Moments of Truth

Moments of Truth

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Carlzon, Jan Ballinger Publishing Company, 1989 Audio summary available
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IN THIS SUMMARY

Moments of Truth tells the story of the fantastic turnaround of Scandinavian Airlines under the leadership of CEO Jan Carlzon. Carlzon took the helm of SAS following a two-year period during which the company, once a world leader, suffered $30 million in losses. Within two years, under Carlzon’s leadership, SAS was voted “Airline of the Year” by Air Transport World. How he did it is the focus of Moments of Truth. The “moment of truth” occurs in those 15-second encounters between a customer and the employee on the front line. In the airline industry, the moment of truth is when a passenger first checks in for a flight. The role of middle managers under the old system was purely administrative. Under a “customer-centered” organization, middle managers become leaders and facilitators to the frontline people who actually serve the customer. Carlzon’s method was to get rid of the horizontal barriers to communication and allow for more direct responsibility of the people who interact with customers daily.