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Change, Work and Diversity
(HR0277)
FT NTB BAIM 8 Lecturer: Mr. Frankie Yee
Justin Sim Zhi Wei Student Code: W16039692
Plagiarism score: 1%
Total word count: 3,361 words
Part 1: 1,401 words
Part 2: 1,960 words
Content Page: Part 1 1.0 Overview of Qantas ---------------------- Page 3 1.1 The Crisis that affected Qantas ---------------------- Page 3 1.2 Cultural Web of Qantas ---------------------- Page 4-5 1.3 Strategic Drift Model ----------------------- Page 6 1.4 Lewin’s Force Field Analysis ----------------------- Page 7-8 Part 2 2.0 Kaleidoscope Model ---------------------- Page 8-10 2.1 Sources of resistance ---------------------- Page 10-11 2.2 Lewin’s Change Model ---------------------- Page 11-12 2.3 Measuring success of change ---------------------- Page 13-14 2.4 Recommendations ---------------------- Page 14-15 References ------------------------------------------------------- Page 16-18
1.0 Overview of Qantas
Qantas has gone through a couple of major changes during a bout of incidents spanning over the past decade. During this period, changes that encompasses both external and internal forces has caused Qantas to suffer an accumulated loss of AUD$2.83 billion as well as damages to their brand image. The external forces that arisen from the competition and struggles within the international markets during the global financial crisis in 2008, as well as the constant need to keep up with newer technologies. Such factors unfortunately, were not controllable by the company. However, internal forces that drove change occurring mainly within Qantas’s internal management system were controllable but were not managed properly. Those factors came in the form of leadership change, improper handling of employee disputes and failed negotiations between the trade unions. All of this occurred right after the change program that was implemented after 2006 (Ferguson, 2014).
1.1 The Crisis that affected Qantas
Qantas road to its eventual crisis began in December 2006 when a private equity bid over Qantas for AUS$11 Billion after failure to acquire 50 percent in acceptances by the locals. In 2008, Alan Joyce an Irishman, took over as CEO of Qantas. The problem emerged in the form of cultural opposition of the change of management systems and merger with British Airways (Rothwell, 2008), as the pilots and crew members supported by the Union in a firm protest for a raise in pay. This problem escalated further when they were unwilling to take off, causing the decision by Alan Joyce to ground the entire fleet (News, 2011), resulting in a massive PR problem for the company. The accumulation led to the crisis when is reflected in AUD$2.8 Billion losses. (Hepworth, 2011) A good introduction, succinctly presented.
1.2 Cultural Web of Qantas
The purpose of the cultural web is to explain the difficulties of implementing the change program within an organisation. (Wilkinson, 2014) The Paradigm, which is the belief and assumptions of the company that are often taken for granted within the organisation. (Freemantle, 2013) This is reflected in Qantas’ core business as primarily a travel service provider. However, the focus is centred more on delivering customer satisfaction and safety, which is often assumed and taken for granted. (Qantas, 2013)
For in text referencing, the full stop should be placed after the reference citation and NOT at the end of the sentence.
The full stop is The full stop NOT here should be here
The Inter-relatedness of the elements. a) Rituals/routines and Stories
� “Can-do” service attitude – Long hours and stress due to multiple-role demands. This stems mainly from individually unique customer service demands.
� Take ownership – High work involvement. Because of the high levels of commitment based demands, employees must be responsible when undertaking these requests.
b) Stories and Symbols � Limited career advancement – Logo emphasising localisation. Qantas is
based in Australia where the general population of staff remains to be Australians, employees who are unable to assimilate into the culture and have difficulty to adapt to the location, are unable to progress further where higher positions are taken up by more locals living in the vicinity.
c) Power structures and Organisational structure � Fragmented – Each strategic business units are accountable to their own
independent heads. Qantas structure allows for more autonomy and accountability across its departments at all levels. (Structure, 2017)
� Rational (Top-down) power structure – Flat structure. This type of structure can make employees more responsible and accountable for their own actions. With the formal communication channels shortened on a flat organisational structure, there can be greater span of control since the chain of command is more visible. (Yousaf, 2011)
d) Organisational structure and Control systems
� Shared value system – group policy framework. Qantas’ collectivistic culture emphasises on employee interdependence, while having a shared value system based on a group policy framework, there will be more accountability and effective communication across the board.
