Bob Swanson, Chad Agrawal, Kim Hood, Kelly Gangl,
Shawn Zeiter, Debbie Crow, Randi Millard, Felecia Henderson

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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

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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”

3 Primary operating philosophies:
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Pragmatic
Intellectual
Humanistic

Pragmatic approach to new situations:
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Goal and action management
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Take initiative
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Plan
Seek efficiency

Intellectual approach to new situations:
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Reflect & view abstractly
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ID themes & build causal maps
Pattern recognition

Humanistic approach to new situations:
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Network and solicit input
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Develop employees
Be sensitive to effects on others

Gary Kelly POQ scores:
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Pragmatic 32nd percentile
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Intellectual
Humanistic
22nd percentile
95th percentile
Versus results of 801 MBA students

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Pragmatic
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Lead by Objectives
Intellectual
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Coaching
Humanistic
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The Servant Leader

Habits and Traits
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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

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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

Habits and Traits
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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

Ever the Coach
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Seeks to improve the organization by working on member’s performance by building long-term capabilities:
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Empathic
Self-aware
Willingness to help others

Servant Leader
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Follows leadership style from founder/former
Southwest CEO Herb Kelleher
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Builds up the organization
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His organization makes him successful
Humbly shares success
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Not interested in being a “hero” leader
Prioritizes sustainability

“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.”

Doing The Right Thing

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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

“If our people are inspired and motivated then we are almost invincible.”
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Focus on great people, great service, safe flying is sustainable
Focus on profits is not sustainable

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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

“It’s always about how people feel.”

“Live the Southwest Way”
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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

“Leaders need to be people-focused.”
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Essential skills for the management team
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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

“I can’t fly an airplane.
I can’t fix an airplane.
As a leader, you need your people.”

“If our customers don’t want it our employees aren’t going to be for it either.”
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Happy Employees = Happy Customers
Employees are family and they are inviting customers into our house
Deliver on promises and expectations
Complete dedication to customers

“Low Cost Doesn’t Mean Less Service”
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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”

“What customers really want is friendliness, helpfulness and someone who cares.”

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Efficiency
One type of aircraft: Boeing 737
Lower maintenance costs
Limited parts
Training
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Social Responsibility
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New aircraft emissions
Retrofitting older aircraft
Routing efficiency

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Group relates to Gary Kelly's humanistic approach
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Most of group was high humanistic in the POQ
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 One member matched almost exactly
Two members are high pragmatic
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Success in difficult financial times can require a focus on the bottom line
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Member’s observations of Gary Kelly’s leadership aligned with their POQ

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Group relates to Gary Kelly's humanistic approach
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Most of group was high humanistic in the POQ
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 One member matched almost exactly
Two members are high pragmatic
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Success in difficult financial times can require a focus on the bottom line
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Member’s observations of Gary Kelly’s leadership aligned with their POQ

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Success from servant leadership and a humble style
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The humanistic tendency can lead to success
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Is humanistic approach as effective in non customerbased industries?
How does Southwest track progress?
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Gary’s humor is part of his success
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Rare in business
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A strong, unique culture based on good values was the foundation for success for Southwest

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“Challenge Worth Tackling”
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Most really enjoyed the experience
All had positive feedback
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Most humanistic member doesn’t like the process of virtual teams
Prefers face-to-face to assess verbal and non-verbal
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Exposure to others’ perspectives and approaches were mentioned as beneficial, eye-opening, and insightful
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Recognized it as a growth process

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Group strengths lead to project efficiency, democratic delegation and leadership based on needs
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Statistically the experience increases in difficulty with the increase in group membership
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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

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Southwest named ninth on Fortune’s 2014
Most Admirable Company list
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20 th consecutive year on list
Only airline to make the top 10