Finding real strategic insight in business - #357
Like many business schools, mine used Harvard's case studies. My early favorites were Benihana and Southwest Airlines. They showed the stunning and difficult simplicity of operational innovation. You'd expect an airline to make money when people buy tickets or a restaurant to make money when people pay for a meal. And in a transactional sense, they do. But these case studies showed the power of deeply understanding how a business operates: airlines make money when the planes take off; restaurants make money they seat another table of guests. To make more money, Southwest needed to make their planes take off more frequently; the whole airline focused on the time between touchdown and takeoff. Benihana's theatre of table-side grilling ensured that when the chef left, the patrons did, too. Faster turnover meant more seatings during lunch and dinner and thus more revenue.