Contrast of Leadership Styles

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¡§LEADERSHIP IS A DYNAMIC RELATIONSHIP BASED ON MUTUAL INFLUENCE AND COMMON PURPOSE BETWEEN LEADERS AND COLLABORATORS IN WHICH BOTH ARE MOVED TO HIGHER LEVELS OF MOTIVATION AND MORAL DEVELOPMENT AS THEY AFFECT REAL, INTENDED CHANGE.¡¨

LEADERS:

HERB KELLEHER ¡V CHAIRMAN, SOUTHWEST AIRLINES
BILL GATES ¡V FOUNDER OF MICROSOFT

HERB KELLEHER

NATIONALITY: American

BORN: March 12, 1931, in Camden, New Jersey

EDUCATION: Wesleyan University
B.A 1953
New York University
LL.B. 1956

FAMILY: Son of Harry Kelleher (General Manager at Campbell¡¦s Soup Factory) & Ruth Moore.
Married Joan Negley, 1955
Children: 4

CAREER:

New Jersey Supreme Court, 1956-1959, clerk
Lum, Biunno & Tompkins, 1959-1961, associate
Matthews, Nowlin, Macfarlane & Barrett, 1961-1967, partner
Oppenheimer, Rosenberg, Kelleher & Wheatley, 1969-1981, senior partner Air Southwest Company, 1971-1982, legal counsel
1982-2001, chairman, CEO & president
2001 - Chairman

AWARDS:

Distinguished Achievement Award, Wings Club, 1996
CEO of the Year, Chief Executive, 1999
CEO of the Country, Texas Monthly, 1999
Wright Brothers Memorial Trophy, Aero Club of Washington, 2000 CEO of the Year, Fortune, 2001
Bower Award for Business Leadership, Franklin Institute, 2003

The Texas businessman Rollin King had hired Kelleher as outside counsel in 1966. One evening they were having drinks at the St. Anthony¡¦s Club in San Antonio, when King, who already owned a small charter airline, sketched out a plan on a cocktail napkin. At the time air travel was affordable primarily to high-powered businessman and the wealthy. King and his banker, John Parker, wanted to start a low-cost commuter airline so that the average traveller could fly between Dallas, Houston and San Antonio. At first sceptical Kelleher soon became enthusiastic and scraped together enough money to buy a 1.8% stake in the proposed company. He also signed on as legal counsel and a director. In 1967 the airline was incorporated as Air Southwest Company, later to be renamed Southwest Airlines Company.

SOTHWEST AIRLINES CO.
Corporate Fact Sheet

LEADERSHIP:Herbert (Herb) Kelleher, Executive Chairman of the Board
Gary Kelly, Vice Chairman of the Board and CEO
Colleen Barrett, President

HEADQUARTERS:P.O. Box 36611
2702 Love Field Drive
Dallas, TX 75235

DAILY DEPARTURES:More than 3100 flights a day

EMPLOYEES:More than 32 000 total employees throughout the Southwest system.

STOCK:Common stock is traded under the symbol ¡§LUV¡¨ on the NYSE.

2005 FINANCIAL
STATISTICS:Net Income: $484 million
Total passengers carried: 88.4 million
Total RPM¡¦s: 60.2 billion
Passenger load factor: 70.7%
Total operating revenue: $7.6 billion

Herbert David Kelleher led Southwest Airlines Company to over 30 consecutive years of profitability, first as the company¡¦s cofounder and legal counsel from 1966 to 1982, then as its President, CEO and Chairman from 1982 to 2001. During his tenure years, Herb Kelleher produced the highest return to shareholders of any company in the S&P 500. He was known for his stringent cost-cutting as much as for his friendly management style and love of parties and publicity stunts. By creating a fun and rewarding workplace, Kelleher was largely responsible for the company¡¦s myriad awards and recognitions; Fortune Magazine named Southwest the Best Place to Work in America in 1998. In 2001, at the age of 70, Kelleher retired from his position as president and CEO, remaining Chairman of the board.

CORPORATE CULTURE & MANAGEMENT STYLE

Like Kelleher, Southwest Airlines had a reputation for hard work and high spirits. Its cross- utilization of workers was unique to the airline industry. Pilots helped clean up cabins, ramp workers sold tickets, and Herb Kelleher himself spent time loading baggage, ticketing customers and mixing drinks on board....
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