
In this instance, Southwest likely didn’t understand the upper limit of this approach as a solution. While the answer is sometimes to throw people at the problem, it’s not a safeguard. Our technology advisory team defines scalability as the upper limit of any system to increase output by simply throwing people at the problem before a new solution is required. Gartner defines scalability as the measure of a system’s ability to increase or decrease performance and cost in response to changes in application and system processing demands. Understand the limits of your systems and how they can scale The following four tactics will help reduce the risk of system failure irrespective of business size or industry. How Can Our Organization Prevent a Technology Crisis? While Southwest will spend years recovering from this event, for other organizations there are lessons to be learned and applied to prevent catastrophes on any scale.
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Ultimately, it’s likely that uninformed or reactive decision-making, a lack of proactivity, and inadequate systems amalgamated into a dramatic cascade of misfiring. While there is not a simple answer, it’s safe to say it was the perfect storm (pun intended). And, with the prope r proactive measures and technology upgrades, it could have been prevented.

This could be perceived as one of the largest and most extensive business cris es in recent history. The unrecoverable cost to the airline to account for refunds and compensations is estimated at close to a billion dollars in net outlay and lost revenue. December 2022 ’s unexpected cold front, a spike in travel, and outdated tech resulted in Southwest Airlines canceling 65% of flights and impacting millions of passengers between December 26 and 31. This isn’t a dystopian scenario it’s rooted in fact. Ice storms wreak havoc on the west coast, power outages riddle the south, flights to every corner are grounded, and holiday travelers are stranded. Shutdown, Turnaround & Outage Contract Auditsīy Garrett Datz, Principal | Technology Advisory.Recovery Audit & Accounts Payable Audit Services.Overview of Business Performance Management.