� Each strategic business units are accountable to their own independent heads – effective management and leadership crucial to performance. To establish an effective system within a large company such as Qantas, employees must train to be accountability to their respective individual department head.
e) Control systems – Rituals/routines
� Risk-based outcome focused philosophy – All staff have a genuine commitment to safety. Having security as a priority, employees are able recognises their environment and are familiar with their surroundings. This philosophy is based on that importance of awareness to tackle a safety threat before it happens.
Excellent application of the cultural web. The dominant culture of Qantas.
� Qantas’ culture constant emphasis on customer satisfaction and safety as their main prerogative, which results in customer before employees status quo.
� Very demanding toll taken upon the employees with long working hours and stress induced work, constantly dealing with what customers expected of them from the company. (Jobs, 2017)
� Qantas’ group policy framework, a collectivistic trait which emphasis on loyalty. There is a high chance that the management would not tolerate dissensions.
� Does not seem to embrace diversity given it has a high uncertainty avoidance based on the company organisational structure. Where conformity is expected of its employees based on their shared valued system.
Qantas’ culture is at the basis of its success and competitive advantage. However, it has a high constraint on its growth and as it becomes more successful overtime, it can become more engrained more rooted, thus making the change program more difficult to overcome. (Johnson et al., 2016)
Although there were some assumptions made, they were reasonably made. I am impressed.
1.3 Strategic Drift Model
Phase 1 Incremental change – Before 2006, Qantas as a business has been successful over a long period and their firm strategy has changed incrementally while staying align with their market. The gradual change in the business environment as seen in the model is constant.
Phase 2 Strategic Drift – Qantas eventually gets into trouble not due to their incremental changes but due to the environment around it changing more rapidly,
thus unable to keep up with it. This is in conjunction to their succession planning and plans for merger.
Phase 3 Flux – Qantas entered a state of flux in 2008, when troubles such as disputes with their engineers leading to an engine failure during one of their flight which brought about great PR issues that affected their brand image. This series of problems was coupled with environmental problems such as the global financial crisis that cost fuel prices to go up.
Phase 4 Transformational change – Eventually this led up to grounding of the planes in 2011, following the accumulation of problems resulted to a crisis when Qantas suffered a huge financial loss of AUD$2.8 Billion. Qantas had no choice but to go through a strategic transformation. Between 2011 to 2016, Qantas restructuring program had split up its international and domestic operations to be operated independently. (Qantas, 2012)
This drift should not have occurred in the first place and unsurprisingly, managers within Qantas should be able to avoid it completely, however the tendencies for them is not to do so. (Johnson, Yip, & Hensmans, 2012) Therefore, for Qantas to change and move away from its predicaments, must go through a fundamental strategic change. This change in particular is referring to Qantas’ restructuring phase. (Kaplan, 2017)
Excellent.
1.4 Lewin’s Force Field Analysis
The challenges and difficulties in which Qantas’ management face when managing change can be further explained in this model where the driving forces facilitating change, are resisted by the restraining forces hindering change. (van Der Hoorn,
2016) These forces are preventing Qantas from achieving its restructuring goals, preventing from moving to its current state to its desired state. To disrupt this balance, we must either strengthen the driving forces or weaken the restraining forces or do both. (Cathro, 2011) Driving Forces
- Qantas must restructure to tackle both markets simultaneously without disrupting their own day to day operations.
- Rising cost of fuel, is an environmental issue which cannot be avoided, Qantas must find an alternative to lower their operational costs.
- Due to the AUD$2.8 Billion loss, Qantas would eventually have to layoff 5,000 jobs and freeze wages to cushion the financial burden they are already facing from the crisis.
- Shift in management decisions and change of leadership are unavoidable and must proceed to facilitate Qantas’ restructuring plans.
Restraining Forces
- Employees would have to accept the inevitable, accept the change or leave. - Political issues Qantas has had with the three unions and the Australian
Government, would have to be dealt individually, but ultimately a truce must reach a proper settlement.
- The outcome of technical challenges and the merger are external forces that cannot be controlled.
- While company buyout and power struggle were two issues within Qantas that are internal forces that can be controlled.
Well done. However I feel that the Force Field analysis should be placed before the discussion on strategic drift. So what changes were required? What were the challenges faced in implementing these changes?
2.0 Kaleidoscope Model
For change to be successful, an assessment of Qantas’ organisational context needs to be delved into to help managers understand and approach delicately. (Barnard, 2014) In this model above, each factor above relates to a specific contextual factor that needs to be considered before devising a change plan.
Power – Alan Joyce as CEO is the key change agent within the top management that can influence any major decision making within Qantas. Qantas management needs to spread out its structure to allow for more interdependence and control. However, the only downside the lack of influence he has over the three major unions, which could present some problems when they start to interfere.
