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The Ritz-Carlton

Angela Cauthorn
Nneka Eni
Heather Kromer
Jessica Lovorn
Ryan Rothermel
Peter Singer

Presentation Overview

Company History
Business Model
Current State
7 Day Countdown
Learning Methods

Summary & Group Recommendation


Ritz-Carlton Now
No Ordinary Boot Camp
Learning Methods

Ritz-Carlton History
Cesar Ritz
Shepherd in Switzerland
Moved to Paris and worked in some of
the finest hotels and restaurants
Opened first hotel in Paris, followed by
London (1898)

Dubai

Ritz-Carlton History
1927: Ritz-Carlton Hotel Company

expanded to North America (Boston)


1983: Atlanta based Johnson Company
bought North American rights to name
1997: Marriott International purchased
Ritz-Carlton
2000: Ritz-Carlton primarily a
management company operating 38
hotels and resorts across the globe
Dubai

Millennium Partners Overview


New York based real estate
development group
High end luxury apartments
Height
Light
Views
Service

Dubai

What are the basic characteristics of the RitzCarlton business model?

Ritz-Carlton Business Model


Focus on guests
Greet at airport with mimosas and
discount coupons on a silver tray
Technology Butler
Airport check-in concierge
Event planners the vital few
40% of annual sales income

Dubai

Ritz-Carlton Business Model


Management Contracts
Real estate crash of the late 1980s
Hotel owners gained leverage in
management contract negotiation
process
Wanted more voice in how properties
were managed

Dubai

What is Ritz-Carlton selling?

Quality at Ritz-Carlton
2 Time Winner of Baldrige Award for
Quality
Total Quality Management
Continuous improvement
Programs designed to meet customer needs

Service Quality Indicators


Guest Recognition
Dubai

Human Resources at RitzCarlton


We respect our employeesYou have to
have a passion for people. If you have
an accounting approach to human
resources, then youre bound to failA
successful business is one that is capable
of enlisting an employee not only for his
muscles and his labor, but also for his
brain, his heart, and his soul.
Dubai

Human Resources at RitzCarlton


20% annual turnover rate
Industry average: 100%

Day 21 Event
Degree to which company lived up to
promises made to employees during
orientation

25% of management began as hourly


employees
Extensive formal and informal training
Dubai

The Washington D.C. Hotel


The complex was located in the Foggy
Bottom Historic district of Washington D.C.
For the first time the Ritz-Carlton was
opening a hotel that was part of a multiuse facility
The hotel was owned by Millennium
Partners who had also signed contracts
with The Four Seasons, the Ritz-Carlton's
largest competitor
Washington D.C.

The Hospitality Complex

The complex covered 2.5 acres


It included 162 luxury condominiums
A 100,000 square foot sports club
Splash spa
Three restaurants
40,000 square feet of street level
restaurants and retail shops
And the 300 room hotel
Washington D.C.

Hotel Opening Process


The process was divided into three
sections
The Property
Market Customization
Staffing

Washington D.C.

The Property
Many decisions have to be made regarding
the site of a new Ritz-Carlton hotel
The new D.C. location was desirable
because of its proximity to may sites of
interest such as the White House, Capitol
Hill, Embassy Row and the Foggy Bottom
Historic district
Washington D.C. also attracted foreign
diplomats and other potentially strong
clientele
Washington D.C.

Market Customization
The Ritz-Carlton had to customize each
hotel to meet the local market demand
In recognition of the fact that most of
the potential customers were internet
savvy, the hotel planned to link
restaurant services to the internet
Hotel guests and condominium residents
could order food online

Washington D.C.

Market Customization
They also decided to break away
from the companys historic English
tradition
The Ritz-Carlton recognized that old
English tradition did not work well in the
new millennium; especially since their
main competitor was The Four Seasons

Washington D.C.

Staff Selection
Millennium Partners had the right to
approve the individuals nominated by
the Ritz-Carlton for the executive
positions
The General Manager, the Director of
Marketing and the Controller
These executive members then selected
their function managers who in turn were
responsible for hiring line-staff members
Washington D.C.

Methods of Staff Selection


Personnel recruitment- James
McBride dined at the competitors and
distributed cards with job application
information to exceptional servers
Ritz Carlton Job fair- Two-day
event for job applicants, where they
were treated to the service oriented
culture that made the Ritz famous
Washington D.C.

Seven Day Countdown


This was the new employees first
encounter with the hotel, that started
exactly seven days before the grand
opening of the hotel
The first 2 days were devoted to orienting
employees to the company culture and
values
The next five days were devoted to more
skills training and trial runs of service
delivery
Washington D.C.

