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Thursday, September 09, 2010 : Southwest Airline Provides Model for Builders

What lessons can an airline with 35,000 employees offer to a group of small and medium-sized builders? In early July Chuck and Emma Shinn together with 14 builders from the Benchmark Group, a builder group they facilitate, participated in a tour of Southwest Airlines’ headquarters in Dallas. It was a rare opportunity to get a closer look at how the most profitable airline in the industry has created a corporate culture that clearly contributes to its profitability. The concept is simple:  value your employees above all else and the rest will fall into place.

The 20-year-old Benchmark builder group is reading the book NUTS!: Southwest Airlines’ Crazy Recipe for Business and Personal Success by Kevin Freiberg & Jackie Freiberg. Kevin Freiberg was a speaker at one of The Shinn Group’s Executive Summits. The builders saw first hand that despite the challenges of such a large organization, Southwest’s focus is on how to get their employees to buy into the culture.

“Their employees are very engaged and feel like they’re part of the company,” says Emma Shinn. “They feel like they are recognized for their efforts. They are very proud to be employed by Southwest.” Southwest once had 14,000 applications for 900 positions. “They can really pick and choose who they want to work for them,” Emma says. “The skills are critical, but they hire for attitude.”

It all starts at the top. Herb Kelleher, who founded the company in 1971 and is the current chairman, uses an innovative management style and employee benefits that not only include profit-sharing but that incorporate New Age management techniques, such as celebrating milestones. They let “love” play a part in running the airline (the company’s stock ticker symbol is LUV). Southwest has created a culture where employees are treated as the company’s number one asset.

As the group toured the building, they saw wide hallways lined with photos of the employees and their families, parties, babies, weddings, employees who have died, awards they have received. “It’s like going to someone’s home who has a large family,” says Emma. “They are showing off their employees and what they’re achieving in their personal lives.”

The company’s mission statement, which includes the Golden Rule, is posted on every floor, by every elevator, by nearly every door. “The system gets rid of people who don’t fit in,” says Emma. “The culture is so strong, if they don’t really feel comfortable with it, they will leave. This is their competitive advantage.”

The mission of Southwest Airlines is “Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit”. The rest clearly does fall into place.

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