Time – Since the crisis resulted in a loss of AUD$2.8 Billion, a longer term strategic development for profitability is needed to be set in place right after the change. This process is imperative and urgent and took five years to be successfully implemented.
Scope – The entire organisation structure of Qantas would be affected as it goes through a transformational change. More explanation on transformational change is needed.
Preservation – The core interest of delivering sustainable returns to shareholders is left unchanged, while maintaining its core value towards delivering customer
satisfaction and safety. However, over the period of change over 5,000 jobs cuts were made.
Diversity – Qantas’ working culture back in 2011 shows a lack in diversity and acceptance when Alan Joyce an Irishman from Ireland was appointed as CEO of Qantas. Being a minority in an Australian dominated company, he faced a lot of disapproval which impacted on the perception of the brand. Qantas needs to increase its diversity and hire more foreign staff within the top management.
Capability – Qantas capability to implement change on a managerial level were resisted by employees who went on a disruptive protest backed by the Unions. The organisation was unable to handle this situation because it has never happened before, therefore a total grounding of the airlines was a desperate last resort attempt to control the situation.
Capacity – Qantas loss of AUD$2.8 Billion and failure to receive a loan from the Australian government, resources are limited which resulted in the management’s decision to cut 5,000 Jobs, limit their spending to selling off their old planes.
Readiness for Change – The employees are resisting change as largely demonstrated by the industrial dispute. Further announcement of the 5,000 job cuts has left a lot of uncertainty about their job security.
A good use of the Kaleidoscope concept.
The key features that of the management approach is represented in the above design choices.
Change path – Qantas change type would be an evolution change, as the nature of change is incremental and desired result would be transformational. Change start point – where change is initiated is from a top-down approach, as reflected in their power structure.
Change style – The management style which should be adopted would be a collaborative approach that is aligned with Qantas’ group policy framework.
Change interventions – Cultural intervention would be a mechanism that should be deployed to tackle all levels of the Qantas’ core competencies allowing for work effectiveness to be fully realised.
Change roles – By assigning roles and responsibilities with the use of leadership in change management. In this scenario, CEO Alan Joyce is the primary change agent.
I think this could be better presented, perhaps in a diagram or a mind map.
2.1 Sources of resistance
There are three types of resistances coupled respectively with three sources of resistance that occurred during the crisis which is result when individuals or groups perceives that the change that is about to occur would be a direct threat to them. Their natural response would be to resist them; this is observed by their attitudes and behaviour that would indicate their disinclination. (Gorman, 2013) The process of managing these resistances within Qantas’ management is explained below.
Affective resistance – 5,000 jobs were cut after the 2011 crisis to redirect operational costs to restructuring plans. Managers must be able to address their executive’s fear of getting laid off through means of education and communication, to make them understand the nature of the current situation.
Behavioural resistance – The restructuring plan is to break apart Qantas business entity into international and domestic sector. Staffs within the management would be resisting change for the dislike of breaking up their current social environment which they are already comfortable in. This reaction can be best mitigated with rounds of internal negotiations and agreements to steer out of any means of negative confrontations.
Cognitive resistance – AUD$2.8 Billion loss accumulated in 2011, forced Qantas to resort to a transformational change. Managers must implore explicit and implicit form of coercion to manage their executive’s mind-set and prepare them for the occurring changes ahead.
Good.
2.2 Lewin’s Change Model
In this model of Lewin’s change process, we can see how the three sources of resistance can be in managed through change in three stages. Change leaders within the management must be able to recognise that while managing the transition through change, they will two parallel sets of tasks. Guiding the organisation and the individuals within the organisation across the transition phase. (Payne, 2013)
Unfreeze (Letting go of the past)
1. Motivating change – Alan Joyce as CEO must set-up to motivate top management to look past Qantas’ predicaments after the crisis. He must
prepare them to make tough decisions such as the job cuts and wage freezes.
2. Creating Vision – The management must set their vision on Qantas’ restructuring plans which is to split the business into two entirely separate operations with two separate CEOs, one handling international flights and the other domestic. This is crucial as it will allow more attention on the crucial aspects of Qantas a as whole. They must also prepare themselves to handle the changes of the current social environment.
3. Developing Political Support – Qantas top-management must forget about the
history between the stakeholders before the crisis and develop political support. They must work towards answering critics to win back lost investor’s interest and the support of the public as it is crucial for the organisation to recover from their economic loses.
