Southwest Airlines: A Cultural Assessment

Southwest Airlines: A Corporate Cultural Assessment

University of X

September 17, 2005

Southwest Airlines: A Corporate Cultural Assessment

Southwest Airlines (Southwest) is a domestic US airline that provides short haul, high frequency, point-to-point, and low-fare service to and from 60 airports in 59 cities across 31 US states. From humble beginnings in 1971, this airline with only four passengers per flight, and airhostesses wearing hot pants and white go-go boots, has evolved into a leader in the airline industry with unsurpassed employee loyalty. Southwest's unique and relaxed corporate culture has created a highly successful airline business that has shown a profit for 30 consecutive years. This paper will examine corporate culture of Southwest Airlines and its impact on the company's success.

Southwest's Formal Statements

Southwest has a commitment to customer service as evident in their mission statement, "The mission of Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit" (Southwest.com/about, 2005). According to the Department of Transportation, the airline has the best cumulative consumer satisfaction record in the airline industry. Southwest makes meeting the expectation of their customers a priority; realizing travelers have options when selecting an airline. The Southwest philosophy is that they are in the customer service business, which happens to provide airline transportation. Southwest has written a Customer Service Commitment, which is an official Contract of Carriage. The Customer Service Commitment discusses Southwest's pledge "to provide safe, affordable, reliable, timely, courteous, and efficient air transportation and baggage handling service on every flight we operate..." (Southwest.com/about).

Work Environment

The work environment at Southwest is an informal culture with motivated and energized employees. On board, the flight attendants often joke with the passengers, and are allowed to ad-lib their own announcements. They have even been found hiding in luggage compartments to surprise passengers. The airplanes are all Boeing 737s, and Southwest is updating the interior of the planes this year.

The work environment outside of the aircraft

is equally informal and positive as the inside. According to the CEO, Gary Kelly, the goal is fun and informality. The atmosphere is friendly and everyone is on a first name basis. A variety of activities and team building exercises exist to promote teamwork. Meetings are used as a means of communicating corporate goals and motivating employees (Chapman, 2005). At the corporate office in Dallas, one will find it more common to receive a hug than a handshake. The dress code is casual; if someone is seen in a suit that person is likely a visitor.

Slogans and Sayings

The informal and customer-oriented culture is represented in both print and video advertisements. They offer humor and customer focus. These slogans not only promote the airline, but also promote the values of the corporation and its employees. The slogans are not mere advertisements, but represent the culture of Southwest Airlines. For example, in the ad, "The Freedom to be Yourself is the Freedom to be Your Best" (2000), emphasizes working hard and playing hard. This is a place where people enjoy their job, so join the team. The slogan promotes individuality and excellence in the workplace. These are some of the core values at Southwest. Some other examples of memorable slogans are: "How do we love you" (1971), "We're spreading love" (1977), "Every seat, every flight, everywhere" (1994), and "You are now free to move about the country" (2004).

Training

Southwest has extensive ongoing training to constantly improve work aptitudes and reinforce the company's work ethic (Czaplewski, Ferguson, & Milliman, 2001). The company places the needs of for their employees first, believing that satisfied employees will provide superior services to the customer. The model for training includes using information and logic, listening to employees rather than talking at them, and employing procedures and rules as a guide rather than the law.

Rewards and Motivators

Southwest's reward system is reflective of the work demands placed upon them. Southwest offers competitive compensation, including free travel for employees and immediate family. In addition, Southwest provides considerable profit sharing, bonuses, and retirement savings programs. Many employees receive stock options, and collectively the employees own 11% of the company. To further motivate employees, the company holds many celebrations, both business-related and social. Occasions marking business-related achievements are well orchestrated, visible, and memorable. Often, employees are given merchandise, travel, and spontaneous praise to promote continued actions in line with the company's beliefs.

Stories and Legends

Story telling is a key component to the Southwest philosophy. Sharing stories of exceptional service or organizational triumph is a means to promote the family unit that is Southwest Airlines. For example, there is the story told of an airplane captain who left the plane after landing, and began to help baggage handlers remove and load baggage. Knowing that the flight was going to miss the arrival time by 15 minutes, he had radioed ahead to advise the ground crew to get additional help to unload the baggage in an attempt to regain the 15 minutes.

The pilot assisting the baggage handlers allowed the flight to depart on time (Laszlo, 1999). Stories such as this have become folklore and are used to reinforce the concept of the "employee family".

Processes and Measurements

Southwest implements processes that ensure their competitive cost advantage by keeping unit costs down. The unit cost is defined as the cost per seat for each mile flown. Southwest's leaders are able to measure and keep their unit cost 50 percent less than that of other carriers. They accomplish this by empowering the employees to work for their compensation. Southwest pilots fly nearly twice as many hours than the industry average, as the pilots are paid per flight rather than per hour, and are only paid for the time they are in