WARREN BUFFET ON SELECTING THE RIGHT STAFF
Use to remind you of the key characteristics you should be looking for when you appoint or promote staff.
It’s become something of a truism that a manager is only as good as their staff. If you have good staff, your job as a manager becomes infinitely easier. But if you have poor and/or disruptive staff your life can be hell.
Warren Buffet (1930–), the world’s most successful investment manager, likes to keep things simple; for example, his investment strategy is to buy good stocks and hold them for a long time. He has applied the same simplicity to the appointment of staff and suggests that there are just three things you should look for when recruiting people i.e.:
However, he also sounds a note of caution. Yes, you should employ people who have intelligence and energy but:
If they don’t have integrity the other two will kill you. You think about it; it’s true. If you hire somebody without integrity, you really (do) want them to be dumb and lazy.
Warren Buffet
Integrity is the key factor for Buffet. If a person lacks integrity they are a danger to you and the organisation. Indeed, much of the 2008 financial meltdown can be blamed on a lack of integrity among highly intelligent and well-motivated bankers.
WHAT TO DO
- Whenever possible promote from within. Such a policy creates staff loyalty and you are less likely to appoint a dud because you (should) know the person’s strengths and weaknesses. Only if you need new blood or a skills set not found in your organisation should you consider going outside.
- At the interview concentrate on identifying which applicant/s demonstrate integrity, intelligence and energy. If you can spot those, then any shortfalls in skills can be taught.
- Integrity/character is the hardest trait to confirm. Look at how the person presents themselves. Are they confident without being arrogant? Do they recognise that they don’t have all the answers? Do they take pride in their work and achievements? If they do, they won’t want to let themselves, and by implication you. Do they talk about what they and their team have achieved or is it all about them? Ask them about any ethical dilemma that they faced in the past and how they dealt with it. The problem doesn’t have to be work related. If they can’t think of an example it’s very likely that they have few if any guiding principles.
- Intelligence is fairly easy to identify. Obviously, start by looking at the person’s educational attainments. However, their interaction with you or the interview panel will tell you more than any certificate. Do their answers show a level of analysis? Do they try to contextualise their responses in terms of your organisation? Can they see the bigger picture and how their work will fit into the whole? Are they inquisitive and interested in your operation? Do they possess common sense or are their ideas unworkable in the real world?
- Energy and enthusiasm are easy to spot. Simply ask yourself, ‘Do I feel energised speaking to this person?’ If the answer is ‘yes’ than other people are likely to be similarly enthused by the applicant.
QUESTIONS TO ASK YOURSELF
- What’s the first thing I look for when appointing or promoting people?
- How successful has my current approach to recruitment and promotion been?