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United Continental Holdings

 

Gold Stevie Award Winner 2012, Click to Enter The 2013 American Business Awards

Company: United Continental Holdings, Chicago, IL
Company Description: United is the world’s leading airline and is focused on being the airline customers want to fly, with the World’s most comprehensive global route network, including world-class international gateways to Asia and Australia, Europe, Latin America, Africa and the Middle East with non-stop or one-stop service from virtually anywhere in the United States
Nomination Category: Management Categories
Nomination Sub Category: Executive of the Year - Transportation

Nomination Title: Jeff Smisek, President & CEO

Tell the story about what this nominee achieved since January 1 2011 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

Slightly more than a year into the merger of United and Continental airlines, Jeff Smisek’s focus is on integrating two behemoths with complementary businesses but radically different corporate cultures.

"Ultimately, we've got to merge the two cultures," Smisek said. "I think that will lead to the result we want, which is a profitable enterprise where our co-workers want to work here, our customers want to fly us and our investors want to invest in us. That's the goal. We can do that, but it's a long process bringing two companies together."

Smiseks’s Management Style:

Be Direct

• "Working for someone like that is terrific," CFP Zane Rowe said. "You always know where you stand. You always know what he's thinking." One of our mantras is 'open, honest, direct communication,' and he really personifies that."

Belief and Pride Are Keys to Culture & Motivation

• Jet fuel prices, government regulation, intense competition and a host of other hard-core business factors are important to airlines, but Smisek talks most about culture.
• "I talk about culture because culture is how you end up with a sustainably profitable company."
• He aims to change an atmosphere that has led to internal backbiting, rudeness to customers, apathy and distrust of management.

Focus on What’s Important – Pragmatic Planning

• We've broken the IT down. We are not only understanding all the interdependencies and prioritizing the integration, but also not picking an industry-leading third-party system, because of the migration risk. What we're typically doing is picking one airline's system or the other and migrating that. We'll have plenty of time to go to the cutting-edge system later. I just want to make sure above all that we land safely

Use Email to Deliver Personal Reach

• Jim Compton, chief revenue officer said he often sends emails to the team he manages and copies Smisek, typically a mere courtesy to keep the boss in the loop on routine goings-on. But many are struck by how often Smisek will reply with a comment, Compton said.

Results:

“Our first full year as a merged airline was a year on many successes for the new United.

• We received our single operating certificate,
• made good progress with our labor groups,
• delivered record passenger revenue,
• exceeded our goal of achieving 25% of our merger synergies for the year and
• generated returns in excess of our cost of capital.”

“My co-workers worked together all year to run a clean, safe and reliable airline, while integrating our two subsidiaries. All their hard work paid off as we accrued $265 million of profit sharing for 2011”

Going Forward

“There is no doubt that 2011 was a challenging year for the U.S. and global economies.. While we made significant progress integrating the operations of our two subsidiaries in 2011, 2012 is the year that we will become one airline for our customers. We will have one brand, one website, one loyalty program and one name”

Upload a collection of supporting files and web addresses to our server to provide more background information to the judges. You may upload any number of attachments and URLs through the "Add Attachments, Videos, or Links to This Entry" link above.

http://www.businesstravelnews.com/Business-Travel/Interview--United-CEO-Jeff-Smisek/?ida=Airlines&a=mgmt
http://articles.chicagotribune.com/2011-10-31/business/ct-biz-1031-executive-profile-smisek-20111031_1_diana-strassmann-jeff-smisek-continental-airlines/3
http://upgrd.com/matthew/jeff-smisek-hints-at-major-changes-for-united.html
http://marketingworldblog.com/2011/06/28/leadership-tips-from-united-ceo-jeff-smisek/
http://seekingalpha.com/article/322475-united-continental-holdings-ceo-discusses-q4-2011-results-earnings-call-transcript
http://money.cnn.com/2011/04/19/news/companies/jeff_smisek_united_continental.fortune/index.htm
http://investing.businessweek.com/research/stocks/people/person.asp?personId=173806&ticker=UAL:US&previousCapId=168569&previousTitle=AMR%20CORP

Provide a brief (up to 100 words) biography about the nominee:

Mr. Jeffery A. Smisek, Jeff, has been the President and Chief Executive Officer of United Continental Holdings, Inc. and United Air Lines Inc. since October 2010. Mr. Smisek served as the Chief Executive Officer and Chairman of Continental Airlines, Inc. since January 1, 2010. Mr. Smisek served as President of Continental Airlines Inc., the holding company of ExpressJet Holdings Inc. since December 30, 2004. Mr. Smisek graduated from Princeton University, A.B. summa cum laude in Economics, in 1976, and Harvard Law School, J.D. magna cum laude in 1982.