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• Case | HBS Case Collection | 2013 (Revised from original 2010 version)

  Southwest Airlines: In a Different World

  James L. Heskett and W. Earl Sasser Jr.

  This is the fourth in a 35-year series of HBS cases on an organization that has changed the rules of the game globally for an entire industry by offering both differentiated and low-price service. The focus of the case is on whether Southwest Airlines should buy gates and slots to initiate service to New York's LaGuardia airport, which does not fit the airline's profile for cost, ease of service, and other factors. The bigger issue is how the organization should deal with competition that has successfully emulated more and more of what it does in an operating environment that has changed significantly. Hence the subtitle, which was suggested by Herb Kelleher, Southwest's Chairman and CEO, Emeritus.

  Keywords: Decision Choices and Conditions; Service Delivery; Service Operations; Organizational Culture; Competitive Strategy; Air Transportation Industry; New York (city, NY);

  Citation:

  Heskett, James L., and W. Earl Sasser Jr. "Southwest Airlines: In a Different World." Harvard Business School Case 910-419, January 2013. (Revised from original April 2010 version.)

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• Case | HBS Case Collection | 2011

  WrapItUp: Developing a New Compensation Plan

  W. Earl Sasser Jr. and Rachel Shelton

  A restaurant chain based in California offers made-to-order sandwich wraps using fresh, healthy ingredients. The founders of the company take a very active role in day-to-day business and tightly control every aspect of the restaurant operation from hiring store managers to planning the menu. Management is concerned that employee turnover is high, customer satisfaction is decreasing, and revenue growth is flat. The newly hired human resources leader believes addressing employee turnover can help solve the other problems. She develops a profit-sharing program as a pilot at two restaurants. The managers in the pilot program have their compensation tied directly to restaurant profits. The program also allows managers to customize menus, work with local suppliers, and try different promotion ideas. After six months, profits at the pilot locations improve while customer reviews are mixed. The HR manager must review the complete results and decide whether to roll out the pilot program to more locations, modify the program, or abandon it altogether. Students consider the operational challenges of running a service business and the issues related to compensation, change management, and employee autonomy.

  Keywords: Empowerment; Middle management; human resource management; compensation; incentives; motivation; Motivation and Incentives; Change Management; Food; Business Growth and Maturation; Retention; Entrepreneurship; Compensation and Benefits; Retail Industry; Food and Beverage Industry; California;

  Citation:

  Sasser, W. Earl, Jr., and Rachel Shelton. "WrapItUp: Developing a New Compensation Plan." Harvard Business School Brief Case 114-362, November 2011.

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• Teaching Note | HBS Case Collection | 2011

  WrapItUp: Developing a New Compensation Plan (Brief Case)

  W. Earl Sasser, Jr. and Rachel Shelton

  Teaching Note for Product #4362

  Keywords: Empowerment; Middle management; human resource management; compensation; incentives; motivation;

  Citation:

  Sasser,, W. Earl, Jr., and Rachel Shelton. "WrapItUp: Developing a New Compensation Plan (Brief Case)." Harvard Business School Teaching Note 114-364, November 2011.

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