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Ritz Carlton: Total Quality Management

In Street to redemption 1992, Ritz-Carlton Hotel Co. became the first hotel company to succeed the Malcolm Baldrige National Quality Prize. Ritz-Carlton applied total quality management (TMQ) as a way of earning the prize and enhancing its service. Patrick Mene became a member of Ritz-Carlton 3 years ago as corporate director of quality to organize and spearhead the business's TQM program. Mene clarifies issues concerning application of TQM to the hotel industry and applying for the Baldrige honor. One of the planks of TQM - empowerment

- was an easy step for Ritz-Carlton. Dimension was a difficult hurdle because the industry doesn't have service-quality benchmarks. Key product and service requirements of the travel consumer were translated into Ritz-Carlton Platinum Standards, which include a credo, motto, 3 steps of service, and 20 "Ritz-Carlton Fundamentals. " Team development was also a time-consuming work. Ritz-Carlton is currently requiring its suppliers also to use TQM or a similar process.

Copyright Cornell University. University of Hotel Administration Aug 1993

Full Word:

The seek out sustained, competitive advantage in the hotel industry is becoming focused to a big degree on product and service quality. Obtaining this quality on a consistent and low-cost basis, however, has proven to be an elusive focus on. Before, managers have been given such techniques and programs as management by goals (MBO), quality circles (QC), and organizational development (OD). Most recently, total quality management (TQM) has become a concentrate in many developing and service sectors, including the hotel industry.

The drive for quality improvement has turned into a nationally regarded goal. Compared to that end, the Malcolm Baldrige Country wide Quality Award, founded by Congress in 1987, recognizes U. S. companies that have achieved brilliance through adherence to quality-improvement programs. Called for the late Secretary of Business, the prize is given by the Business Department's National Institute of Expectations and Technology. The goals of the prize are to promote quality awareness, realize quality achievements of U. S. companies, and publicize successful quality strategies.

Companies taking part in the award software process must send comprehensive home elevators the quality-improvement programs they may have integrated. The seven categories on which applicants are assessed are management, information analysis, tactical quality planning, human-resource development and management, quality guarantee, quality operating results, and client satisfaction. Applications are graded on a 1, 000-point level, and companies with the best scores are seen with a team of quality examiners. The examiners post their results to a table of nine judges, who then provide feedback reports to people and select prize recipients. Two accolades may be awarded yearly to companies in each of three categories: developing, service, and small business. While honor recipients are allowed to publicize and advertise their accolades, also, they are expected to reveal information about their successful quality strategies with other U. S. companies. (1)

In the first four many years of its lifetime, 12 firms won the Malcolm Baldrige Country wide Quality Prize: eight originated from creation; three were in the small-business category; and only one, Federal Exhibit, hailed from the service sector. Certain aspects of the service come across that are endemic to the hotel industry could make it difficult however, not impossible to apply lots of the management principles from other establishments. Those aspects are the intangibility and perishability of the product, variability of delivery, simultaneous development and intake of the service, and the changing needs and goals of providers and users. (2) In the seminar placed at the 1991 Annual CHRIE Seminar in Houston, hospitality educators and industry experts stated their notion that the hotel industry could efficiently apply Baldrige award conditions and achieve performance levels had a need to win the award. (3) That belief was substantiated on October 14, 1992, when the Ritz-Carlton Hotel Company was called successful of the 1992 Baldrige award, which makes it the first hotel company to succeed this coveted honor.

In this content, I will connect the lessons of the Ritz-Carlton experience, predicated on an comprehensive interview with Patrick Mene, Ritz-Carlton's corporate and business director of quality. Towards the end, I will discuss some of the issues relative to implementation of TQM in the hotel industry.

The contemporary Ritz-Carlton. The Ritz-Carlton Hotel Company is a management company that produces and operates luxury hotels worldwide. It was formed in 1983 when Atlanta-based W. B. Johnson Properties purchased exclusive U. S. rights to the Ritz-Carlton trademark combined with the Boston Ritz-Carlton Hotel. Today, under the command of William B. Johnson (CEO) and Horst Schulze (COO), the privately-owned company runs 27 hotels and resorts in the United States and Australia. (4) Its future international expansion programs include adding hotels in Hong Kong, Barcelona, and Cancun. Ritz-Carlton also has nine international sales offices and employs 11, 500 people.

