Southwest Airlines has mastered something most companies only talk about: creating a genuine culture where employees truly care. While other airlines have struggled through bankruptcies and customer service nightmares, Southwest has maintained profitability for 47 consecutive years and developed a reputation for stellar service. What makes them different isn’t their planes or routes—it’s their people and how they work together.

I recently witnessed this difference firsthand. When mechanical issues caused my Southwest flight to be delayed, the entire crew—from pilots to flight attendants—worked together seamlessly to keep passengers informed and comfortable. There was no finger-pointing, just collaboration. This wasn’t an accident or lucky hiring—it was the result of deliberate culture-building that started with Southwest’s founder Herb Kelleher.

The Southwest Formula: Culture First, Strategy Second

While most companies obsess over strategy, Southwest flipped the equation. As Herb Kelleher famously said, “Culture is what creates results, not the other way around.” This approach has proven remarkably effective—the airline has never had layoffs and continues to rank among the most admired companies in America.

What makes Southwest’s approach to culture unique is that it isn’t just a mission statement hanging on a wall. It’s built into every aspect of how they operate, from hiring to daily operations to leadership development.

The formula begins with Southwest’s core values: “Warrior Spirit, Servant’s Heart, and Fun-LUVing Attitude.” These aren’t just words—they’re the criteria by which every potential employee is evaluated. Ann Rhoades, former VP of People at Southwest, explained their hiring philosophy: “You can’t train people to care. You have to hire people who already have it in them.”

Hiring for Attitude, Not Just Aptitude

Southwest’s hiring process is notorious for focusing on personality and attitude as much as technical skills. During interviews, candidates are often asked questions like: “Tell me how you’ve used humor to defuse a tense situation” or “When was the last time you did something spontaneously fun at work?”

This approach has led to some unconventional hires. One famous story involves a group interview where candidates were asked to share something about themselves. While most gave professional answers, one woman put on her favorite hat and performed a cheerleading routine she had done in high school. She was hired immediately. As Kelleher explained, “We can train people on skills, but we can’t train them to have a good attitude.”

The airline looks for people who naturally embody their values:

• Warrior Spirit: A drive to be the best, desire to improve, and willingness to work hard
• Servant’s Heart: Putting others first, treating everyone with respect
• Fun-LUVing Attitude: Not taking yourself too seriously, enjoying work

This selective hiring pays dividends in reduced turnover and higher engagement. Southwest receives over 297,000 applications annually for approximately 7,000 positions—an acceptance rate lower than Harvard’s.

Empowering Employees Through Trust and Flexibility

What truly sets Southwest apart is how they treat employees after they’re hired. Unlike many companies that micromanage with strict policies, Southwest gives employees significant latitude to solve problems their way.

This approach was on display during my delayed flight. The gate agent didn’t need to call a supervisor to approve food vouchers for waiting passengers—she made the decision herself. When a passenger was concerned about missing a connection, a pilot personally walked over to explain alternative options.

Southwest’s employee handbook is remarkably thin compared to competitors. Instead of extensive rules, it focuses on principles and values that guide decision-making. As former CEO Gary Kelly put it: “We hire great people, we train them well, and then we let them do their jobs.”

This trust extends to how Southwest handles mistakes. Rather than punitive measures, the company views errors as learning opportunities. After a customer service issue, the question isn’t “Who’s to blame?” but “What can we learn from this?”

The Power of Removing Fear

When employees aren’t afraid of punishment for honest mistakes, they’re more likely to take initiative, make decisions quickly, and put customers first. They’re also more willing to report problems before they become major issues.

A Southwest flight attendant shared this story with me: “I once spilled a drink on a passenger’s expensive suit. Instead of worrying about getting in trouble, I focused on helping the customer. My supervisor later thanked me for handling it well and asked what we could learn from the incident.”

This fear-free environment creates a virtuous cycle where employees feel psychologically safe to be themselves, take reasonable risks, and prioritize what’s right over what’s expedient.

