Two-time Baldrige winner, The Ritz-Carlton
applies a four-step innovation process that
fully engages employees’ creativity to craft
service experiences that delight customers.
A Systematic
Approach for
Making Innovation
a Core Competency
John C. Timmerman
T he Ritz-Carlton must be agile in
responding to evolving customer
expectations and the introduction of
competing brands. Through its sys-
tematic approach to innovation, we
tap into employees’ full potential to
deliver genuine and unscripted service
experiences. This article describes our
innovations process and its research
foundation.
Innovation can be sourced exter-
nally by connecting companies with
independent inventors, market-ready
concepts, or new ventures that have
market-ready concepts (Nambisan
and Sawhney). Alternatively, innova-
tion can be grown internally through
strategic research and development or
more informal processes that encourage
benchmarking and employee ideas. The
four-step innovation process (Figure 1)
was developed from a research-based
approach by analyzing the current body
4 The Journal for Quality & Participation January 2009
of knowledge from credible publications
that included the Harvard Business Review
and the American Society for Quality.
Proven practices were identified from a
benchmarking study of external orga-
nizations that have a well-established
core competency of innovation such
as Disney, Corning Incorporated, and
Cisco, Systems, Inc.
Internal focus groups were conducted
to collect design requirements and ensure
the model could be transferred effectively
to The Ritz-Carlton culture. The four-step
innovation process was designed with
environmental factors at the core of the
model to promote a culture of innova-
tion that transcends any individual step
of the model. The environmental factors
of inspiring vision, providing recogni-
tion, and encouraging risk-taking foster
an atmosphere of employee empower-
ment. Factors in the model related to
stimulating ideas, benchmarking, and
Figure 1: Four-Step Innovation Process Overview and Scope
Rationale
1. There is a strong consensus among business
Inspire leaders, academia, and consultants that people are
Vision
the most important resource of any organization.
Although metrics and estimations vary, research-
Provide Recognition ers and organizational experts agree that most
companies do not yield the full potential of the
2. work force. Most previous management theory
Pro

Foster involved methods for making workers’ “hands”

mo

k
Ris
Environment produce more work. Recent advances in industrial
te

age
Be

psychology have identified that this is an incom-

3. 4.
nch

our

Stimulate Test plete paradigm, and Curt Coffman (author and

ma

Enc

leading expert in employee engagement) empha-

rki

Ideas Ideas
ng

sizes that people are comprised of a “head” and

testing ideas strengthen employee innovation and
benchmarking. Effective implementation of the
process involved integrating it with the Green
Book, The Ritz-Carlton’s approach to winning the
prestigious Malcolm Baldrige National Quality
Award twice (1992 and 1999); training programs;
company-wide communication; and performance
management systems.
“heart” in addition to their “hands.”
The industrial revolution of the 20th century
ushered in an era of management practices that
helped improve productivity by organizing work
in large factories or providing production-based
incentives. These early methods yielded diminish-
ing returns as workers fulfilled their economic
needs, and the United States began shifting from
a manufacturing to a service- and technology-
based economy. The manufacturing economy
relied upon faster hands to improve worker yield.

Figure 2: Employee Engagement Groups—U.S. Working Population*

42% 44% 14%

Engaged Not Engaged Actively Disengaged

These employees are loyal and
psychologically committed to the
organization. They are more
productive and more likely to stay
with their company for at least a year.
These employees may be productive,
but they are not psychologically
connected to their company. They
are more likely to miss workdays
and more likely to leave.
These employees are physically
present but psychologically absent.
They are unhappy with their work
situation and insist on sharing this
unhappiness with their colleagues.

Source: The Gallup Organization (*Percentages reflect 2007 Gallup Q12 database figures)

