Gary Kelly Spreading the Luv ob Swanson, Chad Agrawal, Kim Hood, Kelly Gangl, hawn Zeiter, Debbie Crow, Randi Millard, Felecia Henderson
Dec 28, 2015
Gary KellySpreading the Luv
Bob Swanson, Chad Agrawal, Kim Hood, Kelly Gangl, Shawn Zeiter, Debbie Crow, Randi Millard, Felecia Henderson
Southwest Airlines Headquartered at Love Field in Dallas, TX Stock Symbol LUV 2013 revenue of $17.7 billion 40 out of 42 years consecutive profits Fleet of nearly 700 planes Not a company of planes, a company of people Purpose: to connect people to what's
important in their lives through friendly, reliable, and low-cost air travel
Who is Gary Kelly? Southwest Airlines CEO since 2004 27-year Southwest employee Life-long Texan Became an accountant because Dad was Attributes success to “tremendous”
support system, mentors, working hard and a “good dose of luck along the way”
Key Values and Philosophy3 Primary operating philosophies:
Pragmatic Intellectual Humanistic
Key Values and PhilosophyPragmatic approach to new situations: Goal and action management Take initiative Plan Seek efficiency
Key Values and Philosophy
Intellectual approach to new situations: Reflect & view abstractly ID themes & build causal maps Pattern recognition
Key Values & Philosophy
Humanistic approach to new situations: Network and solicit input Develop employees Be sensitive to effects on others
Key Values & Philosophy
Gary Kelly POQ scores: Pragmatic 32nd percentile Intellectual 22nd percentile Humanistic 95th percentile
Versus results of 801 MBA students
Key Values & Philosophy
Leadership Styles Pragmatic
Lead by Objectives Intellectual
Coaching Humanistic
The Servant Leader
Leadership Style - PragmaticHabits and Traits
Set high goals; create action plans; execute for results
Make the hard decision; when things go wrong they take the blame; when things go right they give others credit
Not interested in having his own way, but finding the right way
Leadership Style - Pragmatic Advancements and growth Increase number of flights Increase number of employees Increase number of destinations Future international flights Continued low fares No “nickel and dime” costs
Leadership Style - IntellectualHabits and Traits
Employee empowerment is key to success Model the way Assume followers to be partners Develop employees to reach their potential Use their heart as well as their head in
decision making Self starters
Leadership Style - IntellectualEver the Coach Seeks to improve the organization by
working on member’s performance by building long-term capabilities: Empathic Self-aware Willingness to help others
Leadership Style- HumanisticServant Leader
Follows leadership style from founder/former Southwest CEO Herb Kelleher
Builds up the organization His organization makes him successful
Humbly shares success Not interested in being a “hero” leader
Prioritizes sustainability
Leadership Style- Humanistic
“Steady, mild-mannered former accountant. ……..But don't let that fool you.
The new 49-year-old chief executive of Southwest Airlines Co. (LUV) is also
spearheading some of the most aggressive moves that the low-fare
king has made in years.”- Forbes
VisionDoing The Right Thing
Vision Strong desire to excel Live vicariously through the company Be balanced in your focus Care for your people Leadership is a choice People are dependent on credible
leadership
Vision
Vision
“If our people are inspired and motivated
then we are almost invincible.”
Focus on great people, great service, safe flying is sustainable
Focus on profits is not sustainable
Vision Culture is very much about caring Key is listening to employees Leaders should be there because they
want to be Establish ethical standards with good
checks and balances
Fundamental Truth
“It’s always about how people feel.”
Fundamental Truth“Live the Southwest Way”
Take Care of Employees First Highest paid employees in the industry 2011 employees received raises, execs didn’t Stable work environment No layoffs in 42-year history Support system Flexibility Mutual respect Recognition Improvement opportunities
Fundamental Truth“Leaders need to be people-focused.”
Essential skills for the management team Look out for the employees’ well being You just have to care Have a warrior spirit Live by the golden rule Be good humored Be competent
Fundamental Truth
“I can’t fly an airplane.
I can’t fix an airplane.
As a leader, you need your people.”
Fundamental Truth“If our customers don’t want it our employees aren’t going to be for it
either.”
Happy Employees = Happy Customers Employees are family and they are inviting
customers into our house Deliver on promises and expectations Complete dedication to customers
Fundamental Truth“Low Cost Doesn’t Mean Less Service”
Southwest has the “best people, work the hardest and provide the best service”
Company goal - 1 complaint/8 compliments Talk to customers all the time Worst thing we can say to a customer is “we’ve
cancelled your flight”
Fundamental Truth
“What customers really want is friendliness, helpfulness and
someone who cares.”
Fundamental Truth Efficiency
One type of aircraft: Boeing 737 Lower maintenance costs Limited parts Training
Social Responsibility New aircraft emissions Retrofitting older aircraft Routing efficiency
Comparisons with Our Group Group relates to Gary Kelly's humanistic approach
Most of group was high humanistic in the POQ One member matched almost exactly
Two members are high pragmatic Success in difficult financial times can require a
focus on the bottom line Member’s observations of Gary Kelly’s leadership
aligned with their POQ
Comparisons with Our Group
Comparisons with Our Group Group relates to Gary Kelly's humanistic approach
Most of group was high humanistic in the POQ One member matched almost exactly
Two members are high pragmatic Success in difficult financial times can require a
focus on the bottom line Member’s observations of Gary Kelly’s leadership
aligned with their POQ
Key Learnings Success from servant leadership and a humble
style The humanistic tendency can lead to success
Is humanistic approach as effective in non customer-based industries?
How does Southwest track progress? Gary’s humor is part of his success
Rare in business A strong, unique culture based on good values
was the foundation for success for Southwest
Group Experience “Challenge Worth Tackling”
Most really enjoyed the experience All had positive feedback
Most humanistic member doesn’t like the process of virtual teams Prefers face-to-face to assess verbal and non-verbal
Exposure to others’ perspectives and approaches were mentioned as beneficial, eye-opening, and insightful Recognized it as a growth process
Group Experience Group strengths lead to project efficiency,
democratic delegation and leadership based on needs
Statistically the experience increases in difficulty with the increase in group membership
One member enjoyed assessing not only the POQs of the team, but the comments, insights and opinions to create our group feedback to the class
Recap Southwest named ninth on Fortune’s 2014
Most Admirable Company list 20th consecutive year on list Only airline to make the top 10
Questions?