Warren Buffett is known for his successful career as an investor and businessman. The quote from Buffett suggests that even highly reputable managers will struggle to overcome systemic economic issues inherent to a business. It acknowledges that the underlying challenges of an organization's business model and financial realities can be difficult for even brilliant leaders to overcome through management alone.

1. “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

2. 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.

3. About Warren Buffett

4. 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.

5. 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.

6. TRAITS
Humility
Decisiven
ess
Take Risk
Self-
Knowledg
e
Emotional
Resonance
Build
Teams
Passion
Convictio
n
Dedicatio
n
Magnani
mity
Buffett’s Traits

7. 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”

8. 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

9. Buffett’s Role in Org. Performance
Recruitment
Training
Communication
Motivation

10. Recruitment

11. Training

12. 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

13. 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.

14. 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

15. • 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

16. • 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

18. Buffett’s Leadership Style
Democratic
Self-empowered
Servant Leader

19. Warren Buffet’s Conscious Leadership
Development

20. 21st Century Leadership

21. 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.

22. Leadership About Power

23. 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.

24. 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

25. 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.

26. 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/

27. References
• http://warrenbuffettbusinessleadership.blogspot.in/2013/1
1/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/warrenbu
ffett.asp

28. Thank you!!!