Roads to Resilience

succeed by continually offering a truly differentiated product and superior bespoke service – on the ground and in the air; in other words, the company cannot afford to be perceived as similar to other airlines. Virgin Atlantic has to stay ahead of the competition by being “ red where others do beige ” 2 , to get people talking and inspire customers to travel with them. “ Based on all the research that we have done, Virgin as a brand really stands out. But we do have to differentiate on product and service. This means that we have to invest in that area but we also need to make money to sustain being a business. It is always a trade-off between delivering what is right for the customer, such that you maintain your attractiveness and market position and delivering it cost efficiently. A lot of that comes down to the people that we employ, because they are always searching for new ways to do things differently and more effectively. I guess we will say Virgin does punch above its weight in the commercial arena, but equally the advocacy of our people in actually doing the job and excelling in the job is a component of that. ” (Chief Operating Officer). This pioneering, customer-oriented mindset is at the core of Virgin Atlantic’s resilience. As Sir Richard Branson states on Virgin’s website, “ This is a company that simply would not exist without the energy, the determination, the wit and the wisdom of our people. ” 3 The essence or brand proposition of Virgin Atlantic is to “ fly in the face of ordinary. ” 4 Given the difficult challenges of operating profitably in the airline industry, delivering on this proposition requires people in all areas of the business that have ‘innovation’, ‘caring for others’, and ‘peace of mind’ as their core values. Virgin Atlantic takes this very seriously and expects job applicants not only to meet the functional requirements of the job, but also to demonstrate they already live by these values. To ensure people understand and live the Virgin Atlantic brand in the same way, everyone joining the company, from early career starters to new board members, goes through a two-day ‘Virgin Induction Programme’ (VIP). During this programme, “ We talk about our brand, our values, the history of Virgin Atlantic, where it comes from, where the business is today and where it is going ” (Chief Operating Officer). Following this introduction, senior managers take people through each of Virgin’s values in more detail. The purpose of these sessions is to help people understand what the values mean on a personal level, but also how their roles relate to those of others throughout the business, and the impact their actions could have on operational performance and the company’s reputation. ‘Peace of mind’ is central to these sessions: “ The brand very much has peace of mind as its core value. That is what we will give you all of the time – we will give you peace of mind. It is what our organisation is contracting with our passengers and with our staff. We will run a safe and secure operation so that as a passenger you can be confident that you are going to depart on time, get to your destination, with your baggage, enjoy the flight, and leave with good memories. For employees, it means that the company is financially stable, that you don’t need to worry about being able to pay the mortgage and provide for People and culture

2 Virgin Atlantic brand story (internal document) 3 See: http://careersuk.virgin-atlantic.com/life-at-virgin-atlantic/a-word-from-richard.html 4 See: http://www.virgin-atlantic.com/gb/en/the-virgin-experience/fitfoo.html

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Appendix A Case study: Virgin Atlantic