United Overhauls Sales, Distribution Departments

Imagolfer

Advanced
Sep 30, 2002
192
0
United Airlines late last month replaced its worldwide sales strategy and sales operations groups with new sales and distribution departments. The changes, including a general head count reduction, came two years after the airline launched a "strategic sales transformation."


"Consistent with the progressive strategic sales transformation (SST) goal of making this sales team the best it can be, I am today announcing a structure change to the worldwide sales team that will better align our work here at worldwide headquarters (WHQ) in support of the field and our customers," wrote United senior vice president of worldwide sales and alliances Graham Atkinson, in a May 26 memo obtained by The Beat.


The B2B Products & Channels group "has been designed to increase our focus on product management and the analysis/management of the North America and international corporate and travel management company channels," according to Atkinson. David Anderson, currently at TAP Pharmaceuticals, was named managing director of the group. He previously served as a senior manager at ZS Associates, a firm that helped United remake its sales organization in 2004 and 2005. Anderson is the second ZS executive to join United's sales leadership team, following Jeffrey Foland, who became United vice president of North America sales in Feb. 2005.


Those reporting to Anderson include David Leib, director of the "North America Corporate Channel;" Karen Soich, director of the "North America TMC Channel;" and Trevor Gibson, director of the "International SST and Channels."


The Distribution and WHQ Analysis group is charged with "advancing our distribution initiatives and cross-functional projects," and also covers international sales operations, Atkinson wrote. United named Peter Hammer as group director. Both Hammer and Anderson report to Atkinson.


Meanwhile, Atkinson explained that "the North America Sales Operations team will report directly into North America sales, providing a more direct alignment with the field organization." United appointed Patti Chaplinski director of North America Sales Operations, reporting to Foland. The airline also asked Sean Burke to lead United's "North America incentive compensation, goal setting and alignment management programs." Atkinson described those aspects of the department as having "immediate, critical importance to the success of our organization."


With the elimination of his department, former managing director of worldwide sales strategy Scott Brandt is evaluating opportunities inside and outside the company.


"The WHQ organization was created to design and execute the comprehensive SST work-plan and to start us successfully down our path toward sales excellence," Atkinson said. "And the organization has successfully achieved this mission."


Even so, some have criticized United's sales organization, which has undergone several changes in leadership and corporate sales strategies since the beginning of the decade. "They need this," said one travel management consultant, regarding the sales overhaul. "It has been apparent for some time that the sales and account organization had to be upgraded. As airline contracting and negotiating became more complex over the past few years, that organization has not been up to the task."
 
I think some other Departments could use an overhaul as well...Not just the Sales Department!
 
I think some other Departments could use an overhaul as well...Not just the Sales Department!
Ya know, isn't it weird that after 3.5 years since we entered BK and since emerged, they are just now overhauling these departments? These guys always seem to be reactionary instead of visionary. I like to see they are finally addressing all these inefficiencies in our corporation. For every department consolidation, so gets axed another group of middle or senior managers. This is a good thing. Not for employees to get axed, but to have them take on similar previous roles accomplished by yet another manager. They have cut the line eployees to the bone, but have yet to cut deep enough into the management roles. Of course, I am just a line pilot, and perhaps this is a misunderstood assumption by all of us. Any comments by those in the ivory towers? My guess is that if oil was in the 50s per barrel, they would all be patting themselves on the back saying "great job" and none of this new fat cutting would ever get done. It is about time they are making some changes. Finally got around to it. No blood left to squeeze from the line guys anymore.

I have always been a glass half full employee. I show up to work and don't abuse the sick time. While I am at work, I give 100% every day. But I have to tell ya, I am freakin' exhausted these days and becoming more and more discouraged by our operation every day, with little positive change in my mind about the future. This summer will be a disaster operationally in my opinion, as we have too little manpower, and the folks we have working are completely burned out. Frankly, most employees just don't care anymore, because we all realize UAL does not care about any of us. We have zero B757 spares, 1 A320 spare and 2 B737 spares system wide! With no slack in the system, any disruption will cause much chaos and frustration. Look at our stats for last month. Bottom or second from bottom in every category except misshandled baggage where we placed 3rd. And it isn't even summer yet.

Alright, I am done ranting. I know I am preaching to the choir. I haven't posted in a long time, probably because I am always working. Just don't care anymore, actually. Good to see them trying to cut the god dang fat in new places. It is about time. All the best to my fellow employees. Keep what little faith you might have left.
 
As a former UA employee I did something today at my current job I have wanted to do for a long time. I booked some of the company's upcoming travel on UA. I strived to get the entire trip on UA, but the times and flights just didn't work out. I saved the company $300.00 in travel agent fees by doing it myself, but also saved the company another $200 by booking on UA versus a NW/DL. I kindly reminded the deparment manager wanting the travel that NW/DL are in BK and have labor strife.

Please do not make me regret this! I even went out of my way to ensure it was mainline and not express. But in order to ensure it wasn't express, I had to book part of the travel on another carrier because some of the people traveling are over 6'.

Good luck to all the UA employees left, and keep up the great job!
 
Actually, BigRed1, they've overhauled Sales several times in the last several years. They can't seem to make up their mind about how to structure that department.
 
Actually, BigRed1, they've overhauled Sales several times in the last several years. They can't seem to make up their mind about how to structure that department.

If you look at the demand for air travel since 9/11, it has varied wildly. Remember the dark days of spring, 2002? No one wanted to travel, we were in a mini-recession, and the entire industry was feeling the tumult of the next few years. The job of the sales staff at that time was to stimulate demand. We had to compete for every last nickel, and thus needed all the sales support we could get. In the last year or so, demand had gone up as the economy improves, and the supply of seats has continued to whither (along with the disappearance of Indy Air). The role of the sales staff has diminished as a result. I know a few of those fired, including a high-timer (20+ years at UA), and frankly we don't need to offer specialized products to so many customers when system LFs are in the mid-80s.

Frankly, this is a sign that, as the market changes, UA is changing with it. Personally I think this is something that the "old" UA would not have done, at least to this degree.