british airways change management case study pdf

Transformational Change or Not?: The Case of British Airways (2008-2010)

19 Pages Posted: 21 Oct 2011 Last revised: 23 Nov 2013

Andrijana Bogdanovska Djurovic

Knowledge Center; Center for Knowledge Management

Date Written: April 20, 2011

The past decade was characterized with turbulent changes in the external environment and events which placed enormous pressure on companies in all industries. It ended with a wave of radical organizational transformations especially present among the larger corporations with an aim of strategic repositioning at the market and exploiting strategic opportunities and/or benefiting from the core competencies. In the process, due to the increased importance of the successful transformation, the area of organizational change and transformation became a topic of increased interest among researchers and practitioners of Strategic Management. The aim of this paper is to contribute to the growing literature in the area of strategic change by providing a critical analysis on the transformational change of the company British Airways. In the development of the analysis, a descriptive and exploratory case study research strategy is applied. The study is based on secondary data coming from documented and published sources. The findings question the sustainability of the rational planned approach towards change in today’s high volatile environments, and asks whether there is a need for changing the paradigm on change and recognizing that the same is a constant state of existence.

Keywords: organisational change, transformation, British Airways

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Andrijana Bogdanovska Djurovic (Contact Author)

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From Crisis to Recovery: An Airline Crisis Management Case Study

In the aviation industry, crises are inevitable.

From mechanical failures and natural disasters to public relations nightmares, airlines often find themselves facing critical situations that can significantly impact their operations, reputation, and the safety of their passengers.

The key to mitigating the fallout and preserving customer trust lies in effective crisis management.

In this blog post, we delve into an airline crisis management case study and examine what was nature of crisis and what strategies were employed to manage the crisis.

Let’s discover the essential elements of effective crisis management in the airline industry.

We present here British Airways for airline crisis management case study.

The crisis experienced by the British Airways

British Airways, a prominent airline with a strong reputation, faced a major crisis in 2017 that significantly impacted its operations and reputation.

The crisis unfolded when an IT system failure occurred, leading to a massive disruption in the airline’s services. The failure affected critical systems, including flight scheduling, check-in, and baggage handling, resulting in widespread flight cancellations and delays.

Thousands of passengers were left stranded, and the incident garnered significant media attention, further exacerbating the negative publicity for British Airways.

The IT system failure occurred during a busy travel period, compounding the challenges faced by the airline. Passengers experienced frustration and inconvenience, with many unable to travel as planned.

The incident not only affected the immediate flights but also created a ripple effect, causing disruptions in subsequent days as British Airways struggled to recover and regain normalcy.

This crisis event was particularly notable due to its widespread impact and the visibility it received. The incident raised concerns about the airline’s operational resilience, IT infrastructure, and customer service capabilities.

It became imperative for British Airways to manage the crisis effectively to restore customer confidence, protect its brand reputation, and address the underlying issues that led to the IT failure.

Amidst the chaos, British Airways faced the daunting task of resolving the IT issues, communicating with affected passengers, and implementing measures to prevent future disruptions.

The crisis management team worked tirelessly to assess the situation, coordinate efforts across various departments, and implement recovery plans.

Analysis of British Airways’ Crisis Management Strategies

British Airways’ response to the IT system failure crisis in 2017 showcased several crisis management strategies that were vital in mitigating the impact of the incident.

Here is an analysis of some of the key strategies employed by the airline:

Swift Communication and Transparency

British Airways recognized the importance of prompt and transparent communication with affected passengers. The airline swiftly acknowledged the crisis, informing customers about the IT failure through various channels, including social media, its website, and direct communication with passengers. By providing timely updates and being transparent about the situation, British Airways aimed to keep passengers informed and manage expectations during the disruption.

Customer Support and Assistance

Understanding the frustration and inconvenience faced by passengers, British Airways made efforts to provide support and assistance. The airline set up dedicated helplines and customer service centers to handle inquiries, rebooking, and compensation claims. These channels served as crucial points of contact for passengers seeking information, rebooking options, or compensation claims. The availability of dedicated support demonstrated British Airways’ commitment to addressing customer concerns during the crisis.