Change (Adapting to change)
1. Managers must be made aware of the importance and urgencies of the change. Why the job cuts and wage freezes are necessary for the company to succeed in their plans. (Fickling, 2014) During the process, they must able to identify the possible gaps while moving away from their current to their desired state. All while constantly communicating dependable positive expectancies to their staffs. (Coulson-Thomas, 2015)
2. Managers must rediscover and review upon Qantas’ core values and purpose to understand the realities of the change involved. They must also envisage a future for the company by constructing new focuses and outcomes to be set as goals for the future.
3. Managers must influence the current stakeholders to see the prospects of the change in restructuring and convince them to continue their support. They should also identify other key stakeholders that could be potential investors to the future of Qantas.
Refreeze (Moving forward)
1. To solidify the changes, managers should provide empathy and support to the affected parties and continue to communicating with them. Top-management can involve staffs to participate in more planning and decision making exercises. They can instil more faith and trust within the organisation by revealing profit and loss account facts to encourage them to be more understanding.
2. To bring about a fresh perspective to the business environment once restructuring is complete, the process of revitalising the commitment of the staffs should be kept exciting.
3. Qantas and stakeholders can come together as a group to form a coalition with the common purpose of helping each other achieve their goals.
2.3 Measuring success of change
Qantas FPO otherwise known as follow-on public offer is an issuing of shares to investors. (Kohut, 2016) In 2011, Alan Joyce was contemplating that Qantas would not be able to endure, shortly after that the restructuring plan ensued. It brought with it a bout of robust investigations and assessment of every facet of how and where Qantas operated. After the changes were made, in 2016, Qantas announced its greatest financial results of all time and proceeded onto re-establishing surplus disbursements and bought back shares. (Qantas, 2016)
The changes between 2011/12 and 2015/16:
Pre-tax Profit – Qantas’ profit before tax deduction increased by AUD$1.4 Billion.
Revenue – Qantas’ revenue went up by a 57 per cent increase since their AUD$2.8 Billion loss.
Employees – Qantas’ plans for 5,000 job cuts and shifts in management over the course of five years, downsized its employee overall strength and was able support its plans for restructuring finances.
Staff costs – The abundant profits from the results were used as rewards to the non- executive employees. After being subjected to 18 months of wage freeze, they would receive a bonus of AUD$3000 each, part-timers will receive AUD$2500. This amount totalled to AUD$80 million. (Toscano, 2016)
Aircraft fleet – During the restructuring phase, Qantas plan was to sell-off their old plans to fund the change process. Fuel Bill – Due to lowered oil and jet-fuel costs, using their top-notch hedging tactic Qantas could boost their earnings in 2016. Share Price – The cost of share price increased by two dollars, Qantas could buy back shares and handout surpluses to their investors was a testament of their financial success. During this course over 18 months, they have paid shareholders AUD$1.5 Billion. Qantas’ world ranking amongst the top 10 airlines of the world has been affected significantly after the 2011 crisis. In the table, shows their ranking position by Skytrax World Airlines Award from 2011 to 2016. Qantas in 2012 fell off the top 10 position from 8th position to 15th in the world. Once restructuring plan took off, they maintained their world ranking at 10th for three years. In 2016, at the height of their greatest financial result, the recovery brought them to the 9th position in the world. (Skytrax, 2016) In conclusion, Qantas’ transformational change and restructuring programme has been proven a success as evident by these two factors. A good discussion. Again I feel that the above could be better presented, perhaps in a table. 2.4 Recommendations Qantas after its crisis and restructuring has changed opt to change its hub from Singapore to Dubai for a fast route, reports suggested that it’s the second most favoured layover destination for the Australians. (Upe, 2013) This partnership with Emirates would form a trans-organisation system which would then present a whole new challenge and business environment for Qantas. (O'Ceallaigh, 2013) The purpose of the culture web and strategic drift model in Part 1 allows management to be able to bring up questions and challenge the taken for granted assumptions of the organisation they are working with.
My recommendations are for Qantas to consider the cultural aspects of Emirates to understand how their own strategic development with them can formulate overtime. Strategy development on a whole is recognised as a cultural occurrence, as it does not only rely on understanding and assessment of the strategy but the culture by using the cultural web. By understanding how the internal and external factors can affect change overtime based on the realities of the top executives and the people’s realities. (Gale, & Vance, 2012)
However, the risk of strategic drift as pointed out in Part 1 would be greater overtime as the organisations would find it much tougher to change the culture. While changing strategy, managers must be able to detect signs of drift in to prevent it from materialising. Some of the tell-tale signs are typically radical changes occurring within. (Dwyer, & Edwards, 2009)
The challenge of managing change thereafter is typically underestimated because of the discrepancies noted in the other implications. This however, often leads to complacency especially where a crisis has not occurred. (Muhammad, 2013)
Change management might be challenging to deal with especially when it comes to managing the huge concepts of change. But the main point for management is to make them appropriate and significant to employees throughout their daily-hood.
