Herb Kelleher
Strategic Concepts & Mechanics
Primary Evidence
"Ken Iverson’s view of risk was similar to a story Herb Kelleher told about Thomas Watson, the disciple of John H. Patterson."
"For John Patterson, the vision was more than providing the best cash register; it was keeping employees from stealing from their employers. For Simon Marks, it was to bring high-quality clothing and other merchandise to the masses. For Sol Price, it was to sell the best products at the lowest price. For Les Schwab, it was to give the customer the best service and to provide opportunities for employees to succeed. For Herb Kelleher, it was to bring flying to the masses, with the cheapest fares and best customer service. For Chester Cadieux, it was to provide customers with the greatest convenience. For Ken Iverson, it was to become the most efficient and cheapest steel operator. In every case, all employees knew their company’s mission and embraced it fully."
"John H. Patterson —National Cash Register Simon Marks —Marks & Spencer Sol Price —FedMart & Price Club Les Schwab —Les Schwab Tire Centers Herb Kelleher —Southwest Airlines Chester Cadieux —QuikTrip F. Kenneth Iverson—Nucor 3G partners —Garantia, Lojas Americanas, and Anheuser-Busch InBev"
"Intelligent Fanatic CEO Characteristics CEO Industry Experience Long-Term View Superpower of Incentives Ownership Mind-Set Productive Paranoia Experimentation Decentralized John H. Patterson None ✔ High High High ✔ Yes Simon Marks Minimal ✔ Medium High High ✔ Yes Sol Price None ✔ Medium High High ✔ Yes Les Schwab None ✔ High High High ✔ Yes Herb Kelleher None ✔ High High High ✔ Yes Chester Cadieux None ✔ High High High ✔ Yes Ken Iverson None ✔ High High High ✔ Yes 3G partners None ✔ High High High ✔"
"Herb Kelleher at Southwest was famously quoted as saying he had predicted eleven out of the last three recessions."
"the problem with pragmatism is that it rapidly becomes a habit, and short-term gratification – expressed in profits, cash and the praise which goes with them – becomes a drug that drives out long-term customer-related aspirations. It takes a rare visionary – people such as Henry Ford, Ray Kroc of McDonald’s, Ingvar Kamprad of IKEA, and Southwest Airlines’ Herb Kelleher – to insist on rock-bottom prices; or, as with Steve Jobs, fantastic products and a simple, intuitive customer experience. It takes an exceptional person to take on the risk of this approach – the risk of going bust."