Effective Management at Southwest Airlines

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Presentation for FAU Fall 2010 Introduction to Management and Organization. College of Business. Dr. Barry Axe.

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  • http://www.iata.org/whatwedo/economics/Pages/index.aspx
  • Nuts! And Southwest Fact Sheet.
  • Nuts!
  • CEO – Gary KellyCFO – Laura WrightCOO – Mike Van de Ven
  • Video: 0:30 to 1 Minute.
  • Kathleen Wayton – VP Strategy and Change Leadership – Implementing Changes in Strategy.Bob Myrben – Fuel ManagementGreg Crum – Director of Operations
  • Effective Management at Southwest Airlines

    1. 1.
    2. 2. Team Introduction<br />Sandra<br />Rachel<br />Justin<br />Blaise<br />Michael<br />Southwest Airlines Case Study<br />9-2-2010, Slide 2<br />Presenter: Michael Hammer<br />
    3. 3. Southwest Airlines Case Study<br />9-2-2010, Slide 3<br />Today’s Flight Plan<br />Takeoff Trivia!<br />Overview of Southwest<br />Herb Kelleher – Founder of Southwest<br />SWA Management Structure<br />SWA Top Management <br />SWA Middle Management<br />SWA Lower Management<br />SWA Market Update<br />Presenter: Michael Hammer<br />
    4. 4. Takeoff Trivia!<br />What is at the center of the Southwest logo?<br />What is the stock ticker for Southwest Airlines?<br />Southwest Airlines Case Study<br />9-2-2010, Slide 4<br />Presenter: Michael Hammer<br />
    5. 5. Company Overview<br />Southwest Airlines<br />Southwest Airlines Case Study<br />9-2-2010, Slide 5<br />Presenter: Michael Hammer<br />
    6. 6. Basic Facts<br />3,300 Flights per day<br />35,000 Employees<br />69 Destinations in 35 States<br />~10.5 Billion Revenue/year<br />Southwest Airlines Case Study<br />9-2-2010, Slide 6<br />Southwest Airlines. (2010, May 23). Southwest Airlines Fact Sheet. Retrieved September 1st, 2010, from Southwest.com: http://www.southwest.com/about_swa/press/factsheet.html<br />Presenter: Michael Hammer<br />
    7. 7. Southwest Airlines Case Study<br />9-2-2010, Slide 7<br />Southwest vs. Airline IndustryIATA Data as of 2008<br />Volvo Aero Services. (2009, January 5th). Southwest vs Airline Industry comparison. Boca Raton, FL, USA.<br />Presenter: Michael Hammer<br />
    8. 8. Doing Business the SWA Way<br />Southwest Airlines Case Study<br />9-2-2010, Slide 8<br />Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc.<br />Presenter: Michael Hammer<br />
    9. 9. Herb Kelleher<br />Southwest’s larger than life founder..…<br />Southwest Airlines Case Study<br />9-2-2010, Slide 9<br />Presenter: Blaise<br />
    10. 10. Who is this guy?<br />Go Get-um Attitude<br />Hands-off Management Style<br />Eye for Efficiency<br />And the Eye of the Tiger?<br />Seriously, that’s him in the picture…<br />Southwest Airlines Case Study<br />9-2-2010, Slide 10<br />Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc.<br />Presenter: Blaise<br />
    11. 11. The Herb Napkin<br />Southwest Airlines Case Study<br />9-2-2010, Slide 11<br />Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc.<br />Presenter: Blaise<br />
    12. 12. The Malice in Dallas<br />Southwest Airlines Case Study<br />9-2-2010, Slide 12<br />Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc.<br />Presenter: Blaise<br />
    13. 13. Management Structure<br />Southwest’s<br />Southwest Airlines Case Study<br />9-2-2010, Slide 13<br />Presenter: Michael Hammer<br />
    14. 14. Southwest Airlines Case Study<br />9-2-2010, Slide 14<br />Upper Management<br />Middle Management<br />Lower Management<br />Southwest Airlines. (2010, July). Southwest Leadership & Organizational Chart. Dallas, TX, USA.<br />
    15. 15. Management Processes, Roles and Skills at Southwest<br />Southwest Airlines Case Study<br />9-2-2010, Slide 15<br />Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture].<br />Presenter: Michael Hammer<br />
    16. 16. Top Management<br />Southwest’s<br />Southwest Airlines Case Study<br />9-2-2010, Slide 16<br />Presenter: Justin Boone<br />
    17. 17. Southwest Airlines Case Study<br />9-2-2010, Slide 17<br />Southwest Airlines. (2010, July). Southwest Leadership & Organizational Chart. Dallas, TX, USA.<br />
    18. 18. Top Management’s Priorities<br />Southwest Airlines Case Study<br />9-2-2010, Slide 18<br />Planning<br />Where are we going?<br />Decisions<br />How do we get there?<br />Company Image<br />What should people think of us?<br />Presenter: Justin Boone<br />
    19. 19. Four Management Functions in SWA Top Management<br />Southwest Airlines Case Study<br />9-2-2010, Slide 19<br />Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture].<br />Presenter: Justin Boone<br />
    20. 20. Top Management Decisions<br />Southwest Airlines Case Study<br />9-2-2010, Slide 20<br />Nashville Business Journal. (2007, November 9th). Southwest introduces 'Business Select' tickets. Retrieved August 30th, 2010, from BizJournals.com: http://www.bizjournals.com/nashville/stories/2007/11/05/daily31.html<br />Presenter: Justin Boone<br />
    21. 21. Middle Management<br />Southwest’s<br />Southwest Airlines Case Study<br />9-2-2010, Slide 21<br />Presenter: Sandra Whitler<br />
