I worked for Air New Zealand (as ground staff - checkin, A's and D's and some ramp) from 2000 until 2005. I saw and experienced a range of management styles whilst there. I was there for the last days of Sir Selwyn Cushing (presided over the worst corporate loss in NZ's history) I saw Gary Toomeys short lived tenure at the top and the threats of almost complete closure of the airline (or at the very best outsourcing of all jobs that weren't considered core business. For example all ground handling, ramp, load control and a host of other jobs were up for outsourcing leaving basically the pilots and SOME FA's as direct Air NZ employees) I also witnessed the Ansett collapse (both in Aus and NZ).
Then along came Ralph Norris. (currently head of CBA) At the time he took over as CEO he was just what Air NZ needed.
At the time of his appointment as CEO of Air NZ, the company was in the process of being recapitalised by the New Zealand Government following the Ansett collapse.
He saw the value of having a happy productive workforce. He understood that if you look after your staff then they will look after your customers. He understood that the Air NZ product was tired and lacked appeal. He saw that the fleet was getting worn out after several years of asset stripping by BIL and he set about revamping it.
On top of all the things mentioned above, he organised large staff meetings at most of the airports around NZ. This was so staff could come and meet him, speak to him, vent (and pleanty did!) and hear what he had to say about the state of the company and what his plans were.
He called for staff involvement in product development. Ideas were welcomed, indeed encouraged. He spent time on flights talking to pilots and FA's, he spent time on the ramp, at the checkin counters and everywhere in between. He showed that he was approachable, interested in his staff and interested in what they had to say.
Not long after taking over he took the unusual step of giving everyone a small bonus. I cant remember how much it was now but think it was $200. It came with a note saying that he understood what we as staff had been through, that he valued our efforts and here was a tolken of his appreciation. (I know the Ansett staff had been through a great deal more than us!) A few months later there was another bonus, and a third a few months later.
To cut a long story short, he ENGAGED with his employees!
He restructured the chains of command to give us mere minions more direct access to management. Later on in his tenure he sent his senior managers out once a month to work alongside staff on the ramp, at checkin and onboard the aircraft. (something which Rob Fyfe has continued and has built upon)
Ralph Norris made such an impact on the airline that within 12 months the company returned to profitability. It
was named New Zealand Corporate of the Year by British Banker Magazine in 2003 and the following year, Air NZ received the Air Transport World’s Phoenix Award for achieving ‘a commercial rebirth through life-changing transformation’.
The situation is somewhat different at Qantas, but if AJ keeps going down the road he is taking at the moment, Qantas will also be a corporate basket case within 18 to 24 months.
The continual self canibalisation of Qantas through it's Jetstar offspring will eventually, if left unchecked, be the demise of what is a great airline.
Air NZ re-absorbed Freedom Air into the parent company because ultimately having two airlines owned by the same company competing against each other meant that neither could make a profit. Costs were nearly doubled and profits nearly halved. Air NZ decided it was better to take Freedom back into the main airline and take over the Freedom routes itself. I know that meant some services being cut, ie; Palmy to SYD, DUD to SYD and Hamilton to SYD (It's been a while since I was in NZ so some of those routes may well now be operating again) but they proved that self canibalisation doesn't work!
Watching the Qantas team at the inquiry, I can't help getting a picture of an exhausted horse running down the track with blinkers on. AJ and Co are so hell bent on the Jetstarisation of Qantas that they can't see the detriment it is causing to the Qantas brand and business. What they don't see (or maybe they do but don't acknowledge it) is that without Qantas, Jetstar is nothing.
In my opinion, AJ wasn't too bad as Jetstar CEO. He knew low cost, budget, corner cutting and staff screwing quite well, and unfortunately there were plenty of people who were happy to go along with it. He grew the airline into something of note and a serious player in the domestic and to a lesser extent, international market. As Qantas CEO though I think he needs to do a full 180 in his business philosophy and staff management philosophy or get out and leave the job to someone who CAN and WILL do it properly!
I know you Aussies would probably baulk at having a Kiwi in charge of an Aussie icon (we do have a Welsh PM here though...) but it might be worth seeing if Ralph Norris or indeed Rob Fyfe could be tempted over to the big red rat.
I have never been a big fan of strike action or excessive union activity but I have to say, with the way Qantas is going I will support wholeheartedly any of the workforce who go out. The problem is that due to their arrogance and pig headedness, I don't know if AJ and his team will listen or change their approach. I can see any industrial action taken by Qantas employees turning into a massive stand-off and the staff being the first to give in. I would hasten to add that I don't believe any company should be held to ransom by it's staff either as that will lead to disaster too.
I have no issue with CEO's being well remunerated for the work they do, nor even with bonuses for meeting targets, achieving outcomes or performing in excess of contract or expectation. I think though that in the interests of corporate responsibility AJ and his team should decide that they won't be taking any bonuses this year. The Qantas CEO is one of the highest paid airline CEO's in the world (and it's by no means the largest airline). AJ will soon be laying staff off and making cuts. Alan, how about showing the staff and Australia in general that you're prepared to start trimming the fat right from the very top! I think you'd be surprised just how many brownie points that would gain you with your staff.
STAFF ENGAGEMENT ALAN..... it's the key to achieving so much in the business world today. Take the time to go out to your main bases (and a few of the not so main ones too) and talk to your staff. Ask them frankly what they think and reassure them that they WON'T be given the boot for telling you the truth. Work along side them for a day or two, try to UNDERSTAND their job and what they do for you. Explain to them how you see Qantas and Jetstar working together, not against each other, give them assurance (and back it up with evidence) that their jobs are secure, (or as secure as possible in todays airline environment) COMMUNICATE with them. That doesn't mean only putting out notices, e-mails, directives, edicts, decrees etc..... effective communication requires BOTH PARTIES having an active part. Don't just talk, LISTEN. In CRM we have something called Push and Pull....that means both parties asking questions and making suggestions.
Anyway, that's my 2 cents worth.
NWF