hi I’m Evan Carmichael and welcome to another edition of modeling the masters
another edition of modeling the masters
another edition of modeling the masters I believe that the fastest and most
I believe that the fastest and most
I believe that the fastest and most effective way to grow your business is
effective way to grow your business is
effective way to grow your business is some model the strategies of people who
some model the strategies of people who
some model the strategies of people who have already done what you’re trying to
have already done what you’re trying to
have already done what you’re trying to do so today we’re gonna look at how a
do so today we’re gonna look at how a
do so today we’re gonna look at how a young lawyer who seemingly had it all
young lawyer who seemingly had it all
young lawyer who seemingly had it all left his high paying job to venture into
left his high paying job to venture into
left his high paying job to venture into the unknown and start his own business
the unknown and start his own business
the unknown and start his own business he had to fight over 30 lawsuits to get
he had to fight over 30 lawsuits to get
he had to fight over 30 lawsuits to get his company off the ground but he made
his company off the ground but he made
his company off the ground but he made it through and eventually became one of
it through and eventually became one of
it through and eventually became one of the most respected CEOs in America this
the most respected CEOs in America this
the most respected CEOs in America this is a story of Southwest Airlines founder
is a story of Southwest Airlines founder
is a story of Southwest Airlines founder Herb Kelleher and the top three lessons
Herb Kelleher and the top three lessons
Herb Kelleher and the top three lessons that you can learn from his success Herb
that you can learn from his success Herb
that you can learn from his success Herb Kelleher is a co-founder and former CEO
Kelleher is a co-founder and former CEO
Kelleher is a co-founder and former CEO of Southwest Airlines after graduating
of Southwest Airlines after graduating
of Southwest Airlines after graduating from Law School he did what every new
from Law School he did what every new
from Law School he did what every new lawyer dreamed of he clerked for the
lawyer dreamed of he clerked for the
lawyer dreamed of he clerked for the Supreme Court justice joined the law
Supreme Court justice joined the law
Supreme Court justice joined the law firm and became a partner at a firm in
firm and became a partner at a firm in
firm and became a partner at a firm in his wife’s home state of Texas he should
his wife’s home state of Texas he should
his wife’s home state of Texas he should have been on top of the world but he was
have been on top of the world but he was
have been on top of the world but he was instead 18 for a new career as an
instead 18 for a new career as an
instead 18 for a new career as an entrepreneur one evening Kelleher was
entrepreneur one evening Kelleher was
entrepreneur one evening Kelleher was having drinks with a client Roland King
having drinks with a client Roland King
having drinks with a client Roland King and that night the two used a cocktail
and that night the two used a cocktail
and that night the two used a cocktail napkin to hatch a new business Southwest
napkin to hatch a new business Southwest
napkin to hatch a new business Southwest Airlines using Kelleher’s legal
Airlines using Kelleher’s legal
Airlines using Kelleher’s legal experience in King’s business background
experience in King’s business background
experience in King’s business background Southwest Airlines was able to run only
Southwest Airlines was able to run only
Southwest Airlines was able to run only in Texas to avoid having to follow
in Texas to avoid having to follow
in Texas to avoid having to follow federal price regulations he had found a
federal price regulations he had found a
federal price regulations he had found a legal loophole and his competition
legal loophole and his competition
legal loophole and his competition didn’t appreciate it
didn’t appreciate it
didn’t appreciate it Keller had to fight off over 30 lawsuits
Keller had to fight off over 30 lawsuits
Keller had to fight off over 30 lawsuits before Southwest Airlines was even able
before Southwest Airlines was even able
before Southwest Airlines was even able to get a plane in the air but they
to get a plane in the air but they
to get a plane in the air but they prevailed and boots dropped away from a
prevailed and boots dropped away from a
prevailed and boots dropped away from a company with only four planes being one
company with only four planes being one
company with only four planes being one of the most admired companies in America
of the most admired companies in America
of the most admired companies in America Southwest is consistently named one of
Southwest is consistently named one of
Southwest is consistently named one of the top five most admired corporations
the top five most admired corporations
the top five most admired corporations in America by Fortune magazine which
in America by Fortune magazine which
in America by Fortune magazine which also called Kelleher perhaps the best
also called Kelleher perhaps the best
also called Kelleher perhaps the best CEO in America it’s never experienced an
CEO in America it’s never experienced an
CEO in America it’s never experienced an in-flight fatality and continues to
in-flight fatality and continues to
in-flight fatality and continues to enjoy growing success Southwest is also
enjoy growing success Southwest is also
enjoy growing success Southwest is also the only airline to have over thirty
the only airline to have over thirty
the only airline to have over thirty consecutive years of profit despite the
consecutive years of profit despite the
consecutive years of profit despite the terrorist attacks of September 11 2001
terrorist attacks of September 11 2001
terrorist attacks of September 11 2001 which threatened the rest of the
which threatened the rest of the
which threatened the rest of the industry in 2001 Kelleher resigned as
industry in 2001 Kelleher resigned as
industry in 2001 Kelleher resigned as CEO and president of Southwest due to a
CEO and president of Southwest due to a
CEO and president of Southwest due to a personal battle with prostate cancer
