Gagen MacDonald

Client Case Study

Engaged employees to implement sensitive operational changes

Challenge:

To support United Airlines’ efforts associated with its bankruptcy/restructuring work, a business transformation office (BTO) at United was charged in 2003 with meeting aggressive debtor-in-possession (DIP) covenants set by Federal Court. United’s Operations team was the largest and most complex program, overseeing the activity of 11 projects encompassing three business divisions and the entire global network of airports. The team needed to engage employees to think and behave differently to transform how the company worked and reduce costs by $150 million by 2004.

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 to the divisions to create: 1) consistent metrics for each division, 2) a systematic approach for financial reporting, 3) clear accountability for divisional and project reporting, and 4) visibility into the remaining financial reporting cycles in 2003.
  • Identified the behavioral risks in individual 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 percent better than plan.
  • Increased operations productivity by 16 percent, while costs decreased more than 20 percent.
  • Broke its on-time departure record by almost 10 percentage points and set a new monthly performance record — from a goal of 66 percent to 80.4 percent.
  • Ranked first within the industry for on-time departure, improving 9 percent over 2002.
  • Surpassed Customer Repurchase Intent goal. Decreased Competitive Complaint Rate by more than 50 percent.