I understand the reservations expressed, but I think there is reason for some hope now. (Assuming of course that Herr Mueller is indeed joining EK. I have heard that he will start on 1 Oct.) It is clear that he is not the type to tread water and will already be in no doubt about the size of the task ahead of him.
It is great to listen to him talking (in the video clip of his interview) about people. The cynics amongst us may question how much of that comes from his heart or from his head, but I do not think that really matters. Just the understanding that listening to your people is fundamental to a successful organisation would bring a huge change to EK. The views he expresses about people are diametrically opposed to the approach taken by STC and GC.
CM talks about the need for a burning platform, but the EK situation is unusual. The overwhelming majority of staff are fully aware of the fire - they are in it. The problem is with the few who have been overtly fuelling it and have protected themselves with asbestos shields. Breaking those shields open will take the stature and resilience of someone like Herr Mueller. I have two reasons for hope for everyone at EK . . .
First, although CM will need a lot of cash to beef up the core operation, it will not be difficult to find. As long as a surgeon (not a butcher) is employed, most office based support functions in the EK Group are ripe for enormous efficiency gains without the need to reduce service levels. The (cost saving) industry standard is to initially take out 20% of costs in support areas. In my experience the impact of this (seemingly savage) cut, as long as it is done without fear or favour, initiates the necessary revolution. If the correct 20% of cost is removed, the picture becomes clear to everyone – waste creates waste. For example, identify an unnecessary layer of management and remove it, and everyone soon realises how little value it added to the business and how much work it itself created. So a 20% reduction becomes just the start. Key to success for the ‘surgeon’ in EK will be for all Group Service functions to be placed into one dedicated organisation and no longer be cluttered up with genuine business functions that can continue to bring useful revenue into the Group. The ‘surgeon’ should be someone who genuinely believes in people, efficiency and providing value to customers and, perhaps most importantly, should not be incentivised for meeting financial targets. This last requirement would also help with the appointment process – a ‘butcher’ would not take the job on without a cash prize (and escape route) waiting for him/her at the end of the maelstrom.
Secondly, I agree with the points raised about managers ‘keeping their heads down until retirement’ and I am certain many managers will have squirmed whilst hearing Herr Mueller constantly referring to ‘the truth’ and talking about a 4 a.m. visit ‘to the baggage room’. But there are also good managers in EK. Many have stayed well below the parapet over the years - some by force, some by personal choice – but hopefully these managers will recognise that this will be the right (and last?) opportunity to stand up and be counted. Certainly Herr Mueller will want to count them in. Up until now, anyone who tried to change things at EK ended up . . .
locked out.