The New Gold Standard

Book cover for The New Gold StandardI stayed at my first Ritz-Carlton when I was 22 years old. I was sent on a 3-day business trip at Laguna Nigel. Just go take a peek at the pictures in this link and you’ll get the idea. Stunning. I was told before I went on the trip that I would need to “dress,” even in the lobby. That meant I would have to wear, at minimum, a sport coat at all times. I did, and when I arrived and checked in, a Gentleman wearing white gloves escorted me to my room overlooking the Pacific Ocean and gave me an orientation to the property. I’ve been hooked on Ritz-Carlton ever since.

It’s why I was so fascinated by Joseph Michelli’s look at how Ritz-Carlton works so elegantly. In The New Gold Standard, Michelli talks about how “Ladies and Gentlemen Serving Ladies and Gentlemen” is a motto that still works in 2008.

Throughout the book, which is filled with inspiring stories of staff making the Ritz-Carlton experience the best it can be, Michelli outlines two components that have particular interest for HR practitioners.

Inspire staff to focus on purpose and outcomes, not fulfillment and procedures. From the onset of their employee selection process, leadership at Ritz-Carlton looks for underlying talent in service characteristics. They then train and certify the skills necessary for the new hires to do their jobs while constantly linking job function to the overarching purpose of the business - namely to provide for “the genuine care and comfort” of their guest.

Empowering the front-line saves money. While many business leaders talk about their empowered workforce, few put money behind the hype. At Ritz-Carlton, staff members are given the authority to spend up to $2,000 per day per guest, without seeking the approval of their supervisors. This authority allows front-line workers to immediately resolve service breakdowns for guests or simply engage guests by doing something unexpected that will make the hotel stay memorable. Essentially, empowered employees consistently transform otherwise satisfied customers into fully-engaged brand loyalists that spend more and refer family and friends to the business.

I’ve stayed in many Ritz-Carlton hotels since I stayed at that first one in Laguna Nigel. (Note to self: You live a charmed life.) I’ve been lucky enough to stay 50 or 60 times in Ritz-Cartlon Buckhead when we were working on a project in Atlanta. I stayed for a week at Ritz-Carlton’s Hotel Arts in Barcelona. Singapore. Coconut Grove. Madrid. Ritz Paris. I can say that I had an excellent experience at every one. The New Gold Standard is a great inside look at why.

THE NEW GOLD STANDARD: 5 Leadership Principles for Creating a Legendary Customer Experience
Joseph A. Michelli, Ph.D.
McGraw-Hill; July 2008
ISBN-10: 0-07-154833-5; ISBN-13: 978-0-07-154833-5.

Posted on July 9, 2008 by Frank Roche 
Filed Under Books

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