Case Managing Change
- What are the major change-related issues /questions in the case?
British Airways was experiencing a state of incompetence which was attributed to its history and culture. Operational culture introduced by the government made the airline to ignore its inefficiencies. There was similarly a lack of economies of scale and a rigid sense of loyalty between the merger of BEA and BOAC.
How many issues/questions are there?
Two issues made the airline to undergo the worst state of financial crisis; a deep state of inefficiency of its operations in the historical and cultural matters.
Who do the issues/questions affect?
The lack of efficiency in the operations at the airline affects the employees of the airline and the management level as well as the customers who use the airline for traveling services.
What are the most important issues/questions?
According to king the issues of British Airways; a varied and aging fleet, high costs of fuel and staffing as well as a bankrupt airline were quite significant.
- What should the protagonist in the case (if there is one) do at this point to effectively promote and manage positive change?
The airline was losing money at the rate of £200 a minute. King was brought in to try and resolve the crisis facing the airline, considering that the airline was in a state of financial crisis, his point of focus should be dwelled on cutting down on expenses.
- What evidence from class the case and/or class readings/discussions supports your idea?
In attempt to cutting down on the cost, Lord King embarked on cost saving mechanisms; he trimmed the staff numbers, halted any form of pay increase for twelve months so as to manage the cost, he shut down 16 routes, stations and engineering bases. Moreover, huge cuts were directed to the offices, administrative services and clubs.
Why should the protagonist do what you are suggesting?
The main aim of a business organization like British Airways is to acquire revenue. Such an enterprise is not able to achieve this goal if it is experiencing financial crunch. The suggestions offer a way of recovery for the airlines. The British Airlines has been dogged by financial crisis which would require it to minimize its spending and focus on ways to improve its revenue.
- How will your suggestion improve the situation for the protagonist?
Gordon Dunlop, an accountant, was accredited with the task creating creative financials for the airline; writing down redundancy costs. With application of the financial cuts the airline would be able to recover from
How will your suggestion improve the situation for the organization?
With the loss of £200 every minute leading to a financial crisis, the financial cuts would lead the airline to recovery from the crisis.
- What new change-related issues could arise as a result of your suggestion(s)? Be specific.
Cutting down on expenses by the British Airlines would lead it to return to being competitive ground and the ability to be privatized. This would make the control of the shares to shift from the government (Anonymous). The airline would also be able to acquire the trust of other airlines that was initially lost. In terms of the cultural transformation, the airline would be able to do away with the negative impact brought about by the British Caledonian concerning the routes. Politically, the airline would be able to maintain its routes and avoid it from shifted to other smaller airlines. The privatization of the airlines would make it possible for British Airways to get involve in partnerships with other big companies. The company would have brought itself out of bankruptcy.
Even with the benefits that the airline is set to acquire, there are bound to be challenges in the staff accepting the new culture. This would require time for it to fall in place.
Work Cited
Anonymous. Changing the culture of British Airways. Managing Change.
