6142009

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CST 332/497 Telecommunications Management

• Roger CleryRoosevelt University

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NUTS Recipe for Business and Personal Success
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How to digest any book

• My Uncle Terwilliger onthe Art of Eating
  Popovers My uncle ordered popoversfrom the
  restaurants bill of fare.And, when they were
  served,he regarded themwith a penetrating
  stareThen he spoke great Words of Wisdomas he
  sat there on that chairTo eat these
  things,said my uncle,you must exercise great
  care.You may swallow down whats solidBUTyou
  must spit out the air! 

• Andas you partake of the worlds bill of
  fare,thats darned good advice to follow.Do a
  lot of spitting out the hot air.And be careful
  what you swallow.Dr. Seuss

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What kind of book?

• Non-fiction
• Business
• How to do it
• A business and personnel philosophy

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CONTENTS

• About the Authors Foreword by Tom Peters
  Prologue 1. NUTS? ... YOU DECIDE

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Southwest Airlines Reports Third Quarter Earnings
of 119 Million 54th Consecutive Quarter of
Profitability

• 3rd Q 2004

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Book has four main parts

• A Legend Takes Off getting started
• Business Basics the Southwest way
• Doing the Extra Special and exceptionally well
• Leadership

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Players

• Herb Kelleher Chairman and CEO
• Rollin King A person with an idea
• Lamar Muse - First President
• Wesley West Man of Money
• The over-the-hill gang

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PART I A LEGEND TAKES OFF The Southwest Spirit
Is Born

• 2. GOLIATH MEETS DAVID - The Battle to Get off
  the Ground3. THE BATTLE HEATS UP - Innovations
  Forged in the Fires of Competition4. A MAVERICK
  EMERGES - The Creation of a Corporate Personality

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PART II BASICS GONE NUTS Doing Business Basics
with a Southwest Twist

• 5. FLYING IN THE FACE OF CONFORMITY - Dare to Be
  Disciplined, Reap the Rewards
• 6. "PROFESSIONALS" NEED NOT APPLY - Hire for
  Attitude, Train for Skills
• 7. KILL THE BUREAUCRACY - Think Small, Act Fast
• 8. ACT LIKE AN OWNER - Ask Questions, Think
  Results
• 9. LEARN LIKE CRAZY - Stay Fresh, Stretch to Grow
• 10. DON'T FEAR FAILURE - Be Creative, Color
  outside the Lines

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PART III NUTS GONE BASIC Doing the Extra
Special Exceptionally Well

• 11. ONE GREAT BIG FAMILY - Create a Legendary
  Culture
• 12. KEEPING THE SPIRIT ALIVE - Preserve What You
  Value
• 13. THE ART OF CELEBRATING MILESTONES - Revel in
  Your Accomplishments
• 14. CELEBRATING PEOPLE WITH BIG HEARTS - Honor
  Those You Love
• 15. STILL NUTS AFTER ALL THESE YEARS - Make Work
  Fun

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PART III CONTINUED Doing the Extra Special
Exceptionally Well

• 16. LUV - More Than Just a Ticker Symbol
• 17. COMPASSION FOR THE COMMUNITY - Give BackIt's
  the Right Thing to Do
• 18. UNCONVENTIONAL ADVERTISING - Bending the
  Rules to Break a Great Story
• 19. CUSTOMERS COME SECOND - And Still Get Great
  Service
• 20. EMPLOYEES COME FIRST - Great Service Begins
  at Home

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PART IV THE LEGEND LIVES ON Leadership Spices
It Up

• 21 LEADERS LEADING LEADERS
• 22 LEADERSHIP FROM THE INSIDE OUT
• 22 GO NUTS!

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Check it out!

• Check the Web http//www.southwest.com/

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The story of Southwest Airlines

• Can a company succeed in an industry where others
  are failing?
• What is an Egalitarian Spirit?
• What is iconoclastic thinking?

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Nuts

• Keep prices at rock bottom
• Believe customers come second(whos first)
• No in flight meals just nuts!
• Profitable every year 1990-1994
• Fun sense of significance

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NUTS

• Profitable every year since 1973
• Steady growth
• Conservative balance sheet
• 58 leverage
• Stock at 20 times earnings
• Lowest fairs
• Market dominance
• 60 in non-stop city pairs

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Nuts

• Most productive workforce
• Low turnover in top 100 best companies to work
  for
• No Furloughs
• Highest customer service ratings
• Cancels fewer flights
• Youngest fleet Best safety record
• Most emulated

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Southwest has created democracy in the airline
business

• Politics is the business of protecting peoples
  freedom
• Changed the business environment in America
• Crusades with an egalitarian spirit

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Legendary beginning

• (like MCI)
• Dallas, San Antonio, Houston
• TAC approved, Braniff et al Litigate
• Lamar Muse CEO and the over-the-hill gang
• Hobby Airport
• DFW deal

