30.11.2008 Aviation, Values

Old School – New School

“Our Heads Are Round so our Thoughts Can Change Direction” [Francis Picabia]

Some of you have already read the Sapphilosophy-Blog I created in September as a result of another discussion with friends on philosophical issues like love, friendship, honor.

Very famous in Germany on the topic is “the Knigge”, his book “On Human Relations” being considered to date the guideline for respectful interpersonal relations.
In the past weeks, I was told to be “old school”, namely for the respect I have for people, but also about topics like loyalty or (personal) honor. These values are in short supply these days, but I am convinced it is the more necessary to hold up the flag.

Once more I was told this is my main weakness. Right. But being a weakness in business, I found it my great strength in life. I stay errect and look into the mirror with pride. Sure I made my share of mistakes, but is there anyone flawless? And I stand up to them. The same friend questioning this “weakness” asked me, how I could be so optimistic despite the treatment I received throughout my business life. That is because of my friends – mostly people like you, reading this blog. For you I am grateful.

I thought about it quite a while if I should address this topic in the Food For Thought blog, but the world is changing. Greed, arrogance and egomaniac arrogance are going out of fashion, the global financial crisis and people like Barrack Obama make us reconsider our values. In aviation and travel industry, we shall also consider how we treat our own, business partners and staff alike. And if it makes sense to save money at all cost.

Robert “Bob” Crandall was my topmost boss when I started in the airline industry back in the late 80s. He shaped the entire industry, but having met him just briefly, he has been a role model for me ever since. Under his management, the entire company was a family. Everyone worked for the benefit of the family. Suppliers were happy to deal with American Airlines. Sounds strange to you these days? Yeah. The bean counters took over.

Food For Thought: Can you look at your life with pride?

23.11.2008 Values

Debugging Six Sigma

If you don’t know what Six Sigma is about, read this Wikipedia-article first.

I had some discussions lately about sense or nonsense of Six Sigma. Part of the information flooding today is that there are a lot more variations of “best practices”. So I do not disagree with Six Sigma, but there’s two points you should keep in mind with their or any other best practices. They are guidelines. Not a panacea. And with all such best practices, they are about what you make out of them.

For Six Sigma especially, there is a point I found far to strictly adhered to: The financial focus.
In most jobs I have done in my life, I was the fire fighter for managers who did not understand the value of a fire fighter. Because a fire fighter is paid like an insurance. You are happy if you never need it.
We call it the Saint-Florian-principle:

Oh dear holy Saint Florian,
Don’t burn my house
take the other one…

There are many such jobs in any company, but that’s the jobs, most often the first ones being cut by Six Sigma disciples. Service, support. They are cost factors, they do nothing but cover for the mistakes done up front. As there must be no mistakes, there’s no need for service and support. It’s a very typical trend for any company where managing responsibility is transferred from the entrepeneur to the finance, money driven folks.
Good ideas are declined as they are risky and you got to believe in the idea. Speaking to the financial guys, my experience is that you hit a brick wall. The same is true if you talk about “non-essential” services. Like service. And my experience is that the entrepeneur has a total different understanding of Six Sigma or other such best practice principles, than financial bean counters.

So it is not about Six Sigma or not, but what you make out of it! I think, we just learn, what bean counters got and get us into. I call it greed and fear. “CYA”: Cover your ass. I learned that from a CEO with finance background. I may live better if I would live their way. But I sleep far better trying something and standing up for my own mistakes.

What a chance the U.S. to have a president-elect who is creative and open to change = risk? I hope the focus of companies shifts from a conservatory play-it-safe back to a search for creative new ideas and do some trial. Sure, not everything will work out. But I predict: The survivors are the ones that move.

16.11.2008 Aviation, Sales

Business Development in time of crisis

Looking at the financial crisis, many companies reconsider their sales focus. What I addressed in my ASRA-presentation this year suddenly seems to trigger. Everyone can sell cheap. So if you are in sales, you need to focus your attention on the products that need sales support.

This week, I had quite a discussion about the validity of my sales strategy and business development. Interesting enough, my supporter was an airline that just recently anounced another increase in net earnings. Their German team has also exceeded sales targets. The offense was voiced by an airline sales manager, who’s company just published another loss for the last quarter and is expected to accumulate overall losses this year.

