Consulting Proposal One Consulting Proposal One In this assignment you are to serve as a consultant to a company of your choice in one of the cases presented injick and Piper (2011). As such, you are to provide recommendations to the company in the various leadership and change concepts gained in the course. You are to present a proposal that is no less than 1000 and no more than 1500 words in length in this assignment you are to serve as a professional consultant and demonstrate your proficiency at providing guidance to an organisation undergoing change your proposal should be very clear, concise and focused The basic format of your proposal is to follow the basic structure which includes seven sections below 1. Introduction 2. Definition of the project 3. Diagnosis of current situation 4. Recommendations 5. Implementation plan 6. Summary 7. Reference section Each student wil write a 1000-1500 word consulting proposal which will focus on the content presented in the assignment instructions. The first consulting proposal will be submitted in week two of the term. The second consulting proposal will be submitted in week six of the term. Sources used for consulting proposal are to be the text and a minimum of five peer-reviewed articles. Due no later than 11:59 PM at the end of week three ze w Singapore needs CUSTOMER'S trip that his wife we were in with the two small child 4 JOURNEY SINGAPORE AIRLINES place Cining Service Improvement Denver walked up to the Singapore innes Rames Class (Business Class) JOURNEY in counter, pushing a trolley piled Agint with multicolored pieces of lug. The golf clubs, scuba gear and the Aty push chair lay on top. Five-year- 1 alongside. Marsha Denver was behind, slowed down by toddler de could barely stand. At the counter, nie who insisted on walking although the Aeroports de Paris agent in her blue uniform was speaking with a passenger, her face on a level with a soft-colored ar- The Denver family moved to the counter. "Good afternoon. Flying to with us, they come with high expect a good deal more complicated, combin- saying "Wow! That was something out of ing business for Paul in three Asian loca- the ordinary." Airlines tof exotic flowers. se us to be 06 a discipline er bar ofven ru Turaran Outyd is not to y pogletom Ato B. but to have them in the flight. We're not in the in business, we're in the service is All lines claim this, but the big difference is not in the cities set out by management in the which has wach w either effective or ineffective handling of an bions with a holiday on Bali for the family. Denver, a member of several frequent- Singapore Airlines (SIA) had established flyer programs, had already flown Sin itself as the leading carrier in terms of se- gapore Airlines and had been impressed vice. Countless awards--year after year with the quality of the service. He felt across the 80s, 90s and in the new mil- confident that the airline would solve any lennium-testified to its pre-eminence. stressed requires problems that might arise on the six-leg In 2004, the Conde Nast Traveler maga- zine's Readers' Choice Awards named it mired to the world's "best airline" for the 16th time vity to Copyright ( Managing Change, 2nd Edition, by Todd Jick and Maury Peiperl, 2005). Revised March 2007 for Columbia Business School by Marie Bell under the supervision of Professor bod D. Jick. It is intended to be used as a basis for class discussion rather than to illustrate ads developed by the marketing department: It is in the delivery of service. We have a high reputation for service and that means that when someone lies fe stay with ern so con surement ames Glede If into exis ritjof Cap on betwee After years of continuing success, system is t begin to our orga can bring princ "Yap Kim Wah, SIA Senior VP, Product and Service. This information was drawn from Jochen Wirtz and Robert Johnston, "Singapore Airlines: What it takes to sustain service excellence senior management perspective, " Managing Service Quarterly Volume 13, Number 1, 2003. administrative situation 2 VIS A - Modatie Adorin headsets, as well a choice of quality meals 11. As an MBA you cort and unknown motion regarding the student a chance to face Vion of what the companys w the har Alad action of the or the two-letter airline code SO our people that an SQ flights explained a Ground Services Serie an ordinary night, it's a quality live Manager. At the outset SIA mestie network and a small cos two million, few of whom cord wir air travel. The Singapore govern in the airline cay of its MvlMast base among Singapore's population made it clear that the airline had on its own feet: although a flag car, oppo According to a favorite piece of con Anti Medis pany lore, the first flight of SIA's protect sor, Malayan Airlines, from Singapore smiling hostesses and on-board technol- road near Ipoh in Malaysia in 1947, the beginning of inflight service the pilar, competitive advantage. Additionally, in picked up a thermos flask of iced wat mocent years, low cost carriers (LCCs) from under his seat and passed it around to had emerged with a lower priced option his five passengers. A few years later, the alle delivery on SIA's service prom- carrier was the first to offer free drinks and rior service as its only possible source figurine was changed every 18 months, the of competitive advantage. "We selected constant attention to training had turned would receive no an appropre was pop the organ ve years. Unlike many in rational airlines, SIA had retained its puliarity significant fear in the face SARS the climate of terrorism thar had impacted air tel. Indeed. In 2004, maganie hand ranked SIA second Curvey Har SIA could not rest on its lau. els with varying degrees of success, ral carriers were emulating its preoc- wie with service to lure and retain high spending business travelers in an in- prored Valgrethe creasingly competitive market. Many em- phasized the gourmet food, vintage wines, ogy that were the cornerstone of SIA's canless pros spolicy laws. le light and ar atracts, row aller ise was even more important. SIA saw that continuous service im- provement was the only way to retain its supremacy. Its management recognized that passengers, to the extent they were still willing to pay a premium for service, expected ever more for their money- especially from SIA. Moreover, service had to progress while expansion contin- ued-industry estimates suggested 5-8% annual increase in