Reenergizing the Mature Organization
Re-energizing a mature organization is relevant to British Airways because it involves identifying a set of principles that will renew the organization while modifying its work processes and leadership. Moreover, it also involves laying out the organization’s lifecycle from its inception through its unique cultural phases. The statement is relevant to British Airways because it highlights its history from two different government-owned organizations to its restructuring and rise to become one of the market leaders in the global airline industry. Mature organizations often have essential strategic development platforms that create a favorable environment where they can achieve success while transforming their organization. Mature companies reenergize themselves by focusing on customer perspectives, needs, and demands so that they can create an environment that will influence success.
Life at the “Old” British Airways
The “old” British Airways was incompetent and did not address customers' needs. There was widespread employee discontent that was accompanied by a high customer dissatisfaction. A survey carried out in 1980 by International Airline Passengers’ Association revealed that British Airways was among the top list of airlines that should be avoided by clients at all costs . Organization management, as well as employee relations and customer service, were atrocious. The organization was mainly focused on representing the UK and employing many war veterans by both British Overseas Operations Airways Corporation and British European Airways instead on focusing on success, good management, quality customer service, employee relations, and profit. The two organizations mentioned earlier were the parent organizations of British Airways ( British Airways, 2017) . It was quite challenging to make the necessary changes because it involved a forced integration of two separate government-owned institutions. Furthermore, years of profits drew their management's attention from their inefficiencies, and it was difficult to inspire changes among the staff.
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Critical factors in the Successful Transformation
After the merger of British Overseas Operations Airways Corporation and British European Airways, they faced many issues, especially regarding the cultural perspective. It involved the alignment of two dissimilar cultures. It caused tensions among employees and ultimately influenced customer satisfaction. Also, they had a ‘forced management system’ that was inflexible and unable to meet customers’ needs ( British Airways, 2017) . They became one of the most unpunctual airlines in Europe. Reenergizing the company through an effective management system was critical in the successful transformation.
How Did They Transform Themselves?
Prime Minister Margaret Thatcher appointed John King as the chairman ( British Airways, 2017) . He had strong ties with their government and had a history of many successful business ventures. Additionally, they hired Gordon Dunlop as the CFO who was responsible for building a positive public image. The appointment of Sir Colin Marshal as the CEO was one of the most essential decisions in transforming British Airways. Some of the changes involved the axing of several routes and selling off cargo services and planes. As part of their cost-cutting program, the cut approximately 20000 employees ( British Airways, 2017) . Colin Marshall focused on improving customer services. They hired consultants to evaluate employee and customer satisfaction. The management implemented the consultants’ recommendations. Moreover, they developed the Putting People First Program that encouraged employees to analyze their relationship with friends, family, and customer. The changes caused a positive transformation in the company and additional profit ( British Airways, 2017) .
What Would You Have Done Differently?
I would have used Kotter's 8 Step Change Model to improve the change management model. The first step is creating urgency about the need to transform the company, and it involves an honest and open discussion or dialogue about the challenges facing the company. The second step involves creating a powerful coalition of change leaders in the company whose power comes from political importance, job title, expertise, and status. The next step would involve creating a vision for change that involves great ideas and allows employees to have shared goals ( Hayes, 2018) . The fourth step would involve communicating the vision to all stakeholders so that they can know their roles in the change process. After communicating the vision, I would focus on removing obstacles. There may be human and structural resistance to change. The sixth step involves creating short term wins that will allow the company to achieve short term targets that focus on the overall long term goal. The next step involves building on the positive changes. The final step would involve anchoring the positive changes in British Airways’ corporate culture so that it can foster long term success ( Hayes, 2018) .
References
British Airways. (2017). British Airways. Where we fly. Retrieved from https://www. britishairways.com/travel/where-we-fly/public/en_gb/map .
Hayes, J. (2018). The theory and practice of change management .