In 2011 Iberia's performance in Madrid was poor and lagging its main European competitors:
- Customer experience: the level of customer satisfaction was far below other European network companies.
- Punctuality: very poor punctuality in the hub, some 20 p.p. below the European competition.
- Efficiency: progressive worsening of productivity in recent years, with Times to Scale and MCT higher than the European competition.
Iberia decided to launch the Agora Project to optimise operations at the Madrid hub and reduce the gap with its competitors.
Objectives, goals and purposes
The Agora project involved a comprehensive improvement programme for Iberia's T4 hub at Madrid Barajas airport. This involved five plans to be developed between 2012 and 2015, with estimated impact of 100 million euros. ALG provided support as a business consultancy specialised in air transport as the overall Project Management Office.
ALG supported Iberia in facilitating its operational transition in large transformation processes through more than 220 initiatives in five main programmes to reduce the gap with its competitors:
- Reaching excellent levels in OTP.
- Improving the customer experience, making it simpler and more agile.
- Improving operational efficiency at the hub, reducing connection and turnaround times.
- Transmitting a culture of service excellence among all employees.
- Implementing a change management process.
Study methodology and activities
The project was defined as a transversal plan involving the company’s main organisation, based on three key elements: personnel, organisation and infrastructure.
ALG’s involvement covered the entire project life cycle, through an iterative methodology of three phases that guaranteed continuous improvement and the success of the measures implemented.
Phase 0:
- Identification of improvement points
Phase I:
- Design and Implementation
- Design and conceptualisation
- Deployment
Phase II:
- Communication and KPIs
- Communication strategy
- Monitoring of improvements
Success and outcomes
ALG managed to improve the performance of all Iberia's operational KPIs in Madrid substantially, with tangible results and impact on the company's business variables:
- Substantial improvement in the quality level perceived by customers.
- Record highs for punctuality
- Efficiency: reduction of nearly 100 full-time equivalents (FTEs) and substantial increase in sales efficiency with new MCTs.
ALG’s approach helped Iberia clarify its operating model and identify the way forward to achieve operational excellence.
Recognition from the most prestigious forums in the sector:
Major impact in all mainstream media (main TV channels, press…):
