Ritz-Carlton Naples Shares World-Class Formula

By Newt Barrett

The Ritz-Carlton Naples is one of the finest hotels in the

world. The quality of its facilities and of its legendary service is no accident.

In fact, it’s the result of an evolving quality system that combines great

employees with finely-honed processes. A fortunate group of local executives

and educators spent a fine October day learning from the best of the best in

the world of continuous process improvement.

John Timmerman, the hotel’s director of quality,

orchestrated a day filled with the specifics of creating and maintaining an

environment where caring, empowered employees provide guests with an

astonishing level of service. In fact, the Ritz-Carlton folks have determined

that its sumptuous facilities are necessary but not sufficient to make it a

five-star/five-diamond resort. Rather, it is the lofty level of customer

service that makes the difference.

Secret #1: People

At the heart of its promise of outstanding customer service

is a total commitment to the welfare of its guests — and of its employees. The

Ritz-Carlton can afford to make such a commitment to its employees because it

selects them with extraordinary care. Typically, it rejects 92 to 95 percent of

all applicants. In a recent two-month period they received more than 1,000 job

applications. And at a September hotel job fair more than 200 hopefuls showed

up. Only a tiny fraction was hired. This selectivity is half the secret to the

Ritz-Carlton’s ability to deliver world-class service.

Equally important to the delivery of world-class service is

the commitment of the resort to its employees as eloquently stated in “The

Employee Promise.”

At the Ritz-Carlton, our Ladies and Gentlemen are the most

important in our service commitment to our guests.

By applying the principles of trust, honesty, respect,

integrity, and commitment, we nurture and maximize talent to the benefit of

each individual and the company.

The Ritz-Carlton fosters a work environment where diversity

is valued, quality of life is enhanced, individual aspirations are fulfilled,

and The Ritz-Carlton mystique is strengthened.

For those lucky few selected, the company takes particular

care that they are placed in the job that best suits their basic set of

‘talents’ — as the Ritz calls them. Once hired, the company commits to an

ongoing training process and genuine empowerment. The result is a motivated

group of employees on a mission to look after their guests, the hotel, and one

another. In fact, each employee is able to authorize an expenditure of up to

$2,000 — on the spot — to solve a guest concern. Now, that’s empowerment.

Moreover, the hotel company’s turnover is 29 percent vs. an

industry average of 105 percent; the Ritz-Carlton Naples’ turnover is even

lower at 17 percent vs. its biggest local competitor’s rate of 85 percent. That

low turnover rate alone would provide a dramatic competitive advantage over

other resorts in the Southwest Florida market — and around the world, for that

matter.

Secret #2: Process

But talented, trained, and motivated employees are not the

complete answer to understanding the Ritz-Carlton experience. The quality

processes that enable them to do their jobs effectively make the difference

between a very good hotel and a great hotel. From the late 1980s, the company

has been on a road to continuous quality improvement based on the establishment

of processes that let great employees do a great job.

Continuous process improvement enables great people to

function in an optimal way. For example, the ability to promise immaculately

clean rooms in which everything works is the result of processes that have been

established for that express purpose. The successful operation of the

Ritz-Carlton, Naples is the end result determining how to optimize each

critical process that leads to a wonderful guest experience. Done right,

optimum results are achieved with great efficiency of effort. In the end, doing

what’s required to build a world-class resort, enables a highly profitable

operation. Why? First, the closer each guest’s experience is to perfection, the

more likely they are to spend happily when they are there and to return — again

and again and again. Second, process improvement typically reduces costs by

eliminating useless steps, minimizing expensive guest complaints, and reducing

unnecessary cosmetic or remedial capital expenditures.

No matter what your business, there is a lot to be learned

from the Malcolm Baldridge, Florida Sterling award winner in our midst. If the

Ritz-Carlton, Naples offers this seminar again — don’t miss it.