A Championship Program Under the Microscope

“Our people are our single greatest strength and most enduring long term competitive advantage.” Gary Kelly, CEO of Southwest Airline

What makes a winner? Winning, whether in sports or business, reflects your people, process, productivity, and consistency. 

Southwest Airlines defines winning. The second largest US airline, Southwest Airlines has fashioned profitability for an industry record forty consecutive years. Fortune ranks it among the ten most admired companies in the world, an achievement for seventeen of the past twenty-two years. 

The Main Thing. Southwest cut its teeth centered on the theme "low cost airline". Southwest has no first class, no full service meals, and has the most rapid turnaround of its plane of any major airline. 

Innovation. Southwest pioneered frequent travel miles and senior discounts. 

Service. No frills service comes with Southwest. But among large airlines, it has excellent on time performance. 

Process focus. Don Yaeger profiles Southwest and CEO Gary Kelly in Great Teams. He explains their focus as 1) employees, 2) consumers, and 3) shareholders. Southwest believes that employee satisfaction drives results. CEO Kelly remarks that being an industry leader doesn't protect you from competition from startups. In 1986, when Kelly started with the company, TWA's Carl Icahn made a "tongue-in-cheek reference to tiny Southwest that earned several laughs from the industry crowd." Kelly noted, "no matter how big you are, you need to remain humble...it pays to be hungry and you should never lose your competitive edge, because there is always somebody out there trying to knock you off." 

Part of their employee culture is fun...and a little goofiness. 



Southwest ranked thirteen among five hundred companies on Forbes' list of Best Employers for 2016. CEO Kelly notes, "Employees are invested in a common goal, which is to connect people to what's important in their lives..."

Southwest employees is the largest domestic carrier ranked by number of domestic passengers boarded. 

Business results.

The three-year chart of Southwest shows price rising from under 20 dollars a share to over fifty, as it nearly tripled in value. At the top of the chart, the Airline Index (XAL) rose 64 percent. (No position in Southwest stock)

What enduring lesson emerges for us in the basketball community? 

1) "People come first." Southwest thrives with its focus on its people. We've all seen Southwest employees in their advertisements... another reward for service. 

2) "Fight for your culture every day." Southwest maintains its focus on being THE low cost airline. 

3) "Stay humble, stay hungry."