The Ritz-CarltonAngela CauthornNneka EniHeather KromerJessica LovornRyan Rothermel Peter Singer

Presentation OverviewCompany HistoryBusiness ModelCurrent State 7 Day CountdownLearning MethodsSummary & Group RecommendationRitz-Carlton NowNo Ordinary Boot CampLearning Methods

Ritz-Carlton HistoryCesar RitzShepherd in SwitzerlandMoved to Paris and worked in some of the finest hotels and restaurantsOpened first hotel in Paris, followed by London (1898)

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Ritz-Carlton History1927: Ritz-Carlton Hotel Company expanded to North America (Boston)1983: Atlanta based Johnson Company bought North American rights to name1997: Marriott International purchased Ritz-Carlton2000: Ritz-Carlton primarily a management company operating 38 hotels and resorts across the globe

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Millennium Partners OverviewNew York based real estate development groupHigh end luxury apartmentsHeightLightViewsService

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What are the basic characteristics of the Ritz-Carlton business model?

Ritz-Carlton Business ModelFocus on guestsGreet at airport with mimosas and discount coupons on a silver trayTechnology ButlerAirport check-in conciergeEvent planners the vital few40% of annual sales income

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Ritz-Carlton Business ModelManagement ContractsReal estate crash of the late 1980sHotel owners gained leverage in management contract negotiation processWanted more voice in how properties were managed

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What is Ritz-Carlton selling?

Quality at Ritz-Carlton2 Time Winner of Baldrige Award for Quality

Total Quality ManagementContinuous improvementPrograms designed to meet customer needs

Service Quality IndicatorsGuest Recognition

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Human Resources at Ritz-Carlton

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.

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Human Resources at Ritz-Carlton20% annual turnover rateIndustry average: 100%Day 21 EventDegree to which company lived up to promises made to employees during orientation25% of management began as hourly employeesExtensive formal and informal training

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The Washington D.C. HotelThe 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 multi-use facilityThe 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 ComplexThe complex covered 2.5 acresIt included 162 luxury condominiumsA 100,000 square foot sports clubSplash spaThree restaurants40,000 square feet of street level restaurants and retail shopsAnd the 300 room hotel

Washington D.C.

Hotel Opening ProcessThe process was divided into three sections The PropertyMarket Customization Staffing

Washington D.C.

The PropertyMany decisions have to be made regarding the site of a new Ritz-Carlton hotelThe 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 districtWashington D.C. also attracted foreign diplomats and other potentially strong clientele

Washington D.C.

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

Washington D.C.

Market CustomizationThey also decided to break away from the companys historic English traditionThe 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 SelectionMillennium Partners had the right to approve the individuals nominated by the Ritz-Carlton for the executive positionsThe General Manager, the Director of Marketing and the ControllerThese executive members then selected their function managers who in turn were responsible for hiring line-staff members

Washington D.C.

Methods of Staff SelectionPersonnel recruitment- James McBride dined at the competitors and distributed cards with job application information to exceptional serversRitz 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 CountdownThis was the new employees first encounter with the hotel, that started exactly seven days before the grand opening of the hotelThe first 2 days were devoted to orienting employees to the company culture and valuesThe next five days were devoted to more skills training and trial runs of service delivery

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Day One: Staff OrientationBig Pep RallyEnthusiasm around the Ritz-Carlton cultureSchultz addresses new employeesAudiovisual Training MethodLecture Training MethodService PhilosophyGold Standards

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Day One: Leadership OrientationLeadership OrientationDifferent approach from staff orientationFocus on the bottom lineModified version of team leader training

The business is created for one reason to make money. This is your role.Hong Kong

Lecture MethodOne way communication from trainer to the trainee through spoken wordsLeast expensive training methodBest used for getting large amount of information in a well thought-out mannerHong Kong

Audiovisual InstructionOverhead, slides, and video in conjunction with lectureMultiple advantages for trainers:Ability to go back or skip forward in lessonCan be watched as many times as neededExposure to real life situations that are difficult to replicateConsistent instructionAllows for review Hong Kong

Team Leader Training Team Leader TrainingStrategy within team trainingRefers to the training that the team manager or facilitator receivesInvolves preparing the leader to resolve conflict or help the team coordinate its activitiesHong Kong

Day Two: Departmental VisionDepartment MeetingsGroup icebreakersSelf-directed learning

There is only one way of teaching self teaching. Think, when youve left, where are you in creating a fine memory ?