revenues with a 5% in- saltough the all the airline ar contracte toy reached asagapore, Deyoung wome crease in net profit in the years after 2003. SIA planned to achieve its goals with a "hree pillar" strategy of superior inflight service, the most modern fleet, and out- standing ground service for economy class passengers. The slim, impeccably groomed flight attendant in traditional Malay costume smiled at the Denver family as they entered the aircraft and quickly glanced at their boarding cards. "Good afternoon, Mrs. Denver," she said "Let me show you to your seats." "Isn't she pretty?" Marsha whispered to Tamara. "Do you remember this dress?" She was pointing to the long-skirted sarong kebaya, a figure-hugging outfit made of flowery batik cloth. Designed by Pierre Balmain, it combined the charm of traditional Asian wear with the elegance of French haute couture. But Tamara looked uncertain. "Of course you remember!" said Marsha. "We saw it at Madame Tussaud's!" factul but prec but the aisle w "Would Yes. Denver?" "Be ca tly unaye ON BOARD: "INFLIGHT SERVICE OTHER AIRLINES TALK ABOUT" From the 1970s on, SIA had seen supe- was of chas Tests While the face of the 'Singapore Girl re de an 50 ir attendants into symbols of shortly wherwud, to the chi grace and hospitality. So was the "Singapore Girl' ad- marthar Madame Tussauds, Museum, had chosen it as or international travel. And the whether they needed help with ar most Singapore souvenir By the Janice was philly. most as popular as the Girls was indication that the night "THE MOST MODERN FLEET y were also emblems of the Aqual opportunities, wasn't A Mas a professional woman who she approved of the Singapore Compralogether. SIA night had to retire before they unless promoted to a higher A his policy would be illegal in Western countries because of age Female flight attendants were given pe pour contracts, with a maximum of contracts, and were not taken back si crew after they had given birth to chil, although they could find a ground d with the airline. Stewards were regu. of contract, employees and worked they reached the normal retirement sy gripes about the smiling steward who, Airbus 380, one of the world's biggest say round Serv lots of games and ways. Nach (a choice of the main desserts, fresh fruits, meches, ponto a queur), he came back to supere's you of whom ingapore yoga a face vorite pie ab of Siksple bsidives. from Sim laysia in 1947 h service the Vask of As Marsha Devet te down for the 13-out, non opinto Singapore, she wurveyed appreciatively the newly-fined Radles Class chin with its tasteful decor and its de shades of purple. She was ning on the top deck of a Boeing 747-450 passed to ew years, fer free din of quality mula scrimination laws. gers. Neither of the Denvers, however, had est fleets. SIA was slated to fly first the a The young woman's gestures were graceful but precise as she advanced down the aisle with a tray of scented uwels "Would you like a hot towel, made Mrs. Denver?" she asked. And to d by Tamara: "Be careful, you could burn charm your hands!" But Paul Denver was nildly annoyed when she woke him - Bat up some minutes later to offer him a glass of champagne. The flight atendant seemed to follow established procedures rather automatically, oblivious to the fact that he was asleep. "Megatop,' the fastest 747 with the largest stretched upper deck. Not quite as glamorous as the supersonic Concorde that SIA used to fly on the London-Bahrain Singapore toute in the 1970s, but nonetheless very comfortable, she thought. "No wonder Singapore Airlines comes so often on top in magazine surveys" she remarked to her husband as she activated the comfortable, 60-degree leg test, with adjustable calf support, and stretched her legs across the 42-inch pitch. SIA was the world's largest operator omed flight alay costume y as they ckly ards. "Good said "la are in Singapore as rong of Boeing 777 planes with 58 in opera- tion and another 31 either on option of firm order. The 747-400, the jumbo jet's fourth generation, played a crucial role in the expansion of airlines from the Asia- Pacific region. In 2004, SIA broke its own record for the world's longest com- mercial flight flying from Singapore to New York City. In March 2005, SIA's pas- e SI senger fleet was composed of 89 aircraft. Because it frequently brought in the lat- est models, the average age of SIA's air- craft was five years and four months and remained one of the industry's young- tumu MAP went wrong. And while inflight service pot 2017 AMBAYO mongarding Oppers soon find out about that he had. Ons parande e Services. We're with you all die w FS19 sed with SIA'S previous leg. at Manila Airport. De (nis World asked to have one bag se to and the rest of his luggage en Den The SIA supervisor had gone to go Ent) that included 104 TV and checked in at the left weg to oblige, sending an e-mail to Swo and do his Because it Changi Airport to ask staff there to the bag. carry it to the security che area for a bomb search, and fmally check Attention to service "on the ground was SIA's most ambitious pillar, daling back to the late 80s. The Outstanding Set far. This was business people could keep vice on the Ground (OSG) campaign was launched, focusing on improving services ale computers and transmit data to their tantly, at each airport SIA flew to Making market prices as well as work on their por reservation, ticket offices and, most pot companies or to customers on the ground customers' perception of ground service as positive as their perception of inflight service was a challenge. Typically. passen gers interacted with sales or check-in staff for a few seconds or minutes, and tended to remember them only when something in at the left luggage . of the s movies interactive games 12 channels. Although tempted use the entertainment system, Paul wa mediately visible, he asked the halflight attendant, recognizable in her drink where the power outlet was a Directing Poul to the location, shell Paul that the flight had access a high speed internet access for a nominal 10.000 8000- up to date with stock exchange or money 6.000- 4.000 2.000 which declared "Singapore Airlines Ground ciples: "Show You Care' through body was provided by Singapore-based staff recruited, trained, motivated and rewarded by SIA, ground service was provided by handling agents spread across 70 stations around the world. These were often direct competitors (for example, British