QUALITY-MANAGEMENT PROGRAM

Quality management begins with chief executive and chief working officer Schulze and the other 13 older executives who constitute the organization steering committee and the mature quality-management team. They meet weekly to examine product-and service-quality actions, visitor satisfaction, market progress and development, organizational indications, income, and competitive position. Approximately one-fourth of every executive's time is specialized in quality-related matters.

Gold benchmarks. Key product and service requirements of the travel consumer have been translated into Ritz-Carlton Platinum Standards, which include a credo, motto, three steps of service, and 20 "Ritz-Carlton Basic principles" (see Exhibit 1). Each worker is likely to understand and stick to these specifications, which describe techniques for solving problems guests may have as well as thorough grooming, housekeeping, and protection and efficiency expectations.

To provide superior service, Ritz-Carlton created its targeted selection process to ensure a successful match of potential employees to career. Upon being chosen, new employees are versed on the corporate culture by way of a two-day orientation, followed by extensive on-the-job training, then job documentation. Ritz-Carlton principles are reinforced continually by daily "line ups, " regular recognition for astonishing achievements, and a performance appraisal predicated on expectations explained during the orientation, training, and documentation processes.

To ensure guests' problems are resolved quickly, workers must act at first notice--regardless of the type of problem or customer complaint. All employees are empowered to do whatever it takes to provide "instant pacification. " No matter what their normal duties are, other employees must assist if aid is requested by way of a fellow worker who is responding to a guest's grievance or wish.

The responsibility for ensuring high-quality guest services and accommodations rests mostly with employees. Surveyed each year to see their levels of satisfaction and understanding of quality standards, workers are keenly aware that quality in visitor services is a high hotel and personal top priority. A complete 96 percent of most employees surveyed in 1991 designated this priority-even although company possessed added 3, 000 new employees in the previous 3 years.

Detailed planning. At each level of the company-from commercial leaders to managers and employees in the average person work areas--teams are billed with setting targets and devising action ideas, which are reviewed by the corporate steering committee. Furthermore, each hotel has a specified quality leader, who will serve as a source and advocate as groups and staff develop and put into practice their quality programs. To cultivate worker dedication further, each work area is covered by three teams in charge of problem solving, tactical planning, and placing quality-certification standards for each and every position.

The benefits associated with precise planning and the hands-on participation of executives are evident through the seven days leading up to the starting of a new hotel. Rather than opening a hotel in stages, as is the practice on the market, Ritz-Carlton is designed to have everything right when the door opens to the first customer. A "seven-day-countdown control plan" synchronizes all steps resulting in the starting. (5) The company leader and other senior leaders in my opinion instruct new employees on the silver requirements and quality management during a two-day orientation, and a specially chosen start-up team composed of staff from the company's other hotels ensures that all work areas, processes, and equipment are prepared.

Quality data. Daily quality production reports, produced from data posted from each one of the 720 work areas in the hotel, help as an early caution system for discovering problems that can impede progress toward get together quality and customer-satisfaction goals. Coupled with quarterly summaries of visitor and meeting-planner reactions, the put together data are weighed against predetermined customer expectations to boost services. Among the data gathered and tracked as time passes are gross annual guest-room preventive-maintenance cycles, ratio of check-ins without queuing, time spent to attain industry-best clean-room appearance, and time and energy to service an occupied guest room.

From computerized building and basic safety systems to computerized reservation systems, Ritz-Carlton uses advanced technology to full edge. For example, each employee is trained to note a guest's likes and dislikes. Those data are joined in a computerized guest-history profile that provides home elevators the choices of 240, 000 duplicate guests, resulting in more customized service.

