Air New Zealand: Leading Transformation in a Disruptive Environment

This report examines the transformation of Air New Zealand (ANZ) into a learning organization in an age of disruption. It details ANZ's evolution, from its origins as TEAL to its current status as a leading airline, highlighting its adaptation to digital technologies and customer-centric strategies. The report explores the importance of cultural shifts, digital innovation, and the appointment of a Chief Digital Officer (CDO) in driving success. It analyzes the reasons behind the transformations, focusing on customer expectations, the need for a strong omni-channel strategy, and operational excellence. Furthermore, the report emphasizes the significance of agile leadership, ethical considerations, and a strong leadership framework in managing organizational change. The report concludes by highlighting the crucial role of leadership and ethical practices in navigating challenges and ensuring the success of learning organizations. The report also covers the importance of ethical considerations, such as the use of biodegradable products and the alignment of business practices with ethical standards.

Running Head: LEARNING ORGANIZATION 0
Leading in an age of
disruption
Student’s details

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Introduction
The following report highlights the efforts made by Air New Zealand as an organization
in an age of disruption and the reasons, which lead to such transformations. The company made
strong efforts to maintain its consistency of providing quality services to the customers. In the
developing and digitalizing world, the company has focused on developing the technological and
digital techniques. The report will initially provide brief information about the organization, and
its evolution and development with time. Moving further, the report will focus on explaining the
process in which the organization has transformed into a learning organization. Lastly, the report
will describe the importance of proper leadership framework while transforming phase of an
organization.
About Air New Zealand
The Air New Zealand (ANZ) limited is considered as the flag carrier organization of New
Zealand. Presently, the organization provides flights for 31 international destinations in around
19 nations; it also holds active services for 20 domestic destinations. The organization has
originated in 1940 as TEAL i.e. Tasman Empire Airways Limited and operated only within
Tasman and Australia. Later Government of New Zealand owned the organization, upon which it
was name as Air New Zealand. The organization merged itself with a private NZ National
Airways Corporation (NAC) in 1978 (Airnewzealand, 2019). It turned into a private organization
in 1989 the idea of privatization failed badly and returned back to the government ownership in
2001.
In today’s era, it is essential for every business organization whether small or large has
to function in accordance to the transforming world. Thus, it is observed that ANZ has also
developed itself by introducing digital processors and improvising the technological conditions
of the technology used in the organization (Salcedo-Sanz & Deo, 2016). When ANZ was started,
it had basic technology and simple techniques to deal with the customers and technical issues.
With changing time, the organization has introduced several new features, which have helped in
dealing with the problems arising in the age of disruption.

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Importance of bringing transformation
The Air New Zealand has turned over in last one decade. It is an organization, which has
faced severe failures and still has managed to come back into the race of competition. The
problems diagnosed were issues in the management process of the staff, errors in construction of
the contracts with associations working with the organization and most importantly the
technological backwardness of the organization (Oster & Strong, 2017). Thus, the organization
focused on learning new concepts, which resulted fruitful for engaging the old clients, and
attracting new clients as well.
The Air New Zealand has majorly worked upon two things, the company firstly, focused
on cultural shift to become a company which is sincerely client centric condensed by their
slogan: “we y people”. Secondly, the airlines have enhanced the use of digital technology and
analytics, which is one of the strongest reasons behind the success of the company. In order to
deal effectively with every problem and develop strategies to gain success the organization
changed its orientation (Oster & Strong, 2017). In the year 2016, airlines appointed Digital
Officer (CDO) and distributed the duties with CIO. The ANZ appointed the former Google
executive ‘Avi Golan’ as CDO, his years of experience and crucial strategies helped in gaining
the revenue of the Airline service (Lyon & Francis, 2016).
Airlines are always considered as the learning organization as they always make changes
in accordance with the feedbacks drawn by the clients. Thus, by keeping the customer experience
in mind some of the changes, which were made in the organization, are as follows.
The organization firstly digitalized the booking system; the customers were now not
required to wait for long period to get confirmation for tickets. The tickets for both the domestic
and international flights can be booked online. This reduced the burden from the shoulders of
customer and management as well. The airlines introduced strong security system to reduce the
risk of terrorism, smuggling and various other criminal acts (Kan, Chung, & Chung, 2019).
Along with this, a strong baggage checking system is installed on the airports. The advent of
digital technology enhances the customer innovation. The airlines has also introduced air band
for the unaccompanied minors. These steps were taken to transform the ANZ into a learning
organization.

