Many people want to know the keys to successfully leading an organization. Interestingly, the answer is usually not found in the latest management trends, but in the fundamentals. And if we’re talking about fundamentals, there’s no one better than Warren Buffett, considered arguably the best investor in the world (I wrote about him in the post Warren Buffett’s Top Tips for Success).
Analyzing Warren Buffett’s work and ideas on leadership, I present these rules. They are not only a guide for leading an organization, but also a perfect manifesto for anyone who wants to manage their career with purpose.
HERE IS WARREN BUFFETT’S 7 GOLDEN RULES OF LEADERSHIP:
1. HIRE FOR CHARACTER FIRST
Intelligence and energy are important, but without integrity, they will destroy you. Buffett is clear on this: “We look for three things in a person: integrity, intelligence, and energy. If they don’t have the first, the other two will kill you.” A brilliant professional without values is the most expensive mistake you can make.
2. PROTECT YOUR REPUTATION AS IF IT WERE EVERYTHING.
Your reputation is your most asset. It takes decades to build and only minutes to destroy. Always act as if what you do today will be on the front page of every newspaper tomorrow. A good reputation is essential for developing good leadership.
3. STAY WITHIN YOUR AREA OF EXPERTISE.
You don’t need to know everything. True leadership consists of knowing your limits. As Warren Buffett says, “You don’t have to do extraordinary things to get extraordinary results. You just must do ordinary things exceptionally well,” and above all, know where your area of expertise ends.
4. SAY “NO” TO ALMOST EVERYTHING.
Focus is a superpower. Every time you say “yes” to something that isn’t a priority, you’re stealing time from what really matters. “The difference between successful people and truly successful people is that truly successful people say no to almost everything.” Great leaders are clear about their priorities, where to focus, and where not to.
5. THINK IN DECADES, NOT QUARTERS.
We live in an age of immediacy, but the best decisions are those that mature over time. Patience is a competitive advantage in a world that only looks at next month’s results. Remember: “Someone is sitting in the shade today because someone planted a tree a long time ago.”
6. ADMIT YOUR MISTAKES QUICKLY.
Don’t defend a bad decision out of pride. Authentic leadership is born from honesty, not perfection. Acknowledge the mistake, learn the lesson, and move on. The trust of your team and your market is based on that transparency.
7. MEASURE SUCCESS BY THE LIVES YOU IMPACT.
At the end of the day, the only thing that matters is how many people appreciate you and how many people you’ve helped. As Buffett said: “If you reach my age and nobody thinks well of you, I don’t care how big your bank account is, your life is a mess.”
Now you know these 7 golden rules of leadership by Warren Buffett. And remember one of Buffett’s most important quotes:
“The best investment you can make is to invest in yourself.”