It’s So Simple But Not Always Easy How Southwest Airlines Keeps its Employees Flying High

Our History Founded in 1971 Profitable for 34 consecutive years Serve 63 cities nationwide More than 32,000 Employees th Anniversary Largest airline in U.S. in terms of Customers carried

Southwest received 284,827 resumes and hired 3,363 new Employees in In 2006 Southwest served 93.8 million bags of peanuts Southwest has 1,133 married couples. In other words, 2,266 Southwest Employees have spouses who also work for the Company. The airline is approximately 87 percent unionized. Character Building

For the eleventh year in a row, FORTUNE magazine recognized Southwest Airlines in its annual survey of corporate reputations. Among all industries in 2007, FORTUNE lists Southwest Airlines as the number five most admired corporation.

It’s About the Culture What is Culture? Defined as the set of shared attitudes, values, goals, and practices that characterizes a company or corporation

Southwest Values Fun Family Egalitarianism Simplicity Low cost

Golden Rule Treat others the way you want to be treated Answer every letter Call back Bend the rules Do the right thing Find ways to say yes Treat with respect

Live the Southwest Way 1. Have a Servant’s Heart

A passion for Customer Service Internal and External Serve Others

Share the Spirit Ronald McDonald House Charities LUV Classic Adopt-A-Pilot Make-A-Wish

Internal Customer Care Cards Food Baskets Party-in-a-Box Flowers Gifts Phone Calls

Live the Southwest Way 2. Have a Warrior Spirit

We were born of innovation Employees are not afraid to innovate because they trust Innovate

Fight to be the Best The 10-minute turn The $13 Fare War Wright Fight

Rally Cry Our People work best when working towards a common goal –Operation Kick Tail –Gimme Five –September 11th

Live the Southwest Way 3. Have a Fun-LUVing Attitude

Starts at the Top Our Collective Heart Malice in Dallas

“At Southwest Airlines, we take the competition seriously, but we don’t take ourselves seriously”

Company Celebrations Spirit Parties Chili Cookoff PHOTO OF PARTY Company Anniversaries Halloween

Party Like It’s 2007

Okay, Southwest has Culture, but what do we get?

Act/Think Like Owners of the Company Profit Sharing 401(K) Listen to Employees’ Ideas Started the first profit-sharing plan in the U.S. airline industry in Through this plan and others, Employees own at least 10 percent of the Company stock.

Create & Innovate Make a Positive Difference Work Hard & Have Fun Get out of Town Learn & Grow Stay Connected Get Healthy Be Wealthy Freedom

Free to be ourselves Free to do the right thing Free to make our Customers laugh and smile Let it Ring

36 Years cities, 1 state63 cities, 32 states 18 daily flights/day 3,200+ flights per day 3 airplanes483 airplanes 195 EmployeesMore than 32,000 Employees

It’s All About the Employees

The Customer Isn’t Always Right Value your Employees Believe in them and show you care Broaden their knowledge

Communicate Who are you? Do your Employees know? Do you have a consistent message?

Knowledge is Power Message to the Field LUV LINES Departmental Publications Days in the Field/Walk A Mile in my Shoes Weekly CEO Message – Shout Outs

Ambassadors As we grow, our philosophy doesn’t change, just our tactics –Turning Southwest fans into fanatics –Creating Customer evangelists for the brand –Nurturing the trust built among the Employees (we are a family)

Culture Committee 100+ people across the Company representing all job functions, levels of leadership, and tenure Group’s goal is to: Help create the Southwest Spirit and Culture where needed To enrich it and make it better where it already exists To liven it up in places where it might be “floundering”

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