Arpey's leadership stamped by Crandall

FA Mikey

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Aug 19, 2002
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When Gerard Arpey runs weekly executive committee meetings each Tuesday on the sixth floor of American Airlines Inc.'s Fort Worth headquarters, he channels a little bit of predecessor Robert L. Crandall into the room.

Mr. Arpey stirs up the conversation with pointed questions. He often forces one executive to play "devil's advocate" on another's idea, even if the person doesn't have a lot of expertise in the subject under discussion.

"I do use the Socratic method and get different points of view and challenge the marketing guy to think like the technology guy – I hope you end up making better decisions," said Mr. Arpey, now in his fourth year running the world's largest airline that Mr. Crandall put his stamp on. "That's very much the way Bob ran things."

Tales of long, intense meetings headed by Mr. Crandall, who retired as chairman in May 1998, are an integral part of the carrier's lore.



"Despite his reputation – and there is some misperception out there – Bob was a very participative CEO," Mr. Arpey said in an interview with reporters last month in Tulsa. "Bob always wanted your point of view, and I grew up in that. If you were wrong, or he thought you were wrong or he thought you were an idiot, you were going to hear about that. So you better be able to defend your point of view logically."

Mr. Crandall acknowledged his role in shaping Mr. Arpey's style.

"I had lots and lots of meetings – people made fun of it," he said via e-mail.

"I have always said I like meetings because I can tell – face to face – when someone has the facts and when someone is or is not willing to defend what he or she says."

Mr. Arpey's current executives, many of whom also served under Mr. Crandall, say Mr. Arpey's style may not be as stern as Mr. Crandall's but remains as effective.

"I think there's a lot of Bob in Gerard," said Dan Garton, the carrier's executive vice president for marketing. "But there are some distinct differences in their mannerisms."

Less combative

Mr. Arpey takes a less combative approach than Mr. Crandall did in most cases, Mr. Garton said. He does appreciate "spirited debates" in the Tuesday meetings, and often tells his team to "poke at" or "noodle" items, meaning they need to learn more about topics and report back.

"You can't tell by his tone or tenor of these questions what he thinks the right answer is," said Jeff Brundage, senior vice president of human resources. "He just wants people to be passionate about what they're doing, and when you get a lot of smart, passionate people together in the same room, you can get a productive tension."

A year and a half later, analysts think American is outperforming nearly all its peers in terms of revenue.
Mr. Crandall says Mr. Arpey's future is bright. "He works hard, and is clearly committed to the company's success," he said.

Mr. Arpey said his management style has been shaped by Mr. Crandall and the sum of experience from his nearly 25 years at the company, but remains his own.
 
Ahh, "uncle" BOBBY lives on(sort of) !

I've been BORING you regulars here with this "perspective" for YEARS, but In the end, I always had a "gut feeling" I was correct !!

What say you....former ModerAAtor ??

NH/BB's
 
What say you....former ModerAAtor ??

I say that there are probably a couple hundred managers who could say that their management style was formed by Crandall's influence, including my own.

Having been one of the few people here who had the opportunity to present to both Gerard and Bob, I think the article hits the nail on the head -- same passion for the airline and insistance that people looking at situations from every possible angle, but vastly different approaches in how they convey their passion and how they motivate their direct reports.
 

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