Learning excellence: Southwest Airlines’ approach

In an era in which adapting to change means survival, it is important to study what successful organizations have done. While the airline industry in the USA has not made thriving financial headlines, one small company has been able to satisfy its customers completely and achieve a place among the Fortune 500 in a relatively short period of time. In three steps, this article examines what Southwest Airlines has done to reach this level of achievement and maintain its excellent employee and customer relations. First, the company is defined as “excellent” according to the criteria established by Peters and Waterman. Second, management‐employee relations, organizational training and strong leadership are identified as the sources of employee motivation. Third, loss of strong leadership and organizational structure are discussed as possible future problems influencing motivation and service. The article closes by pointing to Southwest Airline’s concept of service as the true source of motivation and excellence.