Saturday, September 21, 2013

Leadership Secrets of Gary Kelly, Chairman CEO, Southwest Airlines




Leadership is..."Effectively supporting your team of Employees." --Gary Kelly

Since 2005, Gary Kelly is the Chairman of the Board, Chief Executive Officer and President of Southwest Airlines Co., the world's largest low-cost carrier headquartered in Dallas, Texas.  Starting with the company in 1986 as Controller, Gary moved his way up through various positions namely Principal Accounting Officer, Vice President of Finance and finally served as Executive Vice President and Chief Financial Officer from 2001 to 2004 until he was made the President and CEO.  Before he joined the company, he served as Audit Manager of Arthur & Young Company in Dallas and Systems Center Inc., a computer software provider.

Aside from Southwest, he also sits in the board as independent director of several corporations and trade associations. A recipient of many awards and honors, he has been honored as one of the best and influential executives in America.  He is a Certified Public Accountant and received a BBA in Accounting from the University of Texas at Austin where he serves on its Business School Dean’s Advisory Council and Accounting Department Advisory Council. He is also a Member of Advisory Council of its McCombs School of Business.

Gary Kelly

As his company’s CEO, Gary Kelly has a unique leadership style which is perhaps not found in most of America’s CEOs or at least among those who are in the airline industry.  Very charismatic, his style is so perfectly aligned with the company’s culture of relaxed, happy people.  For instance, he is trouper enough to come to the office on Halloween in pink dress complete with size-14 high heels.  As one New York Times writer commented:  “It suggest to workers that Mr. Kelly is a little crazy…and perhaps the kind of person others might want to follow into battles”. 

Personal and Organization Values
Gary’s personal values were shaped by the good-old fashioned Southwestern brand of good morals and integrity instilled in him by his father with whom he developed a special father and son relationship. These qualities he brought along with him at Southwest and manifested in the way he conducted himself in his day-to-day activities.  His values are centered on encouraging a work atmosphere where people are having fun and enjoying their jobs, yet doing their jobs well.

How Gary’s Values Impact the Organization
The four work values of people at Southwest:  achievement, concern for others, honesty and fairness are all aligned with Kelly’s values. Honesty and concern for others are very present in the organization.  Employees are encouraged to treat others with respect and compassion. To observers, the company’s mission statement, "The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit", is very evident in the values of George Kelly and his fellow employees.  The culture that he has created at Southwest emphasizes a laid back and efficient environment.  In a Southwest Airlines literature, author and HR consultant Libby Sartain writes, “Southwest’s culture communicates, ‘Bring your personality and your sense of humor to work’”.  Kelly’s instrumental values of honesty, independence, open-mindedness, cheerfulness and imagination shaped the behaviors in the organization that moved people to achieve goals or meet objectives.

Gary’s Strengths and Weaknesses
To observers, Gary is human enough to possess human qualities and weaknesses.  What made him to what he is today, a successful executive admired by many people, are his values, positive attitude and upbringing.  These qualities, many believed, pushed him up to his present stature.  The values of hard work, honesty, humility and concern for other people are his greatest strengths.  In the corporate world populated by business predators and opportunists, these very same qualities are also looked at as signs of being soft.  To many, the conventional wisdom in corporate success is “nice guys don’t win ball games” and this is one way to describe his weakness.  He is too nice to a fault.  Researching further his personal and professional life, the press provides a rich source of information about him.  But there is not much to dig about his weaknesses. Is he too good at hiding them like how he sometimes appeared to be during public appearances?

The Main Ingredient of Gary Kelly’s Success
The secret to Gary’s success that many people overlooked is his intelligence.  Coupled with the ability to use that intelligence to his advantage, that to me is his secret weapon.  Since his younger days in college, this quality helped him excel in his studies and be among the top of the class when he finished Accounting at the University of Texas.  This same intelligence led him to land a good job at Arthur & Young Company.  Call it luck but being assigned to the Southwest account placed him in an advantageous position to again use his intelligence to see a future in the company.  As a former outside accountant of the airline company, he was bright enough to see all the signs that pointed to a bright career ahead of him.

Group Dynamics
Under Gary Kelly’s leadership at Southwest Airlines, it is very evident how communications and collaboration as well as power and politics have great influence on its group dynamics, especially on the company’s decision-making process.  Everyone is attuned to what the company’s mission is and everyone has internalized it as almost gospel truth, and it shows in the individual actions of its more than 40,000 employees.  At Southwest power and politics means empowerment of each and every one of them to make on the spot decisions to please passengers. Anecdotes after anecdotes have shown this to be true.  Like the pilot who decided to wait for a father who’s attending to a dying son but was stuck in traffic; or the plane and ground crews who used their credit cards to help a distressed woman get transportation and hotel accommodation in a strange city.  This mindset, a product of effective communications and collaboration within the organization, kept on moving all these thousands of executives and employees across America to act as one organism 24/7.  Talk about group dynamics?  Gary Kelly and Southwest have so much to teach us on the subject.  

Photo Credits:   About Southwest Retrieved from http://www.southwest.com/html/about-southwest/

This article is an excerpt of a paper I wrote at this question and answer site https://www.likeplum.com/ask?aid=205
 



Saturday, July 27, 2013

Where did the idea of Facebook come from?


