Southwest Airlines

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Unsing the case, Developing Leaders at Southwest Airlines (attached)  answer the following question:

  • How does Southwest develop its leaders?
  • What is the role of culture and fit in success of the company?
  • How does power impact the power holders and those who are subject to it?
  • How does power impact the power holders and those who are subject to it?
  • What are the key elements of Southwest culture?
Leadership in Action
Developing Leaders at Southwest Airlines
In the highly turbulent airline industry, Southwest Airlines (SWA) is one of the healthiest companies, continuing growth and profit in a climate that is threatening the
survival of other airlines. Marketing strategist Micah Solomon believes the company's culture is the key to its success: "A consciously developed customer-centered
culture is a business advantage that will serve you for years-and inoculate you against competitive inroads" (Solomon, 2012). SWA's special culture emphasizes
individuality, taking care of people, and fun. "Learn from your mistakes; take the initiative; and listen to your heart" (The power of persistence, 2002) are simple and
powerful words from Colleen Barrett, the former CEO of Southwest Airlines, who was with the airlines much of her career and as is the case with other members of the
leadership team, including founder Herb Kelleher and current CEO Gary Kelly. David Ridley, the recently retired vice president of marketing and sales, talks with pride
about Southwest's "warrior spirit," which focuses on caring, emotions, and putting employees first (Warrior Spirit, 2006). While Colleen Barrett headed the company, she
also had the title of Queen of Hearts for sustaining a culture that is "fun, spirited, zesty, hard-working, and filled with love. Love is a word that isn't used too often in
corporate America, but we've used it at Southwest from the beginning" (Shinn, 2004: 18).
In addition to a supportive culture, for which Kelleher and Barrett can take much credit, Southwest is deliberate about developing leaders and leadership. Talking about
the company's HR practices, Barrett describes, "We are very, very disciplined about hiring and we're very, very disciplined about mentoring and coaching.... We're a very
forgiving company in terms of good honest mistakes, but we're not forgiving about attitude and behavior and demeanor" (Fisher, 2007: 18). Barrett suggests that
developing employees and maintaining the culture starts with the hiring process by carefully selecting people and being very clear about expectations and company
culture (Sekula, 2007). Programs to develop leaders range from formal leadership training for everyone, including frontline employees, to presentation by outside
consultants, leadership briefings, and communication about leadership in company bulletins. Managers and company leaders also make a point to include the topic of
leadership in their regular interactions and strive to demonstrate the principles the company embraces (Shin, 2003). They also provide credible role models for others. For
example, Kelleher works from a small windowless office and treats all employees regardless of their rank with care and respect (Warrior Spirit, 2006). The goal of training
and development at Southwest is to perpetuate a culture and a leadership style that have been effective. Barrett says that they are not shy about closely monitoring their
employees, getting rid of people who do not fit in, promoting those who represent the spirit of the company, and holding their leaders and managers accountable (Sekula,
2007). They are also not shy about standing up for employees who do their jobs well, even when customers complain (Warrior Spirit, 2006)
Transcribed Image Text:Leadership in Action Developing Leaders at Southwest Airlines In the highly turbulent airline industry, Southwest Airlines (SWA) is one of the healthiest companies, continuing growth and profit in a climate that is threatening the survival of other airlines. Marketing strategist Micah Solomon believes the company's culture is the key to its success: "A consciously developed customer-centered culture is a business advantage that will serve you for years-and inoculate you against competitive inroads" (Solomon, 2012). SWA's special culture emphasizes individuality, taking care of people, and fun. "Learn from your mistakes; take the initiative; and listen to your heart" (The power of persistence, 2002) are simple and powerful words from Colleen Barrett, the former CEO of Southwest Airlines, who was with the airlines much of her career and as is the case with other members of the leadership team, including founder Herb Kelleher and current CEO Gary Kelly. David Ridley, the recently retired vice president of marketing and sales, talks with pride about Southwest's "warrior spirit," which focuses on caring, emotions, and putting employees first (Warrior Spirit, 2006). While Colleen Barrett headed the company, she also had the title of Queen of Hearts for sustaining a culture that is "fun, spirited, zesty, hard-working, and filled with love. Love is a word that isn't used too often in corporate America, but we've used it at Southwest from the beginning" (Shinn, 2004: 18). In addition to a supportive culture, for which Kelleher and Barrett can take much credit, Southwest is deliberate about developing leaders and leadership. Talking about the company's HR practices, Barrett describes, "We are very, very disciplined about hiring and we're very, very disciplined about mentoring and coaching.... We're a very forgiving company in terms of good honest mistakes, but we're not forgiving about attitude and behavior and