Quality Management at Ritz-Carlton: Methods and Metrics

Monitoring Quality at Ritz-Carlton

The Ritz-Carlton has implemented a broad set of strategies, initiatives, and programs to monitor its success in achieving service quality. These include the pervasive use of comment cards, follow-up surveys, and observations of how guests perceive service quality while staying at the hotel (Cochran, 2008). Ritz-Carlton also contracts with the Gallup Organization for third-party validation of service levels and periodically uses mystery shoppers to evaluate quality levels throughout their locations (Cochran, 2008).

All of these approaches to gathering intelligence on service quality are routinely captured in the company's knowledge management system, which is used for improving organizational effectiveness over the long term by capturing best practices (Timmerman, 2009). The Ritz-Carlton could also periodically complete a more extensive quality audit that takes into account all factors related to a guest's expectations and experiences in the hotel (Salazar, Costa, & Rita, 2010).

These audits are often anchored in the Service Quality Methodology (SERVQUAL) framework, which comprises 32 different factors that compare guest expectations versus experiences (Shahin & Janatyan, 2011). The Ritz-Carlton has been known to use its knowledge management systems for insights into how to devise entirely new processes for delivering services and delighting guests, using satisfaction data as a source of innovation over time (Sucic, 2010). This broad base of methods gives the hotel insight into how to continually improve quality.

Many companies claim that their goal is to provide quality products or services. However, the actions a company takes to prove it has quality—rather than just having it as a slogan or buzzword—reveal their true commitment.

Proving Quality Through Action

First, the expectation is that there would be a strong reliance on Voice of the Customer feedback gained through the Six Sigma DMAIC methodology and a willingness to use the insights gained to fuel innovation and the customer experience (Kumar, Phillips, & Rupp, 2009; Akbar, Som, Wadood, & Alzaidiyeen, 2010). There is evidence of the Ritz-Carlton doing this, using the knowledge gained from service interactions as a catalyst for future innovation in their strategies globally (Sucic, 2010).

Strategies companies take to prove they have quality also include capturing customer perceptions during critical times when services are delivered. These include measuring customer satisfaction with responsiveness, the effectiveness of service in meeting expectations or unmet needs, and the availability of ongoing support over time (Cochran, 2008). In short, the entire culture of a company needs to reflect a philosophy of service or product quality for these values to permeate every process, strategy, and decisive moment with a guest or customer (Chesbrough, 2011).

For companies that claim to highly value quality, the expectation is that their approach to measuring performance is more focused on customer satisfaction and less on just efficiency or customer churn (Cochran, 2008). Instead of measuring only the number of guests served, the measurement should also focus on the level of satisfaction the experience generated (Ali & Ndubisi, 2011).