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

An Amazing Comment by Warren Buffett on Management

For those of you who may be thinking about getting into managment, or are wondering why you may not be as effective as you'd like to be, it would be good to look at an amazing comment that Warren Buffett made concerning the subject:

“My conclusion from my own experiences and from much observation of other business is that a good managerial record (measured by economic returns) is far more a function of what business boat you get into than it is of how effectively you row.”

At first glance it's an extraordinarily controversial statement when you consider it. It seems that Buffett is saying that it doesn't matter how good of a manager a person is, it's the business you're in. That's half right in understanding what he said.

What he's saying is true. If you want to go and succeed in business management, the field of endeavor you choose to engage makes all the difference in the world. When the majority of your time as a manager is plugging up holes in a sinking ship, it's really difficult to attempt to bring excellence to a company and its people.

I've watched a lot of egotistical people throughout the years look at a faltering business or sector and think that with their amazing abilities they'll be able to turn it around. By far the vast majority fail.

Take as an example the newspaper industry now. It's faltering and has no answers in sight. If you were to take over a newspaper in any market, the chances for you succeeding are far less than if you were be in a place of leadership in a growing industry. That's the underlying point that Buffett is making.

It's very worthwhile to seriously consider entering a growing and vibrant sector of business that gives you all the opportunity in the world to succeed. To go into the company fixit business is a sure way to lessen your chances of success. The only time that is a good idea is when the company that needs to be fixed is in a growing sector and the existing management truly is a poor one.

As long as we have real answers and a plan that works, this wouldn't be a bad plan of action to take. Just make sure you do your homework and know that what is ailing a company can be fixed, otherwise your reputation will suffer along with the company.

Other Buffett Sources:

10 Secrets Hidden in Warren Buffett's Wallet

The Warren Buffett You Don't Know

Warren Buffet-Strategic Planning

Some practical advice from investment guru Warren Buffett

Wisdom of Warren Buffett

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