Compensation and Rebooking Options

To compensate affected passengers for the disruption caused by the IT failure, British Airways offered various options. Passengers were provided with the choice of rebooking their flights, receiving a refund, or transferring their booking to a later date. By providing flexible rebooking options and compensation, the airline aimed to minimize the negative impact on customers and demonstrate its commitment to resolving the situation.

Learning and Preventative Measures

In the aftermath of the crisis, British Airways focused on learning from the incident and implementing preventative measures to avoid similar disruptions in the future. The airline conducted a thorough investigation to identify the root cause of the IT failure, and based on the findings, implemented changes to enhance the resilience of its IT systems and prevent similar incidents from occurring again.

Timely and Transparent Updates

British Airways prioritized communicating with affected passengers promptly and transparently. The airline utilized multiple channels, including social media, its website, and direct communication, to provide timely updates about the situation. By sharing accurate and up-to-date information, British Airways aimed to keep passengers informed about flight cancellations, delays, and alternative arrangements.

Alternative Travel Arrangements

British Airways proactively assisted affected passengers in making alternative travel arrangements. This involved rebooking passengers on later flights, exploring available options with partner airlines, and offering flexible ticket policies to accommodate changing travel needs. By providing these alternatives, the airline aimed to minimize the disruption to passengers’ travel plans and demonstrate its commitment to resolving the situation.

Enhanced IT Systems and Infrastructure

Following the IT system failure, British Airways undertook initiatives to enhance its IT systems and infrastructure. The airline conducted a thorough investigation to identify the root cause of the failure and implemented measures to prevent similar incidents in the future. This involved strengthening IT protocols, improving system redundancy, and enhancing cybersecurity measures. By investing in infrastructure improvements, British Airways aimed to enhance operational resilience and reduce the likelihood of similar disruptions occurring again.

Employee Training and Preparedness

British Airways recognized the importance of employee preparedness in crisis situations. The airline provided additional training to staff members, equipping them with the necessary skills and knowledge to handle future crises effectively. By investing in employee training, British Airways aimed to improve response times, communication with passengers, and overall crisis management capabilities.

Collaboration with Industry Partners

British Airways collaborated with industry partners, including technology providers and aviation authorities, to learn from the incident and implement industry-wide best practices. By engaging with external stakeholders, the airline aimed to gain insights into system reliability, data security, and crisis management strategies. Collaborative efforts helped British Airways stay updated on emerging trends, enhance its own practices, and contribute to the overall improvement of the aviation industry’s resilience to similar crises.

Continuous Evaluation and Improvement

British Airways adopted a proactive approach to continuously evaluating and improving its crisis management strategies. The airline conducted post-incident reviews, gathered feedback from passengers, and implemented lessons learned to enhance its crisis response protocols. By embracing a culture of continuous improvement, British Airways aimed to build a more resilient organization capable of effectively managing future crises.

Evaluation of the airline’s recovery and reputation restoration

The evaluation of British Airways’ recovery and reputation restoration following the IT system failure crisis involves assessing the airline’s actions and their impact on rebuilding customer trust, restoring its reputation, and regaining market confidence.

Here’s an analysis of the recovery efforts and reputation restoration by British Airways:

• Resumption of Operations: One crucial aspect of British Airways’ recovery was the successful resumption of normal operations after the crisis. The airline focused on minimizing the disruption caused by the IT system failure and gradually restored its flight schedule. By efficiently getting flights back on track, British Airways demonstrated its ability to overcome challenges and resume services, which helped instill confidence in passengers and stakeholders.
• Proactive Customer Engagement: British Airways actively engaged with affected customers to address their concerns and provide necessary support. The airline prioritized customer service, offering dedicated helplines, customer service centers, and personalized assistance to affected passengers. By demonstrating responsiveness and a customer-centric approach, British Airways aimed to rebuild trust and improve customer perceptions of the airline.
• Compensation and Amends: British Airways’ compensation efforts played a vital role in restoring customer faith and satisfaction. The airline offered various forms of compensation, including refunds, reimbursements, and additional perks. By providing tangible benefits to affected passengers, British Airways aimed to make amends for the disruption and alleviate the negative impact on customers, fostering goodwill and loyalty.
• Transparent Communication and Rebuilding Trust: Transparent communication was a cornerstone of British Airways’ efforts to rebuild trust. The airline consistently provided updates on the progress of the recovery, sharing information on system improvements, and measures taken to prevent future disruptions. By being transparent about its actions and sharing insights into the steps taken, British Airways aimed to regain trust, transparency, and credibility with customers and the broader public.
• Reputation Management and Public Relations: British Airways engaged in strategic reputation management and public relations initiatives to repair its brand image. The airline leveraged communication channels, such as press releases, media interviews, and social media platforms, to highlight its recovery efforts and the steps taken to prevent similar incidents. By proactively managing its reputation and addressing public perception, British Airways aimed to rebuild its standing in the industry and regain market confidence.
• Continuous Improvement and Learning: British Airways demonstrated a commitment to continuous improvement by learning from the crisis. The airline conducted thorough post-incident evaluations, gathering feedback from passengers, and implementing lessons learned to enhance its crisis management capabilities. By showcasing a dedication to learning and improvement, British Airways aimed to foster a culture of resilience and preparedness.

