DO the RIGHT THING This Page Intentionally Left Blank DO the RIGHT THING

DO THE RIGHT THING This page intentionally left blank DO THE RIGHT THING

How Dedicated Employees Create Loyal Customers and Large Profits

JAMES F. PARKER Vice President, Publisher: Tim Moore Associate Publisher and Director of Marketing: Amy Neidlinger Editor: Yoram (Jerry) Wind Acquisitions Editor: Jennifer Simon Editorial Assistant: Pamela Boland Development Editor: Russ Hall Digital Marketing Manager: Julie Phifer Marketing Coordinator: Megan Colvin Cover Designer: The Ingredient Managing Editor: Gina Kanouse Project Editor: Anne Goebel Copy Editor: Krista Hansing Editorial Services, Inc. Proofreader: Water Crest Publishing, Inc. Senior Indexer: Cheryl Lenser Compositor: Nonie Ratcliff Manufacturing Buyer: Dan Uhrig © 2008 by Pearson Education, Inc. Publishing as Prentice Hall Upper Saddle River, New Jersey 07458 Prentice Hall offers excellent discounts on this book when ordered in quanti- ty for bulk purchases or special sales. For more information, please contact U.S. Corporate and Government Sales, 1-800-382-3419, [email protected]. For sales outside the U.S., please contact International Sales at [email protected]. Company and product names mentioned herein are the trademarks or registered trademarks of their respective owners. All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. Printed in the United States of America Second Printing February 2008 ISBN-13: 978-0-13-234334-3 ISBN-10: 0-13-234334-7 Pearson Education LTD. Pearson Education Australia PTY, Limited. Pearson Education Singapore, Pte. Ltd. Pearson Education North Asia, Ltd. Pearson Education Canada, Ltd. Pearson Educatión de Mexico, S.A. de C.V. Pearson Education—Japan Pearson Education Malaysia, Pte. Ltd. Library of Congress Cataloging-in-Publication Data Parker, James F. (James Francis), 1947- Do the right thing : how dedicated employees create loyal customers and large profits / James F. Parker. p. cm. ISBN-13: 978-0-13-234334-3 (hardback : alk. paper) 1. Southwest Airlines Co.— Management. 2. Airlines—United States—Management 3. Customer relations—United States. 4. Customer services—United States. I. Title. HE9803.S68P37 2008 387.7068’3—dc22 2007018393 To my mom, who taught me, “You’ll catch more flies with honey than with vinegar.”

And to my dad, who sat outside on the steps with the black soldiers who were not allowed to eat at the inside lunch counter during the long bus ride home to Texas after World War II.

Thanks for teaching me to do the right thing. This page intentionally left blank Contents

Acknowledgments ...... xi About the Author ...... xiii Introduction ...... 1

Chapter 1 Stumbling into the Business World . . . 5

Chapter 2 9/11 ...... 9

Chapter 3 The Question Was Answered… . . . . . 17 Chapter 4 …But I Don’t Want to Be a Corporate Bureaucrat ...... 29

Chapter 5 Getting Off the Ground ...... 33

Chapter 6 The Ten-Minute Turnaround ...... 39

Chapter 7 The Great Texas Whiskey War ...... 47

Chapter 8 I Just Couldn’t Resist ...... 53 Chapter 9 Some of the Obvious Things I Learned ...... 55

Chapter 10 We’re in What Kind of Business? . . . 65 Chapter 11 With a Little Help from Our Competitors… ...... 71

Chapter 12 Leaders Are Everywhere ...... 73 Chapter 13 Great Organizations Have Great Leaders at Every Level ...... 83

vii viii Do the Right Thing

Chapter 14 In Case You Didn’t Get It… Great Organizations Have Great Leaders at Every Level ...... 89 Chapter 15 Great Leaders Make the People Around Them Better ...... 93

Chapter 16 People Recognize a Phony ...... 97 Chapter 17 People Follow a Leader They Trust ...... 101

