Reference no: EM132127723

In the highly turbulent airline industry, Southwest Airlines is one of the healthiest companies, continuing growth and profit in a climate that is threatening the survival of other airlines. Much of its success is attributed to a special culture that emphasizes individuality, taking care of people and fun. “Learn from your mistakes; take the initiative; and listen to your heart” (The power of persistence, 2002) are simple and powerful words from Colleen Barrett, the former CEO of Southwest Airlines who was with the airlines much of her career and in the case with other members of the leadership team, including founder Herb Kelleher and current CEO Gary Kelly. David Ridly, the recently retired VP of marketing and sales, talks with pride about Southwest’s “warrior spirit”, which focuses on caring, emotions and putting employees first (Warrior Spirit, 2006). While Colleen Barrett headed the company, she also had the title of Queen of Hearts for sustaining a culture that is: “fun, spirited, zesty, hard-working and filled with love. Love is a word that isn’t used too often in corporate America, but we’ve used it at Southwest from the beginning” (Shinn, 2004: 18).

In addition to a supportive culture, for which Kelleher and Barrett can take much credit, Southwest is deliberate about developing leaders and leadership. Talking about the company’s HR practices, Barrett describes, “We are very, very disciplined about mentoring and coaching … We’re a very forgiving company in terms of good honest mistakes, but we’re not forgiving about attitude and behavior and demeanor” (Fisher, 2007: 18). Barrett suggests that developing employees and maintaining the culture starts with the hiring process by carefully selecting people and being very clear about expectations and company culture (Sekula, 2007). Programs to develop leaders range from formal leadership training for everyone, including frontline employees, to presentations by outside consultants, leadership briefings and communication about leadership in company bulletins. Managers and company leaders also make a point to include the topic of leadership in their regular interactions and strive to demonstrate the principles the company embraces (Shin, 2003). They also provide credible role models for others. For example, Kelleher works from a small windowless office and treats all employees regardless of their rank with care and respect (Warrior Spirit, 2006). The goal of training and development at Southwest is to perpetuate a culture and a leadership style that have been effective. Barrett says that they are not shy about closely monitoring their employees, getting rid of people who do not fit in, promoting those who represent the spirit of the company and holding their leaders and managers accountable (Sekula, 2007). They are also not shy about standing up for employees who do their jobs well, even when customers complain (Warrior Spirit, 2006).

The concept of fit between the person and the company is central to Southwest’s success. Through careful hiring and training, the company makes sure that those who do not fit well do not get hired or do not stay long. Caring about others, authenticity and maybe most importantly, a sense of humour, are prerequisites for being successful at Southwest. Ridley says: “Our leaders have a genuine love for people. We don’t want you in leadership if you don’t. If it’s all about you we don’t want you – there are no Big Shot leaders at Southwest” (Warrior Spirit, 2006). Barrett encouraged the culture by creating a Culture Committee, a group made up of a team of 100 employees who preach and teach the company’s unique culture (Medley, 2006). In addition, the local culture committee’s members are further entrusted with the task for maintaining and strengthening the Southwest SPIRIT (always in capital letters). The culture even has its own language, which includes “Southwest Family, ” “Servant Leadership,” and “New Hires,” all used as proper nouns to indicate their importance to the company (Medley, 2006).

Although leaders play a key role in developing others, everyone at Southwest is in charge of that culture. Through strong training programs, promotions from within, the telling and retelling of many stories, for which the company cofounder and past CEO Herb Kelleher is famous, the culture is ever present. The company offices are decorated with memorabilia that further reinforce Southwest ideals. Kelleher ensured that current and upcoming leadership are in place and guaranteed “life after Herb” (Medley, 2006). Barrett played a further role in developing leaders, mentoring anyone who had “a passion for what he or she does or who has a desire to learn” (Shin, 2003), and she empowered her followers to do the same. She stated, “When New Hires ask me all the time, ‘How are you going to keep the culture?’ I say, ‘I’m not. You are.’” (Medley, 2006). The new CEO, Gary Kelly, seems to be carrying on much of the tradition. He showed up dressed as Edna Turnball, the mom in the musical Hairspray at a recent company Halloween party (Bailey, 2008).

Analysis

Write a 2,500 word analysis of Southwest Airlines in which you apply the theoretical leadership knowledge you have acquired, demonstrate your understanding of the integrative relationships among industry environment, corporate strategy, corporate structure, corporate culture and corporate leadership, demonstrate your understanding of the role of corporate leaders in ensuring goal achievement, smooth internal processes and external adaptability, and finally, drilling down to analyze CEO leadership qualities and style. Research, analyze and discuss the following:

Industry environment: The North American airline industry?

Corporate strategy: The corporate strategy of Southwest Airlines?

Corporate structure: The corporate structure of Southwest Airlines?

Corporate culture: The corporate culture of Southwest Airlines?

Corporate leadership: The corporate leadership of Southwest Airlines?

Role of corporate leaders – in general: How the corporate leaders of Southwest Airlines integrate industry environment, corporate strategy, structure and culture to ensure goal achievement, smooth internal processes and external adaptability ?

Role of corporate leaders – in particular: Answer the following questions.

How does Southwest develop its leaders? Be specific in your answer and be sure to provide examples that reinforce your answer?

What is the role of culture and fit in success of the company ?