Integrity and ethics: The newspaper test
When asked how he instilled ethical leadership in his managers, Warren
Buffett replied that he has all the money he needs and can afford to lose it
on a bad decision. What he, or his companies, can’t afford to lose is their
reputation. He has two reputation tests: the legal standards test and the
newspaper test. Buffett went on to say that if an article appeared in a local
newspaper about a decision and action you made, and your family and
friends read the article, would you feel good about it?
A reputation is built, tested and reinforced over time. Integrity and ethics
are cornerstones of a solid, positive reputation. Integrity and ethics are
based on trust, honesty, sincerity and steadfastly adhering to high moral
standards and principles.
Getting advice
When asked whom they go to when they need advice, Buffett replied, “I
look in the mirror. The nature of what I do requires that I think
independently.” He explained that he ultimately is responsible for his
decisions and actions, and that he needs to determine if a decision is
consistent with what he believes. Bill Gates noted that his strengths are on
the technical side of the business. He said he turns to people who provide
him information in areas that are not his strength to cover for his blind
spots. He goes to his partner, father and wife.
Influential power
When asked how people can move up the ranks of management, Gates and
Buffett both spoke of hiring the right people, supporting their success and
letting them do their jobs. Gates looks for managers who have strategic
thinking skills, technical skills and people skills. If they are not good at one
of the three, they need to tap others with the skill. Buffett spoke of how the
unusual people stand out with their energy, quality of their ideas, and
ability to influence those around them. Bringing the best out of others pays
huge dividends. People who stand out also don’t try to outdo others or
control others, he concluded.
In their roles both Gates and Buffett exemplify power in that they have the
ability and capacity to make things happen. Power can be fear based,
cohesive and controlling as “in power-over or control.” Power can be
supportive and helpful as “in the power to influence.” It appeared in their
dialog that they knew the value of influential power, which is based in
integrity, trust, fairness, respect, and consistently doing what’s right for all.
As Buffett said, having the ability to influence those around you brings out
the best in others and pays huge dividends.
Having a higher purpose
When asked how they would leave the world a better place, both Gates and
Buffett see a higher purpose for their energies and their success in the
world of business. They want to make a difference in the lives of others.
Gates recommended the importance of getting a broad exposure to people
less successful than you and doing what you can to make a difference.
“Equity,” he noted, “is a serious issue in the world—we need to invest for
the long term.” The Bill and Melinda Gates Foundation does just that. In
fact, they provide 90 percent of the world’s polio vaccines.
Buffett stressed that he and Gates got lucky tickets in life. They were born
in America and are reasonably bright. Some received a bad ticket and need
help from others in the world.
Buffett noted that he is transferring 99 percent of his wealth to the Bill and
Melinda Gates Foundation so together they can use their wealth for the
common good.
Keeping score of success
When asked their definition of success, Gates acknowledged that his was
raising his family and doing it the right way. Buffett referred to his “inner
and outer scorecards.” The inner referred to living from his values and what
is really important in life. The outer scorecard refers to what could be
measured and observed by others. In Buffett’s view, the inner scorecard is
the one that matters. He summed up by saying you know you have led a
successful life if the people that you hope will love you do. He noted that he
has seen too many business leaders who focused on the outer scorecard
and missed out on the love side of the equation.
The dialog between Gates and Buffett was informative, insightful and
inspirational. Somewhere along their paths in life they seem to have tapped
into their inner wisdom, purpose and passion. They have influenced many
lives around the world, and through their philanthropy will continue to
make a difference. They serve as a reminder to all of us to connect with
what gives our life meaning and answers why we’re on this journey and
what we are here to do that will make a difference in the lives of others.