4. 4
Nine different CEOs Sine
1983
Groups and Departmental
Conflicts
Employees hate
Continental
On the way to 3rd
bankruptcy
5. 5
Last among the 10 largest U.S.
commercial airlines in on-time arrivals
Highest number of mishandled baggage
reports
Highest number of complaints
Culture: backbiting, mistrust, fear, and
loathing.
6. 6
The Market Plan: Fly to Win
The Financial Plan: Fund the
Future
The Product Plan: Make
Reliability to Reality
The People Plan: Working
Together
7. 7
Cost Cutting through:
1. Eliminating loss generating
routes
2. Cutbacks in the flight schedule
for Continental Lite.
3. Eliminating Airbus 300 from
the fleet
4. Launching a concerted
marketing campaign
8. 8
Renegotiation of aircraft
lease payment
Refinancing some of debts
at lower interest rates
Postponing some debt
repayments
Raising fares on certain
routes
9. 9
Improvement in on-time
performance
Improvement in baggage
handling
Improvement in overall flying
experience
Rewarding employee(based on
achieved on-time performance)
10. 10
Encouraging Teamwork
Building Trust
Radical Change in
Corporate Culture
Measure and Reward
Cooperation
11. 11
Unconvinced board members
“Go Forward Plan” accepted doubtfully
Appoint Bethune as CEO
12. 12
Closing Los Angeles maintenance
operations
Open houses and open door policy
Burning the manuals
Painting airplane
Spreading the “Go Forward Plan”
13. 13
Working with travel agencies closely
From backpack-and-flip-flop crowd to
coat-and-tie crowd.
Sending letters to corporate CEO’s and
apologizing and inviting
Root expansion
Bethune’s Row 5 test.
14. 14
Renegotiating aircraft lease
payments
Refinance some debts at
lower interest
Postponing some debt
repayment
Refund the Boeing deposit
15. 15
Selling the excess parts in inventories
Code-sharing agreements with other
airlines
New CFO, Larry Kellner, and installing
much stronger financial systems
Insurance policy against unexpected
increase in fuel costs
17. 17
Replaced manual with general guideline
Profit sharing
Create checklist
Importance of teamwork
Toll-free voice-mail number
Company Development
Company intranet and email
Company publication
Bulletin board
Employee meeting
19. 19
Turnaround Strategy, what is it?
McDonald , 2000-2003, Jack Greenberg
Kraft Foods , 2004-2007, Irene Rosenfeld
IRIS, 1379-1384, Mr. Afkhami
20. 20
8. Consolidate gains an
produce more change
7. Anchor new approaches in
culture
6. Empower Employees for broad-based
action
5. Generate the short term Wins
4. Create the guiding Coalition
3. Communicate the Change Vision
2. Develop the Change Vision and Strategy
1. Establish a Sense of Shared Need and Urgency
Unfreezing
Moving
Refreezing
21. 21
1. Review and Assess the Present Situation
2. Develop Plans and Business Strategy
3. Communicate With Key Employees
4. Communicate With Other Employees
5. Meet the Bank
6. Meet Customers
7. Meet Suppliers
8. Cash Conservation
9. Implement New/Update Systems and Procedures
10. Monitor, Measure and Take Action
22. 22
In a business turnaround it is important
to understand fully the starting position.
Bethune had 10 days before his Go
Forward plan
23. 23
It will be necessary to develop robust
plans and strategy that will achieve
success.
24. 24
It will be necessary to meet
with managers and key
personnel
Members of this group will
critical to the success of the
business turnaround.
25. 25
It will be necessary at the
earliest opportunity to
meet with all employees or
their union representatives,
particularly if job losses are
planned.
26. 26
The bank and other parties
with a financial investment in
the business should be
advised of the business
turnaround plans.
If possible meetings should
be arranged to discuss the
plans and to seek assurances
of continued, and maybe,
more support for the
business.
27. 27
This action should be considered mandatory if
the cause of the business demise has been
poor customer service, poor quality product or
any other matter not meeting the expected
customer satisfaction levels.
Begging for a second, third or even fourth
chance to ‘get things right' may be
embarrassing but remember: no customers -
no business.
28. 28
Re-establishing trust will be critical.
Negotiating new or even the
continuation of existing, payment terms
from a weak position will be difficult,
however, all promises made should be
honored or if failure is imminent inform
the vendor in advance of how any debt
will be discharged.