www.asq.org/pub/jqp 5
 The new service and technology economy requires
better utilization of workers’ hearts and heads.
Innovation was previously restricted to top
management in the manufacturing era because
only a few people were responsible for product
design and manufacturing techniques. In the new
service economy, the customers walk into your
factory (the hotel) and formulate their opinions
from their experience and not exclusively from the
utility of the physical product.
Current State
Fostering an environment of innovation helps
The Ritz-Carlton unleash the talent of the work
force to deliver memorable guest experiences.
Additionally, innovation accelerates service break-
throughs by leveraging employee creativity and
response to rapidly changing markets and compet-
itive offerings. The Gallup Organization estimates
that only 42 percent of the U.S. work force is fully
engaged (see Figure 2).
Although The Ritz-Carlton employee engage-
ment levels exceeded the national average, there still
was a significant opportunity to increase employee
engagement and get more employees involved in
“brick building” as shown in Figure 2. Innovation
methods and tools are catalysts that encourage
employee ideas and participation in running the
business, unlocking employee innovation, and
empowering people.
Research and Analysis
Research Plan
The research plan to develop the four-step inno-
vation process included both new and secondary
research to provide a robust framework. New
research involved soliciting recommendations and
best practices from external organizations such as
the U.S. Quality Council and from internal prac-
titioners in the field including the area directors
of quality. Secondary research and information
included books, published papers, and Internet
searches. The plan balanced quantitative data
from published sources with qualitative informa-
tion from interviews, identifying the most effective
approaches for spreading innovation across an
organization.
Definition and Scope of Innovation
The research and design of the innovation
model was anchored to this definition: “Innovation
6 The Journal for Quality & Participation January 2009
means making meaningful change to improve
an organization’s products, services, programs,
processes, operations, and business model and
to create new value for the organization’s stake-
holders.” (2008 Criteria for Performance Excellence,
National Institute of Standards and Technology)
Body of Knowledge
The review of secondary research included
four books, published between 2002 and 2007,
and nine publications issued in 2006 or 2007 to
review the most current theory and practices. A
list of these support materials is available online
at www.asq.org/pub/jqp. Most of the body of
knowledge gravitated around methods for stimu-
lating creativity; less emphasis was placed on the
implementation processes because the former area
involves evaluating ideas that can impede creative
thinking.
Methods for Stimulating and Organizing Ideas
Research in neuroscience illustrates the impor-
tance of cognitive processes in the generation of
creative thoughts. The brain is the main engine
that underpins creativity and can be stimulated
through brain exercises such as crossword puzzles
or improvisation (Gilkey and Kilts). Once the
brain engine is running and the creative juices
start flowing, it’s important to get people “think-
ing outside the box.” Andy Stefanovich, founder
of the innovation firm Play, takes clients outside
their normal work environments and exposes
them to new stimulus such as an art museum
to help them shift mental gears. Directional
inquiries, such as “imagine perfection” or “look
beyond the boundaries of our business,” stimulate
breakthrough thinking (Coyne et al.). Discoveries
are possible through observational methods such
as shadowing, visual diaries, and customer labs
(Goncalves). Flipcharts and notepaper are ade-
quate for recording thoughts and observations,
but the surplus must be organized into a manage-
able framework. Mind maps or affinity diagrams
are simple methods of organizing related ideas
into categories, providing a visual framework
to communicate and stimulate new thoughts
(Levesque and Walker). Databases are useful to
organize ideas, but there is a general consensus
among practitioners that technology can become a
barrier if important considerations such as ease of
access, input, and retrieval are not addressed. Here
Table 1: I mportant Factors for Promoting a Culture
of Innovation
Leadership • Senior leaders use a +/Δ at the
conclusion of their planning
processes, e.g., identifying process
strengths and opportunities for
improvement.
• Senior leaders create an ongoing
dialog to promote innovation
and benchmarking, e.g., asking
employees for their ideas and
challenging them to look outside
the organization.
Methods • Provide an informal process to
generate ideas such as an Internet
Wiki that feeds into a more
formal engineering process.
• Create a common language,
e.g., improvement is reducing
defects, whereas innovation
involves adding value to the
product or process.
Recognition • Place more emphasis on
recognition than rewards with
interpersonal recognition
having the most impact, e.g.,
thank you from senior leaders.
• Make rewards relevant, e.g., pay
utilities for energy-saving idea.
is a summary of the key findings on what the brain
needs to stimulate and organize ideas.
• Exercise (e.g., thinking games and
improvisation).
• Displacement (e.g., new environment).
• Stimulation (e.g., questions and observations).
• Organization (e.g., affinity diagrams and mind
maps).
External Benchmarking
An e-mail based survey was administered to
members of the U.S. Quality Council. This group
is comprised of quality professionals at the vice
president and director level for a diverse group
of manufacturing and service organizations such
as Hewlett-Packard, Johnson & Johnson, Xerox
Corporation, 3M, Corning Incorporated, and
Cisco Systems, Inc. The survey and participant list
are included in the online portion of this article.
A follow-up two-day site visit was conducted at
Cisco Systems Inc. and Corning Incorporated
to perform a more in-depth investigation of
their innovation culture, methods, and tools.
Additional innovation best practices were col-
lected from participation in the 2007 American
Society for Quality Innovation Conference and
Executive Forum.
A thematic analysis identified important factors
from the benchmarking data, as shown in Table 1,
which represent the most important factors that
were considered in the design of our innovation
model. These findings were shared with the U.S.
Quality Council to validate the interpretation of
the data and during the 2007 regional general
manager meeting to make certain they resonated
with The Ritz-Carlton culture.
Internal Focus Groups
This area was explored further through internal
focus groups conducted in 2007 with area directors
of quality. This group was selected because of its
members’ practical field experience in managing
and facilitating innovation processes. The focus
groups were asked to identify key methods of an
innovation model. The verbatim comments were
categorized into four critical steps and sequenced
in a systematic order to facilitate an efficient appli-
cation of the model, shown in Table 2. Then, the
verbatim comments were distilled into key meth-
ods to provide practical points for addressing the
critical steps.
Summary of Findings
The themes found in the body of knowledge,
external benchmarking surveys, and internal focus
group were transcribed into a key theme matrix to
identify specifications for the innovation model
(Table 3). A horizontal scan of the matrix by
source and requirement shows that the more
dominant requirements include environment dis-
placement, mental stimulation, leadership, team
formation, and collection of inputs. The require-
ments then were used to develop specifications
for the innovation model with particular empha-
sis placed on the more dominant requirements. A
vertical scan of the matrix indicates that the more
dominant specifications included environment
and stimulation.
www.asq.org/pub/jqp 7
 Table 2: Key Methods for an Innovation Model

Critical Steps Key Methods

1. Provide context • Communicate the business need for innovation.
• Align innovation efforts with the business strategy and key outcomes.
• Provide success criteria for ideas.
2. Conduct customer • Observe how the customer uses the product and service.
research • Learn why customers go somewhere else.
• Identify the value proposition for customers.

