1、Appendix:Roland Berger & Partner success story: Turn-around of Lufthansa German AirlinesLH case study: The starting pointThe critical economic situation of Lufthansa in 1991 and 1992 demanded radi-cal and lasting measures to guarantee the companys future competitivenessSince 1990 the operation profi

2、ts had been negative and had continued to worsenThe intensity of competition and extreme cost pressure were increasing in the aviation industryThe Lufthansa board therefore decided on a radical, three-stage program to guarantee future competitiveness:down-sizingrestructuringrebuildingCase studyThe t

3、hree-stage competitiveness program addressed critical short-term prob-lems first before tackling deeper restructuring Case studyThree-stage programcapacity reductionsworkforce shrinkagecost-cuttingDown-sizingstructural innovationprocess innovationRestructuringstrategic innovationmarketing innovation

4、RebuildingThe down-sizing and restructuring stages unfolded in three phasesCase studyPhase III:ProcessoptimizationFocus: Continuing service-andefficiency-improvementsMeans: Clear orientation towards criticalsuccess-factors, creation of employee commitmentthrough further decentralization and business

5、 reengineeringPhase II: New structureFocus: Increased market orientation throughout the entire value chain, Cultural ChangeMeans: New structure with focus on entrepreneurship and internal customer supplier- relations Focus: Short term cost-cutting to ensure survivalMeans: an evenly spread cost reduc

6、tion program in all departmentsPhase I: Turn-arounddown-sizingrestructuringLH case study: A radical turn-around was the first priorityTurn-around phase I was marked by short-term cost-cutting and a retreat from unprofitable marketsCase study-20 %Number ofstaff-10 %Number of planes in operation-14 %N

7、umber of routesTurn-around Phase IConsultant InputEvaluation of route networkCoaching of top-management for personnel reductionIdentification of other short term cost-cutting opportunitiesCost reduction of 400 Mio. US $ achieved in 1993The results of the turn-around phase: costs fell and productivit

8、y roseCase study31 %-15 %Employee Productivity1992-1994(TKO/employee)Unit costs 1992-1994(DM/TKO)However, further cost re-ductions were necessaryto guarantee futuresurvivalLH case study: Designing a new corporate structure was the next stepThe most important goals in the restructuring phase were: Bu

9、ild units which are smaller, better manageable and closer to the marketSegment the organization into business units which reflect market needs and can be benchmarkedAchieve balance responsibilities among the business unitsBuild clear customer-supplier relationships within the company, the performanc

10、e of which can be benchmarkedAchieve a competitive cost structureForce constant internal and external benchmarkingCase studyPhase II was marked by a market-oriented restructuring of the entire groupCase studyTurn-around Phase II: Market- and process-oriented restructuringConsultant InputCreating and

11、 evaluation organizational alternativesImplementation of customer supplier relations between business areasRestructuring and redimensioning of the new business areasIdentification of additional savings potentialsCost reduction of 250 Mio. US $ Airline XOutsourcedfunctionsTechnicalCargoITNMar-ketingS

12、alesOpera-tionsplan-ningFlightOpera-tionsGroundSer-vicesCent-ralFunc-tionsAirline XTech-nicalMar-ketingSalesFinan-cePerson-nelStra-tegy/Con-trollingFlightOpera-tions= outsourced or outsourcing planned“OldStructure“NewStructureThe new structure was selected according to six criteriaCase studyProcess-

13、 and client-orientationDelegation of competence andresponsibilityIncreased trans-parency of resultsand accomplish-mentsPotential for mergersand alliancesIncreasing flexibilityand responsivenessPossibility for addi-tional thirdpartybusinessNewstructureThe new structure entailed significantly less com

14、plexity, making the company easier to manage effectivelyCase studyTech-nicalCargoAGSys-temsGmbHLufthansa AGOld StructureCentralfunc-tionsMarke-tingTech-nicalCargoGroundSer-vicesFlightOpera-tionsSys-temsLufthansa AGNew structureCentralfunc-tionsOperationsMarketingoutsourcedEmployeesRevenuesSource: Lu

15、fthansa, 1996 40.300 16 billion DM23.750 13.41010.4004.4501.000 2.320 3385 420The project was carried out through intensive communication with manage-ment, employees and the unionsCase studyManagementEmployeesUnionsExecutive boardLeadership committeeBusiness unit managementfrequent face-to-face-meet

16、ingsTVDAGWorks councilsMany face-to-face meetingsLH case study: Phase III achieved wide-ranging process redesign and innovationThe aim of phase III was to improve competitive differentiation and turnover/ market-share as well as to achieve further substantial cost reductionsCase StudyPhase 1Clear co

17、st cuttingPhase 2Improved customer orientationthrough outsourcingPhase 3Customer focus not only on business unit level, but also on process-levelincreased turnover/through process based improvement of reaction-times and innovative strengthCost-reduc-tionsCompetitivedifferentiation/market impactRolan

18、d Berger & Partner was heavily involved in designing and implementa-ting Phase III at LufthansaCase studyPhase IIIObjectivesPhase IIScopeConsultant InputIntensification and anchoring of the new market orientation by carrying the structural innovations over to the process levelReengineering of multip

19、le pro-cesses:Network Management/Marketing Processes:SchedulingPricingYield ManagementOperations Processes:Production/Operations PlanningGround ServicesFlight OperatorsService ProcessesService developmentService deliveryLine maintenanceNetwork management Cargo:hubbing conceptscorporate planning & co

20、ntrollingIntensive training of 20 client reengineering-teamsWorkshops and methodological support for running reenginee-ring projects as well as project managementConducting of worldwide bench-marking exercises in the aviation industryPhase III is still running at this time. Projected savings of US$

21、300-500 million p.a. after project completionThe Lufthansa Redesign Projects have already delivered significant results, and the savings potential will continue to rise in coming years, with approxi-mately 75 % coming from revenue increasesCase study* measured only until middle of 1996Source: Luftha

22、nsaAfter 1999, savings/revenue increasesexpected to total $ 300-500 million p.a.Savings(Mio. DM)71,5215,0236,0197,025 %75 %25 %75 %25 %75 %25,0 costreduction46,5 reve-nue im-provmentAnalysis of the key processes at Lufthansa identified high revenue-improve-ment and cost-reduction potentials through

23、greater market orientationCase studyProcessImprovement methodPotentialPlanning and steering (marketing)Yield managementPricingCentral resource planning and controlling11 other processes with high im-provement potential were also identifiedReduction of planning expense by more effective steeringImpro

24、ved prognoses and greater market transparencyFaster reaction-time in price-set-tingCoordination of resource planning according to long-term cost-reduc-tionHigh revenue potential through centralized network steeringHigh revenue potential through more precise steeringHigh revenue potential through better reaction to market develop-mentCost-savings potential through better coordinationProcess innovation at Lufthansa occurred