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Contrast Of Leadership Styles

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Ð'ÐŽÐ'§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.Ð'ÐŽÐ'Ё

LEADERS:

HERB KELLEHER Ð'ÐŽV CHAIRMAN, SOUTHWEST AIRLINES

BILL GATES Ð'ÐŽV 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 CampbellÐ'ÐŽÐ'¦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. AnthonyÐ'ÐŽÐ'¦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 Ð'ÐŽÐ'§LUVÐ'ÐŽÐ'Ё on the NYSE.

2005 FINANCIAL

STATISTICS: Net Income: $484 million

Total passengers carried: 88.4 million

Total RPMÐ'ÐŽÐ'¦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 companyÐ'ÐŽÐ'¦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 companyÐ'ÐŽÐ'¦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. Statistically, Southwest employees worked longer and harder hours than employees at any other airline.

Rather than complaining, Southwest employees appeared to love their jobs. Flight attendants sang instructions and pilots cracked jokes. Kelleher continually cultivated such a fun-loving attitude at the company. He arm wrestled the CEO of another airline for the rights to use a slogan and posed as Elvis for an advertising campaign. Kelleher seemed to have boundless energy, sleeping only four to five hours a night and reading several books each week. When he was made aware that a night shift could not attend company celebrations due to their schedules, he turned up at an airport at 2am to throw a special barbeque.

Kelleher told InvestorÐ'ÐŽÐ'¦s Business Daily that the Southwest spirit was Ð'ÐŽÐ'§the core of our success. ThatÐ'ÐŽÐ'¦s

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