Warren Buffett and Secrets of Management - 4
One of the few rules that Buffett makes with the CEOs and managers of the companies Berkshire Hathaway (BRK.A) has ownership of, is that when they contact him, tell him the bad news right away, don't wait tell it gets out of control or he hears about it another way.
When you think about it, it's refreshing to hear someone of Buffett's stature encouraging this attitude.
Many leaders in companies don't like to hear about or know about bad news. This eventually affects the culture of the entire company, as many things are swept under the rug to keep hidden out of place from the eyes of the leadership. This doesn't make any sense. I think Buffett is right here. Get the bad news out of the 
way so it can be dealt with and handled. Don't let it sit around and grow into something that can become a crisis or public relations nightmare.
Sometimes the desire to not hear bad news is so strong in business leaders that some people can be fired for bringing it to the attention of those they're accountable to.
I would be concerned about bad news that is hidden, then bad news that's communicated right away.
The reason for talking about this is that the handling of bad news is a key indicator in what type of management and company those running it are. There's just something about hiding something that takes something away from the open way a company should be run.
People should be encouraged to say when things aren't working and where things can be improved, rather than sometimes being punished for it.
We need to embrace this concept, and be secure in it, rather than run from it. A healthy company isn't afraid of bad news, because it's open to hearing it, and ready to tackle the problem that rises as a result.
A company or manager that doesn't want to face bad news has a serious problem that will grow and spiral to the point where it may never recover.
Other Buffett Resources:
Investment Whiz Kid: Buffett Amasses a Fortune
Management Styles - The Buffett Way: Learn from the maestro himself
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
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