The new gold standard 5 leadership principles for creating a legendary customer experience courtesy

www.ebook3000.com Praise for The New Gold Standard “No doubt this behind-the-scenes look at The Ritz-Carlton will inspire you to work toward your own Gold Standard Michelli’s five principles will help you break through the sea of sameness plaguing most industries and equip you with what it takes to blow the doors off business-as-usual—a must for thriving in this economy!” —DR JACKIE FREIBERG, author of BOOM! Choices for Blowing the Doors Off Business-as-Usual, NUTS! and GUTS! “As a business leader, there are two vital aspects required of the books I choose to read—insight and information Dr Michelli’s new book provides an exponential measure of both—information on HOW The Ritz-Carlton creates such a compelling experience for their customers, and insight on WHY it is so critical to so! He has provided a compelling book about The Ritz-Carlton experience.” —SCOTT MCKAIN, vice chairman of Obsidian Enterprises and author of What Customers Really Want “The Ritz-Carlton is truly the New Gold Standard, and Dr Joseph Michelli has done a great job of capturing the five key leadership principles which Simon Cooper and the Ritz-Carlton team have been applying relentlessly, energetically, and with localized creativity Anyone interested in excellence in the 21st century would profit from reading The New Gold Standard.” —NEWT GINGRICH, founder of Center for Health Transformation and former speaker of the house “Simon [Cooper] and [The Ritz-Carlton] leadership team understand the role human nature plays in driving business outcomes better than any organization in the world.” —JIM CLIFTON, chairman and CEO of The Gallup Organization, Washington, D.C www.ebook3000.com “The Ritz-Carlton Hotel Company has a global reputation for service excellence because their leadership team insists on it— every day, in every business decision and every communication inside and outside the company We’ve learned a lot at Bank of America from The Ritz-Carlton team in our own work to build a customer-centered culture All those lessons are captured here in this book The New Gold Standard offers a view inside one of the most successful customer service cultures in the world, and is a valuable addition to business literature on the subject.” —KENNETH D LEWIS, chairman and CEO of Bank of America “The Ritz-Carlton Hotel Company wrote the book on legendary customer service And in The New Gold Standard, Joseph Michelli writes the book on The Ritz-Carlton Required reading for anyone who wants to learn how to create passionate employees and raving fan customers!” —KEN BLANCHARD, coauthor of The One Minute Manager® and The One Minute Entrepreneur™ “The Ritz-Carlton is the best hotel chain in the world because of the unique experience they offer This book shows you how to install the same customer-focused attitude toward service that makes a world leader.” — B R I A N T R A C Y, author of The Way to Wealth www.ebook3000.com THE NEW GOLD STANDARD Leadership Principles for Creating a Legendary Customer Experience Courtesy of The Ritz-Carlton Hotel Company JOSEPH A MICHELLI New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto www.ebook3000.com Copyright © 2008 by Joseph A Michelli All rights reserved Manufactured in the United States of America Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher 0-07-164163-7 The material in this eBook also appears in the print version of this title: 0-07-154833-5 All trademarks are trademarks of their respective owners Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark Where such designations appear in this book, they have been printed with initial caps McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs For more information, please contact George Hoare, Special Sales, at george_hoare@mcgrawhill.com or (212) 904-4069 TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc (“McGraw-Hill”) and its licensors reserve all rights in and to the work Use of this work is subject to these terms Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior consent You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited Your right to use the work may be terminated if you fail to comply with these terms THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE McGraw-Hill and its licensors not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom McGraw-Hill has no responsibility for the content of any information accessed through the work Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages This limitation of liability shall apply to any claim or cause whatsoever whether such claim or cause arises in contract, tort or otherwise DOI: 10.1036/0071548335 www.ebook3000.com Professional Want to learn more? We hope you enjoy this McGraw-Hill eBook! If you’d like more information about this book, its author, or related books and websites, please click here www.ebook3000.com To Nora Michelli, whose graceful and heroic response to breast cancer inspires and strengthens faith www.ebook3000.com This page intentionally left blank www.ebook3000.com For more information about this title, click here Contents Foreword ix S I M O N F C O O P E R , President, The Ritz-Carlton Hotel Company, L.L.C Acknowledgments xiii The Ritz-Carlton Experience P R I N C I P L E C Define and Refine D Set the Foundation: Communicating Core Identity and Culture 19 Be Relevant 44 P R I N C I P L E C Empower through Trust D Select—Don’t Hire 73 It’s a Matter of Trust 94 vii www.ebook3000.com Contents P R I N C I P L E C It’s Not about You D Build a Business Focused on Others 119 Support Frontline Empathy 146 P R I N C I P L E C Deliver Wow! D Wow: The Ultimate Guest Experience 165 Turn Wow into Action 187 P R I N C I P L E C Leave a Lasting Footprint D 10 Aspire, Achieve, Teach 11 Sustainability and Stewardship 207 228 Conclusion: A Lasting Impression 256 Notes 265 Sources 273 Index 277 viii www.ebook3000.com This page intentionally left blank Sources Much of the content of this book emerged from interviews with Ritz-Carlton corporate and hotel senior leaders, as well as owners and corporate visionaries, including Allan Federer, general manager of The Ritz-Carlton, Millenia Singapore Bhavana Boggs, vice president and senior counsel Bob Kharazmi, senior vice president of international operations Bob Phillips, senior vice president of business development, The Ritz-Carlton Clubs Brian Gullbrants, vice president of operations Bruce Himelstein, senior vice president of sales and marketing Debi Howard, manager of corporate guest relations Derek Flint, general manager of The Ritz-Carlton, Beijing, Financial Street Dermod Dwyer, executive chairman of Treasury Holdings Diana Oreck, vice president of global learning and the Leadership Center Ed Mady, vice president and area general manager of The RitzCarlton, San Francisco Ed Staros, vice president and managing director of The RitzCarlton Resorts of Naples Erwin Schinnerl, general manager of The Ritz-Carlton, Boston Common Francisca Martinez, vice president of talent management Hermann Elger, general manager of The Ritz-Carlton, Cancún Hervé Humler, president of international operations 273 Copyright © 2008 by Joseph A Michelli Click here for terms of use Sources Horst Schulze, past president and cofounder of Ritz-Carlton and founder of The West Paces Hotel Group, LLC Jean Cohen, vice president and general manager of The Ritz-Carlton, Grand Cayman John Cottrill, senior