08/13/2025
Most companies obsess over cutting costs.
Ritz-Carlton obsessed over creating unforgettable experiences.
In the 1980s, co-founder Horst Schulze gave every employee the authority to spend up to $2,000 per guest, per incident without asking a manager.
On paper, it sounds risky. In reality, it was genius.
Why?
Because when you trust your people, they stop acting like employees… and start acting like owners.
This rule wasn’t about the money, it was about speed, empowerment, and emotional impact.
No bureaucracy. No “let me check with my boss.”
Just immediate, memorable solutions.
And here’s the kicker:
Most employees never spent anywhere close to $2,000.
But they knew they could, and that confidence created bold, proactive service that built unshakable loyalty.
If you’re an entrepreneur, here’s the takeaway:
✅Trust costs less than control. Give your team authority, not just instructions.
✅Service is marketing. A wow moment becomes a story your customers will tell for years, free advertising at its best.
✅Culture beats policy. Rules can’t inspire, but belief in your people can transform them.
The $2,000 wasn’t an expense. It was an investment in lifetime customers.
When you lead with trust, your team will protect your brand like it’s their own.
That’s how you turn customers into fans… and fans into evangelists.
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