Transcript
Introduction
One plan, no matter how well laid out, couldn't possibly respond to all of these situations. This is why Kelleher does not put much stock in traditional strategic planning. He explains it this way. "Reality is chaotic. Planning is ordered and logical. The two don't square well with one another."
When U.S. Air pulls out of six cities in California, they don't call me and tell me they're going to do that. Now if we had established a big strategic plan that is approved by our officers and the Board of Directors, I would have to go to the officers and the Board and tell them that we want to deviate from this plan. They would want to know why I want to buy six more airplanes.
The problem is we'd analyze it and debate its merits for 3 months instead of getting the airplanes, taking over the gates, and dominating California. The meticulous nitpicking that goes on in most strategic planning processes, creates a mental straight jacket that becomes disabling in an industry where things change radically from one day to the next. When a financial analyst chided Kelleher about not having a strategic plan, he said, "We do have a plan. It's called doing things."