Critical Analysis of Malcolm Baldrige National Quality Award with regard
THE RITZ-CARLTON® HOTEL COMPANY By: Kumar Pratik
History Established in 1983, the former owner, W.B. Johnson Properties, acquired the exclusive North American rights to the Ritz-Carlton trademark, the foremost name in luxury hotels. This status was largely due to the legendary Caesar Ritz who developed and operated two of the world’s best hotels in Paris and London. The hotels achieved such fame in the marketplace that they attained what is often referred to as “The Ritz Mystique”. Mysti que”. In 1995, 1995, The Ritz Ritz-Carl -Carlton ton was join jointly tly acqui acquired red by Marriott International Inc. to achieve their strategy of entering the luxury hotel segment of the industry; the takeover/merger occurred in 1997.
Three Steps of Service at The Ritz-Carlton 1. A warm warm an and d si sinc ncer eree gr gree eettin ing. g. Us Usee th thee gu gues estt name, if and when possible. 2. Anticipation and compliance with guest needs. 3. Fo Fond nd fa fare rewe well ll..
Give Gi ve th them em a wa warm rm go good od-b -bye ye
and use their names, if and when possible.
Warm reception at The Ritz-Carlton
PHILOSOPHY “We Are Ladies and Gentlemen Serving Ladies and Gentlemen”
THE EMPLOYEE PROMISE •
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At the Ritz-Carlton, their Ladies and Gentlemen are the most important resource in our service s ervice commitment to their guests. By applying the principles of trust, honesty, respect, integrity and commitment, they nurture and maximize talent to the benefit of each individual and the company. The Ritz-Carlton fosters a work environment where diversity is valued, valued, quality of life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton mystique is strengthened.
THE CREDO The Ritz-Carlton Hotel is a place where the genuine care and comfort of our guests is our highest mission. They pledge to provide the finest personal service and facilities for their guests who will always enjoy a warm, relaxed yet refined ambience. The Ritz-Carlton experience enlivens the senses, instils well-being, and fulfils even the unexpressed wishes and needs of our guests.
The Ritz-Carlton Experience
The Ritz-Carlton Experience
The Ritz-Carlton Experience
The Ritz-Carlton Experience
The Ritz-Carlton Experience
The Ritz-Carlton Experience
THE RITZ CARLTON BASICS 1. The The Cr Cred edo o is the prin princi cipa pall be beli lief ef of th the e Co Comp mpan any. y. It must be known, owned and energized by all. 2. Their Motto is : “We are Ladies and Gentlemen serving Ladies and Gentlemen.” As service prof pr ofes essi sion onal als, s, th they ey tr trea eatt th thei eirr gu gues ests ts and ea each ch other other with respect and dignity. 3. The Thr Three ee Steps Steps of Servi Service ce are are the the founda foundation tion of RitzRitzCarlton hospitality. These steps must be used in every interaction to ensure satisfaction , retention and loyalty.
THE RITZ CARLTON BASICS contd... 4. The Employee Promise is the basis for the RitzCarl rltton work en envvir iro onmen entt. It is hon ono oured by all employees. 5. All em empl ploy oyee eess nee need d to to su succ cces essfu sfully lly co comp mple lete te an annu nual al training certification for their position. 6. Company Objectives are communicated to all employ emp loyees ees.. It is eve everyo ryone’ ne’ss resp respons onsibi ibility lity to sup suppor port t them.
THE RITZ CARLTON BASICS contd... 7. To creat create e pride pride and joy in the the workpl workplace, ace, all empl employees oyees have the right to be involved in the planning of the work that affects them. 8. Each employee will need to continuously identify defects throughout the Hotel. 9. It is the the re ressponsi sib bility of ea eacch employ oye ee to create a wor w ork k env enviro ironm nmen entt of tea teamw mwork ork an and d late latera rall serv servic ice e so so that the needs of their guests and each other are met.
