Transcript BRITISH AIRWAYS

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