Problem Resolution - Culture Responsibility-Richard Fain & Michael Bayley

[TTraub1250]

As we read the posts by the cruisers, we read about many problems that can occur in this industry and then some problems that should not occur.  Problems occur because of Standard Operating & Safety procedures that are well thought out with high standards ( critical thinking applied ) and with employees not following the established SO&SP !  Companies that have a culture of properly training & empowering employees to deal with problems with an independent quality system in place to ensure employees are following SO&SP !  Independent means the operations people are audited to the standards set.  Parents encourage their kids to sign up for the "Disney Career Start Program" due to the training, discipline and strict rules kids must follow. This Disney program is the gold standard and yes a certain number of kids wash out, but even the wash outs learn this high standard. 

 

It is the responsibility of Richard Fain & Michael Bayley to establish that culture with high standards and to ensure it  is maintained, is continuously improved and people are held accountable.  This higher level of culture & training does cost a little more ( investment ), yet the payback is almost immediate with the ROI at 5X-10X the investment $. Most world class companies will have a written marketing strategy.  Does RCCL have a Quality Strategy which includes customer service ? I have read their quality statement, but that is not a full blown strategy.   RCCL has what they call the " Royal Way" which employees are trained in, yet in the day to day operations on board ships we experience poor customer problem resolution.  Not only is the problem poorly resolved, the communications to the customer are very lacking on several levels. The communications on problems back to the customer are reported to be lacking in details of what is being done (comfort level to the customer) and in a number of these reports, a lack of empathy on what the customer went through.   I understand working with the public there are those that try to "game" the system and get free benefits, reduced rates, and can scream " the sky is falling" when it isn't.  

 

As long time cruisers we understand that RCCL reads these posts and the more we report these "true problems"  and "poor quality service", then the company will take action, because these incident / problem posts directly affect the bookings on a cruise line.  As stockholders we know there is competition and our investment view is long term.  Just comparing yourself against other cruise company competition is not enough.   Richard Fain & Michael Bayley also are aware that failure in the execution of the various strategies including culture, can result in them being asked to step down.  We have seen a number of CEOs that did not pay attention or did not have the " Chief Quality Officer" reporting to them, so they did not really know what was going on at the operations level.  

 

I called the corporate offices also to see what was being done about a serious problem I experienced,  and reported several ways. The young lady apologized, offered my a free meal at Chops, and did not want to investigate or return my call after the problem was thoroughly investigated. At the ship level they did not really want to admit to problem or to ensure there is not a systemic problem.   I did not take the free meal, because that was not what I was after, and she still did not understand, it seemed her job was to just "cover it up / make it go away".  Not the culture you want for the long term for continuous improvement ! 

[John&LaLa]

You will have better luck shaming Royal on FB.

[NewarkCC]

Its similar to defending against a civil lawsuit.....who cares if you are guilty or innocent, a payoff is cheaper than addressing the problem.  Unfortunate.

[LBumb]

Hard to reply due to vagueness

some people’s serious problem is trying to find a table at WJ

 

[cruisinfanatic]

58 minutes ago, TTraub1250 said:

I called the corporate offices also to see what was being done about a serious problem I experienced,  and reported several ways. The young lady apologized, offered my a free meal at Chops, and did not want to investigate or return my call after the problem was thoroughly investigated. At the ship level they did not really want to admit to problem or to ensure there is not a systemic problem.   I did not take the free meal, because that was not what I was after, and she still did not understand, it seemed her job was to just "cover it up / make it go away".  Not the culture you want for the long term for continuous improvement ! 

Apparently, you didn't get the answer you wanted

Edited March 29, 2019 by cruisinfanatic

[reallyitsmema]

1 hour ago, TTraub1250 said:

As we read the posts by the cruisers, we read about many problems that can occur in this industry and then some problems that should not occur.  Problems occur because of Standard Operating & Safety procedures that are well thought out with high standards ( critical thinking applied ) and with employees not following the established SO&SP !  Companies that have a culture of properly training & empowering employees to deal with problems with an independent quality system in place to ensure employees are following SO&SP !  Independent means the operations people are audited to the standards set.  Parents encourage their kids to sign up for the "Disney Career Start Program" due to the training, discipline and strict rules kids must follow. This Disney program is the gold standard and yes a certain number of kids wash out, but even the wash outs learn this high standard. 

 

It is the responsibility of Richard Fain & Michael Bayley to establish that culture with high standards and to ensure it  is maintained, is continuously improved and people are held accountable.  This higher level of culture & training does cost a little more ( investment ), yet the payback is almost immediate with the ROI at 5X-10X the investment $. Most world class companies will have a written marketing strategy.  Does RCCL have a Quality Strategy which includes customer service ? I have read their quality statement, but that is not a full blown strategy.   RCCL has what they call the " Royal Way" which employees are trained in, yet in the day to day operations on board ships we experience poor customer problem resolution.  Not only is the problem poorly resolved, the communications to the customer are very lacking on several levels. The communications on problems back to the customer are reported to be lacking in details of what is being done (comfort level to the customer) and in a number of these reports, a lack of empathy on what the customer went through.   I understand working with the public there are those that try to "game" the system and get free benefits, reduced rates, and can scream " the sky is falling" when it isn't.  

