Southwest has and continues to be a much admired airline and company, despite its recent economic downturn. They have been a leader on so many fronts, especially as relates to moral and empowering employees to do whats right. Yes, Southwest reinvented the airline industry. So I was surprised when I read a Bloomberg article titled, “Southwest Slows Growth as Slump Dents ‘Golden Shield.’” This was my special nugget as relates to Silent Problems.
Southwest’s losses have been due in part to its strategy of locking in fuel prices in advance, as far out as five years. Masterminded by Kelly, the contracts helped ensure profits as prices rose. They became a liability when fuel rates tumbled 65 percent last year after a July 3 record.
In December, Southwest replaced its hedging contracts to minimize future losses. It has since resumed hedging, and now goes out only as far as 24 months.
‘Dangerous Competitor’
“One of the neat things about Southwest is that they have problems, but they recognize them,” said Michael Boyd, president of aviation consulting firm Boyd Group in Evergreen, Colorado. “That means the problem is already half solved. That makes them a very dangerous competitor.”
Wow. Words of sage advice. Yes one of the goals of being a leader is to position your organization to become a “Dangerous Competitor.” And one of the best paths to becoming a “dangerous competitor” is to simply solve the problems that your organization interfaces and deals with on a daily basis. Avoid the desire to avoid. Tackle those tough problems up front. And put the problems behind without fear.
In my book, Without Warning, I present why problems are avoided, and why that’s Dangerous. Secondly, I discuss how problems that are avoided rarely fix themselves, but more importantly, how they morph and turn toxic over time. And third, why silent problems tend to be the most dangerous problems of all. Because when they finally surface, they in effect become a Without Warning Event. This is why this book is essential reading to everyone striving to become a dangerous competitor.
Are you up to the challenge and the task?