3. Create a stimulating Form a team:

environment • Select diverse functions, talents, and skills.
• Conduct brainstorming in a stimulating and unrestrictive environment.
• Reward risk taking and recognize the sharing of ideas.
Ask provoking questions:
• How can we take something generic and make it personal?
• What if we start with a clean slate?
• How can we integrate new technology into existing processes?
Collect inputs:
• Conduct benchmarking outside our industry.
• Identify emerging trends.
• Collect a thousand ideas from a hundred different sources.
4. Select and test ideas • Provide criteria for selecting ideas.
• Test, refine, and pilot ideas.
• Implement ideas through the nine-step quality improvement process.

Innovation Model and encouraging risk taking all foster an atmosphere

Four-Step Innovation Process
The four-step innovation process was constructed
from the design specifications found in the summary
of findings. The model was tested to ensure it satisfied
the business and research objectives that included:
• Systematic approach for achieving the key success
factors of driving employee empowerment and
innovation and embracing product and service
benchmarking.
• Research-based, incorporating proven best
practices.
• Transferable to The Ritz-Carlton’s culture.
• Effective in creating a culture of innovation.
The four-step innovation process was designed
with environmental factors at the core of the model
to promote a culture of innovation that transcends
any individual step of the model. The environmental
factors of inspiring vision, providing recognition,
of employee empowerment. Factors in the model
related to stimulating ideas, benchmarking, and
testing ideas strengthen employee innovation and
benchmarking.
Steps 1 and 2: Establish Vision and
Environment (The Art of Leadership)
The first two steps of the process consist of
inspiring a vision and fostering an environment
for innovation—these are leadership responsi-
bilities. Inspiring the vision is important to ensure
that creativity is anchored to an inspirational goal
or burning-platform issue. The Gallup research
indicates that creating belief in a shared purpose is
a critical factor in employee motivation. Without
such an inspiring vision, ideas might be generated
without context and fall on unfertile ground.
Fostering an environment of innovation is at
the core of the process because positive recogni-
tion for ideas sets a tone in the work environment

8 The Journal for Quality & Participation January 2009

Table 3: Key Theme Matrix

Specifications for the Innovation Process

Benchmarking
Environment

Stimulation
Recognition
Source Requirement

Vision

Risk

Test
• Brain Exercise X X

• Environmental Displacement X X X
Body of Knowledge
• Mental Stimulation X X X

• Idea Organization X X

• Leadership X X X
External
Benchmarking • Methods X X
Survey
• Recognition X

• Context X

• Customer Research X X

• Stimulating Environment
Internal Focus
• Form a Team X X X
Group
• Ask Provoking Questions X X

• Collect Inputs X X X

• Select and Test Ideas X X

X Represents a relationship between requirement and specification. X Denotes a dominant theme.

that employee ideas are valued. Although not every
employee expects that his/her idea will be imple-
mented, employees do expect that their ideas will
be recognized.
Promoting benchmarking within and outside
The Ritz-Carlton is another leadership responsibil-
ity that helps stimulate new ideas. Benchmarking
is most powerful when employees can see the
opportunity for innovation through their own eyes
and then translate it to the context of their work
processes. Innovation requires that leadership
encourage employees to take risks by experiment-
ing with new ideas. This can be accomplished
concurrently with delivering defect-free service by
giving employees a safe zone to test ideas.
Steps 3 and 4: Stimulate and Test Ideas
(The Science of Ideation)
The first two steps of the process involve the art
of leadership because they require creating a set of
conditions to promote employee engagement in the
model. The next two steps, stimulating and testing
ideas, are part of the management function because
they involve scientific methods and tools. These
steps start the planting, growing, and harvesting of
ideas from the fertile ground that was created in
the first two steps. Various approaches can stimu-
late ideas, such as selecting a diverse team, asking
thought-provoking questions, or studying actual
customer behavior. Once the ideas are ready for
harvest, organize them into related categories with

www.asq.org/pub/jqp 9
 Figure 3: Nine-Step Quality Improvement Process is used for implementation. It is best to begin by
ensuring the output, customers, requirements, and
1. Identify Output promises are defined clearly—the design stage of
the process—before advancing to steps five through
2. Identify Customers seven—the control stage of the process.
Design

3. Identify Customer Requirements Summary

4. Translate Requirements Into Promises
5. Identify Steps in the Work Process
Control
Since the introduction of its four-step inno-
vation process, The Ritz-Carlton has leveraged
employee ideas effectively and efficiently, improv-
ing its ability to create exceptional experiences
for its customers. Inspired by our values and

6. Select Measurements dedicated to engaging employees completely, this

process creates learning cycles that not only help
7. Determine Process Adequecy us rapidly respond to customers’ evolving needs
but also to improve our organizational knowledge
Six-Step
Can It and capabilities on a long-term basis.
Problem
Produce
Solving
Output Acknowledgments: The author thanks Ana Laura
Process
Solis, RC Naples, and Ana Brant, RC Boston
Transfer Produce Common, for leading the first two innovation
Know-How Output pilots, which are reviewed in the online content.

