From cars to planes: Henry Ford & Michael O’Leary

1. From cars to planes: Henry Ford & Michael O’Leary How these two relate? One century apart Completely different industries A completely different world The key to success? Productivity / efficiency Low costs / fares Things clear from the outset (a “vision”) Get to the masses Service, service, service (and profits?)

2. From cars to planes: Henry Ford & Michael O’Leary Let’s take the two experiences at a time Ford Motor Company (1903) A vision A new industry First to introduced methods of large scale production

3. From cars to planes: Henry Ford & Michael O’Leary What is the idea? To perform a service In his case, to sell cars for as cheap a price as possible There is always a price Every time a price is lowered a new stratum of buying power is reached Best price: to sell at the highest price?

4. From cars to planes: Henry Ford & Michael O’Leary “Our policy is to reduce the price, extend the operations, and improve the article. You will notice that the reduction of price comes first.” Try to “make the price” High wages contribute to lowering costs! “No idea how high wages will go, nor how low prices will go” A man with a machine is better than a man without it

5. From cars to planes: Henry Ford & Michael O’Leary In fear of the machines Changes are gradual New places open, and for more men Standardization Short v. long term profits / market share To make something that will last forever (loyal customer) Overproduction? (saturation)

6. From cars to planes: Henry Ford & Michael O’Leary Ryanair (1985) A vision Stagnant industry High-fare airlines Protection by EU First to offer really low fares for destinations all around EU

7. From cars to planes: Henry Ford & Michael O’Leary Innovative practices “A no-frills airline” Average fare of 50 Euros for 1:15 hour flight across EU Cheaper than 20 years ago and than other airlines today 75 million passengers in 2011 (almost double than the 2nd) 47 bases, 160 airports, 27 countries, 15,000 daily departures

8. From cars to planes: Henry Ford & Michael O’Leary Claim to have 93% on-time flights No strikes Employees come from other sectors (a plus?) - Innovation! On-line booking and check-in Increase of free carry-on allowance

9. From cars to planes: Henry Ford & Michael O’Leary Waiting time reduced “No fuel surcharges” Funny and provocative advertising Charity / CSR? What are the differences / similitudes between these two successful experiences?

10. From cars to planes: Henry Ford & Michael O’Leary Differences: Internet / Technology Regulation (overregulation) Sectors Manufacturing and services Productivity of workers Management savvy Supporting industries Labor turnover Wages (?)

11. From cars to planes: Henry Ford & Michael O’Leary Similitudes: A vision Division of labor, efficiency, productivity Low costs Step-by-step strategy Get to the people Service (+ loyalty) Austerity Advertisement Crises

12. From cars to planes: Henry Ford & Michael O’Leary Conclusion: Have a plan Work hard Insist, try, make mistakes, and stand up back again Get yourself (and what you do) known Empathy Service