HR Digest

OCTOBER 17, 2020

Designing incentive compensation structure as a response to the COVID-19 pandemic. In worst hit parts of the world (especially Italy and China) many announcements have focused on compensation reduction for senior executives (especially in the hospitality, automobile and airline industries). When it comes to short-term incentives….

Short-term 52

Short-term Committee Incentives Long-term 52

HR Digest

DECEMBER 26, 2019

Julie Weber, Vice President and Chief People Officer, Southwest Airlines. Julie Weber, Vice President and Chief People Officer, Southwest Airlines. Julie Weber passionately believes in the Employee First philosophy of Southwest Airlines that has made it one of the leading airlines of the United States.

Mayo 98

Mayo Human Resources Airlines Agility 98

Harvard Business Review

APRIL 12, 2017

By now, many of us have viewed the disturbing video of a bloodied man being dragged off of United Airlines flight 3411 from Chicago to Louisville on Sunday. This incident has thrust the common airline practice of overbooking into the spotlight. This helps the airline keep fares lower and provide more flexibility to passengers.

Airlines 10

Airlines Transportation Incentives Travel 10

HR Digest

NOVEMBER 17, 2018

When employees are offered good incentives, it improves their morale and as such creates a productivity culture among them. Southwest Airlines completely depend on employee happiness and advanced commitment through profit-sharing as its tool for employee productivity. Listen to them and make their suggestions to count.

Productivity 69

Productivity Products Metrics Micromanagement 69

Leading Blog

AUGUST 8, 2011

For example: Emphasize One Goal – Gordon Bethune, CEO of Continental Airlines, recognized that his customers valued on-time performance. Incentives alone won’t do it. Based on interviews and first-hand experience, Common Purpose lays out how to achieve and then sustain a culture based on a common purpose.

Leadership 282

Leadership Simon Cooper Gordon 282

Strategy Driven

JUNE 19, 2014

We sent out a survey (which we still do today) to ask our employees about the cleanliness, the temperature in the building, the security, the lighting, the management, the pay, the incentives, the likelihood that they’d leave if another company offered them more money, all-in-all we had about twenty five questions.

Call Center 97

Call Center Incentives Library Document 97

The Horizons Tracker

SEPTEMBER 4, 2019

With the rise of low cost airlines however, shops aren’t the only way you might be fleeced at the airport, and new research highlights how airlines could be using AI to help them price services such as checked bags and seat reservations. “However, not every customer has the same travel and budget needs. Put to the test.

Airlines 60

Airlines Discount Price Travel 60

HR Digest

OCTOBER 6, 2018

Advocates of the FMLA believe that employers don’t have an incentive to create fair workplace standards. Special hours of service eligibility requirements apply to airline flight crew employees. For a startup low on funds, affording more than three months’ salary for no productive work is obtuse.

Learning Curve 40

Learning Curve Training Short-term Competitive Advantage 40

Mills Scofield

APRIL 15, 2014

You had aligned incentives – to create great music and not make fools of yourselves. If I’m going to fly, I have to trust the airline to have sane, sober, skilled, alert pilots. This got us talking about trust – trusting people because of who they are personally vs. who they are professionally.

Efficiency 132

Efficiency Energy Senge Resources 132

Harvard Business Review

OCTOBER 21, 2015

Success on the web is achievable, but it requires adopting strategies from other industries such as airlines and credit cards, which also operate in a more cut-throat, price-focused environment. When you think about it, internet retail today is similar to the airline market before frequent flyer programs were introduced.

Airlines 8

Airlines Retail Loyalty Price 8

Harvard Business Review

APRIL 25, 2016

Airline operations are a huge optimization challenge. Maybe it’s not an exact apples-to-apples comparison, since you can’t break up an airline into multiple moving parts (at least not yet). Consider that the holidays are the busiest time of year for airlines. How does Uber handle the holiday crunch?

Organization 8

Organization Airlines Constraint Power 8

Harvard Business Review

OCTOBER 31, 2016

The second is the use of a status-based incentive program for distributors, with different tiers of benefits and consequences based on clearly published criteria. The closest analogy for this is an airline status program where you earn status based on whether you engage in a defined set of behaviors or achieve certain goals (e.g.,

Marketing 8

Marketing Channel Management Incentives Survey 8

Harvard Business Review

JULY 15, 2015

Small incentives (such as discounts or coupons) can encourage customers to provide this information. For example, if a customer tweets about an upcoming trip but hasn’t yet purchased a flight, the airline can turn to its social CRM program to find out that this person is a priority member, and say, frequently tweets about craft beers.