Facebook is one good example of how a simple idea can become one great enterprise such as it is today. 

Where did the idea behind Facebook come from? 

Most of us are now familiar with the story that Facebook was started by Mark Zuckerberg with some friends in his dorm during his college days at Harvard University.  But maybe only a few know that the humble seed of this great business idea was actually “planted” about a couple of years before he went to Harvard.
            
                                                 Google Photo

This seed may have started germinating in Phillips Exeter Academy, a private boarding school for grades 9 to 12 located in Exeter, New Hampshire.  Exeter is a prestigious preparatory school and is listed among the “best 10” of elite and famous boarding schools in the New England region of the U.S. such as Philips Andover, Deerfield Academy, St. Paul’s and Choate Rosemary Hall.

The school has a closely-knit community of students that lives on campus most of the time.  The students like to be referred to as “Exonians” and pride themselves in having a strong group identity with rich culture and traditions.

     This is the environment where Mark spent the last two years of high school before he went to Harvard.  Every year, each new and returning student gets a student directory.  Upon arrival Mark got his own copy as well of “The Photo Address Book” which students fondly call as “The Facebook”.

     Possibly, Mark’s years at Exeter may have an effect on his mindset.  Those two years gave him a lot of opportunities to observe and be part of the school’s socialization process and lifestyle.  This period may have a great influence on him to form in his mind the basic concept of “social community” which is what Facebook is all about.  It lay there dormant in fertile the soil of his mind just waiting for the right time to germinate.

Steffan Antonas, a Boston-based web designer and developer, wrote on his site about those years of Mark at Exeter in 2009:  Did Mark Zuckerberg's Inspiration for Facebook Come Before Harvard

 “We interviewed several of Zuckerberg’s peers this week, and they all confirmed what David W. Farrant, class of 2000, had to say: ‘The front cover says The Photo Address Book was such a mouthful. Everybody called it that’”.

Steffan wrote:  “ ‘Facebooks’ were (and still are) a huge part of the students' social experience and culture at prep schools such as Exeter. Every school in the Big Ten prints and distributes one for its students annually. When students arrive on campus each fall, the rhythm of their social lives is predominantly set by their dormitories, their class year (i.e. seniority), and their proximity to friends in other houses. Because students aren't allowed cell phones on campus and living accommodations are in such flux from year to year (they change houses and phone numbers annually), these ‘Facebooks’ are a valuable resource for students”.  



He continued: “Of course, not only do students need the directory to find and contact their peers, but the books become part of the culture of bonding between classmates and friends, as students use it to see where their peers live, who's hot and who's not, who lives with who, and who the new kids are. Sounds an awful lot like how people use Facebook online now, right? Of course, it also describes an early pre-Internet social culture, facilitated by photo directories, that students enjoyed long before Zuckerberg even made it to high school, a culture he happened upon and got to participate in by a stroke of pure luck and glorious opportunity”.  
“But the story doesn’t stop there” wrote Antonas. “In Zuckerberg's senior year, the student council, headed by student body president Kris Tillery, successfully lobbied the administration to have the school's IT department put the full contents of Exeter's Photo Address Book online. By the time Zuckerberg graduated, the website was put up at http://student.exeter.edu/facebook, with the URL directory (i.e. "facebook") named after the students' pet name for the physical book and effectively shortened to something useful. Tillery was unavailable for comment”.

    
Antonas further added: “In our interviews, some of Zuckerberg's peers pointed us to this screenshot of the original website hosted on the school's .edu domain. The screenshot was posted in the public Facebook group 'Exonians' in 2006 and is still there. Some of the comments about the screenshot (which date back to 2007) refer to it as "the original Facebook" and refer to the Photo Address Book as ‘the physical Facebook’”.
 


Today,  the school's student.exeter.edu/facebook website is no longer online said Antonas and he was not able to confirm if Zuckerberg himself was involved in, or responsible for the student council initiative that made the directory online.
There are those, however, who reacted on Steffan’s article: “Actually, the ‘Facebook’ at Exeter is still online and available (to students and faculty) today, contrary to the article”. 
Interestingly, 'facebook' is a sort of a generic terminology for the student directory commonly distributed in schools even way back.  
Here’s another interesting reaction: “In 1998 the movie dead man on campus came out... in that movie the quote says, ‘You’re Rachel, right? Yeah how’d you know? Oh, the facebook. Oh you memorized the facebook!’  Colleges have been using the word facebook way before Zuckerberg.”
“Every college has one,” ventured another commentator, “and every college called it a facebook. That's why originally it was limited to individual ecosystems in individual colleges".
What makes all the difference is that during Zuckerberg’s senior year at Exeter, it is possible that when the directory was made online after the student council lobbied the administration, he may have been aware of its existence and this could have made an impact on his consciousness.
As to what really happened later at Harvard and how Facebook evolved into what it is today - over a billion users and growing by the day, $4.3 billion in revenues in 2102 and just last week (July 25, 2013), Wall Street reported its stock prices soared to new heights that it hasn't reached before - are interesting angles for new stories about Facebook.