Airways now at Ngurah Rai airport in Denpasar, handled SIA flights at Heathrow Airport). checking in for a one-day layover in Each airport unit was given standards Singapore on their way back to Paris. Paul Denver pointed first to a single in terms of punctuality, baggage handling, brown leather suitcase, then to the speed and friendliness of check-in, efficiency jumble of bags and sports gear on the of seat assignment, number of compliments cart "This one we'll need in Singapore and complaints from customers and profes- tomorrow," he told the check-in officer. sionalism in handling delays. An additional standard for Changi, the region's largest hub, was efficiency of transfers. At every airport, the station manager was held accountable for achieving these standards, awards were The campaign inculcated three prin- without loving their seat. An astounded Paul immediately logged on "OUTSTANDING SERVICE ON THE GROUND" The holiday on Ball had been a success. The children had enjoyed the white sandar Sanur beach while their parents watched temple ceremonies and the popular yang kulit Balinese shadow plays or bought batik in countless patterns and colors. The Denvers were 2.C 5 Million "But everything else we'd really prefer to check in through to our Paris flight." The agent replied, "T'm not sure we can do this. I'll have to ask the supervisor." While they waited for him to return, given to stations which did well. Paul Denver gazed at the poster on the wall Care, and "Be Service city interest and atten- INGREDIENTS OF which meant displaying motivational seminars, And customers' expecta reminders and rein- hh monthly reports by as well as monitoring and As carrying slogans such Ay" or "An Impossible sation in these charts for 2000-01 and prior years show the combined results of both passenger and cargo operations. The numbers for 2001-02 include cargo operations for the first three months he a dedicated newsletter,ity tables as s pre-ta profit tone from a Dipused Opportunity dee. Modules Coches SUCCESS The three pillars all contributed to SIA's undeniable prosperity. For years the airline had topped carrier profil $69 million in 1983 to 51596 million in 2004/2005, despite the company's firs ever loss: $312.3 million in the first quarter of 2003/2004. (See Exhibit 1 for ten-year profitability trends.) Behind this ce on the dous pillas, pe Oancing SG) cm and more flew to Make ground ption of in Company Revenue and Expenditures 10,000 10,000 8.000- 8.000 Million 6.000- pically. pues check- es, and the sen something flight service 6.000 $ Million 4,000 4,000 2,000 e-based stali and rewarded provided by 70 station 95 96 97 98 99 00 01 02 03 04 2,000 96 97 98 99 00 01 02 03 04 05 -- Revenue - Expenditure Company Profit Before and After Taxationi 2.000 often direct h Airways 2.000 1,500 - 1,500 Airport). ) standards handling efficiency $ Million 1.000- 1.000 S Million 500 500 bliments profes- Hitional 0 0 est hub part table 95 96 97 98 99 00 01 02 03 04 96 97 98 99 00 01 02 03 04 05 Profit after taxation Profit before taxation la caryo was corporatised on 1 July 2001. Company revenue, expenditure, profit before and after it ndy only (April to June 2001). continued and systematically developed the STAR alliance (a global work of policies and practices - These included long-tes), thereby offering te principles such as long global distribution. It reaped advantages dy growth, a diversified that included sales benefits from deve Wadecision to stick to core ALCY OF STEADY GANIC GROWTH We would lead to an industry tions was to protect SLA's idiosyncratic wg ar SIA rejected the idea that of a handful of mega-carti culture, which managers saw as a hybrid Arthur SIA would grow too fast, and a few miche players. They were nerally suspicious of acquisitions gional crossroads. "The Singapore Girl is SIA's strong cash position. "Our is to continue to operate a success. Bain," said an SIA executive. "If we grow to do that, we grow. But we er out to be a mega-carrier. Be- of its long-term vision, SIA did not the slumps and bumps in the busi- travelers, since English is Singapore's of what one senior manager described barrier when talking with international Modul 6 Ch 541 In 2000, SIA became a member of tailed schedules, and savings from shared offices. A STRONG CORPORATE CULTURE One reason not to grow through acquisi of East and West reminiscent of the for mer colony's long-standing role as a re- and helping attract visitors ground facilities and sales and check-in cle" disrupt its investment plans. It ficial language," remarked SIA's Person- nent to employees, technical prowess and with the same culture, attitudes and moti- ried to diversify its network so as not to nel Director the dependent on any one market or route, The importance of the Chinese Confu- remained focused on its core activ- cian ethic of filial piety and deference for sariation and its supporting services. hierarchy was limited. "We expect loyalty Though the early part of the new century, to the company and the country," said an- SIA weathered the effects of terrorism, other personnel executive. "But we don't the impact of SARS and the rise in fuel give seniority a lot of value. People move costs and became known as one of the up according to performance. Singapore in most effective hedgers of oil. general operates on meritocracy. And a lot 'We wish to retain our individuality," of our operations are overseas; inevitably suid Joseph Pillay, SIA's chairman in the we imbibe a lot of Western values." cany 1990s, "and to expand at a measured However, the majority of SIA's employees pace that permits us to retain those essen- were Singaporeans with shared values and dal qualities that have made SIA one of concerns, and SIA's management saw the de foremost carriers in the world in terms importance of this unity. "We are a cohe- w quality of service, depth of commit sive group and we work together as a team a cross between Western and Asian flight attendants. Typical Western service is lots of communication and talk while Asian service is shy and distanced. Our people are fairly confident and they are unique in Asia in not suffering from a language francial strength vation," said one senior executive. gram and an OSG seminar which wert RECRUITMENT The service required total com wall front-line' stall, whom SIA was its interface with passen pers and greatest asset. "The only way to granice that customers are satis ed is by making