Lessons SMEs can learn from KQ

Doing business in Kenya can be likened to swimming in mud; a lot of effort with little to show for it but that is a story for another day. Kenya Airways or as popularly known as KQ has been a headline news for over a year now for all the wrong reasons. I reckon there are vital lessons SMEs can learn from the KQ unraveling story for the betterment of their enterprises.

First things first KQ has demonstrated how not to treat your employees. In every occasion KQ was experiencing financial turbulence, employees have always been the first victim to be chopping blocks. While cost management targeting staff is justified, the manner it panned out at KQ with all the court theatrics, press release from either side left a lot to be desired. In my opinion corporate restructuring should be all inclusive ensuring that all stakeholders are involved at every stage.

It’s evident that the choice of business partner is critical and should not be taken lightly. All business partnerships must be mutually beneficial to all parties. It is well documented that the Partnership between KLM and KQ is heavily skewed towards KLM with KQ having nothing to show for it. To make matters worse KQ is legally committed honor obligations which are counterproductive to its growth and success.

A business needs to focus on Shareholder Value rather than accounting profit. By focusing on shareholder value a business strives to pay dividend or causing company share prices to rise this is in stark contrast to profitability which has a lot of limitation and is subject to manipulation by management. You can recall the HACO TIGER scandal where management manipulated financial statement to project good performance and were paid hefty bonuses. With that in kind Project Mawingu would not have taken flight and KQ would not be where they are.

Finally NEVER take your loyal Customers for granted. For years on, KQ has had an increasing number of customer complaints from lost bags, flight delays, and arbitrary change in fares etc which have not been addressed by the airline sufficiently. The brand has taken a major hit which has given other airlines such as RwandAir, Ethiopian Air among others the audacity to advertise in Kenya. As you go through Mombasa Road you will notice such advertisement; who are they targeting you may ask. Only you know the answer. History has continuously proved that there is no too bigger company to fall and there is too small a company to succeed the choice is yours.