Herb Kelleher’s ‘Customer-Centric’ Company

An idea scribbled on the back of a cocktail napkin is part of the lore of several of the greatest ideas of mid-20th century America: the Laffer Curve, the automatic fire-hose nozzle, the Space Needle in Seattle. Important concepts, simply presented. Another famous piece of cocktail napkin lore is the original concept for Southwest Airlines — a simple triangle connecting Texas’ three largest cities: Dallas, … Continue reading Herb Kelleher’s ‘Customer-Centric’ Company

Making Miracles in Memphis

Viewed from Pitt and Barbara Hyde’s office perched on the bluffs of ­Memphis, the Mississippi River appears to meander lazily on its way. But appearances can deceive. The river’s smooth, muddy surface hides a powerful flow of more than 300,000 cubic feet each second, moving boats along at a rate of up to three miles per hour amid threatening eddies and undercurrents. Barbara and Pitt—winners … Continue reading Making Miracles in Memphis

How Bank Startups Build Leaders

The year is only half past, but 2016 is well on its way to joining 2011, 2012 and 2014 in a dubious distinction: a year that zero new U.S. banks were chartered. As consolidation of existing banks continues, many have observed that the lack of new banks reflects burdensome regulatory compliance, an inhospitable interest rate environment, excessive capital requirements, an insufficiently robust economy—or some mixture of all of these.

In his classic 1946 book Economics in One Lesson, Henry Hazlitt writes that economics “is the science of tracing the effects of some proposed or existing policy not only on some special interest in the short run, but on the general interest in the long run.” And thus, while the drought of de novo banks will ripple through the American economy, it will have subtle, significant and virtually unexplored long-run effects on the next generation of bank leadership. Continue reading “How Bank Startups Build Leaders”