When people choose not to work somewhere, the somewhere isn’t a company, it’s a team. If we put you in a good team at a bad company, you’ll tend to hang around, but if we put you in a bad team at a good company, you won’t be there for long. The team is the sun, the moon, and the stars of your experience at work. As Edmund Burke, the Anglo-Irish writer and philosopher put it as far back as 1790, “To love the little platoon we belong to in society is the first principle (the germ, as it were) of public affections.”

When we push on the data, and examine closely its patterns and variations, we arrive at this conclusion: while people might care which company they join, they don’t care which company they work for. The truth is that, once there, people care which team they’re on.

Rules, no matter how enveloping, will never deliver an exceptional customer experience. Colleen Barrett, who in her forty-seven-year career at Southwest served as head of marketing, customer service, people, and operations, describes the airline’s approach to rules: “The rules are guidelines. I can’t sit in Dallas, Texas, and write a rule for every single scenario you’re going to run into. You’re out there. You’re dealing with the public. You can tell in any given situation when a rule should be bent or broken. You can tell because it’s simply the right thing to do in the situation you are facing.

As we mentioned before, if your customers don't all fall in the same operating segment — if they don't all want the same things, in the same order of priority — you have two basic choices. Your first choice is to focus without apology on one operating segment, to build a single service model around one segment's needs and keep your finger on its pulse. That's what Walmart and Southwest do. If a customer outside these companies' core constituency wants to do business with them, Walmart and Southwest will certainly take the money. But the companies won't contort their service models to also meet the needs of these secondary customers. Your second choice is to build different service models for the operating segments you uncover. Think emergency rooms and outpatient clinics within a single hospital.

Southwest has a greater number of unionized employees than any other airline, yet it also has better employee relations than any other airline. Why isn't that a contradiction? It turns out that unions love Southwest because, unlike other airlines, it has never had a layoff. Southwest didn't expand as much as traditional airlines did during good times, which means that it doesn't need to cut back quite so much during bad times. This policy is designed to maintain good employee relationships, and it is these good relationships that allow Southwest to include the team-late provision in employment contracts, as well as put the phrase "and everything else" into all of Southwest's job descriptions. Whatever needs doing, you simply do it, without having to locate, for instance, a qualified master electrician to screw in a light bulb. And this chain of interlocking trade-offs — expansion limits to preserve job stability in return for flexibility in job descriptions — all leads directly to faster turnaround, the key to Southwest's success.

As we mentioned before, if your customers don't all fall in the same operating segment — if they don't all want the same things, in the same order of priority — you have two basic choices. Your first choice is to focus without apology on one operating segment, to build a single service model around one segment's needs and keep your finger on its pulse. That's what Walmart and Southwest do. If a customer outside these companies' core constituency wants to do business with them, Walmart and Southwest will certainly take the money. But the companies won't contort their service models to also meet the needs of these secondary customers. Your second choice is to build different service models for the operating segments you uncover. Think emergency rooms and outpatient clinics within a single hospital.