vice president of The Ritz-Carlton Clubs and Residences John Timmerman, vice president of quality and program management Julia Gajcak, vice president of communications and marketing Karim Alibhai, founder and manager of the Gencom Group Katerina Panayiotou, manager of internal communication Kathy Smith, senior vice president of human resources Ken Rehmann, executive vice president of operations Kevin Walsh, senior director of customer relationship management Laurie Wooden, vice president of new business development and corporate strategy Mandy Holloway, senior director of global learning Mark DeCocinis, regional vice president of Asia Pacific Mark Ferland, general manager of The Ritz-Carlton, Orlando, Grande Lakes Michael King, general manager of The Ritz-Carlton, Denver Myra deGersdorff, general manager of The Ritz-Carlton, New Orleans Paul Westbrook, senior vice president of product and brand management Peter Mainguy, general manager of The Ritz-Carlton, Dubai Ricco de Blank, general manager of The Ritz-Carlton, Tokyo Roberto Van Geenen, general manager of The Ritz-Carlton, Dallas Simon F Cooper, president and chief operating officer Sue Stephenson, vice president of Community Footprints Susan Strayer, director of talent management Tom Donovan, general manager of The Ritz-Carlton, Kapalua Tony Mira, general manager of The Ritz-Carlton, Dearborn Victor Clavell, vice president and area general manager of Hotel Arts, Barcelona, Vivian Deuschl, vice president of public relations Additionally, the following individuals from all levels of the organization made themselves available to provide information necessary to make The New Gold Standard possible: Abbey Millett, Adam Hassan, Ajith De Silva, Alexandra Valentin, Andrea Aichinger, Andy Sun, Antje Geister, Apple Wang, Audrey Strong, Aziz Yasin, Becky Gill, Beth Ridenour, Betty Lewis, Bjoern 274 Sources Hartmann, Bob McDonald, Bonnie Crail, Brian Doyle, Char Schroeder, Charles J Gilbert, Cheng Chi Keung, Cherie Y Webb, Christoph Moje, Cleria Ferreira, Daniel Mangione, Darin Duvernay, Dean Fearing, Donald Stamets, Elena Mullican, Elizabeth Rodriguez, Ellen Terry, Emily Vallejo, Emmie Lancaster, Emnet Andu, Esezi Kolagbodi, Evelyn Yo, Flavia Bonilla, Fred Boutouba, Gary Weaver, Harold Rodriguez, Ho Ching Yin Ada, Hope Nudelman, Jackie Peake, Javier A Olivos, Jennifer Oberstein, John Meehan, Joselyn Hernandez, Julia Zhu, Julie Lytle, Kathleen Coady, Kathryn Medico, Kelly Tiernan, Kelly Wood, Kent Kruse, Kevin Baker, Kevin Richeson, Kevin Sbraga, Laura M Downes, Laura Gutierrez, Laura Perez Diaz, Lauren McCloud, Lauren Mitchell, Loren Solomon, Layla Eid, Liza Kubic, Luis de Dios Marin, Marguerite Dowd, Maria Alvarez, Maria Castano, Maria-Luisa Dittrich, Maria Thompson, Mark D Nadonza, Marlene Szczodrowski, Marsha Barns, Marty Premtaj, Maurice Pearson, Melissa Young, Micah Dean, Michael Clemons, Miguel Saldivia, Mildred Sjostrand, Molly Clark, Myra Folwell, Nicolas Dousson, Nina Romanelli, Paul A Boguski, Paul Savarino, Philip Fingerle, Ralph Galloway, Raouf Drissi, Raveendran Thundil, Rebecca Dickow, Rich Felton, Ronald Thomas, Rose Huddleston, Rubén Paredes, Saad Khatib, Sandra Ryder, Sarah Santanella, Scott Doran, Steven Schaefer, Suzanne Holbrook, Tricia Chiang, Wan Kin Fung, William Gilbreath, William P Perry, Jr., Yolanda Guzman, Additional Resources The Ritz-Carlton Hotel Company, L.L.C 4445 Willard Avenue, Suite 800 Chevy Chase, MD 20815, United States 301-547-4700 Reservations: 800-241-3333 www.ritzcarlton.com The Ritz-Carlton Leadership Center 301-547-4806 corporate.ritzcarlton.com/en/LeadershipCenter The Ritz-Carlton Club 877-201-4290 407-770-5882 www.ritzcarltonclub.com 275 Sources The Ritz-Carlton Residences 6649 Westwood