Leadership That Serves Instead of Commands

Southwest’s leadership philosophy centers on servant leadership—the idea that leaders exist to support frontline employees, not the other way around. This inverts the traditional corporate hierarchy where executives are seen as more important than customer-facing staff.

Herb Kelleher exemplified this approach. Despite being CEO, he would regularly help load baggage, serve snacks on flights, and work alongside employees during busy holiday periods. This wasn’t just for show—it demonstrated that no job was beneath anyone and that customer service was everyone’s responsibility.

The job of management is not to manage the employees but to give employees the tools they need to do their jobs better. – Colleen Barrett, President Emeritus, Southwest Airlines

Current leaders maintain this tradition. When Southwest faced operational challenges during the 2022 holiday season, executives were on the ground at airports, helping where needed and directly engaging with both customers and employees.

This leadership approach creates several advantages:

• Leaders gain firsthand knowledge of operational challenges
• Employees feel valued when they see executives willing to do any job
• The distance between decision-makers and frontline reality shrinks
• A culture of mutual respect develops naturally

Building Community Through Celebration and Care

Perhaps the most distinctive aspect of Southwest’s culture is how they celebrate achievements and care for employees during difficult times. The airline is famous for recognizing work anniversaries, birthdays, and personal milestones. These aren’t token gestures—they’re meaningful expressions of appreciation.

When an employee faces a personal crisis like illness or family emergency, the Southwest family rallies around them. Stories abound of employees donating sick days to colleagues in need or supervisors showing up at hospitals to support team members.

This community spirit extends to how they handle company challenges. During the COVID-19 pandemic, when air travel plummeted, Southwest avoided layoffs through voluntary time-off programs, with executives taking the largest pay cuts. This preserved both jobs and institutional knowledge while demonstrating that “we’re all in this together” wasn’t just a slogan.

The Business Case for Celebration

What some might dismiss as “soft” cultural elements actually drive hard business results. Southwest’s approach to celebration and care translates to:

• Employee turnover rates well below industry averages
• Higher productivity through increased engagement
• Reduced training costs due to better retention
• More consistent customer experiences from experienced staff
• Stronger word-of-mouth recruitment from satisfied employees

The culture creates a powerful competitive advantage that competitors have tried but failed to replicate.

Applying Southwest’s Principles to Your Organization

Not every company can—or should—copy Southwest’s specific culture. However, the principles behind their success can be adapted to organizations of any size or industry:

1. Hire for cultural fit first, technical skills second

Develop clear values that define what makes someone successful in your organization, then design interview processes that screen for these attributes. Consider unconventional interview approaches that reveal character, not just credentials.

2. Give employees meaningful autonomy

Review your policies and procedures with this question: “Does this rule help employees serve customers better or just make management’s job easier?” Eliminate unnecessary constraints and trust your team to make good decisions.

3. Redefine leadership as service

Train managers to see their role as removing obstacles for frontline employees rather than directing their every move. Create opportunities for leaders to work alongside team members regularly.

4. Create authentic recognition systems

Develop personalized ways to celebrate achievements that align with your culture. Generic “employee of the month” programs often feel hollow compared to recognition that acknowledges specific contributions.

5. Demonstrate care during difficult times

How an organization responds to employee hardship defines its culture more than any mission statement. Create systematic ways to support team members facing personal challenges.

The Bottom Line: Culture Is Your Ultimate Competitive Advantage

Southwest’s approach proves that culture isn’t just a nice-to-have—it’s a strategic imperative. In an era when products and services are increasingly commoditized, how your team works together may be your only sustainable advantage.

Building a strong culture requires patience and consistent reinforcement. It’s not a project with a completion date but an ongoing commitment. As Southwest demonstrates, the payoff in performance, customer loyalty, and employee satisfaction makes this investment one of the most valuable a company can make.

The airline industry is notoriously difficult, with thin margins and complex operations. Yet Southwest has thrived for decades with the same planes, routes, and regulatory environment as competitors. The difference has been their people and the culture that brings out their best.

That’s the real lesson from Southwest Airlines: In the long run, how you build your team matters more than any other business decision you’ll make.

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