Southwest Airlines - a Culture of Hospitality

(Notes from the 2016 SCCA National Convention in Las Vegas, January 2016)

For those of you who flew to Las Vegas on Southwest Airlines, THANK YOU for flying SWA!!! I spoke to you at the 2014 convention in Charlotte about Southwest’s history and culture, and the changes we were going through at the time. We talked about the importance to our culture of having and sticking to a well-communicated and "bought-in-to" vision, purpose, and mission, and the importance of changing with the times. The SCCA was in a very similar situation, having experienced years of success and growth followed by a challenging economy and new competition and a changing demographic. It looks like we’ve both weathered the storm and are better for it.

SCCA Director of Experiential Programs, Heyward Wagner and I spoke a few months back, and I shared the latest information about my work at Southwest Airlines University. He said, “You had me at hospitality” and asked if I would share it with you. So, we’re going to look at how Southwest Airlines continues to fulfill our vision to become the world’s most loved, most flown, and most profitable airline, and how the SCCA can learn from our example.

But first, just a brief history on Southwest Airlines to provide you with some context and to catch you up if you weren’t at the convention two years ago. We are based in Dallas, Texas. We began service in 1971 with just three aircraft serving three cities—the “Texas Triangle” of Dallas, Houston, and San Antonio. No one thought we’d make it. Things were different back then…our uniforms, our procedures, our equipment. And they were challenging, as large competitors fought to keep us on the ground. But we worked hard, helped each other out, and had fun…that hasn’t changed.

Today, Southwest Airlines is the nation’s largest domestic airline in terms of daily departures and customers carried. In our young 45 years, we’ve grown from fewer than 200 Employees to nearly 50,000. We’ve gone from flying just three aircraft to over 700 Boeing 737s. We started out with just three cities, and today we serve nearly 100 destinations in the United States and half a dozen near-international countries.

We’ve grown and evolved over the years, like all great Companies do. But we never lost our personality, and we never forgot that even after all these years, we’re not a company of planes; we are a company of people.

Running an airline is no easy business, but Southwest Airlines is a rare story of success, and it’s all thanks to our employees. In an industry that has cumulatively lost more than it has earned, Southwest has been profitable for 43 consecutive years – a feat unheard of in the airline industry. Our company is consistently ranked as one of FORTUNE’s most admired companies (22 consecutive years) as well as one of the best companies to work for in the United States. And according to the Department of Transportation, Southwest Airlines has consistently received the lowest ratio of complaints per passengers boarded of all major U.S. carriers since September 1987, when the DOT began tracking Customer Satisfaction statistics and publishing its Air Travel Consumer Report.

And, unlike many of our competitors, we have never involuntarily furloughed an employee.

Our strategic plan has come together extremely well, and we realized a significant contribution from our strategic initiatives in both our fourth quarter and annual results. For the fourth quarter 2015, we reported another record profit, as well as a record annual profit and profit sharing for 2016. 

So, what is our formula for success? Southwest’s people-centric formula is really quite simple: if we have happy employees, they will make our customers happy. And happy customers come back, singing our praises (especially now on social media), which leads to happy shareholders. Happy shareholders invest in us so we can upgrade our planes and our facilities, making the customer experience even better. It's an unusual cycle

Since we believe that our employees are the key to our success, we hire tough at Southwest. In 2015, we reviewed over 370,000 resumes, interviewed close to 130,000 potential candidates, and hired just over 6,300 new Employees. Statistically, it’s actually harder to get into Southwest Airlines than it is to get into Harvard! It is not unusual for us to interview more than 100 people to fill a single position.

We purposefully spend an inordinate amount of time on the recruiting and hiring process. We always say we “hire for attitude,” but not just any attitude. We have a very specific attitude in mind. We look for people who, before even joining our family, are already living what we call “The Southwest Way.” We look for folks who demonstrate a Warrior Spirit, a Servant’s Heart, and a Fun-LUVing Attitude. That’s what we look for, and what we expect from each employee.