Day One: Staff Orientation


Big Pep Rally
Enthusiasm around the Ritz-Carlton
culture

Schultz addresses new employees


Audiovisual Training Method
Lecture Training Method

Service Philosophy
Gold Standards
Hong Kong

Day One: Leadership


Orientation
Leadership Orientation
Different approach from staff orientation
Focus on the bottom line

Modified version of team leader training

The business is created for one reason


to make money. This is your role.
Hong Kong

Lecture Method
One way communication from trainer
to the trainee through spoken words
Least expensive training method
Best used for getting large amount of
information in a well thought-out
manner

Hong Kong

Audiovisual Instruction
Overhead, slides, and video in
conjunction with lecture
Multiple advantages for trainers:
Ability to go back or skip forward in lesson
Can be watched as many times as needed
Exposure to real life situations that are
difficult to replicate
Consistent instruction
Allows for review
Hong Kong

Team Leader Training


Team Leader Training
Strategy within team training
Refers to the training that the team
manager or facilitator receives
Involves preparing the leader to resolve
conflict or help the team coordinate its
activities

Hong Kong

Day Two: Departmental Vision


Department Meetings
Group icebreakers

Self-directed learning
There is only one way of teaching
self teaching. Think, when youve
left, where are you in creating a fine
memory ?
Hong Kong

Self-Directed Learning
Employee has total responsibility to
learn all objectives
Determines when, where, and at what
rate learning will take place
Biggest drawback is employee must be
motivated to learn material on their own

Hong Kong

Days 3 7: Skills Training


For next five days the hotels
leadership team, trainers, and
managers met each morning at 6am
to review previous days training
activities
All employees attended a session on
the anticipation and handling of
guest requests
New York

Days 3 7: Skills Training


Each department continued to
formulate and refine its own
philosophy and statement of goals
Everyone received life safety
instruction, was treated to wine
tasting, and enjoyed product show
which allowed each employee to
learn more about the materials that
would provide comforts to its guests
New York

Days 3 7: Skills Training


Instant guest pacification was a RitzCarlton basic skill
Day 4 all new employees were instructed
in the standardized procedure for
handling guest difficulties
They were taught to break away from their
standard duties to solve a customers problems

Each problem was documented on a Guest


Incident Action Form
New York

Last 3 Days
Departmental technical training occurred
Learn details involved in performing their jobs
to standards

Everyone was expected to master their


department's key production processes
Every employee practiced their job as if
they were serving real customers (role
play) examples: check-in, servers, etc.

New York

Role Play
For role plays to be effective, trainers
need to engage in several activities
before, during, and after the role play.
Before the Role Play:
It is critical to explain the purpose of the
activity to the trainees
Increases the chance that they will find the
activity meaningful and be motivated to learn

A sample role play helps explain to the


trainee how the role play works
New York

Role Play
During the Role Play:
The trainer needs to monitor the time,
degree of intensity, and focus of the
groups attention
The more meaningful the exercise is to
participants the less trouble the trainer
should have with focus and intensity

After the Role Play:


Debriefing is critical
Helps trainees understand the experience and
discuss their insights with each other
New York

Role Play at Ritz-Carlton


Members of the corporate steering
committee observed the trial runs or
role playing
They looked for flaws and then passed
these observations on to trainers who
then provided additional training
Schulze would even step in and help a
struggling employee. He would show
them exactly how it was supposed to be
done. (Behavior Modeling).
New York

Behavior Modeling
Presents trainees with a model who
demonstrates key behaviors to
replicate and provides trainees with the
opportunity to practice key behaviors
Key Behavior is one of a set of behaviors
that are necessary to complete a task

Is based on the principles of social


learning theory (Ch4) which emphasize
that learning occurs by:
Observation of behaviors demonstrated by
a model and
Vicarious reinforcement

New York

Behavior Modeling
Vicarious Reinforcement occurs
when a trainee sees a model being
reinforced for using certain
behaviors
Research suggests that behavior
modeling is one of the most
effective techniques for teaching
interpersonal skills
New York

First Month of Operations


Plans were to open hotel with 50%
occupancy
Monthly occupancy will increase each
month to 80% in 3 to 4 months
Hired in beginning as they have 80%
occupancy
October 11, 2000 the Ritz-Carlton
Hotel opened for business
New York

Seven Day Countdown


Summary
Day One: Staff Orientation
Day Two: Department Vision Sessions
Days Three Seven: Skills Training

Dubai

Seven Day Countdown


Pros to the Seven Day Countdown

Dubai

Seven Day Countdown


Pros to the Seven Day Countdown
Employee morale
Protection from feeling overwhelmed

Flawless Execution
Focus on quality (not quantity) from the very
beginning

Offsets expected (minor) turnover at


opening

Dubai

Seven Day Countdown


Cons to the Seven Day Countdown

Dubai

Seven Day Countdown


Cons to the Seven Day Countdown
Loss of profit
Opening at 50% occupancy

Employees have over a month between


hire and first day
May lose quality hires that cannot go
without pay

Time sensitive (Adult Learning Theory)

Dubai

Should McBride lengthen the Seven Day


Countdown?

What impact to the HR Strategy would


lengthening the Seven Day Countdown have, if
any?

Should Ritz-Carlton allow Millennium to direct its


management practices?

Ritz-Carlton Now

The Ritz-Carlton Hotel Company, L.L.C.


wins number one ranking in Training
Magazines Training Top 125 2007
Survey.

