Warren Buffett Management Style

Warren Buffett is one of the richest men of all time. He is a one of a kind investor, a magician of sorts and he has built an empire that few can aspire for. Warren Buffett is a case study in business schools, a role model for aspiring traders, investors and entrepreneurs and he has a legacy that has already made a few billionaires. Warren Buffett management style has been extensively studied by many and yet it has been emulated by very few. That is because it is a very difficult leadership style. The Warren Buffet management style is not applicable everywhere or in every industry and it would not work for every leader, manager, business owner or even an investor like Buffett.

What is the Warren Buffett Management Style?

Warren Buffett management style is called Laissez Faire leadership. In this type of leadership, the leader or manager doesn’t have a hands-on approach. Instead, a team and every member of the team is allowed absolute freedom to do whatever they want, whichever way they wish to use their time and they can have complete autonomy to get things done, as long as the job gets done. There is no managing or monitoring, there is no micromanaging or breathing down the neck of employees. There is free flowing information, an open working environment but with discreetness for sensitive information, everyone has the space and resources to get a job done and one must get it done without being consistently bombarded with questions and prompts by the manager or leader.

Why Is This Management Style So Difficult?

The Laissez Faire leadership style or Warren Buffett management style doesn’t work in every scenario. You can only provide autonomy to people who would not misuse it. You cannot afford to not supervise people who are not astutely responsible. You cannot have a hands-off approach when you know that such a practice will lead to employees wasting time, resources and not getting anything done. Indecisive, less qualified, unaccountable and ambitionless people cannot be lead using the Warren Buffett management style.

This type of leadership works with highly qualified, experienced or specialized, motivated and ambitious professionals. Those who know how to get the job done, would get it done because of his or her own passion or interest and would want to grow and would proactively extract all guidance from the manager or the leader are ideal for such management style.

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