Harvard Case - Alaska Airlines: Empowering Frontline Workers to Make It Right
"Alaska Airlines: Empowering Frontline Workers to Make It Right" Harvard business case study is written by Ranjay Gulati, Andrew O'Connell, Caroline de Lacvivier. It deals with the challenges in the field of Organizational Behavior. The case study is 22 page(s) long and it was first published on : Mar 1, 2018
At Fern Fort University, we recommend that Alaska Airlines further develop and refine its 'Make It Right' culture by implementing a multi-pronged approach that focuses on empowering frontline workers, fostering a culture of continuous improvement, and leveraging technology to enhance customer experience and employee engagement.
2. Background
Alaska Airlines, known for its strong customer service and employee-centric culture, faced a challenge in maintaining its positive reputation amidst industry-wide disruptions and increased competition. The case study highlights the company's 'Make It Right' philosophy, which empowers frontline workers to resolve customer issues on the spot and create positive customer experiences.
The main protagonists in this case study are:
- Ben Minicucci: CEO of Alaska Airlines, who champions the 'Make It Right' culture and believes in empowering employees.
- Frontline employees: The key players in executing the 'Make It Right' philosophy, who are empowered to make decisions and resolve customer issues.
- Customers: The ultimate beneficiaries of the 'Make It Right' culture, who experience improved service and resolution of their issues.
3. Analysis of the Case Study
This case study can be analyzed through the lens of Organizational Behavior, Leadership, and Change Management.
Organizational Behavior:
- Organizational Culture: Alaska Airlines has a strong, customer-centric culture that emphasizes empowerment and accountability. The 'Make It Right' philosophy is deeply ingrained in the company's values and beliefs.
- Employee Empowerment: The company empowers frontline workers to make decisions and resolve customer issues, fostering a sense of ownership and responsibility. This approach aligns with Motivation Theories like Self-Determination Theory, where employees feel more motivated when they have autonomy and control over their work.
- Team Dynamics: The 'Make It Right' culture encourages collaboration and teamwork among employees, enabling them to effectively address customer issues. This approach aligns with Group Behavior principles where teams perform better when there is trust, open communication, and shared goals.
- Communication Patterns: Open and transparent communication is crucial in implementing the 'Make It Right' philosophy. Employees need clear guidelines, training, and support to effectively communicate with customers and resolve issues. This aligns with Organizational Communication principles where effective communication is vital for organizational success.
- Employee Engagement: The 'Make It Right' culture fosters high employee engagement by providing them with opportunities to make a difference and contribute to the company's success. This aligns with Employee Engagement principles where engaged employees are more productive, committed, and loyal.
Leadership:
- Leadership Styles: Ben Minicucci's leadership style is characterized by Transformational Leadership, where he inspires and motivates employees to achieve shared goals. He empowers employees to take ownership and make decisions, fostering a culture of innovation and continuous improvement.
- Emotional Intelligence: Effective leadership in implementing the 'Make It Right' philosophy requires high emotional intelligence. Leaders need to understand and empathize with both employees and customers to effectively resolve issues and build trust.
- Leadership Development: Alaska Airlines invests in leadership development programs to equip employees with the skills and knowledge to effectively lead and manage teams. This aligns with Leadership Development principles where organizations invest in developing future leaders.
Change Management:
- Organizational Change: Implementing the 'Make It Right' philosophy requires significant organizational change, including changes in processes, policies, and employee behavior.
- Resistance to Change: Employees may resist change, especially if they are accustomed to traditional ways of working. Effective change management strategies are crucial to overcome resistance and ensure successful implementation.
- Feedback Mechanisms: Regular feedback and communication are essential to monitor the effectiveness of the 'Make It Right' philosophy and make necessary adjustments. This aligns with Organizational Learning principles where organizations learn from their experiences and continuously improve.
4. Recommendations
To further develop and refine the 'Make It Right' culture, Alaska Airlines should consider the following recommendations:
Invest in Technology: Implement technology solutions that enhance customer experience and employee engagement. This could include:
- Self-service portals: Empower customers to resolve simple issues independently, freeing up frontline employees to handle more complex cases.
