United Airlines Must Change Its Culture of Abuse if It Wants to Fly High Again

Consumers should be aghast with United Airlines’ culture of abuse. What United Airlines did when it physically ejected Dr. David Dao of Elizabethtown, Kentucky from UAL flight 3411 was demeaning, shameful and abusive to all consumers. 

Dr. Dao was a booked and paying customer. He had properly boarded UAL flight 3411, operated by Republic Airlines, from Chicago’s O’Hare Airport to Louisville along with other passengers. But, when United needed four seats to fly crew members to Louisville to service another flight, Dr. Dao was forcibly removed and manhandled by Chicago’s Aviation police.  This bungled incident will cost UAL far more in lawsuits, negative publicity and compensation than it was worth.  Of course, Dr. Dao has now become another poster child of abused customers around the world by one more unconscious business.

While there are many angles and twists to the gross mishandling of Dr. Dao, two serious questions must be asked that will have a far-reaching impact on United Airlines’ bottom line and the overall way the airlines industry treats customers in the future.  

The first question is this: How will United Airlines change its culture of abuse?

Regretfully, this is not UAL’s first public relations disaster with customer abuse. You might recall the ugly incident in July 2008 when Canadian musician Dave Carroll witnessed from his window seat United Airlines baggage handlers tossing around his $1,200 Taylor guitar on the tarmac while loading bags on his United Airlines plane in Chicago’s O’Hare Airport. When Mr. Carroll’s flight landed in Nebraska, he discovered his guitar was broken. UAL ignored Dave Carroll’s request to make things right, so he and his band, Sons of Maxwell, became consumer folk heroes on YouTube when they recorded a song that chronicled the ugly incident. Their classic song and video, United Breaks Guitars, went viral with over 17 million viewers to date. It can be viewed at https://www.youtube.com/watch?v=5YGc4zOqozo  

While the song is funny and well performed by the Sons of Maxwell band, it became an international embarrassment for United Airlines. It reminded anyone who flies of the old adage that “the customer comes last at United Airlines,” especially if your first name is Dave or David!

What defies logic is UAL could have easily resolved the broken guitar problem by reimbursing Dave Carroll $1,200 to replace his beautiful Taylor guitar.  But, no. United Airlines did just the opposite. For over a year, UAL passed the buck and even blamed Mr. Carroll for his broken guitar instead of accepting responsibility for their baggage handlers’ mistreatment of the instrument and their gorilla-like tactics when tossing bags and guitar cases around on the tarmac for sport.

When Carroll and his band published the YouTube video and it went viral, UAL quickly changed its own tune. But it was too little, too late. The damage was already done and United Airlines suffered yet another broken nose for its arrogance and customer abuse practices.  

Ironically, it was Taylor Guitars of El Cajon, California who reaped all the positive public relations by replacing Dave Carroll’s guitar for free and strumming the broken guitar incident for all it was worth. Asa result, Taylor Guitars earned a reputation as a conscious company that understands how to treat its customers. It’s no coincidence that Taylor Guitars is among the most respected guitar makers in the world.  

Fast forward seven years later to April 2017, and it appears the “United Breaks Guitars” lessons have been lost once again on United Airlines. Did UAL learn nothing about how to deal with its customers from the Dave Carroll broken guitar incident? Apparently not. With regards to the recent Dr. David Dao fiasco, the apologies by UAL’s chief executive Oscar Munoz is a positive start, but it’s only a start. More must be done internally to fix United Airlines’ broken culture because it is a culture that is based on unconscious business practices that will eventually crash the company. But how does United Airlines fix its broken culture?

This is the same question that many other companies and agencies are struggling with because they are also contaminated with toxic cultures that lead to illegal or abusive consumer practices such as those we witnessed in UAL’s forceful removal of Dr. Dao.  Now, United Airlines and the city of Chicago’s Aviation Department police force have been added to that list of disgraced companies and agencies that also include such well-known brands as BP Oil, Takata (the Japanese manufacturer of faulty airbags), Wells Fargo Bank, Volkswagen, the Department of Veteran Affairs and numerous law enforcement agencies across the United States that have soiled their reputations because of botched treatment of citizens and the ill-advised use of deadly force.