sure that those who wful they ca encompassed functional eral management skills. The seven training schools de ar fins childre core functional areas of can operations, commercial training rity, airport services trainingen ing. The general management Cabin crew underwent a to were them are satisfied with their jobs driven by the SIA Management full-time course, longer than one and have a positive attitude, explained ment Center vided by SIA's competitors. While the importance of technical and cabin service, one SIA EXECUTIVE crew against becoming over-depen marker. Berween 1972 and 2005 the staff procedures. "Of course we need good tems and procedures," he said. "What 13.600. Hiring the right front-line stal has distinguished us from other side these years is the human touch." The was taught little tricks such as em was highly selective. Applicants, who had ing the names of Raffles Class and Fas Class passengers at boarding, or ling to spot which flyers wanted to chat The Commercial Training department try to eliminate uncertainty, a psychologtrained SIA staff and handling his around the world. All new front-line sultants to determine the service aptitude ground staff attended an orientation pro which wanted to be left alone. cal test known as the System was developed with outside con- we themse champion storming we in the and even bc SIA'S a senior manager. He continued. A key element in a service-minded organiza tion is the motivation of the employee." Bur years of growth presented SIA with a major challenge when it came to re- cruiting in Singapore's dwindling labor ingey c had grown from 6,200 to an average of year. Approximately 70% of SIA's train. This information was drawn from Wirtz and of applicants. "Character molding and held in Singapore and in regional Centers positive mental attitude are essential com- ponents of a successful cabin crew." "The very three months. Within one year an new staff went to Singapore for product explained the Director of Marketing Ser training. "We teach the staff that custom vices. "That means being attentive. This ers are our bread and butter," explained a training manager. "We say things like, is something people must have in them to begin with; you can't change attitude. "Don't think of customers as nuisances That's why SIA has the PPS test." They are our employers.' We tell them to be customer champions." TRAINING The methods used included experiential SIA continually reinforced its service case studies of real-life situations, and learning such as problem-solving games, emphasis with ongoing training initia- role-playing, where staff were asked to was thus a major priority. Recruitment of cabin crew in particular eving co wd to be Ar example lined its se duced at ar cond to be under 25, were screened for a posi- tive attitude towards work, good appear- ance and posture and language skills. To motions action is cols tha of 13-14 high servi uken, S ible and develop stion de The w when Singa to be 0 "Tra and also sale of tives, training about 9,000 people per an ing courses were held in-house. Training Johnston, 2003. W al wind s. The company s delivering in the cain crew, Avrug. ning under e Vck Hng Creating new produce to take me to make things bewie Texible e non dico which, while too, ways to agement Develop ent a four- than those peo yrs. While ting nical aspects of xecutive wat One cabin crew director interviewed rer-dependent on need goods said. "But what other airlines all uch." The crew has memoria TCS has led to a cong by giving cabin crew monex Competits chute but they can't wait "how we think Class and First eg. or learning d to chat and in want-me flyer, or a mother children. There was 'rescript. Its goal was to empowers es in the shoes of a frequent proces proceso y participants were told to themselves that they were cu hans. Training also involved grade). I was workin with staff asked to think Singapore. And it was weety Whey could do to solve an actual lot of mong their station. Outdoor activi- hoof camp training were also large comments SI48 varied training resources. 2 for a description of an OSG described TCS: stall training. SIA faced the contradictory challenges of consistency of service with the e flexible in providing service. or cumple, SIA extensively tested and is service procedures before it in- conducted research, ran time and Particular attention was paid to the field any change. Performance man- LEADERSHIP DEVELOPMENT A studies, and assessed customer commanders': front-line supervisors. By order to develop service pro- motivating them and instilling leadership that would allow cabin crew teams qualities into them, SIA believed it could 13-14 people to deliver identically facilitate the handing down of its distin service every time. But by the same tive culture to a new generation of stall SIA wanted its people to be flex- An ambitious development program for and creative so that they were able to senior cabin crew was aimed at making islop solutions when an unusual situ- them feel that they were part of manage This information and quote were drawn from at custom- explained hings like nuisances I them to Nitz and Johnston, 2003 esc 3 department Hling agents front-line ntation pro- which were anal centers ne year all For product tab in developed. As one executive noted, ment, and at boosting their commitmen. The worst thing about service delivery is A similar program, "Take the Lead; was les everybody just follows the book. I developed for ground service supervisors. sunt them to be flexible and creative. In "We're training them to be OSG icaders, 10 Singapore there is a tendency for people play a more active role and provide better be too regimented in their thinking." guidance to their subordinates," explained One recent initiative was called a Customer Affairs manager. "We don't Transforming Customer Service (TCS)" want them to depend on head office. We ad involved not just cabin crew, but want them to take the initiative." Being a do engineering, flight operations, and service entrepreneur meant being asertive als support. Within the initiative, 40% d resources were allocated for training and motivating staff, 30% for reviewing caps loc periential 3 games, and resourceful, he said. "We say to them, "There will always be opportunities for you, in your dealing with customers, to ons, and asked to shift 4 * "What Makes Singapore Airline a Service Champion, Strategic Direction, April 2003. fn