The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
The Southwest Effect Successful Practices of a Market Leader
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
The Emergence of Southwest
• Founded by Herb Kelleher and Rollin King in the late 60 ’s
• Designed to be a low cost high frequency carrier serving Dallas, San Antonio and Houston
• After several years of legal battles with other airlines, Southwest won their certificate to fly in Texas in 1971
• From the very beginning the employees of Southwest wanted make flying fun and available to all of the traveling public not just business travelers, the wealthy and celebrities
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The Emergence of Southwest
• Consumers, particularly corporate travel departments, became more price-sensitive in the 80 ’s
• Consumers began to redefine quality more in terms of reliability
• After about 20 years of operation, Southwest gained national attention in early 90 ’s by winning California intrastate markets from other major carriers
• During the Gulf War crisis, Southwest expanded while other airlines shrank
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Continued Growth
• While other airlines struggle to achieve 3 or 4 consecutive years of profitability, Southwest has been profitable every year since 1973
“The most successful airline in history… ”
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“Southwest is having a profound effect on the airline industry. Southwest’s much lower operating costs are making it the dominant airline today in the sense that Southwest, more than any other airline, is causing the industry to change. Other airlines cannot compete with Southwest in the same manner as they do each other. ”
Department of Transportation report
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Culture Drivers
Most Loyal Southwest Customers will say: • Low Cost
• Lean/Efficient Operations
• Reliable Service
• Fun and Enthusiastic Employees
• Customer First Attitude
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High Performance High Performance Low Fulfillment High Fulfillment
Low Performance Low Performance Low Fulfillment High Fulfillment
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Performance
What Drives Performance?
Teamwork
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Performance People Tension
Relational Coordination
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Performance People Tension
Relational Coordination
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Performance
What Drives Performance?
Teamwork Culture
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Change Culture Startup Growth Maturity Learn Change Risk-Taking
Growth Culture Innovation Culture Learning Culture Culture Cycles Building Heated Competition Don’t lose your edge! Recruiting New products? Learn your way to the New strategy? next level? Managing What ’s next? Startup Culture Risk-Taking
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Comfort Zone Renewal Equilibrium Culture Change Denial Confusion, Resistance Trial & Error
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
PEOPLE
CULTURE
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Performance Values
What Drives Performance?
Teamwork Culture
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Starbucks
Features of Starbucks Coffee’s Organizational Culture
Servant Leadership (“employees first”) Relationship-driven approach Collaboration and communication Openness Inclusion and diversity
Starbucks Coffee’s culture is a key success factor in the business. The company uses its organizational culture as a distinction from competitors. CULTURETOPIA
Southwest Airlines Vision
The Vision The Purpose The Mission of Southwest Airlines of Southwest Airlines The mission of Southwest Airlines is dedication to the highest To become the world’s Connect people to what’s quality of Customer Service most loved, most flown, important in their lives through delivered with a sense of warmth, and most profitable airline. friendly, reliable and low-cost friendliness, individual pride, and air travel. Company Spirit.
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Customer Service Focus
Southwest Airlines is a customer service company that happens to be in the transportation business.
The level of service you give externally will only be as good as the level you give internally.
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THE MOMENT OF TRUTH
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Moments of Truth
Perception
Values
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01 Appearance
02 Facial Expression What People Notice 03 Eye Contact
Body Movement “The 4 Minute Sell” 04 Research by Janet Elsea 05 Personal Space
06 Touch
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Sending & Receiving Gestures 55% Emotions Tone 38% Albert Mehrabian Professor Emeritus of Psychology, UCLA Words 7%
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Culturetopia “Best Practices”
Clearly define goals and expectations.
Provide the tools and training to ensure success.
Get people using their talents and strengths.
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
Soar with your Strengths By Don Clifton
90 wpm 300 wpm
6 week speed reading course
130 1500 wpm wpm $ CULTURETOPIA
Culturetopia “Best Practices”
Clearly define goals and expectations.
Provide the tools and training to ensure success.
Get people using their talents and strengths.
Give frequent recognition and praise.
Encourage continuous learning and development.
Listen more than you talk.
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018 The Southwest Effect -- Successful Practices of a Market Leader Presented by: Jason Young
ListenSilent
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Thank You Connect with Jason Young
Phone : (877) 995-2273
Email : [email protected]
Web : www.culturetopia.com
Twitter : @Culturetopia
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2018 Frame Building Expo Keynote Presentation - Wednesday, February 14, 2018