Profit motive vs. LO LO23674

Brian Gordon (briangordon@livetolearn.com)
Thu, 16 Dec 1999 20:45:47 -0700

Replying to LO23637 --

Robert Bacal wrote:

>How DOES Southwest go about its business, and
>how does that relate to all the other companies that go about it a
>different way?

Southwest puts employees first, customers second, yet their level of
customer service is unmatched. I wish I still had the book Nuts!, which
is all about Southwest. The book lists over a dozen metrics, from safety
to ontime flights to long-term profitability, and Southwest is 1st or near
first in every category. They have extremely low turnover yet pay less
than "market value" wages. They have laid off a total of 3 people in
their entire 20+ year history, even during the horrendous slumps the
airline industry has gone through.

Now, Robert brings up a very good question - how to relate that to other
companies that operate a different way. Here are some possibilities:
- Wait for businesses like Southwest to expand sufficiently that their
presence forces or persuades other companies to change their ways to
survive (role model).
- Through books like Nuts!, which was probably reasonably well read in
the airline industry.
- Through management research and books in general, which, I hope advance
more effective ways of doing business, including more humane ways of
treating people.
- Through listservs like this one, which can persuade those in a position
to influence management that there are more effective ways...

Of course, I cannot force anyone to change their beliefs, so if the
management of a particular business allows toxic waste dumping, treats
employees badly, and so on, there are laws to ensure certain minimum
standards. I can certainly persuade, influence, and role model, as can we
all.

Brian

briangordon@livetolearn.com
Live to Learn
www.livetolearn.com

-- 

"Brian Gordon" <briangordon@livetolearn.com>

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