Corporate thinking has a significant influence on entrepreneurial tendencies within an organization. For organizations to reap the benefits of the members through entrepreneurial activities, the process of corporate thinking is a necessary step. Southwest Airlines had made a significant effort boost its profit by encouraging entrepreneurial activities through innovation. However, Southwest airlines can achieve much if it reengineers the corporate thinking that operate within the organization with the aim of providing more opportunities for its staff not only to have the freedom to develop ideas, but receive positive feedback on the efforts to make Southwest Airlines an exemplary leader in the region. Successful reengineering of Southwest’s corporate thinking requires the firm to consider how it set it goals, promote individual accountability, give rewards, and set explicit goals.
Reengineering of corporate thinking will depend on how Southwest Airline sets its goal. In particular, Southwest Airlines must ensure that it holds meetings with its employees in order to create explicit goals that will guide all innovation in the firm. In any organization, explicit goals create an environment where innovators follow steps to develop and realize the potential of their innovations. For Southwest Airline, these goals must not only be mutually explicit, but also mutually agreed by all staff of the company.
Apart from developing explicit goals, Southwest Airlines must also consider the necessity to create a system that will provide feedback to all employees regarding their actions and provide positive reinforcement for entrepreneurial outcomes. This factor is of vital importance because it serves as an indicator to all stakeholders that their ideas on innovation are accepted and at the same time rewarded for exemplary outcomes (Kuratko, 2009). This will be a crucial factor in demonstrating to the staff that their role towards innovation is welcome and that Southwestern Airlines will rewards for meaningful outcomes.
Creating an environment, that emphasis on individual responsibility is a vital step in directing cooperate engineering efforts in Southwest Airlines. Many organizations consider this factor owing to its potential in creating an environment where employees take part in innovations with confidence and accountability at heart (Williams, 2006). Besides, this factor is likely to create confidence in all employees that the organization is supporting them as they engage in innovative practices.
Lastly, Southwest Airline must consider a reward system to encourage all employees to work toward meeting their objectives. Harper and Martin (2011) contend that rewards help employees handle the stress and challenges associated with innovation. This implies that creating a robust reward system will be a positive step will enhance the role of Southwest Airlines in creating an environment where employees are motivated to become innovate and develop winning products and services. Considering these factors will play an instrumental role in enabling Southwest Airlines to go through a successful corporate reengineering process.
What specific elements of a corporate entrepreneurial strategy are apparent within Southwest airlines?
Southwest Airlines stands as one of the leading airliners because it has fully embraced corporate entrepreneurial strategy within its business framework. In particular, Southwest Airlines has several features that exemplify its ambition of becoming one of the leading companies in the United States. First, Southwestern Airlines provides its employees with significant opportunities to have personal growth (Kuratko, 2009). This training that the employees receive, particularly the new hires, demonstrate that Southwest Airlines is keen on allowing its employees to have personal development. The goal of this element is to attract other employees who have talent to join the company and make their contribution towards meeting the business objectives of the firm.
Second, Southwest Airlines has a unique leader and CEO who serves as the mentor to other employees within the organization. This unique element underlines the emphasis that Southwest Airlines has placed on corporate entrepreneurial strategy. The presence of Southwest Airline CEO—Herb Keheler –as a unique leader makes the employees of the company see him as the coach who shares the same vision with them and take the leading in transforming the company. This element must be critical in coaching new hires of the company and allowing them to have freedom.
The lack of an authoritarian management in Southwestern Airlines underscores the role of corporate entrepreneurship in Southwest Airlines. The management of Southwest Airlines allows its employees to join unions and engage in communication process without facing any barriers. This is why Southwest Airlines, boasts of having a unified workforce in their industry that has made it develop innovative products.
The use of reward system is another salient feature that marks Southwest Airlines as geared towards achieving corporate entrepreneurship. Southwest Airlines reward its workers using awards that recognize their role in innovation. For instance, the firm recognizes exemplary staff through the “Heroes of the heart,” an award presented to outstanding employee (Kuratko, 2009, p.66)
How has Herd Kelleher structured a climate conductive to entrepreneurial activity?
Herb Kelleher, the CEO of Southwest Airlines is at the core of all the entrepreneurial activity at the firm. First, he has created an environment where employees have fun in what they do, and this promotes innovation. Second, the CEO also dresses himself in casual clothes that make him resemble Elvis Presley. This style of grooming has made him create an environment where employees are free to work on other vital matters such as innovation. Most important, Kelleher has been instrument in making his employees have confidence the space to engage in unique activities that promote innovation within the airliner (Kuratko, 2009).