Page 130 - The New Gold Standard

PRINCIPLE 2: EMPOWER THROUGH TRUST
that.” In the culture of Ritz-Carlton, which emphasizes Service
Values like “I am empowered to create unique, memorable, and
personal experiences for our guests” and “I own and immedi-
ately resolve guest problems,” the choice to shift responsibility
to someone else is not an option. To further punctuate the au-
tonomy and trust placed in the Ladies and Gentlemen, leader-
ship has created a vehicle that clearly permits staff members to
use their own discretion in service delivery or service recovery.
The approach involves giving each Lady or Gentleman the abil-
ity to exercise judgment in spending up to $2,000 per guest per
day if needed to either enhance the guest experience or to afford
immediate problem resolution. Think about it: Every person,
including a member of housekeeping and an employee working
in the laundry, is empowered to use judgment, without seeking
permission from a supervisor, to spend up to $2,000 on each guest
each day!
This financial authority is the living embodiment of trust
and power conferred to each staff member at Ritz-Carlton. While
some might think that this type of empowerment is both ill ad-
vised and financially irresponsible, leadership at Ritz-Carlton has
determined the trust they place in their Ladies and Gentlemen is
well founded. Rather than being extravagant with the resources
entrusted to them, the Ladies and Gentlemen tend to be very
cautious with their company’s money because leadership has
instilled an understanding of the importance of fiscal responsi-
bility to the lasting success of the company. Through training
and sharing experiences with one another, Ritz-Carlton employ-
ees learn not to trade money for conversation or other solutions.
They first talk to the guest and find out what is needed to make
a situation right. Employees then may use resources to do the
little extra something to exceed the guest’s expectation while
remedying the situation.
The advantage of the $2,000 staff empowerment is that the
Ladies and Gentlemen don’t have to delay a service response by
taking it up to the next level in the organization, and they can

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