10 Organizational Relationships(3 / 3)

Iftheteamshadcooperatedtogethermoreclosely,thespeedandqualityofthetotalworkperformedmayhavebeenimprovedinsteadofhavingonegroupfinishearlyandwaitfortheotherstocatchup.

Lotsoftimeandeffortwillbesquanderedpointingthefingerandblamingotherunits.

Thereisnoincentivetoshareinformation.Therefore,theproblemdoesnotbecomealearningexerciseonwhattoavoidinthefuture.

Withthisinmind,Southwesttakesadifferentapproach.Delaysarerecordedas“teamdelays.”Bybeinglesspreciseaboutthecauseofthedelayandmeasuringperformancebythemetricsthatmattertocustomers,Southwestputsmoreemphasisonlearninghowtoavoidarepeatinthefuturethanonaccountability.

HaveHighlyFlexibleJobDescriptions

Well-definedjobdescriptionsaretoostaticforadynamicandevolvingeconomy.Instead,atSouthwesteveryone'sjobdescriptionisclearandspecific,butthereisanaddedrequirementthateachemployeeisexpectedto“dowhateverisneededtoenhancetheoveralloperation—evenifthatmeanshelpingoutwithadifferenttypeofjobasrequired.”

Southwestislegendaryforhavingpilotswhoarewillingtohelploadluggageifthat'swhatittakestoleaveontime.Thisisindicativeoftheflexiblejobboundariesthatexistthroughouttheentirecompany,whereanyoneiswillingtopitchinwhereverrequired.HerbKelleherwasanexcellentrolemodelinthisregardaswell,sinceheoftenpitchedintohelpgroundstaffwhenvisitingdifferentgroundstations.

Whyissuchexemplaryjobflexibilitysorarewhenitclearlyhasthepotentialtogeneratesignificantperformancebenefits?

Mostemployeestendtousetheirjobdescriptionsasadefensemechanismagainstworkoverload.

Someemployeeslikejobdescriptionsbecausetheypreventtheirmanagersfromassigningthemtasksarbitrarily.

Bylimitingareasofresponsibility,employeescanspecializeanddevelopexpertise.

Unionsusejobdescriptionstoprotectthepoolofavailablepositions.

Note,however,thatflexiblejobdescriptionscannotexistinisolation.IfthemanagementofacompanyweretoattempttointroducethispracticewithoutalltheotherpracticesSouthwestuses,employeeswouldmostlikelyresisttheinitiative.Forexample,ifperformanceismeasuredanddetailedbydepartmentratherthantheresultsoftheoverallprocess,thereislittleincentivefortheworkersinonebusinessunittohelpanother.

PartnerwiththeUnions

MostpeopleassumethatSouthwesthasnounionsbecauseofitsflexiblejobdescriptions.Infact,SouthwestisactuallythemosthighlyunionizedU.S.airline.ThedifferenceisthatSouthwesttreatsitsunionsaspartnersratherthanadversaries.Inessence,Southwestdoesthreekeythings:

Southwestacceptstheunionsaslegitimaterepresentativesofemployeesandasvaluedpartnersintheorganization.

Southwestexpectstheunionstohaveanintenseloyaltytothecompanyandafeelingofownership.

Southwesttreatstheunionsasfullpartners,notlikeanalbatrosshangingaroundtheirorganization'sneck.

Asaresult,Southwesthasexceptionallaborrelations.Therehasonlybeenonesixdaystrikeinthecompany'shistory.AsproofofthebenefitsoftheSouthwestapproachtolaborrelations,whenoneunionattemptedtomakeoutrageousdemands,theSouthwestmanagementdidnotneedtorespond.Instead,theotherunionswhopartnerwithSouthwestsentthemessagetheywerenotpreparedtostandbyandletoneunionruinwhattheyhadallworkedsohardtobuild.

BuildRelationshipswithSuppliers

Southwestdoesnotfollowindustrypracticeandformallianceswithotherairlines.Instead,thecompanyworkscloselywithitssuppliers—anaircraftmanufacturer,airportauthoritiesandairtrafficcontrol—toformpartnershipsthatdelivertangiblebenefitsforallparties.Plus,Southwestworksveryhardtokeepitssuppliersintheloop.

50Thetraditionalapproachtosupplierrelationsistoplayoneoffagainsttheothertotryandgetabetterdeal.Mostcompaniesalsotrytoavoidrelyingtoomuchonanyonesuppliersotheydon'thavetheupperhandwhennegotiating.SouthwestAirlinesturnsthisapproachonitsheadbyforminglongtermandcloseworkingrelationshipswithitsmainsuppliers.TheadvantagesofSouthwest'sapproachinthisareaare:

■Southwestanditssupplierscanfocusonwhattheydobest—meaningthepartnershipendsupgeneratingbetteroutcomesthanwouldhavebeenachievedbyworkingindependently.

■Southwestextendsitssphereofinfluence—beyonditsowncompanyboundariesandintoitsentirevaluechain.

■Problemscanbesolvedjointly—allowingSouthwesttobenefitfromtheexpertiseofitssuppliers.

■Newopportunitiescanberespondedtoquickly—usingtheassetsofnotonlySouthwestbutalsoitssuppliers.

■Newjointbusinessinitiativescanbedeveloped—whichharnessthevisionofmorethanasingleorganization.

ThekeytomakingthisworkisthequalityofSouthwest'sownorganizationalrelationships.IfSouthwestdidn'thavestronginternalrelationshipsinplaceandleaderswithahighdegreeofcredibility,itwouldbeverydifficulttoeffectivelyformpartnershipswithkeysuppliers.