Ritz-Carlton Case Study Paper Example

Introduction

While Ritz-Carlton has established itself as a leading hotel service in the industry since 1898, the greatest hindrance to attaining their full potential is customer service imperfection. However, there are strategies that can be formulated to achieve 100% customer retention as discussed below.

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The critical issue

The major issue facing Ritz-Carlton is to precisely identify service imperfections origin and effectively solve them. as J.D power and associates report. Thus, the company will be one step closer to achieving 100% customer retention in a productive six sigma principle environment.

Critical facts

One of the critical facts is that while the company articulates is that employees should report all resulting problems, employees tend to solve them instantaneously. Consequently, the flaws end up not reported at all. Another critical fact worth addressing is that Ritz-Carlton set standards do not necessarily exemplify customers' expectations precisely. Lastly, Ritz-Carlton has not yet established standard procedures to perform DQPR analysis and produce quality information.

Analysis

Addressing faults instantly makes it particularly challenging for the company to ascertain the very cause of every single problem. As such, the method unfolds into to major effects. First, the Company's awareness is compromised. Customers may be deviating from their services due to minor un-fulfillments without the knowledge of the company not forgetting that minor errors according to exhibit 5 generate approximately $145,783 loss every day. Secondly, Ritz-Carlton may not be able to initiate change rather than react to the changes made by defects in their quest to improve services offered

Notably, some of the Ritz-Carlton set standards do not comply with the exact customer needs. For instance, the company emphasizes that room services should be attended to within the first half an hour. The set range does not consider a customer whose expectations are not within the set time. Say for example a customer who needs room service within the first 20 minutes.

DQPR report analysis inconsistency is a challenge in Ritz-Carlton Corporation. Quality personnel in different hotels use dissimilar methods to analyze reports. Moreover, data analytics and statistical software are diverse not forgetting the specialists may have undergone different quality training.

Recommend decision

It is important that the company develop solutions to critical issues arising. For example, the company should Shift focus from pacification and emphasize that all defects whether amicably solved or not be reported. Ritz-Carlton may as well consider customers need highly and term them as an override to normal set standards. Furthermore, all hotels should aim at adopting a standard DQPR analysis strategy.

The effectiveness of the recommended decision

To begin with, ensuring all defects are reported would provide critical insight and allow for a remedy to be formulated. It would also ensure that the company is aware of all problems affecting its welfare. Next, elevating specific customer needs above the companies set standard would help eliminate cases where defects are overlooked simply because everything was done in accordance with the company standards. Lastly adopting a standard DQPR analysis strategy and software will ensure that all data is captured without irregularities caused by strategies and software differences.

Execution

During employee certification training, emphasis on Ritz-Carlton basic on the instant guest pacification should be made to not only instantly respond to the problem but also report each and every issue. Managerial department in each hotel should make sure that updates on the 20 gold basics are clear to already employed employees. A committee should set apart to review set standards that do not comply with the customer's needs. Changes made will then be distributed to all hotel departments. Lastly, the company should select a team comprised of technical members from each hotel who will be responsible for standardizing statistical software and DQPR analysis methods across the Ritz-Carlton. Unlike the current status where managers at each level devote 25% of their schedule on quality enhancement, 35% will be a significant change.

Scenario planning

Two major problems that may arise during execution is that there still might be un-complying employees as well as the standard DQPR analysis method and software developed may be imperfect. In the first case, the company can rate employees to encourage them to report. Secondly, technical staff should ensure frequent monitoring and maintenance of DQPR methods and software respectively.