You don't have to look hard to learn about the impact of rising fuel costs, including layoffs, plant closings, cutbacks, service reductions, fare hikes and new user fees.  These headlines and many more just like them blare from the tv and radio or jump out at us from the front pages of our morning newspapers.  However, what really amazes me is how hard you have to work to find examples of companies and leaders that received and read the memo on surviving, improving and even prospering during periods of economic difficulty.

I wrote about this topic a number of months ago (How Good Leaders Approach a Recession) suggesting that the best leaders take advantage of business cycle slowdowns to improve their organizations and set the stage for growth as conditions improve.  While I don't recall for certain, I suspect that I might have even suggested that it is possible for truly enlightened organizations to take advantage of the situation by flogging their competitors who are acting as if a slowdown means going out of business.  If I didn't mention it previously, consider it said: You can grow and advance during a recession.

The Airline Industry: How Not to Act:

The airline industry is generating a fair amount (bad pun intended) of the air time (another bad pun, sorry!) on bad news.  Rapidly rising fuel costs are further devastating the already not-for-profit U.S. airline industry, driving the companies to cut flights, cut employees, cut planes, reduce services, hike fares, add all sorts of new user fees in an attempt to survive.  While I never begrudge anyone the right steps to deal with costs, it seems that the net impact of most of the actions is to take one of the most miserable experiences that a human can go through (next to prison) and make it worse.  In the words of one of my favorite people on the planet…"We have a plan, it's not going to work, but we're going to do it anyway."

Hey airline industry, what about taking some steps to try and do something radical like offer something that encourages people to fly.  You've proven that punishing us with horrible service, uncomfortable equipment and extra fees for luxuries like checked baggage or rescheduling our flights don't work.  Why not Tune In to your buyers and offer us opportunities and experiences that surprise and delight?  Imagine,  trying to lure customers with something positive.  Radical.

Rumor has it one of the major carriers is working on rolling out a host of incentives that focus on providing consumers with good reasons to happily fill their planes.  Southwest figured this formula out a long time ago, and in my opinion, their current commercials mocking the fees of the other airlines by showing passengers inserting quarters for things like reclining a seat, accessing the restroom or opening the overhead luggage compartment, are brilliant.   Just like Apple has single-handedly rebranded Microsoft as a clumsy, lumbering, out-of-touch company with the "I'm a Mac" commercials, Southwest is showcasing how asinine the rest of the industry is acting.

Bottom Line: Other Thoughts on Prospering During a Slowdown in Any Industry

I didn't mean to make this a rant on the airline industry, but with 1 million air miles, most on United, I've earned the right to vent just a little.  Some other thoughts for leaders, managers and concerned corporate citizens everywhere:

  • Thump your competitors if they'll let you. If your competitors are responding to a slowdown by acting like they are preparing to shrink, launch a frontal assault and seek to grab customers while the grabbing is good.
  • Give us reasons to buy, not avoid your product or service. Offer positive encouragement. If you own airplanes you want butts in seats and if you make cars, you want the same.  Help us solve our problems and offer us some good reasons to take that vacation or consider you when we need a new car.
  • Be positive.  Manage the flow of noise from your organization to ensure that it is weighted in the right direction.
  • Create experiences for your customers that "surprise and delight." 
  • Monitor what's happening in places where your customers come to buy.  (Home Depot, you lost my lawn tractor purchase last week, because no one in your store would take the time to talk to someone clearly ready to buy.)
  • Topgrade your team.  The right people make you great.  The wrong people have you punishing your customers and sewing the seeds of your own demise. 
  • Plan and act to prepare for improving conditions.  Prune your project portfolio to those that are most strategic and support them to the hilt!

My next assignment is to seek out examples of companies actually doing some of these things.  If you've got some examples, let us know.  I have to stop typing  now, I've finally reached the ticket counter and I need to pull out my credit card to pay for: the baggage fee, my flight change and my fuel surcharge.  Uh oh, the ticket agent looks angry. And oh yeah, I need a few singles for the bag of peanuts on the flight.