The Academic Report of British Airways

Topics: Management, Leadership, Strategic management Pages: 7 (2427 words) Published: December 5, 2013
Northumbria University
The Academic Report
British Airway’s Change Program

Contents
Contents2
Introduction3
The Core Issues in BA3
The Eight-step Change Process3
Change Leadership5
Change Readiness6
Resistance to Change and Strategies7
Stakeholder Analysis7
Organizational Variables Impacting on Change8
Specific Concerns and Problems8
Managerial Challenges9
Advised Approach9
Conclusion10

Introduction
The dispute between BA management and Cabin Crew from 2009 to 2011 caused extensive impact throughout the global condition. BA totally lost £150 million and the brand reputation had been affected seriously. It meant that BA has some problems about its change management. This academic report contains four parts. The first part will use theoretical frameworks, such as the eight-stage change process from John Kotter and situational leadership to discuss BA’s strategic changes and change management strategy. The second part analyses specific concerns and problems from BA management's point of view. After that, claiming the managerial challenges as experienced or encountered in this problem that will be related to theoretical explanation, and suggesting approaches for overcoming resistance to change, dealing with anxieties, and supporting the implementation of change strategy.

The Core Issues in BA
The Eight-step Change Process
John P. Kotter (1996) introduced his theory, the eight-step change process, in his book, and is widely used for transformational top-down change initiatives by many multinational companies. He said that most of changes happened difficultly and cost a period of time to achieve. The theory was designed to alter strategies and reengineer processes. The core issue about strategic changes and change management strategy in BA was the dispute that happened from 2009 to 2011. It was caused by BA’s strategy for reducing Cabin Crew members on long-haul flights and introducing a two year-long pay freeze in October 2009, and brought tremendous losses on money, passengers, employee relations and brand reputation for BA. Establishing a sense of urgency—Kotter thought that the change would be failed if most of employees and managers did not have a sense of urgency and needs for change. The companies could build it through identifying potential threats, examining opportunities, giving dynamic reasons to employees, discussing, and getting support from other stakeholders. According to BA’s annual report (2010), BA was facing the threats from strong competition and financial crisis. In addition, BA had serious pension deficit. Although BA management found the potential risks and uncertainties of these threats, but no news or report showed that BA management communicated with its crew members about these problems they had. Creating the guiding coalition—strong leadership and visible support from top management or key people in the organization are necessary in change management. The leaders who have influence on the rest of employees are throughout the organization. Chairman, Martin Broughton (2010) claimed that he and other stakeholders supported to make the plan for reducing cost in the annual report. Developing a vision and strategy—at the beginning of making change strategy, people will probably have a number of great ideas and solutions. People can grasp the strategy easily if the ideas and solutions link to an overall clear vision, so that they can understand the goals and accept the strategy. Although BA had developed a clear vision to explain the reason and plan for reducing costs, but the objectives and measures of BA were different from crew member and the plan eventually caused dispute. Communicating the change vision—the actions after creating the plan will determine if the plan achieves great success or not. Therefore, frequent and strong communication is important. It makes sure that employees implement the strategy correctly, and they expect that the company can...

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