Warren Buffett and His secrets of Management - 1
As we take a look into the management practices of Warren Buffett, you'll find that a lot of the determining factor in that area, are not that far different from what the deciding factor is in how he picks stocks. We're not going to get into that here, as this is a management blog. Still, we won't be able to totally escape it either as it plays a big part in how he manages or picks managers.
No story about Buffett could start other than with the most critical idea that Buffett considers the most important: Understanding a company. He will do 
nothing unless he understands what it is a company does.
Now think of that in reference to management. How many times do you see many seemingly smart and experienced executives run companies and make decisions that could only be the result of not understanding the business they are in? There's a lot isn't there?
Something that Buffett has said in the past helps to draw out this idea. He was asked one time about some of the people that use complicated formulas for stock picking and why they do it if it's not important. His answer was that there is always a group of people that want to be a "priesthood" in their specific field. In other words, make it so complicated that it makes people think that only a special few can do it right. He completely resists this idea in anything.
What does this say about the foundation of Buffett's management style? He either completely understands what he's doing, and other managers in the company along with him, or he doesn't get into it. It's that simple.
So the first think to understand about managing Bufett's way is that it has to be easy to understand and able to be managed in the first place. If it isn't, he won't be part of it.
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