Airways

Starting from Scratch

 Driving Costs Down
Careful Workforce Internet
Selection Technology

Low
Distribution
Non-Union
Costs
Productive
Employees Lower
Plan
Flexible Utilization Cost
Work Rules
Quick
Turnarounds
Redeye
Culture Flights

Low
Maintenance

New Planes Fuel JFK/Long

Efficiency Beach
Driving Revenues Up
Target under-served
& over-priced
routes
Low Fares
Word of
Mouth
Stimulate
Demand
HR
Practices Service
Selection
Training
Performance Brand Great
Increased
Customer
management Revenue
Experience
Culture

Differentiated Repeat
Product Business
 Matching Strategy and Culture
Behavior Attribute Outcome

Does what needs

To be done
Flexible Lower
Takes on new Costs
Ways easily
Productivity
Works quickly
And smoothly
Diligent
Doesnt quit until
The job is done Profits

Smiles
Friendly
Greets people
Service Revenue
Tries to Higher
Understand need
Empathetic
Tries to solve
problem
 Matching Strategy and Culture
Selection
Core Values
Behavioral Interviews Lower
Orientation Cost
Sr. Exec. Involvement Productivity
Core Values
Values and Business
Job Design Core
Job Scope Profits
Values/
Duration
Culture
Training
Leadership
Performance Management
Core Values Service
360 Feedback Higher
Rewards Revenue
Core Values
Business Results
David Neeleman : CEO of JetBlue Walk the Talk
A Strategy Map Represents How the Organization Creates Value

Financial Productivity Strategy Growth Strategy

Perspective Long-Term
Shareholder Value

Improve Cost 30 minutes Expand Revenue Enhance

Structure turnaround time Opportunities Customer Value

Customer Customer Value Proposition

Perspective
Price Quality Availability Selection Functionality Great Partnership Brand
Low Fare Service

Product / Service Attributes Relationship Image

Internal Operational Management Customer Management Innovation Regulatory and Social

Perspective Processes Processes Processes Processes
Supply Selection Opportunity ID Environment
Production Acquisition R&D Portfolio Safety and Health
Distribution Retention Design/Develop Employment
Risk Management Growth Launch Community

Learning and
Human Capital
Growth
Perspective Information Capital

Organization Capital
Culture Leadership Alignment Teamwork

7
 A Strategy Map Represents How the Organization Creates Value
Internal Perspective
Customer Management Innovation Regulatory and Social
Operational Management Processes Processes Processes Processes

Supply: 1 type of airplane AirBus 320 (special deal)

Production: Efficiency by optimilizing Resources Selection: Underserved Opportunity ID
Flight Classification Report to avoid a culture point R&D Portfolio Environment
of blame Acquisition Design/Develop: Safety and Health
Distribution: Using Digital Channel eTicket Retention: Great Service New Routes/ Employment
Risk Management Growth Business Models Community
Launch

Human Capital
Recruit: BEI, Outsource Reservation Centre (Homeworkers); Training: Orientation by Top Management Team
Learning and Performance Management: 320-Degree process
Growth Rewards: No Probation, Customized Pay & Benefits Packages met or exceed
Perspective Industry standard; Three distinct job options for flight attendance

Information Capital
Infrastructure to support online operations (e.g. Pilot operations)

Organization Capital

Leadership
Culture Aggressive, Restless Personality,
Safety Innovative, Risk Taker, Social Network Alignment
Caring Able to Build Team Teamwork
Model the Way
Integrity Set Directions; Alignment; Tiger Team
Orientation
Fun Motivate
Passion Ability to Execute (Results)

8
 Discussion Questions
What are the risks that lay ahead at
JetBlue?
Be aware of transient competitive advantage.
What are the challenges ahead?
Can JetBlue maintain its sustainable growth?
Organizational Capability? (HR Strategy,
Leadership, Alignment, Teamwork)
How to keep a small company feeling?
What positions is A positions?
 How to Compete
Temporary, Not Sustainable, Competitive Advantage

Under Pressures?
Experiment becomes Full Scale
Built Systems and Processes

Identify Opportunity Business operating well

Allocate Resources Generate reasonable profits
Assemble Team Pull some resources for the next
Constantly under pressures

The Wave of Transient Advantage

 Networking
Operational Personal Network Strategic Network
Network
Networks Getting the work Develop professional Figure out future priorities
Purpose done efficiently skills through and challenges; get
coaching and stakeholder support for them
mentoring; exchange
important referrals
and needed outside
information
How to Identify Participate in Identify lateral and vertical
find individuals who professional relationships with other
network can block or associations, alumni functional and business units
members support a project groups, clubs, and managers people outside
personal-interest your immediate control
communities who can help you determine
how your role and
contribution fit into the
overall picture
CLAN Flexibility and Discretion
Orientation: Collaborative
Leader Type: Facilitator; Mentor;
Team Builder
Value Drivers: Commitment;
Communication; Development
Internal Focus and Integration
Theory of Effectiveness: Human
development and Participation produce
effectiveness
Orientation: Controlling
Leader Type: Coordinator; Monitor;
Organizer
Value Drivers: Efficiency; Timeliness;
Consistency and Uniformity
Theory of Effectiveness: Control and
Efficiency with capable processes produce
effectiveness
HIERARCHY Stability and Control
ADHOCRAC
Orientation: Creative
Leader Type: Innovator; Entrepreneur;
Visionary
Value Drivers: Innovative outputs;
External Focus and Differentiaton
Transformation; Agility
Theory of Effectiveness:
Innovativeness, vision, and new resources
produce effectiveness
Orientation: Competing
Leader Type: Hard Driver; Competitor;
Producer
Value Drivers: Market share; Goal
achievement; Profitability
Theory of Effectiveness: Aggressively
competing and customer focus produce
effectiveness
MARKET
 Common Characteristics

By comparing the characteristics of entrepreneurs

and leaders, a model can be developed that specifies
the personal characteristics reflected in those who
practice ENTREPRENEURIAL LEADERSHIP.
 Career and Human Resource Planning
Individual Career Planning Human Resources Planning
Personal objectives Business objectives
and life plans and plans

Occupational and Ways to attract and

organizational choice orient new talent

Methods for matching

Job assignment choice individuals and jobs

Development Ways to help people

planning and review perform and develop

Ways to prepare
Retirement for satisfying retirement