By Gale Mote / Guest Editorial
Growth is the goal! Entrepreneurs, joint ventures and new business units are measured and rewarded for their ability to meet and exceed performance targets. Increasing sales, gaining market share, developing loyal customers and building a strong, respected brand are all necessary achievements for fast-growing companies. Of course, keeping a close eye on cash flow and profits are imperative as well.
Managing a fast-growing business is not for the faint of heart. Managers need to surround themselves with the right talent and ensure people are in positions to maximize their strengths, contributing the very best they have to give. Senior management must lead with personal humility and a dogged determination. Some start-up companies burn fast and burn out.
Others are able to keep their light shining for many years. An example is Southwest Airlines, ready to celebrate 40 years of profitability, job security (there has never been a furlough or downsizing within the company) and a high-performance work culture.
I recently had the opportunity to meet Colleen Barrett, president emeritus of Southwest Airlines, at the International Conference of the American Society of Training and Development in Chicago.
She attributes the success of the company to leading with “LUV.” Southwest has been able to sustain positive growth because of its strong vision (democratizing air travel and giving everyone the freedom to fly safely at a reasonable cost), core values (warrior spirit, servant heart and fun-loving attitudes), clear strategy (service and quick turnarounds) and its family-oriented culture that puts employees before customers and profits. Southwest Airlines hires for attitude, gives people the autonomy to use their unique gifts and celebrates the nobility of serving others, both internal and external.
All managers in a fast-growing company would be wise to learn from Southwest’s success. Here are five core practices to consider:
- Pay attention to the vision of the company and don’t forget what the business is all about. The owners of the Container Store set a vision to become the best retail experience in America, not the biggest. “If you try to grow too fast, you’ll forget about the important things that got you here in the first place,” says owner Kip Tindell. Define core values that are non-negotiable. In his book, “Built to Last,” Jim Collins suggests that if your core values ever became a competitive disadvantage, you should get out of the market before you should change your values. Clear vision and solid values provide direction in making decisions and a solid rudder in the turbulent white water of managing change.
- Communicate with candor and transparency. When the price of oil was on the rise and fuel costs were threatening the business, Southwest managers took the challenge to their employees. They openly discussed the implications and involved them in making suggestions. Don’t hide the truth – share the good news along with the bad. Build trust so that employees feel they can speak openly and honestly about their fears, concerns and ideas for improvement. Relationship building begins with caring about them as people first, employees second.
- Do not compromise on hiring the right people. In fast-growth companies, it is easy to simply get bodies to fill positions because of pressing business demands. This is short-term gain and long-term pain. Fast growth requires employees who demonstrate initiative, work collaboratively and take risks. The lines and boundaries that separate job responsibilities and departments are often blurred or non-existent. At Southwest Airlines, pilots will come back into the plane and carry out trash to ensure that the plane is turned around in the desired time. Everyone helps everyone. Most high-performing employees would rather work short-staffed than bring in a person who doesn’t have the values or the talents to excel in the role.
- Remember there are no short cuts with ethics. It is tempting in a fast-growing company to make compromises to get to the goal sooner. There is no such thing as business ethics – there is only ethics. Your reputation and credibility drives customer loyalty and ensures employee trust. Do what is right, truthful and fair. Do no harm. Think about the bigger picture and long-term effects of a decision. Southwest Airlines is not only a respected airline; it is a respected member of the community in how it gives back and pays it forward.
- Motivation is not only about bonuses and stock prices. In his best-selling book, “Drive,” author Daniel Pink explains how you need to pay people enough so money is no longer an issue. Now, for some people, this may never happen. However, for most, Pink outlines three factors that contribute to internal drive and sustained motivation: meaningful work that fulfills a bigger purpose, mastery and growth of one’s strengths and talents, and autonomy – the freedom to contribute, make decisions and work collaboratively within guidelines, not rules. The Gallup Organization suggests that managers will release energy when they define the outcomes, not the steps. Southwest learned these lessons four decades ago on a small airfield in Texas.
Surely managing a growth business also includes cash-flow statements, operating plan reviews, lease vs. buy decisions and finding the right financing partners. The heart and soul of a business is its people. Managers in fast-growing companies recognize how important it is to keep employees informed, aligned, involved and dedicated to the vision, values and goals of the business. Care, communicate and collaborate – everything else follows.
Gale Motes is a trainer, organizational development catalyst and coach in Cedar Rapids. Contact her at galemote@galemoteas-sociates.com.
