Wednesday, 5 October 2011

How to Bypass Organisatoinal Disruptions

Traditional organizational structures with rigid departmental boundaries are often the unseen triggers of operational and cost inefficiencies, ultimately leading to increased passenger dissatisfaction. These structures stifle communication, limit the exchange of knowledge and experience, and contribute to ineffective decision-making. Historically, even the most promising initiatives for organizational restructuring and the rise of cross-functional teams aimed at transforming isolated tasks into integrated processes have failed to deliver lasting results. This shortfall is mainly due to the complex, multidimensional nature of the problems—where countless interconnected, ever-changing events occur simultaneously, making them unsuitable for a linear, step-by-step approach.

A simpler yet powerful way to bypass organizational barriers and foster the natural creation of cross-functional links is through the Systemic Reality Check process. Disruptions are a company’s response to changing operational circumstances. By exploring their diverse origins throughout the organization, this process facilitates the creation of internal connections and offers invaluable insights into areas that need improvement.

There is no strict formula for organizing this multidimensional process, except that it should not be assigned to individual departments or to cross-functional teams formed on a temporary basis. Each airline must integrate the Systemic Reality Check concept in a way that best suits its unique needs, making it an intrinsic part of its operations.

One of the options is to create the integrative action hub where disruptions related to operational, strategic, network, scheduling and other related problems and information ambiguities could be coordinated, discussed, and whenever possible, resolved. It is led system navigators – people who are able to move freely between operations and senior management, translating the requirements of each into a language and behaviour that is acceptable to, and understandable by the others. 

System navigators have an important role in complex airline structures. They should establish experience bridges that link people, information and process, and accelerate progress through the development of shared understanding. This could prove to be a good investment, considering that the introduction of this function will make significant reductions in time and money spent on unnecessary analysis, unreliable delay reports, futile decision making, and endless disputes over unsolvable problems – time that could be spent more effectively by shifting the focus from fire-fighting to longer-term improvements in operational efficiency, which assumes better cost control and reduction in operating costs.

There is another possibility for organising the process of Systemic Reality Check that might be appropriate for smaller airlines with flat organisations and those who argue that bringing all information about disruption information within the scope of a single unit may itself be limiting. For them, the gain from a single functional responsibility may be less attractive than building appropriate procedures into all aspects of disruptions that shape the company outcome. Even then, the system ownership must be clearly defined.

In both cases, it is essential for airlines to have a well-developed disruption information system. This system, along with the organizational improvements mentioned above, will provide a solid foundation for building and continuously enhancing internal communication, operational efficiency, and cost management.

In practical terms, each Systemic Reality Check event produces Relational Action Maps that highlight the most critical areas, not only mitigating negative impacts but also uncovering new opportunities for improvement.

As a result, front-line and middle-tier decision-makers will gain a broader perspective on the business they are involved in, while senior decision-makers responsible for the overall performance of the organization will gain a deeper understanding of what the bigger picture is composed of.