8. Evaluate Results
More Online
Six-Step Much more information related to this article is available
Is
Improve

Problem at www.asq.org/pub/jqp. In addition to the bibliography

There a of resources The Ritz-Carlton used to generate its four-step
Solving
Problem innovation process, a presentation of the process’ application,
Process
including photos, apears.
9. Recycle

an affinity diagram. The affinity diagram serves as

a reference document for the test and experimenta-
tion of new ideas. The creation of learning cycles is
the overall goal during the testing of new ideas.
Idea Implementation
Ideas can percolate and slowly morph into pro-
cesses or they can take a quicker and more direct
route toward implementation. The direct route
requires a vehicle to help ideas in crossing the
chasm from testing to a final product or service.
An idea evaluation matrix is useful in assigning
weights of importance and allowing team mem-
bers to allocate points for each idea. The matrix is
a decision-support tool that highlights the impact
and trade-off between ideas, but is not intended to
automate the selection process.
After selecting an idea, the nine-step quality
improvement process (QIP), shown in Figure 3,
John C. Timmerman
John Timmerman is corporate vice president of operations
for The Ritz-Carlton Hotel Company. He is responsible
for food and beverage, culinary, meetings and special
events, rooms, purchasing, and customer relationship
management. Timmerman is a certified Hotel Administrator
by The American Hotel and Lodging Association. In 2007,
he received ASQ’s Ishikawa Medal for his contributions
to the human aspects of quality. He is a Senior member
of the American Society for Quality and is a Certified
Quality Auditor, Quality Engineer, and Manager of Quality/
Organizational Excellence. Timmerman serves as a senior
examiner for the Malcolm Baldrige National Quality Award
(2005-08) and co-chair of the U.S. Quality Council. He
can be contacted at john.timmerman@ritzcarlton.com.

10 The Journal for Quality & Participation January 2009

 online-only content

Information That Provided a Foundation for Developing

The Ritz-Carlton’s Four-Step Innovation Process
John C. Timmerman

Bibliography External Benchmarking Survey

Internal Publications Benchmarking Survey Participants:
Daniela Garcia, “CUE: Creative Use of Empower- • ASQ Innovation Conference
ment,” The Ritz-Carlton Hotel Company, 2006. • American Society for Quality Executive Forum
Hermann Elger, “The Innovatron,” The Ritz-Carlton (included Disney)
Hotel Company, 2007. • U.S. Quality Council, including: 3M, Abbott
Laboratories, Alcoa, Allegheny Energy, Inc.,
External Publications Corning Incorporated, Cisco, Systems, Inc., FedEx,
Baldrige National Quality Program, “2008 Criteria Hewlett-Packard, IBM, Johnson & Johnson,
for Performance Excellence,” NIST (National Milliken & Company, and Xerox Corporation
Institute of Standards and Technology), 2007.
Kevin P. Coyne, Patricia Gorman Clifford, and
Renée Dye, “Breakthrough Thinking From Inside
the Box,” Harvard Business Review, Dec. 2007,
pp. 71-78.
Roderick Gilkey and Clint Kilts, “Cognitive Fitness,”
Harvard Business Review, Nov. 2007, pp. 53-66.
Alexis P. Goncalves, ‘Innovation: Five Effectiveness
Capabilities,” Innovation Specialist, Sept. 2007.
Justin Levesque and H. Fred Walker, “The Innovation
Process and Quality Tools,” Quality Progress, July
2007, pp. 18-22.
Satish Nambisan and Mohanbir Sawhney, “A
Buyer’s Guide to the Innovation Bazaar,” Harvard
Business Review, June 2007, pp. 109-118.
Morten T. Hansen and Julian Birkinshaw, “The
Innovation Value Chain,” Harvard Business
Review, June 2007, pp. 121-130.

Books
Malcolm Gladwell, Blink: The Power of Thinking Without
Thinking, Little Brown & Company, 2005. Internal Focus Group
Fourteen managers provided input that led to
W. Chan Kim, Blue Ocean Strategy, Harvard Business
development of the following critical process steps:
School Press, 2005.
• Create a stimulating environment (32 responses).
Clayton M. Christensen, Innovator’s Dilemma,
• Conduct customer research (20 responses).
HarperCollins Publishers, 2003.
• Provide context (12 responses).
Malcolm Gladwell, The Tipping Point: How Little
Things Can Make a Big Difference, Little Brown & • Select and test ideas (9 responses).
Company, 2002. There also were six other comments.

