A tqm-case-study-in-service-sector british airways

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  • 07/20/10 TQM case study
  • 07/20/10 TQM case study
  • TQM case study 07/20/10
  • A tqm-case-study-in-service-sector british airways

    1. 1. 07/20/10 BRITISH AIRWAYS- 20071538 20071538 British Airways’ new route to customer service A TQM case study in service sector
    2. 2. BRITISH AIRWAYS <ul><li>Every 2min a BA flight takes off </li></ul><ul><li>Working 24×7 </li></ul><ul><li>4 th largest airliner in the business </li></ul><ul><li>Fiercely competing Lufthansa, Singapore Airlines, American Airlines </li></ul><ul><li>25 million passengers </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    3. 3. CHANGE IS GOOD <ul><li>Shoddy airline , indifferent to passengers </li></ul><ul><li>World class, financially well, a trendsetter indeed! </li></ul><ul><li>TQM – the route 2 transformation </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    4. 4. scenario in BA (1990s) <ul><li>Under a crisis </li></ul><ul><li>Previously a nationalized corporation </li></ul><ul><li>Shedding jobs worldwide to stop making loss </li></ul><ul><li>Merging of BOAC & BEA </li></ul><ul><li>Restriction of operating routes </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    5. 5. public to private <ul><li>Prepared itself for privatization </li></ul><ul><li>Regained its financial wealth </li></ul><ul><li>After £5 million worth advertisement, sold itself </li></ul><ul><li>Began to repair and restructure </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    6. 6. Start of the TQM implementation <ul><ul><li>Leaner to fitter </li></ul></ul><ul><ul><li>‘ PUTTING PEOPLE FIRST’ program by Collin Marshall </li></ul></ul><ul><ul><li>Customer Employees </li></ul></ul><ul><ul><li>30,000 employees </li></ul></ul><ul><ul><li>Behavior breeds behavior </li></ul></ul><ul><ul><li>employees </li></ul></ul>07/20/10 BRITISH AIRWAYS- 20071538
    7. 7. know your work place better <ul><li>‘ CUSTOMER FIRST’ team program </li></ul><ul><li>In effective attitude of employees </li></ul><ul><li>Employees treated as internal customers </li></ul><ul><li>‘ We fly to serve’ motto </li></ul><ul><li>‘ A Day in the Life’ </li></ul><ul><li>‘ gold in the hole’, ‘engineering excellence’, ‘money matters’ </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    8. 8. organizational & cultural change <ul><li>Pattern Breaking </li></ul><ul><li>Experimenting processes </li></ul><ul><li>Visioning </li></ul><ul><li>Bonding </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    9. 9. pattern breaking stage <ul><li>‘ Demanning’ from 59,000 to 29,000 </li></ul><ul><li>Dismissal letters to opposing managers </li></ul><ul><li>New, new, everywhere new </li></ul><ul><li>_______________________________________ </li></ul><ul><li>Experimenting & visioning stage difficulties </li></ul><ul><li>Pathetic business attitude, absence of good managers, underachieving education system </li></ul><ul><li>Effective motivation- hope of gain not threat of being fired from job </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    10. 10. deep into cultural change <ul><li>Senior & middle level management </li></ul><ul><li>‘ Leading the service business’ </li></ul><ul><li>Offsite meetings </li></ul><ul><li>Recording feedback from the down level management </li></ul><ul><li>Participative management style </li></ul><ul><li>Bureaucratic, militaristic service oriented , market driven. </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    11. 11. act as you preach <ul><li>BA offered MBA degree! to its employees </li></ul><ul><li>Established permanent training centre </li></ul><ul><li>Created emotional support </li></ul><ul><li>Organizational hierarchy was flattened </li></ul><ul><li>profit sharing bonus schemes </li></ul><ul><li>Performance appraisal system introduced </li></ul><ul><li>Performance based compensation system </li></ul><ul><li>data driven feedback system on management practices </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    12. 12. treat employees as potential customers <ul><li>Introduction of ‘world traveler’ to economy class </li></ul><ul><li>Advertising it to employees before to customers </li></ul><ul><li>‘ Internal commitment’ </li></ul><ul><li>‘ Internal marketing’ </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    13. 13. advertise yourself <ul><li>Apart from usual ad campaign, brand product theme was introduced </li></ul><ul><li>Club world , first class , super shuttle , leisure, world traveler(economy class) </li></ul><ul><li>Modification of seats, accessories , catering services </li></ul><ul><li>A single ad costs £1 million containing emotional dramatic exp </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    14. 14. <ul><li>Food served has a power full effect on the memory of a flight </li></ul><ul><li>Analyzing different aviation routes, adjusting food recipes in accordance with different geographical places </li></ul><ul><li>Gained competitive edge </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    15. 15. show down – a moment to celebrate <ul><li>13 % increase in profit </li></ul><ul><li>Another 12% increase in each subsequent yrs </li></ul><ul><li>Became fourth largest airliner </li></ul><ul><li>160 destinations, 90 countries, 25 US cities </li></ul><ul><li>41 % share in North Atlantic market </li></ul><ul><li>235 aircrafts, advanced fleet strength than competitors </li></ul><ul><li>Enormous customer care programs </li></ul>07/20/10 BRITISH AIRWAYS- 20071538
    16. 16. REFERENCES <ul><li>John Bank, The Essence of TQM, ©Prentice-Hall International (UK) ,2002. </li></ul>07/20/10 BRITISH AIRWAYS- 20071538

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