Chapter 18 Who Wants the “Best” People? . . . . 105

Chapter 19 Looking for the Right People ...... 109

Chapter 20 Interview for Attitude ...... 115 Chapter 21 Attitudes Also Matter at 30,000 Feet ...... 121 Chapter 22 Everybody Remembers Their Interview ...... 127

Chapter 23 Every Job Affects Others ...... 131 Chapter 24 People Need to Understand Their Mission ...... 135 Chapter 25 Shared Goals, Shared Knowledge, and Mutual Respect = A Shared Mission ...... 143 Chapter 26 Do People Think Like Employees or Owners? ...... 151

Chapter 27 Making Employees Owners ...... 155

Chapter 28 A Sense of Ownership ...... 163

Chapter 29 Make Work Fun ...... 169 Contents ix

Chapter 30 Build a Customer Service Culture ...... 173 Chapter 31 Everything He Did Was So I Could Come to Work… ...... 177

Chapter 32 Fun Can Have a Purpose ...... 181 Chapter 33 Celebrate Success and Achievement ...... 187

Chapter 34 Creating Entrepreneurs ...... 189 Chapter 35 Encourage Unconventional Thinking ...... 197

Chapter 36 Suggestion Boxes ...... 207 Chapter 37 Many Roads Lead to the Promised Land ...... 209 Chapter 38 Define the Right Goals and Give People Room to Succeed ...... 215

Chapter 39 The Two-Minute Drill ...... 219 Chapter 40 Give People Something to Believe In—Define a Grand Mission ...... 225 Chapter 41 Create a Culture in Which People Want to Do the Right Things ...... 229

Chapter 42 It’s a Family Affair ...... 233 Chapter 43 The Tactics of Success May Vary, but the Principles Are Constant . . . . 239

Chapter 44 Be Yourself and Have Some Fun . . . 247

Chapter 45 It’s a Round World ...... 251

Index ...... 255 This page intentionally left blank Acknowledgments

hen people ask me what I am doing these days, since I retired as CEO of Southwest WAirlines, I like to tell them that I am trying to avoid work, and it is a full-time job. I guess writing a book should qualify as work, but thanks to the outstanding publishing team at Pearson Education, it was a labor of joy. I want to express my sincere appreciation to Senior Editor Jennifer Simon for her role in shepherding this first time author through the labyrinthine process of turning thoughts and stories into a book, to Development Editor Russ Hall for helping me find my own voice as an author, to Associate Publisher Amy Neidlinger for her insightful suggestions, and to Anne Goebel and Krista Hansing for their prompt and bene- ficial refinements of the manuscript. Special thanks go to Publisher Tim Moore, for believing that I had something worthwhile to say, and to author Barry Rosenberg, who initially suggested that I might have a book in me. The book would not have been possible without the assistance of my longtime executive assistant, Marilyn Strickland, who understands the marvels of modern technology better than I ever will. Thanks for the week- ends and evenings you spent on this project, Marilyn. Thanks also to the two good friends who reviewed the manuscript and shared their insights and comments. Of course, I must also thank the people of Southwest Airlines, who started with a dream and turned it into an airline that changed the world. Thanks for being my inspiration, and for allowing me to be part of your team for 25 wonderful years. My greatest debt of gratitude goes to my wife and friend, Pat. Thank you for your patience, love, and strength—and for our two wonderful children, James and Jennifer. About the Author

