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Herb Kelleher : The Founder & Former CEO of Southwest Airlines

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An aspiring journalist, who eventually became a lawyer and then a successful entrepreneur- Herb Kelleher, also wanted to live the lavish life that he had been seeing people living in his surrounding, and with the help of the right business plan and with the help of right people, he not only started one of the best airlines of America but also became one of the best CEOs of the country. Under his leadership, the airlines not only became the most preferred one by the consumers but was also voted Fortune magazine’s Best Place to Work in America

Early Life

Kelleher was born on 12 March 1931, to Harry Kelleher and Ruth Moore, in Camden, New Jersey. His father worked as the general manager at the Campbell’s Soup factory. He used to work at the same factory after school and also in the summer breaks, as a part-timer. He completed his high school education from Haddon Heights High School. He was a bright student and was also active in sports. He was in the Football team of the school and was a letterman in basketball and track. Later, he joined the Wesleyan University, to pursue a bachelor’s degree in English and Philosophy, in 1953. He was a member of Delta Kappa Epsilon fraternity at the university. Influenced by a Wesleyan trustee, he then went to study law at New York University as a Root-Tilden Scholar and earned a graduate degree in the same.

herb
Image Source: experience.hsm.com

Career

In 1956, Kelleher started working as a clerk at the New Jersey Supreme Court. In 1959, he joined the Newark, New Jersey, firm of Lum, Biunno and Tompkins, where he practised law for two years. In 1961, he moved to Texas and became a partner in the law firm of Matthews, Nowlin, Macfarlane & Barrett.

Founding Southwest Airlines

While living in Texas, Kelleher got influenced by the lifestyle of the local people and started looking for something challenging that could help him be like one of them. He wanted to start his own law firm or any other business. In 1966, he joined the Texas businessman Rollin King as his outside counsel. One evening in a meeting with a client, an air charter service owner, in the St. Anthony’s Club in San Antonio, they sketched out a plan on a napkin.

King and his banker, John Parker wanted to launch an affordable airline between Dallas, Houston, and San Antonio. Kelleher joined hands with the two, and on 15 March 1967, with a seed money of $500,000, they launched the Southwest Airlines Co. Kelleher managed to buy a 1.8 per cent stake in the newly started airline company and was appointed as its first CEO. But due to some legalities, the airline kept from flying for a four-long year and had its first flight on 18 June 1971. The low prices of the flights, and other facilities like eliminating unnecessary services, made the airline an instant hit.

As the CEO of the company, Keheller brought a better working culture, making the employees work more passionately. In 1974, Southwest became the first airline to offer a profit-sharing plan, according to which employees owned 13 per cent of the company’s common stock. Southwest Airlines has constantly maintained its name in the top five Most Admired Corporations in America, in the Fortune magazine’s annual poll.

In 1982, Kelleher was assigned the post of the chairman and the president of the company, remaining on the position of the CEO. In 2003, the airlines had 33000 employees, and operated 2800 flights between 30 airports, with a total annual revenue of $6 billion and net profits of $442 million.

On 21 May 2008, Kelleher resigned as the chairman of Southwest Airlines.

Personal Life

Kelleher met his future wife, Joan Negley when he was in college and married her in 1955 when he was still studying law at the New York University. Fortune has also called him perhaps the best CEO in America. Kelleher was inducted into the Junior Achievement U.S. Business Hall of Fame in 2004. He was named the CEO of the Year from Chief Executive magazine in 1999 and also from the Fortune magazine in 2001. In 1990, the Financial World named him as the CEO of the Decade in the Airline Industry and was also named as the CEO of the Century by Texas Monthly in the same year.

Scott Cook : One of the Most Groundbreaking Entrepreneurs in Silicon Valley

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What can a bad boss lead its employees to? In the case of Scott Cook, his bad boss led him to think of starting his own business and establish a multi-billion empire for himself. Cook, an American billionaire businessman, is one of those people, who got their lives changed with a simple idea. The concept that people had never imagined of and thought as a non-profitable one, too. Not much people are aware of this nerd, who believed in his plan and gave a tough competition to multiple tech giants with his unusual product. But, who knows, are also aware of his management and leadership skills

Early Life

Cook was born and brought up in a suburb of L.A. He was a bright student at the school, and had programmed the school district’s one computer. After graduating from school, he got enrolled at the University of Southern California, to pursue a bachelor’s degree in economics and mathematics and later, joined the Harvard Business School, from where he received an MBA degree.

