Tuesday, April 26, 2011

The cost of ONE olive

Over the past couple of weeks, we've delved a bit deeper into how to become a more effective Strategic Thinker:

1. Know your Mission/Vision
2. Determine your "RQ" - Risk Quotent
3. Evaluate whether you are looking to change structure, process, or market
4. Ask the right questions
5. Communicate change to the rest of your team/company
6. Implement

And...now, with all these in place...we must MEASURE success.  

Let's see how this might work:

1. American Airline's Mission Statement:
"Setting the industry standard for safety and security; providing world-class customer service; creating an open and participative work environment which seeks positive changes, rewards innovation and provides growth, security and opportunity to all employees; and providing consistently superior financial returns for shareholders."
2. Let's just say their "RQ" is average.
3. I particularly like the part of their mission statement that says "rewards innovation." So, perhaps one day, a flight attendant was passing out the salads or picking up the empty containers in First Class and noticed all the olives in the salad. She had an idea...why do we put so many olives on our salads? A lot of passengers don't even eat them all.  What if didn't put so many in them? So, she took the idea to her supervisor and it continued to be forwarded up the chain until someone said...let's try it and see!
5. The idea went back down the chain as a "change of process" which was
6. implemented on all flights.

7. Final step - measure the change and determine the impact. SAVINGS to American Airlines...
$40,000 in 1987 by eliminating one olive from each salad in first class.

This strategic thinking idea met their mission statement on a several fronts.

Would you agree this strategic thinking idea was worth it?  I would.

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