Ritz Carlton Essay

1609 Words 7 Pages
In 1983, President and COO, Horst Schulze, decided upon a strategy to manage the Ritz Carlton in order to compete on quality. The strategy affected the entire organization, with significant differences in:
·     Defining traits of all company products defined in the company Credo
·     Translating the Credo into basic standards to clarify the responsibilities for employees
·     Personally train employees the new Ritz-Carlton Credo and basic standards (the Gold Standards)
·     Aggressively instilling a passion for excellence
Five years later, Schulze began using the Malcolm Baldridge National Quality Award criteria to develop a system of
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“Check” – Leadership effectiveness is evaluated on key questions of the Ritz-Carlton’s semiannual employee satisfaction results and also through audits on public responsibility.
“Act” – Gaps in leadership effectiveness are addressed with development/training plans. For widespread deficiencies, the corporate human resource department develops and improves courses, processes, or facilities.
Criteria 2: Strategic Planning
“Plan” – An extensive analysis is performed to understand the current state of the macro environment in which the Ritz-Carlton operates. Using the Macro-Environment Analysis, Senior Leaders confirm or make changes to the 10-year vision, 5-year mission, strategy, methods, and foundation. Discrepancies identified in the analysis are used to create the 3-year objectives.
“Do” – Specific actions by Senior Leaders to deploy the 3-year objectives are as follows:
·     Develop production processes
·     Deploy support processes
·     Develop preliminary plans/budgets
·     Finalize the Ritz-Carlton pyramid plan and budgets
·     Reinforce the pyramid concept/plan/budgets
·     Communicate the pyramid concept to the employees
·     Execute plans
·     On-going daily lineup

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