Brief introduction to change management at British Airways by Edinburgh University Undergraduates. Presentation briefly covers history of the company and applies introductory concepts to major change events within the firm, concluding with points of interest for further research.
The presentation attempts to analyse UK airline industry and the situation in which British Airways, the flagship national carrier, is in, and suggest strategic direction for the brand.
Several strategic models are employed including PEST, SWOT, Ansoff, Keller's CBBE model.
The presentation attempts to analyse UK airline industry and the situation in which British Airways, the flagship national carrier, is in, and suggest strategic direction for the brand.
Several strategic models are employed including PEST, SWOT, Ansoff, Keller's CBBE model.
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This book examines how Southwest Airlines, the largest carrier of passengers in the largest market in the world has become the envy of financial performance, customer, and employee satisfaction for the airline industry. For those of us who are involved in Organization Development or Human Resources and toil under the belief that people make a bottom line difference, this is our book. For leaders this is also your book, the lessons learned at Southwest are transferable not only to the airline industry but to any industry. A word of caution, the book is based on an academic/statistical study of the airline industry and reported more as an academic treatise than a captivating book. Don't let the style of writing get in the way of the important message:
Southwest's most powerful organizational competency--the "secret ingredient" that makes it so distinctive--is its ability to build and sustained high performance relationships among managers, employees, unions, and suppliers. These relationships are characterized by shared goals, shared knowledge, and mutual respect.
Over time Southwest Airlines has developed 10 organizational practices to facilitate coordination among 12 distinct functions: pilots, flights attendants, gate agents, ticketing agents, operations agents, ramp agents, baggage transfer agents, cargo agents, mechanics, fuelers, aircraft cleaners, and caters by building relationships of shared goals, shared knowledge, and mutual respect. The heart of this book is the description of these 10 practices and how managers in any setting can implement them to improve their business performance.
AOL Time Warner Merger Case Study Strategic Analysis, performing a SWOT, discussing the Culture of both firm's using Henry Mintzberg's Model, and evaluating the strategy.
What make airlines gain profits while the others fall in losses !!!
How LCC creates profits in a recession time ….
Is Airline Industry a profitable Industry !!!
What are various strategies in such cases…
And how to survive in this miss !!!!!!!
This presentation outlines how British Airways uses corporate communication tactics to manage and retain a certain image to its stakeholders. The presentation was created as part of a marked assignment and was accompanied by a report. This assignment achieved 74% [First].
Presentation developed by: Miles Newlove, Molly Mclaughlin, Abigail Holt and Shaun Parsons.
British Airways case analysis + swot analysis review by Myassignmenthelp.comMyAssignmenthelp.com
Get Assignment writing help on BRITISH AIRWAYS Case Study + SWOT Analysis Review from Myassignmenthelp Com
At Myassignmenthelp.com- Get complete Case Study + SWOT Analysis Review solution on Essay and Assignment tackled on British Airways. A Case study of the Organizational changes at the British airways- See more http://goo.gl/aKCQOM
This book examines how Southwest Airlines, the largest carrier of passengers in the largest market in the world has become the envy of financial performance, customer, and employee satisfaction for the airline industry. For those of us who are involved in Organization Development or Human Resources and toil under the belief that people make a bottom line difference, this is our book. For leaders this is also your book, the lessons learned at Southwest are transferable not only to the airline industry but to any industry. A word of caution, the book is based on an academic/statistical study of the airline industry and reported more as an academic treatise than a captivating book. Don't let the style of writing get in the way of the important message:
Southwest's most powerful organizational competency--the "secret ingredient" that makes it so distinctive--is its ability to build and sustained high performance relationships among managers, employees, unions, and suppliers. These relationships are characterized by shared goals, shared knowledge, and mutual respect.
Over time Southwest Airlines has developed 10 organizational practices to facilitate coordination among 12 distinct functions: pilots, flights attendants, gate agents, ticketing agents, operations agents, ramp agents, baggage transfer agents, cargo agents, mechanics, fuelers, aircraft cleaners, and caters by building relationships of shared goals, shared knowledge, and mutual respect. The heart of this book is the description of these 10 practices and how managers in any setting can implement them to improve their business performance.
