Possible executive suite shake-up [Confirmed.]
Dec 14, 2012, 8:01 am
#16
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Let's just hope that the good ex-COers like Scott have aligned themselves sufficiently away from the traditional CO way of thinking so that they can be spared in any sort of trickle-down.
With the changes we've noticed recently (1K meal choice, 1K big on the BP, etc.), it's possible that the CO way of thinking is on its way out the door. If that's the case, it's possible that ex-COers have a target on their back.
With the changes we've noticed recently (1K meal choice, 1K big on the BP, etc.), it's possible that the CO way of thinking is on its way out the door. If that's the case, it's possible that ex-COers have a target on their back.
Dec 14, 2012, 8:47 am
#17
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I just got off the phone with a United PR rep. The two named above are, in fact, no longer employed at the company.
As part of the announcement yesterday about Smisek also becoming Chairman they reorganized the executive leadership team. Marketing and Loyalty are now managed as a single group rather than split. That group is run by Tom O'Toole, formerly President of MileagePlus.
The PR rep I spoke to offered this by way of explanation:
As part of the announcement yesterday about Smisek also becoming Chairman they reorganized the executive leadership team. Marketing and Loyalty are now managed as a single group rather than split. That group is run by Tom O'Toole, formerly President of MileagePlus.
The PR rep I spoke to offered this by way of explanation:
Combining marketing & loyalty will allow us to more effectively & efficiently serve our customers.
Dec 14, 2012, 9:01 am
#18
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I agree with others that this is a step in the right direction. Hopefully, this begins the process of UA recognizing the value of high-mile fliers again.
Dec 14, 2012, 9:16 am
#19
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If this is true, somebody at the top has probably drawn a direct line from the slumping PRASM numbers to Bergsrud's desk. If he's being held responsible for repelling HVFs and his successor wants to try something different, right on.
Dec 14, 2012, 9:22 am
#20
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Dec 14, 2012, 9:29 am
#21
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Bergsrud was/is also responsible for "treating all elites equal" focus. Plus, merchandising seems to have underperformed. This announcement, if true might indicate that some of the CO approach to running the new United is receiving renewed scrutiny. Although I don't know much about Amenechi, this should be considered a step in the right direction.
Agreed. Smisek created this mess and he is further consolidating his power with far fewer checks and balances than are appropriate.
Last edited by FlyinHawaiian; Dec 14, 2012 at 9:56 am Reason: multi-quote
Dec 14, 2012, 9:34 am
#22
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I just got off the phone with a United PR rep. The two named above are, in fact, no longer employed at the company.
As part of the announcement yesterday about Smisek also becoming Chairman they reorganized the executive leadership team. Marketing and Loyalty are now managed as a single group rather than split. That group is run by Tom O'Toole, formerly President of MileagePlus.
The PR rep I spoke to offered this by way of explanation:
As part of the announcement yesterday about Smisek also becoming Chairman they reorganized the executive leadership team. Marketing and Loyalty are now managed as a single group rather than split. That group is run by Tom O'Toole, formerly President of MileagePlus.
The PR rep I spoke to offered this by way of explanation:
I want RED carpet boarding back for 1k and GS..^
Dec 14, 2012, 9:40 am
#23
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Interesting story developing that Mark Bergsrud, SVP Marketing and Chris Amenechi, VP Merchandising & Distribution were asked to leave the company on 13 December.
That's a major shake-up and it will be interesting to see who is brought in to replace them. The company has certainly struggled with their marketing message since the merger and I personally know of at least a few glitches on the distribution side of the house, though it is not clear if this move is tied to specific events or more general problems.
I haven't yet seen confirmation of this in any public sources and I'm working on getting that confirmation. If true, this is a pretty big deal.
It has been confirmed. See below for more.
That's a major shake-up and it will be interesting to see who is brought in to replace them. The company has certainly struggled with their marketing message since the merger and I personally know of at least a few glitches on the distribution side of the house, though it is not clear if this move is tied to specific events or more general problems.
