Hello, please check out the paper. Thank you.

Running head: BOOK REPORT

1

Book Report
The New Gold Standard: 5 Leadership Principles for Creating a Legendary Customer Experience
Courtesy of the Ritz-Carlton Hotel Company
Student’s Name
Institution Affiliation
Date

BOOK REPORT

2
Book Report
Introduction

Joseph Michelli’s “The New Gold Standard: 5 Leadership Principles for Creating a
Legendary Customer Experience Courtesy of the Ritz-Carlton Hotel Company” attempts to
dissect and analyze the principles tied to the success of Ritz-Carlton Hotel Co. The author's
approach in the evaluation provides crucial information about the strides made by the hotel,
establishing a reliable model upon which other businesses can draw knowledge and advance
independently. Fundamentally, the book aims at equipping interested persons with the raw
strategy of achieving high levels of quality and customer loyalty, identified as the new “Gold
Standard” or “The Credo.” The underlined concept is that the company’s success and its
recognition lie with the employees, the individuals responsible for administering extraordinary
services to customers on an everyday basis.
Summary of Content
Undeniably, the process of acquiring success is complex and is dependent on a range of
both internal and external factors. However, Michelli makes conscious observations for a
formulation of the success recipe, with all the underlying ingredients being significant essential
in the pursuit of success (2008). He considers the strategy he identifies as applicable across a
broad scope, covering all industries and geographic localities. He sees them as crucial pillars
important in the strengthening of businesses, recognizing employees, customers, and other
stakeholders that contribute to the achievement of business success (Michelli, 2008).
Consequently, he identifies five primary principles applied in the management of Ritz-Carlton by
the different leaders who have taken a role in leading the company.

BOOK REPORT

3

The first principle revolves around defining and redefining the business core identity and
its operations. Here, companies have to deploy their core identity and their corporate culture
strategically and in a way that people understand and believe in. The author points out that the
elements in the define-redefine philosophy depict a lengthy (more than a century) operational
period of Ritz-Carlton traditions. For that reason, some of the aspects may seem outdated,
especially considering the current advanced world. Nonetheless, the goal is identifying the
relevant and practical concepts that can fit in today’s businesses, thus establishing the new gold
standards. One outstanding concept is the ideology of identifying employees as serving ladies
and gentlemen (Michelli, 2008). Although it may seem archaic, it is indeed an empowering
element that bores high significance in business success. The Credo, on the other hand, dictates
three fundamental steps that include a warm reception of guests, anticipation and fulfillment of
the clients’ needs, and a warm farewell upon completion of the service delivery (Michelli, 2008).
The author affirms that Ritz-Carlton also applies the steps when it comes to their employees
from the time they become staff members to the time they have to leave the company.
The second principle regards empowering employees through trust. Fundamentally, RitzCarlton operations are highly depended on treating the employees well in such a way that they
respond appropriately and effectively. As identified by Michelli, the process of empowering and
entrusting employees begins at the hiring stage (2008). The company selects the right ladies and
gentlemen who not only qualify for the job but also share in the ideals and passions of the service
industry. Apart from that, they conduct intensive evaluations of the new hires such that at the end
of the process, the newly hired individuals understand the company’s trust in them. For that
reason, they work towards meeting the expectations, and this raises the reputation and standards
of the company (Michelli, 2008). Additionally, an orientation of th...