Devoted to Managers and those that seek to improve their management skills

Warren Buffett and Secrets of Management - 21
 

The fourth secret in Buffett's analyzing the reason for the success of The Nebraska Furniture Mart and Rose Blumkin and her family, is this:

4. Unfailingly behave in a high grade manner with everyone they deal with. (Mrs B boils it down to "sell cheap and tell the truth".’

In the seemingly endless parade of scandels that permeate the business world, it's refreshing to hear that this high-performing company puts a premium on integrity. That, after all, is what Buffett was really talking about here.

The other part of it is that they didn't do this with just certain clients, but they treated everybody this way. I like that. There's something about treating certain people better that takes away from a business. Mostly in the area of developing bad habits and wrongly measuring what will make the company a success.

More than once, as far as telling the truth goes, I've seen when companies do this right up front that the great majority of problems work themselves out from there. When they try to cover up a problem, it can get dirty and messy. It's always best, as the Blumkins have practiced, to say things as they are up front and get the bad news out right away if there is any.

It's only when that happens that you can get you heads together with the people you're doing business with to solve their problem. Sometimes the reason people aren't upfront is because they're trying to solve the problem before they have to tell the customer; whether its an individual or business.

I'm talking about big problems here, not taking customers through every little up-and-down of the process. Still, honesty and integrity are something that should never go out of style, and should be a foundation of every company.

The four keys to the Blumkins success again:
 
1. Apply themselves with an enthusiasm that would make Ben Franklin and Horatio Alger look like dropouts;

2. Define with extraordinary realism their area of special competence and act decisively on all matters within it;

3. Ignore even the most enticing propositions falling outside of that area of special competence; and

4. Unfailingly behave in a high grade manner with everyone they deal with. (Mrs B boils it down to "sell cheap and tell the truth".’

Other Rose Blumkin Sources:

Warren Buffett and the incredible Rose Blumkin

WARREN BUFFETT'S PARTNER

Rose Blumkin: A study of Capitalist Success

Rose Blumkin, a Russian immigrant

5 Rules for Conquering Consumers