How Ritz Carlton Measures Success
There was a recent article in Forbes where the CEO of Ritz Carlton was interviewed. The Ritz Carlton is and unparalleled luxury brand. It has done this my rigorously adhering to its own standards. Its unique culture starts with the motto “We are ladies and gentlemen serving ladies and gentlemen”. It has 38000 employees throughout 73 properties in 24 countries. To learn more of the success of the Ritz Carlton I refer you to and excellent book by Dr Joseph Michelli – The New Gold Standard.
In this article in Forbes the CEO was asked “How do you measure success?. His answer was interesting and there are lessons for many businesses in it.
They measure success from the customer side and from the employee side.
With respect to the customer side they employee Gallup do to phone interview, asking two types of questions :- functional and emotional. On the function side they ask : How was the meal, Was the foot hot?, How was your room service?, Was your room clean. Through careful analysis they have determine and indicator question – that is a question that if answered 5 out of 5 then all the other questions will be answered positively. The functional indicator is “The room was clean”. On the emotional side the indicator is “I had a sense of well being”. They know that they have to pass the functional question before the guest will focus on the emotional question.
So what functional and emotional questions are you asking your clients / customers? What is the indicator question that will reveal the customers opinions?
In respect to the employees the most important metric they measure is “voluntary turnover”. This is an indicator of talent acquisition and training. They have very precise standards in who they hire and then spend a significant effort on training of the people.
Ritz Carlton realise that it is only with enthusiatic team that you will have loyal committed clients. Therefore they are measuring success from both aspect. Also they are measuring the emotional responses as well.
How do you measure success in your business?
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