Posts Tagged herb kelleher

PROFIT IS NOT A GOAL ~ IT IS THE RESULT OF PRINCIPLED OBJECTIVES

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“Focus on the care of your employees and customers and your profits will take care of themselves.” ~ Daniel R. Scoggin

Friday’s original success is legendary. The founding principles have spread across the globe. I receive emails from alumni quoting the metaphors, theories and philosophies regularly. During the early years our training manuals, control forms and systems were copied and used by hundreds of businesses large and small. It was our policy that this was our gift to the alumni and the industry at large. Today, many of the metaphors and theories are commonly found on the internet. The difficult part of the equation, however, is not commonly found and this is the most important part, the essential core values. The systems, theories and philosophies are ineffective without being connected to the principles behind them and held to the standard of excellence upon which they are based.

Common to the successful businesses I have researched, while writing the book, are core values, the standard of excellence and goals focused on their employees well being and their customers’ happiness. Without prompting, they all mentioned, in their own way, that they did not focus on profits, that if they stayed true to their principles the sales and profits took care of themselves.

Famous for his success in a very competitive business Herb Kelleher puts it this way, We tell our people, ‘Don’t worry about profit. Think customer service.’ Profit is a by-product of customer service. It is not an end in and of itself.”

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WHO CHARTERED A THIRD OF THIS AIRLINE?

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The answer is Friday’s. The second store we  built was in Houston with the first, in Dallas. The punch line is that Southwest only had three airplanes and we chartered one of them to take our faithful customers from the Dallas Greenville Avenue store to the opening night of the Houston Galleria store. I have tried over the years to get some mileage out of this by dropping the fact that I charted a third of the airline. I usually get disbelief at first and then a good laugh when I explain, but I don’t get bumped to First Class because flying with Southwest is always first class. (Maybe I’ll get a little mileage out of this blog!- just kidding.) Here is a quote from founder Herb Kelleher articulating one of their core principles and a reason WHY“We tell our people, ‘Don’t worry about profit. Think about customer service.’ Profit is a by-product of customer service. It’s not an end to itself.”

Friday’s founding principles focused on the same priority. I love Henry Ford’s quote on the topic, “A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.”

Note: See my Quotes page for more.

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