Module 6
Leadership
Leadership is the process of influencing people to act
in a particular way. In an organization, effective
leadership encourages people to do things consistent
with the company’s mission and goals. Leaders do
not “force” people to do what they want, nor do they
just allow people to do whatever they please.
Instead, leaders use their skills, traits, and abilities to
change people’s attitudes, beliefs and behaviors.
People who study organizations have long been
fascinated with the question of what makes a good
leader. Think about your own experience with
bosses, coaches, teachers, or group leaders. Have
some been more effective than others? Why do you
think some people are better leaders than other
people are?
There are a number of theories that try to explain
differences in the quality of leadership. Each of them
contributes something unique to our understanding of
how and why some people are able to lead better
than others. By looking at Southwest Airline’s
leaders, we can better understand the components of
some of these theories of leadership.
SOUTHWEST’S LEADERSHIP STYLE
Generally, the style of leadership at Southwest is
collaborative and participative. The company
expects managers to be genuinely interested in their
subordinates. Southwest's’philosophy dictates that
managers listen to their people and use subordinates’
input and insight to solve problems and achieve work
goals; no manager is allowed to be a dictator.
Leadership training programs emphasize the “soft
skills” of communication, listening, and motivation as
keys to a successful management career with the
airline.
This kind of leadership
is also known as a
“Democratic Style.”
Leaders in this style
involve employees in
decision making,
delegate authority,
encourage employee
participation in deciding
work methods and
goals, and use
feedback to coach
employees for better
performance.1
1
Robbins, S. P., &
DeCenzo, D. A. (1998).
Fundamentals of
management (2nd ed.).
To be successful, Southwest’s’ leaders rely heavily on
the fact that workers share both their goals for the
company and their work values. As we’ve already
noted, Southwest is careful to hire people that can
develop a real concern for their internal and external
customers. Leaders at Southwest take advantage of
this. Because they know employees will act for the
good of the company, they can delegate a great deal
of decision-making authority. Leaders at Southwest
are taught to express belief in their subordinate’s
talents and capabilities. As you might expect, they
are also consistently reminded not to take themselves
too seriously.
SIDEBAR: Bob Rapp,
VP of Systems at
Southwest, is described
by his subordinates as a
“visionary.” Ken
Rundas, Director of
Solutions and Systems,
said, “He’ll leave every
opportunity, even
though it sometimes
may be more difficult in
the short term, for
people to develop
through a situation by
doing it on their own
with him coaching from
the sideline.”3
LEADERSHIP TRAINING AT SOUTHWEST
Southwest holds leadership classes for
management-level employees about every two years.
Here, employees learn the difference between merely
being a manager who directs the work of others and
being a leader who encourages and promotes others.
CEO Herb Kelleher describes the message of these
seminars as follows: “We tell these employees to stop
managing; when they manage themselves, they are
ready to start leading. We tell them to stop
administering because we want them to be leaders.
And that’s what we’re looking for because leaders are
so scarce. The focus is entirely upon how to get
different people with different backgrounds to work
together harmoniously for a goal. What makes
companies ultimately perform well is when everybody
is leading and there’s a little less management and
administration – bureaucracy, in other words.”2
Leadership Classes:
Most of Southwest’s
internal training is
conducted at their
“University for People”
located at Dallas’ Love
Field. Trainees can
walk directly from the
Southwest Airline gate
to their classroom, then
fly home again that
evening. (PHOTO OF
CORP HQ @
http://www.iflyswa.com/i
nfo/photos.html)
CHOOSING TO LEAD
Southwest recognizes that many people can advance
to managerial positions where they direct the work of
other people. However, only a few people have the
necessary talents and skills to really lead others.
Consequently, the company is constantly on the
lookout for people that demonstrate
3
Upper Saddle River, NJ: Prentice Hall.
2 Kelleher, H. (1998, May/June). Customer Service: It Starts at
Home. The Secured Lender, v54#3, pp. 68-73.
Malloy, A. (1996,
June). On the job:
Southwest Airlines.
Computerworld, p. 47+.
that they have what it takes to lead. But what
identifies a potential leader?
WHAT MAKES A GOOD LEADER?