Consulting Proposal One Consulting Proposal One In this assignment you are to serve as a consultant to a company of your choice in one of the cases presented injick and Piper (2011). As such, you are to provide recommendations to the company in the various leadership and change concepts gained in the course. You are to present a proposal that is no less than 1000 and no more than 1500 words in length in this assignment you are to serve as a professional consultant and demonstrate your proficiency at providing guidance to an organisation undergoing change your proposal should be very clear, concise and focused The basic format of your proposal is to follow the basic structure which includes seven sections below 1. Introduction 2. Definition of the project 3. Diagnosis of current situation 4. Recommendations 5. Implementation plan 6. Summary 7. Reference section Each student wil write a 1000-1500 word consulting proposal which will focus on the content presented in the assignment instructions. The first consulting proposal will be submitted in week two of the term. The second consulting proposal will be submitted in week six of the term. Sources used for consulting proposal are to be the text and a minimum of five peer-reviewed articles. Due no later than 11:59 PM at the end of week three ze w Singapore needs CUSTOMER'S trip that his wife we were in with the two small child 4 JOURNEY SINGAPORE AIRLINES place Cining Service Improvement Denver walked up to the Singapore innes Rames Class (Business Class) JOURNEY in counter, pushing a trolley piled Agint with multicolored pieces of lug. The golf clubs, scuba gear and the Aty push chair lay on top. Five-year- 1 alongside. Marsha Denver was behind, slowed down by toddler de could barely stand. At the counter, nie who insisted on walking although the Aeroports de Paris agent in her blue uniform was speaking with a passenger, her face on a level with a soft-colored ar- The Denver family moved to the counter. "Good afternoon. Flying to with us, they come with high expect a good deal more complicated, combin- saying "Wow! That was something out of ing business for Paul in three Asian loca- the ordinary." Airlines tof exotic flowers. se us to be 06 a discipline er bar ofven ru Turaran Outyd is not to y pogletom Ato B. but to have them in the flight. We're not in the in business, we're in the service is All lines claim this, but the big difference is not in the cities set out by management in the which has wach w either effective or ineffective handling of an bions with a holiday on Bali for the family. Denver, a member of several frequent- Singapore Airlines (SIA) had established flyer programs, had already flown Sin itself as the leading carrier in terms of se- gapore Airlines and had been impressed vice. Countless awards--year after year with the quality of the service. He felt across the 80s, 90s and in the new mil- confident that the airline would solve any lennium-testified to its pre-eminence. stressed requires problems that might arise on the six-leg In 2004, the Conde Nast Traveler maga- zine's Readers' Choice Awards named it mired to the world's "best airline" for the 16th time vity to Copyright ( Managing Change, 2nd Edition, by Todd Jick and Maury Peiperl, 2005). Revised March 2007 for Columbia Business School by Marie Bell under the supervision of Professor bod D. Jick. It is intended to be used as a basis for class discussion rather than to illustrate ads developed by the marketing department: It is in the delivery of service. We have a high reputation for service and that means that when someone lies fe stay with ern so con surement ames Glede If into exis ritjof Cap on betwee After years of continuing success, system is t begin to our orga can bring princ "Yap Kim Wah, SIA Senior VP, Product and Service. This information was drawn from Jochen Wirtz and Robert Johnston, "Singapore Airlines: What it takes to sustain service excellence senior management perspective, " Managing Service Quarterly Volume 13, Number 1, 2003. administrative situation 2 VIS A - Modatie Adorin headsets, as well a choice of quality meals 11. As an MBA you cort and unknown motion regarding the student a chance to face Vion of what the companys w the har Alad action of the or the two-letter airline code SO our people that an SQ flights explained a Ground Services Serie an ordinary night, it's a quality live Manager. At the outset SIA mestie network and a small cos two million, few of whom cord wir air travel. The Singapore govern in the airline cay of its MvlMast base among Singapore's population made it clear that the airline had on its own feet: although a flag car, oppo According to a favorite piece of con Anti Medis pany lore, the first flight of SIA's protect sor, Malayan Airlines, from Singapore smiling hostesses and on-board technol- road near Ipoh in Malaysia in 1947, the beginning of inflight service the pilar, competitive advantage. Additionally, in picked up a thermos flask of iced wat mocent years, low cost carriers (LCCs) from under his seat and passed it around to had emerged with a lower priced option his five passengers. A few years later, the alle delivery on SIA's service prom- carrier was the first to offer free drinks and rior service as its only possible source figurine was changed every 18 months, the of competitive advantage. "We selected constant attention to training had turned would receive no an appropre was pop the organ ve years. Unlike many in rational airlines, SIA had retained its puliarity significant fear in the face SARS the climate of terrorism thar had impacted air tel. Indeed. In 2004, maganie hand ranked SIA second Curvey Har SIA could not rest on its lau. els with varying degrees of success, ral carriers were emulating its preoc- wie with service to lure and retain high spending business travelers in an in- prored Valgrethe creasingly competitive market. Many em- phasized the gourmet food, vintage wines, ogy that were the cornerstone of SIA's canless pros spolicy laws. le light and ar atracts, row aller ise was even more important. SIA saw that continuous service im- provement was the only way to retain its supremacy. Its management recognized that passengers, to the extent they were still willing to pay a premium for service, expected ever more for their money- especially from SIA. Moreover, service had to progress while expansion contin- ued-industry estimates suggested 5-8% annual increase in