Quality results. The purpose of these and other customer-focused methods is not simply to meet the expectations of guests but to supply them with a memorable visit. Corresponding to research conducted for Ritz-Carlton by an unbiased research organization, 92 to 97 percent of the business's guests leave get back impression. Following its quality program, Ritz-Carlton received 121 quality awards from the travel industry in 1991 alone, including: "Best Hotel Chain in the United States, " by Zagat Travel Study; "Index Award of Excellence, " by Hotel and Travel Index, "Alred Prize" for Best Hotel String, by Corporate Travel; and "Top Hotel String in Capability to Service Meetings, " by Successful Meetings.

PATRICK MENE AND TQM

Patrick Mene signed up with the Ritz-Carlton Hotel Company three years ago as corporate and business director of quality to coordinate and spearhead the business's TQM program. Ahead of signing up for Ritz-Carlton, he was with L'Hermitage Hotels in LA and offered as general manager of the Le Bel-Age. He in addition has been associated with Hyatt Hotels, Westin International, and Omni Hotels. He brings to his position a comprehensive understanding of all aspects of the hotel industry, from operations to food and beverage and management training.

In Mene's view, Ritz-Carlton's approach to the Baldrige award began a long time before the honor was founded and before anyone got heard about TQM. "About eight years ago Ritz-Carlton attempt to be a sole supplier of luxury properties that satisfied Mobil's and AAA's highest benchmarks. Six years later, we'd achieved recognition from those self-employed ranking organizations as the only hotel company that regularly met their highest specifications, " he said. Now, Ritz-Carlton is the benchmark used by AAA and Mobil in rating lodging properties.

"At that point, company leader Horst Schulze shook us to our foundations one day when he told us, 'You know very well what? We're a blessed, bloody six, over a scale of 1 to ten. ' What he was saying was that in our customers were still not being satisfied all the time, " Mene said.

He said that despite a want to find regions of improvement and a strong quality-based culture, the company had go out of ideas for how to boost. "We went to many of our main customers and self-employed quality-rating organizations, " Mene recalled. "They advised turning to the Baldrige criteria for assistance. Those criteria were hard to understand, and at first we didn't think they were highly relevant to our business. We slowly but surely realized the award criteria could serve as a road map for quality improvement. "

"I believe it's important that everyone understands we weren't a classic TQM company to begin with, " Mene added. "Despite our culture and obsession with quality improvement, we weren't a classic TQM company and I don't even understand to this day if we are, although we certainly apply many of the principles. We aren't as statistically controlled as a few of a lot more traditional TQM companies, but we have been beginning to move increasingly more in that direction. "

EMPOWERMENT

One of the planks of TQM, empowerment, was an easy step for Ritz-Carlton, Mene said. "To us, empowerment means giving employees the responsibility for solving friends' problems. We discovered that happens in two stages if you're staying at a hotel therefore you encounter problems or something is wrong. In stage one, the employee will have to break away from his or her normal routine to consider an instantaneous positive action, to investigate what went incorrect, and straighten it out. "

Breaking away is not exactly the correct term, since dealing with friends' problems is a major consideration in visitor service. Mene explained, "We would rather have a guestroom attendant, for example, deal with correcting a guest's problem at that moment rather than having the director of marketing fix it later. It's the 1-10-100 rule that people have confidence in: What costs you a money to fix today will cost $10 to repair tomorrow and $100 to fix downstream. "

Teamwork. Creating a team approach have occasion some amount of resistance from managers, because of its novelty. Employees fulfilled as teams to spot problem patterns, prioritize problems, and develop methods to prevent their recurrence. "This is the phase that was completely new to us, " Mene said. "Just how we attended to managerial concerns was by concerning all the managers in an assessment process. Later, we went on to create proper planning teams where every level of the business was priced with the responsibility to set goals and action programs. We allowed the managers to sit in on review boards and examine each team's objectives and plans. Of course, they had some training on what things to look for. The managers came to see their role as still accountable for objectives and solutions and to ensure they were adequately investigated and funded, but with input and participation from employees. "

