Warren Buffett's Management Style

I watched the interviews of Warren Buffett http://profit.ndtv.com/video/show/194418 and Ajit Jain (President of Berkshire Hathway's Reinsurance business and the one tipped to be Warren Buffett's successor) http://profit.ndtv.com/video/show/194467 on NDTV Profit last night.

There was something Ajit mentioned about Warren's management style that really caught my attention - He mentioned that "Warren does an incredible job of decoupling the decision making before the outcome occurs and the actual outcome of the decision, while evaluating and measuring his people. So this makes it easy and very clear to work with Warren. He went on to elucidate by saying that the way the world typically works, you may have made a good decision, but end up with a bad outcome and the world comes down hard upon you. On the flip side, you may have made a bad decision and end up with a good outcome and praises are showered upon you".

This ability to do this differentiation repeatedly could well be one of the big reasons why Berkshire is so successful.