THE RITZ CARLTON BASICS contd... 10. Each employee is empowered. For example, when a gues gu estt ha hass a pr prob oble lem m or nee needs some someth thin ingg spe peci cial al , you should break away from your regular duties to address and resolve the issue. 11. Uncompromising level of cleanliness resp re spon onsi sibi bili lity ty of ev ever eryy em empl ploy oyee ee..
is
the
12. To provide the finest personal service for our guests , each empl plo oyee is re ressponsi sib ble fo forr iden enttify fyiing and record rec ording ing ind indivi ividua duall gue guest st pre prefer ferenc ences. es.
THE RITZ CARLTON BASICS contd... 13. Never lose a guest . Instant guest pacification is the responsibility of each employee. Whoev ever er rec ecei eivves a complaint will own it, resolve it to the guest’s satisfaction and record it 14.. Be an am 14 amb bas assa sado dorr of of you yourr Hot Hotel el in and and ou outs tsid ide e of th the e workplace wor kplace . Commun Communicate icate any any concerns concerns to the appro appropriat priate e person. Each employee is responsible for creating a safe, secure and accident free environment for all guests and each other. 15. Protecting the assets of a Ritz-Carlton hotel is the responsibility of every employee.
Malcolm Baldrige National Quality Award Purpose: –
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To help stimulate American organizations to improve quality and productivity; To recognize achievements To establish guidelines & criteria that can be used by any organization in evaluating their own quality improvement efforts To provide specific guidance for other American organizations that wish to learn how to manage for high quality, etc.
Organizations involved in award administratio Organizations administration: n: administration: –
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Foundation for the MBNQA •
Established 1988
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Primary purpose is to raise funds for Award program
National Institute of Standards & Technology (NIST) •
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Department of Commerce has responsibility for Award program NIST is part of its “Technology Administration” NIST Mission: To aid U.S. industry through research & services
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American American Society for Quality (ASQ) –
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ASQ identifies, communicates & promotes the use of quality principles, concepts & technologies
Board of Overseers –
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Assists NIST in administrati administration on (under contract contract))
Advisory Board on the Award to the Department of Commerce
Board of Examiners –
Evaluates applications & provides feedback
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Makes recommendati recommendations ons
The Malcolm Baldrige Quality Criteria •
Embedded in each of these categories categories or dimensions the ideal is defined –
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Leadership ra eg c
ann ng
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Customer Focus
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Information & Analysis
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Human Resource Development
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Process Management
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Business Results
The dimensions interact and demonstrate the “systems” approach fundamental fundamental to the Baldrige ideal Leadership cr crea eate tess vi visi sion on,, va valu lues es,, an and d hi high gh pe perf rfor orma manc nce e expectations that are translated into strategy and action plans . strategy and action plans guide overall Human Human Resource Resourc Res ource e Development and drive the development of Process Management to en ensu sure re ac achi hiev evem emen entt of de desi sire red d Business Results. Results.
Inf Informa Information ormation tion & Analysis Anal An alysi ysiss ar are e cr crit itic ical al to ef effe fect ctiv ive e
decision-making in all aspects of the organization.
Quality Criteria explained •
Leadership –
•
Examines senior leaders’ personal leadership and invol olvvement in creati tin ng/sustaining values, direction, , .
