Caribbean Airlines/change management & business restructuring

Client company & industry sector

British West Indies Airlines/Caribbean Airlines, Airline Sector

Scope of the assignment

When resurrecting BWIA West Indies Airlines (BWIA) in early-2006 became impossible due in large part to the inability to resolve disputes with the unions over new collective bargaining agreements, the Government of the Republic of Trinidad and Tobago (GORTT) had a decision to make. The decision was then either to close BWIA, and eliminate the well loved flag carrier which was costing the taxpayer millions of U.S.$ to support each year Or was it possible to provide safe, reliable, convenient, sustainable and cost efficient airlift for the citizens of Trinidad and Tobago, and the rest of the Caribbean?  With the help of Catalise plc, BWIA and its Board, and the GORTT were to find the guidance and support required to understand their options, and to develop and implement operational plans designed to produce a profitable and sustainable airline. 

Caribbean Airlines (CAL) was created from the heritage of BWIA, and a mere 4 months from drawing board to runway, took flight on 1 January 2007, much to the delight of its 1,150 staff, and also to the amazement of all of those who had more than a few doubts that it would happen.  Under the leadership of Peter Davies, CEO of the former BWIA, and then CEO of the newly created CAL, Catalise plc were chosen as Davies’s change implementation partner.  Previous similar successful partnerships between Davies and Catalise had convinced him that Catalise was the company to deliver not only the multi-project programme of investments required to produce a profitable and sustainable airline, but to also deliver success in terms of essential cultural transformation.

From swimming in a sea of red ink - to breakeven - to soaring profitability, all in a matter of 24 months seemed like an impossible task, particularly in an unstable global airline industry, and the extremely dynamic Caribbean marketplace.  But this is what CAL’s management, with the assistance of Catalise, promised the GORTT.  Davies and the GORTT expected a multi-million U.S.$ return on their consulting investment, and that is exactly what they have received.  And the new culture for CAL means that “customer satisfaction and increasing brand value has become everyone’s business”,   And CAL, under Davies’s leadership, means to continue as it has begun.

Description of deliverables

Approach used

Catalise have defined a unique approach to sustainable business change investments which can be employed on all sizeable initiatives. Through the seamless interaction of finance, programme management and human resource professionals, Catalise can identify, articulate and implement the spectrum of deliverables to underpin sustainable change.  Catalise employ professionals for each specific discipline in addition to generic management consultancy skills to provide expertise depth leveraged with client operational knowledge.
Catalise use a structured and systematic approach to the management of discreet investments [projects]. Underpinning our approach is the concept that significant investment should not be committed until the balance between investment risks and "investor" confidence has been established.

Phase Description 
Concept Design:

Through a short sharp intervention, Concept Design rapidly establishes a common understanding of the Why (problem definition), what (vision), How (plan) and Who (players and impacted parties) of the proposed investment. Feasibility Study: A relatively short exercise to establish whether the vision defined is viable in the current organisation. This study provides a high level investment assessment from a design and financial point of view.

Capability Assessment:

Business transformations can place a great strain on an organisation. The capability assessment tests the organisations capacity for this specific investment in context of all other work going on. In addition, the core competences and skills required to bring about the change are assessed.

Investment & Implementation plan:

A complete and detailed design of the programme including any Process, Organisational, HR and Technology aspects. This allows full and accurate cost / benefit analysis to be concluded (circa 90-95% accuracy) leading to sound investment decisions. By the conclusion of the Investment Planning phase, the organisation will have committed no more than 5% of the total expected investment but will have achieved the balance between risk and confidence to make the appropriate investment decision.

Implementation:

Each implementation project will be unique depending on the nature of the investment. This is the phase where the main body of investment is committed. The Catalise approach to implementation is highly focused on early delivery of benefits and total transparency of progress through structured stage, phase, programme and portfolio level reporting.
Post Implementation Review: Investment implementation programmes conclude long before the benefits are fully realised. Working with Catalise, the organisation will realise the full return on strategic investments through a continuous and staged management of the investment post implementation.

Working in true partnership with the client meant that Catalise was keen to enter into a risk/reward performance scheme with BWIA/CAL, the objectives of which were to:

Both the client and Catalise received significant rewards from this alignment.

Outcomes of the assignment