Career

After completing his education, Cook, took a job at Procter & Gamble in Cincinnati, Ohio, where he earned much experience in product development and consumer marketing. He also met his future wife Signe Ostby while working at P&G. After leaving the job and marrying Ostby, he with Ostby moved to Menlo Park, California, where he started working at Bain & Company as a consultant in the strategic consulting department.

Founding Intuit

On a fine day, in the early 80s, Cook was sitting in the kitchen of their silicon valley house, with his wife. His wife had complaints about the management and payment of the bills. Cook was prompted by the matter and thought that there might be some more people who find managing the various household bills a bit difficult. He came with an idea to develop software that would help the people to manage and pay their bills. The idea was first of its kind as there were not many users of computers at that time, especially women who stayed at home. Hence, it became difficult for him to raise funding for this idea.

Cook’s interaction with the programming languages had happened last when he was in high school, so he contacted his friend from the Stanford University, Tom Proulx, to help him out with the development process of the software.

In 1983, the two founded Intuit Inc. and launched the first software of their company, the first version of Quicken, written in Microsoft’s BASIC programming language. The software was designed to work on the IBM PC and UCSD Pascal for the Apple II. The product was a success and soon found a competitor. Microsoft also produced a similar software named Microsoft Money, but Cook had its move and provided its customers a US$15 rebate coupon, redeemable on software purchased in their stores. At the same time, the company got engaged with John Doerr, to expand its product lineup.

In 1993, the company was made public for ICO, and it made a major acquisition, i.e., of Chipsoft (a tax-preparation software company based in San Diego). In 1994, the market capitalization of the company reached US$2 billion, and Microsoft made a buyout offer for the company. But, due to some legal issues, the buyout failed, and Microsoft continued its competition with Intuit. During this time, the company started producing web-based products and invested in some really good projects.

The annual revenue of the company estimated by May 2018, was US$5 billion and its market capitalization was about US$50 billion.

Cook remained the chairman of Intuit from February 1993 to July 1998 and served as the president and the CEO of the company, from April 1983 to April 1994.

Personal Life

Cook and his wife Ostby are the parents of three children and live in Woodside, California. In 2002, the couple established the Center for Brand and Product Management at the University of Wisconsin–Madison School of Business. In 2005, he was placed at number 320, in the Forbes 400, and his estimated worth was of $1.1 billion. Cook is one of the directors of eBay and Procter & Gamble and serves on the dean’s advisory board of the Harvard Business School. He is also one of the investors in eBay, Amazon, and Snapchat and has been a mentor to entrepreneurs like Larry Page.

Jaguar Cars : One of the Most Luxury Automobile Manufacturers in the World

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Jaguar Cars, the name speaks for itself. The brand is almost a hundred years old and has seen its own ups and downs. It has been the provider of most luxurious cars that are at the same time the best at performance and technology. Jaguar is known for its exclusive designs and exceptional comfort and as the producer of one of the fastest cars in the world.

History

Two motorcycle enthusiasts, William Lyons and William Walmsley, from the UK, came together with an idea to start a business of manufacturing motorcycle sidecars and founded Swallow Sidecar Company, in 1922. In 1934, the company was renamed as the S.S. Cars Limited, making the shares of the company public.

The next year, the company manufactured the first 2½-litre engine sports car, with the name SS Jaguar 2½-litre, followed by another sports model with a 3½-litre engine SS Jaguar 100. After the second world war, the shareholders of S.S. Cars Limited decided to rename the company to Jaguar Cars Limited, in a meeting held on 23 March 1945, so that to have a unique name for the company and to avoid any connection with acronym S.S.

jaguar
Image Source : motortradenews.com

In the late 40s, the company dealt with a huge issue of shortage of materials, particularly steel, becoming entirely dependent for their bodies on external suppliers. But, by the mid-50s, the company started achieving fame after manufacturing a series of powerful sports cars, including Jaguar XK120, Jaguar XK140, Jaguar XK150, and Jaguar E-Type. At the time, all of those sports cars were powered by the jaguar’s twin-cam straight-six engine, that provided the maximum efficiency. The manufacturing of the cars was based on the Lyons’ mantra of “value for money” and followed the slogan “Grace, Space, Pace.”