AOL Time Warner Merger Case Study Strategic Analysis, performing a SWOT, discussing the Culture of both firm's using Henry Mintzberg's Model, and evaluating the strategy.
What make airlines gain profits while the others fall in losses !!!
How LCC creates profits in a recession time ….
Is Airline Industry a profitable Industry !!!
What are various strategies in such cases…
And how to survive in this miss !!!!!!!
This presentation outlines how British Airways uses corporate communication tactics to manage and retain a certain image to its stakeholders. The presentation was created as part of a marked assignment and was accompanied by a report. This assignment achieved 74% [First].
Presentation developed by: Miles Newlove, Molly Mclaughlin, Abigail Holt and Shaun Parsons.
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2. Change at BA
We Briefly chart the history of Change
Management at British Airways by developing a
timeline of key change events.
We then apply introductory concepts of change
management to the company’s history in order to
draw out points of further interest.
2
Friday, 21 March 2014
4. Formation
1974
Originally a private company formed by merger of small
UK airlines in 1935
Nationalised along with Imperial Airlines to form BOAC
in 1939
1971 Civil Aviation Act officially merged BOAC and BEA
on April 1st 1974
4
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5. ‘Offensive’ Consolidation
1970s
New company a huge mix of aircraft and corporate
cultures
Majority of 70s spent consolidating aircraft and staff
inherited in the various mergers
Concorde flights launched in 1976, initially a financial
burden with few profitable routes until early 80s
5
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6. Privatisation
1980s
Beginning of privatisation with new chairman and CEO expressly
given this mandate
Major changes to fleet, brand and corporate culture transform BA
into highly profitable global airline
E.g. 23,000 jobs cut with generous payoffs for voluntary
redundancies. Funded by taxpayer allowing the soon-to-be
privatised firm to operate with large cost savings without directly
incurring the costs.
Floated on the LSE in 1987, the most successful of a number of
privatisations initiated by the conservative government in this
period
6
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7. Expansion
1990s
As #1 most profitable airline in the world, entered new markets
by acquiring stakes in local airlines ( Australia, U.S, Germany,
France etc.)
Richard Branson’s Virgin Atlantic (1984) Emerges as a serious
#2 competitor leading to bitter ongoing rivalry.
E.g.1993 Virgin and Branson sued BA and King for Libel
winning a total of £650K in awards
Faced increasingly aggressive competition from new budget
airlines Ryanair (1985) and EasyJet (1995) as industry is
deregulated
7
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8. ‘Defensive’ Consolidation
1990s-00s(1)
Persistent Decline in profitability due to high oil prices, intense
competition and clashes with unions over restructuring.
Profits falling 50% in 1999 and share price falling from
760p to 150p after 9/11 attacks
BA retreated from several markets and engage in flurry of
capacity reduction and changes to management
Expensive maintenance and safety made future Concorde
flights untenable forcing BA to end service in 2003
8
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9. ‘Defensive’ Consolidation
1990s-00s (2)
Largest losses in firm history reported in 2009 and
considerable opposition from unions to job cuts and
employment contract amendments meant to claw back profits
Merged with Spanish Iberia Airline to form ‘International
Airlines Group’ in a move that was seen as largely defensive
by observers.
In-line with an industry-wide pattern of high concentration
meant to help mitigate the effects of high fuel costs and
intense competition with economies of scale.
9
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10. Cultural Change in BA (1)
Two main programs were implemented: Putting People First (PPF)
and Managing People First (MPF)
PPF attended by all 40,000 employees and aimed to restructure
their attitudes by:
1.Challenging hierarchal and militaristic culture of BA
• Employees instructed not to attend PPF meetings in uniform.
• Employees allocated to cross-functional and cross-grade
groups.
2.Encouraging staff to be more positive with themselves
• Taught how to better handle stress, and how to set personal
goals.
