Never, Never Change Your Principles
Kelleher commented one time that he had seen tremendous entrepreneurial strategies destroyed because of the increase in size of the business and its maturing.
"I have seen brilliant entrepreneurial strategies falter as an organization grows and matures," Kelleher said. "Obviously, you manage a $25 billion company differently than you do a $25 million company. But you change your practices, not your principles."
This is probably the No. 1 problem in business around the world today; and I don't 
believe I'm exaggerating at all.
How do you identify this problem? Just look at the business stories you hear about companies that struggle in finding their way. Examine what it is they're doing in response to that struggle. Ask yourself the question of whether they're responding by introducing practical changes or if they're literally changing the foundational principles the company is built upon.
If a company changes their principles, the chances of their survival are minimal. Oh, they might survive in the sense of wobbling along just barely eaking out their existence, but the days of thriving and being a force will be over. Just research and study business history to see if this isn't true.
Remember when the alleged dotcom boom was going on and Warren Buffett refused to get caught up into the hype? He was publicly tarred and feathered for sitting on the sidelines while it looked like people were making fortunes while his investors were looking like they were pathetic. You know who won that battle.
The reason why great business leaders like Kelleher and Buffett make decisions like that is that they completely understand the principles that the businesses they've run stand on. To move off of them makes them something that they could never be, and would do great harm to the company.
What do we do about this? First we must know our principles; which many in business don't. But once we know them, we never move off of them no matter what the current economic climate of fad is.
We...must...never...change...our...principles - ever!
Other Herb Kellerher Sources:
ENTREPRENEURS: BORN OR MADE? A CONVERSATION WITH HERB KELLEHER OF SOUTHWEST AIRLINES
Herb Kelleher An Entrepreneur For All Seasons
Herb Kelleher: The Thought Leader Interview
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» Herb Kelleher: The Method Behind His Madness - 21 from ManagersRealm
Change Practices Not PrinciplesWe've been talking about the absolute importance of not changing our principles ever, while embracing willingly the changing of our practices. It's imperative that we know the difference between the two. When lead... [Read More]
Tracked on: February 5, 2007 5:19 PM | Permalink to Trackback