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

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Days 3 7: Skills TrainingFor 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

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Days 3 7: Skills TrainingEach 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

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Days 3 7: Skills TrainingInstant guest pacification was a Ritz-Carlton basic skillDay 4 all new employees were instructed in the standardized procedure for handling guest difficultiesThey were taught to break away from their standard duties to solve a customers problems Each problem was documented on a Guest Incident Action Form

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Last 3 DaysDepartmental technical training occurredLearn details involved in performing their jobs to standardsEveryone 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.

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Role PlayFor 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 learnA sample role play helps explain to the trainee how the role play works

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Role PlayDuring the Role Play:The trainer needs to monitor the time, degree of intensity, and focus of the groups attentionThe more meaningful the exercise is to participants the less trouble the trainer should have with focus and intensityAfter the Role Play:Debriefing is criticalHelps trainees understand the experience and discuss their insights with each other

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Role Play at Ritz-CarltonMembers 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).

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Behavior ModelingPresents trainees with a model who demonstrates key behaviors to replicate and provides trainees with the opportunity to practice key behaviorsKey Behavior is one of a set of behaviors that are necessary to complete a taskIs based on the principles of social learning theory (Ch4) which emphasize that learning occurs by:Observation of behaviors demonstrated by a model andVicarious reinforcement

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Behavior ModelingVicarious 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

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First Month of OperationsPlans were to open hotel with 50% occupancyMonthly occupancy will increase each month to 80% in 3 to 4 monthsHired in beginning as they have 80% occupancyOctober 11, 2000 the Ritz-Carlton Hotel opened for business

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Seven Day CountdownSummaryDay One: Staff OrientationDay Two: Department Vision SessionsDays Three Seven: Skills TrainingDubai

Seven Day CountdownPros to the Seven Day CountdownDubai

Seven Day CountdownPros to the Seven Day CountdownEmployee moraleProtection from feeling overwhelmedFlawless ExecutionFocus on quality (not quantity) from the very beginningOffsets expected (minor) turnover at openingDubai

Seven Day CountdownCons to the Seven Day CountdownDubai

Seven Day CountdownCons to the Seven Day CountdownLoss of profitOpening at 50% occupancyEmployees have over a month between hire and first dayMay lose quality hires that cannot go without payTime 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 NowSince January 2006-- Regional Vice President for Rosewood Hotels and Resorts Since December 2003--Managing Director of The CarlyleJoined The Carlyle from The Grosvenor House in London where, as General Manager, he was recruited to reposition this landmark hotel after an extensive renovationDubai

Collins NowBrian Collins Named President at Intrawest, Reporting to Recently Named CEO Bill Jensen VANCOUVER, June 3, 2008Between Millennium Partners and Intrawest he was the Principal and Founder of Colgate Development LLCDubai

Ritz-Carlton NowThe 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

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Bringing it TogetherTraining methods used in the Ritz-Carlton caseLectureAudiovisual techniquesHands on MethodsSelf-Directed LearningRole PlayBehavior Modeling

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Bringing it TogetherTraining methods not seen in the caseBusiness GamesCase StudySimulationHands on TrainingOn the Job TrainingWhat about group training methods?Dubai

Corporate Boot CampsCorporate boot camps designed to push new hires to their limits, with two goals:PreparednessBonding

TrilogyTrilogy founded in 1989 (Austin, TX)Configuration softwareAllows salesperson to transfer a customers needs into computer specifications, producing an accurate price quote.Company clients include large names such as HPRapid 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 UniversityThree month program:Month One:Assigned to section and track, functional learning and assignmentsMonth Two:Project Month. Develop an idea, and the business model for it. Build the product and develop the marketing planMonth Three: Graduation projects, assignments within business units

Training Methods - GroupsGroup Building MethodsDesigned to improve team or group effectivenessExperiential LearningAction Learning

Trilogy UniversityMonth OneSection is a new hires social group for durationAssignments mimic customer engagementsExperiential Learning

Experiential Learning Four stagesGain Conceptual Knowledge and TheoryFunctional learningTake part in a behavioral simulationAssignmentsAnalyze the activityEmployees discuss with section and section leaderConnect the theory and activity with on the job or real-life situationsOften part of month one assignments

Trilogy UniversityMonth TwoProject monthSmall teams develop a product, its business model, a prototype and a marketing strategyAction learning: actual problem solved and action plan developed15% of projects survive past project month

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

Action LearningSteps in Action LearningIdentify 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 gatheringGroup PresentationSelf-reflection and de-briefing

