Strategic principles at Southwest Airlines

Abstract

Purpose – Southwest is the world’s fourth largest airline and has consistently been one of the most admired organisations in the USA. Its founder and Chairman Emeritus, Herb Kelleher, attributes much of this success to the use of strategic principles. This gives a guiding framework for employees within the company but allows them leeway to make their own decisions. The result is greater employee engagement, a more efficient organisation that is adapting to the needs of its major stakeholders and greater customer satisfaction. Design/methodology/approach – The article analysis of the use of the strategic principle methodology at Southwest Airlines. It focuses on the position of Southwest as “THE low fare” airline and the use of humour and different working practices within the airline. Findings – The article shows that If this can be done in an industry as heavily regulated as aviation, it can be applied with the same success to many other business sectors and organisations.