Management students are often made to research and write about the management styles of companies that are currently in the news either because of their successes of their failures. It is embarrassing how some rising stars are the subject of admiration when they seem to be doing everything right, only to become fallen angels when a crisis shakes them to the ground and makes them bite the dust.

Just over a decade ago banking business schools were proposing the model adopted by the UK bank HBOS as one that could help retail banks to grow fast without encountering major risks. We all know how it all ended in tears for the shareholders and many employees of this bank, which has to be rescued in the beginning of the latest financial crisis.

More recently we have heard about the jaw dropping announcements by Ryanair that has been forced to cancel about 50 flights per day because it had messed up its leave rostering planning for pilots.

The crisis that enveloped Ryanair in the last few days has shocked passengers that were affected by these cancellations as well as investors who believe that the business model adopted by the Irish low cost airline is a sure winner.

Ryanair is no ordinary orthodox company. It is led by Michael O’Leary who failed to complete his University at Trinity College Dublin to join the founder of Ryanair Tony Ryan who pushed O’Leary through the ranks to eventually become CEO. It soon became evident that O’Leary was not the typical CEO who craves for a well-rounded and well-loved image. O’Leary soon became the driving force behind Ryanair. He promoted innovation by copying successful low-cost airline business models adopted by Southwest Airlines in the US.

The ability to act fast and change tack preferably with a lot of noise

He acted fast, aggressively and in an unapologetic way. The Irish media described him as “fiery, belligerent and antagonistic to competitors, outspoken and appears not to have a second thought about damaging his profile, or the company’s”.

The business culture that has been created by O’Leary is based on four deeply held beliefs that may prove to be difficult to embed in the cultures or other businesses which envy the commercial success of Ryanair. The CEO believes that what really matters to customers is a good deal.

In October 2013 he tweeted: “We’re not interested in being your friend. We want your money and we want your bum on our seat.” This outrageous approach did not seem to affect the airline’s results. It continued to grow exponentially. So it must be true that most customers put low fares at the top of their wish list when travelling by air.

Another quality that characterises Ryanair’s O’Leary is the ability to act fast and change tack preferably with a lot of noise.

O’Leary does not pussyfoot around issues. He is a straight talker even if he knows that he can easily offend people.

His philosophy on the importance of cost cutting is repeated on all interviews about the airline’s performance. But surprisingly O’Leary showed he could also change tack very quickly. In 2013 he said: “We’ve been listening to our customer’s in the last 12 months. I think that being nicer to them is really a new and winning strategy for me and Ryanair.”

Ryanair could do without a head of marketing because their CEO is so often in the limelight that everything he says frequently makes headline news in the world’s media.

A firm believer that there is no such thing as bad publicity, he once told the BBC that one of the things we have looked at in the past and are looking at again, is the possibility of maybe putting a coin slot on the toilet door, so that people might actually have to spend a pound to spend a penny in future. The media loved this provocation and kept talking about it for months.

But would a CEO with the persona of O’Leary be just as successful in any other industry that wants to have the commercial success of Ryanair?

Defying conventional wisdom on good leadership, being rude to customers and employees and treating politicians will insulting irreverence may have very different consequences in other industries like financial services.

The real test for Ryanair’s business model will come when O’Leary leaves the company on voluntary or forced retirement. I cannot imagine another CEO adopting his same style. The airline’s employees may no longer want to work for such a disrespectful employer.

johncassarwhite@yahoo.com