The Power of Respect: How Ritz-Carlton Redefined Hospitality

When Horst Schulze, co-founder and later CEO of Ritz-Carlton, wanted to instill a culture friendly to employees (and of course to guests), he faced several difficulties.

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The source of the problem was not the employees, who embraced this practice since their early days in the company, but the managers, who were reluctant to the new corporate motto. Many asked him what he really meant when he said "we are ladies and gentlemen serving ladies and gentlemen," unable to understand that staff also have rights and should be treated with respect and dignity—unless they don't deserve it, of course.

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He cites an incident when the company opened its first hotel in Hong Kong, explaining this philosophy to the room service department. Addressing the manager, he points out the following: "Do you understand that they are ladies and gentlemen, right? You are the manager, you help them succeed, and they will tell you their opinion. Their opinion is always welcome."

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Later, the manager approached him and said, "I didn't come here to listen to the opinions of the staff. I'm the manager. For this reason, I submit my resignation."

Ultimately, it was turned out that the employee turnover rate at Ritz-Carlton was incredibly low compared to industry standards. Employees didn't leave, even though they weren't the highest paid in the market.


John Protopapadakis

Icon Name John Protopapadakis is a marketing and customer service/complaint management expert. He has been an author, a professor, a consultant and a seminar instructor. As a keynote speaker his speeches are content-rich and motivational. facebook twitter linkedin rss

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