The venerable business case study method got its start in 1921 at the Harvard Business School. The method became standard at the school throughout the 1920’s and since then Harvard has a near-monopoly grip on the business, selling its cases to over 4,000 rival schools. 

Cases can be useful and informative, but recognize that they aren’t reality. The companies featured typically require that the case writer submit the case to them for approval. That introduces survivor bias—whoever is still around at the time of publication gets to dictate how the narrative is told. Another issue is that the companies selected and held up as exemplars are subject to the halo effect. This is the tendency to believe that because a company was successful, copying its practices will create success elsewhere. 

Unfortunately, the iron law of transient advantage is hard to escape. The 1995 Dell case doesn’t hold up so well. A 2002 case about Nokia centered on how the successful phone company was going to deal with the €8 billion in cash piling up in its accounts. And don’t even get me started on the 618 (!) cases that feature the General Electric Corporation. 

Which brings me to the decades of adulation long accorded to Southwest Airlines. 

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The Shortest Distance to Just Another Airline

Southwest Airlines ran a Super Bowl ad this year. In it, passengers scramble through a jungle, climbing over each other in a chaotic race to grab seats. The tagline? “That was wild. Assigned seating is here.” The ad was intended (I think) to indulge in gentle mockery of the past. I found it jarring. Herb Kelleher, the airline’s colorful co-founder, would have been horrified, I think. I last met with him (over a Wild Turkey bourbon, of course) at the Strategic Management Society Meetings in 2004 and he was adamant—employees first, deep attention to details, and most importantly, fun! 

The many (348!) cases, book chapters, and textbook references to Southwest reference its tightly integrated strategy where every element reinforced every other, allowing it to be profitable in a notoriously tough business. 

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