A good conclusion.
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nt e
rn a
tio na
l b
us in
e ss
s e
g m
e nt
, u nc
e rt
a in
ty o
f w o
rk fo
rc e
, p o
o r w
o rk
in g
c ul
tu re
e
sp e
c ia
lly a
ft e
r t he
u ni
o ns
’ d
isp ut
e
• Ex
te rn
a l t
hr e
a ts
in c
lu d
e ri
se in
fu e
l p ric
e s,
in fla
tio n
o f A
us tr
a lia
n e
c o
no m
y, in
c re
a se
d c
o m
p e
tit io
n e
g . V
irg in
A irl
in e
s in
d o
m e
st ic
m
a rk
e t,
t e
rro ris
m , c
yb e
rs e
c ur
ity ,
na tu
ra l d
isa st
e rs
• M
A N
A G
IN G
C H
A N
G E
EF FE
C TI
V EL
Y, H
O W
T O
IN TR
O D
U C
E C
H A
N G
E, H
O W
T O
M
IN IM
IS E
TH E
RE SI
ST A
N C
E O
F C
H A
N G
E SO
A S
TO IM
PR O
V E
A N
D S
TR EN
G TH
EN
Q A
N TA
S
• TH
E SO
U RC
ES O
F C
H A
N G
E- D
RI V
IN G
F O
RC ES
A N
D R
ES TR
A IN
IN G
F O
RC E
N EE
D S
TO
BE D
ET ER
M IN
ED . D
RI V
IN G
F O
RC ES
M U
ST E
XC EE
D R
ES TR
A IN
IN G
F O
RC ES
B EF
O RE
C
H A
N G
E C
A N
O C
C U
R. (
FO RC
E FI
EL D
A N
A LY
SI S)
• Q
A N
TA S
H A
S TO
U N
D ER
G O
T RA
N SF
O RM
A TI
O N
C H
A N
G E
PR O
G RA
M M
E TH
A T
IN C
LU D
ES M
A JO
R RE
ST RU
C TU
RI N
G O
F BU
SI N
ES S
FO R
Q A
N TA
S TO
G ET
O U
T O
F TH
E FI
N A
N C
IA L
C RI
SI S
IN 2
01 4
• A
LA N
J O
YC E
C EO
’S S
TY LE
O F
TR A
N SF
O RM
A TI
O N
A L
LE A
D ER
SH IP
IN T
H E
5- YE
A R
C H
A N
G E
PR O
G RA
M
• RE
SI ST
A N
C E
W IL
L BE
S TR
O N
G E
SP EC
IA LL
Y W
H EN
J O
BS A
RE C
U T.
R ES
TR U
C TU
RI N
G
O F
O RG
A N
IS A
TI O
N W
IL L
EL IM
IN A
TE M
ID D
LE M
A N
A G
EM EN
T. M
ID D
LE
M A
N A
G EM
EN T
A LS
O M
A Y
RE SI
ST T
O C
H A
N G
E.
Q a
nt a
s &
C ha
ng e
Th e
c ha
lle ng
e s
fa c
e d
in c
lu d
in g
re sis
ta nc
e , p
ro b
le m
s fa
c e
d in
im p
le m
e nt
in g
t he
c ha
ng e
� IN
TE RN
A L
• H
um a
n re
so ur
c e
p ro
b le
m s
in c
lu d
in g
re sis
ta nc
e t
o c
ha ng
e , c
ul tu
ra l d
iv e
rs ity
iss
ue s
(H o
sf e
d e
th e
o ry
, 1 96
8)
• 50
00 jo
b c
ut s
in 2
01 4
d ue
t o
c o
m p
a ny
’s p
la n
to c
ut c
o st
s, a
ff e
c te
d m
o st
ly
m a
na g
e m
e nt
t e
a m
, i nc
lu d
in g
c a
b in
c re
w s
• Fi
na nc
ia l l
o ss
$ 2.
