Interesting article indeed,as reported by Mr Hat.
Borghetti's machete causing problems in Virgin Blue
Tuesday, 3 August 2010
Price of survival is high
The good old travel industry grapevine is awash with rumours that John Borghetti's machete waving and chopping in the Virgin Blue Group is having a pretty damaging effect on company morale, with even the Brisbane Courier Mail reporting this week that all is not happy at Virgin HQ, a traditionally very upbeat and happy workplace.
The only ones sooking and feeling guttered are Management and management footstools. The frontline staff are cheering and leaping for joy at the removal of all the deadwood from Ergonomic Central.
Let's face it though and be fair to Borghetti, that it was inevitable his appointment was bound to cause waves or even tsunamis within the company, as would the appointment of any new CEO to any company, with senior execs in DJ being given the push, including head of
pr Heather Jeffrey,
Again, the only people crying are the protected species in HQ. The rest of the company are overjoyed. My advice to JB is to keep wielding the axe until all traces of rot are removed from the place.
The Courier Mail report also says that one employee described the mood as "quite unsettling", with some work teams "decimated" by retrenchments and that particularly at risk are those with V Australia, the group's loss-making overseas offshoot launched last year, adding, "We're all a little taken aback".
Well I have to say - "smell the coffee" - because no business can continue haemorrhaging like DJ was and changes had to be made - even if they were tough ones, with over at V Australia, Scott Swift having the chop and COO Andrew David planning to leave by the end of the year, with more heads anticipated to role as V Australian is absorbed into the Virgin Group, along with other what were "standalone" businesses.
It is called 'change management' and whenever this occurs, people become unsettled, but the uncertainty will pass. As has been stated, JB had to wield the axe so as to ensure the place survives its current economic woes. Again, the depth of JB`s aviation experience and the decisions he is making are absolutely spot on. Airlines dont survive on flair and by employing incompetent and inept managers.The benefits will flow through, give it time...
With the company's full year results about to be announced, we need to remember that pre his departure, former CEO Brett Godfrey announced that Virgin's bottom line result improved by $164 million, from a $101.4 million loss in the December half of 2008 to $62.5 million profit for the six months to December 31 - then less than three weeks after taking over Borghetti shocked everyone by announcing that that company's pre-tax profit would plummet by up to 75% down to $20 million to $40 million, with analysts now expecting an even worse result to be announced.
This paragraph speaks for itself,hence the reason Borghetti now runs the place.
Good work Massimo, keep shredding the deadwood !