Today's general session speaker, Gordon Bethune, is the former CEO of Continental Airlines. Bethune was the subject of a profile in the Business Section of this past Saturday's New York Times. (Unfortunately, this particular column, written by Joseph Nocera, is part of the newspaper's Times Select area and requires separate registration and payment.)
Bethune's chief indictment of the "legacy airlines" such as United, Delta and Northwest is simple: they have been mismanaged by executives who don't really understand what matters to customers. And Bethune doesn't pull any punches on his views. When asked by Nocera what he would do to address the problems of United Airlines, which comes out of bankruptcy next month, Bethune's responded, "I think prayer would help." Bethune's candor is probably a major reason why he's delivering lectures (for $35,000 a pop he points out) rather than running an airline. And he doesn't seem to mind one bit.
Bethune is famous in the airline industry for his pithy observations. Here are a few from the article that he might use today:
- "Someone asked me once how come I knew so much about people. I told him it was because I used to be one."
- "If you're going to be in the watch business, it helps to know how a watch works."
- "If you are being rewarded for finding ways to make pizza cheaper, eventually you'll take the cheese off. You'll make it so cheap that people won't eat it."
- "If we have six three-legged horses and we put them in a race, one of them is going to win. It's not pretty, but you're still beating those other five horses."
Unrelenting candor and clever turns-of-phrase aside, Bethune delivered results during his ten-year tenure at Continental Airlines. In 1994, Continental had a $600 million loss. Today, as Nocera puts it, Continental is "unquestionably the best-performing airline this side of Southwest." When he came to Continental, Bethune defined success not in financial terms, but in getting planes to their destinations on time. He did not try to dump the airline's pension commitments onto the government, as others have. He rebuilt trust with union employees and did not eliminate "extras," such as food. As a consequence, Continental has won numerous awards for service quality and has been regularly included on the Fortune Magazine's "Best 100 Companies to Work For" list.
Enjoy this morning's session with Gordon Bethune, and let us know what you think of his perspectives here on the blog!
UPDATE: Bethune used a variation on the pizza comment, and the three-legged horserace comment in his remarks this morning!
Recent Comments