We communicate obsessively, and tie training and performance and results to our expectations. And our employees all know that we and our customers expect a lot! Our Purpose, Vision, Values, and Mission guide us and help us make key decisions:

Our Purpose 

Connect people to what’s important in their lives through friendly, reliable, and low-cost air travel.

Our Vision

To become the World's Most Loved, Most Flown, and Most Profitable Airline.

Our Values

Live the Southwest Way by demonstrating a Warrior Spirit, a Servant's Heart, and a Fun LUV-ing Attitude.

Our Mission

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.

To our Employees

We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.

With these values and the incredible People of Southwest, we’ve made our mark on this industry. It’s no question that we’re the most successful airline in the history of commercial aviation over the past 40+ years. But the travel habits of our Customers have changed, and the world around us has changed.  And, we’re not resting on our laurels. We’ve re-tooled and revamped Southwest to be as relevant and successful for the next four decades as it has been since 1971.  We are in the midst of what we call an “evolution.” We’ve had a five year plan containing five big strategic initiatives that all work in concert to better position us to carry out our vision:

The AirTran Integration

All-new Rapid Rewards Program

Fleet Modernization

The Boeing 737-800

All-new Reservation System

The success of each of these projects individually would have been helpful. Combined, we saw record profits, and we also had record customer satisfaction numbers. We never stop looking for ways to improve the customer experience. We look for products and services that offer value and choice, not take them away. We are going to continue to look for ways to improve our product, and to improve the experience our customers have when they travel with us.

But, high tech without high touch just wouldn’t work for us! We’ve had a LOT of change in the past 5-10 years, driven by the economy, competition, and our own desire to grow while keeping costs low. But sometimes, you just need to keep it simple. For 2016, we’re going “back to the basics” with a focus on two things, both geared toward and driven by our employees – a relentless focus on reliability, and a continued focus on hospitality.

We measure our reliability in a number of ways – the DOT publishes statistics on baggage handling and ontime arrivals, and we look at our efficiency from a number of perspectives. But how do we measure our customer service? How do we know if we delivered on our promise to provide hospitality? And what’s our differentiator from our competitors?

As our founder, Herb Kelleher said, “The business of business is people, people, and people.” And for Southwest, that was true in the beginning; it is true today; and it will be true for the next 40+ years. Our people make us what and who we are, and our people can deliver what our customers want and need.

It’s our sense of humor and Fun-LUVing Attitudes; our warm, caring Servant’s Hearts; and our perseverant Warrior Spirits that will continue to set us apart. And it’s the combination of these three values that help us deliver "Hospitality, Southwest Style."

We’ve always said that we’re a customer service organization who just happens to fly airplanes. So what’s the deal with our new focus on hospitality? And what’s the difference? Are customer service and hospitality the same, or not?

Think back on a recent experience – maybe it was the cab ride from the airport to the hotel. Were your needs met? Did you arrive safely at your destination? Was the driver courteous?

Think about going to a restaurant…were you seated by someone who smiled and then quickly left your table? Did the wait staff arrive, explain the specials, and take your drink order? Did they return promptly with the correct food at the proper temperature and how you ordered it?

Think about your last SCCA event. How was the registration and check-in? How was it in Tech? Did you have a question that got answered quickly and correctly? Were folks courteous?

Now, thinking about each of these – how did you feel after the event or experience? Did you leave merely satisfied that your needs were met, or were you smiling and telling your friends about it? Did any of you go on social media and express your excitement for the treatment you received or the extra measure of care you were shown? Would you choose to return to that organization not for the product or service you received, but because of the way they made you feel?

Let’s look at a couple of definitions.

Customer service is the assistance and advice provided by a company or organization to those people who buy or use its products or services. It’s the act of taking care of customer needs with professional, helpful assistance to ensure customer’s expectations are met.

