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Apr30
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Herb Kelleher Be Yourself, Business Leaders, control, Creativity, embrace paradox, Flexible, friendly, genuine, Great Leader, Lead by Example, LUV, Management Style, operational discipline, participate, Southwest Airlines
"...we look at them for attitude as well [as business smarts]. We will hire someone with less experience, less education, and less expertise, than someone who has more of those things and has a rotten attitude." When I looked at Kelleher's comments about hiring for attitude, I knew that at the beginning of my days blogging on ManagersRealm I had written something like it. When I went back and looked, it was my second post I had ever done on the blog. It was January 9, 2006.
Another thing that caught my eye on that post that I hadn't remembered, was that I used Herb Kelleher as an example then also concerning the importance of hiring for attitude above anything else. Like Kelleher says after his quote above, "...we can train people. We can teach people how to lead. We can teach people how to provide customer service. But we can't change their DNA."
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Apr30
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"Having a personality of caring about people is important. You can't be a good leader unless you generally like people. That is how you bring out the best in them." There is one thing that is impossible to reproduce or...
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“I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.” It seems to me with the numerous business leaders I've talked to through the years, and those that want to be...
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Apr29
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"An average person with average talents and ambition and average education, can outstrip the most brilliant genius in our society, if that person has clear, focused goals."I like this quote above, not just for its encouragement to an individual, but...
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Swim upstream. Go the other way.With Wal-Mart (WMT) being such a large company, it can sometimes seem that it wasn't that hard for it to reach the level it's reached in such a relatively short time.Another thought is that it's...
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Welch Considered His Greatest Achievement Care and Nuturing of LeadersWelch had said in the past that he knew 1,000 top people at General Electric (GE), not only by their names, but by their responsibilities. It more than impressed those that...
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Some said: "... you've got to be just like the other airlines."Even though some of the other airlines in the industry fought like crazy to keep Southwest Airlines (LUV) from taking off, they were still very contemptuous of the airline...
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Apr28
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The Democrats and Hillary Clinton's fear of Wal-Mart (WMT) reveals one of the problems that businesses face as long as people think that big government has all the answers.Brian Williams asked Clinton at the recent debate on whether she thought...
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"I intervene as little as possible. Give them that, and they will give everything back."Concerning Richard Branson's relationships with his top managers, it is very strong. It's worth taking a look at how he does it, as it differs from...
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“Chains of habit are too light to be felt until they are too heavy to be broken.”When you first look at this comment by Buffett, it seems to be saying that it is wrong to develop habits. I think that...
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"No matter how busy you are, you must take time to make the other person feel important."In a variety of ways throughout her life, Mary Kay always came back to her belief in making people feel important. It wasn't a...
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Apr27
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"We're proud of what we've accomplished; we've just begun."The above quote from Walton was said after he talked about the vision he had of decreasing the cost of living for everyone. He said: "And we'll lower the cost of living...
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"Today's niches, tomorrow's big things."In meditating upon Welch's above comment, it comes to my mind that I think no matter how big or small a company is, we should be exploring some new area to find if there's something there...
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"We ran out of money in 1969, and the board of directors said: Let's just shut this down. And I said: I'll pay all the costs out of my own pocket and work for nothing to see if we can...
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"However tight things are, you still need to have big picture at the forefront of your mind."In a telling true story of Richard Branson and Virgin Airlines, he talks about the importance of keeping the big picture before you even...
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Apr26
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“Fear is the foe of the faddist, but the friend of the fundamentalist.”This is a fantastic insight by Buffett into one of the keys to continuous success. Before we touch on it, let's define a faddist for a moment so...
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"Dare to risk public criticism."If there is one thing that Mary Kay has generated through her years in business and as a public figure, it was criticism. It seems like people either liked what she was doing and had to...
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My colleague at Brain Based Business, Ellen Weber, wrote about the connection between being smart or dumb and attaining wealth. She was referring to a study by Ohio State University which said there is no connection.This isn't surprising. I've done...
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"I had to pick myself up and get on with it, do it all over again, only even better this time."Walton was talking about a particularly tough circumstance he went through with Wal-Mart (WMT) when saying what he said above....
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Apr25
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Welch Spent 15% to 20% of his Time Interacting with CustomersWhen you consider the value that we place on time as managers, it amazing when you realize that Welch took a fifth of each working day and spent it listening...
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Patience is a Key Ingredient to Southwest’s (LUV) Strategy and Management StyleIn talking about the time it takes to reach profitability in new markets, is the context of the comment above. Kelleher said that he had to talk to his...
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I found it very intesting in this coaching video that of those that were leaders in various professions, none of them really considered coaching as being over somebody in the sense of intellectually imparting information, rather it comes from taking...