Winning the Le Mans 24 hours race, firstly in 1951, and again in 1953, were two major benchmarks for Jaguar, in the long history in motorsport. Lyons was always focused on manufacturing the world-class sporting saloons in larger numbers than the sports car market could support, and as a result, Jaguar was able to achieve a financial stability and a status for distinction with a range of elegantly styled luxury saloons manufactured under its name. The luxurious and stylish saloons cars included the 3-litre and 3½ litre cars, the Mark VII, VIII, and IX, the compact Mark I and 2, and the XJ6 and XJ12.

Pressed Steel Company Limited, manufactured all the major parts of the Jaguar cars, and in mid-1965, British Motor Corporation (BMC) and the Austin-Morris, together, acquired the Pressed Steel Company Ltd. Later, BMC also acquired Jaguar and started a joint venture British Motor Limited, in 1965, that was renamed to British Motor Holdings at the end of 1966.

In 1968, British Motor Holdings, under the government pressure got merged with Leyland Motor Corporation Ltd. and was formed as British Leyland. But, the poor decisions made by the company as well as the financial difficulties, could not make the deal last longer, and due to monetary success, the companies eluded. In 1984, Jaguar also emerged as a separate company and under the leadership of chairman, Sir John Egan, started to rise rapidly.

The Jaguar engines became famous due to its ubiquity and longevity, and the next powerful engine introduced by Jaguar was Twin OHC XK Engine, that was used in the XJ6 saloon from 1969 through 1992. It even empowered the British Army’s Combat Vehicle Reconnaissance (Tracked) family of vehicles, the Fox armoured reconnaissance vehicle, the Ferret Scout Car, as well as the Stonefield four-wheel-drive all-terrain lorry.

In November 1989, Ford offered the Jaguar’s US and UK shareholders to buy their shares, and in 1999, Jaguar became a part of Ford’s new Premier Automotive Group along with Aston Martin, Volvo Cars and, from 2000, Land Rover. At the same time, Jaguar shared a common sales and distribution network as well as some components with Land Rover. All these years, Jaguar made no profits under Ford’s leadership, and in 2007, Ford announced a sale of Jaguar as well as Land Rover, together. On 2 June 2008, Tata Motors of India, acquired both companies by paying £1.7 billion. The Tata Group further established Jaguar Land Rover Limited, a wholly owned subsidiary and renamed the parent company to Jaguar Land Rover Automotive PLC.

Currently, Jaguar is a manufacturer of the car models including the F-Type convertible, the Jaguar XF, the Jaguar XJ, the Jaguar XK, and the Jaguar R models. In the future, we can expect to see a C-X17 and a four-door compact saloon known as XE.

Since the beginning of the manufacturing of Jaguar Cars, all of the vehicles had the iconic chrome-plated Leaping Jaguar, known as the “The Leaper” on the cap of the radiator of those vehicles. The same leaper is also a part of the logo of the company. But, due to some safety reasons, the leaper has been dropped from the current Jaguar models.

Alan Trefler : World Open Chess Champion & the Founder-CEO of Pegasystems

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Alan Trefler is a chess master and successful entrepreneur, who keeps a low profile for its multi-billion company. Having a bright future in Chess and winning against multiple grandmasters, Trefler decided to stick to software development, that too proved to be the best of his decisions. Although he has not entirely left the game, he still plays the exhibition matches with former grandmasters of the game.

Early Life

Alan Trefler was born on 15 March 1956, in Boston, Massachusetts. His father Eric Trefler was the owner of an art and furniture restorer, named Trefler’s, and his mother, Dorothy Trefler, was a schoolteacher. He spent his childhood in Brookline, Massachusetts, living with his parents and brother Leon.

Alan Trefler
Image Source: Forbes

Trefler attended the Brookline High School and became a chess champion there, winning numerous school level chess competitions. As a teenager, he started his first part-time job at his father’s shop. In 1973, he joined Dartmouth College, where he studied economics and computer science. In 1975, he participated in the World Open Chess Championship and won the championship against the grandmaster Pal Benko.

Career

After completing his B.S., Trefler joined his first job at Casher Associates Inc., in Chestnut Hill, Massachusetts, as the project manager. He got the job even he was underqualified for it, as the company needed an employee on an urgent basis. Although Trefler could easily pursue his Chess career, he chose to work in a software company.

