David Huby’s Blog Technical and business stuff

20Dec/080

Family Village Tribe – The Story of Flight Centre Limited

(the following was originally posted November 24th, 2008)

Family Village Tribe: The Story of Flight Centre Limited

Mandy Johnson documented the journey of Flight Centre from humble beginnings as a tour operator in the UK, to a highly profitable organisation worth millions and over 8000 employees in hundreds of shops globally.

Three focal points drew my attention:

1. Turn “bad” situations to your advantage. Each time the rest of the travel industry experienced downturn, Flight Centre used this as an opportunity to expand and advertise. When the markets recovered, they captured greater market share and quickly recovered their losses.

2. Let people own things. There is a level of emotional equity in doing this. When someone is responsible for the success or failure of something, they are more likely to work hard to ensure it is a success.

3. Give people financial equity in the business when you can. If the aim of the business is to return sustained profits and grow, equity will help people align their interests with the business.

The key point of the book is the principle of family, village, and tribe. By aligning the size of teams and their structure within the Flight Centre organisation, the founding partners attempted to exploit the social structures and instincts developed by humanity over the millions of years prior to agricultural societies.