Speeches and Presentations from Southwest Leaders
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Herb Kelleher |
What do you get when you mix Herb Kelleher, Executive Chairman and Co-Founder of Southwest Airlines, with a room of 350 students from the Stanford Graduate School of Business? A lot of laughter, personal lessons on leadership, and a hearty dose of irreverence.
Herb was in Stanford recently to speak at the Dean’s lecture series, View from the Top, where notable business leaders such as Jack Welch and Colin Powell share life lessons and leadership wisdom with current and future graduate business students.
The event was hosted by George Parker, a distinguished professor and Continental Airlines board member. Parker began the session by interviewing Herb, then opened the conversation to the students. As a pioneer in the airline industry and business, Herb was asked about the spirit of innovation, whether it can be learned or taught.
“You have to have a spark in the DNA, have to be a visionary, an idealist,”he said. “It’s helpful to be exposed to different ways of thinking and anything we can do to encourage that spark is important. Never scorn an idea because you will never get another idea from that person. Saying just “no” is an exercise in power. We give lengthy explanations to our Employees to explain the reason why we turned down an idea, we reference studies, why it didn’t work at other companies, the research that has gone into it, so they know that there was thought behind turning it down, it wasn’t arbitrary.”
When asked what the biggest “screw up” was at Southwest, the room broke into laughter when Herb replied that it was Southwest hiring Herb, a mistake like “Everest looming over the Serengeti.” But Herb went on to provide insight on why mistakes are powerful learning opportunities.
“The most important thing when making a mistake is a quick recovery,” Herb said. “When you make a mistake, don’t mourn it, don’t wallow – fix it as quickly as you can. There is sometimes an ego problem in corporate America. It’s institutional worship, where a Company cannot admit a mistake was made. Where appearance is more important than what is going on in the field.”
Naturally, many questions centered around leadership, from Southwest’s good relationship with its unions to where Herb gets his passion for leadership.
“What drives me is to do right by other people and help them achieve excellence,” he said. “I have an inner need to help people. I have no passion for what I do for myself, but a passion to be a servant in everything I do.”
Herb expounded on Servant Leadership and putting Employees first when a student asked how Southwest has managed to continue its culture and leadership philosophy as the Company has grown.
“Tactics are different, but behavior is the same. We send other people into the field, missionaries, we communicate via the Intranet, it’s about communicating,” he said. “It’s getting the officers out of the general office to load bags and take reservations. It is about taking care of Employees’ interests, communicating with them, and honoring them. That is job number one.”
One of the most interesting questions came from a student from the class of 2008, who had just recently been accepted to Stanford’s Graduate School of Business. He wanted to know what advice Herb had for those just starting their career.
“Don’t be too serious – be open, be curious, be inquisitive. Look for things coming out of left field, you might discover a passion. Keep your mind open to new experiences and keep learning. Read a lot, study different fields, don’t confine yourself,” he said. “Success comes from succeeding on behalf of other people. We sometimes restrict ourselves when we’re young. Be flexible, be open, be curious – learn from others and from books. I read omnivorously.”
Intermixed with questions on leadership were questions on Southwest’s strategy and business practices, including Southwest’s ability to be nimble as it grows. Herb said the key was simplicity and quickness and that Southwest “wages an unending battle against hierarchy and bureaucracy.”
Never was this more apparent than in the aftermath of 9/11, when Southwest remained profitable during one of the worst times in aviation history. When asked if Southwest’s leadership philosophy changed in order to remain profitable, Herb said the Company’s philosophy remained the same.
“What is our philosophy? It’s that bad things happen more often than not. What does that mean? Be ready,” said Herb. “We manage in good times so we will do well in bad times. When 9/11 happened, Southwest had the lowest seat mile cost, the strongest balance sheet, the most liquidity. We were prepared. There were no furloughs, and we didn’t cancel flights.”
The session ended with rousing applause and a gift from the View from the Top team. Herb’s reputation for Wild Turkey preceded him, and the students gave him a bottle of Wild Cardinal, Stanford’s mascot. Laughter replaced the applause when Herb took a swig to show proper appreciation for the gift. Laughter and lessons on leadership—a perfect combination for Herb.
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