8 b
illi o
n in
2 01
3- 20
14 fi
na nc
ia l y
e a
r, ho
w t
o re
c o
ve r t
he lo
ss
• Br
a nd
in g
im a
g e
o f Q
a nt
a s
ve ry
m uc
h ta
rn ish
e d
a ft
e r t
he in
d us
tr ia
l d isp
ut e
–
ho w
t o
re c
o ve
r
Th e
c ha
lle ng
e s
fa c
e d
in c
lu d
in g
re sis
ta nc
e , p
ro b
le m
s fa
c e
d in
im p
le m
e nt
in g
t he
c ha
ng e
� Ex
te rn
a l
• “T
he s
ig ni
fic a
nt a
nd s
us ta
in e
d in
c re
a se
s in
t he
p ric
e o
f f ue
l i s
th e
m
o st
s e
rio us
c ha
lle ng
e Q
a nt
a s
ha s
fa c
e d
s in
c e
t he
G lo
b a
l Fi
na nc
ia l C
ris is”
M r.
Jo yc
e s
a id
. •
Re sis
ta nc
e fr
o m
t he
u ni
o n
d ue
t o
jo b
c ut
s a
nd t
he ir
d isa
p p
ro ve
o
f t he
m a
na g
e m
e nt
d e
c isi
o ns
• A
us tr
a lia
n g
o ve
rn m
e nt
’s la
w t
ha t
re st
ric te
d Q
a nt
a s
fro m
a
c c
e ss
in g
fo re
ig n
fu nd
in g
h a
d h
a m
p e
re d
it s
a b
ilit y
to c
o m
p e
te
w ith
o th
e r a
irl in
e s.
C ha
ng es
N ee
d ed
:
Re st
ru ct
ur in
g :
Q a
nt a
s ne
e d
to m
o ve
it s
hu b
fr o
m A
us tr
a lia
to A
sia -
a m
o re
s tr
a te
g ic
lo c
a tio
n
D ow
ns iz
in g
: Th
e re
is a
n e
e d
m o
ve it
s o
p e
ra tio
ns to
th e
n e
w H
ub -
e st
im a
te d
o f 1
00 0
jo b
s w
ill b
e lo
st -
w ill
re m
o ve
t hr
e a
t f ro
m it
s hi
g hl
y un
io ni
ze d
la b
o r
D iv
es tm
en t:
Q a
nt a
s to
re -e
xa m
in e
it s
in ve
st m
e nt
o n
no n
c o
re b
us in
e ss
- w
ith J
e ts
ta ro
r Q a
nt a
s H
o lid
a y
(p o
o r R
O I)
C ha
ng in
g o
f C ul
tu re
s: W
ith a
fo re
ig n
b a
se d
h ub
: -
th e
re is
a n
e e
d to
in te
g ra
te it
s c
ur re
nt c
ul tu
re w
ith th
e A
sia n
C e
nt re
.
C H
A N
G E,
W O
RK A
N D
D IV
ER SI
TY (
H R0
27 7)
Q A
N TA
S’ C
A SE
S TU
D Y
FT N
TB A
IM 8
P A
RT 2
JU ST
IN SI
M W
16 03
96 92
LU M
E IL
IN W
16 03
96 94
SH EN
G JI
N G
W 16
03 97
54 ST
A N
LE Y
JA M
ES W
O N
G W
15 04
63 56
TA N
ZE LI
N W
16 03
96 82
D A
N G
V U
O N
G TR
U N
G W
16 03
97 21
LE C
TU RE
R: M
R FR
A N
KI E
YE E
Te am
-m at
e ro
le s
� Lu
M ei
lin : Q
an ta
s C
ha ng
e an
d M
ea su
re o
f s uc
ce ss
– S
lid e
3, 8
& 9
� S
ta nl
ey J
am es
W on
g: K
al ei
do sc
op e
– S
lid e
4 �
D an
g V
uo ng
Tr un
g: K
al ei
do sc
op e
– S
lid e
5 �
Ju st
in S
im : S
ou rc
es o
f r es
is ta
nc e
– S
lid e
6 �
Ta n
Z e
Li n:
F or
ce F
ie ld
A na
ly si
s &
O pe
n S
ys te
m –
S lid
e 7
Th e
C ha
ng e
• Q
a nt
a s-
e vo
lu tio
n c
ha ng
e
• N
a tu
re o
f c ha
ng e
-In c
re m
e nt
a l o
ve r 5
ye
a rs
•
Ex te
nt o
f c ha
ng e
- Tr
a ns
fo rm
a tio
n d
ue
to t
he re
st ru
c tu
rin g
p la
n
Ka le
id os
co p
e –
C on
si d
er a
tio n
of c
ha ng
e. Po
w er
x -D
e la
ye rin
g -M
a na
g e
rs h
a ve
c o
nt ro
l o ve
r e m
p lo
ye e
s fo
r c ha
ng e
p ro
c e
ss . A
la n
Jo yc
e a
c ts
a s
th e
c ha
ng e
a g
e nt
.
