Turns out flying the friendly skies is not such a friendly notion for business investors. Most of the current airlines have lost money. Jet fuel prices increase while consumer confidence decreases. American Airlines is canceling flights while Continental and Delta are constantly running behind schedule.
The outlook for the next year is not looking so favorable, according to this article in the International Herald Tribune:
Recent fare increases and the weakening U.S. economy could hit the bottom lines of airlines in the United States as more companies are requiring their executives to fly economy instead of business class.
One company, however, founded 37 years ago has posted the most consistent profits every year of any airline- Southwest Airlines. The company also has the lowest number of complaints per passenger since the government started tracking it in 1987.
Why? They changed the game that was being played. They did not want to be an airline…they wanted to give people freedom.
(I know that, if you are like me, then you are tired of the Southwest Airlines example…every consultant who challenges people to “think outside the box” uses them, but bear with me…please)
Freedom. Southwest has sought to “democratize the skies.” They do not offer first class, no “hub and spoke” system of flights, and they still have their “cattle call” instead of the assigned seats. This makes the turnaround time incredibly low. They only use one kind of airplane.
They don’t follow the rules of what is expected. Instead, they stay true to a mantra that was pointed out well by Chip and Dan Heath in Made to Stick, “Southwest is the low-cost airline.” Everything else is the dubious luxury of other airlines. This low-cost makes air travel accessible for anybody and grants the freedom of air travel.
Culture. Employees are turned into raving fans for their “freedom” way of life. They are zany and a little odd at times. CEO Herb Kelleher attracts people to the airline industry that are not looking to leave their current employment. He posed for ads dressed as Elvis and asked for outgoing people who would not mind working in a place where Elvis has been spotted. As Kelleher was quoted:
You put your employees first and if you take care of them, then they will take good care of you. Then your customers will come back, and your shareholders will like that, so it’s really a unity.
Continued Entrepreneurialism. Southwest has announced a new program to attract business customers – Business Select. It offers full refunds on tickets, flexibility to change flights, more reward credits and a free in-flight cocktail for a modestly higher fare. They are not afraid to adopt new ideas into their company.
Southwest is thriving and growing in an industry that has been on the ropes for a while. The headlines about the airline industry are an exercise in “free-fall” puns. So, not only did their originality allow them to survive, but it has changed the way people think about flight.
They refuse to fit the mold of behavoir perscribed for mediocrity. Instead, they have chosen to be one of the best, most profitable, enjoyable companies in their industry…they changed the industry.
ASK YOURSELF…
One way to fundamentally analyze where you or your organization stands in your world is to ask yourself: If we didn’t exist, what would the world look like? “World” can be as small as “pet shops in San Fransisco” or “churches in Boise,” but, however you define your world, ask yourself what you offer that no one else can or will.
If you cannot answer that question with anything concrete or immediate, perhaps you should find the way that you can be disruptive to your industry.
HOMEWORK…
I suggest reading Mavericks at Work by Bill Taylor. It has lessons for anyone seeking to rise above mediocrity. Why be just another business blogger when you
Another person to check out is my friend Scott Ginsberg. He is not just another business blogger. He is a writer that has cornered the concept of approachability.
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Jeremy Nulik, Creative Energy Officer (CEO), St. Louis Small Business Monthly
Thanks for the link love hommie!
Great question: If we didn’t exist, what would the world look like!