This company has achieved 32 consecutive years of profitability in an industry that regularly loses billions of dollars. It is valued higher than all of its major competitors combined. While its competitors go bankrupt with alarming regularity, this company keeps on growing. Can you guess which company we're talking about?

This Is No Peanuts!
More than 34 years ago, in Texas, two guys named Rollin King and Herb Kelleher decided to start an airline. They began with a simple idea: If they get their passengers to their destinations on time, at the lowest possible fare - people will fly their airline.

What began as their little Texas airline has grown to become one of the largest and certainly the most successful airline in the U.S. They have reinvented the way an airline business is operated with innovations such as point-to-point flights, no assigned seatings, high-frequency/short-haul routes - and of course, the famous peanuts instead of meals!

In 1992, Southwest became the first airline in history to win the annual Triple Crown - Best On-time Record, Best Baggage Handling, and Fewest Customer Complaints - a feat no other airline had been able to match in a single month! Since then, they have won the annual Triple Crown many more times. But that is not all.

In the last year, Southwest achieved bottom-line profits of more than US$500 million - this was higher than the combined profits of all the major carriers in the entire airline industry in the U.S. Surely, this is no peanuts!

What Can We Learn From Southwest?
I believe Southwest Airlines has a lot to teach product management and product marketing professionals in the high-tech industry. The top three lessons, in my opinion, are:

1. Think Different:
• In an industry where every major airline operated in the hub-and-spoke model, Southwest went with the point-to-point model. While all the major carriers used assigned seating and preferred long-haul routes, Southwest again went against the grain. In a nutshell, Southwest dared to think different to provide unique value to their customers.
• Lesson:
  • Don't just settle for an established way of doing things - whether it is feature set or pricing models.
  • Don't fall for "That is the way every one in our industry does it".
  • Find a different, better way and provide unique value to your target market - a value that will create loyal customers.
2. Focus - Do One Thing Well:
• Southwest's express goal is to be the leading shorthaul, low-fare, high-frequency carrier in America. They have a laser focus on achieving that goal and don't get distracted by trying to be all things to all people. They are willing to sacrifice those travelers (including some of my friends!) who will never fly Southwest since they prefer assigned seatings, first class section, full meals, etc.
• Lesson:
  • Carefully pick a well-defined target market for your product and a compelling value proposition for that target market.
  • Then focus on delivering that value for that market. Don't get distracted by trying to be all things to all people - usually resulting in feature bloat, confusing product messaging, etc.
3. Teamwork:
• Kelleher says his days playing high school football and basketball taught him how a team should work.

If you play football, you don't say to the tackle, 'That's your territory, I'm not going to make that tackle.' Teams don't function effectively under those circumstances - Team play is a fundamental concept, and playing team sports brings that home to you very strongly. If you want to succeed, if you want to win, you have to play as a team.

• Lesson:
  • In most companies, a key responsibility of Product Management and Product Marketing is to lead cross-functional product teams. Make it a high priority to create and foster team spirit in your product teams by clearly communicating the product vision and getting buy-in from every one.
  • Lead by example by assisting in areas outside your normal job functions whenever possible.

Flying In The Face of Conventional Wisdom
Southwest has achieved incredible success by focusing on seemingly simple goals - but many of which go against the so-called "conventional wisdom". Kelleher says:

The... thing that was important was not accepting the conventional wisdom that it wouldn't work. I think probably only one in four people in Texas thought Southwest had a chance of flying, much less of being successful. I say, 'If it's conventional, it ain't wisdom, and if it's wisdom, it's not conventional.' (emphasis added)

Don't fall prey to the conventional wisdom in your own marketplace - ignore comments like "But all our competitors have those features" or "But that is the only pricing model in our industry ". Think unconventionally to find ways to set your products apart and achieve success in your marketplace.

When you do achieve this success, go ahead and treat yourself to some Wild Turkey, Kelleher's most favorite drink - and send me a bottle too!