Mene said the business has learned that not everyone wishes the responsibility of being on a strategic-planning team and that some professionals are better suited to a team approach--particularly as facilitator or coach--than others. "We use screening process methods in hiring to find out who shares inside our ideals, and we use predictive musical instruments to inform if people are suitable to teamwork. That is clearly a discovery, " he said. "We also spent more time building the relationship of the team. We required for awarded that if you were already a good Ritz-Carlton worker, you already grasped our concept of lateral service. So whenever we put a group of cross-functional people together in a team, we thought they would just naturally work together as a team and move forward. But what we found was that we had to invest more time to permit the associates to get to know each other and understand how to build and maintain support before they could really get the type of improvement we wanted. Let's just say that we learned how to raised build and maintain our clubs. "

FEEDBACK

Winning the Baldrige honor actually is a "good-news, bad-news" situation. Per month or two after being successful the prize, Ritz-Carlton received a opinions report recommending 75 regions of improvement. The next phase, Mene said, was to go right back after problems. "We announced to the employees that by 1996, and this one really shook them, we wanted to reduce the circuit time (the time between identifying a guest's need and satisfying that require) by 50 percent, and we also wished to set a target of 100-percent customer retention. So, we actually set goals of extensive magnitude right on the pumps of receiving the Baldrige, long-range quality goals. What I believe got people's attention was that not only performed we've new high-quality goals, but we weren't preventing at Baldrige. We needed the highest quality level. " Ritz-Carlton did not focus on such traditional goals as occupancy rate because the business expects the concentrate on quality goals will develop quality creation that will drive the financial results. "That was a genuine shock to our employees, " Mene said. "Whether we end up with the highest average rate and occupancy I have no idea, but we will contain the most efficient system to gratify customers. "

SUPPLIERS, TOO

Ritz-Carlton is currently working with its suppliers for quality management. The company has developed company certification, where the business not only actions how often suppliers meet technical specs on time, but how well they improve their pattern time from order to delivery. "If indeed they don't possess the willingness to achieve that we can no longer do business with them, " Mene warned. "We want to see which suppliers are best in a position to meet our volume needs, and that may meet our quality needs by doing an internal assessment or by applying for the Baldrige honor themselves. "

The internal examination involves a thorough 100-question inner audit of suppliers' functions, plus a review of the folks who use their products and services, including purchasing realtors, accounting workers, sales folks, and hotel guests, who also rate the grade of those suppliers' products and services. Ritz-Carlton ranks the suppliers predicated on a credit score developed from the supplier audits and consumer surveys. The goal is to get suppliers to boost through a documentation program to become fully integrated partner.

"The majority of our suppliers already are involved in this approach and they're happy to share with us their features, but we have all types of other suppliers turning up and saying, 'Look at me, take a look at what I could do. ' So I think the response to our program has been good, " Mene said.

HUMAN RESOURCES

Ritz-Carlton completely integrates recruiting and businesses, so that an exterior observer might be challenged to determine who have been the human-resources people and who had been the procedures people, Mene seen. Human-resources and procedures personnel work together to choose, orient, train, and certify employees. They also ensure that the employees remain deeply involved with running the business, since every level of the organization is charged with the duty of setting goals and objectives.

Appraisal. "Our quality performance requirements are also set up by employees through their work teams in each section of the hotel, " Mene said. "This leads me to our performance-appraisal system, in which we carry our people in charge only for the items they can control. Appraisal is dependant on the things that we informed employees were important during their orientation--the gold benchmarks. Once our employees become authorized, performance appraisals are only a recertification, so that training may become a continuing process. We also ask our visitors to contribute to the procedure by identifying problems and attempting to solve them. "

ADVICE FOR EDUCATORS

Mene had the next thoughts for teachers: "The education establishment must recognize that quality is a whole new branch of knowledge, and it should be educated to the students as an completely separate concept. I don't even know if it ought to be a separate course or something that is inculcated throughout the curriculum. I do believe the manager into the future must be a generalist. I don't think we teach students enough about interpersonal relationships or how to build and maintain a team way. (6)

