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“When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”
- Warren Buffett, CEO, Berkshire Hathaway
Introduction
Warren Edward Buffett (born August 30, 1930) is an American business magnate, investor and philanthropist.
The most successful investor of the 20th century. Buffett is the chairman, CEO and largest shareholder of Berkshire Hathaway, and consistently ranked among the world's wealthiest people.
He was ranked as the world's wealthiest person in 2008 and as the third wealthiest in 2011.
About Warren Buffett
Unique Key Points
Warren Buffett is known for his economical and plain lifestyle.
Buffet’s charity donation is approximately $30 billion, which is the largest donation in the history of the United States.
The donation was enough to more than double the size of the foundation with 83% of it going to the Bill and Melinda Gates Foundation.
Buffet’s annual salary in 2006 was only $100,000. In 2007, Buffett was listed among Time Magazine’s 100 Most Influential People in the World.
What Makes Buffett a good Business leader?
• Warren buffet is a true leader where his leadership makes a difference in the world. Leadership is very much related to change and Warren Buffett has the capabilities of leadership change to fit the changing world.
• Warren Buffett learned from his mistakes and turned his mistakes into a positive thing. Warren Buffett shares his leadership at all organizational levels and Buffett is empowered to share leadership responsibilities.
• Managers are made to be organizational, controllers and budgeters. Warren Buffett has leadership in all three departments and one must have these traits to be a good business leader.
TRAITS
HumilityDecisiven
ess
Take Risk
Self-Knowledg
e
Emotional Resonance
Build Teams
Passion
Conviction
Dedication
Magnanimity
Buffett’s Traits
Significant Events & Extra ordinaries
He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.
“ Don't buy more than what you really need”
His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.
“ Assign the right people to the right jobs”
He drives his own car everywhere and does not have a driver or security people around him.
“ You are what you are”
He never travels by private jet, although he owns the world's largest private jet company.
“Always think how you can accomplish things economically”
He has given his CEO's only two rules.• Rule number 1 : do not lose any of your share holder's money.• Rule number 2 : Do not forget rule number 1.
“Set goals and make sure people focus on them”
He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.
“ Don't try to show off, just be your self and do what you enjoy doing”
Significant Events & Extra ordinaries
Buffett’s Role in Org. Performance
Recruitment
Training
Communication
Motivation
Recruitment
Training
Communication
Buffett’s financial communications
Use Numbers to season the point you serve
Use analogies and metaphors Be honest and transparent Use facts to put things in realistic content
Motivation• The process of arousing and sustaining a goal-pursuing behavior.• Warren motivates his employees by applying the Theory Y• His essential task of management is to
arrange conditions and methods of operation so that people can achieve their goals best by directing their own effort toward organizational objectives.
• Motivate people with respect and showing them trust & forgiveness.• Build an emotional bond to the company and make them feel
connected and appreciated.• Make the employees become strongly identified to the company and allow them
to create a more affective commitment.
• He doesn't value spontaneous decision- making, but a rational approach that encourages flexibility & open mindedness.
• He has the ability to influence situations and values personal responsibilities & accountabilities.
Buffett’s Corporate culture• “Hire well and manage little” was stated in his shareholder
letter
• A self- propagate culture• "You shape your houses and then they shape you."
• Culture consists of:• Creativity• Collaborations • Hierarchical systems• Competition
• Berkshire Hathaway Inc. culture offers several advantages. For one, it has a remarkable capacity to absorb a wide variety of different businesses within a single family.
“Our compensation programs, our annual meeting and even our annual reports are all designed with an eye to reinforcing the Berkshire culture, and making it one that will repel and expel managers of a different bent.”
Buffett’s Corporate culture
• In the case of Berkshire Hathaway Inc. and its subsidiaries, Buffett along with the founders and successive managers of those subsidiaries illustrate the process in action.
• The creation of such a corporate culture is a feat of corporate governance, a scenario in which norms of behavior and expectations are more important than compliance manuals and organizational structures.
• People who are entrusted with wide autonomy end up feeling a greater degree of responsibility than they would if they are subjected to rigorous oversight and second-guessing.
Buffett’s Corporate culture
Buffett’s Leadership Style
Democratic
Self-empowered
Servant Leader
Warren Buffet’s Conscious Leadership Development
21st Century Leadership
Role of Followers in Constructing the Leadership Identity
Followers provide valuable supports to leaders -> listen, reflect, comply, question and legitimize the leader.
Followers construct the leadership identity by acting as :
Isolates: Mailing in their job and put forth the least amount of effort for their pay.
Bystanders: They choose not to be engaged but they are observing.
Participants: They are engaged for or against the leader and put some of themselves
into the relationship.
Activists: They bring a high level of engagement into their role being visible and vocal
in their support or opposition to the leader.
Diehards : They bring strong personal and emotional qualities to their relationship.
However, they can be committed to an idea or the mission of the organization as
much as the leader. There is a high level of intensity to their support or opposition.
Leadership About Power
Leadership About Control
Leaders should know where they are going (goals, outcomes) and must predetermine the
plan for how to get there (process)
Controlling human behaviour and action during implementation—so there is minimal
variance from the predetermined plan—is a requirement of success
The environment/marketplace won’t change enough to be a factor during implementation,
and if it does, leaders can and must control its influence
If leaders encounter unplanned variables, they must quickly control the negative impacts
on the change effort through problem solving and then return to the implementation of
their current plan
Employees won’t naturally contribute positively to the change effort, so leaders must
“help” them by commanding and controlling their behaviour and involvement. Leaders
must force people’s cooperation.
Needing to alter change plans connotes leadership failure and means that the change
leaders did not plan thoroughly enough.
Leadership About Dominance
• An important aspect of Leadership • Dominant Leaders will take charge, however this done incorrectly
may be seen as bossy , pushy arrogant or bullying.
HIGH ENERGY A drive to achieve Ability to tolerate stress Enthusiasm Drive to achieve
Are Leaders & Leadership resisted ???
• Boosts Morale - leaders be well trained and intentional in how they lead will have an immediate impact on the work environment leads to a snowball effect of positive outcomes.
• Increases Productivity- Effective leaders are able to guide their team and minimize obstacles and utilize resource.
• Provides Better vision - vision makes problem solving easier and keeps the group from being blindsided.
• Fosters New Ideas- share new ideas, and allowing for them to study those ideas in detail.
References• http://
www.slideshare.net/bhansalijayanti/leadership-presentation-595053
• http://www.madstonblack.com.sg/_blog/The_Leadership_Performance_Blog/post/5_things_your_can_learn_about_leadership_from_Warren_Buffett/
• http://www.valuewalk.com/2014/08/value-corporate-culture-case-berkshire-hathaway/
• https://wrightingsblog.wordpress.com/2011/03/01/warren-buffett-culture-not-rules-determine-organizational-behavior/
• http://fortune.com/2011/03/17/warren-buffett-corporate-culture-guru/
References• http://
warrenbuffettbusinessleadership.blogspot.in/2013/11/what-was-his-leadership-style-and-was.html
• http://online.uiw.edu/news/souly-aligned-case-study• http://agnescheah.blogspot.in/p/blog-page.html• http://
www.investopedia.com/university/greatest/warrenbuffett.asp
Thank you!!!
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