personal battle with prostate cancer
personal battle with prostate cancer Herb Kelleher was frustrated with his
Herb Kelleher was frustrated with his
Herb Kelleher was frustrated with his job and was brave enough to leave it all
job and was brave enough to leave it all
job and was brave enough to leave it all for the unknown to start his own
for the unknown to start his own
for the unknown to start his own business and eventually became one of
business and eventually became one of
business and eventually became one of the most respected CEOs in America to
the most respected CEOs in America to
the most respected CEOs in America to help you grow your business
help you grow your business
help you grow your business here are three action items that you can
here are three action items that you can
here are three action items that you can learn from Herb Kelleher action item
learn from Herb Kelleher action item
learn from Herb Kelleher action item number one put your people first any
number one put your people first any
number one put your people first any successful entrepreneur will tell you
successful entrepreneur will tell you
successful entrepreneur will tell you how important it is to have a good team
how important it is to have a good team
how important it is to have a good team running your business employees who are
running your business employees who are
running your business employees who are skilled at what they do and love their
skilled at what they do and love their
skilled at what they do and love their work will take you places you might only
work will take you places you might only
work will take you places you might only dream about right now treat them as
dream about right now treat them as
dream about right now treat them as people give them opportunities show them
people give them opportunities show them
people give them opportunities show them how they’re adding value and give them
how they’re adding value and give them
how they’re adding value and give them something to believe in and your
something to believe in and your
something to believe in and your business growth will explode Kelleher
business growth will explode Kelleher
business growth will explode Kelleher believed in the power of having
believed in the power of having
believed in the power of having employees who loved working for his
employees who loved working for his
employees who loved working for his company he paid attention to their needs
company he paid attention to their needs
company he paid attention to their needs and made them feel important he also
and made them feel important he also
and made them feel important he also made everyone have a share in their
made everyone have a share in their
made everyone have a share in their businesses success Southwest implemented
businesses success Southwest implemented
businesses success Southwest implemented the first profit sharing plan in the
the first profit sharing plan in the
the first profit sharing plan in the airline industry in 1974 employees owned
airline industry in 1974 employees owned
airline industry in 1974 employees owned thirteen percent of the company’s common
thirteen percent of the company’s common
thirteen percent of the company’s common stock all of Southwest employees from
stock all of Southwest employees from
stock all of Southwest employees from the genders to the pilots receive stock
the genders to the pilots receive stock
the genders to the pilots receive stock options according to Kelleher I always
options according to Kelleher I always
options according to Kelleher I always felt that our people came first some of
felt that our people came first some of
felt that our people came first some of the business schools regarded that as a
the business schools regarded that as a
the business schools regarded that as a conundrum they would say which comes
conundrum they would say which comes
conundrum they would say which comes first your people your customers or your
first your people your customers or your
first your people your customers or your shareholders and I would say it’s not a
shareholders and I would say it’s not a
shareholders and I would say it’s not a conundrum your people come first and if
conundrum your people come first and if
conundrum your people come first and if you treat them right they’ll treat the
you treat them right they’ll treat the
you treat them right they’ll treat the customers right and the customers will
customers right and the customers will
customers right and the customers will come back and that’ll make the
come back and that’ll make the
come back and that’ll make the shareholders happy we’ve always tried to
shareholders happy we’ve always tried to
shareholders happy we’ve always tried to be sensitive to the needs of our people
be sensitive to the needs of our people
be sensitive to the needs of our people and recognize the things that are
and recognize the things that are
and recognize the things that are important to them in their personal
important to them in their personal
important to them in their personal lives at Southwest you can’t have a baby
lives at Southwest you can’t have a baby
lives at Southwest you can’t have a baby without being recognized gaining
without being recognized gaining
without being recognized gaining communications from the general office
communications from the general office
communications from the general office you can’t have a death in your family
you can’t have a death in your family
you can’t have a death in your family without hearing from us if you’re out
without hearing from us if you’re out
without hearing from us if you’re out with a serious illness we’re in touch
with a serious illness we’re in touch
with a serious illness we’re in touch with you once every two weeks to see how
with you once every two weeks to see how
with you once every two weeks to see how you’re doing
you’re doing
you’re doing we have people who’ve been retired for
we have people who’ve been retired for
we have people who’ve been retired for ten years and we keep in touch with them
ten years and we keep in touch with them
ten years and we keep in touch with them we want them to know that we value them
we want them to know that we value them
we want them to know that we value them as individuals not just as workers so
as individuals not just as workers so
as individuals not just as workers so that’s part of the esprit de corps if
