Video Case

Please read the video transcript and answer the following prompt in 100-150 words. Here is the video transcript (couldn’t upload video)

Prompt: How did The Ritz-Carlton Hotel improve their customer satisfaction through quality improvement?

00:18 >> >> Luxury, service, quality,

00:21 >> these three words capture the essence

00:24 >> of a stay at The Ritz-Carlton.

00:27 >> Creating this atmosphere of refined elegance

00:29 >> and relaxation may appear effortless to a guess

00:33 >> but every employee at any

00:34 >> of the company’s 31 worldwide locations will tell you,

00:38 >> it takes a daily commitment

00:40 >> to make the desired experience happen for each and every guest.

00:44 >> >> The Ritz-Carlton Hotel is a place

00:47 >> for the genuine caring comfort

00:48 >> of our guest is our highest mission.

00:50 >> >> We pledge to provide the finest personal service

00:53 >> and facilities for our guests who will always enjoy a warm,

00:56 >> relaxed, yet refined ambiance.

00:58 >> >> The Ritz-Carlton experience enlivens the senses,

01:01 >> instills well-being, and fulfills–

01:03 >> >> Even the unexpressed wishes and needs of our guests.

01:07 >> >> Winning the Malcolm Baldrige National Quality Award in 1992,

01:12 >> represented a significant milestone in the company’s quest

01:15 >> for quality achievement.

01:17 >> Ralph Vick, general manager of the Phoenix Ritz-Carlton,

01:21 >> participated in the 1992 application process.

01:24 >> >> The preparation for the Malcolm Baldrige application was

01:27 >> a very extensive one.

01:28 >> It took us a few years to really figure

01:30 >> out how we do this thing called Total Quality Management.

01:34 >> And I think one of the things that we identified very early

01:36 >> on was certain processes that were common throughout

01:40 >> of out hotel, all of our hotels.

01:41 >> For the very first time in our industry,

01:43 >> we looked at how work are done.

01:45 >> And through the process and process team management,

01:49 >> we were able to discover some significant ways

01:51 >> for improving our processes within our hotel.

01:55 >> All of which had many ramifications.

01:58 >> Most of them financial,

02:00 >> but a lot of them had moral applications

02:05 >> and really helped us take a look

02:07 >> at how we were running our hotels with our people

02:10 >> and had morale implications

02:13 >> like getting our employees really prompt

02:15 >> about getting the involved in the process.

02:18 >> >> A list of 20 Ritz-Carlton Basics now guide each days

02:22 >> efforts toward a company wide goal

02:24 >> of 100 percent customer satisfaction.

02:27 >> >> The basics play a very, very important role

02:29 >> in quality primarily because quality in a lot

02:32 >> of ways is a foreign subject in our industry so we have

02:35 >> to break it down to the basics.

02:36 >> One of the basics we refer

02:38 >> to is a gentleman that we call Mr. Biv.

02:40 >> And Mr. Biv is an acronym for mistakes, rework, breakdown,

02:45 >> inefficiencies, and variation.

02:47 >> And we call him Mr. Biv because he happens

02:49 >> to be this little gentleman that runs around our hotel and all

02:52 >> of our hotels from time to time and causes complexity

02:54 >> and break down on our system.

02:56 >> And through that simplification, we really are able

02:59 >> to help our employees identify with what some

03:02 >> of those defects are, and help relay and give us better answers

03:06 >> and better input for how to get rid of Mr. Biv in our system.

03:11 >> >> Achievement of quality at the Ritz-Carlton is monitored

03:14 >> through a variety of mechanisms: customer surveys and letters,

03:18 >> employee reports, and financial performance measures.

03:22 >> When problems are detected, they are researched and evaluated

03:27 >> so that appropriate action can be taken.

03:29 >> >> Quality is monitored in our hotels on a daily, weekly,

03:32 >> monthly, and yearly basis.

03:34 >> Primarily daily and one of our tools that we have

03:36 >> that we use is called the daily quality production report.

03:40 >> And it is a conglomeration of a lot of information.