Many researchers believe that some people’s
personal characteristics make them better leaders
than others. This belief is known as the “Great
Person Theory.” People who subscribe to this theory
believe that leaders possess special traits that set
them apart from other people. The theory was most
popular early in the twentieth century, and prompted a
significant amount of research. We now know that
successful leaders are, as you would expect,
intelligent people with drive. They have energy, are
ambitious, and show initiative.4
SIDEBAR: Respected
leaders usually have a
long history of hard
work and success.
Southwest’s CEO
Kelleher was a
successful athlete and
study body president at
Haddon Heights High
School and Wesleyan
University in
Connecticut. He also
made Law Review at
New York University
Law School.5
Another personal characteristics more prominent
among recognized leaders than other people is
“leadership motivation,” or the desire to take a
leadership role. This is straightforward: people who
want to be in leadership positions tend to do a better
job than those who do not. Recognizing this,
Southwest invites people to attend their leadership
training program, but does not assign or “force”
anyone into a supervisory or management role. Also,
Southwest’s pay structure favors seniority,
rather than position in the organization.
Consequently, people do not feel that they have to
take a promotion simply to get ahead financially. This
policy insures that people who are leaders at
Southwest WANT to be leaders...an important
element of their success.
Self-confidence is another important trait that most
successful leaders possess in abundance. Their
ability to believe in themselves and their ideas helps
followers to believe in them as well. Some leaders
possess a special kind of self-confidence that inspires
subordinates to see them as hero-like figures. We
call these individuals charismatic leaders. Herb
Kelleher, Southwest’s CEO, is perhaps the most
widely acknowledged charismatic leader in American
business.
4
Kirkpatrick, S. A., & Locke, E. A. (1991). Leadership: Do traits
matter? Academy of Management Executive, v5, pp. 48-60.
5
Labich, K. (1994, May
2). Is Herb Kelleher
America’s best CEO?
Fortune, v129#9, p.
44+.
HERB KELLEHER: A SPECIAL LEADER
The theory of charismatic leadership is based on the
premise that followers often attribute heroic or
extraordinary abilities to particular individuals.6 Herb
Kelleher’s employees see him as a hero, and his
ability to inspire their devotion is nothing short of
amazing. To celebrate a recent “bosses day,”
Southwest employees donated $60,000 to buy a fullpage ad in USA Today to thank and commemorate
Kelleher.7 At the many gatherings, both planned and
impromptu, that take place on Southwest’s corporate
headquarter’s patio, Kelleher can always be found
surrounded by a group of admiring people who find
joy in simply listening to him speak.
KELLEHER IS A CHARISMATIC LEADER
Charismatic leaders are known to inspire their
employees to do great things. Significant research
tells us that charismatic leaders tend to have high
performing, well-satisfied subordinates.8 People also
tend to like charismatic leaders personally, and so are
motivated to put forth extra effort for them.9 These
effects have certainly been seen at Southwest
Airlines. Kelleher’s leadership is one of the most
important components of Southwest’s success.
Researchers have identified a number of behavioral
characteristics that help us identify a charismatic
leader. We’ll examine some of these to explain why
6
Conger, J. A., & Kanungo, R. N. (1988). Charismatic
Leadership. San Francisco: Jossey-Bass.
7 Rigler, G. C. (1995, March). Case study: Southwest airlines.
Across the Board, v32#3, p. 56+.
8Agle, B. R., & Sonnenfeld, J. A. (1994, August 14-17).
Charismatic chief executive officers: Are they more effective? An
empirical test of charismatic leadership theory. In D. P. Moore
(Ed.), Academy of Management Best Papers Proceedings 1994,
pp. 2-6.
9 House, R. J. (1977). A 1976 theory of charismatic leadership.
In J. G. Hunt & L. L. Larson (Eds.), Leadership: The cutting edge
(pp. 189-207). Carbondale, IL: Southern Illinois University
Press.
SIDEBAR: Southwest’s
Chief Operating Officer,
Jim Wimberly has a lifesized cardboard cutout
of Herb Kelleher in his
office...sort of. Actually,
Kelleher’s head has
been transposed onto a
promotional figure for
Wild Turkey, Kelleher’s
favorite bourbon.
Herb Kelleher is widely identified as charismatic.10
1. Vision. Charismatic leaders have a compelling
goal. In some way, they want to make the future
better, and they are fully committed to achieving what
they see as possible. Kelleher’s vision is simple: he
wants to make air travel accessible to everyone. As
we noted in Module 2, his idea of a “short hop” airline
revolutionized the industry.