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"More than any other element, fun is the secret of Virgin's success."We hear a lot of this from a number of business leaders concerning the key to their success. I think one thing to talk about concerning "fun," is that...
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Apr24
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The continuing story in the financial markets and across the business world is when the Dow Jones Industrial Average (DJIA) may crack the 13,000 level for the first time ever. One question that arises is this: Are we to be...
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“In making acquisitions, Charlie and I have tended to avoid companies with significant post retirement liabilities.”In the light of the problems connected to the automotive industry, this is a very wise strategy to employ by Buffett and Munger for Berkshire...
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Determination, Dedication and Hard WorkI always like talking about things like these in reference to successful business leadership because it's always the invisible things within that eventually show the visible things without.Determination is just another way of saying that you're...
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Apr23
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Sponsored ReviewWhen it comes to management software, as in many things in business, most the time 'less is more.' And that's what the "Manager Assistant Employee Software" offers busy managers.As Manager Assistant says concerning their purpose: "Our company mission is a...
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"Your customers will tell you when you're wrong"There's been increasing pressure over the years to adhere to a lot of outside interests that really have nothing to do with business. Another thing that this does is take the focus off...
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Apr22
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Why Showing Interest is so ImportantOne of the great motivational tools by management is simply showing interest in what your people are doing. There is never a time when I've heard people complain about genuine concern about what's going on....
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Why You've Really Gotta BelieveAt the time when Herb Kelleher helped to start Southwest Airlines (LUV) the industry was heavily regulated, and he had to find a loophole in the law to even be able to start the venture. The...
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Apr21
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"Once you have a great product, it is essential to protect its reputation with vigilance."There's one thing about business, competition and the media: they aren't always complementary to one another. Many times they may not be accurate or honest either.The...
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Helen Walton, whom her late husband Sam Walton credited with the strategy of not going into big towns in beginning of the business, died on Thursday in Bentonville, Ark. Miss Walton died of natural causes, according to Mona Williams, a...
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Your culture, more than anything else, determines how an organization behaves.Last year Warren Buffett sent a memo to his Berkshire Hathaway (BRK-A) managers concerning how the company should behave in all matters. It was in reponse to the stock option...
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Apr20
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"Aerodynamically, the bumble bee shouldn't be able to fly, but the bumble bee doesn't know it so it goes on flying anyway."I really like this quote. One thing you may or may not know is that there are even strategies...
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"We’re all working together; that’s the secret."The statement above has been repeated by so many business leaders for so long that it has lost a lot of its edge from becoming common.I do want to mention one thing behind this...
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“If past history was all there was to the game, the richest people would be librarians.”If you've ever invested in the market, brokers and perspectus' will always include that the past performance of company or stock doesn't guarantee what will...
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No Unsurety With WelchThere was something about Welch that I believe was a tremendous strength in him. There was never an unsurety of what he thought about anything.One person said: "Welch will say yes. Welch will say no. But he...
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Apr19
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"Always Operate in Survival Mode"While it wasn't intentional, it is interesting that in the last post concerning The Common Sense Management of Sam Walton, he talked about the fact that not having much money at the beginning of the business...
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Research for Writing a Book Accidently Created Mary Kay CosmeticsIn another one of those quirks of business history, Mary Kay was actually doing research for a book she wanted to write when she discovered when looking at her notes that...
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"Had we been capitalized we would never have tried the small-town America stores."One of the more amazing contradictions in doing business is the problem of having too much money at the beginning of a venture.Some research says that one of...
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The Danger of Running an Acquired BusinessBuffett has talked a number of times about his and Berkshire Hathaway's (BRK-A) strategy in buying businesses. The major consideration, after all is considered, is keeping the existing management in place. The question is...
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Apr18
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How He Rewarded His PeopleWelch had a unique program in place at General Electric (GE) which did a lot to encourage his people. As a matter of fact you could be rewarded without even being promoted by your base salary...
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Work Within Core ValuesIn reference to core values, there is a lot of advantage in defining and maintaining them across any business.So many in management and business leadership are surprised when competitors are able to move quickly and always seem...
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While anybody could have told you that the attack against Wal-Mart (WMT) was failing, groups backed by unions conducted a survey to try to get some ammunition to to attack the company again. They failed.In a recent poll conducted by...
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A number of black leaders were more disturbed about some of the responses to Imus then they were about what he said. For example, Michael Myers talks about the attack on free speech and the atmosphere this is creating: Jason...
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Apr17
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There's Always a WayFrom the beginning of Virgin Atlantic, the companies planes were maintained by British Caledonian. Then when British Airways bought the company, they gave their word that all existing contracts would be honored. But in September of 1988,...
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"I chose as my standard the Golden Rule: 'Do unto others as you would have them do unto you.' Some might consider the Golden Rule corny and old-fashioned, but no one can deny its simple truth."The fact that Mary Kay...
