Entrepreneur Profile Herb Kelleher
Kevin Wilkins February 2004
Biography
• Born March 12, 1931 - Haddon Hts, NJ • Graduated - Wesleyan University in 1956, law degree
• Started career as clerk for NJ court
• Moved to Texas in 1961 to start law firm • Hired as Counsel by Rollin King in 1966 • 1966: Southwest Business Plan drafted on a cocktail napkin in a bar • 1971: Maiden voyage of Southwest • In 1982, named President, CEO of Southwest • Diagnosed with Prostate Cancer in 1999
• 2001: Steps down from role, serving as advisor
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Kevin Wilkins MGT771: Feb 2004
Thoughts by Herb Kelleher
• Take my job, not myself, seriously. • Trust people and they'll trust you. • A company is much stronger if it is
bound by love rather than by fear.
• If our employees aren’t satisfied,
they won’t satisfy the customer,
and unsatisfied customers don’t return.
• Title and position have nothing to do with a person’s worth.
• Manage in good times so that you're ready for bad times.
• Don’t give up.
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Kevin Wilkins MGT771: Feb 2004
Traits/Qualities
"Coaching has to emanate from the heart rather than the head because people readily recognize the difference between the two."
• Chain smoker • Loves Bourbon • Pro-union • Pro-employee • Customer is not always right • Likes employees who break the rules for the right reasons
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Kevin Wilkins MGT771: Feb 2004
Business Plan
Low-cost fares Low-cost airport hubs Convenient Schedules Recruit people not skills
Use one type of airplane
Short route service Compete - ground travel
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Kevin Wilkins MGT771: Feb 2004
Cost Cutting Strategies
• Point-to-point short haul service • Sell directly to customers • No frills, no meal service • Only uses Boeing 737’s • Carry a low debt load • Only enter new market if assured
minimum of four daily flights
• Quick gate turnaround times • Executives paid ~30% less than
competition
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Kevin Wilkins MGT771: Feb 2004
Mission Statement “Dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.”
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Kevin Wilkins MGT771: Feb 2004
Questions??
Thank You!
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Kevin Wilkins MGT771: Feb 2004
Southwest Timeline
• 1971 - Southwest takes off on its maiden voyage • 1973 - First profitable year • 1974 - Carries its one millionth passenger
• 1977 - Listed on the NYSE as "LUV"
• 1979 - Self-ticketing machines are introduced • 1982 - Herb Kelleher appointed as President, CEO • 1983 - Spreads its wings to west coast
• 1988 - Becomes the official airline of Sea World
• 1991 - Celebrates 20 years of loving you! • 1993 - Expands to the east coast • 1999 - Service to Bradley International Airport
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Kevin Wilkins MGT771: Feb 2004
Celebrating 30 Years!
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Kevin Wilkins MGT771: Feb 2004