Key Lessons Learned from British Airways crisis management 

The crisis management experience of British Airways during the IT system failure yielded several key lessons that can be applied to future crisis situations.

Here are some important lessons learned from this airline crisis management case study:

• Importance of Preparedness: British Airways’ experience highlighted the criticality of being prepared for unforeseen crises. The airline recognized the need for robust contingency plans, comprehensive training programs, and regular drills to ensure employees are equipped to handle crises effectively. Preparedness enables an organization to respond swiftly, mitigate the impact of a crisis, and maintain essential operations.
• Effective Communication is Paramount: Timely and transparent communication emerged as a vital lesson from British Airways’ crisis. Clear and honest communication helps manage expectations, provides necessary information to affected parties, and demonstrates an organization’s commitment to resolving the situation. Communication channels should be diverse, including social media, dedicated helplines, and direct messaging, to reach customers effectively.
• Customer-Centric Approach: British Airways’ crisis response focused on prioritizing customer needs and satisfaction. By offering support, compensation, and personalized assistance, the airline aimed to alleviate passenger inconvenience and rebuild trust. Placing customers at the forefront during a crisis helps maintain loyalty, mitigates reputational damage, and fosters long-term relationships.
• Collaborative Efforts and Employee Engagement: British Airways’ crisis management emphasized the importance of collaboration and employee engagement. Cross-functional coordination and teamwork are crucial for a successful crisis response. Employees should be empowered, trained, and encouraged to contribute their expertise during crisis situations, fostering a sense of ownership and commitment to the organization’s recovery.
• Continuous Learning and Improvement: British Airways’ experience underscored the value of continuous learning and improvement. Post-incident evaluations, feedback gathering, and implementing lessons learned are essential to enhance crisis management capabilities. Organizations should view crises as opportunities for growth and use the insights gained to strengthen resilience and prevent future occurrences.
• Proactive Reputation Management: British Airways recognized the significance of proactive reputation management during a crisis. By engaging in public relations efforts, transparently communicating recovery actions, and highlighting preventative measures, the airline aimed to rebuild trust and credibility. Organizations should be prepared to actively manage their reputation to limit long-term damage and regain stakeholder confidence.
• Infrastructure and System Resilience: The IT system failure crisis emphasized the critical role of infrastructure and system resilience. British Airways’ focus on enhancing IT systems, strengthening redundancies, and improving cybersecurity measures was crucial in preventing similar incidents. Organizations must invest in robust infrastructure and regular assessments to identify vulnerabilities and ensure system reliability.

Final Words 

The incident of IT system failure of British Airways serve as a text book airline cirsis management case study. British Airways’ response to the crisis highlighted the importance of preparedness, effective communication, a customer-centric approach, collaboration, continuous learning, and proactive reputation management.

The airline’s focus on being prepared, both in terms of contingency plans and employee training, enabled a more efficient and coordinated response. Timely and transparent communication with affected passengers proved crucial in managing expectations and rebuilding trust. British Airways’ customer-centric approach, through support, compensation, and personalized assistance, demonstrated a commitment to addressing customer needs and mitigating the impact of the crisis.

Here is a related case study: Boeing crisis management case study.

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Tahir Abbas

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Changing the Culture at British Airways

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Case Analysis British Airways

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