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Reasons behind bringing transformations
Reasons for such transformation in the airline industry can be firstly customer centric and
secondly business centric. The airlines if brings transformation it will provide the customer
personalized and customized services, will increase ancillary sales, will be helpful in addressing
customer lifetime value, will help in improved customer support, and reduce the chances of
crisis and disruption (Kan, Chung, & Chung, 2019).
If coming to the business end there are various business-facing paybacks of airline
digital transformation for instance integrating with partners, insightful business analytics,
protecting brand value, the path towards growing innovation, it helps in protection from the
disruptive forces existing at the market place. Along with these reason there are 3 major reasons
which are important makes the idea of bringing innovation in the airlines industry essential.
 Higher Customer Expectations- Technology can be both boon and a bane for the
industries. On one hand, it enhances the quality of work but on the other the expectations
of the customer’s increases with the increasing technology (Kaynak & Kucukemiroglu,
2015).
 Demand of Strong Omni channel Strategy- Airlines is simplest one part of the entire
journey ecosystem. Airlines want to attain their clients at the floor in addition to within
the air. Therefore, airlines have to tailor their business to the client’s journey choices with
a purpose to discover a way to attract human beings for reasons aside from the agenda
(Tsui, et al., 2019).
 Ensuring Operational Excellence- Airlines need to run excessive-performing operations
so that you can enhance consumer experience. Adapting advanced technology can only
ensure such operational excellence via closer collaboration among all units, flight making
plans, crew scheduling, ground operations, technical operations, and customer service
(Efthymiou, et al., 2016).
Importance of agile leadership and ethics in transformation
In order to bring effective changes an organization is requires an unbeatable framework
and guidance of a leader who can effectively manage the implementation of the plans, which are
built for bringing development and transformation in the organization. In addition, to be agile

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shows transformation with the change in collaboration, roles, mind-set, values, mind-set and
behavior. It helps in providing capabilities of amplified learning, operational excellence and to
disrupt, discover and deliver in the company. It requires transformation consisting orientation,
transition and agile evolution. Leadership is influenced by the leader, situation, subordinates and
other possible factors involving improvement and development showing empathy, emotional
mastery, lack of blame, and humility. Also includes accountability, self-confidence, and courage
with qualities of awareness, decisiveness, focus and optimism as well. In the company, agile
environment by the leaders consists of change readiness, iterative development and testing of
products, people vs. process, important product features first, facilitating vs. controlling
management style, simplicity, and leadership and collaboration (Nee, 2013). Leader main focus
is to remove challenges and obstacles to their groups in the company rarely following the
schedule. In the company with agile environment, members of the group have the accountability
and ownership for removing barriers and hurdle in working with the requirement of inter-
personal skills. If any analysis is performed over the progress made by Air New Zealand, it can
be observed that the ANZ has made remarkable efforts in bringing the change, which have
helped the organization in gaining achievements ( Smet, Lurie, & St. Georg, 2018). The
organizations which are going through the learning/transformation phase should firstly appoint a
leader who is experienced enough to give directions to the workforce to work. All these
directions should be made in accordance to the work ethics. While bringing transformation and
reforms an organization should try to maintain balance with the ethics (Morrison, Hutcheson,
Nilsen, & Fadden, 2019). For instance, if an organization follows ethical ways the company
leaves behind a positive impact over the community. Herein, the ANZ has introduced the usage
of biodegradable products (cutlery offered to the passenger, the cloth out of which the dress of
the staff is stitched is also recyclable), not only this there are numerous other ways in which
ANZ has followed ethics. If an organization do not runs according to the ethics it spoils its
market value, the company is supposed to face numerous legal issues eventually leads to poor
company credibility (McGuire & Palus, 2018). For instance if the airplane used by ANZ are
emitting extremely harmful gases in the air, it is a matter of concern for the airlines to deal with
the issues. Therefore, while making transformation an organization should look forward to the
ethical policies mentioned by the government and the organization itself.

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Conclusion
To conclude, in the company Air New Zealand (ANZ), the transformation to be a
learning organization due to disruption and other reasons shows the challenges faced by leaders
and the new organizational culture. It is crucial to determine and analyze the importance of ethics
and active leadership within the base. The role of leadership and leader is essential for taking
corrective measures and actions while transformation so that they can deal with the challenges
faced by the company.
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