Leadership styles of Jeffrey Smisek and Gary Kelly

¶ … Jeffery A. Smisek, CEO of Continental Airlines and Gary Kelly, CEO of Southwest Airlines. Both of these men head what many consider minor airlines, and yet they are some of the most successful airlines in the country. Southwest is known for its low fares and lack of formality, while Continental has been a staple in the West for years.

Jeffrey A. Smisek did not begin his career in the airline industry, he started his career in the legal field, but he has been with Continental Airlines since 1995 in a variety of different departments. He is married and lives in Houston, Texas. Like Smisek, Gary Kelly did not begin his career in the airline industry, either. He is a CPA and began his career in an accounting firm. He joined Southwest Airlines in 1986 and rose through the ranks, just like Smisek. Kelly has been CEO since 2004, and is consistently ranked in the top CEOs of companies around the country. He lives in Dallas, Texas.

Jeffery A. Smisek took over as President, CEO, and executive director of Continental Airlines on January 1, 2010. Born in 1954, Smisek began his career with Continental in 1995. Before that, he worked for Vinson & Elkins LLP, "where he specialized in corporate finance and securities law" (Editors, 2010). Smisek graduated from Princeton University in 1976 and Harvard Law School in 1982. He graduated summa cum laude and magna cum laude from the respective universities. When he joined Continental, he came in as senior vice president and general counsel, and his responsibilities grew as he stayed with the company. During his time at Continental he has also overseen sales & marketing, global real estate, communications, and federal affairs, among other duties.

Gary Kelly, CEO of Southwest Airlines, is trained as a CPA, and he joined the company as a controller. He then became "Chief Financial Officer and Vice President Finance, then Executive Vice President and CFO, before being promoted to CEO and Vice Chairman in July 2004" (Editors, 2009). He actually took over chairman duties in 2008. He is credited with helping negotiate a program of oil hedging that has helped the airline keep its fares low by saving millions of dollars in fuel costs, and his airline is one of the few that consistently makes a profit in times when many airlines are failing. He graduated from Texas University at Austin with a degree in accounting and became a CPA after leaving the school. His first job was as a CPA for "Arthur Young & Company in Dallas and Controller for Systems Center, Inc." (Editors, 2009). He worked closely with airline founder Herb Kelleher throughout his career, and leads the airline in the spirit of the Chairman Emeritus.

As leaders, these two men have very different backgrounds and education, yet they have both risen through the ranks to head major national airlines. Smisek learned the ropes from former CEO Larry Kellner, and a video of the CEO greets every passenger as they board their Continental flight. Smisek is a hands on leader who is determined to make Continental profitable again. In fact, he is not taking any salary or bonus until Continental becomes profitable again (some experts think that could come about this year). Work culture is extremely important to him. He says, "I am a huge believer in the work culture here,' Mr. Smisek says. 'We call it "working together" but what I like to say is that we treat people "like your momma taught you to" - as we would like to be treated'" (Lemer, 2010). Smisek is candid and not afraid to speak out about government rules and guidelines, and he is frank and honest about what he can and cannot do. He is a strong leader because he makes his point firmly, is trustworthy, and cares about the airline he manages.

Gary Kelly is also passionate about his airline and its success. When asked how he sees the future, Kelly responds, "So, it remains to be seen what will happen with the economy and on Wall Street in 2009, but I feel very, very good about the Southwest Airlines brand and where it is headed" (Viuker, 2008). He has a clear view of his goals as CEO, and he is consistently recognized as one of the top CEOs in the country. Kelly first learned about Southwest when he joined Arthur Young, who handled the little airline's early accounting. When he was hired at Southwest in 1986, he brought computerized accounting to the company, who was still keeping all its books on paper. Kelly is a nurturing leader, and he believes in recognizing the employees. He travels the country often to meet and mingle with the workers, and although he is a tough boss, he cares about those around him, too.