3 posts tagged “management”

The first 10 pages of the recently released annual report from Berkshire Hathaway Inc., Warren Buffett, describes how a company should be managed. 

Key to Buffett's investment success is the fact that he takes managing controlling ownership in the companies he owns or buys stock in companies that have long term competitive advantage or a strong global brand.  Bottom line management is key for Buffett.

Last week was not a good week for Canadian investors. The TSX took a 4.5% hit, from mid July where the S&P/TSX composite index was at 14,500 to closing on Friday July 27th at 13, 884. The primary reason for the sell off was the fear of the sub-prime worries in the U.S.A. Ultimately it will a have a negative ripple effect on the Canadian economy.

But if you analyze the market more closely you’ll realize that since 2003 the TSX has grown from 6,100 to Friday’s close of 13,884. More than doubling in the last five years. So many investors who stayed invested should be still way ahead. Selling now is a mistake. Instead, investors should be buying more, obviously very hard to do. But if you are a prudent investor and not a fly by night trader you don’t really have anything to worry about.

Most entrepreneurs understand the fundamentals of business. By starting and operating a business entrepreneurs realize that companies do not disappear over night. If the fundamentals are there along with a solid management team to weather any storm then you don’t have anything to worry about. A great company always knows what to do in good times and in bad times.

If you think you still should sell your stocks, then read this article first.

I recently tuned into an interview with Henry Mintzberg.  He talks about his upcoming book  "Managing Right Now".  Professor Mintzberg succinctly defines managerial work by referring to four planes:

Plane #1.  The Thinking Plane---which involves strategizing, insights, big picture stuff

Plane#2. The Information Plane---processing information, finding out what is going on, issuing orders etc.

Plane#3.  The People Plane--Leading people and linking to people externally.  I agree with his point that leadership and management are one in the same.  He asks, "Have you ever seen a leader that is a bad manager or vice-versa?"  The answer is clearly, no.  So he does not understand why people tend to  separate the two, although he says it is ok to separate some characteristics..  But ultimately his view is" ..the separation [of] leaders and managers is nonsense and creates a lot of misery.  Managers have to be leaders and leaders have to be managers.."

Plane#4. The Action Plane--Managing projects, fighting fighters internally, and doing deals externally.

Pretty basic stuff that should not leave anyone guessing what management is about.