Revenue_Melb
"
but I guarantee most passengers or prospective passengers have noticed the change already, all of which helps Qantas break the image of being old and stogy"
Ahh marketing,
'the triumph of spin over substance'
On what factual basis can you 'guarantee'
anyone has noticed?
Do you work for Qantas? Work for T shirt Todd Samson and the brand experts?
Brand is a modern management cliche.
Qantas cost itself $100 million in 'brand value' in 2011 (10%), undertaking a malicious campaign aimed against the staff, indirectly the customers and indeed the nation when an industrial negotiation period no longer suited the management who orchestrated a grounding and lockout.That cost in GDP terms Australia's circa $250 million.
A 95 year old company has processes, culture and certain things that distance it from others. Qantas commanded a 'safety premium' and everyone remembers the 'rain man' comment.
“You absolutely cannot make a series of good decisions without first confronting the brutal facts.” Jim Collins from Good to Great
Being honest with themselves, management ought concede poor leadership, bad decisions and feeble attempts to corral the staff through IR and other implied threats actually adds to total operating cost. There is a lot of .literature out there confirming this hypothesis, not my opinion. Qantas may have 5,000 less FTE staff and most 'staff' are pay frozen, but the expenditure is up by $300 million. Wonder why? It isn't the small bonuses remaining staff received.
“Mediocrity results first and foremost from management failure, not technological failure.”
Qantas kicked an own goal in the brand denigration, they focused on the wrong things like aggressive growth in Asian franchises that have not yielded a dollar trade profit in 10 years!
A liquid overhaul and new envelopes does not change the
reality. Qantas destroyed a lot of its built up $1.1 billion 'brand value' with campaign aimed at strong arming unions through Fair Work.
Am sure the Net Promoter Scores are fantastic. For the un-initiated, management consultants sell these little projects to companies who it turns out love the way they form part of the senior manager KPI.
https://en.wikipedia.org/wiki/Net_Promoter
Alan Joyce and the Qantas revival: was there ever a crisis?
Alan Joyce has been handsomely rewarded for his 'performance' but as alluded to in this article, his remuneration is excessive compared to regional peers. His returns for shareholders was very poor, Qantas impaired their fleet in 2014, saving a lot of a depreciation book entry, and they got lucky with a big drop in oil prices.Without those two events (one management controlled) Qantas would still have lost money..Alan Joyce has come a long way from very humble roots in Ireland
. However the question remains that was he the
right leader in the first place?A liquid overhaul and 'brand' repair may in themselves seem necessary from time to time, but I would strongly suggest to you the 'brand damage' Qantas needed to repair was of their own making.
