Wednesday, March 5, 2008

Do the Right Thing by James F. Parker

Motivational Management Book Review

Do the Right Thing: How Dedicated Employees Create Loyal Customers and Large Profits, by James F. Parker
Wharton School Publishing
Copyright 2008

On 9/11/2001, when terrorist attacks nearly halted the air travel business, James F. Parker the CEO of Southwest Airlines was responsible for keeping Southwest within one percent of the previous year's revenue. Through his application of his management theory and a few key business moves, he was able to succeed in the midst of failure.

Parker's management theory focuses on two major philosophies. The first is that "leaders are everywhere", at all levels of employment. These leaders within the company are responsible for consistently driving excellent performance of those around them. A successful leader is one who possesses the ability to identify people's strengths and praises them. Even the pilots of Southwest are encouraged to accept input from his crew.

His second major philosophy emphasizes that in order for employees to succeed, they must be empowered. When the right people are recruited and hired, they can be taught to think like owners; motivated to make good decisions for the company as a whole. "Doing the right thing" means focusing on employees first, then customers, and lastly the shareholders; an important distinction for successful companies.

By drastically cutting the price of flights, and emphasizing the managerial necessity of hiring and empowering quality employees at all levels, James F. Parker made Southwest successful, even during 9/11, a time when the business was at a historical low.

In Do the Right Thing, Parker writes in a straightforward, yet passionate manner. His most important key to a business's success and admiration is management's elevation of the employee. While his book is not revolutionary, it is an inspiring read. It gives hope to the moral humanitarian with its powerful message that "doing the right thing" can lead to success.

-Victoria Petersen

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