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Pacific Western Airlines

Culture of empowerment for learning and innovation

To be successful in today's environment requires the qualities of innovation, learning and quality. All three are closely intertwined – each one reinforcing the occurrence of the other. Much of Pacific Western Airlines’ (PWA's) success can be attributed to corporate culture that encourages creativity and innovation. This environment enabled PWA to weather the pressures of deregulation. Pacific Western Airlines survived and grew by virtue of being more creative and innovative than any of its major competitors. Its success was mainly due to its ability to create a climate that encourages risk taking, finding opportunities in failure, permitting failure and having an action-orientated perspective. All these characteristics are the reverse of traditional organizations where work activities remain well within ‘safe boundaries’, and often these safe boundaries are couched within a bureaucratic environment. In stark contrast, PWA managed to avoid these cultural characteristics and, in so doing, moved from being a small regional Canadian airline in the 1960s to one of the top twenty-five airlines of the world.

The development of the Chieftain shuttle is a good example of the innovative culture of PWA. Pacific Western Airlines's identification of the need for quick, inexpensive and convenient service between two points led eventually to it becoming one of the most successful Canadian air services. At the time, PWA was based in Edmonton, which was the centre of the oil and gas industry, while Calgary housed most of the corporate head offices of the oil companies. This created a need for frequent and reliable travel in the shortest time possible. The Chieftain airbus was based on Eastern Airlines’ air shuttle service between several major US cities. The airline issued tickets on board the flights and guaranteed seating, even if another back-up aircraft was required. Business executives and government officials on tight travel schedules needed such levels of service. The image of the Chieftain was created on a disparaging statement made by competitor, Trans-Canada Airlines, that the appearance of the PWA aircraft's was like a covered wagon. Pacific Western Airlines responded by taking the negative comments and building positively. It used the comment to create a western theme, and appropriately furnished the interior of the aircraft with Native American motifs.

While this service was being developed, a slot between Alberta and Vancouver became available and PWA seized the opportunity. The route was dubbed the ‘Stampeder’ and was introduced with great ceremony and fanfare. Flight attendants were allowed to design their own special western outfits, catering was encouraged to create innovative in-flight service, and everyone became part of the sales team. In sum, employees were freed from the restrictions of a tight structure and allowed to take risks in shaping and implementing a new product.

Despite intense competition from national airlines, which made the whole venture extremely risky, PWA succeeded beyond its expectations. The ‘Stampeder’ service proved that if the organization can differentiate itself from competitors in significant ways then there was potential to be successful. Projecting an image of being feisty, innovative and safe, and offering competitive fares with friendly and enthusiastic staff was all that was required to lay the foundation of success. This example serves to illustrate that innovation does not have to be original to succeed. An old idea can be developed and it can take on its own identity.

From such early experiences, both employees and management were caught up with the entrepreneurial spirit. Quality through innovation and learning thrived. Employee and management teams travelled the globe on the look out for potential opportunities. Everything from airline operations in South East Asia to hotels in the Caribbean were investigated. The entire organization became entrepreneurial, and alert to their own creative potential. Employees were given flexibility, were challenged and failure tolerated. The result was the development of one of the most successful airlines of the time. The airline thrived on its ability to constantly innovate, learn and rejuvenate itself. What made the success possible? The answer is in PWA's culture, which stressed:

• quality through innovation and learning was encouraged by top management
• failure was not career ending
• task forces developed creative ideas
• thinking was global
• problems were viewed as opportunities
• nothing was impossible
• corporate structure encouraged learning and innovation
• a feeling of excitement and challenge prevailed
• there were no limits to opportunities
• risk taking was encouraged
• an action-orientated environment existed
• people and skills were carefully selected
• the company was proud of its heritage.

Basis of success

It was primarily through the creation of an environment which created an atmosphere of fun, freedom and empowered action that PWA managed to successfully mould a culture supportive of learning and innovation. The success was based on the ability of the organization to develop behavioural characteristics and reflexes that were never apparent in the traditional outfit. Employees understood the safety of the environment and undertook their duties with a sense of fun and enthusiasm to make the airline highly customer focused and operationally efficient. Although innovation and learning may not be the sum of what was needed to be successful, certainly they formed the basis of success. It is obvious that creating an exhilarating environment brings out the best in people. Successful companies are those that do this, and are able to capitalize on their people's strengths.