03:44 >> It comes from all over the hotels such as comment cards,

03:48 >> guest incident action form which is a tool that we have

03:51 >> for detailing a guest incident if it happens,

03:56 >> housekeeping reports, engineering reports,

03:59 >> defect reports that are pulled in from our employees

04:02 >> when they’re telling us what’s going wrong

04:04 >> in their work environment on a daily basis.

04:06 >> And with that information, we were able

04:08 >> to identify what our top 10 defects are

04:11 >> in our hotel per month for instance.

04:14 >> And we can take a look at those top defects and project

04:18 >> by project implement a plan for getting rid of that defect

04:24 >> through use of our quality–

04:25 >> and with the use of our quality tools.

04:27 >> All our employees are trained in the TQM processes and one

04:31 >> of the suggestions that we hear

04:33 >> from them quite often are ideas for improvement.

04:37 >> With those ideas of improvement come, in general

04:40 >> and occasionally, a cost associated

04:42 >> for what it’s gonna cost to do that improvement.

04:44 >> And we have trained all our employees along

04:47 >> with our management staff to take a look at using one

04:49 >> of our quality tools, referred to as the cost benefit analysis

04:52 >> for determining if that project is a worth while project or not.

04:55 >> Sometimes, a great idea may be a wonderful idea,

04:58 >> may add tremendous value to our customers feelings and business

05:03 >> in our hotel but, unfortunately,

05:05 >> it may not be a financially feasible product.

05:08 >> And the use of our cost benefit analysis really enables us

05:13 >> to determine whether that project

05:15 >> or that idea is one worth implementing or not.

05:19 >> >> In an industry where the word quality can be just a buzz word,

05:22 >> Ritz-Carlton’s employees, working as a team,

05:26 >> know they must be on their toes at every turn.

05:29 >> >> Quality is on occasion a creative way of dealing

05:33 >> with stress in a hotel particularly as it relates

05:35 >> to self-directed work teams.

05:37 >> When we teach and our employees learn traditional management

05:42 >> responsibilities, they take on an awesome responsibility,

05:45 >> a responsibility that in other industries

05:48 >> and in other hotels they do not take.

05:52 >> And they take it home with them, quite honestly.

05:54 >> It’s an issue such as payroll and forecasting and scheduling

05:57 >> when our employees are doing this traditional management task

06:01 >> whereby they actually go home at night thinking

06:04 >> about who’s not gonna show up for work tomorrow morning?

06:07 >> So it does add a great deal of stress in the work environment

06:11 >> and quite frankly, we know, through our studies

06:13 >> and in other areas in other businesses that [inaudible]

06:16 >> in particular self-directed work teams are not for every one.

06:19 >> We know to expect casualties; some people do not operate well

06:24 >> within a self-directed work team because in our industry,

06:28 >> we traditionally manage from what we refer

06:30 >> to as a command and control point.

06:33 >> And in a self-directed work team,

06:35 >> we realize that our [inaudible] has to relinquish

06:38 >> that command and control.

06:40 >> Well, that command and control is picked up by someone

06:42 >> and it’s our employees.

06:44 >> So it does create stress but most of our employees working

06:48 >> for a career advancement and looking for education

06:51 >> and looking to continue their own growth have been extremely

06:54 >> receptive to the idea

06:56 >> and we have seen our internal customer surveys,

06:58 >> our employee opinion surveys improve greatly as a result

07:02 >> of the implementation of total quality management

07:04 >> and self-directed work teams.

07:06 >> >> What’s the biggest quality challenge facing the

07:08 >> Ritz-Carlton today?

07:10 >> >> Quality is not a fad or a phase

07:12 >> or a program [inaudible] here at Ritz-Carlton.

07:14 >> It’s a way of life for us.

07:15 >> We have very high expectations upon Ritz-Carlton by all facets

07:19 >> from our owners, from our employees, and from our guests.

07:22 >> And through TQM and the use of self-directed work teams,

07:25 >> it will enable us to continue a path of continuous improvement

07:29 >> and reach the levels

07:30 >> that everyone expects from a Ritz-Carlton.

07:34 >> [ Music ]