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

Practical Trumps Theory Every Time

When Buffett went to school at Wharton, he found the experience disappointing. While the professors always like to spin out all these fancy theories to make them look good, very little, if any of it, had much practical application in the real business world. Of course that's the problem you have when someone that's never experienced something tries to teach someone that has.

Buffett attacks these theories strongly when he talks about the need for this type of teaching to go on because of the desire to be part of a "priesthood," which we've talked about here before.

But for us and the answers that we need now, right after we hear input and ideas that are tossed around, then there has to be immediate plans designed concerning how to practically apply the ideas. That's the one thing about information and ideas: they're extremely cheap and a commodity when simply bantered about and thrown around. Anybody can do that. When it comes to execution and reality though, everything becomes practical.

Have you been in strategy sessions where there are endless theoretical ideas thrown around with little practical follow-up being presented along with it? They can go on forever because practical application demands an executable plan that theory doesn't like to deal with.

Theories are fun to promote because they can make people feel heady, prideful and superior. Let your competition throw around theories. We need to brainstorm and get ideas, construct a plan, and then work hard to make the plan come into reality. Theories simply paralyze people into inaction as they try to construct something perfect in their minds that is too complicated or impractical to bring into being. It just isn't that complicated.   

Businesses that are in action creating products and services for their customers, based upon the purpose and reason of the company's existence, will demolish those that like to site around spinning fancy theories while they are surging ahead.

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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