Case Corporate Excellence Southwest Airlines is a good example of managing the corporate brand with a focus on employees – the main group of stakeholders. Awareness of the fact that the employees are the main contributors to building the brand and understanding that this group of stakeholders is the priority client, enabled Southwest Airlines to become the leading airline in the United States by the number of passengers per year. Well-organised management that combines corporate culture and clever brand management – manifested through the commitment of the personnel – led to a situation where the company instead of employees has a group of fans who are constantly contributing to the growth of the brand value: day after day, during every flight.

1. Cases
Strategy Documents
C01 / 2011
Reputation
Southwest: The quality
management and a good
customer service focused
on the employees
In a business where the key to success is based on passengers’ turnover,
Southwest has found a competitive advantage involving its employees with
Southwest brand.
Southwest Airlines is a North American low the employees’ satisfaction. This radical change of
cost airline, 38 consecutive years of profitabil- approach has given good results from its inception
ity backing Southwest experience. The fewest to the present time; So much so, that even within
number of complaints from consumers since the fusions that the company has suffered, the
1987 and the largest number of passengers main idea has been always to think first about the
carried all over the country (more than 100 employees. This positioning defines a solid corporate
million per year). culture through its history.
The airline has been developing the last three years In the sector services there is a principle widespread
an only company’s annual report (performance, that “the customer is King”, and with good reason.
people and planet) following the Global Reporting But many times, the obsession of the customer
Initiative’s (GRI) standards. The key indicator to satisfaction, can make we forget the stakeholders,
measure the performance of the company comes very important and closer at home, employees. In a
from the results of the Net Promoter Score (NPS), company’s products and services customers become
index to measure the willingness of customers to timeless brand ambassadors, but must be borne in
recommend a company and classified them into mind that employees are the true storytellers both
three groups: promoters, passive and detractors. the company and its brand. In fact, according to
Global Reptrak Pulse of Reputation Institute, on
It is fitting to point out the fact that the company the reputation of a company the perception of the
strategy does not focus on managing the quality and product weighs less (40%) than the perception of
the good customer service, but start of managing corporate brand (60%).
Document prepared for Corporate Excellence - Centre for Reputation Leadership quoting, among other sources, the interventions of
Southwest Airlines in the fifteenth International Conference on corporate reputation, brand, identity and competitiveness held in New
Orleans, May 2011.

2. Southwest: The Corporate culture history Southwest understands it that way and base its
quality management In 1967, Rolling King and Herb Kelleher initiated a business model on low-cost operations to such a
and a good customer
service focused on new aviation business for the market of Texas taking point the company is pioneer in rotation services
the employees its services to the three main cities of the State : between a flight’s arrival and the boarding the
Dallas, Houston and San Antonio. Thus, on June 8, following one, keeping its airplanes ashore no
1971, the first Southwest plane took off from Love more than twenty minutes. But this requires a
Field in Dallas to Houston. high involvement of its employees in order to act
effective and efficiently, key issues to maximize the
During the 1970s, Southwest operations marked company benefits.
the direction of the company in the future, since
by 1974 they reached the record of 1.1 million This circumstance demonstrates to what extreme
passengers. Southwest’s low costs let that the the company depends on the good acting of its
price of their tickets was highly more competitive staff and why is essential to take care of the main
than the rest of companies in the sector and made capital of the airline: its employees. In its strategy,
Southwest, a small regional airline, from becoming Southwest puts employees first for that reason
one of the most valued lines in the world. Southwest is the first company in the United States
on Fortune Most Admired Companies.
The birth of the company culture is due to the strong
relationship between management, workers and The harmony between the brand and employees is
trade unions. The founder and CEO to 2008, Herb based on if you take care of your employees, they will
Kelleher, who took upon himself to lay down the treat well your customers and your customers will
basis of Southwest’s famous culture, characterized keep the company afloat. This is also demonstrated
for humor, the loyalty and the relaxed style. through a program of points and actions towards
Kelleher was in charge of traveling all around the employees where, from the beginning, the company
country working together with the employees. As a offered secure jobs. Even though that policy has
result of this and his concern to ensure the cultural been affected by the cyclical changes, the company
compatibility in recruitment, Southwest has become has known how to dodge the economic onslaught in
the prototype of a company where they work hard EE.UU in order that these do not impact negatively
but they enjoy themselves at the same time. on its staff.
The construction of this culture begins with a
concrete process of selection of people who possess the “If you treat your
values of the company, as well as technical expertise.
Southwest has a philosophy of selection of people
employees well, they will
with a profile of a servant’s heart, good sense of humor treat your customers well
and an attitude of not taking life too seriously. The
company was born with this philosophy, which is also
and your customers will
used to train staff putting them up to be always in a keep the company afloat”
good mood face to face with the customer. Southwest
Airlines bears in mind the premise employees are the Another example of harmony between the
first ambassadors of the brand. company and its employees resulted in the actions
taken against the terrible consequences for the
The key to success: Employees airline industry caused by the attacks of September
One of the keys to have good financial results in the 11. Due to the vertiginous descent in the use of
aviation sector is the speed with which you do the the airplanes as means of transportation after the
change of passengers. attacks, the company chose to cut out its cash
reserves before touching the staff. The employees
Brand management through its employees took the company measures in a very positive way
and helped the brand inclusively renouncing part
of their salary in order the company did not lose
Suppliers competitiveness or even failed.
Their culture is based on stories in which the
employees are the “heart heroes”. To achieve the
Southwest: deployment of attention to its workforce, the
shareholders customers
Employees
company has a small group within the internal
communication area called the “Internal Client
King”, which is a small Department of six people
managers involved in taking care of the rest of the employees.
Their activities include, for example, congratulate
them on their birthday, giving them the sympathy
Source: Southwest Airlines, 2011. from any tragedy, etc.
Cases 2

