1. British Airways’ new route to customer service
British Airways’ new route to customer service
A TQM case study in service sector
9/18/2018
BRITISH AIRWAYS

2. 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
9/18/2018
BRITISH AIRWAYS

3. CHANGE IS GOOD Shoddy airline , indifferent to passengers
TQM case study
9/18/2018
CHANGE IS GOOD
Shoddy airline , indifferent to passengers
World class, financially well, a trendsetter indeed!
TQM – the route 2 transformation
9/18/2018
BRITISH AIRWAYS

4. TQM case study
9/18/2018
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
9/18/2018
BRITISH AIRWAYS

5. TQM case study
9/18/2018
public to private
Prepared itself for privatization Regained its financial wealth After £5 million worth advertisement, sold itself Began to repair and restructure
9/18/2018
BRITISH AIRWAYS

6. Start of the TQM implementation
Leaner to fitter
‘PUTTING PEOPLE FIRST’ program by Collin Marshall
Customer Employees
30,000 employees
Behavior breeds behavior
employees
9/18/2018
BRITISH AIRWAYS

7. 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’
9/18/2018
BRITISH AIRWAYS

8. organizational & cultural change
Pattern Breaking
Experimenting processes
Visioning
Bonding
9/18/2018
BRITISH AIRWAYS

9. 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
9/18/2018
BRITISH AIRWAYS

10. 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.
9/18/2018
BRITISH AIRWAYS

11. 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
9/18/2018
BRITISH AIRWAYS

12. treat employees as potential customers
Introduction of ‘world traveler’ to economy class
Advertising it to employees before to customers
‘Internal commitment’
‘Internal marketing’
9/18/2018
BRITISH AIRWAYS

13. 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
9/18/2018
BRITISH AIRWAYS

14. 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
9/18/2018
BRITISH AIRWAYS

15. 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
9/18/2018
BRITISH AIRWAYS

16. REFERENCES
John Bank, The Essence of TQM, ©Prentice-Hall International (UK) ,2002.
9/18/2018
BRITISH AIRWAYS