demeanor" (Fisher, 2007: 18). Barrett suggests that developing employees and maintaining the culture starts with the hiring process by carefully selecting people and being very clear about expectations and company culture (Sekula, 2007). Programs to develop leaders range from formal leadership training for everyone, including frontline employees, to presentation by outside consultants, leadership briefings, and communication about leadership in company bulletins. Managers and company leaders also make a point to include the topic of leadership in their regular interactions and strive to demonstrate the principles the company embraces (Shin, 2003). They also provide credible role models for others. For example, Kelleher works from a small windowless office and treats all employees regardless of their rank with care and respect (Warrior Spirit, 2006). The goal of training and development at Southwest is to perpetuate a culture and a leadership style that have been effective. Barrett says that they are not shy about closely monitoring their employees, getting rid of people who do not fit in, promoting those who represent the spirit of the company, and holding their leaders and managers accountable (Sekula, 2007). They are also not shy about standing up for employees who do their jobs well, even when customers complain (Warrior Spirit, 2006)
The concept of fit between the person and the company is central to Southwest's success. Through careful hiring and training, the company makes sure that those
who do not fit well do not get hired or do not stay long. Caring about others, authenticity, and maybe most important, a sense of humor, are prerequisites for being
successful at Southwest. Ridley says: "Our leaders have a genuine love for people. We don't want you in leadership if you don't. If it's all about you we don't want you-
there are no BS [Big Shot] leaders at Southwest" (Warrior Spirit, 2006). Barrett encouraged the culture by creating a Culture Committee, a group made up of a team of 100
employees who preach and teach the company's unique culture (Medley, 2006). In addition, local culture committee's members are further entrusted with the task for
maintaining and strengthening the Southwest SPIRIT (always in capital letters). The culture even has its own language, which includes "Southwest Family," "Servant
Leadership," and "New Hires," all used as proper nouns to indicate their importance to the company (Medley, 2006).
Although leaders play a key role in developing others, everyone at Southwest is in charge of that culture. Through strong training programs, promotions from within, the
telling and retelling of many stories, for which the company cofounder and past CEO Herb Kelleher is famous, the culture is ever present. The company offices are
decorated with memorabilia that further reinforce Southwest ideals. Kelleher ensured that current and upcoming leaderships are in place and guarantee "life after Herb"
(Medley, 2006). Barrett played a further role in developing leaders, mentoring anyone who had "a passion for what he or she does or who has a desire to learn" (Shin,
2003), and she empowered her followers to do the same. She stated, "When New Hires ask me all the time, 'How are you going to keep the culture?' I say, 'I'm not. You
are.' " (Medley, 2006). The new CEO, Gary Kelly, seems to be carrying on much of the tradition. He showed up dressed as Edna Turnball, the mom in the musical
Hairspray, at a recent company Halloween party (Bailey, 2008).
Transcribed Image Text:The concept of fit between the person and the company is central to Southwest's success. Through careful hiring and training, the company makes sure that those who do not fit well do not get hired or do not stay long. Caring about others, authenticity, and maybe most important, a sense of humor, are prerequisites for being successful at Southwest. Ridley says: "Our leaders have a genuine love for people. We don't want you in leadership if you don't. If it's all about you we don't want you- there are no BS [Big Shot] leaders at Southwest" (Warrior Spirit, 2006). Barrett encouraged the culture by creating a Culture Committee, a group made up of a team of 100 employees who preach and teach the company's unique culture (Medley, 2006). In addition, local culture committee's members are further entrusted with the task for maintaining and strengthening the Southwest SPIRIT (always in capital letters). The culture even has its own language, which includes "Southwest Family," "Servant Leadership," and "New Hires," all used as proper nouns to indicate their importance to the company (Medley, 2006). Although leaders play a key role in developing others, everyone at Southwest is in charge of that culture. Through strong training programs, promotions from within, the telling and retelling of many stories, for which the company cofounder and past CEO Herb Kelleher is famous, the culture is ever present. The company offices are decorated with memorabilia that further reinforce Southwest ideals. Kelleher ensured that current and upcoming leaderships are in place and guarantee "life after Herb" (Medley, 2006). Barrett played a further role in developing leaders, mentoring anyone who had "a passion for what he or she does or who has a desire to learn" (Shin, 2003), and she empowered her followers to do the same. She stated, "When New Hires ask me all the time, 'How are you going to keep the culture?' I say, 'I'm not. You are.' " (Medley, 2006). The new CEO, Gary Kelly, seems to be carrying on much of the tradition. He showed up dressed as Edna Turnball, the mom in the musical Hairspray, at a recent company Halloween party (Bailey, 2008).
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