Investor's Business Daily, June 22nd, 2007
The best lessons in business are often clear, says James Dale, author of "The Obvious: All You Need to Know in Business. Period."
Still, those business principles are routinely missed because applying them requires personal change.
"Human nature is to go for the diet pill, not the diet," Dale told IBD. "Change is hard. We can modify more than we can change."
Dale did some modifying while serving as president and CEO of W.B. Doner & Co., advertising agency to British Petroleum BP, CBS Sports and Verizon Wireless VZ. In his book, he compiled simple rules that helped form his management style.
Leaders learn to recognize and benefit from simple truths:
Shut your mouth. "One of the most obvious of the obvious (problems) is not listening," Dale said. "I firmly believe that the solution is contained within the problem. If you're not listening, you'll miss it."
Get over it. Pepsi PEP, Quaker Oats and Bird's Eye are prime examples of successes that crashed and burned along the way, so don't freeze up in a failure. "What comes afterward is much more important," Dale said.
Try different shoes. "Imagine you worked for yourself -- that one hit me years ago," Dale said.
He felt he was a decent boss, but realized he probably wouldn't be an encouraging enough boss to himself.
"That's what crystallized it for me, so I took an inventory of myself," he said.
Listen to experts. When Mary Buffett and her ex-husband, Peter, were considering a large business deal, her father-in-law chimed in with some sage advice.
"He told us: 'It's easier to stay out of trouble than it is to get out of trouble,'" Buffet told IBD.
The deal and the marriage are long gone, but that lesson stuck with her because the messenger was none other than investment mogul Warren Buffett.
In "The Tao of Warren Buffett," Mary Buffett and co-author David Clark put together a collection of the Wall Street legend's pinpoint 14sights.
What makes the Oracle of Omaha's lessons simple, yet savvy? "I think it's his ability to really focus on the fundamentals of the business," she said. "He's a cross between Will Rogers and Frank Capra."
Consider the source. "Never ask a barber if you need a haircut," Warren Buffet has said. He points out that the people you pay to fix your problems will find more of them, even if there's nothing to fix.
Do your homework. "Risk comes from not knowing what you are doing," said Warren Buffett.
Understanding exactly what you're investing in is the only way to remove risk.
Character counts. "You can't make a good deal with a bad person," he said. The world has enough good, honest people to avoid the dishonest ones entirely, he says.
Don't get personal. "A stock doesn't know you own it," he said.
Buy and sell stocks when the time is right, Buffett says, regardless of whether you love or hate them. Stocks don't care; your wallet does.
