Introduction
As the new Controller of TransGlobal Airlines’ division, I have been asked to provide insight and analyze the company’s performance to consider acquiring two smaller Caribbean businesses. This memo summarizes my findings and recommendations for a timely and strategic performance evaluation. Furthermore, the memo will cover SMART goals, specific, measurable, achievable, relevant, and time-bound objectives used to assess an organization’s success.
SMART Goals
Financial
By increasing operating income by 10% year over year by September 2023, we aim to significantly improve TransGlobal Airlines’ financial performance. This goal is specific because it specifies a concrete number to reach. Due to the quantitative tracking of financial performance, it is quantifiable. The company’s recent two fiscal years saw double-digit percent growth, so the objective is reachable. It is pertinent because achieving this objective will directly increase the airline’s profitability. It is also time-bound because a deadline of September 2023 is specified.
Internal Process
We aim to increase organizational efficiency by 15% by December 2023 by optimizing operational processes. This goal is noteworthy because it refers to a desired level of operational effectiveness. It is quantifiable because it considers every process that needs to be improved, from fleet maintenance to operating budgeting.
In contrast to radical changes, incremental improvement is the desired result, making it attainable. It is significant because a 15% increase in productivity can significantly impact TransGlobal Airlines’ ability to succeed (Bertelli Fogaça et al., 2022). It is also time-bound, stating that improvements must be completed by December 2023.
Customer
We aim to enhance customer loyalty by increasing the number of return customers by 10% by December 2023. This objective stands out because it emphasizes how crucial it is to boost the proportion of repeat customers. It is quantifiable because it can be tracked regularly. TransGlobal Airlines had an 80% return rate before the COVID-19 pandemic, indicating it is feasible (Small, 2022). It is relevant because any company that wishes to succeed must increase customer loyalty. Finally, there is a time limit because a 10% increase is desired by December 2023.
Learning and Development
By completing the fundamental FAA Safety Assurance System (SAS) training for each team member by August 2023, we aim to improve safety for both passengers and crew. This objective is particular because it establishes the team’s objectives for FAA SAS training.
It is quantifiable because training progress can be monitored, and safety assessments can be conducted before and after training. It is feasible because the course can be completed online and only takes two hours. It is pertinent because an airline company places the highest priority on safety. It is also time-bound because the objective is to complete it by August 2023.
KPIs
I advise using the Operating Margin as the KPI for the financial goal. This metric will provide insight into the company’s operations and show whether expenses and revenues are balanced (Cullinane et al., 2023). I advise using the fleet’s total number of aircraft as the KPI for the internal process goal.
Monitoring the fleet size can provide insight into how efficiently the business uses its resources and operating systems. I have selected the retention rate as the KPI for the customer goal. This metric will enable us to assess how effectively we enhance customer loyalty. I advise using Airlines.com’s safety rating as the KPI for the learning and development goal.
Conclusion
The leadership team at TransGlobal Airlines will be able to critically evaluate the organization’s performance with the aid of the outlined smart goals and KPIs. TransGlobal Airlines can assess its progress and examine each performance component to determine areas in which it needs to devote more attention by using the strategic goals and indicators to measure success. These factors will enable them to assess whether purchasing the two smaller Caribbean airlines will result in any organizational advantages and aid in achieving their TransGlobal 2030 objectives.
References
Bertelli Fogaça, L., Henriqson, E., Carim Junior, G., & Lando, F. (2022). Airline disruption management: A naturalistic decision-making perspective in an operational control center. Journal of Cognitive Engineering and Decision Making, 16(1), 3–28. Web.
Cullinane, K., Haralambides, H., & Notteboom, T. (2023). Weathering the Covid-19 Pandemic Towards the “New Normal”: Potential Longer-Term Impacts on Port and Shipping Governance, Performance, and Infrastructure Geopolitics. Social Science Research Network. Web.
Small, J. (2022). The passenger experience of air travel: A critical approach. In Google Books. Channel view publications. Web.