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

Warren Buffett and Secrets of Management - 51
 

Sometimes when you read the way that Warren Buffett manages and what he expects of his managers, you may think that it doesn't lend itself to innovation and creativity. That would be misunderstanding what he knows and believes in as it relates to management.

At one time he said that managers need to be careful about being dulled into complacency. He understood that sometimes the daily grind of operations can cause that to happen in any manager.

If you're aware of the companies that Buffett buys or invests in, you'd know that they are not companies that stand still. Think of the growth of Buffett's Berkshire Hathway (BRK-A) holding company and you'd know that the companies he's in aren't stagnant by any means.

Even companies that seem to go from exciting product to exciting product have to watch this with their managers. Look at the high turnover at tech companies that many consider some of the most exciting places to work for. Many managers get bored or dulled at these places and so jump ship pretty frequently. You don't have that happen at Buffett companies.

In the decades he's owned the companies, he's never had a CEO of a company leave, other than for retirement. That isn't a boring company that functions in a way that keeps the loyalty and interest of the managers running them.

Complacency deals with something within you, and not the environment you work in. It's related to doing what you love to do and being released to do it. That does more to battle complacency than any other thing I can think of.

The point he's making is that we have to guard against this creeping into our makeup and affecting our ability to manage a company. Complacency leads to mediocrity, something that is sure to do great damage to a company in a short period of time if it isn't fought against.

Other Buffett Resources:

Wisdom of Warren Buffett

Warren Buffett, investor

Warren Buffett: The trouble with being a legend

Warren Buffett: 'I told you so'

Company growth

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