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Peak Your Profits: The flight to your future, is now boarding! Part 2
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Here’s more of the conversation with my friend, Howard Putnam, who spent twenty years at United Airlines, and was also the CEO at Southwest Airlines, and CEO and Chairman of Braniff International. Today, Howard is an extremely successful speaker and author (“The Winds of Turbulence.”)
Jeff Blackman: Tell me about the role of “fun” in success... and how it can be introduced and/or enhanced in one’s business.
Howard Putnam: It has been key to Southwest’s success. It started with the original uniforms for the female flight attendants and customer service agents. They were similar to the Dallas Cowboy cheerleaders uniforms. They attracted young women who knew they’d look good in that uniform. Many had been cheerleaders or drum majorettes in high school or college. They were extroverts and loved interacting with people. They had great personalities and senses of humor. They loved to have fun. Then you had a management team who enjoyed fun as well. It was encouraged and still is. We developed a personality profile of the ingredients that include fun, and it’s still used today to hire in all categories. If you want to change a culture that has been stiff and stodgy and now wants to lighten up, it has to start with the CEO. It won’t happen quickly. And it’s a strategy or initiative that has to grow with everyone’s support. It only happens, when you hire the right attitudes to match your business, and management supports it.
JB: How is “flat” better than “fat?”
HP: Bureaucracies breed inefficiencies, higher costs and diminished profits. They are “fat.” More largess than you need or can afford. Senior management egos often are the culprit and the beginning of “fat.” Getting out of your niche is another. Flat organizations are flexible. They have few layers of management. Simplicity is stressed. Complexity is constantly being removed. The structure is “flow” and fluid. The structure of the organization follows the strategy. Not the reverse. Silos are discouraged and torn down. Everyone works as a team, not independent departments or divisions.
JB: So, how do you eliminate a company’s bureaucracies?
HP: Eliminate the CEO and management who created it! That may come though a buyout, or a crisis, or a board of directors with the fortitude to clean house.
JB: While Moses had his “Ten Commandments”... so do you?
HP: My core beliefs for leadership center around the following:
-- Care about your people
-- Hire the right people.
-- Listen to your people
-- Keep things simple
-- Have balance in your life
-- Help others understand balance in their lives too... with their families and work. My ten leadership attributes are:
1. Honesty and integrity
2. Passion
3. Vision
4. Excellent listening
5. No arrogance, ego or exclusion
6. Embrace change
7. International mentality
8. Grasp for value of technology
9. Continuing education and mentoring
10. Be a team-builder with flexible-thinking
A friend suggested an eleventh — compassion.
JB: What was it like working at Southwest with Herb Kelleher? What lessons did he teach you?
HP: Herb is an icon in the aviation industry. He’s an attorney by trade and a very strategic thinker. His passion for Southwest is 24/7 for the past forty years. He’s in his late 70s now, yet still working 60 hours a week, in his final year as Chairman. He’ll still be around as an advisor. He’s a funny man, loves to party and his people love him. I’m an early-riser, he’s a late-nighter. I finally told him when I was CEO, “Herb, I’ll work the day shift, you work the night shift. I can’t do both!” Herb taught me a lot about involving your board members and utilizing their expertise and experiences. He also is excellent in community, governmental and legal relationships. I never saw him negotiate anything, where he didn’t walk away arm-in-arm with his opponent. Quite a compliment.
JB: What’s the funniest experience you had with Herb?
HP: We were on Wall Street, meeting with analysts, trying to set the stage for an equity offering. Herb and I were contrarians. We didn’t do business like American or United. We gave away drinks in the daytime as the flights were short, mainly had business travelers, and it was easier to give them away than collect and account for cash. One analyst thought that was a waste of revenue and asked me, “How many free drinks could you get flying from Dallas to Houston in 55 minutes?” I said, “The record is seven Jack Daniels and water, held by our Chairman, Herb.” I just made it up on the spot. Herb immediately responded, “Howard, you sure it was seven? I thought I had eight!”
For more smooth flying, make sure your flight-plan includes a visit to howardputnam.com.
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Jeff Blackman is a speaker, author, success coach, broadcaster and lawyer who lives part-time on Marco Island. His clients call him a “business-growth specialist.” Send an e-mail to jeff@jeffblackman.com or go to www.jeffblackman.com to subscribe to his free e-letter.

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