It has been confirmed. See below for more.
I just got off the phone with a United PR rep. The two named above are, in fact, no longer employed at the company.
As part of the announcement yesterday about Smisek also becoming Chairman they reorganized the executive leadership team. Marketing and Loyalty are now managed as a single group rather than split. That group is run by Tom O'Toole, formerly President of MileagePlus.
As part of the announcement yesterday about Smisek also becoming Chairman they reorganized the executive leadership team. Marketing and Loyalty are now managed as a single group rather than split. That group is run by Tom O'Toole, formerly President of MileagePlus.
Dec 14, 2012, 9:51 am
#24
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With Smisek even more in charge than before, I wonder whether this is just a way of casting blame on the message and messager rather than on the more substantive systemic and leadership problems. Heads had to roll to detract attention and responsibility from those underlying problems. Maybe more (superficial) attention to MP and elite members is in store, but I'd be surprised if we see real improvements in MP, in IT or in customer service.
Smisek appears to have walked into a situation, fired everyone in sight who might have been a threat, replaced them with cronies, and apparently did this from top to bottom, from side to side at all levels and silos within the organization, right up to the BoD (it would seem, since so many of them are from CO).
Having created a safe haven, it appears that he proceeded to dictate his ways throughout the organization. And, now, perhaps, he's created some scapegoats and fired them too. Combine this with his recent quote in NYT about demanding that sUA staff either "change or leave" for further insight.
Leadership? Not. Machiavelli could hardly do better.
Dec 14, 2012, 9:57 am
#25
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You know what I've realized from all of this: Smisek has demonstrated ZERO leadership. A leader can walk into a situation, create a compelling vision, and motivate others to follow.
Smisek appears to have walked into a situation, fired everyone in sight who might have been a threat, replaced them with cronies, and apparently did this from top to bottom, from side to side at all levels and silos within the organization, right up to the BoD (it would seem, since so many of them are from CO).
Having created a safe haven, it appears that he proceeded to dictate his ways throughout the organization. And, now, perhaps, he's created some scapegoats and fired them too. Combine this with his recent quote in NYT about demanding that sUA staff either "change or leave" for further insight.
Leadership? Not. Machiavelli could hardly do better.
Smisek appears to have walked into a situation, fired everyone in sight who might have been a threat, replaced them with cronies, and apparently did this from top to bottom, from side to side at all levels and silos within the organization, right up to the BoD (it would seem, since so many of them are from CO).
Having created a safe haven, it appears that he proceeded to dictate his ways throughout the organization. And, now, perhaps, he's created some scapegoats and fired them too. Combine this with his recent quote in NYT about demanding that sUA staff either "change or leave" for further insight.
Leadership? Not. Machiavelli could hardly do better.
Dec 14, 2012, 9:59 am
#26
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"...He added the airline was now intent on providing better operational performance and consistently good customer service. “And there are people who don’t like that,” he said. “I understand that. What I want is those people to either change or leave.” ..."
Dec 14, 2012, 10:01 am
#27
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^ Exactly what I would want or expect if I were in his position.
Dec 14, 2012, 10:04 am
#29
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Here's the actual quote from the NYT article:
"...He added the airline was now intent on providing better operational performance and consistently good customer service. “And there are people who don’t like that,” he said. “I understand that. What I want is those people to either change or leave.” ..."
"...He added the airline was now intent on providing better operational performance and consistently good customer service. “And there are people who don’t like that,” he said. “I understand that. What I want is those people to either change or leave.” ..."
It is not credible to suggest that the root cause of our problems is that the front line employees simply do not want to provide better operational performance or consistently good customer service.
This is a great example of the "scapegoating" mentality that starts at the top of this organization.
Dec 14, 2012, 10:09 am
#30
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But not a strategy for motivating better performance. Smisek seems to have no idea how to lead an organization where success depends on a loyal, empowered rank and file. You don't improve things by telling people to get lost.