"I think we should coach them less about money and more about quality. We've got to get them off of the financial agenda. Manage to survive improve a company's financial performance merely by concentrating on budget. So, we can't tell human-resources people that they be in charge of personnel, and also to controllers that they be accountable for finances. Future professionals, and employees to a new extent, need to know and be accountable for quality, connections, and budget. "

ADVICE FOR INDUSTRY

To make quality work effectively, the president and senior market leaders must start and drive the procedure, Mene is convinced. "The quality culture must be there, and top leaders help to placed that. You'll want to understand the criteria before starting, since it may seem to be irrelevant to the typical hotel. Guidebooks and TQM workshops can be helpful. An application committee should be formed to assess the existing situation and apply the TQM process. Our committee was divided into seven subcommittees predicated on the seven exam areas in the Baldrige application, with a senior manager as head for each area. Developing a specific plan or work flow similar to opening a new hotel is extremely important for the purpose of completing the Baldrige software itself. The application form process of drafting the statement and then researching, editing, posting, printing, and defending it is a major undertaking. I would recommend by using a professional editing team, because you are posting a reserve, make no fault about any of it. I also suggest editing the final file in a business-center environment, just like a retreat, where you get your editing team alongside one another for a week to lock yourself down and simply feel the iterations. The editing process is bigger than one might consider. Finally, I believe you ought to challenge your company with a fantastic goal. The goal to improve utilizing the application as helpful information for self-assessment and developing a quality program should outweigh the goal of wanting to gain the Baldrige prize.

IMPLICATIONS IN THE RITZ-CARLTON EXPERIENCE

The Ritz-Carlton case demonstrates that the hotel industry can apply Baldrige-award requirements to develop a successful quality program exactly like other businesses in the processing and service establishments. The chief system for ensuring the steady quality improvement required by the Baldrige award is empowering employees, which means providing them with the authority to identify and solve customer problems at that moment and to improve work operations. A corollary of empowerment is that employees can make modest changes in normal strategies, especially in resolving a guest's problem. Ritz-Carlton, for example, allows each individual employee to invest up to $2, 000 to satisfy a guest. As Patrick Mene so aptly said, "Ritz-Carlton employees know that from day one they can be empowered to break away from their normal exercises whenever they see a problem to bring that problem under control. " For empowerment to truly have a positive result, however, employees must have the knowledge and skills to make use of their power well. That will require training not only in quality concepts and quality control tools and techniques, but also in how to get the job done as well as how to work together as a team. (7)

Another lesson discovered from Ritz-Carlton's quality work is that hotel companies can perform excellence in quality improvement without needing the advanced statistical techniques normally associated with manufacturing companies. Although some persons feel that the precisely measured Baldrige criteria prefer manufacturing, the honor does not require companies to use computer-generated statistical techniques. Companies are required, however, to acquire and analyze information related to client satisfaction, quality of products and services, cycle-time lowering, and financial and employee-related performance, and also to make comparisons with rivals and industry benchmarks.

In fact, calculating quality is one area where Ritz-Carlton experienced problems. In our conversation, Patrick Mene expressed how difficult it was to find quality-related home elevators the industry. Except for financial data, neither solitary opponents nor the industry all together was monitoring quality-assessment information. The need to change current systems of information gathering and research to focus more on quality and data related to client satisfaction is a problem to other hotel companies in planning their quality programs. Ritz-Carlton's lessons was that it needed immediate responses throughout the system and accessible to all employees, merely to keep rate with ever-changing customer demands.

The Ritz-Carlton experience also offers lessons for other hotel companies enthusiastic about chasing the Malcolm Baldrige National Quality Honor. For the Ritz-Carlton, being successful the Baldrige has been a double-edged sword. On the main one hand, the award is a crowning success for employees on their successful development and execution of TQM. It has additionally been effective in solidifying the business's position as a head in the blissful luxury hotel market and in making business from companies enthusiastic about doing business with a Baldrige honor winner. On the other hand, the number of requests for presentations, appearances, tours, and standard information being placed on Ritz-Carlton's executives and staff has been staggering--over 600 in the first 90 days of 1993 alone. Patrick Mene accepted to spending more than 50 percent of his time touring and making presentations on Ritz-Carlton's quality program and the Baldrige experience. Even though the award winners are not required to respond to such needs, they are anticipated to support the quality movement by writing what they have discovered with others.