3. Southwest: The This Department is dedicated full time to serve to Another example of the strong corporate culture
quality management the rest of the employees as customers. Product of focused on employees is found in the “One Love”
and a good customer
service focused on this action, they are organized, for example, costume programme that has been set up as a result of the
the employees parties in Halloween, even inside the plane the merger of Southwest Airlines with Airtrain Airways.
staff is dress up as witches, or, for Valentine’s day, Furthermore in this sense, the company works in
the flight attendants are disguised as hearts. All the construction of network communities and in
of this arises the idea of making fun of them and activities of social responsibility where differentiates
perform many activities to surprise their employees two clear lines of action:
and customers.
1. Facilitating transportation and advising to
“The satisfaction of your the employees’ relatives in case of disease,
disasters, etc.
employees is the best 2. Accomplishing a single company report which
way to cultivate a strong integrates financial information and non
financial information.
corporate culture”
Conclusions
Harmony between brand and employees Southwest Airlines is a good example of corporate
The company has created its brand from the pride brand management focused on employees, their
of belonging of its employees who considers the main Stakeholders. The belief that employees are the
main pillar on which holds all their business, to main ambassadors of the brand and the conception
such an extent that we find the own employees that this Stakeholder is the priority customer, has
in the Mission of Southwest Airlines, that it is turn Southwest Airlines into the biggest U.S. airline
as follows: Dedication to the highest quality of by number of passengers transported per year .
customer service delivered with a sense of warmth,
friendliness, individual pride, and company spirit. With good management unifying corporate
We are committed to provide our employees a culture and brand - manifested through its staff -
stable work environment with equal opportunity the company has achieved to have, rather than
for learning and personal growth. Creativity and employees, fans that constantly increase the value
innovation are encouraged for improving the of the brand: day to day and in every flight.
effectiveness of Southwest Airlines. Above all,
Employees will be provided the same concern,
respect, and caring attitude within the organization
that they are expected to share externally with
every Southwest customer.
Brand management through the service
Company employees customers
Brand route
-To involve in the brand
-Internal Client King -Quick service
-Development of the sense -Good customer service
of belonging -Good connection between
-The employee is the first the brand and customers
thing
Source: Southwest Airlines, 2011.
Southwest Airlines strongly believes the
satisfaction of their employees is the best way to
cultivate a corporate culture. In order to know the
degree of satisfaction and pride of membership, the
company realizes quarterly a satisfaction survey to
all the employees.
Cases 3

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