Warren Buffett and Secrets of Management - 15
There are a lot of reasons for managers to admit when they make a mistake. But for a number of reasons, many managers and leaders think that it's a negative action, and weakens their position. If someone does think that way, I think the overall company culture needs to be changed. When you think of it; many mistakes have been the launching pad to tremendous successes.
Another misconception that people have concerning mistakes is that we shouldn't go over them because it can leave one with a negative outlook and discouraged. Buffett talks about how his right-hand man Charlie Munger helped him to see that this isn't the case at all.
When you look at the Berkshire (BRK-A) annual reports, it is filled with the successes and failures all the way through it. Does anybody honestly think that this weakens Buffett in the eyes of his employees or colleagues? On the contrary, it enhances his reputation in the company and out. It shows that he has a handle on the business and understands when something performs great and when something is a dud.
This is a reason that Buffett goes so far to say that the annual reports of the great majority of companies aren't even close to telling the truth about what happened during the year. The reason for this is because those reporting are looking out for their own short-term interests, but no one's over the long haul.
Now, what's the reason personally for managers to admit mistakes as well as successes? From the practical point of view, it helps to change things within someone when they talk about the mistakes they make. It aids them in not making the same mistake again. There's a humbling factor that someone doesn't like to go through too many times.
Buffett has added that "The CEO who misleads others in public, may eventually mislead himself in private." Again, I agree with this totally. People that tell stories that aren't true, or half-truths, many times start to believe their own words, and literally lie to themselves and make them think that what they've said is wholly true.
This happens all the time when you see many CEOs gotten rid of. They are genuinely surprised and shocked because that started to believe that the condition of the company was what they said it was, when in reality it was completely different.
Some people have criticized Buffett concerning this because they say he is protected from being fired because he owns so much of Berkshire stock, so it's easy for him to give this advice.
While I don't see that, think of the consequences of not admitting mistakes and what has went wrong. What's the alternative? To lie your way through it? To withhold information that all people with vested interests have the right to know? We can't do that. Better to lose you job than to willfully deceive people or pretend there have been no mistakes made in the leadership.
One thing that helps here is to recognize that everyone in leadership, or anywhere in the company for that matter, will make big and small mistakes. We're no different. Admit it and learn from it. The great majority of people will respect you more, and it will help you to grow; both personally and professionally.
Other Buffett Resources:
Warren Buffett: The trouble with being a legend
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
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