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Several years ago an analyst added up the cumulative profit of the publicly held airlines that had existed up to that time. The result of the computation was approximately zero. Consequently many investors, such as the redoubtable Warren Buffet, have concluded that the airline industry is not worthy of their investment dollars.
One of the few standouts in the sad scenario of the airline industry is Southwest Airlines. Since the early ’70s, this upstart carrier has consistently made a profit. Why? Southwest embraces one very powerful principle that shapes its philosophy and culture, namely, the golden rule.
The golden rule is “do to others what you would have them do to you” (Matthew 7:12 [NIV]). For Southwest, this means the company only hires people who are service oriented. Then the company works hard to create a fun work environment. The culture is so employee oriented that some have characterized it as “employees first, customers second.” (See Nuts by Jackie and Kevin Freiberg.) The theory is that if the company takes care of its workers, the workers will take care of its customers.
Southwest’s success is legendary, so when I was offered an opportunity to visit with one its vice presidents, I eagerly accepted. As a management consultant, I always relish opportunities to visit with leaders of successful organizations.
We met over lunch. I began by extending my compliments for Southwest’s outstanding performance. The vice president graciously acknowledged the kudos and invited me to begin my interview. As we discussed the company’s philosophy, I asked what the company did with employees who didn’t work out. The answer was that the company was reticent to lay off or terminate poor performers, particularly workers who had been with the company for any length of time. The company’s solution for poor performance was to move the workers to positions in which their poor performance would minimally impact the company.
On one level, this answer sounds benevolent, but on another level the policy is inconsistent with the company’s desire to deliver superior service. Workers who don’t serve customers well create ill will. Ill will negatively impacts a company’s reputation and, ultimately, the bottom line. Furthermore, by retaining workers who are not performing well, a company is tacitly condoning their work and giving the impression that their performance is acceptable. Neither the workers nor the customers nor a company are blessed by this policy. The only possible advantage of this policy is that management avoids the stress of confronting poorly performing workers.
Everyone is blessed when truth rules and reigns. Poorly performing workers need to be challenged to align themselves with a company’s philosophy. Customers need to be served with excellence. Management needs to guard the company’s reputation and profitably grow the business. All of these objectives can be realized only when management refuses to support poor performance. When mercy trumps accountability, the result is dysfunctionality.
Despite Southwest’s outstanding performance, it could do better by refusing to allow this dysfunction to creep into its organization by choosing to hold all of its workers accountable to the high standards of the golden rule.
Gerald R. Chester is president of Strategies@Work, LLC, a management consulting firm specializing in helping business owners and management teams build world-class organizations based on the timeless universal principles of leadership and management taught in the Bible.
Since 1987, Dr. Chester has worked with dozens of companies in a wide variety of industries. His focus is to help clients build great organizations by understanding and implementing the key principles of enduring success?building equally yoked management teams, developing efficacious strategic plans, and executing with excellence.
In June 2005, Dr. Chester was awarded the Christian Leadership Award by Dallas Baptist University and the CEO Institute.
To reach Gerald, e-mail him at [email protected].