2. Ability to articulate the vision. Not only do
charismatic leaders have a vision of how the future
might be better, they also come up with ways to
communicate that vision to others. They allow people
to understand their dreams, and others come to first
understand and then share their vision. Charismatic
leaders aren’t afraid to talk about their ideas. They
they communicate them effectively...and often.
When you log onto the Southwest Airlines web page,
you are invited to click on a picture of Kelleher to
learn more about him. Rather than personal
information about himself, Kelleher’s web page is a
statement of his vision for Southwest Airlines.
Employees take his message about customer service
to heart: it is not unusual for a Southwest worker to
rationalize going out of their way to help a customer
because “It’s what Herb would do.”
3. Self-confidence. Charismatic leaders trust their
abilities. The have confidence in their judgment and
decisions, and this helps followers believe in them as
well. Kelleher’s self-confidence is so high that he
often pokes fun at himself for it. For example, when
asked if he ever planned on retiring, Kelleher replied
“No, because I’m immortal.”11 Through the humor,
Southwest employees got the message. There is no
doubt that Herb believes in himself.
10
The list of behaviors is taken from Conger, J. A., & Kanungo,
R. N. (1988). Charismatic Leadership. San Francisco: JosseyBass.
11 “How Herb keeps Southwest hopping” (1999, April). Money,
v28#6, pp. 61-62+.
SIDEBAR: Kelleher not
only tell his employees
about his vision for
excellent customer
service...he shows
them. Like all top
managers at Southwest,
Herb regularly spends a
day performing the job
of a typical Southwest
employee such as a
baggage handler,
reservation agent, or
flight attendant.
PHOTO OF HERB
PASSING OUT
PEANUTS AS FLIGHT
ATTENDANT
AVAILABLE ONLINE:
http://www.iflyswa.com/i
nfo/photos.html; title
“Our Chairman,
President, CEO & Flight
Attendant.”
4. Unusual, extraordinary behavior. Charismatic
leaders behave in unusual ways. They do things that
are unexpected, abnormal, and quirky. These
behaviors not only get employees’ attention, but they
make the leader...and their vision...more memorable.
Herb Kelleher personifies the silly, often goofy antics
that are commonplace at Southwest Airlines. He
appears in costume for company events, rewards
employees for telling good jokes, and makes up
songs while presenting service awards. Impromptu
celebrations are commonplace at Southwest.
Kelleher defends the cost, in both money and time, of
this practice by noting that “What we do
communicates itself to the outside world in better
service and warmer hospitality.”12 He believes that
the parties and get-togethers keep his employees
happy, and when employees are happy, they treat
customers well.
SIDEBAR: Kelleher’s
antics are so strongly
associated with
Southwest’s corporate
image that
they are even used in
recruiting
advertisements. One
ad pictured him dressed
as Elvis, with the
slogan, “Work in a place
where Elvis has been
spotted.” The ad ends
by saying, “If you see
him dressed as Ethel
Merman, ignore him;
we’re trying to cure him
of that.” TO SEE THIS
AND OTHER
SOUTHWEST ADS:
Web address is
http://www.iflyswa.com/
promotions/netads.html
THE DOWNSIDE OF CHARISMA
However, despite the positive outcomes associated
with charismatic leaders, there can be a downside for
companies with such a visible and well-known CEO
as Kelleher. One of the biggest dangers of
charismatic leadership is embedded in a central
characteristic of charismatic leaders: their selfconfidence. Sometimes people who are highly selfconfident have difficulty listening to others’ ideas,
which makes them less effective managers in the long
run. At Southwest, any tendencies Kelleher might
have in this area are well overcome by the open and
participative management style he has developed. In
fact, any employee can write to Kelleher with an idea,
problem, or suggestion at any time...and all letters are
personally answered.
Additionally, people with the ability to persuasively
communicate a vision and inspire others to share that
vision have great power...and the temptation to use
that power in negative ways might be compelling.
12
Gruner, S. (1998, May). Have fun, make money. Inc., v20#6,
p. 123+.
SIDEBAR: Luckily, by
all accounts Kelleher’s
charisma is based on a
positive and honest
mentality. As one
employee put it:
“Anyone who has ever
met Herb Kelleher will
tell you that whether
he’s talking to a U.S.