CRM 8

CRM Company Airlines Guidelines 8

Harvard Business Review

NOVEMBER 21, 2011

But I also know perverse incentives and unintended consequences when I see them. In theory and practice, having your airline or local store quickly acknowledge and respond to constructive complaints can be wonderful. I even believe that complaints are a gift. Brand managers and customer care leaders beware.

Disintermediation 15

Disintermediation Call Center Core Competence Incentives 15

Harvard Business Review

NOVEMBER 17, 2015

Incentives or other extrinsic rewards—individual bonus schemes, promises of nice offices and titles, and other tangible benefits— create transactional relationships , not deep bonds to an employer. Southwest’s profits are larger than the profit of all other airline companies combined.

Company 8

Company Teamwork Commitment Airlines 8

Harvard Business Review

AUGUST 1, 2016

So we partnered with Virgin Atlantic Airways on a field experiment to understand how the behavior of employees—in this case, airline captains—influences fuel efficiency, and how low-cost company interventions can influence their behavior. This was the targets group.

Hawthorne Effect 8

Hawthorne Effect Efficiency Metrics Incentives 8

HR Digest

SEPTEMBER 1, 2020

The initial wave of job cuts were staved off with government stimulation packages and incentives, but with the pandemic prolonging, most government subsidies have lapsed, forcing some corporations to take the drastic step. More than 400,000 airline workers have been fired, or furloughed. million, says a MarketWatch report.

Industry 75

Industry Airlines Retail Banking 75

Harvard Business Review

JUNE 12, 2012

Can you imagine an airline abandoning its frequent flyer program? One way to avoid this "substitution effect" is to set time limits in a manner that incents more purchases. It's important to share with your front-line workers how costly these discounts can be to the company's bottom line. Everyone else is offering them.

Loyalty 13

Loyalty Discount Airlines Sample 13

Tanveer Naseer

MARCH 6, 2012

” If your answer is one or more, then you’re probably not giving the high performing stars you want much incentive to apply for a job with your organization. Southwest Airlines and The Ritz-Carlton both deliver a special service experience, but their cultures are as different as night from day. Then I started reading.

Airlines 214

Airlines Delegation Incentives Open-book 214

Harvard Business Review

OCTOBER 3, 2016

Last year, Jeff Smisek, the former CEO of United Airlines, received a separation payment of $4.875 million in cash along with additional equity awards and other benefits for a total of close to $37 million after being ousted from his company. Golden parachutes can’t seem to stay out of the news.

Golden Parachute 9

Golden Parachute Hostile Takeover Airlines Execution 9

Harvard Business Review

JANUARY 13, 2014

Consider the airline industry. Southwest Airlines generously offers free baggage and a liberal flight cancellation policy — great enhanced value. When customers intent on switching to T-Mobile attempt to cancel service, their current carrier will offer an inducement — say a $100 or $200 credit — as an incentive to stay.

Price 8

Price Wireless Finance Airlines 8

Harvard Business Review

OCTOBER 18, 2016

Such performance-insensitive pay packages seem to defy both common sense and established economic theory on optimal incentives. We used a variation in ownership caused by a mutual fund trading scandal in 2003 to strengthen a causal interpretation of the link between common ownership concentration and top management incentives.).

CEO 8

CEO Asset Management Cooper Industry 8

Harvard Business Review

JANUARY 13, 2014

But had they looked at themselves from the point of view of their customers, they would have seen that they were really in the transportation and logistics business and would have better understood the challenge, and the opportunities, represented by the growing airline industry. It’s time to make business human again.

Levitt 12

Levitt Christensen Competitive Advantage Welch 12

Harvard Business Review

MAY 22, 2018

Students, workers, and retirees are protesting, targeting trains, airlines, retirement homes, universities, and government offices. The reform would give workers more incentives to join, rather than free ride on sector-level agreements. Some observers believe these reforms could actually serve to improve and rejuvenate labor unions.

Proposal 8

Proposal GDP Airlines Transportation 8

Harvard Business Review

APRIL 5, 2012

Incentive compensation, goal setting, and recognition. If sales leaders know account potential, they can design incentive compensation plans that reward salespeople for true performance, rather than for a lucky territory. They can set territory sales goals that are challenging, attainable, and fair to all. Deduce the data.

