service. Thisperiod of study included statistical measurement of process work flows and cycle times for areas rangingfrom room service delivery times and reservations to valet parking and house keeping efficiency. Theresults were used to develop performance benchmarks against which future activity could be measured.With specific, quantifiable targets in place, Ritz Carlton managers and employees now focus oncontinuous improvement. The goal is 100% customer satisfaction. If a guest’s experience does not meetexpectations, the Ritz-Carlton risks losing that guest to competition.One way the company has put more meaning behind its quality efforts is to organize its employees into“self directed” work teams. Employee teams determine work scheduling. What work needs to be done andwhat to do about quality problems in their own areas. Employees are also given the opportunity to takeadditional training in hotel operations so that they can understand the relationship of their specific area tothe overall goals. Ritz-Carlton believe that a more educated and informed employee is in a better positionto make decisions in the best interest of the organization.Questions :(1) In what ways could the Ritz-Carlton monitor its success in achieving quality ?(2) Why might it cost the Ritz-Carlton less to “do things right” the first time ?(3) What are the non-financial measures for customer satisfaction that might be used by the Ritz-Carlton ?
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