By communicating that only five customers per flight made the difference between profit and loss, Southwest's management made the abstract concept of profitability tangible for its 15,000+ employees. This showed every employee that their interactions directly impacted the bottom line.
Related Insights
Instead of pitching the abstract value of 'delight,' connect it to concrete business objectives. By asking a founder, 'Are users proud enough to recommend our product?' the focus shifted from a vague concept to a clear driver of word-of-mouth growth, making it easier to get buy-in.
When a large competitor matched Southwest's $13 discounted fare, Southwest countered by offering customers a choice: the $13 fare, or the original $26 fare with a complimentary bottle of liquor. Most business travelers chose the higher fare, turning a potential loss into a profitable marketing coup.
The most critical insights for Chili's revival came not from consumers, but from its 70,000 employees. Their feedback on operational friction and guest interactions directly fueled simplification, menu changes, and investments that improved the customer experience.
Target's '10-4' customer service rule originated at Walmart, which went beyond just stating the rule. Walmart installed a 10-foot-long sticker on the floor as a physical measuring tool for employees. This demonstrates a powerful management principle: turning abstract cultural values into concrete, tangible, and measurable actions in the physical workspace.
Your ability to serve clients depends on your internal team. Sales pro Steve Munn built strong relationships with his distribution center staff, treating them with respect ("more with sugar than you do with salt"). This rapport ensured they would go the extra mile for his clients during critical moments.
To engage employees in seemingly mundane roles, like cleaning factory tanks, leadership must clearly connect their specific task to the company's success. The Novonesis CEO emphasizes that explaining this critical importance and frequently expressing simple gratitude is key to maintaining a motivated workforce.
Contrary to a shareholder-first dogma, these leaders operate on an employee-first principle. They believe that well-treated, empowered employees provide superior customer service. This creates loyal customers, which drives sustainable profits and ultimately delivers superior long-term returns for shareholders.
To maintain strong employee engagement, leadership explicitly connects every role—even seemingly mundane ones like cleaning fermentation tanks—to the company's high-level purpose. This ensures every employee understands their specific contribution to enabling a healthier planet.
To demonstrate value, platform teams must explicitly connect contributions to top-line business metrics. Use internal newsletters to show how a new service directly enabled an uplift in a key metric like Net Promoter Score, making the platform's ROI undeniable.
A significant portion of profitability issues stems from serving "bad money" customers who are unprofitable or break-even. Firing them eliminates direct losses and frees up time, energy, and resources to better serve your best clients, leading to a direct and immediate improvement in the bottom-line and team morale.