 

As long time cruisers we understand that RCCL reads these posts and the more we report these "true problems"  and "poor quality service", then the company will take action, because these incident / problem posts directly affect the bookings on a cruise line.  As stockholders we know there is competition and our investment view is long term.  Just comparing yourself against other cruise company competition is not enough.   Richard Fain & Michael Bayley also are aware that failure in the execution of the various strategies including culture, can result in them being asked to step down.  We have seen a number of CEOs that did not pay attention or did not have the " Chief Quality Officer" reporting to them, so they did not really know what was going on at the operations level.  

 

I called the corporate offices also to see what was being done about a serious problem I experienced,  and reported several ways. The young lady apologized, offered my a free meal at Chops, and did not want to investigate or return my call after the problem was thoroughly investigated. At the ship level they did not really want to admit to problem or to ensure there is not a systemic problem.   I did not take the free meal, because that was not what I was after, and she still did not understand, it seemed her job was to just "cover it up / make it go away".  Not the culture you want for the long term for continuous improvement ! 

 

Is this still all about the $10 tip you say a waiter added to your bill at Chops?  You got the money credited back, why waste so much energy on $10?

[TTraub1250]

The big picture here is the stock price... currently hovering $113 to $114 and it was up over $130 at this level of the DJIA. 

Multiple the delta ( $130 - $114) times the number of shares held, and $10 isn't even noise.  Before someone tries to educate me that there are many factors that make up the stock price, one that possible we as stockholders can effect is "Quality of Service" ! 

[ticketsunlimited]

My only advice to you to solve your problem is "Buy on the dip"

[orville99]

I often chuckle at posters who throw six sigma terms around expecting that there is some mystical superiority that is achieved by companies that chase the six sigma mantra. The reality is that continuous improvement is a myth, and the majority of companies that pursue six sigma at the expense of fiscal practicality end up in bankruptcy court seeking protection from their creditors. Six sigma (invented by GE, and evangelized by Jack Welch) isn't really working out all that well for them lately; GM went bankrupt  after achieving their certification. Kodak disappeared after earning theirs. As Warren Buffett stated yesterday in an interview on CNBC, corporations that need to do everything right fail far more often than companies that make mistakes.

 

BTW, I bought RCL stock when it was at $5/share, and sold it when it hit $100/share - all the while they were making "mistakes" in spades.

Edited March 29, 2019 by orville99

[ONECRUISER]

1 hour ago, reallyitsmema said:

 

Is this still all about the $10 tip you say a waiter added to your bill at Chops?  You got the money credited back, why waste so much energy on $10?

Thank you for explaining....

[TTraub1250]

Orville99:  Six Sigma was invented at Motorola in the 1980's. This statistical tool builds on Dr. Deming's work in statistical quality control.  Continuous improvement is part of the Toyota quality systems of the 60's & 70's.  So please do not spread fake news.  And like the companies you mentioned, they lost sight of the customer and market right and made mistakes in spades?  

 

TicketsUnlimited:  Although I did not buy at $5, like orville claims,  I did buy at $66 and like all stocks,  looking for continuous up over the long term.  Looking forward improved customer service & comfort level of customers will ensure a greater market share, which will help mitigate with the possible over capacity in the next few years.  

 

 

Edited March 29, 2019 by TTraub1250

[Loonbeam]

Let me get this straight.  Somehow a waiter adding a $10 tip has something to do with ship safety, and because they don't monitor that the ship is somehow unsafe because of cultural issues?

 

I have no idea what the OP expected to happen.  They got comped a meal.  Do they want evidence the waiter was tossed overboard and left to swim home for his or her transgression?

 

Bluntly if something like this came in repeatedly over multiple channels for a $10 issue?  I'd just close the customer's account and tell them to go find another provider.  Not worth the effort involved.

 

[orville99]

17 minutes ago, TTraub1250 said:

Orville99:  Six Sigma was invented at Motorola in the 1980's. This statistical tool builds on Dr. Deming's work in statistical quality control.  Continuous improvement is part of the Toyota quality systems of the 60's & 70's.  So please do not spread fake news.  And like the companies you mentioned, they lost sight of the customer and market right and made mistakes in spades?  

 

TicketsUnlimited:  Although I did not buy at $5, like orville claims,  I did buy at $66 and like all stocks,  looking for continuous up over the long term.  Looking forward improved customer service & comfort level of customers will ensure a greater market share, which will help mitigate with the possible over capacity in the next few years.  

 

 

We worked with W.E Deming towards the end of his life, and later consulted with Michael Hammer and  C. K. Prahalad after Deming's death in the early 90's to develop practicable adaptations of their work for our corporation. While Smith's work at Motorola may have begun the six sigma and ISO 9000-9001 movement, it was Deming, Hammer, and Prahalad that made the connection between TQM theory and practical reality. BTW, we spent a lot of time at Motorola's Arizona facilities being debriefed on both their successes and failures with the process (which they ultimately abandoned).

