A Tqm Case Study In Service Sector

20071538

British Airways’ new route to customer service

A TQM case study in service sector

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BRITISH AIRWAYS- 20071538

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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 10/01/09

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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 10/01/09

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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. 10/01/09

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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 10/01/09

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REFERENCES

• John Bank, The Essence of TQM, ©Prentice-Hall International (UK) , 2002.

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