Hello, Washington D.C? This is a real-life lesson in compromise and conflict resolution.
Kurt Herwald, CEO of Stevens Aviation (left) and CEO Herb Kelleher of Southwest Airlines.
In March 1992, Southwest Airlines started using “Just Plane Smart” as an advertising slogan. Stevens Aviation, whose motto was “Plane Smart,” threatened Southwest with a trademark infringement lawsuit.
Instead of a going to court, the CEOs for both companies staged an arm wrestling match set for three rounds to resolve the issue. The winner of each round was to pay $5,000 to the charity of their choice. Whoever won the best-of-3 arm wrestling match would also win use of the trademarked phrase.
Kurt Herwald, CEO of Stevens Aviation, won the match and along with it the sole legal rights to the phrase. Herwald immediately granted the use of “Just Plane Smart” to Southwest Airlines. The net result: good publicity for both companies, $15,000 donated to charity, and both companies shared use of the trademark. That’s what is known as a win-win-win situation.
And it’s what happens when people are willing to compromise and resolve a conflict instead of stubbornly digging in, no matter what harm or damage results.