1:Southwest:
A LUV STORY
Introduction
In 1983, about a decade after Southwest Airlines started flying, a childrenâs book called Gumwrappers and Goggles, written and illustrated by Winifred Barnum, was published. To most readers, the book was largely indistinguishable from the multitude of childrenâs books published each year. But the premise of its story had an uncanny resemblance to a famous court case that anyone following Southwest Airlines would have identified.
In the story, TJ Luv, a small jet, is taken to court by two larger jets to keep him from their hangar and stop him from flying. In 1967, soon after Herb Kelleher and Rollin King incorporated the airline in Texas, three other airlinesâBraniff, Trans-Texas, and Continental Airlinesâstarted legal action against Southwest (then called Air Southwest Co.) to prevent it from flying. In the book, TJ Luvâs right to fly is upheld after impassioned arguments from a character called The Lawyer. In 1970, Air Southwest prevailed over its antagonists as the courts upheld its right to fly.
While no company names were mentioned in the book (which continues to be in print), TJ Luvâs colors were those of Southwest Airlines, and the two other jets were in Braniff and Continental colors. The Lawyer, quite obviously, resembled Herb Kelleher.
Having overcome legal struggles, Air Southwest Co. changed its name to Southwest Airlines Co. in 1971, and established its headquarters in Dallas, Texas. Southwest Airlines began scheduled flights on June 18, 1971, from Dallasâ Love Field to Houston, and Dallas to San Antonio, with their fleet of three 737-200s.
One of the greatest airline stories of the modern era was finally underway.
Say it with LUV
The childrenâs book, which turns out to have been commissioned by the airline, is only one of the myriad ways in which Southwest Airlines has affected and shaped its public perception and, in the process, stood out from its competitors. That process, of course, started right at the beginning when Lamar Muse, the airlineâs first president, ordained that hostesses (all female at the beginning) would be dressed in tangerine hot pants and go-go boots. As Southwest Airlines claims on its website, âWith the prettiest Flight Attendants serving âLove Bitesâ on our planes, and determined Employees issuing tickets from our âLove Machines,â we changed the face of the airline industry throughout the 1970s.â
The hot pants and go-go boots eventually gave way to less gimmicky, more respectful attire for its female flight attendants. In 1982, Southwest finally decreed that customer-facing agents could be both male and female. The airline, initially a close copy of Pacific Southwest Airlines, developed its own distinct culture and practices, including a unique boarding process. Recently, Southwest has embraced social media wholeheartedly, not only in order to reach out to its many advocatesâand to offer a glimpse into the brandâbut also to serve its customers better.
Most importantly, the word âLoveââor, in Southwestâs orthography, âLUVââhas been important to Southwestâs brand from the beginning. TJ Luv is but one small repitition of the LUV theme. The airline claims that âSouthwest has been in LUV with our Customers from the very beginning. Therefore, itâs fitting that we began service to San Antonio and Houston from Love Field in Dallas on June 18, 1971. As our Company and Customers grew, our LUV grew too! Then in 1977, our stock was listed on the New York Stock Exchange under the ticker symbol âLUV.â Over the ensuing years, our LUV has spread from coast to coast and border to border thanks to our hardworking Employees and their LUV for Customer Service.â
In 2016, Southwest Airlines is at a delicate stage. As the largest domestic carrier in the US, it is in a unique position. It flies to about a 100 destinations, employs over 50,000 people, and has a massive fleet of more than 700 planes all Boeing 737s. It is also the second-largest carrier in the world, transporting almost 144 million passengers in 2015. While other airlines have suffered bankruptcies and layoffs, Southwest has remained profitable for 43 consecutive years.
LUV has brought Southwest Airlines this far. But now that the airline is poised for international growth and further expansion, can LUV thrive globally?
The Brand with a Heart
The Southwest story has become famous in the airline industry and beyond. Yet it grows better with each passing year, as Southwest Airlines itself grows. It starts like this: More than 49 years ago, Rollin King and Herb Kelleher decided to start a different kind of airline. They began with one simple notion: if you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline.
Herb was later joined by Colleen Barrett, who had been his executive assistant at the law firm he ran before starting Southwest. Working closely with her mentor and former boss, Colleen pioneered Southwestâs unusual and now legendary approach to customer service, which aims to treat the companyâs employees like family, to make the workplace fun, and then to carry that upbeat attitude to consumers.
Everything that Southwest has done since its inception has aimed to prove that itâs possible to succeed through a dedication to the highest quality of customer service delivered with a âsense of warmth, friendliness, individual pride, and company spirit.â
Employees Embody the Brand
Though she stepped down from active duty in 2008, speak to employees now and you get a sense that Colleenâs spirit is still at the center of the airlineâs ethos. âEveryone cares, everyone is cared forâ is a motto that resonates with the airlineâs staff. Almost everyone we spoke to had a reverential attitude toward their former boss.
