transportprof

Now that is a good question! ^ If they pause the bonuses and the lottery, then UA's operational performance can also be expected to hit a pause.

WineCountryUA

From what has been posted on FT appears they were company-wide metrics so there was little individual linkage, more of a group/ overall team effort. But that is pretty traditional for larger workgroups, harder have individual objective metrics and there be significant costs in creating such a system. Individual metrics are more common for specific workgroups like sales or senior / execitive levels.

KansasMike

Greenwald was probably the best of a very bad lot. However, he was not a "Good to Great" advocate. I really recommend you read the book before you mock it.

beachmouse

Which in the context of rank and file airline employees makes a good deal of sense. People working strongly as a group mean the planes stay on schedule, the bags make it to the belt, the person who can't manage a complex rebooking can more easily get help from someone who knows how to finesse that part of the system....

mh3265a

Glad to see United is taking a "pause" on this effort. Hope the old program remains in place. I really don't know what they're trying to do but they better be clearer to the employees about intent. I suspect this is part of their cost cutting initiative to reach $3 billion in savings that they promised (for reasons passing my understanding) to their investors.

Ber2dca

It's a mistake as it allows sub-par performers to hide behind the efforts of the good performers (and I know first hand it's not handled like this in every company). We all know there's a huge variation in performance within UA, we've seen the 'stars' and we've seen the bad apples. If all of them get bonuses on the backs of the 'stars' then there's zero performance incentive in it and if anything it just is seen as part of a salary.

Now, the proposed lottery wouldn't really have fixed that as it would still not consider individual performance. It was obviously a faux pas because apparently within UA's culture this was always going to be seen as a veiled salary cut. From a customer point of view - but even a management point of view - it sure would be great if those workers doing right by the customer and the company get extra rewards.

PsiFighter37

I don’t think I can recall a corporation burning such badly-needed goodwill from employees so freely and with abandon like UA has done with this plan. Kirby has no way of regaining the trust lost from this debacle. What an idiot.

ContinentalFan

94010flyer

I'm not sure whats more disturbing 1) that someone at United thought this patently horrible idea was a good idea or 2) that United apparently did not attempt to focus group test this concept with rank and file employees before announcing it. It does not give one comfort into Kirby's decision making process and his brain (or apparently lack of brain) trust at United. If he can flub such an obvious decision that almost is so laughable it reads like an Onion satire article, how the hell is management making the complex decisions needed to make an airline run well. What obviously bad idea is Kirby going to adopt next. I hope this guy's time at United is limited.

mrt88

Happy to hear this has been "paused", but what an awful idea not to have vetted this somehow before...

cerealmarketer

The book's key examples include Jack Welch's GE and John Stumpf's Wells Fargo - which became two of the biggest disappointments in American business this decade. And 'experts' lay many of their current issues on practices put into place by those celebrated CEOs. i personally don't hold them responsible - what time frame should you manage, but i digress. The court of public opinoin seems to have no statute of limitations around here.

There are a lot of good things in it and many other books on the business shelf, but United needed more than a new CEO.

Few on flyertalk would have said in 2007 "we really need Richard Anderson to come in and turn around Delta."

Turns out having run Northwest he was the right guy to get their labor groups to behave during the acquisition and keep the flight attendants non union. Glenn Hausenstein from Continental engineered the product and network moves, Ed Bastian kept the Delta Atlanta DNA intact. Both of those guys were not Anderson picks, but inherited with the business. Meanwhile AA/UA got to battle their unions, while Delta didn't (with a lot of help from DL FA unions being a bigger group than NWs), and Delta enjoyed the lowest variable cost hubs in the business in a time of consolidation that let them scale them further.

There are reasons top talent wasn't lined up for the UA job - and it's not just because of the board.

luke5111

I agree up to a point but in an organization like UA you can't have an environment where 'most of you suck but the lucky ones will get something big but they may not actually want it". (like a luxury car with a big tax bill). However, this should have been presented as "you will all get your bonuses but there are a few folks that have been nominated by customers and staff that are in line to get life changing bonuses". Not much money to UA but something that might push a few people to go above and beyond. Although, they probably already do go above and beyond every day. Yes, find a way of recognizing them and you have a real incentive. That could have made for some really good press and some really good PR for the employees. Am sure somebody already mentioned this in prior threads but I was too tired from reading the negative ones that didn't bother to offer alternatives that were bettee


And, by the way, if you're going to offer a car or something, make sure it includes an additional amount to cover the extra taxes so that the car is not a burden.

fly18725

Making infallible decisions at big companies takes lots and lots of time. This is certainly an issue United (and other more established companies) struggle with. Many companies are trying to become more quick and nimble like Amazon or Google, making decisions quickly and taking some risks (in areas that don't impact safety). I guess that's not okay with FlyerTalk either.

SFOrunner

It reminded me of the personnel pitching airline credit cards and energy discounts in the airport terminals...I keep my head down and try to avoid them at all costs.

tuolumne