Each of these companies and agencies is guilty of abusing their customers through a culture of lies, deceit and gross mismanagement that have resulted in unfavorable publicity, lawsuits and the termination of senior leadership.  Of course, bad leaders never survive in these situations. Also, such negative policies and abusive practices do not happen arbitrarily. They are the result of inept leadership who are either  guilty of promoting an abusive customer culture or solely focused on the bottom line and clearly forget that it is the “top line” – that is, your people, customers and suppliers – who generate every dollar you earn.  Instead, these unconscious companies and their profit-hungry leaders place the customer last, not first. This has been UAL’s standard unconscious practice for many years, and it shows!

And, sadly, it’s insulting and demeaning to the many dedicated UAL employees who really do care about their customers. But, their hands are tied when the bean counters run the business and implement policies and procedures that are contrary to the interests of customers and employees.

This explains why we’ve witnessed a serious decline in the airline industry when it comes to food quality on flights, high fees for checked baggage that sometimes never reach their assigned destination, economy seats that have shrunk to the point where they are very uncomfortable and there isn’t enough leg room to move between seats.

In the case of the Department of Veterans Affairs, a federal agency with over 150 hospitals nationwide and nearly 300,000 employees, the contamination of its culture culminated in a serious scandal in 2014 which VA officials were found to be falsifying data to hide how long veterans were waiting to see doctors at VA hospitals. In many cases, veterans died because they could not receive treatment in a timely manner. The 2014 controversy led to the resignation of Veterans Affairs Secretary Eric Shinseki. But, evidence shows the VA’s mismanagement, retaliatory policies against whistleblowers, and abusive practices towards patients had been in place for decades. Unfortunately, no leaders within the VA had the courage to challenge, confront and change the VA’s toxic culture. Anyone who dared to blow the whistle was either reassigned or terminated. In other words, the VA encouraged a hostile culture where they always shot the messenger rather than fix the problem.

The second question is this: What changes will United Airlines implement to transition from an unconscious business, that is currently drive by the bottom line, to a conscious business that is more compassionate, caring and values its employees, customers and suppliers?

It is this second question that will ultimately determine the profitability and survival of United Airlines and every other company or government agency that plans to be in business in ten years. Why? Because Millennials and Generation Z do not tolerate or patronize unconscious companies that endorse abusive practices or mistreat their customers. 

There is a Conscious Business Strategy™ every company and government agency can follow that will result in transforming their business from an unconscious to a conscious entity. It consists of five steps. It’s simple, but it isn’t easy to implement because change comes hard, especially when special interests within the organization and the selfish interests of long-term employees are protected over the well-being of its customers. This is what happened at United Airlines with musician David Carroll and Dr. David Dao, who became its latest victim on UAL Flight 3411.

The first step in a Conscious Business Strategy™ is a culture assessment. This includes a review of your purpose and principles. Every policy, rule and procedure must be examined and re-evaluated before it can re-affirmed. This first step also invites your employees, customers and suppliers to answer key questions about your workplace practices that will help define the kind of culture you desire and quickly identify and fix nagging issues and concerns.

The second step is building your Culture Identity™ system. This system was designed by CRI Global CAPS, a business culture consulting company, and is similar to creating a game plan by which you refine those elements of your culture that can strengthen business operations, company efficiencies and boost profitability. The Culture Identity™ system is driven from the top down, so it’s a process that must be valued and championed by the CEO and his/her C-suite leadership.  United Airlines appears to have a CEO who understand the human side of his business, so that’s a positive start. Hopefully, others in his C-suite share his passion.

The third step is the design and implementation of a Culture Blueprint™ based on your company’s financial goals and performance objectives. This becomes your blueprint by which you shape your standards and values, measure and improve performance, strengthen operational efficiencies, boost employee engagement and achieve better results because your Business Operations, Profit Strategies and Customer Relations are aligned and working together for the good of the company and your valued customers.

The fourth step is the Culture Gap Analysis. During this phase, you measure and analyze results, provide feedback to leadership, and refine performance metrics so that your people can produce better results. During this phase, you also assess customer response and suggest ways to build closer bonds with your most valued customers.

The final step is training all your employees and key suppliers through the Core Power Wheel™. This step consists of identifying each employee’s areas of strength and building action teams based on the various strengths of your people.  I like to use the expression, “Let your employees shine!” This means placing employees in jobs they love to perform and giving them the latitude, resources and responsibilities necessary to shine.

