High-Performance Culture

Engaging employees to implement sensitive operational changes

Challenge:

A Business Transformation Office (BTO) was charged with to meeting aggressive Debtor in Possession (DIP) covenants set by the Court. Its Operations team was the largest and most complex program, overseeing the activity of 11 projects encompassing three business divisions and the entire global network of airports. This team needed engage employees to think and behave differently to transform how the company worked and reduce costs by $150 million by 2004.

Actions:

  • Developed a program communications network that integrated program management, budget and benefits tracking, project activity and communications to share information and align priorities.
  • Streamlined the program’s financial reporting communications to the divisions to create: 1) consistent metrics for each division, 2) systematic approach for financial reporting, 3) clear accountability for divisional and project reporting, and 4) Visibility into the remaining financial reporting cycles in 2003.
  • Identified the behavioral risks in individual project plans, prioritized tactical activity and developed mitigation strategies and detailed communication plans for all 11 project teams
  • Developed messaging for the overall effort to help the project managers engage the hearts and minds of employees and drive the necessary behavior change
  • Provided general coaching and implementation support: writing and editing, facilitating meetings between management and labor, training, etc

Result:

  • Achieved $229 million in cost savings – 48.8% BTP
  • Operations productivity increases 16%, while costs decrease more than 20%
  • Breaks its on-time departure record by almost 10 percentage points and sets a new monthly performance record—a move from a goal of 66% to 80.4%
  • First within the industry for on-time departure, improving 9% over 2002
  • Customer Repurchase Intent goal surpassed. Competitive Complaint Rate decreases by more than 50%

© 2005 Gagen MacDonald LLC