Most of the AF guys were aware of the plan so I just saw the author as the former disgruntled manager that he was.
Nonsense. 1St off, the guy was not the digruntled type. He remained throughout, moving up to the position of MD of Human Resources, in Memphis. There he was exposed to the “true culture of FedEx”.
He gave FedEx the highest praise for the culture and operation, at that point. I think he termed it "The real FedEx". The culture in Memphis was quite different than the culture of Harrison,
at that time.
Remember this?
“Watkins management will remain in place, with Chip Watkins serving as president. He will report to Patrick L. Reed, executive vice president and chief operating officer of FedEx Freight, who has responsibility for all U.S. LTL operations.”
I like and respect Pat Reed (a lot) as the closest thing to Sheridan Garrison we had, but...
forcing the Watkins/National operation side to run on the same model as AF/Freight side was unwise, costly, and NOT that team's brightest hour. Watkins methods (while different) were effective (often superior) in some ways, due to a completely different target market. FedEx failed to integrate the culture, at that time. Also failed in oversight by having National answer to Freight.
Add to that an economic climate that restricted (actually constricted) growth, and you have the recipe for disaster. To their credit, they did come upon the idea to combine National/Economy and Freight/Priority into the same operation. One truck, two service levels was a brainstorm, born from a relative failure,
and an answer to customer demands.
Often great gains come on the heels of great failures. This was one of those times.
Trying to be brief...but you must know that each step of the process described in the book coincides directly with what we
actually saw on the street. Customers did say they wanted a cheaper long haul option. The purchase gave them that option, but we bungled it much to their dismay. It was too confusing for the customer. Freight, National, Express freight, etc. When we showed up from Freight, we often picked it up, even if it was for National.. 1st, because we were told (by management) that we “could”. 2nd, because during that same time period numbers were being force fed (Yes, FORCE FED), to the point that, if you took the time to go to that customer, you really needed to leave with something to show for your time. Customers were happy, UNTIL they got the bill...
This was certainly a product of the economy of the time, but also a product of the leadership goal of the time. Freight, run by AF people, wanted numbers first,
culture be damned. AF people (who I respect fully) killed National/Watkins, for their own benefit. That's the cleanest version I can offer, and still be true.
Do we need to recall the Bill Cherry/Bill Logue era?
All of the above has been confirmed with assorted former Watkins management. Yeah, I asked...
There was unlikely any malicious intent. More a matter of survival, in a difficult climate.
Further proof comes after the book ends. Culture declined further, fill in the blanks, Union effort, etc.. Then a turning point. Bill Cherry resigns, Bill Logue retires. Mike Ducker named CEO, in part to integrate and bring back the above mentioned culture, which had been neglected and/or sacrificed.
And in the end, the Priority/Economy service model is highly successful. Not by original design, but through an evolution. Necessity being the mother of invention...
Class dismissed.