[TTraub1250]

A discussion like this is why I post to hear about other people's education and experiences.  I was lucky to go to Joe Juran's Quality Institute. Deming spoke in Rochester in the early 1980's to Xerox and I got to hear his presentation !  He was true to form and chewed out management !  Where have all the quality gurus gone ?   Seems like we are slipping back.  Thank you for sharing.   

[AL3XCruise]

1 hour ago, orville99 said:

I often chuckle at posters who throw six sigma terms around expecting that there is some mystical superiority that is achieved by companies that chase the six sigma mantra.

 

There are examples of good and bad implementations for sure, and six sigma at the expense of common sense is a big problem in some companies.  Data without understanding how it really relates to a business is useless. 

 

I'm sure we could trade examples of success and failures, but I think we'd both agree that customer service is one area where true six sigma falls flat.  You can't appease anyone with a process, and what it takes to make a customer happy sometimes isn't in the best interest of the company. 

 

I'm pretty sure RCI is well aware that mistakes such as the OP experienced happen.  However, the vast majority of cruisers are happy with the standard restitution.  The cost to eliminate those mistakes would dramatically exceed the cost of free vouchers, extra OBC, and the occasional lost customer.  Lets face it, just as you can use data to improve customer service, you can use it to determine the point of maximum efficiency. 

 

3 hours ago, TTraub1250 said:

This higher level of culture & training does cost a little more ( investment ), yet the payback is almost immediate with the ROI at 5X-10X the investment $. Most world class companies will have a written marketing strategy. 

 

So because you haven't seen internal documents, you are assuming they don't exist?  And what is your basis on ROI other than observations made in other industries (and likely by individuals motivated to make TQM efforts look good).  I'm not saying the concepts are bad, but improvement that doesn't provide a return is a waste of resources.  Unless someone here has access to detailed customer data from RCI, I think they are in a better position than we are to determine what is best long term. 

 

Long term, if they are wrong, well... then they will need to deal with that.  And if they are right, we need to deal with it or find some other place to spend our vacation dollars.

 

[A&L_Ont]

2 hours ago, reallyitsmema said:

 

Is this still all about the $10 tip you say a waiter added to your bill at Chops?  You got the money credited back, why waste so much energy on $10?

 

Thanks for the explanation.  Wish the OP had explained it in their first post. 

 

 

[ShillyShally]

18 minutes ago, A&L_Ont said:

 

Thanks for the explanation.  Wish the OP had explained it in their first post. 

 

 

Exactly, though I likely wouldn't have read all that - I was certain it was a more egregious slight but I know we all have our own lines to be crossed!

[John&LaLa]

3 hours ago, TTraub1250 said:

Orville99:  Six Sigma was invented at Motorola in the 1980's. This statistical tool builds on Dr. Deming's work in statistical quality control.  Continuous improvement is part of the Toyota quality systems of the 60's & 70's.  So please do not spread fake news.  And like the companies you mentioned, they lost sight of the customer and market right and made mistakes in spades?  

 

TicketsUnlimited:  Although I did not buy at $5, like orville claims,  I did buy at $66 and like all stocks,  looking for continuous up over the long term.  Looking forward improved customer service & comfort level of customers will ensure a greater market share, which will help mitigate with the possible over capacity in the next few years.  

 

 

 

How's Motorola doing these days.🤔

[John&LaLa]

1 hour ago, ShillyShally said:

Exactly, though I likely wouldn't have read all that - I was certain it was a more egregious slight but I know we all have our own lines to be crossed!

 

I find it fascinating how we champion some OP's and their wild stories, and vilify others. 

[LMaxwell]

You are expecting something from Michael Bayley that he was not built for 

[ShillyShally]

27 minutes ago, John&LaLa said:

 

I find it fascinating how we champion some OP's and their wild stories, and vilify others. 

I think it's often related to what we wouldn't sweat if it happened to us and some that would make us think twice or follow through on.  

[BillOh]

5 hours ago, LBumb said:

Hard to reply due to vagueness

some people’s serious problem is trying to find a table at WJ

 

That is usually my biggest problem on a cruise. I don't classify it as serious though. 🖖

[AL3XCruise]

3 hours ago, ShillyShally said:

Exactly, though I likely wouldn't have read all that - I was certain it was a more egregious slight but I know we all have our own lines to be crossed!

 

The fact a brief thesis on quality management was written without discussion of the incident leads me to believe that the OP realized they wouldn't get much sympathy for the actual issue. 

[ShillyShally]

50 minutes ago, AL3XCruise said:

 

The fact a brief thesis on quality management was written without discussion of the incident leads me to believe that the OP realized they wouldn't get much sympathy for the actual issue. 

Not to mention, not every method fits every organization - there is no one size fits all in business - too many variables.

[ggtjr]

8 hours ago, LBumb said:

Hard to reply due to vagueness

some people’s serious problem is trying to find a table at WJ

 

Agreed, not sure what the OP is trying to say.