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It’s somewhat ironic, that one of the most down-to-earth guys I know, spent his professional career ... up in the clouds. Literally! Yet, perhaps it’s that sense of being grounded, that enabled Howard Putnam to pursue and achieve such lofty goals.

While you might not know Howard’s name or the quality of his work, there’s a pretty good chance his decisions had a direct impact upon you, your family, friends and co-workers. Especially, if you travel by air.

Howard spent 20 years at United Airlines. His final position was as Group VP Marketing. He was also the CEO at Southwest Airlines, as well as, CEO and Chairman of Braniff International.

Howard was the first airline CEO to take a major airline into, through and out of chapter 11. Successfully. He calls Braniff, “an Enron,” for they too, had been “cooking the books.”

Today, Howard is an extremely successful speaker and author — “The Winds of Turbulence.”

Here are excerpts from our conversation about life, business, values, leadership, and the always entertaining, Herb Kelleher!

Jeff Blackman: What lessons did you learn at the airlines, that are applicable to any size business?

Howard Putnam: A clear succinct vision is critical. Not a motherhood statement, but down to earth words that tell all your stakeholders where you’re going.

Next, understand what business you’re really in. Not just the product or service, but the ultimate value and experience you provide. At Southwest we figured-out we were not an airline, we were in mass transportation.

Then develop a strong culture, hire attitudes and develop skills to support the vision and business. As CEO, it was my responsibility to drive the vision into the fabric of the organization. One person at a time.

Until everyone believed it and executed it every day. It was extremely important for Southwest. It works in every business.

JB: What does Southwest know, that other businesses don’t?

HP: Most businesses know it, they just don’t believe in it. Southwest treats their people and families as number one. If you do that, your employees will treat your customers as number one.

It’s so simple, but most businesses don’t get it. The bottom line will then be the benefactor, as will your investors. That’s the most important ingredient, your people. After that, comes high productivity, simplicity, low costs and strong, ethical leadership.

JB: How can a business or individual use “turbulence” to their advantage?

HP: Every individual and every business go through stages of turbulence. Very few days are in the “Alpha State” we all strive for, i.e., blue skies, good health, profitable, no problems.

The next state is “Beta.” When we wrote “The Winds of Turbulence,” Dr. Don Beck guided me through the turbulence. Beta is flying through a few thunderstorms, handling production or delivery problems, a slowdown in profitability, new competition, etc. Not a life threatening stage, if you’re proactive and move to the “Flex” stage.

The key is to make turbulence work for you and not against you. That’s the “Flex” stage. It’s the opportunity to induce change quickly and get out of Beta, back into Alpha. But you have to be nimble. And be willing to make the changes.

If you don’t, you may go to the worst state of turbulence, “Gamma.” That’s the pits, the bottom. Could even be bankruptcy or the end of your business. Alcoholics and workaholics end up in “Gamma.”

You may have the opportunity for a restart in “Gamma,” but it’s painful, costly and tough to recover. We were able to bring Braniff out of “Gamma” (chapter 11) and flying again in a “New Alpha” state, as a smaller, leaner company with a clear vision.

JB: What are some simple strategies any business can implement, to cut costs ... without sacrificing customer service or quality?

HP: Quality and low costs are not mutually exclusive. You can have both. We made the decision early on at Southwest to be a one business company, mass transportation, with one kind of airplane, the Boeing 737. Simplicity on parts and all pilots can fly every airplane ... it minimizes training costs.

We never chased two rabbits. If you do, you won’t catch either one. You have to focus on process and be obsessed with it. How can we save a minute on the ground? How can we save 50 gallons of jet fuel? Maybe taxi on one engine. How can we keep the fares simple and shorten the length of phone calls to increase productivity.

Southwest has a very successful profit-sharing plan for “all employees.” It’s a powerful motivator to encourage everyone to be looking for the “small” stuff to cut costs and increase profitability. The big stuff we can all see. It’s the small unnoticed areas where there’s gold to be mined. Listen to what employees and customers suggest.

Investigate. Take action. Follow-up. Say thank you. Reward.

Next week, we’ll continue to reach new heights, as Howard tells us about the role of fun, why flat is better than fat, his 10 commandments, and the wacky, winning ways of Southwest Chairman, Herb Kelleher!

For more in-flight entertainment, turn your knowledge channel to howardputnam.com.

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Jeff Blackman is a speaker, author, success coach, broadcaster and lawyer. His clients call him a “business-growth specialist.” Send an e-mail to jeff@jeffblackman.com , or visit www.jeffblackman.com and subscribe to his free e-letter.