Jet Blue

JetBlue began operations at a time when most other airlines were struggling to remain profitable. Not only were they able to enter the market under these difficult conditions, but they were able to remain profitable while expanding their operations. There are a number of factors that led to success, but the overarching principle that guided the success was the alignment they were able to achieve across all of their business units.

The 7-S model developed by McKinsey & Company can help explain how JetBlue was able to achieve the alignment. Looking at these seven variables of organizational effectiveness (strategy, structure, systems, skills, staff, style, and shared values) we can appreciate the care that went into developing an organization that was built for long term success. While no one variable is more important that the others, in JetBlue’s case business operations were built around one shared belief.

In the 7-S model there are both hard and soft S’s. The hard S’s are strategy, structure and systems, because they are more easily quantifiable and measurable. The soft S’s are skills, staff, and style because they are more qualitative in nature and not as easily measured. Shared values, which in the case of JetBlue consists of creating a more human airline would also be considered a soft S.

According to CEO David Neeleman, JetBlue was created to “bring humanity back to air travel”. It is important to understand the complimentary pieces of this vision. JetBlue was focused on giving their customers an experience unlike what any other airline was offering at the time. This vision carried over into their internal operations as well. JetBlue leaders were able to create a shared vision that guided the company’s actions both inwardly and outwardly.

A vital factor of JetBlue’s strategy was getting information into the hands of the employees that were best equipped to make a difference to the customer. By digitalizing flight manuals for pilots, installing state of the art diagnostic software for mechanics, and even revolutionizing their call center operations JetBlue was able to create a workforce that had all of the tools needed to quickly and efficiently complete their jobs. Ultimately the consumer benefitted from the increased efficiency in the form of a more enjoyable flying experience at more affordable rates.

JetBlue has a number of systems in place that promote alignment. One example includes each employee attending an orientation with a special emphasis on the corporate goals. It is important to the company that each employee not only know how to best do their jobs, but how their job fits into the overall success of the company. Additionally, each employee is encouraged to cross train and learn the skills needed to do the jobs of their colleagues. This cross training allows the company to shift employees to different functions as more capacity is needed in a certain area.