    22. 22. Southwest Airlines Case Study<br />9-2-2010, Slide 22<br />Southwest Airlines. (2010, July). Southwest Leadership & Organizational Chart. Dallas, TX, USA.<br />
    23. 23. Four Management Functions in SWA Middle Management<br />Southwest Airlines Case Study<br />9-2-2010, Slide 23<br />Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture].<br />Presenter: Sandra Whitler<br />
    24. 24. Priority Skills for SWA Middle Managers<br />Southwest Airlines Case Study<br />9-2-2010, Slide 24<br />Execute Plans<br />Analyze Data<br />Provide Advice<br />Motivate<br />Inform<br />Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture].<br />Presenter: Sandra Whitler<br />
    25. 25. Successful Middle Management at Southwest<br />Jeff Martin<br />Ordered to increase fleet efficiency.<br />Researched Software Upgrades<br />New Software Purchased<br />Saves Fuel<br />Saves Time<br />Fewer Delays<br />Southwest Airlines Case Study<br />9-2-2010, Slide 25<br />McCartney, S. (2010, April 1st). A Radical Cockpit Upgrade Southwest Fliers Will Feel. Retrieved August 30th, 2010, from Wall Street Journal Online: http://online.wsj.com/article/NA_WSJ_PUB:SB10001424052702303338304575155813404043090.html<br />Presenter: Sandra Whitler<br />
    26. 26. Lower Management<br />Southwest’s<br />Southwest Airlines Case Study<br />9-2-2010, Slide 26<br />Presenter: Rachel Navarro<br />
    27. 27. Lower Managers<br />Ramp Supervisor<br />Head Mechanic<br />Lead Flight Attendant<br />Customer Service Supervisor<br />Dispatch Supervisor<br />Southwest Airlines Case Study<br />9-2-2010, Slide 27<br />Freiberg, K. L., & Freiberg, J. A. (1996). NUTS! Austin, TX: Bard Press, Inc.<br />Presenter: Rachel Navarro<br />
    28. 28. Four Management Functions in SWA Lower Management<br />Southwest Airlines Case Study<br />9-2-2010, Slide 28<br />Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture].<br />Presenter: Rachel Navarro<br />
    29. 29. Priority Skills for SWA Lower Managers<br />Southwest Airlines Case Study<br />9-2-2010, Slide 29<br />Interpersonal<br />Technical<br />Responsibility<br />Leadership<br />Emergency Decision Making<br />Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture].<br />Presenter: Rachel Navarro<br />
    30. 30. Successful Lower Management at Southwest<br />Karen Sand<br />Customer Service Supervisor<br />Multitasking<br />Interpersonal Skills<br />Technical Skills<br />Southwest Airlines Case Study<br />9-2-2010, Slide 30<br />Learning, C. (Producer), & Learning, C. (Director). (2010). Effective Management Pilots Southwest Airlines [Motion Picture].<br />Presenter: Rachel Navarro<br />
    31. 31. Market Update<br />Southwest<br />Southwest Airlines Case Study<br />9-2-2010, Slide 31<br />Presenter: Michael Hammer<br />
    32. 32. What happened to airlines in 2010?<br />Air Travel is recovering.<br />Some competitors (Frontier, Easy Jet) did not survive the recession.<br />Southwest Airlines Case Study<br />9-2-2010, Slide 32<br />IATA. (2010, July 28th). International Traffic Charts. Retrieved August 30th, 2010, from IATA.org: http://www.iata.org/whatwedo/Documents/economics/InternationalTrafficCharts.pdf<br />Presenter: Michael Hammer<br />
    33. 33. The New Competitors<br />Jet Blue<br />Almost as Large<br />Inexpensive<br />Bags Fly Free<br />Virgin America<br />Inexpensive<br />Luxury Feel<br />Premium Options<br />Seats, Food, Drink, Bags Free!<br />Flight Blogger Tweet – “SWA feels like a bus compared to the personal limo of VA”<br />Southwest Airlines Case Study<br />9-2-2010, Slide 33<br />Associated Press. (2009, August 16). Southwest vs. JetBlue: Battle for Boston begins. Retrieved August 30th, 2010, from eTurboNews.com: http://www.eturbonews.com/11084/southwest-vs-jetblue-battle-boston-begins<br />Presenter: Michael Hammer<br />
    34. 34. What is Southwest trying to do?<br />Resist the urge to rapidly expand.<br />Capped Fleet Growth<br />Set a goal of 15% ROI (Pre-Tax).<br />Research new revenue sources.<br />Paid food selection.<br />Inflight entertainment<br />Southwest Airlines Case Study<br />9-2-2010, Slide 34<br />Associated Press. (2009, August 16). Southwest vs. JetBlue: Battle for Boston begins. Retrieved August 30th, 2010, from eTurboNews.com: http://www.eturbonews.com/11084/southwest-vs-jetblue-battle-boston-begins<br />Presenter: Michael Hammer<br />
    35. 35. Conclusions<br />Effective Management is always a Southwest advantage.<br />SWA is more effective than the newcomers.<br />In 2020 Management Students will still talk about Southwest.<br />Southwest Airlines Case Study<br />9-2-2010, Slide 35<br />Presenter: Michael Hammer<br />
    36. 36. SWA Culture in Action<br />Southwest Airlines Case Study<br />9-2-2010, Slide 36<br />Presenter: Michael Hammer<br />
    37. 37. Related items<br />Southwest Airlines Case Study<br />9-2-2010, Slide 37<br />
    38. 38. Download this presentation online.<br />http://www.slideshare.net/Slash621/southwest-group-presentation<br />Southwest Airlines Case Study<br />9-2-2010, Slide 38<br />

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