CST 332/497 Telecommunications Management

1. CST 332/497 Telecommunications Management • Roger CleryRoosevelt University

2. NUTS Recipe for Business and Personal Success

3. My Uncle Terwilliger onthe Art of Eating PopoversMy uncle ordered popoversfrom the restaurant’s bill of fare.And, when they were served,he regarded themwith a penetrating stare…Then he spoke great Words of Wisdomas he sat there on that chair:“To eat these things,”said my uncle,“you must exercise great care.You may swallow down what’s solid…BUT…you must spit out the air!” And…as you partake of the world’s bill of fare,that’s darned good advice to follow.Do a lot of spitting out the hot air.And be careful what you swallow.—Dr. Seuss How to digest any book

4. What kind of book? • Non-fiction • Business • How to do it • A business and personnel philosophy

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

6. Southwest Airlines Reports Third Quarter Earnings of $119 Million; 54th Consecutive Quarter of Profitability 3rd Q 2004

7. Book has four main parts • A Legend Takes Off – getting started • Business Basics – the Southwest way • Doing the Extra Special – and exceptionally well • Leadership

8. 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

9. PART I A LEGEND TAKES OFFThe 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

10. PART II BASICS GONE NUTSDoing 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

11. PART III NUTS GONE BASICDoing 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

12. PART III CONTINUEDDoing the Extra Special Exceptionally Well 16. LUV - More Than Just a Ticker Symbol 17. COMPASSION FOR THE COMMUNITY - Give Back—It'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

13. PART IV THE LEGEND LIVES ON Leadership Spices It Up 21 LEADERS LEADING LEADERS 22 LEADERSHIP FROM THE INSIDE OUT 22 GO NUTS!

14. Check it out! • Check the Web http://www.southwest.com/

15. 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?

16. Nuts • Keep prices at rock bottom • Believe customers come second(who’s first) • No in flight meals just nuts! • Profitable every year 1990-1994 • Fun + sense of significance

17. 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

18. 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

19. 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

20. 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

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

22. Two types of travelers • Business • Price-sensitive leisure travelers • “nobody’s 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

23. Read Chapter 4

24. Clearly defined mission and a well thought out strategy • Make a profit • Achieve job security • Make flying affordable • Stay focused on its fundamental mission

25. High average velocity • Lots of short trips NO interline • Point-to-point NOT Hub and Spoke • Secondary airports • Midway • Love • Hobby • Don’t diversify (all 737) • Keep it simple

26. 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 isn’t 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

27. 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

28. THE PEOPLE DEPARTMENT • DON’T TAKE YOURSELF TO SERIOUSLY

29. 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

30. STREAMLINE COMMUNICATIONS • EMPLOYEES HAVE ACCESS CRITICAL INFORMATION

31. ADAPT

32. EXPECT THE UNEXPECTED

33. 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

34. 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

35. USE INTEGRITY TO FUEL TRUST • TRUST GROWS WHEN WE KEEP OUR PROMISES AND FOLLOW THROUGH ON COMMITMENTS • DON’T ACT LIKE A VICTIM. BELIEVE YOU CAN MAKE A DIFFERENCE IN EVERYTHING YOU DO.

36. DON’T 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.

37. 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.

38. END