Letting Your Managers Manage
In the continuing series of posts on Warren Buffett, we've talked a lot about how he doesn't even contact the managers that are in his companies. If they have something to tell him, they call him. Some managers he hasn't even talked to in years.
Now in the case of Walton, it's a little bit different, but not by much. Buffett always buys into existing businesses with proven track records and management that can be measured. Walton on the other hand, was building Wal-Mart (WMT) and each store from the ground up. This requires that things be done a little 
differently.
Even so, when Walton hired his first manager for a store, he'd let him run it, and would stop by once a week to take care of any problems that may have come up and would look at the profit and loss statement only once a month. He had to check more frequently than a Buffett because he was building things from scratch.
I've known managers and business owners that wouldn't leave their business for over an hour before they'd almost be in a panic about what's going on. If you can't trust someone in management that bad, either you hired the wrong person or you have a major problem you have to face.
All business owners and managers come to the place where growth demands that they can no longer have a hand in everything going on. Size in and of itself dictates this. Growth is dependent upon the response of the person at this crucial juncture in time.
You either let go or you don't. You will either grow or stay at the size you're at. Everybody in managment is faced with this decision. Because Walton knew that he was going to have more than one store, he understood that he would have to let his managers manage, while he took care of the big picture. I would say that it worked for him.
Other Walton Sources:
The Most Underrated CEO Ever The legendary Sam Walton
Sam Walton: The Power of Persistence
Sam Walton Business Quotes for Ya
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