Herb Kelleher Was Correct. It’s the Culture, Stupid!

Herb Kelleher, founder and former CEO of Southwest airlines delivered this quote in a January 2002 Fortune article:

“So my biggest fear is that somehow … we lose that esprit de corps, the culture, the spirit. If we ever do lose that, we will have lost our most valuable competitive asset.”

The Southwest meltdown of 2022 will be dissected for years to come. Was it caused by the perfect storm of corporate accidents? Was it negligence or chasing earnings that drove a lack of technology investments? Did the strategy of a point-to-point route map finally prove that it had limits? Did the vaunted Southwest culture finally shows its cracks?

My guess is that all of these—and more—will receive their share of the blame. At the end, however, it comes down to the culture.

I opened my book, Results Rule!, with the Kelleher quote years ago. At the time, Southwest was still the poster child for these three words: fun, reliable, and inexpensive. The company purpose was “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and company spirit.”

The purpose statement has been updated , but it still reflects that sense of service, reliability, and friendliness.

What Happened at Southwest and Its Connected to the Culture

Captain Casey Murray, the president of the Southwest Airlines Pilots Association, offered this comment in response to questions about the company’s performance over the past few weeks:

“We’ve been having these issues for the past 20 months,” he told CNN. “We’ve seen these sorts of meltdowns occur on a much more regular basis and it really just has to do with outdated processes and outdated IT.”

He went on to say that the operations haven’t changed much in decades.

“It’s phones, it’s computers, it’s processing power, it’s the programs used to connect us to airplanes — that’s where the problem lies, and it’s systemic throughout the whole airline.”

At the same time, there are examples of Southwest employees going above and beyond to stranded customers. Victoria Andrews , a training team member in Houston, showed up at Hobby airport on her day off to pass out snacks purchased with her own money. This is the Warrior Spirit and Servant Leadership that define the Southwest Culture .

The reality is that both the company’s investment decisions and Victoria Andrews performance both represent the Southwest culture. Not the one that the company talks about, but the one that actually exists.

At the front lines, the culture the company worked so hard to develop and sustain is largely present. At the top, a culture that includes reliability in its promise has been exposed as lacking.

A Culture of Excellence not an Excellent Culture

An organization’s culture is about much more than making people (customers and employees) feel good. Engaging the hearts and minds of people is a big part of it, but engagement without execution is a recipe for disaster.

I wrote in Results Rule! that an organization’s culture is defined by the habits it displays over time. It shows up in “its beliefs, expectations, rules of behavior, language, rituals, technology, styles of dress, ways of interacting, processes for communicating and maintaining power, and methods for reinforcing and modifying behavior and performance.”

The challenge for Southwest, as I see it, is that its culture is out of sync with its stated purpose of reliability. It is still excellent, but it made crucial missteps in pursuing excellence.

It Comes Down to Choices

An organization’s true culture (as opposed to its stated one) always develops the same way. Choice—where you place your focus—drives action. Action over time becomes habit through process, systems, structure, and reinforcement. The habits define the DNA of the culture: Discipline, Nature, and Attitude.

Southwest, like every organization that finds itself in trouble, must make choices. Bob Jordan, the airlines current CEO, has said that the company has “outrun its tools ” as it has grown. Investing there is a tactical starting point.

Companies that consistently deliver positive results for their customers, employees, investors, and communities consistently make six strategic choices that guide their culture.

They:

• Tell themselves the truth and value candor and honesty.
• Pursue the best over the easiest in every situation.
• Leverage the power of partnerships both internally and externally.
• Focus the energy to make the main things the main thing.
• Show the courage of accountability.
• Learn, grow, and improve every day.

The crisis experienced by Southwest, its customers, and its employees comes back to a failure to make each of these choices everyday as part of its culture.

A company that has lots its culture in any area of its business has lost its culture in every area of the business. Herb Kelleher was correct—doing that sacrifices its ultimate competitive advantage.

Randy Pennington helps leaders and organizations deliver positive results in a world of uncertainty and change. He is an award-winning author, speaker, and self-described organizational nerd. To learn more or to engage Randy for your organization, visit?www.penningtongroup.com , email?[email protected] , or call 972–980–9857 (U.S.).