The Southwest Business Model


September 4, 2007

If you don’t already know the story of Southwest Airlines, you should. Take a quick minute at the beginning of a post-holiday week for a quick refresher courtesy of a segment from last weekend’s CBS Sunday Morning – you can read the text or watch the video here.

Basically, it all comes down to a seemingly simple business model projected by the airline’s former CEO, Herb Kelleher. He asserts that if you focus on your employees then all of the rest will fall in to place. Because if you take care of your people, then they project their pleasure onto your customers, who in turn have favorable experiences and continue buying, which in turn pleases your stock holders or whoever your business serves. Herb’s also responsible for one of my favorite quotes: “We have a strategic plan. It’s called doing things!” No bull. Just a remarkable company.

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is a strategist, speaker, educator, and author of Brand Now: How to Stand Out in a Crowded, Distracted World and Get Scrappy: Smarter Digital Marketing for Businesses Big and Small. He is the Chief Brand Strategist at Brand Driven Digital, an educator at the University of Iowa, and host of the On Brand podcast. More about Nick.