HOW DOES HORST DO IT?
Several years ago, my wife and I spent a week at a Ritz-Carlton property, and to say it was the most amazing vacation we have ever had would be an understatement. As you know, the Ritz-Carlton Hotel Company is an international company that operates the luxury hotel chain known as the Ritz-Carlton, and Horst Schultz was their co-founder. The company has been tremendously successful and is the only company in America to have received the Malcolm Baldrige National Quality Award twice. After having returned from our trip, I decided to study their organization to uncover the keys to their success, and I would suggest that as business professionals, we can apply their keys to success to our businesses.
In researching their organization, I found that there are six primary reasons for their success, and I would like to share three of their reasons for success.
The first key to their success is the fact that every employee is taught that their job is to keep the customer. In other words, if one were to ask the chef what his or her job is, he or she would say that their job is to keep the customer. In other words, their job is not just to cook a good meal, but rather their job is to prepare a meal that is customized to the customer's tastes so that the customer will want to come back. If one were to ask the front desk associate what their job is, they would say their job is to welcome the guest with a personalized greeting as warmly and as quickly as possible, and with such grace and efficiency that the guest would want to return. In other words, their job is not just to ensure that a guest is checked in properly. As part of their ongoing training, employees are constantly reminded that great organizations do not lose customers. To demonstrate their commitment to this belief, every Ritz-Carlton employee has the authority to spend up to $2,000 per day, per guest without seeking approval to resolve any customer complaint.
The second reason for their success is that employees of the Ritz Carlton are constantly reminded that great organizations always find new customers, primarily through existing customers. In my case, I must state that this is true, as my wife and I chose the Ritz-Carlton for our vacation based on the referral of a business acquaintance.
A third reason for the success of this organization is that they believe in making as much money as possible without losing their customers. In order to do this, they continually strive to create such value and unforgettable experiences for their customers that they continue to return (even though the prices at Ritz-Carlton properties are higher than those of the majority of their competitors).
So in reviewing these three items, as business professionals, I think we could all benefit if we have everyone in our firms focus on never losing customers through careful customer service, securing new customers through existing customers, and doing so as profitably as possible.
In conclusion, stay tuned to learn about the next three keys to their success!
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