Have a good idea. Legend has it that Kelleher, an attorney whose firm did work for Braniff, sketched the idea for Southwest on the back of a napkin. The airline would fly point to point; later that idea was refined to including flying a single type of aircraft, the Boeing 737. Point to point eliminated the need for creating costly hubs and using one aircraft streamlined training and maintenance for pilots, crew and mechanics. Southwest has also made an art of hedging fuel prices; Kelleher told Nocera that Southwest is paying $51 a barrel for 70% of its fuel.
Surround yourself with good people. At Southwest Airlines, the default assumption is that the employee is always right. This may be counterintuitive to a consumer service operation but within the Southwest culture so much attention is given to employee hiring and training that the company trusts the people who represent it. Southwest’s customer-service focus is reinforced by the employees who deliver it; it part of the airlines culture.
Have some luck. Nocera quotes former American Airlines executive, Richard Crandall, as saying that Southwest benefited enormously from the use of Love Field in Houston. That gave the airlines convenient and easy access to the downtown Houston market which was critical to the airline’s early success. [Luck did not spare Southwest from having to pay millions in fines for flying aircraft that did not meet FAA standards for safety.]
There is something else about Kelleher that may be the secret of his success. Kelleher is a people person and loves to have a good time. That personality contributes to his belief that work should be fun and the culture that he and his team nurtured reinforced that mindset. People actually enjoy coming to work and that positive spirit reflects well on customers.
Herb cultivated the spirit by diving head-first into the employee activities. He met and mingled with employees frequently; he also socialized with them. Spending so much time with front-line employees gave Kelleher a first hand view of what worked and what did not. Employee ideas for improvement were always welcome. Kelleher’s personal management style demonstrates that the success of Southwest depends as much on executive direction as employee participation.
Source
Joe Nocera “The Sinatra of Southwest Feels the Love” New York Times 5.24.08





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