revenues with a 5% in- saltough the all the airline ar contracte toy reached asagapore, Deyoung wome crease in net profit in the years after 2003. SIA planned to achieve its goals with a "hree pillar" strategy of superior inflight service, the most modern fleet, and out- standing ground service for economy class passengers. The slim, impeccably groomed flight attendant in traditional Malay costume smiled at the Denver family as they entered the aircraft and quickly glanced at their boarding cards. "Good afternoon, Mrs. Denver," she said "Let me show you to your seats." "Isn't she pretty?" Marsha whispered to Tamara. "Do you remember this dress?" She was pointing to the long-skirted sarong kebaya, a figure-hugging outfit made of flowery batik cloth. Designed by Pierre Balmain, it combined the charm of traditional Asian wear with the elegance of French haute couture. But Tamara looked uncertain. "Of course you remember!" said Marsha. "We saw it at Madame Tussaud's!" factul but prec but the aisle w "Would Yes. Denver?" "Be ca tly unaye ON BOARD: "INFLIGHT SERVICE OTHER AIRLINES TALK ABOUT" From the 1970s on, SIA had seen supe- was of chas Tests While the face of the 'Singapore Girl re de an 50 ir attendants into symbols of shortly wherwud, to the chi grace and hospitality. So was the "Singapore Girl' ad- marthar Madame Tussauds, Museum, had chosen it as or international travel. And the whether they needed help with ar most Singapore souvenir By the Janice was philly. most as popular as the Girls was indication that the night "THE MOST MODERN FLEET y were also emblems of the Aqual opportunities, wasn't A Mas a professional woman who she approved of the Singapore Compralogether. SIA night had to retire before they unless promoted to a higher A his policy would be illegal in Western countries because of age Female flight attendants were given pe pour contracts, with a maximum of contracts, and were not taken back si crew after they had given birth to chil, although they could find a ground d with the airline. Stewards were regu. of contract, employees and worked they reached the normal retirement sy gripes about the smiling steward who, Airbus 380, one of the world's biggest say round Serv lots of games and ways. Nach (a choice of the main desserts, fresh fruits, meches, ponto a queur), he came back to supere's you of whom ingapore yoga a face vorite pie ab of Siksple bsidives. from Sim laysia in 1947 h service the Vask of As Marsha Devet te down for the 13-out, non opinto Singapore, she wurveyed appreciatively the newly-fined Radles Class chin with its tasteful decor and its de shades of purple. She was ning on the top deck of a Boeing 747-450 passed to ew years, fer free din of quality mula scrimination laws. gers. Neither of the Denvers, however, had est fleets. SIA was slated to fly first the a The young woman's gestures were graceful but precise as she advanced down the aisle with a tray of scented uwels "Would you like a hot towel, made Mrs. Denver?" she asked. And to d by Tamara: "Be careful, you could burn charm your hands!" But Paul Denver was nildly annoyed when she woke him - Bat up some minutes later to offer him a glass of champagne. The flight atendant seemed to follow established procedures rather automatically, oblivious to the fact that he was asleep. "Megatop,' the fastest 747 with the largest stretched upper deck. Not quite as glamorous as the supersonic Concorde that SIA used to fly on the London-Bahrain Singapore toute in the 1970s, but nonetheless very comfortable, she thought. "No wonder Singapore Airlines comes so often on top in magazine surveys" she remarked to her husband as she activated the comfortable, 60-degree leg test, with adjustable calf support, and stretched her legs across the 42-inch pitch. SIA was the world's largest operator omed flight alay costume y as they ckly ards. "Good said "la are in Singapore as rong of Boeing 777 planes with 58 in opera- tion and another 31 either on option of firm order. The 747-400, the jumbo jet's fourth generation, played a crucial role in the expansion of airlines from the Asia- Pacific region. In 2004, SIA broke its own record for the world's longest com- mercial flight flying from Singapore to New York City. In March 2005, SIA's pas- e SI senger fleet was composed of 89 aircraft. Because it frequently brought in the lat- est models, the average age of SIA's air- craft was five years and four months and remained one of the industry's young- tumu MAP went wrong. And while inflight service pot 2017 AMBAYO mongarding Oppers soon find out about that he had. Ons parande e Services. We're with you all die w FS19 sed with SIA'S previous leg. at Manila Airport. De (nis World asked to have one bag se to and the rest of his luggage en Den The SIA supervisor had gone to go Ent) that included 104 TV and checked in at the left weg to oblige, sending an e-mail to Swo and do his Because it Changi Airport to ask staff there to the bag. carry it to the security che area for a bomb search, and fmally check Attention to service "on the ground was SIA's most ambitious pillar, daling back to the late 80s. The Outstanding Set far. This was business people could keep vice on the Ground (OSG) campaign was launched, focusing on improving services ale computers and transmit data to their tantly, at each airport SIA flew to Making market prices as well as work on their por reservation, ticket offices and, most pot companies or to customers on the ground customers' perception of ground service as positive as their perception of inflight service was a challenge. Typically. passen gers interacted with sales or check-in staff for a few seconds or minutes, and tended to remember them only when something in at the left luggage . of the s movies interactive games 12 channels. Although tempted use the entertainment system, Paul wa mediately visible, he asked the halflight attendant, recognizable in her drink where the power outlet was a Directing Poul to the location, shell Paul that the flight had access a high speed internet access for a nominal 10.000 8000- up to date with stock exchange or money 6.000- 4.000 2.000 which declared "Singapore Airlines Ground ciples: "Show You Care' through body was provided by Singapore-based staff recruited, trained, motivated and rewarded by SIA, ground service was provided by handling agents spread across 70 stations around the world. These were often direct competitors (for example, British