How To Survive The Recession, Then Fail The Recovery
Last year BA reported a sharp rise of operating profit to £883 million, which in view of the rising fuel price and their falling market share, seemed to be bucking the downward global trend.
This year they reported a loss of £401 million.
Somewhere between the two reality probably lies, but when has reality ever paid out a performance bonus? And when have the published numbers ever reflected what is actually happening to a business?
A spokesman for BA, Mr Willie Walsh, said : “The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits.” “But,” He said ”British Airways is well prepared and has adapted its plans in the event of further economic uncertainty.”
These reported performance figures for BA and their smooth denial of concern reminded me of the last time BA management hit the news.
It was several years ago and Rod Eddington, the then chairman of British Airways, was responding on TV to concerns about the profitability of British Airways.
He was having a moan about how the budget airlines were cutting into his market share,
but he was still being quite bullish about it.
He told the interviewer how, in the last three years, he had cut the operating costs of British Airways by 5% and that although the competition was tough they fully expected to maintain their market share.
What he didn’t say was that in the past three years, to make that 5% saving, he had made redundant 16,000 members of his workforce.
He must have had some idea of the consequences of those redundancies for the remaining workforce. How did he think they felt about it?
Did he think they still felt good about working for British Airways?
Did he think they still felt their jobs were secure?
Did he think they felt proud of what had happened.
At the time Rod Eddington seemed supremely unconcerned by any of the consequence of his actions other than the ability to boast about the financial savings he thought he had made.
The men and women who worked for BA had. in the main. been in their dream jobs.
Pilots, who as schoolboys had pictured themselves wearing Raybans while they lounged around in the cockpits of big jets.
Cabin crew who used to dream of all the exotic destinations they would go to.
Baggage handlers and support staff who at the time could use BA to nip over to Paris for the weekend for the price of a cup of strong coffee.
And then, by making 16,000 redundancies, Rod Eddington had at a stroke completely changed the way that the remaining BA employees felt about what they did.
He had changed their attitudes and behaviours from those of a proud group of motivated people, dedicated to the service of their customers, to a bunch of disillusioned job hunters.
By making these redundancies British Airways changed the behaviour of their whole workforce from a powerful group of people who were proud of what they did, to an apathetic, untrusting workforce who were only interested in where they could send their next CV.
In the latest twist in the saga of the failure of BA we read of the appeal from the current management for the workforce of BA to give the company one months work without pay to try to save the company.
Since the days of Rod Eddington, management at BA have completely lost the loyalty of their staff by the way that they have behaved towards them, creating a morally bankrupt organisation,
Make no mistake, this moral bankruptcy was caused by BA management.
Now we see the current management attempting to cash a cheque against the BA account that they themselves have already emptied.
It is possible that the company will fail without these individual contributions from the workforce, The workforce must be aware that it is just as likely that the company will fail even after they have put themselves into personal debt to try to keep it afloat, the only difference being that when the company fails, even after the workforce have given their time for free, the workforce will be in an even worse position to support their families.
Either way, management have already broken the trust of the workforce and since none of the management team seem to have offered to work for nothing it seems even less likely that any of the workforce will be persuaded to stick their necks out.
Do BA management truly believe that the workforce, working for nothing, will save them or are they working a spin, which when the company goes to the wall will enable them to say
“It was not our fault, We were let down by the workforce who would not support us.”
In this ongoing crisis we have to be very careful about what we do to survive and how that changes the way that our remaining workforce feel about they are asked to do.
Ride roughshod over the workforce during the recession because you can, and like BA you will have a very hard time continuing to trade even when the rest of the world has resumed doing business, Or, take care of your people when they most need it and they will take care of you when you need it.
We can’t have it both ways.
What goes around comes around.
You will like these as well!
|
Featured Tickles  Here Is Your D-I-Y Kit For A Leading Edge LifeManagement gurus and their disciples, thinkers, strategists and business process re-engineers have been busy propelling the modern world into not only coping with, but also keeping in step with the rapid changes of an ever shrinking, increasingly competitive and exhaustingly demanding global market. I Wish I Were A GoldfishI am told that a goldfish cannot remember anything beyond a 3 minute time frame. One of my favorite pastimes is to sit and watch our goldfish swim around lazily and rising up only to gobble at the food before going back to their contented existence. Their swimming around actually reminds me of chil The Fine Art of Persuasive Communication!There are many areas to look at in communication: a message is communicated through visual, vocal and verbal means. From that, comes the importance of body language, how we present ourselves, and so on. The visual and vocal elements are indeed very important to effective communication, but we will Teaching the teacherThe arbiter of knowledge and skills, the teacher, is a revered figure around the world. In India, the teacher is known as the guru, the wise one who can be trusted to lead the knowledge-blind and shine the light of competence and skills in the darkness of ignorance and incompetence. Over time it ha My 5 rules for life1. There are no rules. Structures, how-to's, dogma, principles...all disciplines and theories should be used to support your freedom and independent thinking. Curiosity is exponentially more powerful than playing by the rules. 2. Say thank you. Gratitude is one of the most creative and noble forc How To Nurture A Successful RelationshipHave you ever wondered how certain couples were able to stay together for many years? What are they doing right? What are the factors that contribute to the success of healthy, long term relationships? There are a few fundamental components that will improve your chances of having a successful relat Waves Of InspirationI stay in the coastal city of Chennai and one of my favorite pastimes is to explore the coastline that borders one side of the city. Starting from the crowded marina and Eliot’s Beach to the less crowded and secluded ones that dot the East Coast Road (or ECR as it is called), I have always found How To Be Depressed"Depression was, indeed, the hand of a friend trying to press me down to the ground on which it was safe to stand--the ground of my own truth, my own nature with its complex mix of limits and gifts, liabilities and assets, darkness and light." Parker Palmer I've never been through pregnancy depress Make an ass of yourself but do not let the world know...Many a time we are swept by that overwhelming feeling to bare all. Not to be mistaken with confession which is done after ensuring that there is nothing further to lose on account of reputation. I am referring to pure tear jerker stuff. Born out of righteous indignation. Or plain stupidity. The form Time management with the monksOne mile south of Georgia O'Keefe's beloved Ghost Ranch in New Mexico, thirteen miles down a cliff-hugging dirt road in the heart of Chama Canyon, you will find Christ In The Desert. The Benedictine Monastery is cloister to about twenty monks. I'd fantasized about retreating to the remote monastery |
Loading ...
Twitter 
Facebook
Subscribe