Simplicity…. Success…. And Southwest Airlines
Southwest Airlines is unarguably one of the most successful and profitable airlines in the United States. For much of its 50-year history, Southwest Airlines (NYSE: LUV) has been one of the most profitable airlines in the world. Indeed, from 1973 to 2019, the company put together a string of 47 consecutive annual profits: an amazing feat in such a volatile business (reported in Nasdaq 2021).
There are two primary reasons for Southwest’s success:
They recognize they are first in the customer service business, and second in the airline business. We can have all the fancy marketing, content, and strategy… but without stellar customer service we will not have a business. Happy customers = business based on referrals and trust.
Simplicity. As Southwest grew from an idea on a bar napkin to the largest domestic airline in the US, they adhered to the business concept of simplicity. For most of its history, Southwest only used one plane model, the Boeing 737. A few variations have come and gone, but the base of the fleet has always been the 737, and this was intentional. The idea was to streamline all administrative and operational parts of the business. If you only have one type of plane you only have to train EVERYONE on one type of plane…. Pilots, technicians, all the way to the reservation system and cleaning crew.
There’s a lot to be learned from Southwest as founders and entrepreneurs begin to dream, plan and implement for 2023. Customer service should always be our #1. For me, trust and customer service go hand in hand.
As your CFO, I also want you to consider simplicity. Primarily simplicity in the areas of revenue streams/products and support systems. Less is more. More time, more freedom, and more flexibility.
