Companies can be managed from the top in two ways. The public is not generally conversant with the difference. They’re:
One: Very strongly run, or centralized, where the CEO is in complete control of the company’s daily operations. Many executives prefer this approach. I ran a highly successful 74-office employee-contracting firm using this management principle. Those offices operated in a myriad of industries.
Two: Loosely and decentralized, where more local control is allowed. Warren Buffett operates his different companies in varying industries on a decentralized basis. He has his individual companies perform without very strict daily direction from his headquarters.
I prefer centralized, hands-on oversight, which I believe is better from the operational standpoint. On the other hand, if your goals are primarily that of an investor, you never have the time, nor perhaps the inclination, to cope with daily administrative duties.
In short, there are two different types of CEOs for two different styles.
No comments:
Post a Comment