The Ritz-Carlton Hotel (RCH) faces a dilemma, change its seven-day countdown process and succumb to the pressures of Millennium Partners (MP) or maintain the company’s proven strategy and open at a manageable occupancy level. By examining how RCH’s culture, leadership, and service contribute to the essence of the Ritz-Carlton we will show how RCH effectively opens new hotels and continues to operate at a high level.
Essence – RCH is a service company that prides itself on high levels of customer satisfaction. By putting customer satisfaction first, we maintain the Ritz-Carlton Mystique.
Culture – RCH sells an organizational culture dedicated to treating and developing employees as business ladies and gentlemen, enabling each individual to treat their customers in the same regard.
Service – By ensuring that all employees are aligned with the RCH mission and providing them with the tools to do their job, RCH creates an environment where continuing levels of high quality service can be maintained.
Leadership – “Ritz-Carlton leaders are responsible for stewarding an icon in the luxury market.” By assuming a transformational role during hotel opening and transitioning into a transactional role to maintain employee performance and motivation, RCH is able to continue as the gold standard of service industry.
Our recommendation is to utilize the proven seven-day process during the Washington D.C. opening. What was once a 14-day countdown became a 10-day countdown and is now a well-packaged one-week orientation that produces the most effective experience for new RCH employees. Lengthening this process will only waste money and time, and will also diminish the powerful emotional significance that transforms normal people into RCH ladies and gentlemen. In order to conciliate MP, we suggest that RCH maintain the current orientation system but increase capacity at a higher rate within the first two months of opening (versus all at once); a compromise