ames Parker is a lawyer by trade, having received Jboth his undergraduate and law degrees from The University of Texas. After serving as law clerk to a federal judge and as an assistant attorney general of Texas, Jim joined the San Antonio law firm of Oppenheimer, Rosenberg, Kelleher, and Wheatley. As luck would have it, one of the cofounders of that law firm, Herb Kelleher, also cofounded a small Texas airline called Southwest, and Jim soon stumbled into the airline industry. After serving as outside counsel for Southwest for 7 years, Jim became General Counsel for 15 years and ultimately served as Southwest Airlines’ CEO for 3 years, including the period of the 9/11 terrorist attack and its aftermath. During Jim’s tenure as CEO, Southwest was the only major airline to remain profitable after 9/11. It also became the largest domestic airline in the United States in terms of passenger enplanements, and its mar- ket capitalization (the value of its outstanding stock) exceeded that of all other U.S. airlines combined. Southwest was named as the most admired airline and one of the three most admired companies in America by Fortune magazine, Airline of the Year by Air Transport World magazine, and one of the World’s Most Socially Responsible Companies by Global Finance magazine. Jim was also named co-CEO of the Year in 2001 by Morningstar.com and was named to Institutional Investor’s list of Best CEOs in America in 2004. Jim’s proudest accomplishment, however, comes from the fact that Southwest Airlines was able to pro- tect the jobs of all of its employees, with no furloughs or pay cuts in the aftermath of 9/11, while also remain- ing profitable every year and, in fact, every quarter during his tenure as CEO. Jim is presently retired from the airline industry and serves on the board of directors of the successful Texas Roadhouse restaurant company. He also serves on the Advisory Council for the MIT Leadership Center. This is his first book. Introduction

ost people have a passion for success and creative self expression somewhere deep inside Mthem. They want to be part of something meaningful, to make a contribution, and to find fulfillment in what they do. Sadly, these yearnings are often managed out of people in the unrelenting quest for pre- dictable mediocrity that most organizations pursue. People are seldom encouraged to be themselves, have fun, or seek fulfillment in their jobs. Instead, they are pushed to just do their jobs, meet their quotas, and not make waves. Think outside the box? Proceed at your own peril. A lot of companies say their employees are their most important asset, but they don’t really mean it. The truth is, they treat employees as depreciable assets, to be used up and then discarded. This is the root cause of the culture of conflict that infects many major corporations today. You can see the results in any customer service business. When you ask for help at the drug store or hard- ware store, does the person you ask groan because you

1 2 Do the Right Thing interrupted his other duties, or does he cheerfully walk you over to the proper aisle and start telling you about the products you could choose? When the cable guy shows up at your house, does he really care about your business, or does he spend most of his time telling you how lousy the cable company is and that you ought to get satellite? The truth is that employees who love their jobs will cause customers to love their company. Employees who hate their jobs will make customers hate the company. Quite simply, people who enjoy their work do a better job than people who don’t. And it doesn’t necessarily relate to how much they are paid. From the shop floor to the executive suite, it can fairly be said that the most highly paid people in their professions often do the worst jobs. The ultimate success of any organization requires consistently excellent performance at every level. Vibrant and successful organizations are not built on a feeling of detachment by employees. Rather, they are built on a culture of engagement, in which employees believe in the mission they are trying to accomplish and know that they are contributing to its success. People who are given the room to succeed usually will. For 25 years, I had the opportunity to be associated with such a vibrant and successful organization, as outside counsel, then as General Counsel, and finally for three years as CEO of Southwest Airlines. To be sure, I was always thrilled to accept the many honors that were bestowed on our company—Airline of the Year, one of the three most admired companies in America, co-CEO of the year, one of the world’s most socially responsible Introduction 3 companies, and so forth. But I never deluded myself into thinking that I had much to do with it. I knew the honors really belonged to our people, who showed their dedication and spirit every day. In fact, in our written communications at Southwest Airlines, we always capi- talized the E in Employees, the C in Customers, and the S in Shareholders, to help us remember why we were in business. As the guardian of our corporate culture, President Colleen Barrett was certain to correct any- body who did not show the proper respect for any of these three constituencies in their writing or otherwise. To those who are looking for a definitive history of Southwest Airlines; or a critical commentary on the bril- liant leadership of the company’s legendary cofounder, Herb Kelleher; or what the airline’s business strategy should be from here, this is not your book. Of course, no book that touches on Southwest Airlines can avoid some of the rich stories from its colorful past, or some mention of Herb, but this book is not really about Southwest Airlines. Rather, it is about some of the les- sons I learned from working with the people of Southwest Airlines for more than 25 years—mostly frontline workers and employees, whose deeds truly defined the culture for which Southwest Airlines became famous. The overriding lesson I learned doesn’t involve a lot of management guru buzzwords and acronyms. It is the simplest of principles, which we learned from child- hood: When in doubt, just do the right thing. It is still a pretty good rule for doing business, dealing with people, and building successful organizations. This page intentionally left blank Chapter 1

