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Rather than trying to predict what we'll do, we try to define who we are and what we want.

Let's continue on from the last post on the fact that Kelleher said concerning Southwest Airlines (LUV) that they literally didn't enter into strategic planning processes and sessions.

"Over the years we developed not only a different strategy," said Kelleher, "but also a different strategic planning process. Basically, we just don't do it."

We talked about why in general last post, now let's talk further about specifics of "Rather than trying to predict what we'll do, we try to define who we are and what we want," in this post.

Remember that the reasons he gives for the decision is that "In an industry where a two-week plan is likely to become obsolete, to spend days debating whether we're to serve Trenton, New Jersey, in 2003 is a meaningless exercise. Life is chaotic; in the airline business it's anarchic."

So when stressing the importance of 'who we are and what we want,' Kelleher was relating to three specific areas: market niche, operational strategy, and financial health.

One time the company needed to make an important decision about the direction they should take. When it came down to it, they reminded themselves of what their niche was and it wasn't hard to decide that the direction taken needed to line up with it, or they wouldn't do it.

The same held true with their operational strategy and financial health. They defined and understood who they were and what they wanted in these vital areas, and used them as filters as they went ahead. Talking of this Kelleher added, "We reflect, observe, debate - and we don't use our calculators."

This, rather than predictions and looking to the future, is what guided them in all their decision-making and choices. Who they were and what they wanted was what determined their future, not meaningless projections and predictions. It was one of reasons for predictability in their outcomes over Kelleher's reign, as they remained true to what they believed.

Other Herb Kelleher Sources:

A Culture of Commitment

HERB KELLEHER

The wild turkey

Herb Kelleher on the Record, Part 1

Herb Kelleher Talks about How Southwest Airlines Grew from Entrepreneurial Startup to Industry Leadership

Belief Model for The Leadership of Herb Kelleher (Southwest Airlines)

Herb Kelleher, Chairman, CEO and President, Southwest Airlines

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