Devoted to Managers and those that seek to improve their management skills

"Stay lean - it is difficult to hide poor performance."

Running a company lean has so many advantages, and we've talked a lot about them through the last couple years. Here's another one we haven't talked about yet: "Stay lean - it is difficult to hide poor performance."

The problem with being too flush with money is the temptation to increase budgets beyond what is needed just because we have it available. Don't follow the politicians who are out of control with their spending; one of the reasons it's difficult to hold them accountable because the large amount of money which hides their mistakes.

This is also true in business. When you run lean, the very leanness has an inherent ability to expose poorly performing people and areas. This is invaluable. Not because we're trying to expose people doing something wrong, but so we can catch it relatively quickly and head it off before it becomes a mountain.

Still, the exposure of poor performance can reveal weaknesses of the company that it needs to address and take care of. Money can hide a multitude of sins, but only for so long. Some companies have been devasted and bludgeoned because they couldn't find problems as too much cash hid that the problems existed.

Running a business too flush is an invitation to disaster. No business will exist without difficult times eventually coming around. Those running lean have learned to innovate and find solutions beyond simply throwing more money at it. They're the ones that can survive downturns because they've learned to "live" on less.

Lean is mean. Here's another great reason to keep running a business in that way.

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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