Trilogy UniversityMonth Three:Graduation projects or continuation of TU projectsGraduation processMeeting with TUer, new manager, section leaderBegin full assimilation into the organization

Other Group Training MethodsGroup training methodsAdventure LearningTeam learningCoordination TrainingCross-trainingTeam leader training

Adventure LearningFocuses on the development of teamwork and leadership skills through structured activitiesBest suited for development of self-awareness, risk taking, problem solving and conflict managementExamples:Trust fallsLow ropes courseMust consider company risk and effectiveness of training

Team TrainingUtilized to train and prepare those working in a team (NASCAR, military)Four elementsToolsMethodsStrategiesCoordination Training practice other skillsCross-training how to share informationTeam leader training how to lead / facilitateObjectives

TU OutcomesProduct PipelineThe idea to sell cars on the internet was developed at Trilogy University in 1997; now Trilogy has a global alliance with FordLeader DevelopmentTrilogys section leaders are actually top performers at Trilogy The university is grounds to develop these performers in to top-notch leadersStrategy Leaders have a teachable point of view (TPOV), which is constantly tested

TU OutcomesOrganizational TransformationTrilogy sees its new hires as the best chance to change the companyTrilogy University was developed as a way to keep the company moving forwardVirtuous Training CycleNew hires are learning from the leaders in the organization and the leaders are learning from the new hires

SummaryRitz-Carlton in Washington D.C.Training OverviewRitz-Carlton utilizes several training methods to train their ladies and gentlemanNo Ordinary Boot CampNew brand of orientationGroup training and action learning a key focus

The Malcolm Baldrige National Quality Award is given by the United StatesNational Institute of Standards and Technology. Through the actions of the National Productivity Advisory Committee chaired by Jack Grayson,, it was established by the Malcolm Baldrige National Quality Improvement Act of 1987 - Public Law 100-107 and named for Malcolm Baldrige, who served as United States Secretary of Commerce during the Reagan administration from 1981 until his 1987 death in a rodeo accident. APQC, [1], organized the first White House Conference on Productivity, spearheading the creation and design of the Malcolm Baldrige National Quality Award in 1987, and jointly administering the award for its first three years. The program recognizes quality service in the business, health care, education, and nonprofit sectors and was inspired by the ideas of Total Quality Management or TQM. This is the only quality award that is actually awarded by the President of the United States. This award and the Ron Brown Award are the two U.S. presidential awards given to corporations.The original stated purposes of the award were to:promote quality awareness recognize quality achievements of the US companies publicize successful quality strategies The current award criteria are stated to have three important roles in strengthening US competitiveness:To help improve organizational performance practices, capabilities and results To facilitate communication and sharing of the best practice information among US organizations of all types To serve as a working tool for understanding and managing performance and for guiding planning and opportunities for learning The criteria are designed to help organizations use an aligned approach to organizational performance management that results in:Delivery of ever-improving value to customers, contributing to market success Improvement in overall organizational effectiveness and capabilities Organizational and personal learning The seven categories of the criteria are:Leadership Strategic Planning Customer & Market Focus Measurement, Analysis and Knowledge Management Workforce Focus Process Management Results

*Discuss the area; the case notes*Discuss the area; needs assessment for the area; *Art; secret service walk through*Discuss hiring to the culture and training for skills after*Ask questions regarding impact of different orientation styles and what has worked previously*Lacks trainee involvement, feedback, and meaningful connection to workProblems are mainly from the approach used typically too much content, poor dialogue, overuse of humor/music/dramaGroup recommendation: Keep at Seven Days, cant anticipate all role play. Anything past that would be on the job training or self-directed learning (as the case discusses)

*Get Up Close and Personal with Dinner at the PassWashington, DC February 9, 2009 Westend Bistro by Eric Ripert introduces Dinner at the Pass an incomparable, interactive dining concept welcoming guests to dine on the frontlines of one of Washingtons best and busiest kitchens"We are tremendously excited to offer this experience to our guests and welcome them a little farther into our world as cooks, Chef Palma said. Dinner at the Pass presents a 'behind the scenes' look at Westend Bistro for diners but also gives me the opportunity to interact and create a personalized experience for them."

*How would you feel?*To be successful, training must relate to the types of skills employees need to be successful

Studies have not been conducted on if it really works, but some people say theyve learned more about themselves and others. *Tools include a task analysis, performance measurement, simulation, feedback

Methods include: lecture, role play, and other training methods we have discussed

Objectives: teams objectives

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