a tqm-case-study-in-service-sector british airways
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04/08/23 BRITISH AIRWAYS- 20071538 1
20071538
British Airways’ new route to customer service
A TQM case study in service sector
BRITISH AIRWAYS
Every 2min a BA flight takes offWorking 24×74th largest airliner in the businessFiercely 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 crisisPreviously a nationalized corporationShedding jobs worldwide to stop making lossMerging of BOAC & BEA Restriction of operating routes
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public to private
Prepared itself for privatization Regained its financial wealthAfter £5 million worth advertisement, sold itselfBegan to repair and restructure
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Start of the TQM
implementation
Leaner to fitter‘PUTTING PEOPLE FIRST’ program by Collin
MarshallCustomer Employees 30,000 employeesBehavior breeds behavioremployees
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know your work place better
‘CUSTOMER FIRST’ team programIn effective attitude of employeesEmployees 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 BreakingExperimenting processesVisioningBonding
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pattern breaking stage
‘Demanning’ from 59,000 to 29,000Dismissal letters to opposing managersNew, new, everywhere new_______________________________________Experimenting & visioning stage difficultiesPathetic business attitude, absence of good
managers, underachieving education systemEffective 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 meetingsRecording feedback from the down level
managementParticipative management styleBureaucratic, militaristic service
oriented , market driven.
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act as you preach
BA offered MBA degree! to its employeesEstablished permanent training centreCreated emotional supportOrganizational hierarchy was flattened profit sharing bonus schemesPerformance appraisal system introducedPerformance based compensation systemdata driven feedback system on management
practices
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treat employees as
potential customers Introduction of ‘world traveler’ to economy
classAdvertising 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
celebrate13 % increase in profitAnother 12% increase in each subsequent yrsBecame fourth largest airliner160 destinations, 90 countries, 25 US cities41 % share in North Atlantic market 235 aircrafts, advanced fleet strength than
competitorsEnormous customer care programs
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REFERENCES
• John Bank, The Essence of TQM, ©Prentice-Hall International (UK) ,2002.
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