Boulevard, Suite 500 Orlando, FL 32821 866-467-0110 www.ritzcarltonrealestate.com/residences/default.jsp The Michelli Experience 300 Garden of the Gods, No 203 Colorado Springs, CO 888-711-4900 www.themichelliexperience.com The New Gold Standard Web site www.yournewgoldstandard.com Gallup 901 F Street, NW Washington, DC 20004 877-242-5587 or 202-715-3030 www.gallup.com Talent Plus One Talent Plus Way Lincoln, Nebraska 68506-5987 800-VARSITY 402-489-2000 www.talentplus.com Team One 1960 East Grand Avenue El Segundo, CA 90245 310-615-2000 www.teamone-usa.com 276 Index A AAA Five Diamond Awards, 8, Alibhai, Karim, 140, 211–212, 248 Alignment to Gold Standards (see Lineup) Alvarez, Maria, 193, 194 Ambassadors of the Environment Program, 247–248 Anderson, Greg, 151–152 Andu, Emnet, 90, 112–113 Armistead, David, 94 Ashkenas, Ron, 31 Atlanta Food Bank, 236–238 Authenticity, 107–109 Awards, 89, 137, 213–214 B Baldrige, Malcolm, 121 Barns, Marsha, 101 Belonging, sense of, 170–172 Benchmarking, 125 Best practices: learning from, 120–126 sharing, 225 Best Service Providers award, Fortune magazine, Bloomberg, Michael, 251 Boardroom Briefing magazine, 229–230 Boguski, Paul A., 107 Bolling, Bill, 236, 237, 246 Bolt, Jim, 99, 100 Boutouba, Fred, 50–51 Brand extensions, 207–227 through emulation, 222–225 through external training, 216–222 through internal training, 213–216 post-World War II, for relevance, 60–61 Braynov, Brayno S., 182–183 Brewer, Donna, 219 Bridges from School to Work program, 252–253 Brinkmann, Colleen T., 12–13 Brown, Jason, 202 Buechner, Carl W., 146 Business partners, needs of, 139–142 Business processes: as drivers of quality improvement, 119–120 (See also Quality improvement) local involvement in, 142–144 277 Copyright © 2008 by Joseph A Michelli Click here for terms of use Index Business processes: (cont’d) others’ best practices for, 120–126 Business travel, C Castano, Maria, 203 Chiang, Tricia, 219 Citibank Singapore, 222–225 Clavell, Victor, 144 Clemons, Michael, 80–81 Coffman, Curt, 126 Cohen, Jean, 81, 119–120, 143–144 Commitment to Quality, 188 Communication, 176–177 listening, 137, 139–142 shared, 168–170 of values, 43 Community: involvement initiatives, 232–235 relevance to needs of, 57–61 strengthening of, 250–254 Community Footprints Fund, 244, 250 Community Footprints program, 124, 230–235, 244 Company image, changes in, 67–69 Complacency, 20–21 Cooper, Simon: on aftermath of Hurricane Katrina, 239 attention to others’ needs by, 160 on balancing competing needs, 59–60 on benefits of empowerment, 114 on brand extensions, 225–226 on change in guest demographics, 45–46 on “comfortable contemporary,” 51 on complacency, 20 on corporate social responsibility, 230 on dealing with breakdowns, 156 on effects of training, 215 and employee engagement, 128 on employee’s subtle actions, 73–74 on environmental issues, 246 on functional excellence, 191 on Gallup metrics, 139 Cooper, Simon: (cont’d) on the Gold Standards, 19 on his leadership, 258 on impact of job creation, 251–252 on knowing customer preferences, 151 lineup participation by, 41–42 on listening to business partners, 140 on listening and measurement, 137–138 on longevity and relevance of brand, 60–61 on personal impact of his work, 262–263 on profitability, 95 on Reserve properties, 212 on Service Values, 65–67 on staff as trainers, 220 on Wow stories, 201 Core business principles, 15 Corporate social responsibility (CSR), 228–255 and challenges of environmental considerations, 245–250 as essential legacy, 250–254 holistic approach to, 229–235 seeking opportunities for, 242–245 value of social giving/volunteer programs, 235–242 Cottrill, John, 210–211 Cousteau, Jean-Michel, 247 Covert, Marty, 243 Creativity, stories