"Working with Warren"-Bruce Whitman, CEO, Flightsafety
Thursday, May 03, 2007
|
|
|
|
SUSIE GHARIB: As chairman of Berkshire Hathaway, Warren Buffett gives total freedom to the CEOs of his operating companies. No micromanaging from headquarters. One of those companies, FlightSafety International has flourished in the 10 years since Buffett acquired it. It has grown into the world's largest aviation school, providing training for more than 75,000 pilots a year. And it's one of the most profitable divisions of Berkshire Hathaway. As we wrap up our series "Working with Warren" I asked FlightSafety ceo Bruce Whitman what's the biggest advantage of working for Buffett.
BRUCE WHITMAN, CEO, FLIGHTSAFETY: Warren Buffett has the direct line and I have the number and he answers his own phone if I call him. And so, at any time that I feel or we as a team feel that we need his advice, we have access to it. In addition to that, he's just a great thinker. He has a big picture view of the world and just having him available is just the best.
GHARIB: Mr. Whitman in the latest annual report, Warren Buffett said that he's taken the easy route, that he lets his managers run their own shows and his only task is to cheer them on. Is that really the way that Warren Buffett operates?
WHITMAN: Absolutely. Warren lets you run your business as though it was your own. And he expects you to run it as though it was your own and spend money as though it was yours. And he's a terrific supporter. He's a cheerleader, but he's available if you need him.
GHARIB: So he really stays out of the way?
WHITMAN: He doesn't require budgets. He doesn't require business plans. Because he thinks if you need to change them, you might be reluctant to do that if you had already committed to them.
GHARIB: If you go to Buffett with a problem is he the type to give you a solution or does he send you back to the drawing board?
WHITMAN: He's not one to make a unilateral decision. I mean he'll talk with you about it. He may point out something to you. But in the end, he will be guided by what you recommend because he thinks you're closer to the problem.
GHARIB: Is he quick and decisive or does he take his time and get back to you.
WHITMAN: No, he's quick and decisive. He's got great instincts. He's got great instincts with business and certainly with securities, but great instincts with people.
GHARIB: Mr. Whitman, if you were going to make a big business decision, do you feel the need that, to get the OK from Buffett before you proceed?
WHITMAN: The one thing that I don't ever want to do is surprise Warren, even if a good way. I'd like for him to know what's going on. And so if I feel that there is something that I'd like for him to know, I will call him.
GHARIB: In talking with the other CEOs at Berkshire Hathaway, they say that it's very rare that Buffett would stop by their headquarters. Why is it that he doesn't stop by, that (INAUDIBLE)
WHITMAN: Well, I think he has confidence in his managers. He emphasizes integrity and ethics and we all subscribe to those very important components. And I think as long as we do our job, he knows that we're doing the right thing. If he didn't think we were doing the right thing, I'd think he would check on us.
GHARIB: Do you think that there is a downside to this kind of hands- off management style?
WHITMAN: No, not with Warren. There might be with someone else. But Warren has great people in these manager positions. A number of us have been there a long time. And we work because we love what we do and we love working for him.
GHARIB: Is there any way that Buffett has influenced your management style or your management beliefs?
WHITMAN: I think that his sense of humor has rubbed off on all of us. He's got a wonderful sense of humor. I think his humility is terrific and - certainly something we all respect and I hope some of those good qualities have rubbed off, yes.
GHARIB: From what I heard about Warren Buffett, it doesn't seem like he's motivated by money. What makes him tick?
WHITMAN: It's not about money. It's really about doing what's right and about the feeling of accomplishment and I think about the feeling of helping people. What he's just done with his foundation is a great example of how he wants to put this money back into circulation for the good of society.
GHARIB: I understand that none of the CEOs at Berkshire Hathaway companies have ever quit. Why is that? What is the attraction of working with Warren?
WHITMAN: Warren is one of a kind. I think he's got a tremendous personality. He's a lot of fun and that's a big part of it. You want to work with people that are fun, that you can enjoy being with. And I think anybody that knows Warren knows that about him. And he is humble. He has no pretenses as we've discussed. And so he makes you feel good to be around.
GHARIB: On Monday, we'll hear from the big boss himself, Warren Buffett. This weekend, he'll preside over Berkshire Hathaway's annual shareholders meeting. I'll have a wrap-up from Omaha, Nebraska.
