1. Build Execution into Strategy
Bailey Anderson, Angela Chavez, Tucker DeVinny

2. Poor Process Can Ruin Strategy Execution
Companies must make sure the employees/customers affected are well- informed
Not executing in a proper process
American Airlines:
Carries out their strategic process by incorporating LCC's

3. The Power of Fair Process
Procedural Justice = managerial term for fair process
Builds execution into strategy by creating people's buy-in upfront
How fair process affects people's attitudes and behavior
Strategy formulation process --> Fair process
Attitudes --> Trust and commitment
Behavior --> Voluntary cooperation
Strategy execution --> Exceeds expectations

4. The Three E Principles of Fair Process
Engagement
Explanation
Expectation Clarity
American Airlines:
Everyone effected is actively informed, engaged, and knows the boundaries

5. A Tale of Two Plants
When implementing a new strategy, lacking the basics of fair process causes poor implementation
A lack of transparency and understanding can affect strong workforces negatively even if the strategy will benefit them
American Airlines: One Team, One Plan 2019

6. One Team, One Plan 2019

7. Why Does Fair Process Matter?
Human beings value their individual worth regardless of hierarchy in the work place
Humans thrive off appreciation and recognition
Individuals in the workforce don't want to be seen as solely "personnel" or "human resources"

8. Intellectual and Emotional Recognition Theory
Open communication and recognition of workers' intellectual and emotional work is essential to effectively operate
Recognition establishes trust in management's strategic decisions
Employees are more willing to commit and cooperate with strategy execution
In a 2017 survey, only 38.9% of American Airlines employees "believe that there's an atmosphere of trust and respect at the airline"
Establishes trust

9. Fair Process and Intangible Capital of an Organization
Commitment, trust, and voluntary cooperation in a company is called intangible capital
People are willing to override personal self- interest when they have trust and commitment for a company
People tend to be committed to support the resulting strategy even when it is viewed as unfavorable with fair process
In AA, people trust the brand name and hold a certain expectation when flying with AA or any partnering airline

10. Fair Process and External Stakeholders
External stakeholders are outside of hierarchical control and often have diverging interests and understandings
Without external stakeholders' commitment, execution can become a slippery slope of missed deadlines, poor quality, and cost overruns
AA relies heavily on their external stakeholders to stay ahead of competition and expand the company efficiently with lower costs