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Delegation and Trust

When Gordon Bethune became CEO of Continental Airlines in 1994, the company had gone through their second bankruptcy. The workers had been so abused by managers with so many rules, that they showed no initiative.

Using good leadership skills, Gordon showed more trust over the next few years and started to delegate more. At one point, he had all the policy manuals taken out to the parking lot and burned publicly.

Rather than relying on controlling rules, he established objectives and trusted the employees to do the right thing. The stock price went from $2 to over $50, and by the time Gordon left in 2004, Fortune Magazine ranked Continental as the Most Admired Global Airline.

By delegating more and trusting the employees, he turned around the company in just 10 years. After Gordon left, things fell apart again for Continental, and they were merged with United Airlines in 2012.

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