Mike Hafner, Vice President of Cabin Services, says that little has changed in the last 35 years. Mike has been in the airline business since age 15, when he began working out of the back of his motherâs station wagon as a baggage delivery agent for several airlines. He began working at Southwest in 1981, when he was just 23 years old. His first job was ramp agent, cleaning the planes when they stayed overnight in Austin, Texas. In 1982, after it was decreed that flight crew and ticket agents could be both male and female, Mike became the second male ticket agent in Southwest history. For 26 years, he held multiple positions in ground operations before becoming the Vice President of Inflight Services in 2007. In 2009, wanting to enhance customer experience, Mike led the effort to combine Inflight and Provisioning into the single Cabin Services department, adding another 14,000 people to his responsibilities almost overnight. Since 2015, he has been Vice President of Customer Services. He describes Southwest employeesâ trajectory at the airline not as a ladder, but as a lattice, since the airline encourages employees not simply to move up the ranks within a single department, but to move their talents from one department to another, resulting in people with a greater-than-usual breadth of knowledge of the industry.
Southwest is still an organization that believes in creating strong leaders who care about their teams. In fact, the reason Southwest has succeeded, according to Mike, is that âboth its leaders and its frontline employees have outworked and outcared the competition.â
Brand Refresh
One of the people who most exemplify outworking and outcaring is Anne Murry, who led the brand refresh and rollout for Southwest Airlines in 2014. After extensive research and concept evaluations that stressed the need to appear fresh while retaining the spirit of Southwest, Anne and her team put love right at the center of the brand.
Research started in 2013 with both customers and non-customers. The focus was on remaining a colorful brand. Also a consistent brand: before then there had been no brand guide. Everything was completely dependent on trust. Internally there was no brand consistency, with different departments carrying out different executions of internal campaigns. So the custom logo used for a community day effort, for instance, was different from the custom logo for a birthday party.
The previous update to the brand had happened in 2001, and was minor compared with the thoroughgoing 2013 effort. This time everything was re-examined, and every element of the brand that was retained or created anew had to have a good reason to exist. In a logo redesign, the word âAirlinesâ was dropped entirely. Anne cites Apple and Starbucks as inspirations: Apple removed the word âComputersâ from its logo and Starbucks went so far as to remove the word âStarbucks.â The âSouthwestâ is now followed by a small heart, almost like a punctuation mark, signifying humility. The desire was, ultimately, to position Southwest as a lifestyle brand, with heart at its core.
The Southwest ride has been exhilarating for Anne, with many high points, but the night of the brand rollout, September 8, 2014, was particularly special for her. She still gets emotional when recalling it. After Dallas Love Field had ended its day at around 2:30 a.m., a team moved into place and flipped the images at 4:00 a.m. Anne describes it as a magical night, reminiscent of Christmas, in which gifts were unwrapped one by one. The team was in tears, hugging and kissing each other, savoring the moment theyâd awaited for months.
She also remembers sighing with relief after it was all over. So much could have gone wrong, but everything went right. She says, âItâs the people I get to work with, it blows my mind, thatâs why Iâve stayed in a marketing role for 25 years.â
Responses to the new brand from customers were mostly very positive. Respondents singled out the heart in the logo: no other airline has it, and it probably would not feel right as a brand statement about any airline but Southwest.
Even when introducing the world to something so obviously customer-targeted as a new brand identity, Southwest ensured that its core values would still drive the change. This is how Gary Kelly, current CEO of Southwest, introduced the re-branding: âOur collective heartbeat is stronger and healthier than ever, and thatâs because of the warmth, the compassion, and the smiles of our People. The Heart emblazoned on our aircraft, and within our new look, symbolizes our commitment that weâll remain true to our core values as we set our sights on the future.â
People Power
Southwest Airlines has consistently won accolades for being one of the best companies to work at. Not only that, but it is usually the only airline on such lists. A positive culture has been a crucial part of the companyâs DNA all along. As Herb Kelleher put it, âThe business of business is people, people, and people.â For Southwest, that was true in the beginning, it is true today, and it will hopefully be true in the coming years. You will hear statements from Herb like this repeated often at Southwest: âOur people make us what and who we are, and our people can deliver what our customers want and need.â
To achieve and maintain its people-centered approach, Southwest begins with a set of attributes that percolate through the organization. Enter Southwestâs offices and youâll invariably find a poster reminding employees of three desirable traits that encapsulate the Southwest way: âWarrior Spirits, Servantâs Hearts, Fun-LUVing Attitudes.â
Each of these three traits has helpful sub-traits to ensure the message of the bold headlines is backed up with specifics. According to Julie Weber, VP of People at Southwest (at other organizations she would be known as VP of Human Resources), a Warrior Spirit means âa desire to excel, act with courage, persevere, and innovate.â A Servantâs Heart entails âthe ability to put others first, treat everyone with respect, and proactively serve customers.â And a fun-loving attitude includes âpassion, joy, and an aversion to taking oneself too seriously.â
âHire for Attitude, Train for Skillâ
These are not mere commandments that sit desolately on walls. Employees at Southwest have been nursed and nurtured into living by them. In fact, if they do not already embody them, they are unlikely to be hired. To ensure that they get the sort of people who embody Southwest traits, Southwest uses a behavior-based interviewing process. Potential recruits are asked questions that determine whether their past job performance indicates a dedication to service, creativity, and problem-solving skills.
