The Importance of Communicating A Clear Strategy
A recent issue of Fortune contrasts the CEOs at US Airways and United, and suggests that only the former is likely to lead his company from bankruptcy. Part of the reason: When US Airways' David Siegel arrived on the scene last year, he moved quickly to articulate a strategy to his workforce that clearly described what the company would do and why. It's a tough, straightforward strategy--and while its implications were unpleasant--employees could understand it and see it as rational. According to the article, the candor and clarity of Siegel's message strengthened his ability to secure the necessary concessions from the company's labor unions.
On the other hand, United's Glenn Tilton, who came on board in September, "delivered swell pep talks to the demoralized workforce" but failed to clearly articulate a strategy. The result appears to be a somewhat fatalistic, slow-to-align workforce:
[United's] unions have so far agreed to only $70 million a month in interim pay concessions--a fraction of the required payroll trimming. Some bumper stickers in employee parking lots say full pay to the last day.