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Stay Lean and Fight Bureaucracy When Sam Walton talks about keeping a company lean and fighting bureaucracy, he's talking in my estimation about two of the most important concepts business management needs to know.From the standpoint of staying lean, there...
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Apr16
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How Buffett Decides to Buy a CompanyBuffett has listed in his yearly reports what it is that determines his thought processes when looking at buying a company. There's a lot of good ideas to learn from his way of thinking1....
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"I try to pick out what matters."Welch was an interesting anomaly in the area of how much he got involved with managers, businesses and departments within the General Electric (GE) fold. Other than large initiatives, placing new executives or large...
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Apr15
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People Aren't a Strategy at SouthWest Airlines (LUV)Kelleher was asked the question once on when the thinking concerning people being a competitive advantage occurred to him. His response was very telling, because he said the idea of people being a...
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"One of the reasons I dress up is to give press photographers a good picture that will make it into the papers and so promote the Virgin brand name."If you've ever studied business over the years, you'll find that some...
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"Refuse to throw in the towel."The saying by Mary Kay above is simply another way of saying don't quit. You'd be surprised how many times just staying in the game can make you a winner as those competing against you...
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Thinking Small Series - Part 5 The idea of thinking small within a company no matter what the size was extremely important to Sam Walton. He always fought to have that be part of the way the company operated.One of his...
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Apr14
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Notes and Interview from "Billionaire Next Door" - Part FiveThis part of the interview deals with last things, as they talk about Buffett and his commitment of $31 billion to the Bill and Melinda Gates foundation and the Berkshire (BRK-A)...
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Notes and Interview from "Billionaire Next Door" - Part FourThe fourth installment of the Buffett interview begins with that seeming contradiction of safety versus risk. Talking about insuring Lloyds of London and some of their Asbestos risk, he says it...
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Notes and Interview from "Billionaire Next Door" - Part ThreeIn the third portion of the interview, Buffett gets to talking about the annual shareholders meeting, and others comment how its become the equivalent of a "Woodstock for Capitalism."A professor from...
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Notes and Interview from "Billionaire Next Door" - Part TwoIn the second part of the Warren Buffett interview with CNBC, he talks a lot about his contentment with his life in general, and the importance of living away from New...
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Notes and Interview from "The Billionaire Next Door" - Part OneWarren Buffett invited CNBC to do an interview with him on his life story and insights into what has made him so successful with Berkshire Hathaway (BRK-A).He tells of his early years where...
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Apr13
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“Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.” I want to immediately take this out of the investment realm and bring it into the management arena. There are...
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Customized RewardsWelch remembered the time he wanted to quit General Electric (GE), in part because of the "commoditized" raise of $1,000 he was given by the company. In response to that, he made it one of his trademarks to make...
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How Being a Lawyer Helped Kelleher - Part ThreeIn this final section of the three-part series on how Kelleher's training and experience as a lawyer helped him as CEO of Southwest Airlines (LUV), we'll finish by looking at the importance...
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"The company must be set up so it can continue without me."The idea of setting a company up so that it can go on without us seems obvious at first; and as far as the fact of continuity...it is. But...
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Apr12
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"When you reach an obstacle, turn it into an opportunity."There is something about obstacles that we need to learn to embrace. Part of it is that if nothing is ever standing in your way, you're not traveling on any road....
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Thinking Small Series - Part 4In this section of the "Thinking Small" series, we'll take a look at the importance of pushing authority and responsibility down into the organization. Walton considered this crucial to the success of Wal-Mart (WMT).There are...
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Business ResultsThe underlying reason Warren Buffett has given for not splitting Berkshire Hathaway (BRK-A) stock has been his desire for attracting rational, long-term investors ... those who who won't be attracted to the company based upon arbitrary actions like splitting...
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Apr11
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Rarely do surprises occur. Welch sets precise performance targets and monitors them throughout the year.The extraordinary commitment by Welch to make sure that all those in General Electric (GE) knew what was expected of them had some powerful other benefits...
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Minyanville has created a new animated business TV show called, "Hoofy and Boo's News and Views." They serve as commentators and news personalities as they deliver spin and humor related to the days events.Minyanville founder and CEO, Todd Harrison said...
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How Being a Lawyer Helped Kelleher - Part TwoIn the first part of this section on 'How Being a Lawyer Helped Kelleher,' we talked about how the focus on finding the facts and not listening to gossip are so important....
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Apr10
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The Lesson from the Failure of His Magazine "Event"With Virgin having an interest in the event-listing business, Branson decided he wanted to compete with a magazine called "Time Out," in that very space. This particular project Branson got his butt...
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"We must have a theme, a goal, a purpose in our lives. If you don’t know where you’re aiming, you don’t have a goal." Man |