Staying Competitive in Turbulant Times

There is no question we are living in volatile times. Over the last month we have seen a near meltdown in global stock markets and credit markets. It is becoming more and more difficult to conduct “normal” business. I have yet to talk with someone who has not been impacted in some way, by the financial turn-down. Some have prospered and taken advantage of the opportunities lurking, while others have taken heavy hits, with few alternatives other than consolidating.

Over the years, I have been one of the biggest advocates and believers of “the Adaptive Leader.” For years, I have coached many of my clients to become more adaptable in their leadership, to address the constant increase of speed, complexity and volatility of doing business.

Last week as I continued to think about Jim Collin’s list of Good to Great companies, I thought how many lacked adaptability, which was apparent over the last few months. Contrary to this, there is one company in particular which I think has shown incredible adaptability over the years and especially since oil prices hit $140 a barrel earlier this summer.

More than most, Southwest Airlines have realized that the market is reforming from the bottom up. Their target market wants more value for the price, rather than added on “hidden charges” such as now charging $15 for each checked piece of luggage.
In order to keep their planes full and flying, they had to keep prices low, rather than increase them to reflect the rise of fuel prices. Instead what Southwest did was increase their speed and efficiency in order to raise their volume. If you have ever flown Southwest, you might have noticed how incredibly fast their systems are. They make the whole process of taking a customer so streamlined, from getting their ticket and boarding pass, to arriving at their destination. They have created a 20-30 minute turnaround from when a customer lands, to when they leave again. That is their secret and it allows them to service 4 flights for every 3 flights of their customers.

I am not necessarily arguing that everyone should fly Southwest, because as most of us know flying “cattle car” is not always appealing. But my point is that Southwest is adapting to the marketplace. They put more people in the air, and create a better price to value equation. It is clear that they are adaptable and in doing so finding the highest leverage. As I continue to argue, those who are adaptable will continue to find successes in these volatile times.