I just got back from my first prospective college visit to Florida with my oldest son, Michael (because of course why would he want to attend a college with in-state tuition!).  I’ve also been traveling a lot lately for new and perspective clients so I’m becoming quite the airline connoisseur.  Frankly as airfare has sky-rocketed I tend to book whoever is cheapest or works with my schedule, but I do have my favorites.

This most recent trip had me on Southwest Airlines.  Now I’ll admit that as an HR leader I have followed this company for several years.  Southwest is one of the few profitable airlines and has been in the black for 33 consecutive years and has paid a small dividend for 127 consecutive quarters. While its competitors are reducing the number of flights offered and grounding hundreds of aircraft, Southwest will add a few flights daily, will take delivery of another dozen aircraft next year and still plans to grow by 2 percent to 3 percent.  Southwest now carries more passengers annually than any other U.S. carrier.

So, my down time in the airport yesterday had me pondering...how has Southwest been successful?  I think it is based on a few guiding principles –

    * Keep things simple
    * Keep it consistent
    * Manage costs and maximize productive assets, and
    * Manage customer expectations.

These are business strategies that can be applied to most businesses.

Keep It Simple

While Southwest’s competition operates numerous types of planes, Southwest flies just one plane type.  This saves millions in maintenance costs, employee training, parts, etc.

Business Application – Do one thing and do it well

In the technology world, Human Resources software providers are trying to be all things to all people.  At Achievant, we have determined what we do is provide HRIS software solutions to small and mid-sized companies.  Achievant is not a payroll company, but we work with your payroll company to manage your employe data.  We have seen numerous companies try to meet all needs by bolting together the components of a human capital management system (i.e., HRIS system, time and attendance tracking, learning management, performance management, applicant tracking, and succession management) together with a payroll system and try to pass it off as integrated.  As a result these providers are adequate at many things, but not really good at anything.  Don’t get caught up in a feature/function comparison….who has the prettiest screen, bell, or whistle.  You should evaluate the entire package.

Keep It Consistent

I have to admit that I have not always been a fan of Southwest's approach to assigning seats.  Which is…..there are no assigned seats. You just line up according to an assigned number and you choose an open seat as you board the plane.  As someone who is slightly a control-freak (ok, maybe a little more than slightly), this was initially unsettling to not have a seat assigned specifically to me.  But, as I have flown with them more I have come to appreciate the control of choosing my seat...the one that is not next to the crying child or the chatty person, and have relished the opportunity to get a seat with extra leg room or no one sitting next to me.  Best of all, they still provide beverages and snacks for free!

Business Application – Manage the brand experience

At Achievant we work very hard to manage the experience our clients have with us and our Human Resources software solution.  Every time they contact us we want to respond to them in a friendly way, on a timely basis, and in a way that is relevant to them.  

No fees, no frills

As other carriers have removed perks and added fees, Southwest has kept its customer proposition streamlined and unchanged. The airline only sells in a few price "buckets" which allows it customers to understand the fare structure and believe they are getting value for their money. Prices are all-inclusive too, no fees for fuel surcharges, ticket changes, or luggage.  They have looked for out-of-the-box solutions to things like the clunky beverage cart.

Business Application – If customers can’t understand the pricing structure, they can’t understand the value you offer

Most HRIS systems, learning management systems, time and attendance solutions, and payroll providers utilize an ala carte menu for the services they provide.  In addition to the monthly or annual subscription, anything additional you’d like (e.g., a system change, new report) is charged by the hour or project.  This can make it very difficult to manage your costs.  I have spoken with numerous potential clients who when questioned how much they pay their current system provider, respond that they won’t know until the end of the year.

At Achievant, we have adopted a modular pricing model that is very simple to understand and is inclusive.  You are not charged for new version releases, minor system changes, client support, etc.

Management, Happy Workforce

Herb Kelleher finally stepped away from Southest earlier this year after leading it for more than a generation.  Although he was a very colorful leader, the airline avoided fads, shied away from anything that increased costs or complicated the basic travel proposition. Management ranks are lean, but most importantly, productive.

Southwest has embraced a culture of making their work (and consequently our travel) more fun.  They sing, dress in casual uniforms, and allow employees to go “off-script”.  In return, they have employees who are friendlier, seem to enjoy their jobs, and don't strike.

Business Application – If your workers aren’t happy, your customers aren’t happy

It is important to note that there are many intangibles that contribute to how much employees enjoy their job.  Take time to focus on these and you will be repaid for your efforts in higher levels of customer satisfaction.  360 degree feedback can be a great tool for this.

These are important business applications that I think will apply to any industry, not just HRIS software and talent management providers like Achievant.  In the meantime, I will continue to watch the progress of Southwest.