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

Never Underestimate Freedom

One of the things I enjoy about studying and interacting with great managers, is that you find those things that emerge that are common to all of them. It can be expressed in different personalities and circumstances, yet they are still powerful truths that are common to all.

A key ingredient that I never get tired of talking about is freedom. The reason why is that so many corporations and small businesses just don't know how to - or more likely - are afraid to trust their people and get out of their way so they can do great things.

Many of the managers that Buffett has had under the Berkshire Hathaway (BRK-A) umbrella have been fabulously wealthy, so that money wasn't a motivator in any way, shape or form to their involvement.

An example of this is Al Ueltschi, the founder of Flight Safety International. When he sold his company to Berkshire, he already was a billionaire. What makes someone like that put himself under a corporate umbrella like Berkshire? I think it relates to freedom. The leaders want to be free from all distractions and be able to pursue the key purpose of their business without dealing with a lot of bureaucratic headaches. That's a huge plus.

One of the great underestimated freedom's that come with being part of the Berkshire fold is the protection leaders get from the normally short-term thinking shareholders and Wall Street analysts. Buffett knows his numbers and how to measure. He understands what Berkshire stands for and for the most part never deviates from it.

Freedom was more than simply retaining the top-dog spot in the company, which many owners could have done without selling to Berkshire. They knew Buffett's reputation for not interfering, and they also knew that a corporate blanket could be put over them to protect them for the many nuances that they had to deal with when running the businesses for themselves. That is freedom to someone who's been there.

Other than having a corporate parent, nothing has changed for the leaders at all. The vast majority of managers don't even hear from Buffett. One said that after Buffett had bought him out, it was 20 years before he even went to talk with Buffett in Omaha.

The freedom here is something that has tremendous value: freedom from distractions. Another reason why Buffett and Berkshire owned companies - along with their managers - perform so well.

Other Buffett Resources:

Company growth

“Everybody Else is Doing it”

MSU students have special visit with billionaire Warren Buffett

WARREN BUFFETT PHILOSOPHY II

Sticking to what you know  Core businesses

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