After leaving the job as the project manager, Trefler joined a software engineering firm. Later, in 1980, he successfully built a computer system that could play chess. In the same year, he started working at TMI Systems, as the team leader.

Founding Pegasystems

In April 1983, Trefler left TMI Systems, to found his own software company, named Pegasystems. He was 27, when he started the company, with an aim to enable business people to more directly instruct the machine and get the computer to really understand how business people wanted things to work. He became the CEO and the chairman of the company, and in 1996, the company went public on NASDAQ. The United States govt conferred a patent to Trefler, for Pegasystems’ distinctive rules-based architecture, which provides the framework for Pegasystems’ business process management (BPM) solutions.

The American Business Awards presented Trefler with the Stevie Award for Computer Software CEO of the Year, in 2009. He was also named the Public Company CEO of the Year, in 2011, by the Massachusetts Technology Leadership Council. Pegasystems entered into the field of telecommunications and healthcare when it acquired Chordiant for around $161.5 million. By the beginning of the year 2015, the company had 3,000 employees and 30 offices.

Personal Life

In 1992, Trefler married an investment banker, Pamela. The couple resides in Brookline, Massachusetts. Both of them are active philanthropists and in 1995, donated $1 million to Dorchester High School in Dorchester, Boston. In 1997, they founded The Trefler Foundation that aims to improve the urban education system. Trefler also competed in a charity chess tournament alongside grandmasters such as Garry Kasparov and Boaz Weinstein, in 2010. In March 2017, he appeared on the Forbes Billionaire’s List for the first time. He also published a book named Build for Change in 2014.

Don Valentine : The Legendary Venture Capitalist of the Silicon Valley

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A start-up always is an unpredictable and a doubtful move for any of the founders as well as its investors. But taking risks is the key to innovations. To attract the investors the founders must have a convincing idea and a self-belief so that the investors can also trust them. Donald T. Valentine is one of the biggest venture capitalists in Silicon Valley, and the founder of Sequoia Capital, who has been the investor for various new ideas, resulting in the foundation of many famous multi-billion companies. According to Don, the start-ups are compelling, as the survival is the prime motivation for the people who are behind it.

Early Life

Donald T. Valentine spent his childhood in the suburbs of New York. He was born on 26 June 1932, in Yonkers, New York. His father was a minor official in labour unions in the Teamsters and worked all his life to earn his living. Donald joined a nearby Catholic school at the Fordham University, and himself is a Catholic. After completing the school, he entered the same university to pursue an undergraduate degree in Arts.

Founding Sequoia

In the early 50’s, Don got a chance to work for the military and was moved to California for some time. There he came to know the very first time that there are also some places in the world, where it did not snow. He liked the fact so much that he decided to move to such a place. After he was back in New York, he joined the Sylvania Electric, where he worked at various different projects. The company was the manufacturer of the cathode-ray tubes, semiconductor, and the vacuum tubes. Just after some time of working in the company, he was promoted to the sales engineering department and was transferred to California, the place, where he always intended to be.

Don Valentine
Image Source: alchetron.com

In California, Valentine was introduced to a bigger industry and was convinced that there is much more than vacuum tubes, and the future is all about the semiconductor. In 1959, he joined the start-up company, Fairchild Semiconductor, in Los Angeles, as one of the first West Coast salesmen of the company. After working in Fairchild for seven years, he left the company and subsequently, switched between almost ten other companies, before joining the National Semiconductor, as the senior sales and marketing executive, in 1967.

Valentine founded a venture capital firm Sequoia Capital, in 1972. The company was focussed on the investments to small, risky tech companies. The firm’s first investment was to the startup company Atari (1975). Sequoia has financed probably six hundred different companies, including LSI Logic, Oracle Corporation, Cisco, Electronic Arts, Google, YouTube, etc.

Don has served as a member of the boards of dozens of those companies, for a long time. Also, Sequoia was one of the original investors of Apple Computer. Valentine met Steve Jobs when he was a line engineer at Atari and financed Apple Inc., with $150,000 as its capital investment, in 1978. He is the former Chairman of NetApp and Traiana. He was featured in the 2011’s documentary film Something Ventured. He has also been called the “grandfather of Silicon Valley venture capital”.

