Case Study: United Airlines

Challenge:

Amidst history’s sixth largest bankruptcy, United Airlines needed to engage employees to implement sensitive operational changes and achieve aggressive cost savings, while maintaining operational performance and customer service. United formed a Business Transformation Office as a solution.

Its Operations work stream was the largest and most complex, overseeing the activity of 11 change programs encompassing three business divisions and the entire global network of airports. This team needed to engage employees to think and behave differently and transform how United worked to reduce costs by $150 million.

Actions:

• Developed a program communications network that integrated program management, budget and benefits tracking, project activity and communications to share information and align priorities
• Streamlined the program’s financial reporting communications process
• Identified the behavioral risks in project plans, prioritized tactical activity and developed mitigation strategies and detailed communication plans for all 11 project teams
• Developed messaging for the overall effort to help the project managers engage the hearts and minds of employees and drive the necessary behavior change
• Provided general coaching and implementation support: writing and editing, facilitating meetings between management and labor, training, etc

Results:

• Achieved $229 million in cost savings – 48.8% better than plan
• Productivity increased 16%, while costs decreased more than 20%
• On-time departure performance (reliability) broke records and ranked first in industry
• Customer service improved, competitive complaint rate decreased by more than 50%
• Communications program given the 2005 “Award for Excellence in Operational Improvement” from Melcrum Publishing