Two Different Types of Management Styles - Ground vs Cloud Management - KingFisher Airlines CEO Dr. Vijay Mallya and Japan Airlines CEO Haruka Nishimatsu
Posted by Varun | Labels: Leadership | Posted On Saturday, November 19, 2011 at 11:42 PM
Management Styles - Ground vs Cloud Management
I will share two entirely different kinds of CEO's approach when in crisis. KingFisher Airlines CEO Dr. Vijay Mallya and Japan Airlines CEO Haruka Nishimatsu
Today, Kingfisher airlines is cash strapped and its primary financial problem is due to the crippling interest on $1.3bn long-term debt, and it urgently needs fresh working capital.Vijay Mallya has blamed the government policy of forcing airlines to fly some loss-making routes as the cause of the financial crisis at his Kingfisher Airlines and also requested the Govt for a bailout. That, of course, is not the only reason why the airline is in bad shape and Mallya surely knows that. It is incumbent on all airlines to fly on some less profitable routes and there is no evidence to suggest Kingfisher has had to bear a disproportionate share of the burden.
What explains Kingfisher’s plight – $1.2 billion debt and accumulated losses of nearly $1 billion?
Mallya’s erratic management style which i term as Cloud Management and poor desinged strategic plans for the airlines are the primary reasons for the downfall of Kingfisher. The below video shows the luxurious and the fabulous lifestyle of Dr. Mallya. This will give you an indication as to where all the money is going ;)
On the other hand, Mr.Haruka Nishimatsu of Japan Airlines who showed through genunine ground management style when his airlines was on the verge of bankruptcy in 2010.
Here are some of the guidelines followed by the CEO Haruka Nishimatsu .
1.He knocked down all the walls to his office to allow his workers to feel as though they can approach him at any time and that they are on the same level.
2.Takes the city bus to work everyday
3.Buys his clothes from discount stores saying a boss who wears Armani puts himself at arm’s length from his people.
4. Regularly pops onto planes to meet flight attendants and take part in duties such as sorting newspapers and preparing for meals so he can stay in touch with the front lines.
5. When he was forced to cut salaries, he cut his own to a mere $90,000, which considering he runs the 10th largest airline in the world looks like minimum wage compared to his industry counterparts.
From an HR prespective, Nishimatsu provides a great example of someone who will not only run a company, but motivate employees to take the initiative giving them a feeling of job ownership. Put in the context of the economic meltdown, the majority of these steps should be a no brainer, something Vijay Mallya and others need to take a long hard look at.
Thanks,Varun