Airways now at Ngurah Rai airport in Denpasar, handled SIA flights at Heathrow Airport). checking in for a one-day layover in Each airport unit was given standards Singapore on their way back to Paris. Paul Denver pointed first to a single in terms of punctuality, baggage handling, brown leather suitcase, then to the speed and friendliness of check-in, efficiency jumble of bags and sports gear on the of seat assignment, number of compliments cart "This one we'll need in Singapore and complaints from customers and profes- tomorrow," he told the check-in officer. sionalism in handling delays. An additional standard for Changi, the region's largest hub, was efficiency of transfers. At every airport, the station manager was held accountable for achieving these standards, awards were The campaign inculcated three prin- without loving their seat. An astounded Paul immediately logged on "OUTSTANDING SERVICE ON THE GROUND" The holiday on Ball had been a success. The children had enjoyed the white sandar Sanur beach while their parents watched temple ceremonies and the popular yang kulit Balinese shadow plays or bought batik in countless patterns and colors. The Denvers were 2.C 5 Million "But everything else we'd really prefer to check in through to our Paris flight." The agent replied, "T'm not sure we can do this. I'll have to ask the supervisor." While they waited for him to return, given to stations which did well. Paul Denver gazed at the poster on the wall Care, and "Be Service city interest and atten- INGREDIENTS OF which meant displaying motivational seminars, And customers' expecta reminders and rein- hh monthly reports by as well as monitoring and As carrying slogans such Ay" or "An Impossible sation in these charts for 2000-01 and prior years show the combined results of both passenger and cargo operations. The numbers for 2001-02 include cargo operations for the first three months he a dedicated newsletter,ity tables as s pre-ta profit tone from a Dipused Opportunity dee. Modules Coches SUCCESS The three pillars all contributed to SIA's undeniable prosperity. For years the airline had topped carrier profil $69 million in 1983 to 51596 million in 2004/2005, despite the company's firs ever loss: $312.3 million in the first quarter of 2003/2004. (See Exhibit 1 for ten-year profitability trends.) Behind this ce on the dous pillas, pe Oancing SG) cm and more flew to Make ground ption of in Company Revenue and Expenditures 10,000 10,000 8.000- 8.000 Million 6.000- pically. pues check- es, and the sen something flight service 6.000 $ Million 4,000 4,000 2,000 e-based stali and rewarded provided by 70 station 95 96 97 98 99 00 01 02 03 04 2,000 96 97 98 99 00 01 02 03 04 05 -- Revenue - Expenditure Company Profit Before and After Taxationi 2.000 often direct h Airways 2.000 1,500 - 1,500 Airport). ) standards handling efficiency $ Million 1.000- 1.000 S Million 500 500 bliments profes- Hitional 0 0 est hub part table 95 96 97 98 99 00 01 02 03 04 96 97 98 99 00 01 02 03 04 05 Profit after taxation Profit before taxation la caryo was corporatised on 1 July 2001. Company revenue, expenditure, profit before and after it ndy only (April to June 2001). continued and systematically developed the STAR alliance (a global work of policies and practices - These included long-tes), thereby offering te principles such as long global distribution. It reaped advantages dy growth, a diversified that included sales benefits from deve Wadecision to stick to core ALCY OF STEADY GANIC GROWTH We would lead to an industry tions was to protect SLA's idiosyncratic wg ar SIA rejected the idea that of a handful of mega-carti culture, which managers saw as a hybrid Arthur SIA would grow too fast, and a few miche players. They were nerally suspicious of acquisitions gional crossroads. "The Singapore Girl is SIA's strong cash position. "Our is to continue to operate a success. Bain," said an SIA executive. "If we grow to do that, we grow. But we er out to be a mega-carrier. Be- of its long-term vision, SIA did not the slumps and bumps in the busi- travelers, since English is Singapore's of what one senior manager described barrier when talking with international Modul 6 Ch 541 In 2000, SIA became a member of tailed schedules, and savings from shared offices. A STRONG CORPORATE CULTURE One reason not to grow through acquisi of East and West reminiscent of the for mer colony's long-standing role as a re- and helping attract visitors ground facilities and sales and check-in cle" disrupt its investment plans. It ficial language," remarked SIA's Person- nent to employees, technical prowess and with the same culture, attitudes and moti- ried to diversify its network so as not to nel Director the dependent on any one market or route, The importance of the Chinese Confu- remained focused on its core activ- cian ethic of filial piety and deference for sariation and its supporting services. hierarchy was limited. "We expect loyalty Though the early part of the new century, to the company and the country," said an- SIA weathered the effects of terrorism, other personnel executive. "But we don't the impact of SARS and the rise in fuel give seniority a lot of value. People move costs and became known as one of the up according to performance. Singapore in most effective hedgers of oil. general operates on meritocracy. And a lot 'We wish to retain our individuality," of our operations are overseas; inevitably suid Joseph Pillay, SIA's chairman in the we imbibe a lot of Western values." cany 1990s, "and to expand at a measured However, the majority of SIA's employees pace that permits us to retain those essen- were Singaporeans with shared values and dal qualities that have made SIA one of concerns, and SIA's management saw the de foremost carriers in the world in terms importance of this unity. "We are a cohe- w quality of service, depth of commit sive group and we work together as a team a cross between Western and Asian flight attendants. Typical Western service is lots of communication and talk while Asian service is shy and distanced. Our people are fairly confident and they are unique in Asia in not suffering from a language francial strength vation," said one senior executive. gram and an OSG seminar which wert RECRUITMENT The service required total com wall front-line' stall, whom SIA was its interface with passen pers and greatest asset. "The only way to granice that customers are satis ed is by making