Contrary to popular belief, Six Sigma is not the domain of manufacturers alone. The service industry is filled with shining examples of companies that have adapted its principles to meet their needs and used Six Sigma to transform themselves.
The Ritz-Carlton strives to make a guest’s stay an unforgettable one.
The Ritz-Carlton Hotel Company operates luxury hotels and resorts that are famous for their stunning views, exquisite service and lavish accommodations. The company has used Six Sigma principles to give its guests an experience they will cherish for a lifetime.
Defects are just as unwelcome at The Ritz-Carlton as they are in a company that makes jet engines or pharmaceuticals, and their management is just as serious about eliminating them. The Ritz-Carlton’s commitment to quality seems to be paying off, as it has now won two Malcolm Baldrige National Quality Awards.
How a Luxury Hotel Chain Applied Six Sigma
In its quest to increase quality and eliminate defects, Ritz-Carlton created an in-house quality program called Mr. BIV. This program trains hotel staff to identify and report factors that detract from a guest’s experience. Each letter in the title stands for a quality problem:
- Mistakes
- Rework
- Breakdowns
- Inefficiencies
- Variations in the work processes
Keep Asking Why
Ritz-Carlton makes the most out of the Mr. BIV problem identification method by following up with the Five Whys. This wonderfully simple Six Sigma tool quickly identifies the source of the problem. The Five Whys is designed to get answers to difficult questions the same way that a young child does by repeatedly asking why. Stating the problem, asking why it happened and examining the answer with additional whys helps go beyond the symptoms of a problem and pinpoint its root cause.
Solve Problems, Don’t Point Fingers
Bringing a problem into the spotlight is only half the battle, once the Ritz-Carlton team is aware of a defect it must then work to correct it. This is a delicate process because it can easily break down into pointing fingers, passing the buck and playing the blame game.
Companies like Ritz-Carlton stand apart because they have created a culture that encourages the open discussion and resolution of quality problems. According to Diana Oreck, Vice president of the Ritz-Carlton Leadership Center, “We’re grateful for the chance to improve our processes. It’s important for staff to report breakdowns so we can build solutions that remove them from our hotels, not just sweep them under the rug.”
The Ritz-Carlton leadership team makes reporting problems a required part of its employees’ job description. This helps create a safe climate in which breakdowns and inefficiencies can be openly discussed. Ritz-Carlton has made talking about mistakes a point of pride. “Mr. BIV has brought us to the point where we honor defects.” Oreck says. “Mr. BIV takes the stigma out of complaints and helps us reliably track defects to make the necessary adjustments.”
All companies want to eliminate defects from their products or services. Many companies have programs to identify defects and eliminate them at their source. However, only a few companies like Ritz-Carlton have succeeded in creating a culture that works in harmony with their efforts to reduce defects. This culture helps provide the world-class service that made The Ritz-Carlton famous.