• Lapel badges were made with the motto “We’re putting people
first” inscribed on them to act as a constant visual reminder.
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11. Marshall showed great commitment to PPF program where he
attended 95% courses. Ensured that all of the symbols of the new
culture were in place.
PPF paved the way to reformation of company policies and
practices which carried on to the 1990’s such as:
• Direct contact with staff considered crucial and down route
briefings introduced to ensure no staff member neglected
• Cabin crew assigned to ‘families’ that shared same work shifts
to improve employee relations
• The role of ‘Passenger group Co-ordinator’ introduced where
staff were appointed based entirely on personal qualities
Cultural Change in BA (2)
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12. MPF targeted managerial employees and aimed to change behaviours according
to a list of factors constructed by consultants:
• Clarity and helpfulness
• Promoting achievement
• Influencing through personal excellence and team-working
• Care and trust
Managerial incentives introduced where bonuses as high as 20% of base salary.
Calculated on a 50:50 split between displaying desired behaviours and
achieving goals.
All programs paved the way to creating a corporate culture that focused on staff
personal qualities and close relations amongst employees, which led to overall
employee satisfaction, making all other changes occurring in BA more easily
received by its employees.
Other programs introduced to continue the effect of PPF and MPF such as
‘Winning For Customers’ and ‘To Be the Best’ which included confidence
building exercises such as the ‘Love Bath’.
Cultural Change in BA (3)
Friday, 21 March 2014
13. Role of HR in BA Change
Major change in 1987 – new mission statement: “to be the
best and most successful company in the airline
industry.”
Aim to keep employees in the centre of HR planning.
2 Training programmes
• “Putting People First” – align training to the
company’s strategy.
• “Managing People First” – to breakdown the
strict behavioural boundaries.
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14. HR Models for Change
Hard HRM Michigan Model Soft HRM Harvard Model
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15. Leadership Changes Inside
British Airways (1)
1981 Sir John King - Chairman
1983 Colin Marshall - CEO
• Transferring from transportation business to
customer services business
• Significant downsizing
• ‘Lead from the front’
• Cost reductions
• Increased profitability
• Customer satisfaction
• Perceptible increase in staff morale
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16. Leadership Changes Inside
British Airways (2)
1996 Bob Ayling
• Strategic alliance with American Airlines
• Investment in Iberia
• Low-cost carrier, Go
2000 Rod Eddington
• "Future Size and Shape"
• Decrease in turnover
• Profit of £135m
2005 Willie Walsh
• Reduced the numbers of managers
• Increased productivity
• International Airlines Group
Friday, 21 March 2014
17. UNFREEZE
First Four steps correspond with Lewin’s Change
model.
•Make sure employees are ready for change
•Create an action plan
•Decrease strengths of old values, attitudes, and
behaviours
Kotter’s (1996) Model
Lewin’s (1951) Model
Managing Employee Resistance
(1)
1. Establish a
sense of
urgency
4.
Communicate
the Change
Vision
3. Develop
Vision and
Strategy
2. Create the
Guiding
Coalition
Friday, 21 March 2014
18. 6. Generate
Short Term
Wins
5. Empower
Broad Based
Action
7. Consolidate Gains
and Make more
Change
CHANGE
Execute the change
Support Change
Facilitation of
training to reduce
resistance
Managing Employee Resistance
(2)
Friday, 21 March 2014
19. 8. Anchor New
Approaches
REFREEZE
Reinforce the change
through operating
procedures and
supporting mechanisms
Monitor and adjust
in response to
problems
Managing Employee Resistance
(3)
Friday, 21 March 2014
20. Conclusion
Historically, change often forced upon BA
externally. First by the need to privatise
and later by intense competition
BA’s HR department successfully
adapted to the change of the
privatisation process in 1987 by applying
2 formal HR models.
Cultural programs introduced promoted
employee satisfaction and hence,
efficiency; however, cultural changes
often neglected necessary structural
changes
The ability to effectively manage
employee resistance was an essential
part of transforming BA
Friday, 21 March 2014