**
Introduction
Joseph Michelli’s “The New Gold Standard” provides an in-depth look into the leadership principles that drive the legendary customer experience of the Ritz-Carlton Hotel Company. Michelli distills these principles into actionable insights, aiming to help other organizations achieve a similar level of excellence in customer relations and workplace culture. The five principles delineated in the book are as follows: Define and Refine, Empower through Trust, It’s Not About You, Deliver Wow!, and Leave a Lasting Footprint.

1. Define and Refine

Summary:
The foundation of the Ritz-Carlton’s service excellence is a well-defined customer service philosophy that is constantly refined. The company’s credo, motto, and 12 service values encapsulate its commitment to providing exceptional experiences. These guiding documents are not static; they evolve based on feedback and changing customer expectations.

Concrete Examples:
– Credo: “We are Ladies and Gentlemen serving Ladies and Gentlemen.”
– Motto: Encapsulates the essence of a respectful and dignified service approach.
– Service Values: Employees memorize and internalize these values to ensure consistency.

Specific Actions:
– Define Core Values: Develop and regularly update a set of core values that reflect your company’s commitment to customer service.
– Training: Implement continuous training programs that reinforce these values.

2. Empower through Trust

Summary:
Empowering employees is central to the Ritz-Carlton’s philosophy. Trust is built through extensive training and an environment where staff are encouraged to make decisions autonomously to enhance the guest experience. The organization supports employees with a $2,000 discretionary fund that can be used to solve guest issues without managerial approval.

Concrete Examples:
– $2,000 Discretionary Fund: Every employee can use up to $2,000 to resolve a guest concern or enhance their experience.
– Daily Line-Ups: Short meetings to update and empower employees with information about guests and hotel operations.

Specific Actions:
– Employee Trust Fund: Create a discretionary fund for employees to use at their discretion to solve customer issues.
– Regular Updates: Hold daily or weekly briefings to keep employees informed and engaged.

3. It’s Not About You

Summary:
The Ritz-Carlton prioritizes understanding and meeting the needs of its guests above all else. This customer-centric approach involves personalizing service and understanding unique preferences to create memorable experiences.

Concrete Examples:
– Guest Preferences: Staff note and record guest preferences for future visits.
– Personalized Service: Instances where staff remember guests’ names, preferences, and previous interactions, fostering a personal connection.

Specific Actions:
– Customer Preference Database: Develop a system to track and record customer preferences.
– Personal Touches: Encourage staff to pay attention to and act on personal details about customers.

4. Deliver Wow!

Summary:
Creating unique, memorable experiences is a key differentiator for Ritz-Carlton. This principle emphasizes exceeding guest expectations by going beyond the ordinary to provide extraordinary service.

Concrete Examples:
– Special Occasions: Customizing celebrations for guest milestones, such as anniversaries or birthdays.
– Surprise and Delight: Instances where guests were surprised with unexpected amenities or services, like finding a favorite book in their room.

Specific Actions:
– Customize Experiences: Develop protocols for identifying guest milestones and customizing their experience accordingly.
– Surprise Gestures: Encourage staff to find opportunities for surprise and delight in everyday interactions.

5. Leave a Lasting Footprint

Summary:
The Ritz-Carlton is committed to being a responsible corporate citizen. This involves sustainability initiatives, community involvement, and ensuring that the company’s impact is positive and lasting.

Concrete Examples:
– Community Footprints Program: Engaging in community service and philanthropic activities.
– Sustainability Initiatives: Implementing green practices, like reducing waste and energy consumption.

Specific Actions:
– Corporate Social Responsibility (CSR): Develop and actively engage in CSR activities that align with company values.
– Sustainability Practices: Implement and encourage sustainable practices within the organization.

Conclusion

Joseph Michelli’s “The New Gold Standard” offers a blueprint for organizations aiming to excel in customer service and workplace culture. By defining and refining core values, empowering employees, prioritizing customer needs, delivering extraordinary experiences, and committing to sustainability, companies can aspire to the high standards set by the Ritz-Carlton Hotel Company. The actionable steps provided alongside each principle ensure that these concepts can be effectively implemented in diverse organizational contexts.