Leadership concepts and practices

Leadership

Warren Buffett, a leading investor, is admired for many things. While some admire his investment capabilities, some are awed by the frugal lifestyle he lives despite being one of the richest men in the world. I admire both his business acumen and leadership style. In that regard, I have in the past read a significant number of articles and watched quite a number of documentaries regarding how he manages one of the most diversified investment firms in the world -- Berkshire Hathaway. Buffett is currently the C.E.O and chairman of the company. With so many subsidiaries to watch over, Buffett's approach to leadership must be really unique. Buffett's approach to leadership is a manifestation of 'Level 3' leadership.

True to one of the basic tenets of Level Three Leadership, Mr. Buffett has over time managed to influence not only the values but also the minds and hearts of his followers (both employees and investors) in an almost unprecedented fashion. In one of the documentaries I have watched about him, an employee of one of Berkshire's subsidiaries describes him as a master psychologist. In her opinion, Buffett's way of dealing with employees like her makes them feel empowered. In yet another instance in the same documentary, a journalist describes shareholders of Berkshire Hathaway as Buffett's disciples. Mr. Buffett is also skilled in the art of effective communication. His oratory skills are evident during the annual general meeting of the firm's stakeholders. Andrew Ross also points out that one of Buffett's greatest skills is persuasion, i.e. he is able to easily influence the thinking and actions of managers of Berkshire's numerous subsidiaries by making use of this rare skill. This way, he clearly demonstrates his respect for Berkshire's workers - and they do reciprocate. For this, he clearly comes across as being authentic.

In so many ways Buffett's leadership inspires me to develop my own leadership capacity. Seeing his successes and the devotion of those who work for him, I remain convinced that the relevance of influencing people's basic values as well as principles cannot be overstated if one is to accomplish organizational goals. To remain relevant in a highly competitive business environment, a business must be able to truly motivate its employees. In my opinion, employees operating at level one cannot guarantee the firm the vigor it needs to succeed in a truly competitive marketplace. Towards that end, as a leader, I would seek to appeal to people's feelings and thoughts. To be able to do this, I may have to further hone my listening as well as thinking skills.