Warren Buffett Points Out 1 Sign to Quickly Spot Someone With Bad Leadership Skills
inc.com/marcel-schwantes/warren-buffett-points-out-1-clear-sign-of-a-bad-leader.html
Author:- Marcel Schwantes
Date Published:- 2024-May-20th
Link:- Link
Warren Buffett.
Warren Buffett has always relied on capable and trustworthy managers to run his Berkshire Hathaway-owned businesses.
However, it can be challenging to judge who’s trustworthy and who’s not since Berkshire has experienced its fair share of disappointments.
In his 1989 annual letter to Berkshire Hathaway shareholders, the Oracle of Omaha called attention to a valuable personal rule that he credits with much of his success.
He said:-
“After some other mistakes, I learned to go into business only with people whom I like, trust, and admire.”
Later, he added, “We’ve never succeeded in making a good deal with a bad person.”
1 Sign to Spot a ‘Bad’ Manager
Buffett has given us plenty of hints over the years about the kind of managers he would consider “bad” and counter to being trustworthy.
These days, people are hard to read, especially in the digital age.
So, what type of manager do we need to be vigilant about?
A manager who does not lead with/by/through integrity.
Integrity is such a non-negotiable aspect of Buffett’s business practice that he vows to hire only people who possess it.
Here’s what he said:
We look for intelligence, we look for initiative or energy, and we look for integrity.
And if they don’t have the latter, the first two will kill you, because if you’re going to get someone without integrity, you want them lazy and dumb.
Buffett’s assertion is that if a person lacks integrity, you’d be better off with someone “lazy and dumb.”
Senior leaders might encounter self-centered managers who manipulate others for personal gain, rather than being team players who serve the organization’s mission.
Senior leaders and execs must be vigilant against such behaviors, and promote a culture that values hard work coupled with honesty and integrity.
Buffett’s emphasis on integrity is not just a moral stance; it has far-reaching implications for decision-making and long-term success.
He believes that when a company’s leaders and employees operate with integrity, they are more likely to make decisions that benefit the organization as a whole, rather than pursuing short-term gains or engaging in unethical practices.
I agree.
In my work as a leadership and executive coach, I have seen numerous companies with a strong culture of integrity as having a competitive advantage.
Businesses that prioritize ethical behavior tend to attract loyal customers and dedicated employees, fostering an environment of trust that is invaluable in the business world.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.
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