Strategic Planning –
Examines how the organi Examines organization zation sets strateg strategic ic directions, how it determines key action plans, and how plans are translated into an effective performance management system
Quality Criteria explanation contd… •
Customer Focus –
Examines how the organization determ rmiines customer requirements and expectations, as well as how it enhances satisfaction
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Information & Analysis Analysis –
Examines the management and effectiveness of the use of data and information to support key organizational processes and the performance management system
Quality Criteria explanation contd… •
Human Resource Development –
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Examines how the workforce is enabled to develop and utilize its full potential, how it’s aligned with the ’ , an environment conducive to performance excellence, full participation & organizational growth
Process Management –
Examin Exam ines es ke keyy as aspe pect ctss of pr proc oces esss ma mana nage geme ment nt,, in incl clud udin ing g cust cu stom omer er-f -foc ocus used ed de desi sign gn,, pr prod oduc uctt an and d se serv rvic ice e de delliv ive ery processes, and partnering processes involving all work units
Quality Criteria explanation contd… •
Business Results –
Examines the organization’s performance and impro imp rove veme ment nt in key bu busi sine ness ss ar areas eas,, in incl clud udin ing g cu cust stom omer er , , human resource, stakeholder and partner performance, as well as operatio operational nal performance
The Ritz-Carlton Business Excellence Roadmap Approach “Plan”
Improve “Act”
MBNQA
Results “Check”
Deployment “Do”
Leadership Approach “Plan” o
A passion for excellence
o
The seven pyramid decisions (i)) 10 ea (i earr vi visi sion on (ii) 5 year mission (iii) 3 year objectives (iv) 1 year tactics (v) Strategy (vi) Methods (vii) Foundation
Leadership contd… o
Basic Empowerment Process
Leadership contd… Deployment Deployment “Do” o
All members of Senior Leadership personally ensure that each new ne w ho hote tel’ l’ss go good odss an and d se serv rvic ices es ar are e ch char arac acte teri rist stic ic of Th The e Ri Ritz tz-Carlton hotel company from the first day
o
The re resu sullts of the seve ven n spe peccif ifiic decisi sion onss fro rom m the
annual
strategi stra tegicc plan plannin ningg proc process ess are arra arrange nged d in a “Pyr “Pyrami amid d Con Concep cept” t” and distributed throughout the organization. o
The Gold Standards are reinforced daily in a variety of forums
Leadership contd… Results “Check” Leadership effectiveness is evaluated (1) On key questions of their semi-annual employee satisfaction results (these questions reveal if the respective leader has gained the full support of the Ladies and Gentlemen regarding our Gold Standards) (2) Through audits on public responsibility (i.e. Life Safety Systems, Security Systems, Food Preparation and Alcoholic Beverage Service, Environmental Stewardship).
Leadership contd… Improvement Improvement “Act” Gaps in le leaade ders rshi hip p eff ffec ecti tive ven nes esss are add ddrres esse sed d wit ith h development/training
plans.
For
widespread
deficiencies , the corporate human resource function develops/improves courses, processes of facilities.
Strategic Planning Approach “Plan” A description of the three major components of our planning process, including the pre-work known as the Macro Environment Analysis, is show in Figure
Strategic Planning contd… Deployment “Do”
Strategic Planning contd… Results “Check” Monthly performance reviews of the Strategic Plan are conducted by the upper managers at the corporate and hotel level. level. The framework framework of a typical typical review review is shown in Figure, Figure, which focuses on the pre-established performance indicators of the th e it ital al-F -Few ew Ob ec ecti tive vess as we well ll as ke ro roce cess sses es..
Strategic Planning contd… Improvement Improvement “Act” The
performance
reviews
are
translated
opport opp ortuni unitie tiess for imp improv roveme ement nt and inn innova ovation tion..
into These The se
decisions are determined by process owners with assistance from the special organization of Directors of Quality.
Customer Focus Approach “Plan” At The Ritz-Carlton, customer and market focus concentrates on the information needed for hotel development .
The many needs and sources of this information (i.e. market research) are summarized in the figure in the next slide.
Customer Focus contd…
Customer Focus contd… Deployment Deployment “DO” The specific actions taken by our Sales and Marketing Leaders to deploy our Market Research conclusions conss st o our ma or pro con proces cesses ses:: (1) The 6 P’s Concept (2) Operation of the CLASS database (3) Complaint Resolution Process and (4) Standard Performance Measurements.
Customer Focus contd… Results “Check” The effectiveness of their customer focus is evaluated through
reviews
of
their
standard
measures daily, monthly and annually.
performance
Customer Focus contd… Improvement “Act” The daily and monthly reviews identify performance gaps to
e corrected.
T e extensive ana ysis o t e
Macr Ma cro o Env Envir ironm onmen entt dr driv ives es confir confirma mati tion on or change changess in marketing strategy, objectives and plans.
Information & Analysis Approach “Plan” Two basic types of measurements are used at The RitzCarlton: (1) Organizational measurements for upper managers at both the corporate and hotel levels (2) Operational (i.e. process) measurements for planning, assessing and improving daily operations.
