.. Descr.i:heihe,g*.

ne,lalrn*
. .

sfei,iflqp.p+lgon:fients of McDonatd's a**:An'haUSBtiB ,pEnj*Uw

ln your own wordi, write down three things you learned in this chapter about being

Self-knowledge can be a powerful learning tool. Go to mymanagementlab and complete any of these self-assessment exercises: What's the Right Organiziiional Cuiture toi'tUef

i , :Usi*g:the:iea.uEs,oftVCI'r'|::.h.$

Ents;

identify personal $iiengtlas and wggknesies..Whii-:;

n n f,\r UF\}r

effiffitu$ffieKeffieL

Making You Say Wow

,Vhen you hear the name The Ritz-Carlton Hotels, what -vords come to mind? Luxurious? Elegant? Formal, or .raybe even stodgy? Way beyond my budget constraints? -hree words that the company hopes comes to mind are exemplary customer service. Ritz-Carlton is committed to :reating its guests like royalty. It has one of the most dis:lnctive corporate cultures in the lodging industry, and :mployees are referred to as "our ladies and gentlemen." :s motto is printed on a card that employees carry with :nem: "We are Ladies and Gentlemen serving Ladies and Sentlemen." And these ladies and gentlemen of Ritz have :een trained in very precise standards and specifications ior treating customers. These standards were established -rore than a century ago by founders Caesar Ritz and August Escoffier. Ritz employees are continually schooled

s
q
0)

G -E

n company lore and company values. Every day

at A doorman stands at the main entrance of The Ritz-Carlton

o (,

1S-minute "lineup" sessions at each hotel property. managers reinforce company values and review service tech-

in Tokyo, Japan.

:iques. And these values are the basis for all employee :r'aining and rewards. Nothing is left to chance when it
:omes to providing exemplary customer service. Potential : i res a re tested both for cu ltu ra I f it and for traits associated ,,rith an innate passion to serve. A company executive says, "The smile has to come naturally." Although staff

Discussion Ouestions
1. Using Exhibit 3-2 and the information from this case, describe the culture at The Ritz-Carlton. Why do you think this type of culture might be important to a luxury hotel? What might be the drawbacks of such a culture? 2. What challenges do you think the company faced in changing the culture? What is The Ritz-Carlton doing to maintain this new culture? 3. What kind of person do you think would be happiest

irembers are expected to be warm and caring, their

rehavior toward guests had been extremely detailed and scripted. That's why a new customer service philosophy rrplemented in mid-2006 was such a radical departure 'i-om what the Ritz had been doing. The company's new approach is almost the opposite

"om what the company had been doing: Don't tell employees how to make guests happy. Now they're
expected to flgure it out. Says Diana Oreck, vice president, -We moved away from that heavily prescriptive, scripted

and most successful in this culture? How do you think new employees "learn" the culture?
4. What could other organizations learn from The Ritz,

,pproach and toward managlng to outcomes," The out:ome didn't change, though. The goal is still a happy _luest who's wowed by the service received. However, -nder the new approach, staff member interactions with -:uests are more natural, relaxed, and authentic rather :ran sounding like they're recited lines from a manual.

Carlton about the importance of organizational

cu ltu re?

Sources: The Ritz-Carlton, http://corporate.ritzcarlton.com, March 10, 2008; R. Reppa and E. Hirsh, "The Luxury Touch," Strategy & Business, Spring 2007, pp.32-37; and J. Gordon, "Redefining Elegance," Training, March 2007, pp.14-20.