This is the minimum expectation. Customers come to us – they come to YOU – to have a need met in a prompt, courteous manner. They need you to provide a service, answer a question, and deliver on a promise. And they deserve to have their needs met – at a minimum – in a professional, timely, and courteous fashion.

But, can you receive bad customer service? Yes, you can. We’re not necessarily talking about the product itself being of poor quality. You should expect courtesy and kindness, timely service, a sincere apology if things don’t go as planned, and options for satisfying your needs. At a minimum.

Hospitality is the friendly and generous reception and entertainment of guests, visitors, or strangers. It’s the act of establishing a friendly relationship between the host and the guests.

Hospitality is different. It’s more about creating a feeling in the recipient. It’s about being genuine and authentic. It’s about helping your “guest” feel at home. It’s about creating a relationship between the server and the served.

You cannot have bad hospitality. You either feel it or you don’t.

And today, I’m going to introduce you to a new acronym that you can remember and use in all your SCCA interactions. This is not a Southwest Airlines term…it’s one just for you! And it’s an easy one, if you can remember to “shift” your mindset: G-E-A-R-S

Greet

It’s about greeting them with a warm smile and calling them by name. Be authentic!

Engage

It’s about engaging with them, even before you serve them. Notice and/or comment on something about them. Be genuine!

Act

It’s about being clear on their needs by asking the right questions, and even anticipating their needs. Then personalize your service by making them feel like home!

Relate

It’s about connecting with them. Show interest, sympathy, and concern for their situation. And show appreciation for giving you a chance to serve them, and for their patronage. Be thankful!

Solicit

Don’t forget to ask if they have any other needs you can help them with. Ask for feedback on how you served them. Also, remember to ask them to return; remind them of the next event. Be inviting!

Then, get ready to repeat the cycle. Go through the GEARS again! You can’t let up even if you’re tired. You have to keep shifting gears to provide the same hospitality to the next person you meet. And the next. Even if things aren’t going well for you or for them, you must persist.

We said we take care of employees first, so let’s start with the hospitality we provide each other. Think about how someone in the club does hospitality internally, to the volunteers for example. Which of the GEARS did you witness them using? What was the outcome? How can you learn from them and demonstrate the same behaviors?

Now, if we have taken care of each other and shown hospitality within the organization, we’re better prepared to show it externally. How about the hospitality we provide to those new to the club? Think about how someone demonstrates hospitality to new or potential members. Which of the GEARS did they demonstrate? How can you emulate that behavior?

Finally, what happens when you’re in the grocery store or at a party or in line at a fast-food place, and someone comments or asks a question about your SCCA t-shirt or hat or credentials? You have an opportunity to be an ambassador for your organization! Think about how someone in the club is a champion for the SCCA, and how they evangelize the organization. Which one of the GEARS was most helpful? How was it received by the individual?

Let’s finish by talking just a bit about your “personal brand” and how it impacts others’ perceptions. Within seven seconds of dealing with your internal or external customers, they form eleven opinions and perceptions about you, and about your organization. What do you want others to think? How do you want them to feel about you and about the SCCA?

Some very well-known logos (Apple, Mercedes, Starbucks) have almost universal appeal and positive perceptions. Some also well-known logos (Blue Bell, Volkswagen, British Petroleum) have recent slips and are struggling to regain ground. Some other recognizable logos have learned how to work and compete with each other (Target/Walmart, Lowe’s/Home Depot, Sam’s/Costco) by differentiating themselves. Still others (Blockbuster, Blackberry) are gone or struggling with remaining relevant.

What do you want for the SCCA? How do you want others to see us? How do you speak about us when others are present? What is the value of keeping it positive, and saving our questions, concerns, and disagreements for behind closed doors? Our future success is up to you.

You have the hospitality gene! You’re already running through the GEARS! It’s within each and every one of you! Frankly, it’s the only thing that may differentiate the SCCA from our competitors, and will ensure those who aren’t ready to join yet will still WANT to come back and tell their friends about their experiences!

Thanks for letting me share my passion for hospitality with you!