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Summary The attached paper describes the keys to success for Southwest Airlines, including its approach to quality management. Southwest did not implement a formalized "quality management program." Numerous companies in the USA have implemented formalized "quality management programs" and they failed because they were "programs of the month." Implementing "quality" throughout a company is not the result of a formalized program but requires a cultural change in the way daily activities are conducted. The requirement of "doing it right the first time" must be integrated into the daily activities or culture of the company. The chairman of the board and president of a company must establish the tone for quality in not only what they communicate but also in their daily actions. Quality must be ingrained in the overall business model and strategies of a company. Southwest is very effective in integrating the importance of quality in its overall business model, strategic plan and its daily operational activities. Southwest did not engage outside consultants to develop a "quality program" but its style, culture and emphasis on quality were implemented in Southwest's daily activities by Herb Kelleher, Chairman of the Board, and his management team.
Keywords Quality culture, Quality management, Airlines
Southwest Airlines
Southwest Airlines (Southwest) is the only profitable airlines in the USA. The market capitalization of Southwest exceeds the combined market capitalization of the other US based airlines. Southwest has earned a profit every year of its existence other than the first year of operation. Southwest is presently the fourth largest airline in the USA in terms of domestic passenger miles flown, serving 59 airports in 30 states (Donnelly, 2002; Serwer, 2004). Why is Southwest successful and the other airlines in the USA are not? "Its employees work harder and smarter, in return for job security and a share of the profits" (Donnelly, 2002). Southwest's unique culture, called "goofiness" by some individuals, keeps the morale of its employees high. Southwest is very serious about keeping its costs down. Southwest's employees have never gone out on strike. Southwest leads the industry in on-time performance. Through 2002, Southwest's stock price increased 29 percent per annum for the preceding ten-year period (Donnelly, 2002). The glue that holds Southwest together is its corporate culture.
Summary
Herb Kelleher...