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Changing Culture at British Airways

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Old British Airways British Airways (BA) faced diverse problems in 1980. Following World War II BA numerous war veterans who brought their military mentality with them. BA initially formed through the merger of two government agencies. These two factors created an organization that provided the cut and dry service of taking off and landing on time. Nothing else mattered. Customer service was not of much importance. BA treated customer as though the customer did not have a choice in service and as though the customer had received a benefit getting to ride the airplane. Numerous bad experiences tarnished BA’s public image. The problem became dangerous when Britain’s worst recession in 50 years reduced passenger number and raised fuel cost substantially (Jick & Peiperl, (2011). British Airways needed immediate radical change in order to survive.

Managing Change Managing change is one of the most important and challenging tasks that any leader ever undertakes. Research has shown that public service motivation (PSM) is connected with commitment to change, especially when changes are positive and consistent with one’s value system (Lee, (2013). When change could conceivably improve public services or better serve the greater good, many employees might be more supportive.

Transformation Key Steps British Airways (BA) established a since of urgency, to bring about transformation. Management realized that it needed a drastic change in its business model and culture. The first step Sir John King was appointed chairman. King had a successful track record of starting business and restructuring companies in trouble. King hired Gordon Dunlop as the CFO. The second step was to break the 36 year old contract and hire a new advertising agency, Saatchi and Saatchi (Jick & Peiperl, (2011). King also recruited Colin Marshall, as CEO of the company. Marshall made customer service a personal crusade from the day he entered British Airways. BA introduced the Putting People First (PPF) program.

What would I have done differently? Training in change management can help to provide a deeper knowledge of the principles and understanding of how to implement and manage change. I think that would have help manage the process at BA. As every organization is different there is no template for success (Edmonds, 2011). “Re-Energizing the Mature Organization” was germane to the case of BA because BA used the four principles of renewal as stated in the reading (Beatty & Ulrich, (2011).

References

Beatty, R., W., & Ulrich, D., O., (2011) Organizational Dynamics, Summer/1991. American Management Association, New York.
Edmonds, J.(2011) “Managing successful change”, Industrial and Commercial Training, Vol.43 Iss:6 pp349-353
Jick, T.D., & Peiperl, M.A. (2011). Managing change: Cases and concepts (3re ed.). New York, NY: McGraw-Hill Irwin. ISBN: 9780073102740.
Lee, C.D., (2013). Commentary Insightful Observations for Managing Change Efforts. Public Administration Review, 73:747-748.doi: 10.1111/puar, 12112

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