Ti m
e -C
ha ng
e is
in e
vi ta
b le
. -5
y e
a rs
t e
rm t
o s
uc c
e ss
fu lly
a p
p ly
c ha
ng e
s.
Sc op
e -T
ra ns
fo rm
a tio
na l c
ha ng
e w
ith in
th e
w ho
le o
rg a
ni za
tio n
in c
lu d
in g
t he
o rg
a ni
za tio
na l s
tr uc
tu re
, o p
e ra
tio n,
a nd
m
a rk
e tin
g .
Pr es
er va
tio n
-C o
re in
ve st
m e
nt in
c us
to m
e r s
e rv
ic e
-W o
rld ’s
le a
d in
g lo
ng d
ist a
nc e
c a
rri e
r
D iv
er si
ty Q
a nt
a s
ha s
a p
o o
r w o
rk in
g c
ul tu
re e
ve r s
in c
e t
he u
ni o
n d
isp ut
e in
2 01
1, t
he re
is a
lso a
lo t o
f n e
g a
tiv e
fe e
d b
a c
k fr
o m
C
EO A
la n
Jo yc
e s
a yi
ng t
ha t t
he C
EO m
us t
b e
a n
A us
tr a
lia n
no t a
fo re
ig ne
r.
C a
p a
b ili
ty Q
a nt
a s
d id
n o
t h a
ve t
he c
a p
a b
ilit y
to c
ha ng
e , w
he n
fa c
e w
ith jo
b c
ut s
e m
p lo
ye e
s te
nd t
o b
e re
sis ta
nc e
.
C a
p a
ci ty
D ue
t o
th e
lo ss
o f 2
.8 b
illi o
n d
o lla
rs a
nd t
he re
fu sa
l t o
lo a
n fro
m t
he g
o ve
rn m
e nt
, Q a
nt a
s ha
s a
li m
ite d
re so
ur c
e , t
ha t’
s w
hy th
e m
a na
g e
m e
nt a
nn o
un c
e t
he 5
,0 00
jo b
c ut
s, s
e llin
g o
ld p
la ne
, a nd
s la
sh in
g c
a p
ita l s
p e
nd in
g ,e
tc .
Re a
d in
es s
fo r C
ha ng
e Th
e e
m p
lo ye
e s
a re
re sis
tin g
th e
c ha
ng e
s h
o w
n b
y th
e in
d us
tr ia
l d isp
ut e
. A nd
t he
a nn
o un
c e
m e
nt o
f t he
5 ,0
00 jo
b c
ut s
th a
t l e
a ve
m a
ny e
m p
lo ye
e s
un c
e rt
a in
ty o
f t he
w o
rk fo
rc e
Ka le
id os
co p
e –
C on
si d
er a
tio n
of c
ha ng
e.
D es
ig n
C ho
ic es
: -E
vo lu
tio n
c ha
ng e
-T o
p -d
o w
n st
ru c
tu re
-I m
p ro
ve in
o p
e ra
tio n
-H ie
ra rc
h ic
a l s
tr uc
tu re
-D e
la ye
rin g
-W ho
le o
rg a
ni za
tio na
l c ha
ng e
-C EO
a s
c ha
ng e
a g
e nt
Ti m
e
Sc op
e
Pr es
er va
tio n
D iv
er si
ty
C a
p a
b ili
ty
C a
p a
ci ty
Re a
d in
es s
fo r C
ha ng
e
Po w
er
So ur
ce s
of re
si st
a nc
e a
nd h
ow to
m a
na g
e th
em .
LE W
IN ’S
C H
A N
G E
M O
D EL
Le w
in ’s
T hr
e e
S ta
g e
C ha
ng e
P ro
c e
ss
En su
rin g
th a
t t he
e m
p lo
ye es
a re
re a
d y
fo r t
he
ch a
ng e
Ex ec
ut e
th e
C ha
ng e
En su
rin g
th a
t t he
c ha
ng e
is p
er m
a ne
nt
C EO
A la
n Jo
yc e
a nn
o un
c e
s th
e d
e p
th a
nd s
c o
p e
o
f c ha
ng e
n e
e d
e d
fo r Q
A N
TA S.
