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Discussion in 'American Airlines | AAdvantage' started by rwoman, Jan 25, 2012.
CEO: AA workforce will get 'leaner'
Not sure this is much of a surprise...
Probably not too much of a surprise, but it is heartening to begin the process with removing a management layer. Is one layer enough to remove?
Let's hope it's as minimal as possible.
There is a great deal of expense to be removed. A delicate process to be sure, but it cannot be too modest, lest it fail. Whatever happens it would be horrible to pull a CO and do it twice.
Humans believe that there is one weak spot in our corporate systems and what do they call it? "Humans...!!!"
If AA does not remove this management layer TPG or Blackstone will do so.
I like his choice of words. "Leaner"- I was wondering if AA was putting it's employees on a mandatory fitness program.
How about Executive ranks and perks, will they get leaner as well?
Having been through many "downsizings", "rightsizings" and layoffs, cutting a layer of management is not always the answer to the financial crisis. AA needs to study where their expenses are being wasted. If it is a layer of management, then cut it, but don't cut it just because they are higher paid wage earners and it will "look good" to the stakeholders...cut out the fat, cut out the expenses that are wasteful...do it right...do it once!
Sounds good but there is a reason it doesn't happen this way when power is unequally distributed or concentrated in a small group. That group is not only likely to have made the decisions that led to failure, but will also have power to put the blame and the onus for bearing the "sacrifices" on a weaker group.
Recent good examples of this phenomenon include the 2008 economic downturn in which people/institutions who created the problem got billions in bailout at others' expense, and the 9/11 itself: Air Force generals whose planes never showed up, high intelligence officials who missed or bungled the intelligence, people who formulated the policy of allowing knives and box-cutters into cabin, all got to keep their jobs. Only airport screeners who merely implemented this policy faithfully got fired en masse.
Hopefully not. At this point, AA needs leadership.
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At every point, a company needs leadership, workers, and customers, all at the same time.
However, when workers are losing jobs, creditors losing money, and customers getting used to reduced service, why does it seem obvious to you that management ranks should also not get leaner?
Another analogy: why trust the same people who drove the truck into the ditch with driving it back out?
Especially when you could recruit from hundreds of experienced armchair airline CEOs such as myself on boards like this
There's no clear indication, publicly, at least, that ANY part of AA is swollen in the ranks. At this point, losing leadership will only make things worse. While you certainly need people to turn knobs and push buttons, those can be found much easier than those with a business acumen and ability to impart a mission and change a culture. AA has clearly been lacking that under Arpey, but it's not clear that it's due to an overabundance of managers.... just that at some level, that which is important is not being communicated down, and the effects of changes are not being effectively communicated up. That's what needs to be fixed - and pulling out people who can fix it is a poor start.