29. 29
If possible negotiate extended payment
terms to suppliers; examine thoroughly
all unused assets of the business and
liquidate if necessary.
selling unused buildings, renting out
spare office space, selling unused plant
and office equipment, disposing of excess
or redundant stocks, factor sales debt
and if unavoidable make excess
employees redundant.
30. 30
a continuation of old practices
will almost certainly result in
the same old results.
Positive and profitable change
may be required and this
should be communicated to
employees, so that they
understand their roles in the
new business environment.
31. 31
results should be regularly
measured against plan and
corrective actions taken if
required.
Key performance indicators
(KPI) should be determined
that will give a snapshot of the
business performance and be
available on a daily, weekly or
monthly basis.
35. 35
1. It is a top-down reflection of the company’s
mission and strategy
2. It is forward-looking
3. It integrates external and internal measures.
4. It helps you focus
Linking measurements to strategy is the heart
of a successful scorecard development process
Robert S. Kaplan and David P. Norton, Putting the Balanced Scorecard to Work,1994
36. 36
1. If we succeed with our vision and strategy, how will
we look different
to our shareholders and customers?
in terms of our internal processes?
in terms of our ability to innovate and grow?
2. What are the critical success factors in each of the
four scorecard perspectives?
3. What are the key measurements that will tell us
whether we’re addressing those success factors as
planned?
Robert S. Kaplan and David P. Norton, Putting the Balanced Scorecard to Work,1994
37. 37 Robert S. Kaplan and David P. Norton, Putting the Balanced Scorecard to Work,1994
38. 38
Robert S. Kaplan and David P. Norton, Putting the Balanced Scorecard to Work,1994
39. 39
بستن مرکز
تعمیرات لس
آنجلس
کاهش
هزینه ها
بستن
contine
ntal Lite
خارج کردن
Airbus
300
Code-sharing
عدم
استخدام
نیروی جدید
اثربخش ی
عملیاتی
بیشتر
هماهنگی و
همکاری
بیشتر
کارکنان
گسترش
مسیرهای
تخفیف برای هوایی
پرسفرها
درآمد
زایی
افزایش
قیمت برای
برخی مسیرها
تلاش برای
بازگرداندن
مشتریان
قدیمی
افزایش
رضایت
مشتریان
refinanc
ing
افزایش مدت
بازپرداخت
وام ها
جذب
مشتریان
جدید
Profitability
40. 40
عذرخواهی از
مشتریان
سابق
افزایش
رضایت
مشتریان
سیستم
پاسخگویی
تلفنی
تلفن داخل
هواپیما
ایجاد سایت
رزرو بلیط
بهبودامنیت
بار غذاهای
جدید
زمان بندی
پرواز مناسب
پروازهای به
موقع
یافتن
مطلوبات
مشتریان و
ارایه آن ها
ایجاد تجربه
پرواز
خوشایند
41. 41
ایجاد هماهنگی
بین واحدها و
آموزش کارگروهی
کارکنان
Operational
Effectiveness
Alliance
سیستم
ارزیابی
کارکنان
انگیزش
)پاداش( تخصیص
هواپیماها به
مسیرهای پر سود و
حذف مسیرهای کم
مسافر
Code
sharing
کاهش هزینه
های عملیاتی
چک لیست
های عملیاتی
بهبود حمل و
نقل بار
بررس ی
مجدد
مسیرهای
پرواز
42. 42
چشم انداز
مشترک
ایجاد رضایت،
انگیزش و تعهد
در کارکنان
کار گروهی
آتش زدن رویه
ها و آزادی
عمل
جلسات
متعدد
جشن ها و
مهمانی ها
اطلاع رسانی
گسترده روزنامه و نشریه و
LED بولتین و
در سالن های
شلوغ
تلفن مستقیم
به مدیر عامل
فرهنگ
احترام
تشویق به
حضور کامل
اینترانت
خط آزاد و تیم
حرفه ای برای رفع
مشکلات
Profit-sharing
43. 43
Employee
involvement
Employee
Satisfaction
& motivation
Reliability
More
customers
Service
improvement
Operational
excellence
New roots &
services
Cost
reduction
Increased
revenue
survive
Debt
reduction
G&L Process Customer Financial
