Can you really out-source your core competence?

I sat through an executive development program last Friday and a comment from my colleague sunk in deeply. “When you are number One, you need to turn away from your competitors and focus on your customers who put you there.” As I reflected on my travel ordeal, I thought that was the perfect example (not a good one) of an airline that was so caught up with cost cutting to stay ahead that they completely neglected their core competence - service excellence.

                My journey started with a delayed Singapore Airlines flight due to technical error in Shanghai. On two occasions during the delay, I informed the cabin crew that I have a connection to catch to Zurich and was responded with, “our ground staff is aware and they will make alternative arrangement for you.” Finally, we were asked to leave the plane and were given dining vouchers, and asked to return about 2 hours later. All other enquiries were directed to the counter. For an A380 with almost the entire upper deck of business class, one would expect more ground staff on standby to handle our issues. There was only one Station Manager who decided to personally run into the plane and retrieve the luggage of the first passenger. The rest of us were left to wait. Four other employees from the ground handling agent were present but repeatedly told us they could not do anything except to look for the Station Manager. When you fail to empower your partner to meet the same level of service delivery, then perhaps it’s time to question the partnership and your strategy. For the customer, I am dealing with Singapore Airlines.

                Finally, when it came to my turn with the Station Manager, I was bluntly offered to either wait or switch to the next flight. Upon my explanation, I was told there are no other solutions except to go to Singapore. “The ground staff in Singapore will help you to make alternative arrangement.” There was no effort to even check on the system for alternative flights directly to Zurich until I prompted them on their partner airlines whom I know have flights departing to Europe the next morning. In a crisis, how hard you try to help your customer and the empathy in your response are what matter most.

                Thirty minutes later, three other Singapore Airlines uniformed employees showed up. Neither of them come up to the counter to help or actively approached passengers in the queue. I thought they were just there because one of the passengers called the airline to complain that there was no Singapore Airlines staff onsite to provide assistance. If you do not have the courage to face your customers during a crisis, it’s time to re-think your career choice because the service industry is not a bed of roses. I approached a gentleman in Singapore Airlines uniform and explained that I need to be back in Zurich by Sunday night. His response was most Europe bound flights are at night. I prompted him on some of the afternoon flights to Europe and he said he would check which he didn’t.

                Finally, I asked to be put on the next flight to Singapore and was assured that the ground staff in Singapore will be informed. I arrived twenty minutes before my next departure and ran out to the gate but my name was not listed on the signboard. I explained my situation and the answer, “we did not receive any information.” It dawned upon me at that moment, PPS or Business Class, whatever. I am just a statistic. Every exchange is a transaction and their objective is to get me out of their territory, into the hands of the “ground staff in the next airport.” A global company is defined by how well your employees worldwide communicate with each other to provide a seamless experience to your customers. I was asked to run to the next flight which (luckily) got delayed by twenty minutes, hence, I will make it, even though, it’s in another terminal. I asked firmly if my luggage would make it as well and she replied, “yes, we have enough time”. I told them how badly handled it was, before running away.

                Perhaps due to my comment,ten seconds into my run, the lady at the gate caught up with me in a buggy, signaling me to hop on. She called the gate and found out that my seat was actually cancelled. How could they cancel my seat without thinking of any alternative arrangement? Finally, I got to the gate and as the flight was not full, they were able to arrange a seat but my luggage will not arrive in time. I asked about the delivery of my luggage to my home in Basel, which is about an hour away from Zurich airport and again, not surprising, “we are not sure but you can contact the ground staff in Zurich airport.” I looked around and did not see any Singapore Airlines staff. The handling agent could not contact anyone from the airline and put me on the phone with his supervisor who of course, gave me the same answer.

                Finally, I am home, keeping my fingers crossed that my luggage will arrive. The handling agent in Zurich airport made the necessary documentation, but not before sending me back and fro between the luggage service counter and the belt. A Singapore Airlines employee did show up at the belt eventually with a note in his hand, the only indication I have throughout this entire ordeal that people are communicating. By then, the damage is done.

                I would attribute my experience to the pressure faced by Singapore Airline to remain profitable and stay ahead of the competition. During the process, they out-source so much of their interaction with the customers, even the premium ones. It will be hard to imagine that what once defined them is no longer seen as a core competence of the employees. Perhaps the focus is only on the Solitaire (their top tier) but where do they come from, if not PPS? Or perhaps the money is back in the mass market again, which explains why I kept seeing the advertisements for their premium economy class. For now, the definition of “great” in their slogan remains grey.