The focus of the successful airline is on the specialists: Tour operators, travel agencies, corporates.
Anyone not having a focus on their destinations is serviced with a lower priority. Effort is only targeted to the specialists who they pamper and invest time to visit and invite. The elephants (consolidators, internet portals) producing large but price-driven turnover are running aside.

What we wondered is the focus of many managers on turnover, volume and market share, not on revenue. That’s the managers impressed by “large numbers” and quick volume, not caring about cost or long term relations. How long has the sales manager been the same to the customer? How experienced is the sales manager? What is your strategy?

Food For Thought: Especially the aviation industry is in need for a reevaluation of values. If I hear IATA-secretary general Giovanni Bisignani anounced a drop in passengers by 4.8%, in Asia even 7.8%. The airline industry is predicted to accumulate losses of 5.2 billion dollars this year?!

So if passenger numbers are going down, a logical consequence is to focus an increase in yield!

Do I miss anything? Want to change? Interested in Business Development?
Contact me.

09.11.2008 IT

Information Overkill

FVW Blog just mentioned a senior travel industry manager asking, who has time to read all that information published “Web 2.0”.

In the good old times, we had no control on who said what. But it did not matter much, as the word was forgotten quickly. Today, thoughts are not voiced, but published. So word reaches more people. But similar as in the good old days, the word gets lost. In the noise of flooding information, to find the interesting part becomes valuable.
Consultants recommend to keep control on what is said and published about your company. But where do you start, where do you end? Inflation of the value of the written word. So the good old paper publishing companies recover their value. Not limited to the printed issues. But to have editorial teams that built a reputation of “quality”.

Shift Happens » It’s all about control of the information flood. Information overkill. If I seek one information, I limit myself before on how much time I invest in it. I use a timer. Usually the time is gone by faster than I anticipated…

Google was founded in 1998. Before Google, there was Yahoo. I do miss the old Yahoo. I do miss a solution that qualifies the information that I get. I get too much crap searching Google. So as Google revolutionized Internet search, what will come after Google? In 1998, Google started with 24 million indexed pages. In 2004 they had already 8 billion pages in their index. (Source: Wikipedia) That means: These pages existed. How many today? Google doesn’t tell…
[Update 2016, Wikipedia says: “In 2012, Google has indexed over 30 trillion web pages, and received 100 billion queries per month”]

So if a consultant recommends you to keep an eye on the information published about you in the Internet, better ask him/her how. To date, I have not received a decent answer. So I keep 10 web pages and 10 Blog Feeds as my personal maximum. You want me to read your blog? If I do, I ask myself, which other blog I delete from my RSS-reader (Thunderbird). Interesting, more and more friends tell me they do the same. The more IT-focussed their business is, the earlier they limit their monitored information to the valuable ones…
And on top of that list are: The company’s own website. The renowned, famous references. Blogs or independent websites? Only if I don’t find the information elsewhere…

Food For Thought.
How do you handle it? What’s your experience? I’m curious. Let me know 😀

02.11.2008 Values

Value of Time

Having linked Momo last week, I know the book is worldwide not as well known as in Germany. It is the story about a little girl fighting the Grey Gentlemen, who live of time and suck it (just like vampires) from us. We have less and less time to be happy. People themselves become grey. “Time is money and we don’t have any” is a joke I increasingly hear. Itself and it’s variants. Seminars in “time management” are said to be a cash cow.

Time is the only commodity we cannot replace.

What good is it, if you are wealthy but lack happiness? Friends wonder that I take one hit by Murphy after another, still smiling, still happy. A question of priorities: I am happy. Yes, I can live of Hartz IV if I have to. No, nothing I fancy. But we are lucky to have such a fail-safe! I visited Russia lately. The average income in the city I visited is 10-15.000 Rubels (350-500 Euros). No real social security. The average cost for a one-room apartment is 10-15.000 Rubels. Oops…? I have met people living there. Happy people. Not rich. But happy. Something becoming rare as people gain wealth…

Money ≠ Happiness?

Do I want to be wealthy? No. Yes, a decent monthly income doing a decent job would be great. And I love to do a good job. I am happy.