of, 202–203 Credo, the, 23–26, 29 Credo Card, 21–23, 222–224, 258–259 Creighton, James J., Jr., 209–210 CSR (see Corporate social responsibility) Culture, 21–22 imprinting, 79–82, 84–85 of learning, 213 of listening, 137 orientation to, 79–81 of service, 258–259 Customer relationship management database (see Mystique database) Customers (see Guests) 278 Index D Day 21, 89–90 Day 365, 91 Dean, Micah, 174–175, 240–241 De Blank, Ricco, 55, 88, 101–102, 137 DeCocinis, Mark, 83 De Dios Marin, Luis, 249–250 Define and Refine principle, 15, 53–55 De Gersdorff, Myra, 41, 189 Deliver Wow! principle, 15 De Mesa, Alycia, 211 Denning, Stephen, 190–191 De Silva, Ajith, 201–202 Deuschl, Vivian, 20, 32, 111, 160, 231 Diggins, Bill, 131–132 Discerning affluents, 48–49 Donovan, Tom, 80 Doran, Scott, 193–194 Dousson, Nicolas, 192 Dowd, Marguerite, 38–39, 150–151 Dubé, Laurette, 175 Dwyer, Dermod, 57–58, 140–142 Dyer, Cindy, 54–55 E Emerson, Ralph Waldo, 207 Emotional engagement: Service Values for, 64–65 Wow stories of, 193–195 Empathy, 146–161 and Mystique database, 147–155 training for, 158–160 using all senses for, 174 Employee Promise, 99–101 Employee selection, 73–79, 259–260 assessing candidates, 75–79 hiring vs., 76 interviews in, 76–77 Employees (see Ladies and Gentlemen) Employer of choice recognition, 30 Empower through Trust principle, 15 Empowerment, 108–115 Emulation, brand extensions through, 222–225 Engagement: of customers, 97–98, 131–138, 166 emotional, 64–65, 193–195 of employees, 89–90, 105–107, 126–131 Enrietto, Paula, 221 Environmental conservation, 245–250 Epperson, Jerry, 49–50 Escoffier, Auguste, Excellence: action steps for, 256 challenges in maintaining, 261–263 learning from, 120–126 process of inquiry for, 256–257 Extraordinary circumstances: social responsibility in, 238–241 Wow experiences in, 179–180 F Fairholm, Gilbert, 94 Fearing, Dean, 59–60 Federer, Allan, 95, 102–103, 134, 222 FedEx, 39–40 Ferland, Mark, 51, 56–57, 146–147, 158–159 Ferreira, Cleria, 198 Figliuolo, Mike, 219–221 Financial authority of employees, 110–111 Fingerle, Philip, 196 First Class recognition cards, 189 First impressions, 166–168 Fiscal health of Ritz-Carlton, 4–6 Five Star recognition program, 189–190 Fleming, John H., 136, 180 Flint, Derek, 176 Footprint (see Brand extensions; Corporate social responsibility) Foss, Jonathan G., 23, 40 Four Steps to Innovation, 125–126 Fry-Ramsdell, Kathryn, 207 Functional excellence stories, 191–193 Functional values, 64 G Gajcak, Julia, 21, 91–92 Gallup CE tool, 131–139, 229 279 Index Gallup Q tool, 127–129 Gencom Group, 140 Gilbert, Charles J., 200 Gilbreath, William, 198 Gill, Becky, 235, 238 Gilman International Conservation, 242, 243 Giuliani, Rudy, 251 Give Back Getaways, 250 Global learning center, 213–216 Goggins, Bradley, 231 Gold Standards, 19–43 the Credo, 23–26, 29 culture for, 21–22 The Motto, 26–30 process of alignment to, 37–42 the Three Steps of Service, 30–33 20 Basics for, 33–37 Gordon, Jack, 214 Grenfell, Sir Wilfred T., 119 Guests: change in demographics of, 45–46, 138–139 engagement of, 97–98, 131–138 expectations of, 151–152 privacy of information on, 176–177 relevance of information on, 257 tailoring experiences to needs of, 172–175 Gullbrants, Brian, 11–12, 29, 53–54, 142, 152 Gutierrez, Laura, 13–15 H Hartmann, Bjoern, 174 Hassan, Adam, 77, 86–87 Hawkins, John, 103–104 Hertz, Harry S., Hillary, Sir Edmund, 61 Himelstein, Bruce, 20, 48, 67–68, 244 Hines, Beatrice, 239 Hire-date anniversaries, 91–92 Hiring, 76 (See also Employee selection) Holloway, Mandy, 82 Honesty, 107–109 Howard, Debi, 183 Humler, Hervé, 29–30, 76 I Inquiry process, 256–257 Interviews, hiring, 76–77 It’s Not about You principle, 15 J James, William, 228 J.D