Stumbling into the Business World

hortly after the public announcement that I would become Southwest Airlines’ new CEO in June of S2001, I was on one of our planes, flying from San Antonio to Dallas. Once we were in the air and the flight attendants had finished serving their first round of refreshments (yes, you can expect more than one round on Southwest, even on a 55-minute flight), each of the flight attendants stopped by my seat to chat for a moment and wish me well. The fellow next to me, who looked like a West Texas cowboy, took note of the flight attendants’ comments. After the flight attendants resumed serving and bonding with other customers, the cowboy looked up from his newspaper and asked why the flight attendants all seemed to know me so well. “Oh, I work at Southwest,” I said. “We’re just kind of like family.” “I figured that out,” he said. “What do you do there?”

5 6 Do the Right Thing

“Well, I’ve been the General Counsel for 15 years, but I just got a promotion.” Now the cowboy curiously looked me over. “You’re that guy whose picture was in the paper.” “Yeah, I’m afraid it was in so many papers that my son and daughter want to know if they’ll ever be able to pick up a newspaper without seeing a story about their father in it.” As I chatted with the cowboy, he filled me in on some of his experiences flying Southwest Airlines. It turned out that he was actually a lawyer from Amarillo who had been flying Southwest for all of the years it had been serving that city. He told me how Southwest had revolutionized his law practice. Suddenly, Amarillo was no longer just an isolated energy and farming town in the Texas Panhandle. He could practice law anywhere in Texas now. He could appear in court in Dallas in the morning, meet a client for lunch in Houston, and attend a State Bar function in Austin in the afternoon—and still get home to sleep in his own bed that night. Besides, he said, flying Southwest was fun. The flights were usually on time, the service was great, the planes were clean, and, best of all, the employees always seemed happy and cheerful. He hated it when he had to fly someplace Southwest didn’t go. Needless to say, this was all music to my ears, and I took in every word of it. The flight seemed all too short as we made a typical Southwest landing (touch the ground, hit the brakes, push up the thrust reverser, and get to the gate early). As the passengers stepped into the aisle and began to gather their belongings, the cowboy Stumbling into the Business World 7 reached into the overhead bin and pulled out his Stetson. He turned to me with a look reflecting an inten- tion to give me some serious advice, and he did. “You’ve got a hell of a good airline here,” he said. “Don’t screw it up.” It was a fair comment. As Southwest won customer satisfaction awards time after time, while making consistent profits, researchers and competitors wondered how we did it. People had fun working at Southwest yet worked as hard and efficiently as any group of employees anywhere. Customers loved the airline, and shareholders appreciated the consistent profits. It’s like the company had some “secret sauce” that no other company possessed. Perhaps there is a grain of truth there. While it may be no secret, there are elements of corporate culture I believe in that are less than obvious. There is no hard formula or mystic process, but there is an honest, no- nonsense way of encouraging leadership up and down the ranks, of respecting each other and sharing human interests, and of hiring and nurturing that leads to a kind of corporate DNA many businesses would like to possess. There is no single pat (or secret) answer, but I’ll be glad to share some of the aspects with you. As a matter of fact, I’ll try to tell you the whole darn story, so you might as well grab your favorite refresh- ment and settle in. As you will see, refreshments do play a role in the history of Southwest Airlines. In fact, leg- end has it that the idea for Southwest was hatched on a cocktail napkin. Our story will show that there is often some serendipity and good fortune to the way certain 8 Do the Right Thing people handle a crisis or adversity, and some folks man- age to do it with a smile. While there is no single formula for success, the goal of this book is to share a few experiences that might be useful, or at least interesting, for people at all levels of any organization. So here goes. Everything I’m about to tell you is pretty much true. Index

