We’re not perfect but we’re getting it right

We’re not perfect but we’re getting it right

Thomas Cook has come under fire from branchmanagers and staff unhappy with their pay and conditions. Here retailmanaging director MannyFontenla-Novoa responds in an exclusiveinterview with Steve Jones

OVER the past couple of weeks, Travel Weekly has been inundated with letters from Thomas Cook branch managers complaining about the company.

Their grievances have included the scrapping of a company car scheme, ‘unreasonable’ sales targets, threats of disciplinary action and a dictatorial style of management which has left morale in some shops in tatters and staff looking elsewhere for employment.

But retail managing director Manny Fontenla-Novoa has insisted that he and his management team have the support of the vast majority of staff.

MORALE

To gauge the mood of staff on the high street, 50 branch managers are quizzed by an independent company every few months. In the latest study, in July, Fontenla-Novoa said seven out of 10 believed the support they receive from regional sales managers was good, while 80% said they felt comfortable raising issues with them.

“We do not pretend that everything is perfect, yet all the indications are that we are getting it right. We have got real competitive pressures as a business, yet despite all this, we will soon be post-ing our most successful results to date,” said Fontenla-Novoa.

“We also look at what the customers think of us and the results of independent surveys are encouraging. We have improved service levels and increased the gap between ourselves and our competitors. Although this particular survey is not about staff I don’t believe you could achieve these results if staff morale is low.”

However, on the back of the letters to Travel Weekly, Thomas Cook has ordered a comprehensive survey of all 800 branch managers.

“We have to validate the results of our survey. We have to make sure it is representing the general view. And I will make a commitment to share the information with all staff. If there are issues, we will get to the bottom of them and resolve them.”

MANAGERS

Some of the criticisms have been directed at the regional sales managers and their alleged tactic of berating branch bosses in front of staff and threatening them with disciplinary action.

“We would say the results of the survey indicate managers trust their regional sales managers,” said Fontenla-Novoa. “When we merged with Carlson, all the regional sales managers were asked to apply for the new positions in the network. The best people were given the jobs. Our managers are not the sort to stay silent if the regional sales managers are not up to the job.

“One of the letters also concerned staffing levels. Yes, there is turnover but we all suffer from it. The levels are slightly up on last year and I only have seven vacancies at branch manager level out of 800.”

Another manager told how he feared disciplinary action would be taken after displaying a weekend specials poster on the following Tuesday.

Fontenla-Novoa denied action would have been taken but added managers have a duty to adopt a professional approach. “People are going to make mistakes. We accept that and I don’t want to castigate people. But if it’s the second or third time it has happened, you would not be fulfiling your responsibility by ignoring it. Most managers don’t need to be told that.”

And he denied suggestions that managers are not trusted to run their own branches.

“Branch managers have one of the most important jobs in the company and they are totally trusted. But they all have sales targets and they are monitored as we have to recognise and reward good performers.”

EVOLUTION

A little more than 18 months ago, Thomas Cook inherited 397 high-street travel agents when it completed the merger with Carlson Leisure Group.

It was a deal that doubled the size of the network to 800 shops overnight, putting it on a par with Lunn Poly and Going Places. Since then, management have attempted, and are still attempting, to integrate the Thomas Cook and Carlson businesses into one efficient network.

“There is no doubt that change unsettles people and there has been huge change in the organisation,” said Fontenla-Novoa.

“We are currently rolling out a new point-of-sale system across the network which for the former Carlson staff means learning a new system. We are also investing in systems that will give us access to the Internet. It will improve communication but we can’t deny it has caused disruption. But most managers recognise the need for change.”

He said increased competition through alternative distribution channels and through Travel Choice on the high street has meant the business has to be sharper than ever.

And while Thomas Cook is unquestionably the strongest travel brand in the market, Fontenla-Novoa admitted its image is one of conservatism rather than dynamism.

“We are regarded as solid and trustworthy and reliable which is a good image to have but I want to drive the business forward as do the majority of my staff. If you stand still you will not survive.

“I want the business to become more customer focused and to take full advantage of the Thomas Cook brand.”

Thomas Cook’s more professional and business-minded approach has led to the introduction of a new pay and reward scheme for top performing shops – a move which Fontela-Novoa insisted was well received.

Targets are agreed with managers before the start of the year, he said.

COMMUNICATION

To encourage staff feedback, Fontenla-Novoa has introduced a computer-based Talkback facility which is linked to every shop.

“I want staff to use this to flag issues,” he said. “We recently had an issue over the foreign-exchange incentive payments which we are looking into. Staff were also unhappy about concessions they received. Because of the large discounts on the high street, the impact of these concessions was being watered down. Again we are looking at it.”

Clearly, some staff are reluctant to speak out for fear or recriminations. Fontenla-Novoa said he wanted to reassure staff and added they were encouraged to be outspoken at monthly dinners hosted by management around the UK.

“Now more than ever I want feedback,” he said.

Thomas Cook is developing The Net – a group of staff representatives who will discuss group policy and procedures.

DIRECT MOVE

A recent controversial move has seen Thomas Cook redirect customers who phone a high-street branch to its call centre. The move, which is being trialled in Scotland and four shops in England, follows alarming figures which show over one million calls go unanswered each year.

Fontenla-Novoa defended the system but said it could be made more flexible. He added targets may be reduced in shops to take account of the policy.

“We will always improve customer service whenever we can and I make no apologies for that,” he said.

“But this is a pilot scheme and it’s all about learning. We will get feedback from managers to see how it can be improved. There is no way we are going to erode manager’s business and we’ll adjust targets if necessary.

“But you must remember that shops were not answering these calls in the first place so they are not losing business.”

He said managers may be left to decide when to activate the system.

DIRECTIONAL SELLING

Fontenla-Novoa said staff are encouraged to sell JMC products – but stopped short of admitting it had an out and out policy of directional selling.

“The most important requirement is that customers are sold the right holiday. That is imperative particularly at Thomas Cook which has a name for offering choice and expert advice,” he said. “If you sell the wrong holiday you have lost that customer. But we have absolute faith in the JMC product and wherever possible that will be offered first.”

He added that Thomas Cook remains the number one performer for both Thomson and Airtours outside of their in-house retailers Lunn Poly and Going Places.

&#42 See Comment, page 8

On the shop floor: Thomas Cook regularly conducts independent surveys in its shops to get an idea of how good or bad staff morale is

CARLSON SHOP CLOSURES

Fontenla-Novoa said changes had to be made when it acquired the Carlson shops. And in the spring, an exhaustive year-long review into the network resulted in the closure of 30 shops – all but one of them former Carlson outlets.

“We had a shop closure programme which was very tough,” said Fontenla-Novoa. “But I will not shirk tough decisions and will continue to make them when I have to. Closing the shops was the right decision to take.

“It was unfortunate that the shops to close were nearly all former Carlson shops. But whereas Thomas Cook built its network through greenfield sites, Carlson developed mainly through acquisition and some of the sites were not in primary locations. There was also overlap in some towns.”

He stressed the closures were not a reflection on staff and added most were found jobs within the retail network. “This was not a cost-cutting exercise. This was not the message we wanted to send out,” said Fontenla-Novoa. But he added:”We cannot deny that the Internet will take some business from the high street and that is going to put enormous pressure on all agents.”

THE MANNY PLEDGE

If you are unable to resolve issues with your immediate manager then you can contact Manny on 01733 417177.He’s promised he willlisten without anyrecriminations and all calls will be treatedin the strictestconfidence.