Power, 137 Job creation, 251–252 Johnson, William B., K Keller, Albert, 2, Keller, Helen, 187 Kempis, Thomas, 19 Key Success Factors, 96–97, 143–144 Kharazmi, Bob, 60, 84–85 Khatib, Saad, 195–197 Kindness, small acts of, 196–197 Kirby, Jennifer, 49 Kolagbodi, Esezi, 88 L Ladies and Gentlemen: celebrating hire-date anniversaries of, 91–92 empowerment of, 108–115, 260–261 engagement of, 89–90, 105–107, 126–131 financial authority of, 110–111 imprinting culture on, 79–82 maintaining vitality and engagement of, 89–90 management’s treatment of, 32, 33 selection of, 73–79 training, 85–89 “Ladies and Gentlemen Serving Ladies and Gentlemen” (Horst Schulze), 27 (See also The Motto) Larsen, Jonathan, 222–224 Leadership Center, 9, 216–222 Learning: culture of, 213 training vs., 82–83 from Wow stories, 187–189 280 Index Leave a Lasting Footprint principle, 15 Lewis, Betty, 159 Lineup, 37–42 function of, 38–39 limitations and strengths of, 40–41 as modeling, 41–42 origin of, 39–40 Listening: to business partners, 139–142 culture of, 137 Loyalty of customers, 165–166 Luxury consumer demographics, 47–50 (See also Relevance) Luxury Industry Panel, 47–48 Lytle, Julie, 104–105 MMHI (Market Metrix Hospitality Index), Mobil Five-Star Awards, 8, Modeling by leadership, 41–43 Moje, Christoph, 87 Monarch Hotel Group, Most Prestigious Luxury Brand, Luxury Institute, Motto, The, 26–30 MR BIV, 155–156 Mullican, Elena, 252–253 Mystique database, 147–155 collecting information for, 148–150 impact of using, 150–151 privacy issues with, 153, 154 risk factors in use of, 151–155 M Mady, Ed, 53, 56, 65, 75, 78, 87–88, 106, 152 Mainguy, Peter, 56 Malcolm Baldrige National Quality Award, 7–9, 28, 120–124, 216 Managers, orientation of, 85–89 Mangione, Daniel, 91, 113–114, 149–150 Market Metrix Hospitality Index (MMHI), Marnier-Lapostolle, Alexandre-Louis, Marriott International, 6–7 Martinez, Francisca, 78–79, 100 McCarty, Chris, 134 McConville, Kevin, 41–42, 128–130 McCrorey, Charrise, 108 McMurtry, Jeanette, 165–166 Meaningful Meetings program, 244–245 Meehan, John, 243 Memorable experiences, 195–196 Miller, Mark, 48, 49 Mira, Tony, 13, 77 Misani, Nicola, 232 Mission statements, 43, 228–229 (See also Credo) Mistakes (see Service breakdowns) N Nadonza, Mark D., 197 New hotel openings, 83–85, 234 Nicklaus, Jack, 256 Noncustomers, service to, 201–202 O Oberstein, Jennifer, 251 O’Neal, Shaquille, 239 Operational Dynamics, 171–172 Oreck, Diana, 24–25, 29, 62, 133, 155–156, 216, 218, 221–222 Orientation: for new employees, 79–81 for new managers, 85–89 P Panayiotou, Katerina, 188–189 Paredes, Rubén, 199 Pearson, Maurice, 25, 106–107 Pericles, 165 Perry, William P., Jr., 108 Phillips, Bob, 207–209 Physical environment, relevance of, 50–55 Pidgeon, Walter P., 241–242 Pivato, Sergio, 232 Pizza Hut, 54–55 Playfulness, 202–203 281 Index “Preference pads,” 148 Preferences, gauging, 152–153 Premtaj, Marty, 66 Previsit customer contact, 149 Privacy of information, 153, 154, 176–177 Process standards, 54 Product standards, 54 Profitability, 95–97, 228 Promises: employee, 98–101 reputation for keeping, 101–103 Q Quality, commitment to, 7–10 Quality improvement, 119–145 for customer satisfaction, 131–138 learning from others’ excellence for, 120–126 through local involvement in business processes, 142–144 and needs of business partners, 139–142 by understanding changes in customer base, 138–139 for workforce engagement, 126–131 Quality improvement teams, 142–143 Quality leaders, 134, 157 R Radar On/Antenna Up course, 158–160 Recruitment, 78 Rehmann, Ken, 101, 102, 135, 142–143 Reid, Angella, 241 Relationship, training through, 85–89 Relevance, 44–69 challenges in maintaining, 261–262 and changes in company image, 67–69 of customer