Hi! Welcome back. Before I get into today’s blog I must confess that I’ll be overseeing tomorrow’s Indiana primary as an Election Inspector in Floyds Knobs, Indiana. The purpose of the Inspector’s position is to make sure that everyone who comes to vote on time does and that the process is straight forward, private and fair. I’m sure I’ll write about my experiences later so please stay tuned.
Today and probably for the next few posts I’d like to explore more fully the secrets to Southwest Airlines great success in the tough competitive airline business. These tidbits are not offered so that you can get a DC-10 and start your own airline but perhaps you might see the wisdom in some of what Southwest does and incorporate that into what you do.
Southwest Airlines has over the years been true to its vision which is to make a profit, provide job security for their employees and make flying fun and more affordable for the general public. In chapter 5 of Nuts! Here’s what was discussed:
· Live within your budget. Are you listening Mr. President, Congress and EU nations?
· Manage is good times for bad times; i.e., save a little for a rainy day.
· Define your own targets. Don’t settle for conventional standards; create your own.
· Keep things simple. Streamline your systems and your life. At the time this book was written Southwest used only one type of aircraft—the Boeing 737. This simplified the training for pilots, flight attendants, mechanics and ground support personnel who could concentrate on learning all the key aspects of their job with one plane. It also made parts inventory and record keeping easier and simpler as well.
· Bigger isn’t always better. Don’t confuse market share with profitability. This was my take away from this chapter. Herb Kelleher, Chairman of Southwest Airlines said “Market share has nothing to do with profitability. Market share says we just want to be big; we don’t care if we make money doing it.” An example was given that in order to gain an additional 5% of the market; you may have to increase your costs by 25%. A great lesson for business entrepreneurs everywhere don’t you think?
· At the peak of success, look for things you can do even better.
· And finally, be humble: success is hardly ever all your own doing and rarely irreversible.
What are your thoughts about these tidbits of success? Are you applying them to your business and life? How about the market share comment do you agree with Herb Kelleher? Please let me know take a few minutes to post a comment and thanks again for reading my blog. Until next time all my best! Jer.
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