FLY ME HIGH By: Apoorva Arindam Tanmay Subhanu Mousumi Jagswaroop
Lufthansa’s record loss of DM 730M in 1992. No Capital for the enlargement of organisation. Banks denied to give Loans. Liquidation Crisis. The Gulf War.
There was a necessity for drastic action. Awareness that there was a massive pressure to act. Meeting by Jurgen Weber entitled CRISIS MANAGEMENT MEETING. Learning about interdepartmental cooperation Non Bureaucratic problem solving. Setting of ambitious goals.
• Repeat CMM workshop several times.• Making managers live through the process of recognising the threats and feeling the urgency rather than discussing strategy.• Emotional mobilisation.• Setting of PROGRAM 93. Setting of 131 projects. Cut down of Non Personal Cost. Downsized fleet. Town meetings in various departments.• Monitoring teams who was set up, viz REDEVELOPMENT CONTROLLING.• Implementation of PROGRAM 93 by OPS Team.
In 1993 70% of programm 93 was successful. THE CRANE HAS LIFT OFF AGAIN
Superficial Recovery couldn’t guarantee long term success. Division into five departmets. Finance Personnel Maintenance Sales Marketing IT
LAGS Involvement of Top Level Managers in operational matters. Slow decision making process aka Fragmented Decision making. Lack of accountability. Lack of transparency. Insufficient response to the market.
SOLUTIONS Divisions of the company into federative groups of interdependent smaller subsidaries. LH Cargo AG LH Technik AG LH System GmBH LSG Sky Chefs City Line Condor Redefined tasks and responsibilities of executive board. Strengthing of Strategic focus. Weightage to Core Business Of Passenger Service. Privatisation in 1997. Strategic Cost Saving.
GROWTH THROGH PARTNERSHIP STRATEGY. Introduction of Star Alliance. Merging of Lufthansa with Star Alliance in 1999. Ground Breaking strategies including Eye in the Global market Improved Marketing and Sales Service and Product Development Enhanced Information technology
Evolution of an Aviation Group. Development of each and every sector into Global brand with a local outlook Internationalization of Relationship Radical improvements in Punctuality , Luggage safety and technical Reliability Development of LUFTANSA School of Business to create world class leaders
STRENGHTSEmerging as a global brandTechnical ReliabilityImproved HospitalityEmotional MobilizationProvide space for Reflection and DialogueIntensive personal learning
WeaknessNo division of jobsSlow decision makersInsufficient responsiveness to changingglobal trendsMONOLITHIC Organizational Structure
OpportunitiesSKY IS THE LIMIT – as far as the Lufthansa is Concerned the global market is at the StakeInclusion of STAR ALLIANCE – Lufthansa improved under the Flag as the Union proved to cater to the needs of the Public and set a benchmark
Setting a common Goal throughout the organization is Extremely Important Program 93 and 15 were a success , Steps should be taken to introduce more Programs for overall development Training And Development for Employees for Emotional Mobilization LOW COST AIRFARE to cater to the middle class and thus increase revenue Development of other Business