Keeping it Family While You Grow
Kelleher was asked one time on how it kept the crazy entrepreneurial spirit of the company going while they were getting so big.
His response went back to his decision to always keep the Southwest (LUV) employee first.
Whenever he talked to those in business schools especially, they would think that this was a big problem and would inevitably ask pretty much the same question: "Which comes first, your people, your customers, or your shareholders?" They thought it was something that he couldn't answer.
But he said, "it's not a conundrum. Your people come first, and if you treat them right, they'll treat the customers right, and the customers will come back, and that'll make the shareholders happy.
Not only that, but the company made it a point to know what was happening in the lives of their people. If there was a birth, death, marriage or sickness in the family of an employee, the company was sure to contact them to see how they were doing or to recognize it if it was something to be celebrated.
Even years after an employee retires the company still keeps contact with them. Why? Because it's not a strategy, idea or way to do something to get it in return. It's a way of life that they continue living whether there is a benefit to the company or not. That's the only way it can be truly real and part of the makeup of a company.
Kelleher also said that "We've always tried to be sensitive to the needs of our people and recognize the things that are important to them in their personal lives."
The reason for all this is that only a certain type of person would work for Southwest, and who Southwest was would usually eliminate those that didn't want to be part of something like that. Kelleher didn't want those working for him that only had compensation as the motivator for working there. He wanted those that wanted to do things in an excellent way and to offer great service to people.
When all is said and done, Southwest was a family under Kelleher, that's really what all of this being said leads to. And the workers took care of their family and the visitors that happened to travel on their planes. The unprecedented prosperity of Southwest in one of the toughest businesses on earth testify to the greatness of Kelleher's leadership and the people that responded.
Other Herb Kelleher Sources:
Herb Kelleher on the Record, Part 1
Belief Model for The Leadership of Herb Kelleher (Southwest Airlines)
Herb Kelleher, Chairman, CEO and President, Southwest Airlines
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