database information, 148–149 for employees, 102 to needs of community, 57–61 of physical environment, 50–55 service values for, 61–67 various forms of, 55–57 Renaghan, Leo, 175 Respect, 103–105 Responsibility, 180–182, 225 Return value, 241–242 Reynolds, Mercer, 239 Ripert, Eric, 140 Ritz, César, 1, 3–4, 16 Ritz, Charles, Ritz, Marie, Ritz-Carlton Club, 208–211 Ritz-Carlton Hotel Company,The, 1–16 commitment to quality in, 7–10 essence of, 12–16 history of, 2–7 lessons learned from, 10–12 volunteer hours and product donations by, 233 Ritz-Carlton Investing Company, Ritz-Carlton Management Company, Ritz-Carlton Mystique: database for, 147–155 definition of, 65 Ritz-Carlton Residences, 210–212 Ryder, Sandra, 20 S Salazar, Natalie, 13–15 Saldivia, Miguel, 199 Sanders, Robin, 88–89 Savarino, Paul, 248–249 Sbraga, Kevin, 194 Scenography, 52–53 Schinnerl, Erwin, 105–106 Schulze, Horst: biography of, 27–28 and company difficulties, on cutting costs, on employee selection, 259–260 on home-away-from home experiences, 172–173, 177–178 on hotel openings, 24 and lineup, 39–40 on losing leadership, 262 on mission statement, 228–229 on The Motto, 26–27, 29 on strengthening communities, 251 282 Index Service breakdowns: empathy during, 155–158 empowering employees to resolve, 111–112 impact of, 156 as MR BIV incidents, 155–156 negative impact of, 182–184 steps in resolving, 182 tracking, 156–157 Wow experiences with, 177–178 Service standards, 54 Service Values, 36–37, 61–67 cultural change for, 62–63 guidelines for, 63–64 hierarchical structure of, 64–65 initial resistance to, 65–66 20 Basics vs., 62–64 Wow stories involving, 191–192 Shared communication, 168–170 Sheehan, Brian, 33 Shurter, Steve, 242–243 Silone, Ignazio, 44 Sjostrand, Mildred, 198 Smith, Kathy, 81, 100–101, 108–109, 128 Smith, Sydney, 73 Social giving/volunteer programs, 229–230, 235–242 Solectron Corporation, 122 Standards, unchangeable vs refined, 53–55 (See also Gold Standards) Staros, Ed, 6–8, 23–24, 36, 39–40, 111–112, 250–251, 264 Stephenson, Sue, 22, 98–99, 230, 233–234, 241, 244, 246–247 Stewardship (see Corporate social responsibility) Strayer, Susan, 78 Strong, Audrey, 234 Strong, Jim, Strong, Nancy, 139–140 Subtle attentiveness, 175–176 Sun, Andy, 192 Sustainability (see Corporate social responsibility) SWOT (strengths, weaknesses, opportunities, and threats) analyses, 143–144 T Tabletop Pyramid for the 2008 Key Success Factors, 96–97 Talbot, Deborah, 229–230 Talent, selecting employees by, 75 Team One, 48, 68 Teamwork, 87–88, 197–201 Tencati, Antonio, 232 Terry, Ellen, 240 Thomas, Ronald, 253–254 Thompson, Maria, 25, 149 Thoughtful service, 184–185 3Cs of quality, 157 Three Steps of Service, 30–33 Thundil, Raveendran, 195 Tichy, Noel M., 191 Timmerman, John, 63, 65–66, 121–124, 128–129, 135, 157, 258 Traditions, 43, 258 Training: awards for, brand extensions through, 213–222 for empathy, 158–160 excellence in, 212–213 of new employees, 82–85 through relationship, 85–89 Training Magazine, 214 Travel Industry Advisory Council, 139–140 Trust, 94–116 and Employee Promise, 98–101 and empowerment, 108–112 and honesty/authenticity, 107–109 from keeping promises, 101–103 as more than a word, 103–105 results of, 112–115 and staff engagement, 105–107 and stretching of human resources, 95–98 T3, the, 142–143 Turner, Sandy, 194 Turtle Camp, 249–250 20 Basics, 33–37, 62–64 U Unmet/unstated guest needs, 159–160 283 Index V Valentin, Alexandra, 21, 90, 143, 218 Vallejo, Emily, 203 Values, 43 (See also Service Values) Van Geenen, Roberto, 83–84 Vargas, Melody Treece, 176–177 Viking Range Corporation, 225 Volunteerism, 229–230, 235–242 W Wall Street Journal, 20 Walsh, Kevin, 148, 153, 154, 219 Watkins, Michael, 86 Watson, Robert