Tuesday, May 20, 2008

JetBlue

From the last several months I'm increasingly intrigued about what it takes to start a great organization. So, whenever I get a chance I keep talking with like minded folks on the problems that plague "not-so-great organizations" and what could be done to build one, if at all I get a chance. BTW, my definition of a great company would embody the following:

1. There is a well defined purpose
2. Encourage risk taking at all levels
3. Dignified - graceful, respects individuals
4. Expects "excellence" in every pursuit
5. Led by leaders that are willing to serve

(I've been greatly influenced in my thinking by Tom Peters).

I'm reading some books which give me an inside view of how such organizations are built.
Last weekend I completed BlueStreak: inside jetBlue an upstart that rocked an industry, story of jetBlue, one of the most successful airlines in the USA. It is a great read for anyone looking to build an organization.


Few things that stuck me are:
1. Being Different: The CEO and founder Neeleman was very clear from the beginning that he wants to build an airline with a difference, not just yet another airline. This philosophy is evident in every action/policy of the airline. Interesting to understand their culture.
2. Vision: The importance of having a dream team to start-off. He managed to persuade some of the very best people in the industry to join him so that they together can serve the people better.
3. Leadership: Leaders at all levels. With a flat hierarchy and empowered staff, JetBlue can make decisions faster than competition.
4. Excellence: Hunger to be the best. The team went systematically acquiring market share and beating the competition in almost every route that they decided to operate.
5. Training. New recruits are trained not only on the technical skills needed to do their job, but also on the values of the organization. Neeleman himself teaches the new recruits the Economics101 and drills in the importance of CASM (Cost per Available Seat Mile) and
6. Employee First: Neeleman refused to divulge the name of the manager who by mistake revealed some private data to the govt. Such acts would get a great level of commitment not just from the manager in question, but by the whole company.
7. Humane: Numerous examples are littered throughout the book that tells us that the staff at JetBlue put humanitarian needs ahead of business. In fact there was one occasion where they took care of stranded passengers of a rival airline, as what they saw was the need to serve the needy and nothing else.
8. Innovation: First airline to introduce live TV, leather seats etc., These are all typically unheard of in a budget airline.
9. Profitability: Any for-profit organization has to make profits to survive. JetBlue has achieved the same year-on-year and has shown the world that one can he humane, serve, excel in what they do and still make profits.

I haven't flown with them yet. But surely shall do as soon as I get a chance.

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