How Southwest Airlines built its culture | Herb Kelleher | WOBI

Summary

The transcript emphasizes creating a business environment that prioritizes people, authenticity in displaying humanistic values, and crafting an eternal mission statement focused on customer treatment. It underscores hiring for attitude and training for skills, with leadership potential in every employee. The importance of group interviews, top officer involvement in new hire classes, and flexible decision-making are highlighted. An example of an employee's initiative in solving a problem is shared, demonstrating the company's values in action.

Takeaways

• 😀 Display a humanistic philosophy and focus on people throughout the company to create a positive work environment.
• 📜 A mission statement should reflect how the company treats both internal and external customers, making it meaningful and enduring.
• 🚫 Be cautious of external consultants offering to create or refresh your mission statement; it should be an internal reflection of the company's values.
• 🔍 Clearly define what you're looking for in new hires, focusing on attitude and cultural fit rather than just filling positions.
• 🛠 Hire for attitude and train for skills; look for a warrior spirit, a servant's heart, and a fun-loving attitude in potential employees.
• 🙅‍♂️ Bad attitudes can metastasize throughout an organization, so prioritize hiring individuals with positive attitudes over those with negative ones, regardless of their qualifications.
• 👥 Use model employees in the hiring process to better assess candidates' fit with the company culture.
• 🗣️ Give the personnel department veto power over new hires based on their appraisal of attitude.
• 👥 Conduct group interviews when hiring in large numbers to observe how candidates interact with others and respond to different social dynamics.
• 👮‍♂️ Have top officers address new hire classes to emphasize the importance of new employees and to review their attitudes and performance during the probationary period.
• 🏆 Encourage and reward initiative and problem-solving, even from new employees, to foster a culture of innovation and customer service.

Q & A

What is the importance of visibly displaying a humanistic philosophy in a company?

Visibly displaying a humanistic philosophy is crucial as it sets the tone for how a company treats its internal and external customers, reflecting the company's core values and commitment to people.

Why is it essential for a company's mission statement to focus on how it treats its customers?

Focusing on customer treatment in a mission statement makes it meaningful and eternal, as it emphasizes the company's dedication to its customers, which is a timeless and fundamental aspect of business.

What was the speaker's reaction to the idea of hiring a consultancy to create a mission statement?

The speaker found the idea of hiring a consultancy to create a mission statement absurd, suggesting that if a company cannot define its own mission, it should consider shutting down.

How does the speaker feel about refreshing a company's mission statement?

The speaker is against the idea of refreshing a mission statement, comparing it to the unnecessary updating of sacred texts like Deuteronomy and Ecclesiastes, implying that a mission statement should be enduring.

What qualities does Southwest Airlines look for in new hires according to the transcript?

Southwest Airlines seeks new hires with a warrior spirit, a servant's heart, and a fun-loving attitude, emphasizing the importance of attitude over education, experience, and expertise.

Why is it important to hire for attitude and train for skills, as mentioned in the transcript?

Hiring for attitude and training for skills is important because a positive attitude is foundational and can be harder to change than skills, which can be developed through training.

What role do model employees play in the hiring process according to the speaker?

Model employees play a crucial role in the hiring process by helping to identify new hires who align with the company's values and culture, as they understand the company's needs and standards better.

Why does the speaker advocate for the personnel department to have veto power over new hires?

The speaker believes the personnel department should have veto power to ensure that all new hires meet the company's standards for attitude, as they are responsible for maintaining the company's culture.

What is the significance of conducting group interviews during the hiring process as suggested in the transcript?

Group interviews are significant as they allow the company to observe how candidates interact with others, assess their teamwork and social skills, and identify how they support their peers under pressure.

How does the speaker suggest using humor during the hiring process to evaluate candidates?

The speaker suggests asking candidates how they used humor to handle an embarrassing situation, which can reveal their creativity, personality, and ability to think on their feet.

Why is it important for top officers to address new hire classes, according to the transcript?

Top officers addressing new hire classes signifies the importance the company places on its new employees, setting a positive tone and demonstrating the company's commitment to their development.

What is the speaker's view on providing guidelines versus rules in the workplace?

The speaker believes in providing guidelines rather than strict rules, emphasizing the golden rule as a fundamental guideline, and allowing employees the flexibility to make decisions on the spot.

Can you provide an example from the transcript of how the company rewards initiative and bravery?

The transcript mentions an instance where a probationary employee rented five buses to transport passengers during bad weather, demonstrating initiative and bravery. The company rewarded her with an award for her actions.