What is United telling employees about the leadership shakeup that will pivot Scott Kirby to the position of CEO next May?
Earlier today I wrote about the upcoming leadership change at United. In 2020, Oscar Munoz will step down as CEO and become Executive Chairman. Scott Kirby, United’s current President, will assume the CEO role.
> Read More: Scott Kirby Will Replace Oscar Munoz As United CEO In 2020
United shared a video with employees earlier today in which Munoz and Kirby share about the upcoming leadership change. Even though it was intended for employees, United posted the video online.
I took the liberty of putting together a transcript of the chat, which is quite illuminating at certain points:
Munoz: When I started as CEO, we laid out a pledge to all of you about the journey we would be on. And yeah, it was really simple, you know, after a careful amount of listening, to a lot of our folks, our first step was we needed to regain the trust of our employees. I always felt so, so strongly about that because I got a chance to talk with you, and I could feel the pride and the professionalism and the desire to get better. And so, I think one of the amazing things is the time it’s taken us to get to this point has been relatively short, and that’s all, it’s all a credit to the great work that you’ve helped us do.
And one of the many roles of a CEO – it’s an important one – is how to develop the leadership around you, and importantly how over time you work the succession planning process. And what we’re announcing today is that I will transition to Executive Chairman of the Board in May of 2020 following our Annual Meeting, and I’m so happy and glad to announce that Scott Kirby will become your new CEO, our new CEO.
Kirby: Not to be too corny, but I wanted to start and thank you. Thank you first for taking a chance on me three and a half years ago but more than that, for mentorship and friendship. I will be a much better executive today, will be a much better CEO, and a better person, for what I’ve learned from you, and following in the footsteps of an incredible leader.
I’m honored to succeed Oscar in the role as CEO in May of next year, and to continue to build on the partnership that he and I have developed today, and the teamwork that is happening here at United. And as we look forward, in the next few years, we’ll continue to the growth that’s been great, getting the airline back to growing again. It’s been good for our employees, for our customers and our shareholders.
We have an incredibly strong position and an incredibly bright future ahead, and personally I’m excited to spend even more time out with all of you, listening to you, sharing your enthusiasm for the future, and together building the best airline in the history of aviation.
Munoz: This is meant to be a very seamless transition. Until May 2020, Scott and I will continue in our same roles, doing the thing that you’ve seen us do before, specifically from my perspective on our customer culture and importantly, for you, our employees.
Kirby: I love the fact that almost every time I get feedback from employees, 99.9% of the time, it is something about “how do we make this airline better for our customers?”
And that is an incredible amount of energy, innovation and creativity, and that’s the foundation that a great airline is built on.
Munoz: You know, one of the early tenets that we had in our company was regaining the trust of you, our employees, and as I think of this transition and the period ahead of us, there is no one I trust more than Scott to continue that legacy.
Kirby: Thank you.
My Thoughts
The press release about the leadership change contains different statements from both men.
Munoz, focuses on the culture:
“When I joined United as CEO, I laid out ambitious goals to build a new spirit of United by regaining the trust of our employees and customers – and I’m proud of how far we’ve come. Along with the successful implementation of the plan our team laid out in January 2018, United’s operational and financial performance isn’t just better – it’s better than ever. By instilling a culture of ‘proof not promise,’ we have transformed United even faster than we expected and there’s an incredible sense of excitement about the future.”
So does Kirby, underscoring the importance of customer service:
“I am honored to be named the next CEO of United and to succeed Oscar, whose leadership has been truly transformational for United Airlines. I look forward to working with Oscar, the Board, our established leadership team and every United employee as we drive forward our proven strategy and focus on being the airline customers choose to fly and return to time and again.”
The great question: is this just lip service? Or has Kirby finally seen that great customer service drives profit as well and that in order to offer great service you must be operationally efficient (United has already accomplished that) and offer a competitive onboard product?
It’s interesting that in the video above, Kirby says, “I’m excited to spend even more time out with all of you, listening to you, sharing your enthusiasm for the future.” What does it mean to listen? In one ear and out the other?
Time will tell.
A leopard doesn’t change its spots. At every stop of his career, from HP to US to AA, Scott Kirby has shown his tone deafness to the customer service/employee relations end of the spectrum. Witness things like crowing about a commitment to “quality”, then involuntarily downgrading customers, without warning, who booked/paid for a transcon Premium Plus seat when the new fare class was formally introduced. Or the no-notice MP devaluation. You know Kirby the bean counter had his hands all over both of those issues.
The current tag team approach, with Kirby as the financial wizard and Oscar as the face of the company, seemed to work reasonably well. As a fellow bean counter, I say this with full respect, but we make terrible customer/employee relations people. Kirby without a handler is not going to end well for anybody.
I do think you are correct.
I hope you’re wrong, but sincerely doubt it.
I agree with that (last paragraph) too. Kirby has done very well at United with Oscar watching over him. They complement each other very well. For the short term as “executive chairman” it looks like Oscar will still be around. But going forward United would be advised to make sure Kirby has a #2 with Oscar’s skills and vision to keep the balance right.
How can UA expect the current trajectory to continue by putting a guy in charge who built a career by cutting? And what for? Why now?
If nothing else, Oscar presented the perfect image. Why not leave Kirby put and find another nice guy to set the customer/employee tone?
Heading back to Delta #1 with AA & UA trailing in the glob of “meh” airlines.
It’s just amazing that even in a soft focus video like this, Kirby can only drop statistics. Like, c’mon! You can’t get out of the “99.9%” numbers for a few minutes to talk unquantifiable things like “trust”, “professionalism”, “developing leadership”? Focusing on that is how Oscar got the gushing best-wishes from @FlyingWithSara today, no easy feat.
Kirby: I love the fact that almost every time I get feedback from employees, 99.9% of the time, it is something about “how do we make this airline better for our customers?”
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If they have to ask – and keep asking !!! , Scott, then obviously YOU are not doing anything terrific. All you’re interested in is numbers, statistics, making money. CEO ?….. should be changed to HBC – Head Bean Counter. Just when Oscar was making great strides in employee morale, Kirby is handed the baton and will run with it, one can presume, in the same direction he took America West, USAir and American Airlines (didn’t they hate him at American?) – none of it uphill or positive and with more disgruntled employees than ever. I last flew United about a month ago (domestic coach E-) and felt it could not possibly be cheapened or dumbed down anymore – yet why do I feel that he will do just that. Wow, long gone are the days when companies actually cared about their employees, treated them well and in turn, employees would give great customer service. Attention, anyone that cares at United…..you’ve got another Jeff Smisek on your hands.