Southwest

Strategic Concepts & Mechanics

Strategic ManeuverShape the Market Before You Enter It

Mental ModelTrust Is the Bandwidth of Implicit Communication

Structural VulnerabilityBad News Is the Only Useful Intelligence

Implementation TacticSchwerpunkt Over Vision Statement

Strategic PatternAmbiguity Outperforms Deception

Strategic ManeuverEngage with the Expected, Win with the Surprise

Decision FrameworkBe the Customer Literally

Mental ModelReorientation Speed Beats Execution Speed

Identity & CultureGardens Not Machines

Operating PrincipleDirections Beat Goals

Competitive AdvantageGroup Feeling as the Ruling Factor

Strategic ManeuverReconnaissance Pull Over Central Planning

Strategic ManeuverDelight Is the Ch'i of Business

Implementation TacticFingerspitzengefühl Through Decades, Not Seminars

Mental ModelIf You Can Be Modeled, You Have No Strategy

Strategic PatternToyota as Maneuver Warfare in Manufacturing

Mental ModelFog Grows Inside the Slower Organization

Implementation TacticPromote the Doers, Remove the Resisters — One Night

Competitive AdvantageSnowmobile Building as Innovation

Operating PrincipleOrientation as the Schwerpunkt

Implementation TacticThe Mission Contract Replaces Over-Control

Signature MoveIverson: Four Layers Max, Then Stop Building Hierarchy

Cornerstone MoveIncentives as Architecture, Not Decoration

Strategic PatternStay Half a Step Ahead, Not a Mile

Capital StrategyCash Reinvested for Domination Not Dividends

Cornerstone MoveDominate One Small Thing Before Growing

Signature MoveSchwab: Split Half the Profit and Watch It Multiply

Risk DoctrineTen-Million-Dollar Education, Not Termination

Signature MoveLemann's 3G: Buy the Brewer, Install the Meritocracy

Signature MovePatterson: Educate the Customer Into Needing You

Cornerstone MoveDecentralize Everything Except Culture

Signature MovePrice: Lowest Price as Moral Crusade, Not Marketing Tactic

Risk DoctrineCalculated Bullets Before Cannonballs

Competitive AdvantageCulture as the Only Uncopiable Moat

Signature MoveKelleher: Distill Strategy to Doing, Not Planning

Cornerstone MovePromote From the Ranks, Never Import Generals

Identity & CulturePermanent Dissatisfaction as Fuel

Primary Evidence

"Southwest, as we have seen, does put the emphasis on tending the culture, and its average pre-tax return on revenue since 1979 has been 12.7%, compared to the Big 3’s 0.6%153 If adopting this culture and strategy is indeed the Schwerpunkt for your organization, then like a military commander, that is where you should place yourself. Ordering your subordinates to learn Boyd’s strategy, without making it the focus of your own efforts, will rightly be viewed as the latest flavor-of-the-month sham."

Source:Certain to Win

"you’re a high roller with some airline, call your 1-800 telephone number to make a reservation. Try your web site. Stand in line to check in. Check a suitcase. Fly coach. Try to change a reservation. What do you think? Excited by your own stuff? Any sign of magical pizzazz there? Any reason anybody with a choice would do it again? And while you’re back there in coach, talk to people. Don’t limit your observations to fishing for what’s wrong, since that’s a shortfall in meeting their expectations. Important stuff, but cheng, not ch’i. You have to be much more subtle and creative. Somewhere there’s a spark, some “Eureka!” that will cause people to choose you over Continental or even Southwest and pay more to do it."

Source:Certain to Win

"Herb Kelleher at Southwest was famously quoted as saying he had predicted eleven out of the last three recessions."

Source:Intelligent Fanatics Project

Appears In Volumes

Certain to Win Intelligent Fanatics Project