Says Shari Conaway, who has been at the airline for 22 years in the People department, âAt Southwest, we hire for attitude and train for skill.â In other words, it does not matter if the new hireâs previous profession was not airline-related. If candidates score high marks in the Warrior, Servant, and Fun categories, they are likely to fit the Southwest mold. Shari says it is easier to train someone from another field how an airline works than it is to train someone from aviation how to be a nice person. In fact, the organization likes having a staff with diverse employment backgrounds, since a diversity of ideas will help improve the business.
Southwest spends an unusual amount of time on the recruiting and hiring process, and the numbers show how tough it is to land a job there. In 2015, the airline reviewed more than 351,000 resumes, interviewed close to 130,000 potential candidates, and hired just over 6,300 new employees. It is typical for the airline to interview more than 100 people to fill a single position. A fact often repeated with pride is that statistically itâs harder to get into Southwest than it is to get into Harvard.
One of the most unusual ideas that float around with an air of normalcy at Southwest is something that would sound outrageous elsewhere: âAt Southwest we are family. Hence nepotism makes sense,â said Gary Kelly, the CEO. Many Southwest employees are spouses or children of other Southwest employees. The airline actively encourages family members to apply for vacancies. While there are safeguards, such as not allowing one family member to supervise another, Southwest seeks to harness the potential of kin who are already familiar with and invested in the brandâthose who have grown up hearing about it, and know the benefits of being employed there. For example, VP of Cabin Services Mike Hafnerâs brother works at Southwest, and so does his wifeâin fact, he met his wife on the job. Connor Hughey, who works in Customer Relations at Southwest, completed two years with the company in June 2016. Not coincidentally, his mother, Cheryl Hughey, has been with Southwest for 36 years, and is now Managing Director of Culture. Connor says he âgrew up with the companyâ and was already familiar with the Southwest ethos when he joined. Seeing his mom work so dedicatedly with the airline encouraged him to seek a position there.
Building a Sense of Community
In 1999, Mike Hafner was diagnosed with a brain tumor, and underwent an operation the following year. He remembers receiving handwritten notes and cards from people in the organization, many of whom had probably never even met him. While he was in the hospital, his wife was compelled to stay home and tend to her pregnancy. Mikeâs sister-in-law, who worked at United, came to help. One day while she was attending to Mike at the hospital, she read all the notes. Overwhelmed, she started weeping. At that moment she understood how different Southwest was from United, where sheâd always felt like just another number.
Mike says Southwest understands that every employee has a story. The job of leaders is to learn those stories and through them, connect on a human level with their teams.
The sense of community at Southwest was put to a test when in 2014 the company acquired AirTran Airways, another low-cost airline based in Atlanta, Georgia. This was Southwestâs first acquisition of another airline. It was an anxious time for many at Southwest, who were concerned about dilution of the culture, quality of incoming staff (remember Southwestâs two-percent hiring rate) and pay disparities with AirTran employees who would suddenly start earning more at Southwest compared to their original pay.
The leadership at Southwest took the situation by the horns, and did what they do bestâthey harnessed the power of people. They initiated community programs to integrate AirTran employees and show them the Southwest Way. For the induction, a Wingmate program was established. Every AirTran employee brought in was paired with a Southwest buddy who would act as a coach-mentor-friend and show the new employee the ropes of the organization. Second, a Read Before Lead program ensured that the same information about the acquisition was shared across all Southwest leaders. The purpose of Read Before Lead was to ensure transparency, so that no corrosive rumors were floated about the acquisition. Third, under the Sponsor a New Hire initiative, Southwest would get its employees to pay five dollars to sponsor the lanyard of a new person for the induction training. In addition, photos of all new hires were displayed on a wall on the walls of the training center, and every new hire received a handwritten note from a current Southwest employee. The Wingmate program was later extended for a year, and, in keeping with the Southwest spirit, was re-named the Co-Heart Program. Today, 8,000 of the 50,000+ Southwest employees previously worked for AirTran.
Training for Success
Establishing the right environment is crucial to Southwestâs success at creating a culture in which employees are treated well, feel cared for, and therefore produce stellar results.
One example of a culture initiative geared toward generating a fun-LUVing attitude is Deck Parties on Monday nights. The reasonâuniquely Southwestâis that on Monday evening you should celebrate the fact that the worst day of the week is over. Of course, thereâs a more serious reason behind it too: every Monday, about 300 new hires visit the Southwest headquarters for their induction, so the Deck Party brings them right into the heart of the culture on their first day of work. The gathering takes place on a roof deck with stunning views of the runways at Dallas Love Field, a place to dream about the possibilities of the future, and to breathe in the culture that ...