Information & Analysis contd.. Deployment Deployment “DO” The specific actions taken by Senior Leaders to deploy the information and analysis approach is based on the concept of individual process owners.
Information & Analysis contd.. Results “Check” Since they place such a strong emphasis on fact-based decisi dec ision on making making,, reliabi reliability lity of the the data is criti critical. cal. The They y rely on their highly tra rain ine ed Ladies and Gentlemen (including statistically trained at all levels) to insure data and inform information ation reliab reliability. ility. At the corpor corporate ate level, they assign individual process owners to assure that the data can withstand scrutiny and provide background information. They also retain third-party specialists to prov pr ovid ide e ind indep epen enden dentt re revi view ewss of inf infor orma mati tion on an anal alys ysis is and processes.
Information & Analysis contd.. Improvement Improvement “Act” Whenever Whene ver their process owners and consu consulting lting specialists specialists indicate that a change of plan is needed, the plans are rewritten, rebudgeted and reapproved. Their Ladies and Gentlemen, on a daily basis, identif ifyy and im imp plem eme ent improvement improv ementss in perfor performance mance measu measurement rement as expecte expected d in th the eir cu cult ltu ure an and d fa faci cili lita tate te th thrrou ouggh th the e tr traain inin ingg an and d performance management programs outlined.
Human Resource Development
Human Resource Development contd… Approach “Plan” Their Senior Leaders have decided to increase both the meaanin me ingg and sa sati tisf sfac acttio ion n th thei eirr peo eopl ple e de derriv ive e fr from om the heir ir work. This approach consists of three basic components: supposed to do (2) They know how well well they they are are doing doing and (3)) The (3 heyy hav ave e th the e au auth thor orit ityy to mak make ch chan angges in th the e process under their authority or their own personal conduct.
Human Resource Development contd… Deployment “DO” The specific actions taken to deploy our approach range across a broad spectrum, but most significant activities cons st o : (1) The Quality Selection process and (2) Employee Education, Training and Development.
Human Resource Development contd… Their education and training is designed to keep individuals up to date with business needs.
Human Resource Development contd… Results “Check” Resullts of th Resu the e se sele lect ctio ion n, tr traain inin ingg an and d de devvel elop opme men nt of our Ladies and Gentlemen are checked at key stages of progression: (1) Quality Selection Process Measurement (2) Training Certification Review (3) Performance Appraisal Review Evaluation (4) Analysis of employee surveys.
Human Resource Development contd… Improve “Act” Im rov rovement activities in Human Resources rel ext xten ensi sive vely ly on in intter erna nall au audi dits ts,, sit ite e vis isit itss by Sen enio iorr Human Resources Leaders and analysis of employee survey data
Process Management Approach “Plan” Through our market research which concentrates on the quality of hotel development and operations, we have hav e ide identif ntified ied key pro produc ductio tion n proc process esses. es. In add additi ition, on, they condu conduct ct forma formall discussio discussions ns betwe between: en: (1) Suppor Supportt and and operati operations ons employ employees ees and (2) Internal and external customers to identify administrative and support processes which impact our hotel products and our company’s mission.
The specific actions taken to deploy our annual process management approach flow from our strategic planning process to every job level and category in our company.
Process Management contd…
Deployment “DO” The specific actions taken to deploy their annual process management approach flow from their strategic planning process to every job level and category in their company.
Process Management contd… Results “Check” Although Althou gh they they contro controll many many sensory sensory charac characterist teristics ics of the products they produce, they try to “put it in numbers” in their system of process measurements.
Process Management contd… Improvement Improvement “Act” Standing cross-functional teams at all levels use “After Operations Measures” and customer survey inputs to im rove ke rocesses. These im rovements can come in two ways: (1) Major changes that require funding, resources and project management and/or (2) Incremental day-to-day improvements.
Business Results Business result includes these aspects: Customer focused results Financial and market market results Human resource results Supplier and partner results Organizational effectiveness results
“Elegance without warmth is arrogance.”
