The real stuff.
by Donlon, J.P.
At the World Business Forum we ran into Herb Kelleher, our 1999
Chief Executive of the Year. Alone among the luminous speakers lined up
for that spectacle, Herb gave the most compelling presentation. No
charts, no data, no big speeches nor animated effects and Hollywood
clips to dazzle as Michael Eisner did. He just told stories about his
Southwest comrades in arms and why the industry thought he was nuts to
think that airline attendants would actually care about customers. Given
that the industry has imploded on customer service, Southwest continues
to stand apart, owing to its steadfast hold on its core values.
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It also stands apart as the only profitable airline. Kelleher
related that he received a phone call from an industry representative
asking him to fly to Washington to represent the industry's request
for subsidies. "I told 'em, 'Guys, I don't think you
want me to represent you.' When they ask me whether Southwest needs
subsidies, I'm gonna say, 'No we don't need
'em.'" Even in retirement Kelleher burnishes his maverick
status. (And continues his affinity for 12-year-old Wild Turkey.)
Today, people accept Southwest's success as foreordained. It
very nearly was strangled at birth. In 1966, Rollin King, a Texas
businessman who was planning to launch an intrastate airline, hired
Kelleher as an outside counsel. (The business plan was drawn up between
the two men on a cocktail napkin in a local bar.) Before the first plane
left a hanger, bigger rivals including American, Texas International and
Braniff (remember them?) nearly persuaded Texas courts not to permit the
carrier to fly.
Also riding shotgun at the lunch was Colleen Barrett, the keeper of
the flame of what has made the company unique. The Bellows Falls, Vt.,
native is sometimes referred to as "The Queen of Hearts" for
being the creative soul behind the culture. It was Colleen who
remembered employee birthdays and sent handwritten notes upon the birth
of their first-borns. She also played den mother to Herb's court
jester, often advising him whether a new hire truly had the joi de vivre
and passion for people required to work at this loopy place that is an
airline. When told by fashionista Diane von Furstenberg that she
didn't really like the "ambience" the carrier created,
Kelleher, referring to the firm's low-cost, no frills model, is
said to have replied, "Gee, I didn't know we had any."
Catching up with Kelleher reminds me of something he once said.
Business looks for techniques that are simple and fast. The tragedy of
our times is that we have got it backwards: We have fallen in love with
techniques and use people. Imagine thinking that people should come
first.
COPYRIGHT 2007 Chief Executive
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Copyright 2007, Gale Group. All rights
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NOTE: All illustrations and photos have been removed from this article.