Unfortunately, good companies sometimes do stupid things because they follow antiquated policies, rules and procedures that do not benefit their customers. This has been the case with United Airlines and other companies mentioned in this article.  As Sir Richard Branson noted, “Building a business is not rocket science, it’s about having a great idea and seeing it through with integrity.”  Branson also reminds us that people make the difference. He said, “Your company should act as a springboard for ambitious employees, not a set of shackles.”

About the Author: Tom Hinton is a popular business speaker and the author of several books including The Heart & Soul of Culture: How to Transition from an Unconscious to a Conscious Business to Save Your Bottom Line.  He can be reached at: tom@tomhinton.com

Howto Fix the Broken Culture of Volkswagen

by Tom Hinton

Volkswagen, which has admitted to installing software to cheat emissions tests on 11 million diesel vehicles, is the latest example of a company tarnished by a culture of deceit and heavy-handed leadership that placed unreasonable demands on its people. As a result, the giant auto company is facing criminal investigations around the world and an internal crisis that threatens its future stability and marketplace dominance.

Their CEO is out. Martin Winterkorn, who oversaw VW for several years, apparently was an overbearing and unreasonably demanding boss who didn't like failure and put undo pressure on his managers to succeed. In turn, they resorted to cheating the system and breaking all the rules of fair play. It will cost VW dearly. 

There's an old Russian axiom, "A fish stinks from the head down." With Volkswagen, it appears the company's culture of deceit and deception ran all the way to the top. Several former managers in the VW group - whose brands also include Audi, Porsche, SEAT and Skoda - have stated few executives dared approach Winterkorn. He was bull-headed, unreasonable and uncompromising. These are traits of an insecure leader and a recipe for disaster -- which is exactly what VW has on its hands!

According to news reports, Volkswagen has declined to comment on whether the firm's culture or the management style of Winterkorn, who resigned last month, had been a factor in the emissions cheating scandal. But, Winterkorn's ouster presents a unique opportunity for Volkswagen to polish its image and refine its once-proud culture -- a culture based on integrity, fairness and open communication with senior management.

It seems some senior executives at Volkswagen get this message. The question is: Will they act and do the right thing to restore Volkswagen's brand and reputation?

Bernd Osterloh, a member of VW's supervisory board, told employees in an open letter: "This company has to bloody learn and use this opportunity in order to get their act together, and 600,000 people worldwide have to be managed in a different way," he said. "This is very, very clear. We need in future a climate in which problems aren't hidden but can be openly communicated to superiors,"

So what steps can Volkswagen take to restore its reputation?

1. Clean out the senior management (including many of the board members) that represents a corrupt culture and replace them with capable managers who are fair, just and will not tolerate deceit and deception.

2.  Give greater power to the company's two boards.  All German companies have two boards: the management board, led by the chief executive, runs the business day-to-day. The second board is the supervisory board, to which the CEO reports. The supervisory board can hire and fire management board members and must sign-off on major strategic decisions.

3.  Make Amends.  As a company, Volkswagen has lost the trust of thousands of car owners and millions of potential car buyers. Why trust a company that cheats and lies? So, VW must make amends. Changing its leadership is one step. But, offering compensation and fair deals to any customer who wants to trade in their diesel vehicle for a different one must be part of the equation. VW must also establish some kind of institute within its company that fosters education and training for all employees and suppliers on key subjects including open communication, leadership and the values and principles that made VW a once-great company.

About the Author: Tom Hinton is the co-author of the forthcoming book, The Heart & Soul of Culture: How to Align Your Culture to Your Brand.  He can be reached at: tom@tomhinton.com

The Return of Corporate Culture

After several years of being relegated to the sidelines, companies are once again paying attention to the significance of their corporate culture. Culture was a hot topic among CEOs and leading consultants in the early 2000s, but it slipped off the radar screen as wild profits and social media ballooned with the new millennium.

But, ironically, culture has returned thanks to auditors and regulators who have discovered that culture matters. In fact, a company’s culture has proven to be a reliable indicator of the company’s vulnerability in terms of risks, employee turnover, compliance complications and legal entanglements. At the same time, auditors and regulators are finding that companies that operate with a high performance culture have fewer risks and regulatory concerns because they have developed a balanced among their business operations, profit strategies and customer relationships.

