- Pick the right business: own, manage, or work for the right business, you need to work for the one with the best economics.
- Delegate authority: learn how to give up control safely.
- Find a manager with the right qualities: integrity, intelligent, and a passion for the business. You need to cultivate this in yourself, and in the right candidates.
- Motivate your work force: you need to motivate your managers so that they are all that they can be within your company.
- Learn the managerial axioms for different problems: there are axioms for handling dishonest employees, and keeping costs low.
2. Learn to Delegate Within Your Company: Berkshire growth needs to be competently run. A management approach has allowed Berkshire to become a large multi-national conglomerate.
Rules for Delegating Authority: Do not try to control every event, if you are micro-managing then you will drop all aspects of your work. Delegating to a competent manager means a more thorough execution of the task. There is not enough time in the day to actually delegate, Warren delegates with rules:
- Every business culture is unique: workers and managers have developed highly specialized skill sets, even remotely as well as he can. Employees are the experts. If you have any job as a manager; it should be to cheerlead not be a slave driver.
- Competent Managers like to do their business as their own. Play on the manager’s pride.
- The managers should not only be hardworking, you should have a great deal of integrity. If they aren’t honest they will rob the company blind. Sell cheap, and tell the truth.
[This is a précis of Warren Buffett’s Management Secrets. More is forthcoming]