that’s part of the esprit de corps if
that’s part of the esprit de corps if you come here you’ll be happy
you come here you’ll be happy
you come here you’ll be happy action item number two focus everyone on
action item number two focus everyone on
action item number two focus everyone on customer service customer service is
customer service customer service is
customer service customer service is increasingly becoming one of the most
increasingly becoming one of the most
increasingly becoming one of the most important differentiating factors for
important differentiating factors for
important differentiating factors for companies for a lot of businesses there
companies for a lot of businesses there
companies for a lot of businesses there really isn’t all that much that is
really isn’t all that much that is
really isn’t all that much that is different in the products or services
different in the products or services
different in the products or services that they’re offering compared to their
that they’re offering compared to their
that they’re offering compared to their competition how do you stand out while
competition how do you stand out while
competition how do you stand out while your customers with service make them
your customers with service make them
your customers with service make them love doing business with you so they
love doing business with you so they
love doing business with you so they come back and tell their friends have
come back and tell their friends have
come back and tell their friends have everyone on your team be as supportive
everyone on your team be as supportive
everyone on your team be as supportive as they can towards your customers and
as they can towards your customers and
as they can towards your customers and your marketing strategy will take care
your marketing strategy will take care
your marketing strategy will take care of itself at Southwest people are
of itself at Southwest people are
of itself at Southwest people are encouraged to go the extra mile and then
encouraged to go the extra mile and then
encouraged to go the extra mile and then some to help their customers there’s the
some to help their customers there’s the
some to help their customers there’s the man who had a heart attack at the
man who had a heart attack at the
man who had a heart attack at the airport was in a company by Southwest
airport was in a company by Southwest
airport was in a company by Southwest employee to the hospital the employees
employee to the hospital the employees
employee to the hospital the employees stayed with the man all night and called
stayed with the man all night and called
stayed with the man all night and called his wife to update her on the status
his wife to update her on the status
his wife to update her on the status then there was a passenger who left the
then there was a passenger who left the
then there was a passenger who left the airport only to find a flat tire in his
airport only to find a flat tire in his
airport only to find a flat tire in his car moments later a Southwest employee
car moments later a Southwest employee
car moments later a Southwest employee was changing it for him despite the fact
was changing it for him despite the fact
was changing it for him despite the fact that the man informed him he’d never
that the man informed him he’d never
that the man informed him he’d never flown with Southwest according to
flown with Southwest according to
flown with Southwest according to Kelleher we have the best customer
Kelleher we have the best customer
Kelleher we have the best customer satisfaction record based on
satisfaction record based on
satisfaction record based on Transportation Department statistics of
Transportation Department statistics of
Transportation Department statistics of any airline in America the fewest
any airline in America the fewest
any airline in America the fewest complaints filed per 100 passengers
complaints filed per 100 passengers
complaints filed per 100 passengers carried so you’re not just getting low
carried so you’re not just getting low
carried so you’re not just getting low fares you’re also getting wonderful
fares you’re also getting wonderful
fares you’re also getting wonderful customer service we have a people
customer service we have a people
customer service we have a people department that’s what it deals with so
department that’s what it deals with so
department that’s what it deals with so don’t call it Human Resources that
don’t call it Human Resources that
don’t call it Human Resources that sounds like something from a Stalin
sounds like something from a Stalin
sounds like something from a Stalin five-year plan
five-year plan
five-year plan you know how much coal you can mine we
you know how much coal you can mine we
you know how much coal you can mine we say everybody is a leader no matter what
say everybody is a leader no matter what
say everybody is a leader no matter what your job is we want you to focus on
your job is we want you to focus on
your job is we want you to focus on customer service and not just the
customer service and not just the
customer service and not just the outside world customer service to the
outside world customer service to the
outside world customer service to the inside world if employees pollute our
inside world if employees pollute our
inside world if employees pollute our other people internally and they in turn
other people internally and they in turn
other people internally and they in turn savaged people who are doing the work
savaged people who are doing the work
savaged people who are doing the work outside the whole company has just
outside the whole company has just
outside the whole company has just rotted action item number three hire the
rotted action item number three hire the
rotted action item number three hire the right people if you’re going to have a
right people if you’re going to have a
right people if you’re going to have a company that puts its people first and
company that puts its people first and
company that puts its people first and gross through repeat customers and
gross through repeat customers and
gross through repeat customers and referrals
referrals
referrals you’re going to have to do a fantastic
you’re going to have to do a fantastic
you’re going to have to do a fantastic job and hiring the right people know
job and hiring the right people know