A ATA Airlines, 204 Ackerman, Debby, 177 attitude, importance of, Air California, 201 109-114. See also Airline Deregulation Act corporate culture of 1978, 30, 53 in hiring process for pilots airline industry (Southwest Airlines), as commodity business, 121-126 65-69 in interviewing job deregulation, 30, 53 candidates, 115-119 economic impact of awards programs, September 11 terrorist 187-188, 230 attacks, 17-28 history of, 9-11 B Barrett, Colleen, 3, 12, 18, Southwest Airlines, origins 30, 252 of, 33-38 benefits package. See ticketless travel, history of, compensation 199-205 Bethune, Gordon, 67 Ambrose, Stephen, 103 Boeing 737, 56 America West, 26 brand value, 71-72 American Airlines, 200 Braniff corporate culture, 139-140, bankruptcy of, 52 144-145 competition with Southwest interrelationships of job Airlines, 39, 47 functions, 135-141 origins of Southwest Ancona, Deborah, 89 Airlines and, 35-38 appreciation of good work, price wars with Southwest 187-188 Airlines, 47-52 255 256 Index

Bullington, J. D., 252 corporate mission bureaucracy, 29-30, 189-190 commitment to, 143-149 Bush, George H. W., 76 American Airlines Bush, George W., 76 example, 135-141 business ethics. See ethics employee ownership of, business model for Southwest 151-154 Airlines, 65-69 leadership and, 79-81 creative thinking, C encouraging, 197-208 CEOs, public perception of, culture. See corporate culture 73-79 customer satisfaction Civil Aeronautics Board, as measure of success, 211 33, 36 in Southwest Airlines, 5, 8 coaching analogy (leadership), customer service 219-223 appreciation for good work, commodity business, airline 187-188 industry as, 65-69 Dell example, 215-218 compensation principles versus tactics, role in hiring, 111-114 239-245 stock options, 155-162 Round World Theory, competitive advantage of 251-254 Southwest Airlines, customer service business, 71-72 Southwest Airlines as, Continental Airlines, 67, 200 65-69 Continental Lite, 200 customer service culture, corporate culture. See also building, 173-175 attitude; mission customers (of Southwest statements Airlines), response customer service culture, after September 11 building, 173-175 terrorist attacks, ethics in, 229-232 23-25 inclusion of employees’ families in, 233-238 D Southwest Airlines versus D-Day leadership analogy, American Airlines, 83-88 139-140, 144-145 debt level of Southwest Airlines, 61-62 Index 257 decisions, as exercise of families of, inclusion in judgement, 209-214 company culture, dedication. See pride of 233-238 employees Round World Theory, Dell example, measuring 251-254 success, 215-218 sense of ownership in Dell, Michael, 215-218 company, 163-168 Delta, 200 employees (of Southwest Denison, John, 185, 203 Airlines) deregulation, 30, 53 enjoyment of work, purpose distributed leadership, 89-91 behind, 181-185 Dubinsky, Rick, 160 hiring practices, 106, 109-114 E for pilots, 121-126 economic impact of importance of, 3 September 11 interrelationships of job terrorist attacks, functions, 131-133 17-28 lawyer hiring example, efficiency of Southwest 177-180 Airlines, 39-46, 57 ownership of company, Eisenhower, Dwight, 84-85, 155-157 101-103 pride in their work, employee recognition 151-154 programs, 187-188 recognition for work, employees. See also employees 187-188 (of Southwest response after September 11 Airlines); employees terrorist attacks, 25-28 (of United Airlines) teamwork and efficiency of, customer service culture, 40-46 building, 173-175 thinking like entrepreneurs, encouraging creative 189-195 thinking, 197-208 employees (of United enjoyment of work, Airlines), ownership 169-172 of company, 157-162 exercising judgement of, enjoyment of work, 169-172 209-214 attaining leadership, 247-249 purpose behind, 181-185 258 Index

