Warren Buffett and Secrets of Management - 20
Buffett's third insight into the Blumkin family and their extraordinary success was in their ability to ignore anything outside of their special competence. He put it this way:
3. "Ignore even the most enticing propositions falling outside of that area of special competence."
I've seen time after time where someone comes into a business and tells them how their unique thing will add value to a business along with added revenue. I had this happen as a manager one time where the owner of the business showed me a pile of boxes full of computers, sofware and a number of other items that were to be put together to form our new "delivery" business.
I wasn't told a thing about it until I was shown the boxes. They basically said "there it is, put it together." When it was put together, then I had to find out what it was I had. The owner had no idea, other than that we would now be offering delivery within our store.
It was a disaster. All it did was take time away from what really made money and what customers wanted. We had just enough business where it interfered, and not enough to make it worth anything. The only money it made was for the providers of the package to get it going.
The problem was that it was way outside our purpose and competence. Nobody in the business had any knowledge of this area of service.
It is extremely important to stay within our strengths and competence. Let everybody else have the next "big" thing. Learn to say no and ignore the endless amount of supposed opportunities that your business division is said it can't do without. You'll be glad you did.
Other Rose Blumkin Sources:
Warren Buffett and the incredible Rose Blumkin
Rose Blumkin: A study of Capitalist Success
Sponsored link: The outsourcing every manager requires - Tampa Locksmith
Comment Preview