1. MGMT E-6020
Session 11

2. Ritz Carlton Case – Key Takeaways
In businesses that depend on human interaction for success, the types of beliefs and values instilled by organizational leaders are crucial.
“Ladies and gentlemen serving ladies and gentlemen”
Engage and empower employees

3. Ritz Carlton Case – Key Takeaways
There is a financial benefit to RC to spend additional time training employees if it allows the hotel to open at a higher occupancy rate
Changes in the competitive landscape may necessitate changes to the proven “Seven Day Countdown” opening process

4. The links in the service profit chain
Shows the relationships between
Profitability
customer loyalty
employee satisfaction, loyalty and productivity
Says:
Profit and growth are stimulated primarily by customer loyalty.
Customer loyalty is a direct result of customer satisfaction
Customer satisfaction is largely influenced by the value of services provided to customers
Value is crated by satisfied, loyal, and productive employees.
Employee satisfaction is created by high-quality support and policies that enable employees to deliver results to customers.
Source: HBR “Putting the Service-Profit Chain to Work,” by Heskett et al.

5. Service Leadership Characteristics
Being driven by a set of core values
Seeing quality of service as the foundation for competing
Recognizing the key role of employees in delivering service
Giving priority to communicating with them
Having enthusiasm for the business in which the firm is engaged.
See notes.

6. Bright Horizons
Employee turnover example

7. Dr. Mahalee Case Discussion
Putting yourself in Dr. Mahalee’s shoes, how do you feel (both physically and mentally) after speaking with the receptionist at Global? What are your priorities right now?
As Sophia Costa, what action would you take in your first five minutes with Mahalee?

8. What is a successful outcome for this meeting?
For Dr. Mahalee?
For Sophia Costa?

9. 1. In Mahalee’s Shoes: Mentally: Physically:
Embarrassed or annoyed with himself for arriving late?
Irritated that Kim is not there to meet with him?
Concerned about making it to his grandson’s concert in 75 minutes?
Physically:
Flustered? Tired?
In pain from arthritis?
Hungry and thirsty?

10. 2. Sophia Costa’s goals for the first five minutes
Establish rapport and learn about his background
Apologize for Kim’s absence
Establish how much time Mahalee has available
Make him comfortable (beverage service etc.)
Mahalee has a PhD from the London School of Economics and has been a professor of international trade. He is sophisticated analytically. Probably well informed.
All business?
Or make him comfortable?
Tailesia culture?

11. Advice for Sophia beyond first 5 minutes
Encourage Mahalee to talk about his financial needs, building her credibility and noting areas of her firm’s expertise as opportunity allows in the conversation
Employee buyout
Estate planning
Learn about possible competitors Mahalee is considering and his relationship (or lack of) with Kim