www.asq.org/pub/jqp 1
 online-only content

Putting the Four-Step Innovation Process to Work

John C. Timmerman

The Ritz-Carlton’s four-step innovation process
was developed from a research-based approach
that incorporated theories and suggested practices
from thought leaders in the field, experiences
of other organizations, and input from internal
managers. It is designed to promote an overall
culture of innovation and foster an atmosphere
of employee empowerment by inspiring vision,
promoting benchmarking, providing recognition,
and encouraging risk taking.
Figure 1 provides an example of inspiring a
vision and fostering an innovative environment,
the first step steps of the innovation process for
The Ritz-Carlton’s goal to increase hotel food and
beverage revenue by 25 percent.
Often innovation conjures a mental image of
someone getting a dazzling idea in the shower or
a group of executives playing with Tinkertoys® to
inspire brilliance. Although some people occasion-
ally do get an idea in the shower and regressing to
one’s childhood can feel good, it isn’t a systematic
approach for establishing an innovation process
that’s anchored to real business goals. It’s impor-
tant; therefore, that the innovation process helps
the organization solve a chronic problem or create
a product/service that enhances its competitive
advantage. This involves the first step of inspir-
ing a vision for the innovation process. Define
the vision so that it can be measured and provide
direction, but it should not be so prescriptive that
it stifles creativity.
For example, The Ritz-Carlton Naples leader-
ship team asked the innovation team to create
a price premium for its club-level guest rooms.
This stimulated many ideas for accomplishing the
goal; however, management didn’t tell the inno-
vation team to add more product features to the
guestrooms because that would have been too pre-
scriptive, and the team might not have invented a
breakthrough idea. Following the four-step innova-
tion process, the team created a unique and private
beach experience that is sold with the club-level

Figure 1: Four-Step Innovation Process—Steps 1 and 2, Establish Vision and Environment

Example: 1. Example:
Increase Food and Beverage Inspire First Class Card for External
Revenue by 25% Vision Benchmarking

Provide Recognition
Example: Example:
Visit High Performance 2. Emphasize Learning Over
Pro

Restaurants Foster Immediate Success

mo

k
Ris

Environment
te

age
Be

3. 4.
nch

our

Stimulate Test
ma

Enc
rki

Ideas Ideas
ng

Example:
Conduct Innovation
Session at Shopping Mall

2 The Journal for Quality & Participation January 2009

Figure 2: Four-Step Innovation Process—Steps 3 and 4, Stimulate and Test Ideas

1.
Inspire
Vision

Provide Recognition

2.

Pro
Foster

mo

k
Ris
Environment

te

age
Be
3. 4.

nch

our
Stimulate Test

ma

Enc
rki
Ideas Ideas

ng
Select Diverse
Team Members
Example:
Hourly and Salary: Trial feeding of
• Sales Ask provoking
new menu with
• Culinary questions
employees.
• Finance What if we start with
• Concierges Example: Experiment with
a clean slate?
Affinity Diagram new menu during
External What does perfection low-volume meal
• Luxury Retailer look like? periods.
Note: Ambiance Food Service
Observe customer
Teams should ideally
behavior
be eight or fewer
in size When do customers Upbeat Steak & Relaxed
become fully Music Fish and Fun
engaged?

Modern Large Anticipate

Decor Portions Needs

Less Than Less Than

Seating
20-Minute 90-Minute
Comfort
Cycle Time Cycle Time

guestrooms to enhance revenue. The team discov-
ered that the guestroom features were second to
the beach experience for the leisure customers. If
the direction had been too tactical, they might have
implemented larger flat-panel televisions in the
guestrooms, which would have provided customers
marginal value, whereas having a private concierge
service on the beach is almost priceless.
Figure 2 shows this example’s corresponding
information for the third and fourth steps of the
innovation process, stimulating and testing ideas.
A diverse team, representing both internal and
external perspectives, used the three questions
below to stimulate ideas:
• What if we start with a clean slate?
• What does perfection look like?
• When do customers become fully engaged?
Brainstorming and observing customer behav-
ior generated answers to these questions, which

www.asq.org/pub/jqp 3
 Table 1: Idea Evaluation Matrix

Criteria Weight Idea 1 Idea 2 Idea 3 Idea 4

Mystique 10% 40 30 10 10
Customer Engagement 25% 45 20 30 30
Employee Engagement 15% 5 10 20 10
Product and Service Excellence 15% 5 20 10 30
Financial Performance 35% 5 20 30 20
Total Points 19 20 24 22

subsequently were categorized into an affinity dia-
gram. Innovative ideas were tested and evaluated
with the affinity diagram information used as a
reference for evaluating the merit of each idea.
Studying customer behavior and taking an inven-
tory of your current assets are powerful methods for
identifying pain points for customers and leverag-
ing your capital. The Ritz-Carlton Boston Common
observed that a rainy day can put a damper on
sightseeing, thus, leaving guests disappointed and
roaming the public spaces to pass time. The inno-
vation team combined this observation with the
identification that the hotel artwork is a valuable
asset that could be leveraged by creating podcast
video tours for guests. Often times, customers can-
not articulate an innovative idea. I have interviewed
hundreds of customers, asking, “Is there any other
product or service we could provide?” and receiv-
ing a null response in most instances. Studying
customer behavior, however, helps stimulate ideas
for the innovation process. In the case of Boston
Common, the customers didn’t ask for a video-pod
art tour but their boredom on rainy days helped
stimulate the innovative idea. Too often we try to
fix defects without understanding organizational
strengths and maximizing our capital.
The idea evaluation matrix (Table 1) documents
the criteria used to assess the proposed ideas.
This decision-support tool helps team members
determine the impacts and trade-offs among the
potential innovations, helping them to select the
most viable option to implement.
Once an inventive solution is chosen, the four-
step innovation process links to The Ritz-Carlton’s
nine-step quality improvement process where a
detailed design is established and a control system
is developed. This approach ensures integration of
the innovation into the company’s existing system,
ensuring smooth connectivity with other processes
and staging it for continuous improvement over
the long term.
The Ritz-Carlton’s video art tour at its Boston
Common Hotel and club-level service at its Naples
hotel were created using the four-step innovation
model. Click on this link insert link here to see
photos of these examples.