And so, culture is making a strong comeback and once again occupying an important seat in the C-suite.

What is “culture,” and what aspects of culture should a company focus on?  We define Corporate Culture as “the blending of your company’s history, heritage, standards, values and attitudes with the experiences of your customers and employees.” Because your corporate culture impacts performance and profitability, it is much more than a simple behavioral model that evaluates the norms and expectations of employees and how they perform their work and interact with customers.

With regard to what you should focus on in terms of refining your corporate culture, we emphasize three areas. We refer to this as your Triad of Business Success™.  The three legs are your Business Operations, Profit Strategies and Customer Relations. For more information on each of these key areas, please visit: www.CRIGlobalCAPS.com 

As you look at your performance history and profit strategies it’s important to recognize that culture plays a significant role in your bottom line.

About the Author. Tom Hinton is president of CRI Global CAPS, an international consulting firm based in San Diego, CA that focuses on helping its clients design and implement culture assessments and performance systems. He can be reached at: tom@CRIGlobal.com

Employee Engagement Requires Engaged Leaders

Over the past 20 years, I've taught thousands of managers and supervisors how to improve their interactions, strengthen communication and build better relationships with employees. Honestly, it’s been an uphill struggle. Why? 

Well, the fact is most companies aren't invested in their people. They give them a job to do, a paycheck and then they expect them to show-up at work and perform the job to the best of their ability. The late management guru Dr. Peter Drucker used to challenge his students and audiences by imploring them not to hire just the arms and legs of people, but also employ their brains and hearts because it is the heart and souls of your people that separates ordinary companies from extraordinary companies. I agree.

And, while paying people a competitive wage and providing them a safe, pleasant work environment would seem like a fair proposition, it’s not enough anymore to stay ahead of the competition.  It’s also not enough to keep your employees motivated and committed to the goals of senior management; and, it’s certainly not enough to retain you best-and-brightest talent.

What’s really required of companies – assuming you want to be recognized as an industry leader or best-in-class organization – is to help your people discover their passion. You see, people who are passionate about their jobs bring an entirely different mindset to the workplace.

This level of passion and commitment on the part of employees is what leaders should be creating in the workplace. But, it’s tough because it requires leaders to get outside their comfort zone and move beyond traditional employee engagement practices.  So, how do you achieve that?

Here are three steps to get you started.

1. Acceptance. Leaders need to accept the fact that an employee is only as committed to his/her jobs as the leader is committed to that employee. Once leaders accept this basic premise, a mind shift occurs and leaders change how they relate to employees. That shift requires a leader to respect the employee as a human being who is their equal despite differences in income, title, education and their upbringing. Each person has unique gifts and talents. Remember that regardless of the job, every employee has a life and interests outside the workplace.

2. Celebrate, Recognize and Reward.  The best leaders embrace the Three Musketeers philosophy – “All for one and one for all!” When an employee is part of a team – and feels as though he/she plays a meaningful role on that team -- commitment follows and passions flow. When leaders challenge a team to perform, and recognize a team’s accomplishments, they are strengthening the team’s commitment to the organization. I have always believed that leaders must recognize a team, but also reward individual achievements. 

3. Set the Example.  Most leaders are good at setting goals and establishing expectations. But, frankly, very few leaders set the example or lead the way down unchartered paths so their teams can follow.  Best-in-class organizations have inspirational leaders who are not afraid to strap on a backpack and walk the journey with their people. Remember, your people are human. They want to see the human side of their leaders as well. No one expects perfection, and no one expects the leader to have all the answers. However, your people do expect the leader to somehow find the answers and show them the way.

This is how meaningful employee engagement happens. It requires passion, involvement and a commitment on the part of leaders. When employees see these attributes in their leaders, they too will be inspired, engaged, committed and passionate about their job.

The CEO is also the Chief Wellness Officer

There's no question that the chief executive officer has many important responsibilities.  But, one of those responsibilities that is becoming more important to the productivity and profitability of your organization is the role of chief wellness officer.

What exactly is a chief wellness officer? The 10,000 Days Foundation defines a chief wellness officer as the individual who is responsible for the personal growth and professional engagement of employees in the workplace. It requires leadership and skill.

