Modern Management Practices: Airline and Book Models
October 28, 2022
I know zero about running an airline. Wait. That’s not true. I know these outfits struggle to leave on time and handle baggage. I have heard that the computer systems used by US carriers are similar to those in use at the Internal Revenue Service. End of my info.
I read “American Airlines is Trying to Stop a Popular iPhone App That’s Become a ‘Must Have’ For its Flight Attendants.” The story caught my attention because an iPhone app has become an object of attention at an outfit unable to do what people expect it to do. Please, reference my comment about flying on time and the suitcases.
One flight attendant said of the current situation affecting Sequence Decoder that they had “never seen a company go out of their way to make life harder for their workers.”
The operative phrase “never seen a company go out of their way to make life harder for their workers” is memorable.
I would suggest that there is another company with some management challenges. “Exclusive: Amazon’s Attrition Costs $8 Billion Annually According to Leaked Documents And It Gets Worse” reports:
Amazon churns through workers at an astonishing rate, well above industry averages.
The write up continues:
The paper, published in January of 2022, states that the prior year’s data “indicates regretted attrition [represents] a low of 69.5% to a high of 81.3% across all levels (Tier 1 through Level 10 employees) suggesting a distinct retention issue.
Two big companies. Neither seems to be able to get in sync with their employees.
Let’s step back. I have a general sense that a number of organizations are unable to manage what I would call the basics; that is, understanding what employees need to do their jobs. On one hand, a software app which appears to improve scheduling strikes me as useful. Obviously the airline’s managers are terrified of software developed by an outsider and embraced by employees. The solution is to cancel it. Isn’t that a disconnect by what I assume are GenX and Millennial managers? Could dinobaby managers help resolve the issue? Of course not! Dinobabies, my goodness, no.
I have found that the online bookstore is less and less able to deliver “next day.” But I am a sample of one. The write up makes clear that one possible reason for the slippage and some of the practices of third party resellers are facilitated is due to — you guessed it — management failures. If the company were in touch with their employees, why have churn rates that are in the ballpark for streaming services consuming billions of dollars? In my opinion, we have an example of management taking a selfie and falling into a ravine.
Observations:
- Managers have to manage and deliver success. Ignoring employee needs is a questionable approach.
- Senior managers have to provide a framework for success. Exhibiting failure at scale suggests that these professionals are not managing in an effective manner from the point of view of the employees.
- Boards of directors have to provide a framework for the policies of the company. The incidents described in airline and bookstore cases suggests that these individuals are like vacationers: Kick back and enjoy the time.
My hunch is that remediating these issues will require more than attitude adjustment, a couple of TED Talks, and new technology. In fact, fixing the issues creating these two referenced case examples may be a job for the reprehensible dinobabies and their pre historic methods. Is this a popular notion? Nope.
Stephen E Arnold, October 28, 2022
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