Dubai

McBride Now
Since January 2006-- Regional Vice
President for Rosewood Hotels and Resorts
Since December 2003--Managing Director
of The Carlyle
Joined The Carlyle from The Grosvenor
House in London where, as General
Manager, he was recruited to reposition
this landmark hotel after an extensive
renovation
Dubai

Collins Now
Brian Collins Named President at
Intrawest, Reporting to Recently
Named CEO Bill Jensen
VANCOUVER, June 3, 2008

Between Millennium Partners and


Intrawest he was the Principal and
Founder of Colgate Development LLC

Dubai

Ritz-Carlton Now
The Ritz-Carlton, Washington, D.C. Wows
Guests with Multi-Million Dollar Renovation
Washington is experiencing a renaissance of sorts right now, with a revived cultural and
dining scene. Its not just the city of monuments anymore, and guests want to
experience this dynamic city in style. said Nicholson. Re-imagingthe Ritz-Carlton,
Washington D.C. to fit this exciting time was a wonderful experience for me.

The $12 million dollar enhancements include:

Anew signature restaurant,


Westend Bistro by Eric Ripert;
An enhanced Lobby Caf & Bar and Club Lounge;
Improvements to all meeting rooms and 300 guestrooms and suites.

The project which began in November 2007 was


completed ahead of schedule in September 2008
Dubai

Bringing it Together
Training methods used in the RitzCarlton case
Lecture
Audiovisual techniques
Hands on Methods
Self-Directed Learning

Role Play
Behavior Modeling
Dubai

Bringing it Together
Training methods not seen in the
case
Business Games
Case Study
Simulation
Hands on Training
On the Job Training

What about group training methods?


Dubai

Corporate Boot Camps


Corporate boot camps designed to
push new hires to their limits, with
two goals:
Preparedness
Bonding

Trilogy
Trilogy founded in 1989 (Austin, TX)
Configuration software
Allows salesperson to transfer a customers
needs into computer specifications,
producing an accurate price quote.
Company clients include large names such
as HP

Rapid growth called for additional talent,


and a way to orient the hires to Trilogy

Youre going to be the future of Trilogy the


company is relying on you and everybodys
waiting on you.
Joe Liemandt, CEO

Trilogy University
Three month program:
Month One:
Assigned to section and track, functional
learning and assignments

Month Two:
Project Month. Develop an idea, and the
business model for it. Build the product and
develop the marketing plan

Month Three:
Graduation projects, assignments within
business units

Training Methods - Groups


Group Building Methods
Designed to improve team or group
effectiveness
Experiential Learning
Action Learning

Trilogy University
Month One
Section is a new hires social group for
duration
Assignments mimic customer
engagements
Experiential Learning

Experiential Learning
Four stages
Gain Conceptual Knowledge and Theory
Functional learning

Take part in a behavioral simulation


Assignments

Analyze the activity


Employees discuss with section and section
leader

Connect the theory and activity with on


the job or real-life situations
Often part of month one assignments

Trilogy University
Month Two
Project month
Small teams develop a product, its business
model, a prototype and a marketing
strategy
Action learning: actual problem solved and action
plan developed

15% of projects survive past project


month

Action Learning
Used to solve important problems,
develop leaders, quickly build high
performance teams, and transform
organizational culture.

Action Learning
Steps in Action Learning
Identify sponsors (CEO)
Identify problem or issue (New product
needed)
Identify group to address problem (TU
employees)
Identify coaches (Section Leaders)
Present problem to the group (Month two)
Group discussion
Data gathering
Group Presentation
Self-reflection and de-briefing

Trilogy University
Month Three:
Graduation projects or continuation of
TU projects
Graduation process
Meeting with TUer, new manager, section
leader
Begin full assimilation into the organization

Other Group Training Methods


Group training methods
Adventure Learning
Team learning
Coordination Training
Cross-training
Team leader training

Adventure Learning
Focuses on the development of
teamwork and leadership skills
through structured activities
Best suited for development of selfawareness, risk taking, problem solving
and conflict management
Examples:
Trust falls
Low ropes course

- Must consider company risk and


effectiveness of training

Team Training
Utilized to train and prepare those
working in a team (NASCAR, military)
Four elements
Tools
Methods
Strategies
Coordination Training practice other skills
Cross-training how to share information
Team leader training how to lead /
facilitate

TU Outcomes
Product Pipeline
The idea to sell cars on the internet was developed at
Trilogy University in 1997; now Trilogy has a global
alliance with Ford

Leader Development
Trilogys section leaders are actually top performers at
Trilogy
The university is grounds to develop these performers
in to top-notch leaders

Strategy
Leaders have a teachable point of view (TPOV),
which is constantly tested

TU Outcomes
Organizational Transformation
Trilogy sees its new hires as the best chance to
change the company
Trilogy University was developed as a way to keep the
company moving forward

Virtuous Training Cycle


New hires are learning from the leaders in the
organization and the leaders are learning from the new
hires

Summary
Ritz-Carlton in Washington D.C.
Training Overview
Ritz-Carlton utilizes several training methods to train
their ladies and gentleman

No Ordinary Boot Camp


New brand of orientation
Group training and action learning a key focus