The Ritz-Carlton: Managing the mystique
This case describes the business model behind The Ritz-Carlton’s exemplary customer service. It touches on employee recruitment, development and engagement, with particular emphasis on how it treats its employees like “ladies and gentlemen” and how it invests in developing them and providing them with opportunities to reach their full potential. It also describes how the company reinforces the “Gold Standards” – the values and philosophy by which the company operates – on a daily basis with all employees. The company goes to surprising lengths to create legendary service and examples are brought to life by the telling of “Wow Stories” during the “Daily Lineup” at the beginning of each shift. Behind the legendary service is a knowledge management system called Mystique. The Ritz-Carlton pays close attention to collecting performance data – everything from guest preferences to scuff marks in a elevator – and then makes sure it is widely available so that the appropriate action can be taken. The case also describes how The Ritz-Carlton is adapting to changing times and clientele through the introduction of a loyalty program, less scripted staff greetings, more technology in the rooms, etc. The case ends by asking if the Ritz-Carlton’s business model will be able to keep pace with the dramatic changes happening in the market and in doing so, will The Ritz-Carlton’s mystique become endangered.
Discuss the Ritz-Carlton’s business model which comprises a service-oriented culture and a sophisticated knowledge management system. It is the combination of the two that allows the Ritz-Carlton to deliver its legendary service.
Beginning to 2010
Cranfield University
Wharley End Beds MK43 0JR, UK
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Harvard Business School Publishing
60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
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NUCB Business School
1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]
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in Academy of Management Annals July 2023, vol. 17, no. 2, pp. 798-844, https://doi.org/10.5465/annals.2021.0066
Case reference: IMD-7-2403 ©2023
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Case reference: IMD-6-0323 ©2010
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in Academy of Management Annals July 2023, vol. 17, no. 2, pp. 798-844, https://doi.org/10.5465/annals.2021.0066
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Case reference: IMD-7-2403 ©2023
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications