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Are you managing like Southwest flies?

You might be doing the job of someone working for you

Of the four major airlines in the US, available flights on Southwest are somewhat different from the others. As an example, if you want to fly from Detroit to Atlanta or Salt Lake City, with Delta you often will have the choice of a non-stop flight to your destination. However, with Southwest the flight is likely to have one or more stops.

Detroit to Atlanta could easily have stops in Nashville and Birmingham.

With the management style of many owners, it is a frequently heard comment of not having enough time in the day to get things done. As we observe  such a person’s workday, we see a resemblance to a Delta flight; whatever the situation or challenge, the issue always goes to the owner for analysis and a decision. We have seen some owners making some very minor decisions. And when you look at the dollar value of that decision, you have to wonder why the owner is getting involved in what could be a $10 decision.

With other owners we see more of a Southwest flight arrangement. Many decisions do not go to the owner, but instead are being made by someone such as a supervisor or manager. Of course, at this point we expect there are those reading this thought and thinking this could never work in their business.

Perhaps we do have an owner that is present for every hour the business is open. But doesn’t this person leave to eat a meal; go to the bank; or have an appointment with the accountant or someone from the medical field?

Who is running the business at this point? Perhaps the business has someone with a key to the building. Then, take a look at the balance sheet for the business. How much inventory, at cost, is there? What is the value of the fixtures, equipment, and computers? What about the value of delivery vehicles?

That is a lot of money. And yet we have an owner that will leave the building, and in a sense trust one or more employees with all the assets of the building. However, they won’t trust that same employee to make a decision with a value of $10.

With all the events that can happen in a business over the course of the day, we can easily see why an owner is having to stay in the building for hours after the business has closed. Perhaps we see an owner taking work home with them. We can also see why the next generation does not want to work in the business because of the hours their parent(s) have deemed necessary to run the business.

We offer a second evaluation of a similar situation. It is that of an owner who has hired a full time manager. Yet, when the owner is in the building it is the owner who is making all the decisions. In effect this owner is paying a manager for a full time job, yet is only requiring them to work as a manager part time. When the owner is in the building, the manager simply has a job of being a salesperson. Nice work if you can get it.

A thought to the contrary. The owner that requires the manager to operate the business when the manager is present and when the manager is not there, the owner will make the decisions. What the owner will have with such an arrangement is a full time effort from a full time manager, and the opportunity to watch how the manager is going to operate the business.

The situation would be the same if the manager was someone working less than full time hours. The owner gets to observe, and have the confidence in knowing how the business will be run.

The comparison of a Delta flight and a Southwest flight makes an interesting comparison to our example of an owner and their manager. While Southwest is frequently observed as a model of how to run an airline, their model of flying to destinations does not work as a management style.

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This article is copyrighted by Tom Shay and Profits Plus Solutions, who can be reached at: PO Box 128, Dardanelle, AR. 72834. Phone 727-823-7205. It may be printed for an individual to read, but not duplicated or distributed without expressed written consent of the copyright owner.

 

 

 

NOVEMBER 2024
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BOOK US

With over 25 years of frontline experience Tom Shay is America's leading Small Business Management Expert. He's a "Must Have" for your next event.

Small Business

Advisories

Perhaps you have investments outside of your small business; gold, stocks, bonds or money market funds. With each you likely know what the rate of return is.

 

What about your busines? Do you know what the rate of return is for your business? You should. After all, you do not want to be the person who has just bought themselves a job.

Small Business

News

 

Top Story

We see a lot of social media with what we think is a "sympathy plea" do do business with local small businesses.

 

It is not going to work. People select where they do business based on positive reasons. We discuss what we are seeing.


Article of the Month

A timely article for the holiday season. With any business that has inventory, are you looking at sales per square foot? Are you looking to see which is the most valuable space in your business? You can increase sales by knowing which items to place where.


Book of the Month

Fix This Next by Mike Michalowicz. We love this description of the book; The biggest problem entrepreneurs have is that they do not know what their biggest problem is.

 

If you find yourself trapped between stagnating sales, staff turnover, and unhappy customers, what do you fix first? Every issue seems urgent - but there is no way to address all of them at once. The results? A business that continues to go in endless circles putting out urgent fires and prioritizing the wrong things.