sure that those who wful they ca encompassed functional eral management skills. The seven training schools de ar fins childre core functional areas of can operations, commercial training rity, airport services trainingen ing. The general management Cabin crew underwent a to were them are satisfied with their jobs driven by the SIA Management full-time course, longer than one and have a positive attitude, explained ment Center vided by SIA's competitors. While the importance of technical and cabin service, one SIA EXECUTIVE crew against becoming over-depen marker. Berween 1972 and 2005 the staff procedures. "Of course we need good tems and procedures," he said. "What 13.600. Hiring the right front-line stal has distinguished us from other side these years is the human touch." The was taught little tricks such as em was highly selective. Applicants, who had ing the names of Raffles Class and Fas Class passengers at boarding, or ling to spot which flyers wanted to chat The Commercial Training department try to eliminate uncertainty, a psychologtrained SIA staff and handling his around the world. All new front-line sultants to determine the service aptitude ground staff attended an orientation pro which wanted to be left alone. cal test known as the System was developed with outside con- we themse champion storming we in the and even bc SIA'S a senior manager. He continued. A key element in a service-minded organiza tion is the motivation of the employee." Bur years of growth presented SIA with a major challenge when it came to re- cruiting in Singapore's dwindling labor ingey c had grown from 6,200 to an average of year. Approximately 70% of SIA's train. This information was drawn from Wirtz and of applicants. "Character molding and held in Singapore and in regional Centers positive mental attitude are essential com- ponents of a successful cabin crew." "The very three months. Within one year an new staff went to Singapore for product explained the Director of Marketing Ser training. "We teach the staff that custom vices. "That means being attentive. This ers are our bread and butter," explained a training manager. "We say things like, is something people must have in them to begin with; you can't change attitude. "Don't think of customers as nuisances That's why SIA has the PPS test." They are our employers.' We tell them to be customer champions." TRAINING The methods used included experiential SIA continually reinforced its service case studies of real-life situations, and learning such as problem-solving games, emphasis with ongoing training initia- role-playing, where staff were asked to was thus a major priority. Recruitment of cabin crew in particular eving co wd to be Ar example lined its se duced at ar cond to be under 25, were screened for a posi- tive attitude towards work, good appear- ance and posture and language skills. To motions action is cols tha of 13-14 high servi uken, S ible and develop stion de The w when Singa to be 0 "Tra and also sale of tives, training about 9,000 people per an ing courses were held in-house. Training Johnston, 2003. W al wind s. The company s delivering in the cain crew, Avrug. ning under e Vck Hng Creating new produce to take me to make things bewie Texible e non dico which, while too, ways to agement Develop ent a four- than those peo yrs. While ting nical aspects of xecutive wat One cabin crew director interviewed rer-dependent on need goods said. "But what other airlines all uch." The crew has memoria TCS has led to a cong by giving cabin crew monex Competits chute but they can't wait "how we think Class and First eg. or learning d to chat and in want-me flyer, or a mother children. There was 'rescript. Its goal was to empowers es in the shoes of a frequent proces proceso y participants were told to themselves that they were cu hans. Training also involved grade). I was workin with staff asked to think Singapore. And it was weety Whey could do to solve an actual lot of mong their station. Outdoor activi- hoof camp training were also large comments SI48 varied training resources. 2 for a description of an OSG described TCS: stall training. SIA faced the contradictory challenges of consistency of service with the e flexible in providing service. or cumple, SIA extensively tested and is service procedures before it in- conducted research, ran time and Particular attention was paid to the field any change. Performance man- LEADERSHIP DEVELOPMENT A studies, and assessed customer commanders': front-line supervisors. By order to develop service pro- motivating them and instilling leadership that would allow cabin crew teams qualities into them, SIA believed it could 13-14 people to deliver identically facilitate the handing down of its distin service every time. But by the same tive culture to a new generation of stall SIA wanted its people to be flex- An ambitious development program for and creative so that they were able to senior cabin crew was aimed at making islop solutions when an unusual situ- them feel that they were part of manage This information and quote were drawn from at custom- explained hings like nuisances I them to Nitz and Johnston, 2003 esc 3 department Hling agents front-line ntation pro- which were anal centers ne year all For product tab in developed. As one executive noted, ment, and at boosting their commitmen. The worst thing about service delivery is A similar program, "Take the Lead; was les everybody just follows the book. I developed for ground service supervisors. sunt them to be flexible and creative. In "We're training them to be OSG icaders, 10 Singapore there is a tendency for people play a more active role and provide better be too regimented in their thinking." guidance to their subordinates," explained One recent initiative was called a Customer Affairs manager. "We don't Transforming Customer Service (TCS)" want them to depend on head office. We ad involved not just cabin crew, but want them to take the initiative." Being a do engineering, flight operations, and service entrepreneur meant being asertive als support. Within the initiative, 40% d resources were allocated for training and motivating staff, 30% for reviewing caps loc periential 3 games, and resourceful, he said. "We say to them, "There will always be opportunities for you, in your dealing with customers, to ons, and asked to shift 4 * "What Makes Singapore Airline a Service Champion, Strategic Direction, April 2003. fn