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The success of organizations like Southwest Airlines and Nordstrom was not achieved with a single thrust; instead, they kept pressing the attack as they invaded each successive market. |
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Southwest Airlines developed systems for turning around planes faster and having crews perform multiple tasks. It kept costs low and innovated low-priced fare structures. Today, there are only two kinds of airports: those served by Southwest and those who wish they were on a Southwest route. |
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Nordstrom developed a customer service philosophy and high-end brand presentation that has made it the envy of the department store industry. In an industry where it was difficult to find a clerk to take your money, Nordstrom made customer service a hallmark. While new discount stores flourished with low-end products, Nordstrom continued its offensive of high-quality and value merchandise. |
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Several key ingredients are common to all growing organizations: |
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Customer Focus: It matters not whether you are in a high-end business category like Nordstrom or more value oriented like Southwest; both are rated high by customers because they have created systems that deliver perceived value. |
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Selection: The most important contributor to the success of any organization is the ability to hire good people. I spent hours interviewing Phillip Fulmer, head football coach at the University of Tennessee, as I assisted with his book Legacy of Winning. Fulmer has one of the top winning records in college football and as such can attract good people. However, he doesn't sit around waiting for them to knock on the door; he has a well organized systematic campaign to analyze candidates and encourage the best to sign up on his teamand so does Microsoft. |
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Training: Hiring good people alone is not enough. Whether coaching a sports team or leading a business venture, you must be able to train them to be the very best. Extensive training on an ongoing basis is the hallmark of premier organizations where learning sessions are highly interactive. |
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The pressure necessary for success is applied by good people working within good systems that empower them to use their skills. |
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