Supreme Court justice,
a member of his board
of directors, or a hotel
valet, he displays the
same level of genuine
interest and intensity.
Herb doesn’t have a
patronizing bone in his
body, and this is the
way he runs the
airline.”13
13
Freiberg, J. &
Freiberg, K. (1996,
(Historians generally agree that Adolf Hitler was a
charismatic leader.)
KELLEHER AS TRANSFORMATIONAL LEADER
Some charismatic leaders are able to avoid these
downfalls, and Kelleher appears to be one. These
leaders have charisma, but also something more: the
ability to transform and empower the people working
for them. We call these individuals transformational
leaders, and Kelleher possess some of the special
qualities of a transformational leader.
1. Intellectual Stimulation. First, transformational
leaders care first and foremost about their people.
They provide them with intellectual stimulation,
motivating them to recognize and solve problems on
their own. As we noted in Module 5, Southwest
employees are fully empowered to solve almost every
problem they encounter. Kelleher’s formal policy is,
“No employee will ever be punished for using good
judgment and good old common sense when trying to
accommodate a customer – no matter what our rules
are.”14
2. Individualized Consideration. Transformational
leaders make their employees feel as if they are
important as individual people, not just nameless
workers. In this arena, Kelleher is a master. His
ability to remember the names of, and personal
details about, literally thousands of Southwest’s’
employees is legendary. He never hesitates to credit
his staff for the success of both himself and the
airline. Under his leadership, employees are
encouraged to display personal photographs in the
office and share their lives with co-workers.
Transformational leaders enjoy similar successes to
charismatic leaders. However, because they
empower their employees and self-based action, their
impression on a company is more lasting
September). Is this company completely nuts? Executive
Excellence, v13#9, p. 20+.
14 Rosenspan, A. (1998, December). Airline soars to new
heights. Direct Marketing, v61#8, pp. 18-21.
SIDEBAR: What asked
how he has stayed
motivated for 25 years,
Kelleher says “The
people. They have the
hearts of lions, the
strength of elephants
and the determination of
water buffaloes...We
receive thousands of
letters a year from
customers commending
employees for driving
two hours to drop off
luggage, or for buying
lunch for someone who
was stranded at the
airport.”15
15
McGoon, C. (1999,
April/May). Aim low,
lefty, they’re riding
shetlands!
and positive. If a leader is only charismatic, the focus
is on the leader. With transformational leaders, the
focus is where it belongs: on the employees and the
company they form. There is little doubt that Herb
Kelleher is truly a people-focused transformational
leader.
SO...CAN HERB DO ANYTHING WRONG?
Despite the advantages that Kelleher brings to
Southwest, there are potential difficulties that should
be acknowledged. Like any high-visibility CEO,
Kelleher may draw attention to himself at the expense
of his airline. In the short run, his antics provide
Southwest with a great deal of free publicity. In fact,
when Herb arm-wrestled the head of another airline
for the right to use the advertising slogan “Just Plane
Smart,” the event was so well publicized that Kelleher
and his opponent received personalized letters from
then President George Bush. These events make
people familiar with Kelleher and his company. But in
the long run, the public needs to be more familiar with
the name “Southwest” than “Kelleher” when they look
for an airline. (Kelleher lost the contest, by the way.)
Companies with a highly visible charismatic leader
also face a difficult question: what will they do when
the leader leaves? Despite his claim to immortality,
Kelleher is thought to be planning retirement within 57 years, and his health is rumored to be failing. His
departure will be a challenge for Southwest. As Chief
Financial Officer Gary Kelly reflected, “After he
retired, you can see someone wanting to try
something different and the cry going up, ‘Herb would
never do it that way!’ That will be interesting. We’re
certainly very powerful as a company, but we’re not
invincible.”16 It will be interesting to see how
Southwest replaces their leader. Kelleher is an
important part of Southwest’s culture, and some
observers note that the company may actually have
difficulty surviving after he leaves.
Communication World, v16#5, pp. 30-32.
16 Fisher, L. (1998, July). Success in a nutshell. Accountancy,
v122#1259, pp. 28-29+
SIDEBAR: Interestingly,
Kelleher has long been
unwilling to name a
successor to his CEO
spot. Though he has
been repeatedly asked
to do so, Herb will not
name anyone, either
inside or outside
Southwest, that he
believes should take
over his job when he
retires.