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

“You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be.”

The ability to explain what we're doing and why, is vital to business leadership success. It means we've done our homework, are entering into something we understand, and know where it will reasonably end up.

Being able to explain our actions implies we've done our homework, that what we're planning isn't complicated and that we can communicate to others, in an understandable way, why we're entering into what we are.

It's not only that we can understand it, it's more importantly, that others can also understand it. This is a good tool to measure our ideas and goals, in whatever we're attempting to do.

If our people aren't able to understand what we want, they surely aren't going to be able to execute any meaningful results.

Many times it's not communication that's the failure, rather it's the plan or idea itself that is being communicated that is the problem.

If we aren't able to explain our reasons or the actions we want, it means we don't have a handle on what it is we're attempting. It's better to stop and rethink what we're doing, than to push ahead without knowing where things will end up. That's the fruit of not being able to explain the "why" of something.

Warren Buffett has always been able to explain the "why" with Berkshire Hathaway (BRK-A), because he refuses to enter into anything he isn't able to understand. If we don't understand it, we won't be able to explain it.

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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