E., 12, 50–51 Weaver, Gary, 109 Webb, Cherie Y., 40, 215–216 Well-being, delivering, 178–179 Westbrook, Paul, 45, 47–48, 238–239 White-glove test, 257–258 White Oak Conservation Center, 242–243 Whitley, Richard, 31–32 Widzer, Joel, 173 Wooden, Laurie, 44–45, 138 Wow experiences, 165–186 when breakdowns happen, 177–178 by delivering well-being, 178–179 in extraordinary circumstances, 179–180 first impressions in, 166–168 and negative impact of problems, 182–184 and privacy of information, 176–177 Wow experiences, (cont’d) through sense of belonging, 170–172 shared communication for, 168–170 through subtle attentiveness, 175–176 by tailoring to guest’s needs, 172–175 through taking responsibility, 181–182 from uncommonly thoughtful service, 184–185 Wow stories, 187–204 awards for, 189–190 of emotional engagement, 193–195 of functional excellence, 191–193 learning from, 187–189 of memorable experiences, 195–196 of playfulness and creativity, 202–203 of service to noncustomers, 201–202 of small acts of kindness, 196–197 of teamwork, 197–201 X Xerox Corporation, 122 Y Young, Melissa, 76 Z Zore, Ed, 52 Zytec Corporation, 122 284 About the Author Dr Joseph Michelli is an organizational consultant and the chief experience officer of The Michelli Experience He has dedicated his career to studying successful businesses, both large and small Prior to The New Gold Standard, Dr Michelli authored the Wall Street Journal, BusinessWeek, and USA Today best seller The Starbucks Experience: Principles for Turning Ordinary into Extraordinary Additionally, he coauthored When Fish Fly: Lessons for Creating a Vital and Energized Workplace with John Yokoyama, the owner of the World Famous Pike Place Fish Market in Seattle Dr Michelli transfers his knowledge of exceptional business practices through his keynote speeches and workshops These informative and entertaining presentations, which are provided by Dr Michelli and his associates, focus on the skills necessary to D Create meaningful customer experiences D Drive employee and customer engagement D Enhance a commitment to service excellence D Create quality improvement processes Copyright © 2008 by Joseph A Michelli Click here for terms of use D Increase employee morale In addition to dynamic keynote presentations offered globally, The Michelli Experience offers D Consultation on the development of optimal customer and employee experiences D Service excellence training D Enhancement of staff empowerment D Leadership team development services D Group facilitation and team-building strategies D Creation of customer and employee engagement measurement processes D Customized management and frontline training programs Dr Michelli is eager to help you bring The New Gold Standard fully to life in your business He can be reached through contact information on his Web site, www.themichelliexperience com, or by calling either (719) 473-2414 or (888) 711-4900 (toll free within the United States) Visit yournewgoldstandard.com for interviews with the president, founders, and corporate executives from The Ritz-Carlton Hotel Company; resources; podcasts; and an interactive blog ... leader.” — B R I A N T R A C Y, author of The Way to Wealth www.ebook3000.com THE NEW GOLD STANDARD Leadership Principles for Creating a Legendary Customer Experience Courtesy of The Ritz-Carlton... of The Ritz-Carlton”) at all levels of the company, and I have traveled to their U.S properties as well as to dynamic international locations such as Singapore and Dubai The New Gold Standard. .. luxury or upscale hotel Culinary awards such as the Mobil Five-Star and AAA Five Diamond recognitions for such restaurants as The Dining Room at The Ritz-Carlton, Buckhead, in Atlanta are far too numerous