job and hiring the right people know what type of personality you need in new
what type of personality you need in new
what type of personality you need in new hires and don’t settle until you found
hires and don’t settle until you found
hires and don’t settle until you found the best person for the job
the best person for the job
the best person for the job once you say you’re going to settle for
once you say you’re going to settle for
once you say you’re going to settle for less than the best that’s
less than the best that’s
less than the best that’s happens to your entire business in the
happens to your entire business in the
happens to your entire business in the hiring process of Southwest many
hiring process of Southwest many
hiring process of Southwest many applicants are made to take personality
applicants are made to take personality
applicants are made to take personality tests in one example the vice president
tests in one example the vice president
tests in one example the vice president of Southwest people Department was
of Southwest people Department was
of Southwest people Department was having difficulty finding a new ramp
having difficulty finding a new ramp
having difficulty finding a new ramp agent frustrated she went to kill her to
agent frustrated she went to kill her to
agent frustrated she went to kill her to ask for advice she said she was
ask for advice she said she was
ask for advice she said she was embarrassed as she had already
embarrassed as she had already
embarrassed as she had already interviewed 34 candidates for the
interviewed 34 candidates for the
interviewed 34 candidates for the position Kelleher told her to interview
position Kelleher told her to interview
position Kelleher told her to interview 134 people if that’s what it would take
134 people if that’s what it would take
134 people if that’s what it would take to find the person with the right
to find the person with the right
to find the person with the right attitude for the job according to
attitude for the job according to
attitude for the job according to Kelleher we have a good many MBAs but we
Kelleher we have a good many MBAs but we
Kelleher we have a good many MBAs but we look at them for attitude as well we
look at them for attitude as well we
look at them for attitude as well we will hire someone with less experience
will hire someone with less experience
will hire someone with less experience less education unless expertise than
less education unless expertise than
less education unless expertise than someone who has more of those things and
someone who has more of those things and
someone who has more of those things and has a rotten attitude because we can
has a rotten attitude because we can
has a rotten attitude because we can train people we can teach people how to
train people we can teach people how to
train people we can teach people how to lead we can teach people how to provide
lead we can teach people how to provide
lead we can teach people how to provide customer service but we can’t change
customer service but we can’t change
customer service but we can’t change their DNA when they Kelleher received a
their DNA when they Kelleher received a
their DNA when they Kelleher received a letter from one of Southwest ramped
letter from one of Southwest ramped
letter from one of Southwest ramped agent in Oklahoma they read herb I’m on
agent in Oklahoma they read herb I’m on
agent in Oklahoma they read herb I’m on to what you’re doing you’re making work
to what you’re doing you’re making work
to what you’re doing you’re making work fun and home work
fun and home work
fun and home work so remember put your people first focus
so remember put your people first focus
so remember put your people first focus everyone on customer service and hire
everyone on customer service and hire
everyone on customer service and hire the right people to finish up this video
the right people to finish up this video
the right people to finish up this video I wanted to share one of my favorite
I wanted to share one of my favorite
I wanted to share one of my favorite true stories about Herb Kelleher and
true stories about Herb Kelleher and
true stories about Herb Kelleher and some of his best quotes in the beginning
some of his best quotes in the beginning
some of his best quotes in the beginning Southwest had just four planes and 70
Southwest had just four planes and 70
Southwest had just four planes and 70 employees all of the legal battles had
employees all of the legal battles had
employees all of the legal battles had left the company on the verge of closing
left the company on the verge of closing
left the company on the verge of closing down and forced Kelleher to make a
down and forced Kelleher to make a
down and forced Kelleher to make a difficult decision he had to either sell
difficult decision he had to either sell
difficult decision he had to either sell one of the planes or layoff some of his
one of the planes or layoff some of his
one of the planes or layoff some of his employees he chose to sell the plane in
employees he chose to sell the plane in
employees he chose to sell the plane in return Kelleher asked his employees to
return Kelleher asked his employees to
return Kelleher asked his employees to cut gate turnaround times from 55 to
cut gate turnaround times from 55 to
cut gate turnaround times from 55 to just 15 minutes they pulled it off and
just 15 minutes they pulled it off and
just 15 minutes they pulled it off and Kelleher had clearly set the culture for
Kelleher had clearly set the culture for
Kelleher had clearly set the culture for his business
thank you for joining me for another
thank you for joining me for another edition of modeling the masters if you
edition of modeling the masters if you
edition of modeling the masters if you liked the video and want to see more
liked the video and want to see more
liked the video and want to see more please give it a thumbs up I’d also love
please give it a thumbs up I’d also love
please give it a thumbs up I’d also love to hear your thoughts and feedback if
to hear your thoughts and feedback if
to hear your thoughts and feedback if you want to leave a comment under the
you want to leave a comment under the
you want to leave a comment under the video and stay tuned for the next
video and stay tuned for the next
video and stay tuned for the next episode
”
Be First to Comment