Retail 9

Retail Incentives Tactics Pharmaceuticals 9

Rajesh Setty

AUGUST 10, 2008

The points are redeemable for Visa gift cards It’s like earning credit card or airline points just for searching. Best of all we get rewarded for using it by collecting points with every search, comment and vote. Hit the link below to join and we will both get points!

Engineering 28

Engineering Licensing Newsletter Blog 28

Harvard Business Review

DECEMBER 20, 2016

I also know all too well that, like all strategies, superconsumer strategies can be hard to implement, because of internal processes, misaligned incentives, and organizational structures that are difficult to navigate. “The learning curve in any industry is steep, but it is particularly so in the airline industry.

Airlines 8

Airlines Energy Self-aware Learning Curve 8

Harvard Business Review

JUNE 2, 2016

Suppose you owned an airline and ordered an engine from Rolls-Royce or GE. Organizations must be prepared to improve or modify selling skills, sales incentives, internal coordination and sales and service processes to make this work right for the customer. What are you really looking for? A piece of machinery to meet a product need?

Productivity 8

Productivity Products Company Engineering 8

Harvard Business Review

APRIL 11, 2017

Among those that have met that fate in recent months are initiatives at Target, Alaska Airlines, Coca-Cola, the New York Times, and Chubb. ” But as that transition plays out, few companies are paying sufficient attention to creating accountability and incentives for success. “It needs to be a transition.”

Project 11

Project Innovation Press Release Survey 11

Harvard Business Review

OCTOBER 17, 2011

Less can be more when it comes to incentives. Bethune was leading a turnaround at Continental Airlines, for example, he sent an unexpected $65 check to every employee when Continental made it to the top five for on-time flights. Money is the most expensive way to motivate employees, but it's still many leaders' first choice.

Motivation 15

Motivation Gordon Sharpe Airlines 15

Harvard Business Review

SEPTEMBER 27, 2011

Achieving "leadership economics" — leadership in the strongest part of your business (the core of the core), not just in market share but also in market influence and in the ability (and incentive) to outinvest competitors; Having customers more loyal to your company than to your competitors; and.

Self-aware 13

Self-aware Competitive Advantage Airlines Strategy 13

Harvard Business Review

JULY 14, 2015

A community-driven business doesn’t have to run itself the way its community does, any more than an airline’s backoffice should be run by two people in a cockpit. RedditCo seemed at first to view this through a management lens. It’s like any other product kerfuffle to be minimized, controlled, and out-waited.

Taylorism 8

Taylorism Taylor Airlines CEO 8

Harvard Business Review

NOVEMBER 3, 2015

While it may still be true that most of those cushy business class seats are occupied by business travelers, it is also true that most business travelers only see those seats when they board or get off the plane, as many airlines make economy passengers do the “walk of shame” through business class.

Travel 8

Travel Class Airlines Bond 8

Harvard Business Review

DECEMBER 22, 2016

Over the years, governance has attempted to close that gap by aligning incentives with measures of performance. The public corporation is typically bedeviled by the gap between managers’ and shareholders’ interests. These attempts have often failed. Many successful examples can be found outside the Western world.

Short-term 8

Short-term Long-term Leveraged Buy-out Globalization 8

Harvard Business Review

JANUARY 21, 2011

Nevertheless, companies that live and die on operational excellence — such as Amazon.com, FedEx, Southwest Airlines, and Wal-Mart — must continually improve their key processes. The natural forces in the organization will tend to frustrate their every attempt to coordinate activities across functional boundaries.

Process 15

Process Supply Chain Balanced Scorecard Engineering 15

Harvard Business Review

MARCH 27, 2013

Agents, for their part, have incentives to work hard to keep their ratings high in the system. The resulting productivity of employees at Southwest is several times higher than at any legacy airline, more than compensating for their higher salary.

Business Model 8

Business Model Meyer Airlines Call Center 8

Harvard Business Review

JANUARY 30, 2013

It consumes 20% less fuel than an equivalent 767; which, given today's increasing fuel prices and airlines' diminishing profit margins, should make it an extremely desirable aircraft. The 787 Dreamliner was supposed to be a big jump forward for Boeing — notably, the first plane to be made entirely of composites rather than aluminum.

Outsourcing 8

Outsourcing P&L Airlines Price 8