Reference no: EM132406284

Case: Ritz-Carlton Hotels

There is a great line from a Dilbert cartoon suggesting that you do not need a motivation program to get people to eat a chocolate chip cookie-and Dilbert is right. That is, there is no great magic in motivating highly paid people to do what they love, or to get great athletes to play hard in the championship game. The real test of motivation is getting ordinary people to provide extraordinary performance, and in the absence of any great pay or job excitement. Examples of exactly that phenomenon occur daily at Ritz-Carlton hotels.

Known worldwide for consistently delivering an excellent hotel experience, Ritz-Carlton managers have the difficult challenge of motivating their staff-ordinary people paid a relatively modest wage-to consistently deliver extraordinary levels of customer service. Among the strategies they employ are the following.

Sharing "wow stories." Every day, employees of every department in every Ritz-Carlton hotel around the world gather for a 15-minute staff meeting where they share "wow stories." These are true stories of employee heroics that go above and beyond conventional customer service expectations. In one, a hotel chef in Bali found special eggs and milk for a guest with food allergies in a small grocery store in another country and had them flown to the hotel. In another, a hotel's laundry service failed to remove a stain on a guest's suit before the guest left. The hotel manager flew to the guest's house and personally delivered a reimbursement check for the cost of the suit. Telling stories in these pep talks accomplishes two goals. First, it reinforces the high standards of customer service the hotel strives to provide its guests. But most importantly, it gives employees instant "local fame." Employees want to be recognized in front of their peers, and giving them public recognition is a powerful motivator.

Demonstrating passion. Moods are contagious. Managers who walk around with smiles on their faces and who demonstrate passion for their jobs have an uplifting effect on others. Enthusiasm starts at the top. For example, at a recent staff meeting the supervisor was dressed impeccably in a blue suit, white shirt, purple tie, and shined black shoes. His wardrobe communicated respect for his job and his staff. "Good morning, everyone," he said enthusiastically. The housekeepers returned an energetic greeting. This manager was all smiles and showed respect for his team. He said they returned his commitment through their hard work.

1. Why do employees at Ritz-Carlton, who are not paid significantly more than people at other retail establishments, work so hard to provide remarkable customer service?

2. As a manager, what lessons can you draw from the Ritz-Carlton example regarding how to get people to go the extra mile?

3. Are those that go the extra mile generally paid the highest, and do such firms have the highest labor costs? If it is not just about the money, what is also at stake?