4 The Journal for Quality & Participation January 2009

INNOVATION CASE STUDY

The Ritz-Carlton, Boston Common

The Fine Art of Living

 STRENGTHENING SCENOGRAPHY

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Boston Common
 SCENOGRAPHY: CURRENT STAGE
THEME: THE FINE ART OF LIVING

BACKGROUND: FINE ART COLLECTION

▪ THE COLLECTION INCLUDES LOCAL CONTEMPORARY ARTISTS
WHO ARE STILL “CREATING” THEIR NAMES AND STYLES
▪ A BROCHURE, DESCRIBING THE FINE ART AROUND THE HOTEL
HAS BEEN CREATED IN 2001 - NEEDS REFRESHMENT
▪ EMPTY “PRIME LOCATION” SPACE FOR THE ARTWORK IN THE
LOBBY LOUNGE

BACKGROUND: OPPORTUNITIES
▪ SCENES” ARE IN PLACE
▪ “MOMENT IN TIME” IS IN PLACE
▪ LADIES AND GENTLEMEN ARE FAMILIAR WITH THE THEME OF THE
HOTEL; HOWEVER, THEY FIND IT DIFFICULT TO DESCRIBE
▪ ENLIVEN FIVE SENSES NOT ENLIVENED
▪ SIXTH SENSE MISSING
The Ritz-Carlton, Boston Common
 SCENOGRAPHY: DESIRED STAGE
THEME: THE FINE ART OF LIVING

GOAL:
“STIMULATE UNIQUE, MODERN, AND STATE-OF-THE-ART EXPERIENCE FOR
OUR GUESTS WHILE ENLIVENING FIVE SENSES AND TRIGGERING THE
SIXTH SENSE THROUGH EXPERIENCE AND KNOWLEDGE”

The Ritz-Carlton, Boston Common

 INSPIRE VISION

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Boston Common
 INSPIRE VISION
COMMUNICATE BUSINESS NEEDS FOR INNOVATION

▪ CASUAL CONVERSATION IN THE LOBBY LOUNGE ABOUT SCENOGRAPHY (HOTEL

THEME)
(BETWEEN DIRECTOR OF OPERATIONS AND QUALITY ANALYST)

▪ FORMED A SMALL PILOT TEAM THAT WILL FOCUS ON SCENOGRAPHY AT LEISURE

(GUEST SERVICES MANAGER, GUEST RELATIONS MANAGER, QUALITY ANALYST, AND DIRECTOR OF
OPERATIONS)

ENVIRONMENTAL DISPLACEMENT

▪ STIMULATE NEW IDEAS AND BREAKTHROUGH THINKING

▪ INVITATION TO A SPECIAL EVENT AT THE LOCAL ART GALLERY (PILOT TEAM ATTENDED)

▪ ALL FIVE SENSES INCLUDED; SIXTH SENSE STIMULATED THROUGH LEARNING &
EXPERIENCE

The Ritz-Carlton, Boston Common

 INSPIRE VISION
LET IDEAS FLOW
▪ THE DAY AFTER THE SPECIAL EVENT AT MODERN ART GALLERY, A RECAP MEETING
WAS CONDUCTED
(PILOT TEAM ATTENDED)

MEETING AGENDA
▪ REFLECTION ON THE EVENT
▪ THOUGHTS/IDEAS/SUGGESTIONS
▪ WHAT DID WE LEARN?
▪ HOW DID THE EVENT MAKE US FEEL?

IDEAS GENERATED DURING THE MEETING

▪ PARTNER WITH ART GALLERY
(“RENT” EMPTY LOBBY LOUNGE LOCATION AND HAVE GALLERY REPRESENTATIVE DO A LOBBY
AMBASSADOR SHIFT WHILE SHOWCASING THEIR ART)
▪ CREATE PODCAST/ITOUR FOR THE CURRENT ART COLLECTION IN THE HOTEL
▪ CREATE SPECIAL EVENTS IN PARTNERSHIP WITH MODERN ART GALLERY
(INVITE PROMINENT AND WELL KNOWN ARTISTS TO HOST AN EVENT AT THE CLUB LOUNGE, BOOK
SIGNING, ETC.)
▪ SELECT SIGNATURE PIECE OF ART THAT WILL BE SHOWCASED THROUGHOUT THE
HOTEL
▪ SELECT SIGNATURE BACKGROUND LOBBY MUSIC
▪ SELECT SIGNATURE SENT
▪ COMPLEMENT THE THEME WITH THE F&B EDITIONS – CHOCOLATE EXTRAVAGANZA
The Ritz-Carlton, Boston Common
 PROVIDE RECOGNITION

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Boston Common
 PROVIDE RECOGNITION
NIGHT OUT
▪ DIRECTOR OF OPERATIONS TOOK THE TEAM FOR A DINNER
AFTER THE SUCCESSFUL RECAP MEETING

VERBAL RECOGNITION
▪ TEAM MEMBERS PROVIDED RECOGNITION TO EACH OTHER
COMPLIMENTING IDEAS AND HUNGER FOR INNOVATION

SPECIAL PROJECT
▪ SATISFACTION FOR BEING PART OF A SPECIAL PROJECT,
NOT INCLUDED INTO “JOB DESCRIPTION”
▪ ABILITY TO CREATE, INNOVATE, AND SET STANDARDS FOR
HOSPITALITY INDUSTRY

The Ritz-Carlton, Boston Common

 FOSTER ENVIRONMENT

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Boston Common
 FOSTER ENVIRONMENT
OBSERVE CUSTOMER INTERACTION
▪ THE PILOT TEAM MADE A FEW MORE VISITS TO THE GALLERY TO OBSERVE
CUSTOMER INTERACTION

KEY FINDINGS – WHY CUSTOMERS LEAVE:

ON MANY OCCASIONS, CUSTOMERS FELT “UNCOMFORTABLE” ASKING QUESTIONS THINKING THEY
WILL SOUND UNINFORMED OR NOT KNOWLEDGEABLE IF NOW KNOWING, I.E., WHAT TECHNIQUE IS
USED ON SPECIFIC PIECE OF ART

KEY FINDINGS – WHY CUSTOMERS STAY:

▪ HIGH ENGAGEMENT
EVERY CUSTOMER IS APPROACHED ON A PERSONALIZED LEVEL, COMMON INTEREST/THEME
BETWEEN STAFF AND CUSTOMERS
▪ LEARNING/EDUCATIONAL EXPERIENCE – 6TH SENSE
CUSTOMERS ARE PROVIDED WITH FACTS AND FIGURES ABOUT ART AND ARTISTS, WHICH CREATES
EDUCATIONAL EXPERIENCE
▪ APPROACHABLE AND FRIENDLY STAFF

FORM A TEAM – IN-HOUSE TEAM

THE PILOT TEAM FORMED THE SCENOGRAPHY TEAM
(ADDITIONAL TEAM MEMBERS – F&B, FRONT OFFICE, EXECUTIVE OFFICE, COMMUNICATION & MSE)

The Ritz-Carlton, Boston Common

 PROMOTE BENCHMARKING

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Boston Common
 PROMOTE BENCHMARKING
BENCHMARKING SUMMARY

▪ EDUCATIONAL EXPERIENCE
ALL THREE BENCHMARKING PRACTICES PROVIDE EDUCATION EXPERIENCE TO THEIR
CLIENTS/GUEST

▪ INTERACTIVE ACTIVITIES
TWO OUT OF THREE BENCHMARK COMPANIES USE PLANNED ACTIVITIES THAT INCLUDE
GUESTS/CLIENTS AND STAFF MEMBERS

▪ INCORPORATION OF FOOD AND BEVERAGE ACTIVITIES

ONE OUT OF THREE BENCHMARKS USE FOOD AND BEVERAGE OUTLETS TO ENHANCE EXPERIENCE
AND TO ADD VALUE/REVENUE

▪ MOMENT IN TIME EXPERIENCE

ALL THREE BENCHMARKS ARE INVITING ARTISTS TO CONDUCT INTERVIEWS, REFLECTIONS,
OBSERVATIONS, AND MOST IMPORTANT INTERACTION AND EDUCATION OF CUSTOMERS

▪ USE OF MODERN/CONTEMPORARY DEVICES TO PROMOTE ART

TWO OUT OF THREE BENCHMARK COMPANIES USE MOBILE PHONES, VIDEOS, AND OTHER DEVICES
TO PROMOTE FINE ART AND MAKE IT MORE APPROACHABLE TO CLIENTS

The Ritz-Carlton, Boston Common

 STIMULATE IDEAS

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Boston Common
 STIMULATE IDEAS

IDEAS STIMULATED
 SELECT A SIGNATURE ARTWORK
 SIGNATURE ARTWORK WILL BE SHOWCASED THROUGHOUT THE HOTEL (MEETING
ROOMS DOOR CARDS, BUFFET DISPLAYS, GUEST AMENITIES, POST CARDS, ROOM
KEYS, TURNDOWN CARDS)
▪ SELECT A SIGNATURE SCENT
▪ PURCHASE COFFEE TABLE BOOKS FOR THE LOBBY LOUNGE “THE GALLERY”
▪ SELECT A SIGNATURE AMENITY
▪ SCENTED CANDLES FOR FLOWER DECORATIONS
▪ PURCHASE ART INSPIRED BUFFET DISPLAYS/FRAMES
▪ LOBBY LOUNGE “THE GALLERY MENUS”
▪ MENUS - COVER PAGE OF THE MENU FEATURES SIGNATURE ARTWORK
▪ CREATE THE FINE ART I-TOUR
▪ THE FINE ART EVENTS

The Ritz-Carlton, Boston Common

 STIMULATE IDEAS
SIX SENSE DIAGRAM

The Ritz-Carlton, Boston Common

 TEST IDEAS

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Boston Common
 TAKE RISK & TEST IDEAS

