Embracing Paradox
Herb Kelleher commented one time on the reputation that Southwest Airlines (LUV) has had for being "the wild and crazy guy of commercial aviation." Yet right on the heels of saying that he added: "Yet in many ways we are the most conservative company in our industry."
What he's getting at is that we must understand that being a "wild and crazy guy" doesn't conflict with maintaining conservative operating principles. Kelleher referred to it as the necessity of a company "cultivating an ability to embrace paradox."
The heart and soul of the company had that fantastic reputation, but as Kelleher stated concerning how the company was operated, "We have always maintained a strong balance sheet, watched our costs, and paid as much attention to our financial fitness in good times as in bad. That discipline lets us move quickly when opportunities come our way."
Many people have a hard time understanding that having a fantastic company culture doesn't negate the need for strong discipline within your financials.
It's been the creation of the tremendous culture that has been Southwest Airlines, along with operational discipline that has made it a great company. It's this paradox that Kelleher refers to as needing to be embraced by business leaders. Many believe that you have either one or the other. Kelleher and Southwest shows that you can have both.
Other Herb Kelleher Sources:
Herb Kelleher An Entrepreneur For All Seasons
Herb Kelleher: The Thought Leader Interview
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