Cashing Out Excellence

Why do so many leaders trade in long-standing capabilities for short-term results?

When Southwest Airlines suffered a post-holiday meltdown in December 2022, the trigger was a bout of adverse weather. But the storm hit Southwest harder than it did most airlines. The company’s outdated computer systems collapsed, and years of underinvestment in technology, particularly staff scheduling systems, led to more than 16,700 flight cancellations over the holiday travel period. Amid the chaos, an executive’s memo demanding proof of illness for the use of any sick days indicated a lack of trust in employees. The scenario contrasts starkly with what the company ...

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