Mene would change nothing at all, though. The chain's staff no longer have to influence prospective clients that its properties offer a high-quality guest experience. "People need to comprehend the economics of quality, " Mene warned. "When you do not satisfy all the clients at all times it will set you back a lot of money. So we found the benefits more than outweighed any problems. A quality approach to owning a business is the most cost-effective, least capital-intensive way to profitability. I've only positive what to say, and I've put in many years of my life upon this. "

In light of the significant effort and real costs involved in fighting for the Baldrige prize, not to mention a hefty up-front application fee ($4, 000), hotel companies may want to consider whether they actually want to try for the prize itself. Companies that seek the honor merely to gain publicity or prestige will find that such pursuits will not hold up against the scrutiny that examiners give each applicant. (8) The real danger lies in becoming more worried about winning the award than with quality improvement. (9) Today, Baldrige-award winners typically spend several years working on TQM before even applying for the award, and on that report, Ritz-Carlton's "born at delivery" idea to quality appears to be prescient.

Ritz-Carlton's experience with TQM and the Malcolm Baldrige Country wide Quality Prize provides valuable lessons for any hotel company. The hotel industry today has been challenged by way of a sluggish current economic climate, increased multinational competition, and a more-sophisticated and challenging customer. How these issues are resolved may very well determine the difference between success and failure. While methods to TQM may differ depending by using an organization's unique circumstances and characteristics, the Baldrige-award requirements serve as a good guide for establishing and monitoring a quality-improvement program.

If the Ritz-Carlton experience teaches us anything, it's a focus on customer satisfaction must be built into the management functions of the business and supported through an built-in system of information evaluation, total employee involvement, training, and the ongoing effort to boost service and product quality.

1 A lot of the information presented here is designed from the 1992 Award

Criteria: Malcolm Baldrige Country wide Quality Award. To secure a copy free, contact: Malcolm Baldrige Country wide Quality Award, Country wide Institute of Criteria and Technology Gaithersburg, MD 20899 (telephone: 301-975-2036).

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

3 R. Dan Beid and Melvin Sandler, "An Evaluation of the Baldrige Award and its own Implications for the Hotel Industry, " abstracted in 1991 Annual CHRIE Convention Proceedings (Washington, DC), pp. 256-257.

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

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

6 These claims are congruent with the studies of the stakeholder survey reviewed by Cathy Enz, Leo Renaghan, and A. Neal Geller in "Graduate-Level

Education: A Survey of Stakeholders, " in this issue's Teachers' Website.

7 For empowerment to he effective, employees must also be enabled. That is why Deming emphasized the necessity for training and education in his principles of TQM. Deming's ideas are shown in: Mary Walton, The Deming Management Model (New York: Putnam/Perigee, 1986).

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

Maryland: Ducochon Press, 1991), pp. 159-167.

9 Jeremy Main, "Is the Baldrige Overblown?, " Lot of money, July 1, 1991, pp 62-65.

EXHIBIT 1

THE RITZ-CARLTON "GOLD STANDARDS"

THE RITZ-CARLTON CREDO

The Ritz-Carlton is a place where the genuine attention and comfort of your guests is our highest quest. We pledge to supply the best service and facilities for our friends who will always like a warm, calm yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of the guests.

THE RITZ-CARLTON MOTTO

"Were Girls and Gentlemen portion Gals and Gentlemen. " Practice teamwork and "lateral service" (i. e. , employe-to-employee contact) to make a positive work place.

THREE STEPS OF SERVICE

1. A warm and genuine greeting. Use the guest's name, if so when possible.

2. Anticipation and compliance with visitor needs.

3. Fond farewell. Give friends a warm good-bye and use their titles, if so when possible.

THE RITZ-CARLTON "BASICS"

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

2. The three steps of service will be practices by all employees.

3. All employees will successfully complete Training Recognition to ensure they understand how to perform for the Ritz-Carlton standards in their position.