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The Battle

• Courtrooms
• In the air
• On the tarmac
• In customer service
• New travel with low fares and superior service

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Two types of travelers

• Business
• Price-sensitive leisure travelers
• nobodys going to soot Southwest out of the sky
  for a lousy 13
• The ten-minute turn
• Operate the four-airline schedule with just three
  plane.
• Think creatively, to risk intelligently

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Read Chapter 4
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Clearly defined mission and a well thought out
strategy

• Make a profit
• Achieve job security
• Make flying affordable
• Stay focused on its fundamental mission

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High average velocity

• Lots of short trips NO interline
• Point-to-point NOT Hub and Spoke
• Secondary airports
• Midway
• Love
• Hobby
• Dont diversify (all 737)
• Keep it simple

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Resist the temptation to be something your not.

• Live within your budget
• Manage in good times for the bad
• Define your own targets
• Keep things simple
• Bigger isnt always better
• At the peak of success, look for things you can
  do even better
• Be humble Success is hardly ever all your own
  doing and is rarely irreversible

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CHAPTER 6

• HIRE FOR SPIRIT,SPUNK AND ENTHUSIAM
• TRAIN FOR SKILL
• QUITPRETENDING. GIVE YOURSELF THE FREEDOM TO BE
  YOURSELF
• TREAT EVERYONE WITH KINDNESS AND RESPECT
• DO WHATEVER IT TAKES. REMEMBER, THERE IS VERY
  LITTLE TRAFFIC IN THE EXTRA MILE

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THE PEOPLE DEPARTMENT

• DONT TAKE YOURSELF TO SERIOUSLY

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CHAPTER 7 KILL THE BUREAUCRACY

• THINK SMALL, ACT FAST
• STAY LEAN NO MORE THAN 4 LAYERS OF MGT
• SIMPLIFY OPERATIONS WITHOUT ELIMINATING EMPLOYEES
• ONLY SELF-CONFIDENT PEOPLE CAN SIMPLIFY
• A THOUSAND LITTLE THINGS THAT HELP PEOPLE SOLVE
  THE PROBLEM OF HOW TO TURN THE PLANES FASTER

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STREAMLINE COMMUNICATIONS

• EMPLOYEES HAVE ACCESS CRITICAL INFORMATION

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ADAPT
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EXPECT THE UNEXPECTED
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PROMOTE ACTION AND FLEXIBILITY

• APPLY COMMON SENSE NOT RULES
• BE QUICK - STOP ANALYZING , START TAKING ACTION
• SUCCESS IS NEVER FINAL - IT MUST BE EARNED OVER
  AND OVER AGAIN

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CHAPTER 8 ACT LIKE AN OWNER

• ASK QUESTIONS, THINK RESULTS
• NON-OWNER ADAPT TO PERCEPTIONS OF SUPERIORS
• OWNERS FOCUS ON RESULTS
• WITH OWNERSHIP COMES RESPONSIBILITY AND
  ACCOUNTABILITY
• COMMUNICATE, COMMUNICATE, AND THEN COMMUNICATE
• CONSISTENCY, SIMPLICITY AND REPETITION

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USE INTEGRITY TO FUEL TRUST

• TRUST GROWS WHEN WE KEEP OUR PROMISES AND FOLLOW
  THROUGH ON COMMITMENTS
• DONT ACT LIKE A VICTIM. BELIEVE YOU CAN MAKE A
  DIFFERENCE IN EVERYTHING YOU DO.

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DONT FEAR FAILURE

• Blaze new trails. Don't rest on others' laurels.
• Ask yourself how you can do it before you ask
  others how it's been done.
• Become a "risk doctor" help people recover from
  mistakes by accepting, encouraging, and laughing.
• Stand behind your commitments and those of your
  people.
• Own mistakes, share mistakes, learn from
  mistakes, and move on.
• Play to win!
• Make your life and work adventurous.

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ATA Chapter 11 Oct, 27 2004

• Southwest Airlines to Add Sixteen Flights at
  Chicago Midway Airport Carrier Will Grow to 161
  Departures From Convenient Chicago Airport
• DALLAS, Nov. 1 /PRNewswire-FirstCall/ --
  Southwest Airlines (NYSE LUV) Chief Executive
  Officer, Gary Kelly, announced today that the low
  fare carrier would add 16 nonstop flights from
  Chicago Midway Airport to 13 existing nonstop
  markets. This additional nonstop service to
  Orlando, Fort Lauderdale/Hollywood, Manchester,
  Las Vegas, Raleigh-Durham, Tampa Bay, Los Angeles
  International, Oakland, Phoenix, Seattle,
  Providence, Philadelphia, and Columbus will begin
  in the first quarter of 2005.

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END