Priceless Lessons from a Business Legend
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Herb Kelleher passed away in January at the age of 89.
He was the co-founder and long time CEO of Southwest Airlines. A pioneer in a difficult industry littered with failures.
From humble beginnings, Southwest Airlines has flourished. It now flies 120 million passengers a year and employs more than 58 000 people. It’s been profitable every year since two years after it was founded. Every year!
In 2016 it received 178 299 resumes from people who want to work there.
The company is an inspiration.
It’s changed the lives of millions of people. Has an eye-watering reputation for customer service. And it’s created incredible economic value. A $10,000 investment in the Southwest IPO was worth $10.2 million thirty years later.
What lessons can we learn from the life of Herb Kelleher?
Once the company got into a dispute with a competitor. It was over an advertising tagline, “Just Plain Smart”. Rather than litigate Kelleher suggested an arm wrestle with the other CEO.
They went through with it. Mr. Kelleher lost. But it was such a good experience that the CEO let Southwest keep the tagline.
I hope they apply to yours? Good luck and please comment below.
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