- Real-time data analytics: Track customer feedback and employee performance to identify areas for improvement and optimize processes.
- Mobile apps: Provide employees with access to information and tools they need to resolve issues efficiently.
Enhance Employee Training and Development: Invest in comprehensive training programs that equip frontline employees with the skills and knowledge necessary to effectively implement the 'Make It Right' philosophy. This could include:
- Customer service skills: Develop employees' communication, problem-solving, and conflict resolution skills.
- Product knowledge: Ensure employees have a deep understanding of Alaska Airlines' products and services.
- Technology proficiency: Train employees on how to utilize technology effectively to resolve customer issues.
Foster a Culture of Continuous Improvement: Encourage a culture where employees are constantly seeking ways to improve customer experience and operational efficiency. This could include:
- Employee feedback mechanisms: Create channels for employees to provide feedback on processes and suggest improvements.
- Recognition and rewards: Acknowledge and reward employees who go above and beyond to make it right for customers.
- Cross-functional collaboration: Encourage collaboration between different departments to identify and address systemic issues that impact customer experience.
Measure and Track Results: Regularly measure the effectiveness of the 'Make It Right' philosophy and track key metrics such as customer satisfaction, employee engagement, and operational efficiency. This data will provide insights into areas for improvement and ensure the program remains aligned with the company's strategic goals.
5. Basis of Recommendations
These recommendations align with Alaska Airlines' core competencies and mission to provide exceptional customer service and empower employees. They also consider the company's external customers and internal clients, as well as the competitive landscape.
The recommendations are based on the following assumptions:
- Customer expectations are evolving: Customers are increasingly demanding personalized and seamless experiences.
- Technology is transforming customer service: Technology can enhance customer experience and improve operational efficiency.
- Employee empowerment is crucial for success: Employees are more motivated and engaged when they are empowered to make decisions and contribute to the company's success.
6. Conclusion
By further developing and refining its 'Make It Right' culture, Alaska Airlines can solidify its position as a leader in customer service and employee engagement. The recommendations outlined above will help the company leverage technology, enhance employee training, foster a culture of continuous improvement, and ensure the program remains aligned with its strategic goals.
7. Discussion
Alternative approaches to implementing the 'Make It Right' culture could include:
- Centralized customer service: This approach would involve creating a dedicated customer service team that handles all customer issues. However, this could lead to longer wait times and a less personalized experience.
- Limited employee empowerment: This approach would restrict employee decision-making authority, potentially leading to customer dissatisfaction and decreased employee engagement.
The key risks associated with these recommendations include:
- Technology implementation challenges: Implementing new technology can be complex and time-consuming.
- Employee resistance to change: Employees may resist changes to their work processes and responsibilities.
- Cost of training and development: Investing in employee training and development can be costly.
8. Next Steps
To implement these recommendations, Alaska Airlines should:
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and responsibilities.
- Secure necessary resources: Allocate budget and personnel to support the implementation of the recommendations.
- Communicate effectively: Clearly communicate the goals, benefits, and implementation plan to all stakeholders.
- Monitor progress and make adjustments: Regularly track progress and make necessary adjustments to ensure the program remains effective.
By taking these steps, Alaska Airlines can further develop its 'Make It Right' culture and continue to provide exceptional customer service and empower its employees.
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Case Description
This case documents the ongoing efforts by Alaska Airlines to enhance its efforts to become more customer centric by empowering its employees using a service framework. It explores how the airline starts with a completely hands-off approach to empowerment in which employees are encouraged to do whatever it takes to please customers. An economic downturn leads them to swing the pendulum the other way and develop a rules-based framework with strict guidelines. Ultimately, they settle on an intermediate model in which employees are given "freedom within a framework." This forces them to try and shift from a rules-based to a principles-based culture. The case explores not only what they did but also how the framework was rolled out. All this seems to be working until they acquire Virgin America in 2016. Virgin too espouses customer centricity and front-line autonomy but does so in a different way. The dilemma now is blend the two cultures that are both trying to achieve similar goals but do so quite differently.
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