How the British Airways OR Group has changed itself to enable it to change the airline Mark Roper OR43 Bath 2001 Page 2 You must be the change you wish to see in the world Mahatma Gandhi ID: 1038947
Download Presentation The PPT/PDF document "Page 1 From Diggers to Tulips" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
1. Page 1From Diggers to TulipsHow the British Airways OR Group has changed itself to enable it to change the airlineMark Roper OR43, Bath, 2001
2. Page 2"You must be the change you wish to see in the world." -Mahatma Gandhi
3. Page 3The OR change programmeThe OR group at British Airways :is a distinct communityis largehas a reputation for analytical excellenceThe OR group has undergone radical change in the last two years to meet the changing business requirementsThis presentation aims to outline the rationale & mechanism of the change and what we have learnt
4. Page 4The business need for the OR Group to changeThe BA Strategy has changedFor the first time, capacity is decreasingPeriod of increased change which needs to be managed with a reduced headcountOR has needed to change to support strategy and ensure maximum value is added to business
5. Page 5British Airways’ strategy : refocus the businessIncreased focus on premium customersReduce exposure to loss making segmentsDisposal of subsidiaries that do not fit full service strategy
6. Page 6British Airways’ StrategyFleet refinementNew Product DevelopmentNetwork and capacity realignmentSingle hub operation in London
7. Page 7Many potential benefits to BA...Cost baseYields...but has lead to significant change in the working environmentFor the first time, capacity is decreasingThe change in strategy has major effects on BA
8. Page 8BA support functions have needed to adaptTo realise identified benefits of new strategy BA has needed torespond and change quickly to changing business environmentimprove the quality of decision-making throughout the businessremove inefficiencies and overlapping ‘shadow’ organisationsimprove capability of line departments
9. Page 9The traditional OROR have had a reputation for analytical and decision support excellence…. Revenue Management Manpower Planning Inventory Management Scheduling....etc….whilst having a ‘service provider’ relationship part of Information mgt. functional teams budget controlled by line departments grew in an uncontrolled manner
10. Page 10Challenge for ORMaintain analytical and decision support excellence...Maintain leadership in key airline capabilities...whilst changing to meet evolving business requirementsService providerFunctionalDepartmental prioritised portfolioReactiveSkills providerBusiness partnerCross FunctionalBA prioritised portfolioProactiveSkills transfer
11. Page 11OR has responded to the challengeOrganisationPortfolioRolesRelationship with business
12. Page 12OrganisationPart of Strategy directorate, though effectively independentClients do not control budgetIncreased objectivity & remit to challengeCross functional teamsEmphasis on working across directorates rather than for directoratesFlexible resource allocation
13. Page 13PortfolioIntegrated portfolio across ORCentrally prioritisedVisible across whole businessFocused on OR skill set Improved portfolio processesCo-ordination with other support functions
14. Page 14RolesOR AnalystTeam LeaderOR ManagerOR SpecialistExpert SpecialistPrincipal ConsultantStrategic ConsultantLine Placement
15. Core ORDepartmental managementPeople mgtClient & portfoliomanagementProject managementChallenging andinfluencingStrategicthinkingBusiness awarenessOR AnalystSenior OR analystOR Team leaderOR ManagerCapability framework
16. Core ORDepartmental managementPeople mgtClient & portfoliomanagementProject managementChallenging andinfluencingStrategicthinkingBusiness awarenessOR AnalystSenior OR analystOR Team leaderSpecialistOR ManagerExpert OR specialistCapability framework
17. Core ORDepartmental managementPeople mgtClient & portfoliomanagementProject managementChallenging andinfluencingStrategicthinkingBusiness awarenessOR AnalystSenior OR analystOR Team leaderPrincipal OR consultantSpecialistStrategic OR consultantOR Project managerOR ManagerExpert OR specialistCapability framework
18. Page 18Relationship with businessBusiness PartnershipExplicit accountabilityStakeholders involved in prioritising portfolio to business prioritiesRemit to challenge and instigate projectsSupply of talented managers to business
19. Page 19Main effects of the changesOR’s increased objectivity has led to improved cross functional workingOR proactively instigate projectsOR have done projects that wouldn’t have been done beforeOR have increased analytical capability of line areas
20. Page 20What differences have the changes made?OR involved earlier in business decisionsOR now more accountable to the businessCash, capability and decision support targets agreed with stakeholders - gives more focus to OR workRegular OR surveyResponses show key managers increasingly satisfied with ORSupply of managers to lineOR important source of talented line managers
21. Page 21In summary….OR excellence alone is not enough to ensure an excellent OR functionIt is vital to be relevant to the business needsWe wanted to see change in the airline - so we helped make the change!
22. Page 22From Diggers to Tulips
23. Page 23