Pavel Durov : The Founder of Hack-Proof Messenger App Telegram

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A believer of no government and a pure vegetarian, Pavel Durov is a Russian entrepreneur, who was among the most promising Northern European leader under 30, in 2014. He is leading a life on his own rules. Known as the Russian Mark Zuckerberg, Durov surely is inspired by the same and has a few similarities with the life of the American entrepreneur. Pavel Durov, who founded the social media platforms, Vkontakte, the most visited websites in some Eurasian countries (2017), and Telegram, is working towards protecting the users’ data from governmental data requests.

Early Life

Durov was born on 10 October 1984, in St. Petersburg, Russia, to Valery Semenovich Durov and Albina Durova. His father is a Doctor of Philological Sciences, and his grandfather Semyon Petrovich Tulyakov participated in the second World War. His brother Nikolai Durov is a mathematician and a programmer, who later, co-founded Telegram and VK, with Pavel Durov.

Pavel spent most of his childhood in Turin, Italy, where he attended the Italian elementary school. In 2001, the family returned to Russia, and he joined the Academy Gymnasium, in St. Petersburg. He became inclined towards programming languages while in school. After completing the school, Pavel went to the Saint Petersburg State University and earned a degree in Philology.

Career Rise with Vkontakte

Soon after Durov completed his college, he started working on a social media network, as he was inspired by the success of Facebook. He named his project as Vkontakte and started the beta testing of the same, in September 2006. Just after a month, he bought the domain for Vkontakte and opened the registrations to the website for the students of the Saint Petersburg State University.

Pavel Durov
Image Source: eyerys.com

Early in the next year, the website registered more than 100000 users and became the second largest social networking website, in Russia. The rapid growth of the platform, brought a trio of Russian-Israeli investors, Vyacheslav Mirilashvili and Lev Leviev, to invest in the website, acquiring 60%, 10%, and 10% stakes in the company, respectively. Later, the 39.99% shares were acquired by Mail.ru Group. By the year 2014, the Mail.ru Group was able to acquire 52% of the shares in the Vkontakte.

After losing most of his shares, Durov faced a lot of trouble in maintaining his position in the company. He received offers from the few of the political parties of Russia to sell the data of the Vkontakte users, to them. But, he never accepted. In fact, in 2012, he was asked to remove the groups, from Vkontakte, that were protesting against the Russian President Vladimir Putin, but again he denied. At that time he emerged as a libertarian hero for the dedicated protesting groups.

On 1 April 2014, as an April Fool prank, Durov presented his resign in front of the board members of Vkontakte. But, he got caught into his own prank, when, on 21 April 2014, he got dismissed from his post. The reason behind his dismissal was that he failed to withdraw his resignation, within the fixed time.

Founding Telegram

According to Durov, his resignation and getting out of the company was a result of his resistance from sharing the user’s data with the political parties. During the same time, he was working on a secret project. He had started working on the project early in 2012, with his brother, Nikolai Durov, who was the lead programmer of the project. Pavel Durov financed the project and had launched it in August 2013, as Telegram. After his dismissal from his company, he flew to Buffalo, New York, where he established his secret company. He also took some of his Vkontakte employees with him, to New York to continue working on Telegram.

After moving to New York, he also obtained the citizenship of Saint Kitts and Nevis, through donating $250,000 to the country’s Sugar Industry Diversification Foundation. He implanted his employees in various parts of the world, due to the complicated documentation formalities for each of his employees. Basically, controls the working of his company from his secret office in New York.

Telegram was an instant hit, as the app did not allow any third party to use the data of the Telegram users. Also, the secret chat feature of the app does not have any cloud backup. The success of the app can be measured from the 200 million monthly active users reported at the beginning of 2018, and a 50 per cent rise in the annual profits of the company in 2017.

In 2017, with 23-page white paper and a detailed 132-page technical paper, Durov launched a blockchain platform, named as Telegram Open Network (TON). Reportedly, the ICO raised $1.7 billion in April 2018.

Personal Life

Pavel Durov calls himself a libertarian and is living a private life. His past life was filled with a number of controversies and politics. Hence, he maintains his life as private as possible. He, also, never discloses the address to his secret office, established in New York, to avoid influencers from the media and government. Allegedly, he along with his brother, migrates to different places after a certain period of time, in self-imposed exile.