South West Airlines at Baltimore

538 Words3 Pages
Case: Southwest Airlines in Baltimore Agenda: Pre-class submission Case requirements: 1) Identify the key attributes of the 7-S' of McKinsey's framework for Southwest Airlines (SWA) in 2001/2000 (350 words). Comment on the alignment of the 7-S (50 words). SN | Element of 7S | Key Attributes for Southwest Airlines | Alignment | 1 | Strategy | 1. Cost Leadership based on Operational Efficiency 2. Customer Focus: Market Driven Flight Schedules and Competitor Definition: Car and Bus viewed as chief competition (Southwest Effect) | Yes | 2 | Structure | 1. Decentralization & Empowerment at the station | Yes | 3 | System | 1. Monitoring on Turnaround time, delays, mishandled baggage, customer complaints and overtime 2. Decentralized Process Improvement Decisions 3. But Compensation is not market competitive – Demands on Southwest employees are more but package is less (reference: Exhibit 11) | Yes But not on compensation – rewards are also an integral control system for encouraging desired behaviours | 4 | Shared Values | 1. Extraordinary Customer Service 2. Team Work & Coordination 3. Family, Fun & Freedom 4. Empowerment | Yes | 5 | Style | 1. Leadership provides Enabling Environment (“We want people to ask for forgiveness, not for permission”) 2. Participative Decision Making (“Process Improvement at Southwest was both formal and informal led by employee suggestions … Often we have found solutions while talking casually in the hallway”) | Yes | 6 | Staff | 1. Earlier 179 short (including 80 short on ramp) – now improved through an intense focus on hiring and control 2. Tight labour market in Baltimore and therefore, employees had to work overtime. 3. Challenges with employee retention. Average tenure for Southwest: 75 months but for Baltimore: 27 months 4. Encouraged switching | Not completely
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