Enron Corporation, 75-78 Halloween celebrations at entrepreneurs, thinking like, Southwest Airlines, 189-195 183-185 ethics, in corporate culture, Hart, G. J., 243 229-232 Health South, 78 expectations, conveying hiring practices, 105-107 during job interview, interviewing job candidates, 127-130 115-119 experience, role in hiring, expectations conveyed 110-111 during, 127-130 lawyer hiring example, F 177-180 families of employees, at Southwest Airlines, inclusion in company 109-114 culture, 233-238 for pilots, 121-126 fare structure changes at history Southwest Airlines, of airline industry, 9-11 47-52 of Southwest Airlines, Fastow, Andrew, 77 33-38 Financial Accounting of ticketless travel, 199-205 Standards Board, 229 Hitler, Adolph, 84, 87-88 flight, history of, 9-11 Howdy’s, 181, 183 Franklin, Bill, 40-42 hub-and-spoke route system, front line leadership, 58-60 importance of, 80-81, Huntsman, Jon, 232 89-91 Frontier Airlines, 201 I–J fun. See enjoyment of work interrelationships of job functions, 131-133, G–H 143-149 Gates, Bill, 74 American Airlines example, Gittell, Jody Hoffer, 138, 135-141 143, 149 interviewing job candidates, goals. See measuring success 115-119 Golden Rule, 251-254 expectations conveyed Golden, Mike, 202-205 during, 127-130 Goodwin, Jim, 162 JetBlue Airlines, 203 Index 259 job functions, interrelation- litigation, in origins of ships of, 131-133, Southwest Airlines, 143-149 35-38 American Airlines example, 135-141 M job interviews. See interview- Malone, Tom, 213 ing job candidates McCartney, Scott, 143, 145 jobs, missions versus, 225 measuring success, 209-214 judgment, exercising, 209-214 Dell example, 215-218 Midway Airlines, 19, 201 K–L Miller, Wilbur K., 38 Kelleher, Herb, 3, 22, 27, mission statements, 225-227. 30-35, 54, 74, 204 See also corporate King, Martin Luther, 180 mission King, Rollin, 34-35 missions, jobs versus, 225 Knight, Bobby, 220 Montgomery, Bob, 195 Kozlowski, Dennis, 78 Morris Air, 203 Kraft, Bob, 167 Muse, Lamar, 37, 51 Krzyzewski, Mike, 220 N–O Lasorda, Tommy, 93 Neel, Debbie, 177 lawyer hiring example, Neeleman, David, 203 177-180 New England Patriots, 167 Lay, Ken, 76-77 Normandy invasion leader- leadership ship analogy, 83-88 attaining, 247-249 Northwest Airlines, 200 avoiding phoniness in, 97-99 on time performance, as coaching analogy, 219-223 measure of definition of, 222 success, 211 distributed leadership, operational excellence 89-91 of Southwest Eisenhower example, Airlines, 62 101-103 Oppenheimer, David, 177 importance of, 73-81 Oppenheimer, Rosenberg, qualities of, 93-96 Kelleher & Wheatley World War II analogy, law firm, 31, 177 83-88 organizational culture. See corporate culture 260 Index

