Suicide risk

France Telecom has experienced 24 suicides in the last 18 months amongst its 100,000 employees. Several of the employees have left notes blaming the company's culture change since it was privatised for their action.

The French put great store by solidarity with their fellow workers, far more so than in the UK. Yet the suicide rate was 17.6 per 100,000 people in France in 2005 (the latest date WHO data available on wikipedia) against the UK rate of 6.8 for a similarly sized population. In real lives this is a difference of over 6000 a year.

I do not have a simple answer for this difference.

Bulk of the passengers

There has been a great deal of comment recently about the Ryanair proposal, following a poll of their passengers,to charge very fat people extra for flying if they overlap their seat Unfortunately this is not turning into the public relations disaster they deserve for pandering to their passengers' prejudice. They are getting publicity and not many are criticising them.

However their ploy is doubly cynical because not only are fat people an easy target, but also, as was explained on the BBC this morning, there is a perfectly well known example of how to manage this risk sensitively. South West Airlines in the US indicate that if you think you might not fit into a seat then you should consider buying the one next to you. In the event of the plane not being full then South West refund the cost of the extra ticket.

South West's approach is ethical and compassionate and a good example of thinking about the risks from the point of view of not just the majority but also of those unfortunate not to fit the seat space. They exhibit far better risk management than Ryanair.

Winning isn't everything

When a culture becomes too concerned with winning it can do some self destructive things and the damage is most often done by the middle managers or indiscipline amongst the staff.

Here are two examples from the last two weeks:-

* Maclaren Mercedes team telling lies to get an extra point in Formula 1.

* The Labour party apparatchiks cooking up a scheme to smear Conservative politicians in order to weaken their opponents.

The people who set the cultural tone, Ron Dennis at Maclaren for all those years and Gordon Brown, may claim that it was nothing to do with them - but they do not convince.

Accidents and Options

Imagine you are the owner of a company and you have an important guest on your premises. Naturally you supervise all the arrangements to ensure that everything is managed well and any risks to your guest are controlled with great care.

However, despite all your best efforts and those of your staff a terrible accident befalls the guest. You then discover that one of your staff was not fit for duty and his errors and your decisions have contributed to the accident.

Do you

1.accept that the fault lies with the decisions made by you and the culture of the company which you have set up and recognise that the guest's family may believe you culpably negligent and the authorites think that there is a corporate manslaughter case to answer with a very clear guiding mind( you) identified?

or
2. claim it was someone else's fault and cover up any traces of the unsuitability of your staff for having care of the guest?

If you chose 1. you run the risk of being prosecuted and sent to gaol , paying out huge damages and possibly losing your licence to run the business if it is one where the general public are involved.

If you chose 2. you should vigorously pursue other parties as being the cause of the accident and you may, even though your claims might be conclusively proved to be false, get away with deflecting the criticism of your organisation and your decisions

The authorities should make sure that 2 is not an option, at present it seems it is.

The Bottom Line at BA

Some are born in crisis, some achieve crisis and some have crisis thrust upon them.

Churchill was born in crisis when he took over as Prime Minister in 1940. Many chief executives are thrust into crisis through a disaster, think of those trying to carry on after 9/11 . Then there are those who through their own management style, or the culture of the company manage to achieve crisis because they do not pay enough attention.

Willie Walsh the CEO at BA has achieved crisis for his company. The opening of Terminal 5 was a well heralded event. The issues that had to be addressed were well understood and yet not enough attention was paid to them, because not only has a lot of baggage been lost and passengers severely inconvenienced but flights are having to be cancelled on a daily basis. It has been humiliating for the staff, the company and the wider community.

Walsh is a numbers' guy, he has not demonstrated any people skills in public that I am aware of and I would guess that his drive to ensure the bottom line is healthy is at the bottom of this mess. More time for training, fewer flights to start with so that the system and staff could be better able to cope, these would have been ruled out, in the fond hope that it will be all right on the night. In business continuity terms BA has been found wanting and their incompetence has affected many others - in future the best decision will be not to fly BA for if you do it could impact your business badly.

Will BA shareholders demand Walsh resigns because of the damage done to reputation and therefore the money earning capacity of the company? Probably not, they won't make the connection between reputation and share price and the culture that brought about the Terminal 5 fiasco, but they should.