Excel In Any Industry
How do you become a millionaire?
“That’s easy. Start with a billion dollars and invest in an airline!” – Warren Buffett
The airline industry has proven to be a miserable investment since the industry was born. Huge fixed costs, strong labor unions and commodity pricing do not make for a strong industry.
But one airline has exceled despite the shortcomings of the industry. They just celebrated their 41st consecutive year of profitability. They have the lowest number of customer complaints since the Department of Transportation began collecting statistics in 1987, they are consistently ranked as a best place to work and they’ve never had layoffs. All of this and yet they are the most heavily unionized airline in the industry.
How does Southwest do it?
Southwest does a tremendous number of things right and we’ll dive deeper into each of those areas in later posts. Today, I’d like to just focus on the three pillars that Southwest is founded on.
- Employees First
Unlike most companies, Southwest puts their employees first. “The business of business is people” says Chairman Emeritus Herb Kelleher. The pecking order at Southwest is employees first, then customers and lastly, shareholders.
Southwest understands that Happy Employees = Happy Customers, and that Happy Customers = Happy Shareholders, in that order. - Hire for Attitude & Values
Southwest airlines looks for people who live the “Southwest Way.” Their employees exude the three core values of Southwest; Servants Heart, Warrior Spirit, and a Fun-LUVing Attitude. Potential employees are lined up to be a part of this organization. Southwest regularly interviews over 100 applicants for every hire they make. Southwest is able to hire the best employees because of the culture they have created. - Empower Employees
Like the luxury hotel giant, the Ritz Carlton, Southwest empowers and trusts their employees to do the right thing for customers. They follow guidelines rather than rules, which reduces bureaucracy. Employees know that if you fail “leaning towards the customer” that you will never get in trouble. Employees are encouraged to be themselves and have fun. When employees are having fun so will your customers. At least the “right” customers will be enjoying themselves.
In a story that has turned into part of Southwest’s lore, an irate customer wrote the then CEO Herb Kelleher to complain about how “casually” their employees treated something as serious as the airline’s pre-flight safety briefing. Southwest employees are known to get very creative with their safety briefings. Some are done in rap style and employees have been known to pop out of overhead bins in the middle of the presentation. Herb wrote a personal letter back to the customer stating simply, “We’ll miss you.”
Face it. Your industry is not the problem if you are failing. Look inward and find the will and the way to succeed in any industry, just like Southwest.
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Photo courtesy of http://pt.wikipedia.org/wiki/Southwest_Airlines
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