Information Systems: British Airways BA Brief Corporate Profile The origin of British Airways was traced on August 25, 1919 just after the onset of World War I (British Airways N. D.). Its remarkable feat throughout its 90-year history was manifested in its ability to offer full global service “offering year-round low fares with an extensive global route network flying to and from centrally-located airports” (British Airways N. D., par. 1). The performance of the organization is directed towards clearly identified Key Performance Indicators (KPI), defined by Reh (2011) as “quantifiable measurements, agreed to beforehand, that reflect the critical success factors (of the company, department, project. )” (Reh 2011, par.
1). For British Airways, the KPIs are in the areas of customer recommendation, operating margin, and network punctuality (British Airways 2010, 32). The mission statement of British Airways is being the undisputed leader in world travel (CAP Online Features N. D.). Key Performance Indicators 1. Customer Recommendation The success of British Airways is greatly influenced by the ability of its clientele to exemplify satisfaction from the services rendered and recommend the services to others or for repeat availment.
As explicitly stated, “customer recommendation is a key measure of our success. Our Global Performance Monitor (GPM) survey, an onboard customer survey, together with a follow-up online survey on the arrivals process, provides monthly insights into customers’ views…The customer recommendation measure is based on the percentage of customers who, when surveyed, were very, or extremely likely to recommend British Airways to friends, family or colleagues. ” (British Airways 2009, 30). The set target for customer recommendation is 65%. As of 2009 -2010, British Airways has achieved 63% which was below target due to the following reasons: “a small reduction in levels of satisfaction in response to the onboard catering changes, and also through some significant operational disruption.
Our score was also slightly depressed by our move in April 2009 to an onboard survey for shorthaul flights” (British Airways 2010). 2. Operating Margin The organization’s key measure of financial performance is through its operating margin. The target set is 10% through an economic cycle which was reached during the 2007 – 2008 economic period; but for 2009 – 2010, there was a significant decline that reflected a negative operating margin of 2.9% (British Airways 2010). 3.
Network Punctuality Under the punctuality indicator, British Airways measure two critical elements: departure punctuality and ‘ready to go’. Customers have predefined time schedules and expert professionalism in time management and control. The ‘ready to go’ measure was defined as “how many of our flights are prepared for departure at three minutes before the scheduled or planned departure time and focuses on the aspects of the departure process within our control” (British Airways 2009, 30). The target set was 52% for 2010 and the actual score was 59% which exceeded the goal (British Airways 2010, 32). Analysis against Mission Statement With the defined mission statement, strategic goals include expanding services on a global scale, providing a unique premium in customer service and focusing on aviation.
With the identified KPIs there were clearly set in targets, British Airways has proven that the strategies worked to achieved some KPIs (network punctuality), need to work a little more to achieve target for customer recommendation and would have to focus more on achieving operating margin which was significantly below target. Reference List British Airways.
N. D. Explore our past, [Online]. Available at: http: //www. britishairways. com/travel/explore-our-past/public/en_gb (accessed September 9, 2011). —. 2009. Our Key Performance Indicators, [Online]. Available at: http: //www. britishairways. com/cms/global/microsites/ba_reports0809/pdfs/KPIs. pdf (accessed September 9, 2011). —. 2010. Our Strategy and Objectives, [Online]. Available at: http: //www. britishairways. com/cms/global/microsites/ba_reports0910/pdfs/Strategy. pdf (accessed September 9, 2011). CAP Online Features. N.D. Identity heralds a new vision at British Airways, [Online]. Available at: http: //www. jyanet. com/cap/0614fe0.htm (accessed September 9, 2011). Reh, FJ. 2011. Key Performance Indicators, [Online]. Available at: http: //management. about. com/cs/generalmanagement/g/keyperfindic. htm (accessed September 9, 2011).