origins. See history phoniness in leadership, Ortiz, Steve, 234-235, 243 avoiding, 97-99 ownership Piedmont Airlines, 201 of corporate mission, pilots, hiring process at 151-154 Southwest Airlines, by employees 121-126 Southwest Airlines, point-to-point route system, 155-157 58-60 United Airlines, 157-162 price, as part of value, 71-72 employees’ sense of, price wars, Southwest Airlines 163-168 versus Braniff, 47-52 Ozark Airlines, 201, 253 pride of employees, 151-154 principles, tactics versus, 233, P 239-245 parties at work, purpose of, profit-sharing plans, 155-156 181-185 profitability, as measure of past conduct, questions success, 210 about during job PSA (California intrastate interviews, 116 airline), 34, 201 people. See also employees enjoyment of work, Q–R 169-172 qualities of leadership, 93-96 purpose behind, 181-185 quality, as part of value, hiring practices, 105-107 71-72 at Southwest Airlines, Ramirez, Pete, 32 109-114 recognition for good work, interviewing job 187-188 candidates, 115-119, relational coordination, 139, 127-130 143, 149 pride in their work, respect, in leadership, 95-99 151-154 Ricks, Ron, 182, 185 performance, interrelation- Rommel, Erwin, 88 ships of job Roosevelt, Franklin D., 84 functions, 131-133, Roosevelt, Theodore Jr., 86 143-149 Round World Theory, American Airlines example, 251-254 135-141 Index 261 route systems, hub-and-spoke economic impact of versus point-to-point, September 11 terrorist 58-60 attacks, 17-28 rules, ethics and, 229-230 efficiency and teamwork of, Rundstedt, Karl R. G. von, 88 39-46, 57 Ruppel, Jim, 18, 187 employee ownership, 155-157 S employees’ sense of safety record, as measure of ownership, 166-168 success, 211 encouraging creative salary. See compensation thinking, 199-205 Sarbanes-Oxley Act, 229 enjoyment of work, purpose September 11 terrorist behind, 181-185 attacks, 9-15 ethics of, 229 economic impact of, 17-28 exercising judgment, shareholders (of Southwest 212-214 Airlines), response fare structure changes, after September 11 47-52 terrorist attacks, 25 hiring practices, 109-114 silo mentality, 209 lawyer hiring example, simplicity of Southwest 177-180 Airlines, 60-61 for pilots, 121-126 Skilling, Jeff, 77 honors for, 2 Southwest Airlines. See also inclusion of employees’ employees (of families in company Southwest Airlines) culture, 236-238 Airline Deregulation Act keys to success, 55-63 of 1978, effect of, 30 mission statement, 225-227 awards of, 230 operational excellence brand value, 71-72 of, 62 business model, 65-69 origins of, 33-38 corporate culture, American people, importance of, 3 Airlines culture versus, point-to-point route system, 139-140, 144-145 58-60 customer satisfaction, 5, 8 principles versus tactics, debt level of, 61-62 244-245 Round World Theory, 251-254 262 Index

during September 11 conviction for antitrust terrorist attacks, 11-15 violations, 52 simplicity of, 60-61 origins of Southwest The Southwest Airlines Way Airlines and, 33-38 (Gittell), 138 Texas Roadhouse, 233-236 Spears, Dave, 191-195 principles versus tactics, sports analogy (leadership), 239-244 219-223 The Three Amigos (film), 185 stability in business, 29-30 ticketless travel, history of, stock options, 155-162 199-205 success Ticketmaster, 180 measuring, 209-214 trust, in leadership, 95-103 Dell example, 215-218 TWA, 200 of Southwest Airlines, keys two-minute drill analogy to, 55-63 (leadership), 219-223 suggestion boxes, 207-208 Tyco, 78 Summitt, Pat, 220 U–V T unconventional thinking, tactics, principles versus, 233, encouraging, 197-208 239-245 United Airlines, 200 Taylor, Kent, 233, 242-243 employee ownership, teamwork 157-162 importance of, 143-149 United Shuttle, 200 sense of ownership and, US Airways, 161, 200 163-168 value, as price and quality of Southwest Airlines, combination, 71-72 39-46, 57 The Victors—Eisenhower and terrorist attacks on His Boys: The Men of September 11, 2001, World War II 9-15 (Ambrose), 103 economic impact of, 17-28 von Luck, Hans, 88 Texas Aeronautics Commission, 35 W–Z Texas International Airlines Walton, Sam, 75 competition with Southwest Welch, Jack, 74 Airlines, 39, 47 Western Airlines, 201 Index 263 whistleblower protections, 229 Williams, Ted, 93 Wilson, Charles E., 30 wind tunnels, invention of, 10 Winners Never Cheat (Huntsman), 232 Woodruff, Paul, 230, 232 work enjoyment of, 169-172 attaining leadership, 247-249 purpose behind, 181-185 recognition for, 187-188 World War II leadership analogy, 83-88 Worldcom, 78 Wright, Orville and Wilbur, 9