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Navigating Continuous Change in the Airline Industry: Lessons from Northwest and Singapore Airlines

In this lecture, Prof. Steve Phelan explores continuous change within the airline industry, focusing on case studies of Northwest and Singapore Airlines. He discusses key concepts such as change, stability, and renewal, as well as strategies for managing organizational transitions. The presentation examines differing management styles, particularly the effectiveness of leaders like Rothmeier and Dr. Ken. Key considerations include balancing cost control with service quality, adapting to evolving customer values, and maintaining resilience through self-organization and coherent identity.

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Navigating Continuous Change in the Airline Industry: Lessons from Northwest and Singapore Airlines

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  1. Change Management Prof. Steve Phelan Lecture 19

  2. Today • Continuous change in the airline industry • Cases: Northwest and Singapore Airlines • Change, stability and renewal (1999) • LMZ Chs 42-44 • Managing discontinuities (1998) • Seven practices of successful organizations (1998) • The new agenda for OD (1997)

  3. Change, Stability, and Renewal • Jargon • Entropy, closed system, open system, positive feedback, dissipative structure, self-organization, self-reference, autopoiesis, autocatalytic • What is the main point of this article? • “Systems evolve to greater independence and resiliency because they are free to adapt, and because they maintain a coherent identity throughout their history.” • “What endures is process – dynamic, adaptive, creative” • Disturbance triggers self-organization/transformation

  4. Northwest • Use your knowledge of change to contrast Rothmeier and Dr Ken’s styles of change management • Was Rothmeier a good CEO? Was the turbulence handled well? • Was Dr Ken a • What could have been done differently? • For the merger? • For the customer service orientation? • For the unions?

  5. Singapore Airlines • Questions • Can the airline contain costs without sacrificing service? • Were security and service inevitably in conflict? • Could it grow yet maintain its high service standards? • Particularly given values in the new generation • What makes it so different fro Northwest?

  6. Pfeffer • The seven practices are: • Employment security • Selective hiring • Self managed teams • High compensation contingent on performance • Training • Reduction of status differences • Sharing information • Best way of unlocking Vaill’s latent energy?

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