National Air
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Makeover (from shame to fame)
1984 ÐŽV 1996, from loss making to aviationÐŽ¦s standard-setter
Innovation (specially with the control handling system)
High quality personal service
Consistent profitability
Systematic training
From ÐŽÒairline to avoid at all costsÐŽ¦ to ÐŽÒworldÐŽ¦s best airlineÐŽ¦ / ÐŽÒworld classÐŽ¦ÐŽK was considered the most unpunctual airline, when flying from its own home country too
David Shott
Initiated customer service training for all employees ÐŽ§front line firstÐŽÐ and ÐŽ§supporting the front lineÐŽÐ
Restructured the airline ÐŽV emphasis on marketing and IT to maximize yield
Overhauled HR system to align policies with the strategy of the airline
Robert Berger
Shott brought him in as legal director and moved to director HR and director marketing and operations
Sharpe mind ÐŽV thoughtful answers ÐŽV disarming modesty ÐŽV relaxed ÐŽV friendly ÐŽV media savvy
Customer is GOD, kind of attitude
Four objectives ÐŽV see page 45 ÐŽV most imp was to be ÐŽÒcountryÐŽ¦s best managed company for year 2000ÐŽ¦
Announced twin strategy
Business Efficiency Plan (BEP)ÐŽK biggest bonus declared in May 1996ÐŽK message was to reduce costs further in order to be better prepared for future competitionÐŽK reinforced the need for constant improvement
Major cost cutting measures to be taken
Ask 5000 employees to leave voluntarily over a period of 18 months
New employees with more flexibility and more appropriate skills ÐŽV language and ability to deal with customers
Foresight ÐŽV not waiting for financial disaster to cut costs, proactive to prepare for tough competition ahead
Outsourcing accounting to Bangalore to cut costs
Some cost centers were scrapped ÐŽV ShottÐŽ¦s baby ÐŽV Marketplace Performance unit responsible or customer preference and perception
The share price increased from 7.46 Euros to 12.13 Euros
Turbulence
In 1996 Berger said he will not spend 100 million Euros on the logo redesign but in June 1997 he actually did so ÐŽV justified as repositioning itself as ÐŽ§citizen of the worldÐŽÐ
Thought the open office layout would work in his favour as a symbol of his ÐŽÒcaring, sharing management styleÐŽ¦
He wanted to his staff to see him as ÐŽ§the model of a modern bossÐŽÐ „Ñ- wanted to be a great manager not a leader
Pilots strike loomedÐŽK and later cabin crew was not happy with the new salary schemeÐŽK the new recruitÐŽ¦s salary was going to be less but seems it was not communicated properly leaving a lot of cabin crew employees unhappy
When NABU announced a strike, instead of negotiating with them, NA sent out a harsh memo stating that employees stand to loose jobs if they went on a strikeÐŽK this is no way of trying to calm down an angry mob
Employees even pointed out that Shott also did some mean things which were unpopular but he was somewhat considerateÐŽK with Berger, employees felt that he despised them ÐŽV ÐŽ§the dispute is not about money, its about how we are treatedÐŽÐ
Public, Press and Politicians all condemned the behaviour
Despite all the turbulence, Berger was hell bound on pushing his plans aheadÐŽK he didnÐŽ¦t care about the sore relationship and thought he can rebuild it once his ambitious plans were implemented
Lacked empowerment ÐŽV was trying to make decisions most of the times
Rebuilding relations
Task force to learn lessons form the dispute and produce a new spirit of co-operation ÐŽV lead by Martin Day
To rebuilt the morale and motivation among employees
Mend customer relationship
Improve punctuality
Priority was to improve operational performance
Combined operations and customer services department
IN-TOUCH ÐŽV employees not in touch with customers spent a day every year on the front line, to understand how it felt
Confidential help-line created to provide advice and counseling to employees
After achieving 900M saving