Page 28 - The New Gold Standard

The Ritz-Carlton Experience
were doing things like cutting out mouthwash and changing the
flower arrangements. Horst Schulze was adamant always that we
weren’t going to cut costs and maintain any lasting success. Just
because the economy was bad, it didn’t mean the guest didn’t
want mouthwash. Rather than cutting back, we wanted to be-
come more efficient and even improve our product through to-
tal quality management. If you’re a widget factory and there are
20 steps to make a widget, and you study your business with a
systematic approach to improving quality and you figure out
you can make an improved widget in 18 steps, all the better. Es-
sentially, that was our quest, to not cut corners but to become
more focused and to get the maximum quality through efficient
processes.”
Through a willingness to be routinely audited by representa-
tives from world-class businesses and a commitment to contin-
ually rework quality processes, Ritz-Carlton became the first
company to twice win the prestigious Malcolm Baldrige Na-
tional Quality Award in the service category. Harry S. Hertz,
director of the Baldrige National Quality Program, National In-
stitute of Standards and Technology, puts the significance of the
award in context by explaining: “Over the 19-year history of
the Baldrige program, there have only been four two-time recip-
ients of the Award. In every case [these companies] created
sustainable organizations. Using the Baldrige Criteria, they sig-
nificantly expanded their businesses from their first Award to
the second, they were able to be more prudent in their customer
or market selections, and they strengthened their strategic posi-
tion for the future. They are true role models for the United
States.”
Additionally, leadership has positioned the company to re-
ceive every major award bestowed in the hospitality industry and
by the leading consumer organizations. Ritz-Carlton properties
have consistently been honored with Mobil Five-Star Awards,
AAA Five Diamond Awards, and various forms of Best Hotels
of the World status from Condé Nast Traveler and Travel &

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