Below you will find three case studies in which you are to review and critique, giving you thoughts and input on what characteristics you saw were shown to bring the companies out of turmoil. How would you have handled the situation differently? What strengths and weaknesses did you find in the leader? What, to you, is the difference between a leader and a manager?

This exercise should encourage you to truly analyze yourself and what type of leader you wish to become!

Case Study #1: Southwest Airlines

How can an airline survive a government order to ground its entire fleet and shut down for days? After 9/11, all U.S. airlines were faced with this same crisis. One that succeeded through the difficulty was Southwest Airlines, already known for its outstanding customer service. Southwest's passengers, flight attendants, pilots and ground crews were stranded all across the country after the terrorist attacks. But unlike their competition, Southwest's leadership did more than just sit and wait. They encouraged employees to leverage their trademark fun approach to business and to help stranded customers enjoy themselves at the movies or the local bowling alley. And when the ramifications of the shutdown forced other airlines to cut staff, Southwest's then-CEO, James Parker, announced just three days after 9/11 that the company would be keeping all of its employees, as well as issuing a profit-sharing payment.

Case Study #2: Starbucks

Starbucks is recognized for treating its employees, also known as partners, well. The coffee giant offers insurance benefits, stock options, and retirement plans. But back in 1997, Starbucks faced a crisis when tragedy struck and three employees were killed during a robbery in Washington, D.C. The outstanding leadership of CEO Howard Schultz was demonstrated when he flew straight to D.C. and spent a week with the co-workers and families of the three employees.

Case Study #3: Toro

Toro, the lawn equipment manufacturer, is accustomed to lawsuits, due to the inherent hazards associated with using its machinery. During the late 1980s, the company was facing major financial troubles and put Ken Melrose in place as CEO. One of his first successes was reducing the company's cost of lawsuits by implementing a new mediation policy and invoking an important leadership trait: empathy.

Prior to Melrose's tenure, Toro faced about 50 lawsuits every year involving serious injuries. He decided to switch to mediation to address product liability claims. This approach included sending a company representative to meet with people injured by Toro products, as well as their families. The goal was to see what went wrong, express the firm's sympathy and attend to the family's needs. One result of the new mediation policy was a 95% rate of resolving the company's claims, along with significant cost savings.