American Airlines CIO on Stepping Down Amid Bankruptcy

In this Q&A, CIO Magazine Hall of Fame member and soon-to-be ex-CIO of American Airlines Monte Ford talks about technology influence, cultivating future leaders and feeling sad.

Thu, December 15, 2011

CIO — New Year's Eve brings Monte Ford a bittersweet resolution.

After 11 years as CIO of American Airlines, Ford plans to step down Dec. 31, as the company reorganizes under Chapter 11 bankruptcy protection. American's CEO, head of operations and head of employee relations are also out. Mobility, analytics and other IT initiatives helped push American consistently ahead of rivals United and Continental in customer satisfaction. But Ford, a CIO Hall of Fame member, says his most lasting accomplishment is how he developed his staff.

You joined American Airlines in 2002, after the 9/11 terrorist attacks. You're leaving as U.S. involvement in the war in Iraq draws down. There's been a recession or two in between and the airlines are everyone's favorite industry to hate. Has it been a wild ride?

A decade ago, we talked about all the things we needed to do at American and how Sept. 11 had a devastating effect [but] we were still going to do these things. We were trying to integrate TWA, which was pretty big. Sabre was selling its IT business to EDS.

Monte Ford
Monte Ford

Not that I'm the best leader ever, but the people we were able to assemble really met the challenges. We came from a place where we had lost our technology leadership and outsourced our thinking to a place where we're thought leaders. Now mobility, networking, back-end systems -- these things set us up to support the customer of the future.

Through these tumultuous years, how did you get the money to pay for all the IT you use?

Every year, we gave ourselves a challenge: to self-fund the new things we needed to do, by taking whatever million from operating expenses. In the last two years, we had the lowest operating expenses we've ever had. Some people, when money gets tight, will back off on innovation because they're hunkered down. We had the opposite philosophy. That's the time you need to spend most [on innovation].

Everyone was okay with that?

We developed relationships with the business units that gave us the credibility to make these decisions. If you're constantly justifying your existence, you are in less good position to do your work. Initially, it was, "Can we even come to strategy meetings?" Now, we're doing presentations in those meetings.

What is your most lasting accomplishment at American?

The development of people. The focus has to be not on looking back but forward. Back is not where innovation and creativity come from. Always move people forward. I like to rotate people into different areas so they're not getting stale.

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