4. Each staff will understand their work area and hotel goals as founded in each strategic plan.

5. All employees will know the needs of their internal and exterior customers (friends and fellow employees) so that people may deliver the merchandise and services they expect. Use guest desire pads to record specific needs.

6. Each worker will continuously identify defects (Mr. BIV": Problems, Rework, Breakdowns, Inefficiencies, and Variations) throughout the hotel.

7. Any staff who receives a person grievance "owns" the issue.

8. Instant guest pacification will be guaranteed by all. React quickly to improve the challenge immediately. Follow-up with a telephone call within 20 minutes to check that the problem has been solved to the customer's satisfaction. Do everything you possibly can never to lose a visitor.

9. Guest-incident action varieties are being used to record and talk every incident of guest dissatisfaction. Every employee is empowered to resolve the problem and also to prevent a repeat occurrence.

10. Uncompromising levels of cleanliness are the responsibility of each employee.

11. "Smile. We are on level. " Always maintain positive attention contact. Utilize the proper vocabulary with our guests. (Use words like: "hello, " "certainly, " "I'll be pleased to, " and "my pleasure. ")

12. Be an ambassador of your hotel in and beyond the work place. Always talk favorably. No negative feedback.

13. Escort friends rather than directing out directions to some other section of the hotel.

14. Be experienced of hotel information (time of procedure, etc. ) to answer guests' inquiries. Always recommend the hotel's retail and food and drink shops prior to facilities beyond your hotel.

15. Use proper phone etiquette. Answer within three jewelry and with a "teeth. " When necessary, ask the caller, "CAN I place you on carry. " Do not screen message or calls. Eliminate call transfers when possible.

16. Uniforms are to be immaculate; wear proper and safe boots (clean and refined), as well as your correct name label. Take pride and attention in your personal appearance (adhering to all grooming benchmarks).

17. Be certain of your role during disaster situations and be aware of hearth and life-safety response operations.

18. Notify your supervisor immediately of dangers or injury and of equipment or assistance that you'll require. Practice energy saving and proper maintenance and repair of hotel property and equipment.

19. Guarding the assets of an Ritz-Carlton Hotel is the responsibility of every worker.

EXHIBIT 2

FIVE TENETS OF TQM

While the following five principles are not the only real tenets of Total Quality Management, by focusing on these rules, employees will recognize that TQM is not just another "program" that will likely vanish. The main element is that TQM can be an included system of techniques and training.

(1) Commit to Quality. Making quality a number-one concern requires an organizational culture to aid it, in support of top leadership can foster a TQM culture. Thus, the first rung on the ladder toward TQM must require lively support and way from top-level professionals, especially the CEO.

(2) Concentrate on Customer Satisfaction. Customers are concerned about quality and, in simple fact, specify it for the business. Successful TQM companies are acutely aware of the market. They really know what their customers really want and invariably meet and go over their anticipations.

(3) Assess Organizational Culture. A go for band of top managers and employees from different parts of the company should examine the organization, with a give attention to its culture, and determine the fit between that culture and TQM's guidelines. This assessment, which might take almost a year to complete, will help management build on advantages, identify weaknesses, and established priorities.

(4) Empower Employees and Clubs. Although TQM is led from the top, the true work occurs "bottoms-up. " Empowering employees and groups requires training these to use their authority effectively. It could also require redesigning some jobs to help a team approach and modifying guidelines and routines that support rewards for results and other social elements that empower employees.

(5) Solution Quality Efforts. The capability to gauge your time and efforts toward superior employee performance, streamlined decision-making, company responsiveness, and improved client satisfaction is endemic to the TQM process. Information gathering and examination techniques should help identify factors behind work-process problems and be well-designed, timely, and straightforward. In the end, TQM is situated mostly on rational thinking and problem resolving, not on superior reports and other way of measuring techniques.

Reproduced with agreement of the copyright owner.

Further reproduction or circulation is prohibited without agreement.

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