THE FINE ART EVENT

▪ PROCESS

▪ INVITATIONS EXTENDED TO ALL IN HOUSE GUESTS AND RESIDENCES

▪ LOCAL MODERN GALLERY INVITED THEIR TOP CLIENTS TO THE EVENT TO
EXPOSE THE RITZ-CARLTON, BOSTON COMMON

▪ SUMMARY

▪ GREAT WAY TO ENGAGE WITH GUESTS

▪ MANY GUESTS WHO ATTENDED WERE FANS OF ARTIST'S WORK AND WERE
DELIGHTED TO PURCHASE HIS BOOKS WITH A SPECIAL PERSONALIZED
DEDICATION
▪ CLUB RESIDENCE HEARD ABOUT THE EVENT AND EXPRESSED WISH TO
PARTNER IN FUTURE EVENTS

▪ LESSONS LEARNED

▪ PERFORM A SMALL SCENARIO PLANNING BEFORE DECIDING ON THE NEXT

EVENT
▪ EDUCATE CONCIERGE ABOUT THE ARTIST AND THE EVENT SO THEY FEEL
MORE COMFORTABLE “SELLING”

The Ritz-Carlton, Boston Common

INNOVATION CASE STUDY

The Ritz-Carlton, Naples

Club Beach
 INNOVATION MODEL

1.
Inspire
Vision

Provide Recognition

Pro

2.
mo

k
te

Foster

Ris
Environment
Ben

ge
chm

ura
3.

co
4.
ark

En
Stimulate
ing

Test
Ideas
Ideas

A FOUR-STEP INNOVATION PROCESS

The Ritz-Carlton, Naples
 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP
b. Business
1. Inspire the Vision lunch–to define
action plans

c. Lots of one-on-one meetings with all key stakeholders

a. Operations Strategic Plan GT Meeting

“Provide our Club Guests with a unique and value-added experience”

The Ritz-Carlton, Naples

 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

Provide Recognition

a. Assigned “star” Leaders to take

ownership.
b. Empower them to deliver ‘the
best we can be’.
c. Provided recognition for ‘leading
the way’ for our hotel and the
Company.

The Ritz-Carlton, Naples

 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

2. Foster the Environment

Leaders Meeting

Paper Airplane
A Lesson for Flying
Outside the Box

By: Michael McMillan

The Ritz-Carlton, Naples

 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

Benchmarking Ideas came from:

Promote Benchmarking • South Beach FL Concepts
• All inclusive brands
• Caribbean resorts

Unique Beach experiences from social

Beach events from ours and other RC’s events
The Ritz-Carlton, Naples
 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

3. Stimulate Ideas
Everyone contributed with great ideas. Input meetings conducted with:

Conference Services
Destination Services
Recreation
Banquets
Poolside Café
Conference Set-Up
Gumbo Limbo
Club Manager
Leisure Reservations
Club Attendants
Front of the House
Chefs

The Ritz-Carlton, Naples

 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

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3.

co
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Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

Encourage Risk

“Pilot test (learning how to do Club Beach best) so that we can support a
business case for the long term future, was the priority”
Naples Beach Guidance Team

The Ritz-Carlton, Naples

 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

4. Test Ideas
Beach Club test over 2008 President’s Day Weekend

Employees throughout
the resort knew ‘what to
ask for’ to obtain
feedback

BEOS were created

“Value” and “Loyalty” driven

comment card provided during test

The Ritz-Carlton, Naples

 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

4. Test Ideas
Beach Club test over 2008 President’s Day Weekend

• Provide an alternative breakfast and lunch venue for Club guests only (i.e.
two meal presentations of highest demand and conflict when families with
children interact with guests who preferred a more quite and relaxed
ambience).
• Provide and up-scale, unique, convenient and hassle-free Beach service and
related amenities.
• Be able to collect and understand enough facts to build a future business
case to sell Beach Club either as a ‘premium package’ that would be offered
to all guests. Or, as an ‘added value’ to Club guests only.
• Develop new ways to fully engaged our customers.

The Ritz-Carlton, Naples

 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

4. Test Results
Club Beach Arrival

Upon Arrival:
• Welcome station and
check-in podium.
Amenities:
• Welcome mimosas
• I-pods
• DVDs
• Slippers
• Newspapers
The Ritz-Carlton, Naples
 1.
Inspire
Vision

Club Beach
Provide Recognition

Pro
2.

mo

k
te
Foster

Ris
Environment

Ben

ge
chm

ura
3.

co
4.

ark

En
Stimulate

Innovation Process

ing
Test
Ideas
Ideas

4-Step IP

4. Test Results Improve:

Guest Comments & Survey Results • Additional seating
• Need to find a way to distinguish “Club”
Liked: members rather than asking every guest
• Beach House is lovely for Breakfast • Provide a burger pit and tap beer
and Lunch • Big screen TV during lunch
• Great addition • Offer “Beach Experience” all the time to
• Made a big difference in our stay – Club guests
absolutely fantastic • Need to make more private
• Staff was very helpful and • Full bar service
accommodating 95% 94%
• Happy to see children’s food
options/snacks
• Fun and convenient
• Anticipated all needs
• Hallmark of The Ritz-Carlton 79%
• Loved the cappuccino machine
• Kids loved the experience
• Fun, user friendly

Enhanced my overall impression Would only buy Would recommend

The Ritz-Carlton, Naples