T o
ug h
d e
c isi
o ns
su
c h
a s
w a
g e
fr e
e ze
a nd
jo b
c ut
s w
ill b
e m
a d
e fo
r th
e lo
ng -t
e rm
g o
a l o
f Q A
N TA
S.
• Jo
b c
ut o
f 5 00
0 w
ith 1
50 0
fr o
m m
a na
g e
m e
nt a
nd
b a
c k-
e nd
t e
a m
. •
W a
g e
fr e
e ze
fo r e
xe c
ut iv
e s
a nd
E nt
e rp
ris e
Ba
rg a
in in
g A
g re
e m
e nt
s ta
ff s
un til
Q A
N TA
S is
p ro
fit a
b le
a g
a in
.
M a
ki ng
t he
p ro
c e
ss e
a sie
r f o
r e m
p lo
ye e
s to
le a
ve
th e
b us
in e
ss .
To s
e c
ur e
s tr
o ng
G ro
up d
o m
e st
ic p
o sit
io n
a nd
m
a xi
m ise
Q A
N TA
S in
te rn
a tio
na l c
o m
p e
tit iv
e ne
ss .
• In
c re
a se
in u
til isa
tio n
o f i
ts A
irb us
A 33
0 to
c
o nc
e nt
ra te
s o
le ly
o n
EA ST
-W ES
T se
rv ic
e s
o n
th e
Sy
d ne
y- M
e lb
o ur
ne -B
ris b
a ne
t ria
ng le
. •
Je ts
ta ri
s a
p io
ne e
r A us
tr a
lia n
b ra
nd a
c ro
ss A
sia
a nd
w ill
c o
nt in
ue t
o s
e e
m a
jo r o
p p
o rt
un iti
e s
in
th is
ra p
id g
ro w
in g
a vi
a tio
n re
g io
n.
Q A
N TA
S w
ill re
a ss
ig n
a irc
ra ft
to b
e tt
e r m
a tc
h th
e
d e
m a
nd a
nd in
c re
a se
t he
u til
isa tio
n o
f t he
u p
p e
r a
nd u
nd e
r p e
rf o
rm in
g ro
ut e
s.
C o
re in
ve st
m e
nt in
c us
to m
e r s
e rv
ic e
a nd
lo ya
lty t
o
c o
nt in
ue .
• D
e liv
e rin
g o
ut st
a nd
in g
s e
rv ic
e t
o t
he c
us to
m e
rs .
• U
p g
ra d
in g
A irb
us A
33 0
fle e
t. •
O p
e ni
ng o
f n e
w lo
un g
e s
in H
o ng
K o
ng a
nd L
o s
A ng
e le
s. •
A nd
s a
fe ty
b e
in g
n um
b e
r 1 p
rio rit
y
• Tr
a in
s ta
ff s
th e
ri g
ht s
ki lls
a nd
c o
m m
itm e
nt to
se
rv ic
e c
us to
m e
rs .
• Re
c o
rd in
g o
f c us
to m
e r a
d vo
c a
c y
a nd
fe
e d
b a
c k.
H ow
to m
ea su
re s
uc ce
ss o
f c ha
ng e
p ro
g ra
m
• SU
FF ER
ED $
2. 8
BI LL
IO N
IN 2
01 3/
20 14
• A
C H
IE V
ED $
1. 53
B IL
LI O
N (P
BT )
IN 2
01 5/
2 01
6 W
IT H
IN T
W O
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R' S
SP A
N
• $1
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BI LL
IO N
-B ES
T RE
SU LT
IN Q
A N
TA S'
S 95
-Y EA
R H
IS TO
RY
• FI
RS T
TI M
E D
IV ID
EN D
P A
YO U
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7 Y
EA RS
• 60
% IM
PR O
V EM
EN T
FR O
M $
97 5
M IL
LI O
N L
A ST
Y EA
R
Fi na
nc ia
l r e
c o
rd s
C O
N C
LU SI
O N
Q A
N TA
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A N
SF O
RM A
TI O
N C
H A
N G
E PR
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RA M
M E
IS A
S U
C C
ES SF
U L
O N
E.
Sk yt
ra x
W or
ld A
ir lin
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w ar
ds
Ye a
r Q
a nt
a s’
s ra
nk in
g in
w or
ld ’s
to p
1 0
a irl
in es
(S
ky tra
x W
or ld
A irl
in es
A w
a rd
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11 8t
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12 O
ut o
f t o
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0, p
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1 5t
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14 11
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15 10
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