We are not talking about the health and physical wellness of employees although that's important. Rather, a chief wellness officer is concerned with the mental and spiritual development of employees because these are the two areas that influence a person's productivity, commitment to their job, teamwork and adherence to the core values of your organization. It's so much more than training or human resources. It's really about rejuvenation and reconnecting people to the workplace.

During The 10,000 Days Foundation's Life Balance Retreats, we emphasize the importance of commitment to the workplace because a person's legacy is often defined by their work and career. For someone to have a rewarding career and work experience is critical to the individual's sense of pride, self-worth, and shaping their legacy.

A disturbing statistic recently cited by the Gallup organization is that 8 out of 10 people are unhappy with their jobs. If this statement is accurate, it speaks to the uphill challenge many CEOs face in trying to re-energize and rejuvenate their employees to be more productive and more committed to the core values and goals of the organization.

While there is no single remedy, The 10,000 Days Foundation has experienced a high degree of success in helping managers and employees, who feel under-appreciated at work -- especially those over 50 years old -- find ways to rediscover the joy of work and have a rewarding and satisfying career.  After all, life is about so much more than simply one's work or job title. 

While work is very important, the most productive employees are those who have created balance in their lives by addressing the eight elements represented in our "Wheel of Life" assessment. Those eight elements are: Environment, Relationships, Wellness, Career, Romance, Fun & Recreation, Money and Legacy. 

This is what we focus on during our Life Balance Retreats. In the process, we help attendees discover what's really important to them and how to set realistic goals to achieve their desired outcomes.

The CEO cannot do it all. He or she needs a talented team of professionals -- internally and externally -- who can help them advance their vision, reinforce their core values, and re-engage their employees so the organization is successful and the employees are fulfilled.

The 10,000 Days Life Balance Retreats are one powerful tool a chief wellness officer can use to create more productive and committed employees.

For more information, visit our website at: www.LifeBalanceRetreat.com

Christmas is a Time to Give of Yourself

It seems every year, as Christmas approaches, I find myself being asked the same, old tired question... "So, what do you want for Christmas?" The truth is nothing. Well, at least nothing material. Oh, sure, I can always use a golf glove or a subscription to National Geographic. But, what I really want is more precious than anything material.

I'd simply like to enjoy a wonderful conversation with those I love. I'm sure I speak for many parents who never get enough holiday time with their kids. Or, for that matter, close friends and relatives. One of the greatest joys in life is to simply spend meaningful time with those you love.

So, this Christmas and Hanukkah,  give the gift of yourself and spend time with those people you love. It's the most precious gift of all.

Merry Christmas!

A Goal Setting Idea for Next Year

December is a good time of year to start thinking about your goals for next year.  I know it's difficult amid the chaos of the holiday season, but I like to steal away a few minutes each day during December to think about my goals for the new year. The fact is it gives me a huge advantage over my competition and allows me to "hit the ground running" on January 1st.

People who set goals typically outperform their competition. This is a fact. Did you know that only 37% of American adults say they set new goals at the beginning of each year. This means if you are a Goal Setter, you're in the top third of Americans who have a chance at success in the new year. After all, most people who don't set goals have no clear direction as to where they're going or how to get there. So, it stands to reason that Goal Setters are miles ahead of their competition.

Another key part of success is to share your goals with someone you trust -- someone who will encourage you onward to success. It's reported that 30% of American adults don't share their goals with anyone. I have found that when I talk about my goals with others, it reinforces my belief and determination. So, share your goals with people who will reinforce them.

I'm encouraged by the fact that 14% of Americans say they are making personal or spiritual changes in their life, while 13% are setting financial goals. This means more people are making the connection between personal growth and creating greater abundance in their lives.

Another important goal-setting area is Life Balance. Too often, after a speech, people will come up to me and say "I wish I had more time to spend with my kids, or travel, or sit on a beach and so forth..."
I always reply, "You have as much time as you need. The question is how do you choose to spend it?"
I've never known anyone who, on their death bed, wished they had spent more time on the job.

The truth is we make choices every day that lead us to greater fulfillment or greater frustration. So, this month, take some time to think about what really matters to you. What's important in your life? Then, set goals that move you in that direction.

I can guarantee that you will find greater happiness and fulfillment in life if you set worthy goals that bring you closer to your dreams.