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November 17, 2023
Benchmarking: A Pathway to Excellence
January 4, 2024
Insights and Reflections
In this edition of our "Reflections and Insights" series, we delve into the fascinating realm of strategic investment in human capital, as exemplified by Singapore Airlines. Through an insightful analysis by a distinguished professor from Harvard Business School, we uncover the airline's unique approach to enhancing customer satisfaction and competitive advantage. By prioritising investments in its people over conventional hardware upgrades, Singapore Airlines has carved a distinct path in the aviation industry, emphasising the importance of empowering cabin crew and fostering a culture of continuous learning and development. Drawing from these findings and paralleling them with benchmarking perspectives, we explore how this strategic emphasis on human capital highlights the transformative power of visionary concepts in shaping organisational trajectory.
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Estimated reading time: 6 minutes
As one of the airlines consistently receiving awards for outstanding customer service, Singapore Airline stands out as an industry leader, demonstrating a commitment to investing in its people. Consequently, the airline has achieved sustained growth, success in customer satisfaction, and increased reputation.
During an online Masterclass session, Professor Rohit Deshpande, a distinguished marketing professor at Harvard Business School, decoded the vision behind Singapore Airlines’ success in gaining a competitive advantage, improved brand visibility, and building consumer trust and satisfaction.
In Professor Deshpande’s insightful analysis, he elaborates on Singapore Airlines’ distinctive approach to investment. Unlike many airlines that primarily focus on hardware, such as acquiring a diverse fleet of aircraft, updating technology, and installing cutting-edge flight entertainment facilities—common industry practices aimed at operational feasibility—Singapore Airline directs its investments toward a more pivotal area: software. According to Professor Deshpande, this strategic emphasis involves empowering cabin crew, training personnel and staff, and offering a unique learning and development experience. This deliberate investment in human capital not only enhances brand reputation and visibility but also contributes to heightened consumer satisfaction, ultimately resulting in a substantial competitive advantage.
In a 2015 publication titled ‘Realigning Training and Development Research to Contribute to the Psychology of Competitive Advantage‘ by Cambridge University Press (originally published in 2012) Raymond A. Noe and Michael J. Tews astutely state that “the development of human capital through training and development may be one of the most important means for an organisation to gain a competitive advantage” (p. 101).
Building upon the discussion, the practice of investing in human capital, as elucidated by Professor Deshpande in his analysis of Singapore Airline, aligns with the benchmarking perspective presented by Olian et al. (1998). According to the authors a select group of exemplary organisations utilises training and development as a strategic tool to maintain a competitive advantage through ongoing learning initiatives. In a benchmarking study, these organisations were identified as “best-in-class” leaders in management-level training and development, reinforcing the notion that such investments in human capital, often referred to metaphorically as “software” by leaders like those at Singapore Airline, are not merely unique to the airlines but represent a benchmarking practice adopted by forward-thinking entities aiming to sustain a competitive edge.
As Victor Hugo once said, “Nothing else in the world…not all the armies…is so powerful as an idea whose time has come.” This insightful observation prompts us to consider a fundamental question: What limits companies and organisations from embracing transformative ideas, such as strategic investments in human capital, that can genuinely empower their entire brand? In a world where the sky is the limit, it becomes essential to examine the obstacles that keep entities from embracing visionary concepts capable of revolutionising their trajectory and fostering the holistic empowerment of both their workforce and brand.
Sources:
Deshpande, R. (2021). Building a Customer-Centric Organization [Video]. Harvard Business School-Bombay Management Association. https://www.youtube.com/watch?v=H34LPSyDsKM
Gong, T., & Wang, C.-Y. (2021). The effects of a psychological brand contract breach on customers’ dysfunctional behavior toward a brand. Journal of Service Theory and Practice, 31(4), 607-637. https://doi.org/10.1108/JSTP-09-2020-0217
Olian, J. D., Durham, C. C., Kristoff, A. L., Brown, K. G., Pierce, R. M., & Kunder, L. (1998, March). Designing management training and development for competitive advantage: lessons from the best. Human Resource Planning, 21(1). https://go.gale.com/ps/i.do?p=AONE&u=googlescholar&id=GALE|A20872994&v=2.1&it=r&sid=googleScholar&asid=9855461b
Noe, R. A., & Tews, M. J. (2012). Realigning Training and Development Research to Contribute to the Psychology of Competitive Advantage. Industrial and Organizational Psychology, 5(1), 101–104. doi:10.1111/j.1754-9434.2011.01412.x
