Chief-Executive-Officers Leadership Abilities - Assignment Example

CEOs Leadership Abilities Part A. According to numerous scholars, the minds of Chief-Executive-Officers are in a significant manner a center of authority and power in the corporate world. Entities highly depend on CEOs in regards to how they operate, how they view change factors, and prioritize various aspects of the organization. This paper focuses on Warren Buffett, the CEO and director of Berkshire Hathaway since 1970. The leadership skills and abilities of the CEO are vital in the success of an organization. Ian any organizational entity, there are numerous divergent issues that influence the progress of the firms. Effective leaders such as CEOs have the capability to direct the organizations with efficacy in order to realize the objectives of the entities (David, 2003). It is imperative not to understate abilities of leaders in the success of firms. As a result, this paper discusses the capabilities and effectiveness of CEOs. The paper assesses an executive, Warren Buffett, which differs from others in attributes and ability in calculating risks that enhance the success of their respective organizations. The aim of the discussion is to analyze a consensus of ideas and perspectives from an organizational leader in regards with what it takes to ensure the success of an entity and higher levels of effectiveness. The paper provides an overview of the chosen CEO by highlighting the achievements, highlights, as well as significant events characterizing the leader’s career. The CEO’s leadership career will incorporate the concepts of an effective leader including personality and leadership capabilities, motivation and empowerment, his vision and strategic bearing, communication skills moral and courage direction as well as values and culture. Part B: As an influential person in the realm of investing and one of the wealthiest people in the globe, Warren Buffett is the Chief-Executive-Officer and a large shareholder of Berkshire Hathaway. Berkshire Hathaway is a multinational conglomerate entity with its headquarters situated in Omaha. Buffett came from a humble beginning to one of the wealthiest figures in the world. Characterized by business acumen as well as his ideals and principles he established his investment principles and financial abilities at an early age, which enabled him to acquire many riches. Born in 1930 in Omaha, Nebraska, Warren Edward Buffett worked at a grocery owned by his grandfather in his early years. To show his investing qualities, Buffet purchased a stock at the age of eleven, which resulted in a $5 profit and when he turned fourteen, he became a delivery boy for a newspaper firm. Because his father was a renowned stockbroker, he familiarized himself with the inner workings prevalent in the stock market. At the University of Nebraska, Warren Buffet attained his bachelor’s degree and later graduated at Columbia Business School in 1951, after completing his college education where he earned a M.S. in Economics. Buffet’s corporate career began when he started as an investment salesperson at Buffet-Falk & Co. between 1951 and 1954. He then moved to Graham-Newman Corp and as a securities analyst where he worked from 1954 to 1956. During this period, Buffet had an impressive amount of savings as of 1956, with which he began Buffet Partnership. Buffet Partnership was an investment partnership situated in Omaha. Consequently, he began to operate various partnerships concurrently and by the late 50s, he was operating seven entities, and by the early 1960s Buffet was a millionaire. His biggest leap was when he became a general partner of Berkshire Hathaway Inc Chairman and its CEO in 1970. Buffet’s philosophy of investment was one based on the belief of acquiring stock in undervalued and well-managed organizations. After purchasing a company, his aim was to cling to the securities for an indefinite period. The companies he acquired under his principle include Coca-Cola, Gillette Company and American Express, entities that fall under his portfolio of interest. For the companies that he acquired, in numerous scenarios he let the prevalent management teams continue to handle the daily activities of the organizations such as companies including The Pampered Chief, Dairy Queen, See’s Candies GEICO Auto Insurance, and Fruit of the Loom. Part C: Warren Edward Buffett was named a “top money manager of the 20th Century” by Carson Group in a survey while the Time Magazine as one of the "100 Most Influential People" in the world listed him in. This is due to the immense leadership skills, values, and vision that have characterized his career. He is a famous disciple of Benjamin Graham, a pioneer in the realm of value investing, which has typified Buffett’s decisions and investment visions. His business acumen and personal ethics played a significant role in the public and private sector (Draft, 2011). Motivational leadership is a skill whereby a leader implements a strategy and model that for persuading individuals to follow them as well as the ability to inspire and uplift individuals to perform to their capabilities (Braun, Wesche, Frey, Weisweiler, and Peus, 2012). Warren Buffet has this effect on individuals to perform to their capabilities, as he was interested in establishing a trusting and safe environment as well as ensuring that the Berkshire Hathaway Company is positioned to survive and succeed in the market. Buffet shares his skills of leadership at the prevalent organizational levels as he tends to be allowed to divide his leadership responsibilities. There are various titles in the business world that are usually given in regards to leadership roles and in this case Warren Buffett tends to wear them all due to his capability to perform effectively in numerous positions of leadership. The distinction between good management and effectual leadership is a realm that many scholars discuss. Warren Buffet is a good leader due to his ability to be organizational, a good budgeter, and controller. His reputation for sincerity, combined with his experience, hard work, and enormous securities and finance knowledge enabled him to make appropriate decisions regarding his business ventures. The capability to amalgamate self-interest and desire for his prevalent investors to succeed successfully furnished his philosophy, which has been in use for decades. The CEO of the conglomerate entity lacked the belief in stock tips as he emphasized and preferred that investors did the work in ascertaining the various elements of the stock market. The elements of patience and humility characterize Warren Buffet’s personality. He is a humble individual, a factor that has resulted in his numerous successes. He believes that working for something is an essential component of life as he rejects the notion of being handed everything through a silver spoon. To show his humility, he decided that his fortune would go to Bill & Melinda Gates Charity Foundation that is considered as one the most charitable organizations in the world. The aspect of patience is an element that Buffet learned at an early age in the realm of investment. At the age of eleven, Buffet managed to acquire three shares trading at $38, and as the stocks quickly dropped to $27, Buffett took the next chance to trade his shares at the next time that the stocks rose. When the stock climbed to $40, he immediately sold it for a small profit compared to what he would have gained had he had had a little patience as the stock later traded at almost $200 with each share. This became an invaluable lesson in his career that Buffet utilized, due to his ability to operate with the principle that was based on picking an appropriate company at the right time and price, which required patience. Numerous scholars have discussed on the success of Warren Buffet, but the aspects of effectual leadership, patience, humbleness, and humility have all been prevalent in the studies. Buffet’s patience and overall leadership qualities are largely attributable to his success. Effective leaders are characterized by the patience to persist through difficult times and solving conflicts, empowering their staff along their careers. It is imperative to state that throughout the career of Warren Buffett, he has paved way for the next generation CEOs by setting an example of the qualities that a great leader is required to possess.   References Braun, S., Wesche, J., Frey, D., Weisweiler, S., and Peus, C. (2012). Effectiveness of mission Statements in Organization - A Review. Journal of Management and Organization, 18.4: 430-444. Bushardt, S. C., Glascoff, D. W. and Doty, D. H. (2011). Organizational Culture, Formal Reward Structure, and Effective Strategy Implementaion: A Conceptual Model. Journal of Organizational Culture, Communication and Conflict. 15.2, 57-70.  David, F. R.(2003). It's Time to Redraft Your Mission Statement. The Journal of Business Strategy, 24(4), 11-14. Draft, R. L. (2011). The Leadership Experience, (5th ed.). Mason, Ohio: Thomson South- Western. Chs. 13-14, pp. 395-455 Read More