Berkshire’s New Management Model?

[GStocker]

In a book he authored in 2007, David Sokol, projected successor to Warren Buffet, wrote that he maintains a notebook of the successes and failures of those on his team and ranks each in terms of whom he would terminate at any given time.

Is this effective leadership technique or management by fear?

Read more at: http://corporatedeathspiral.blogspot...ment-tool.html

[Dr Stan]

Gregg Stocker, the author of the blog goes on to say:

"Although I've seen a number of different approaches to leadership over the years, I've never seen one that makes use of a termination list."

This is effectively the same model used by Neutron Jack Welch at GE. While it helped bolster the stock price, it created a climate and culture of fear at GE. His subordinates hired by other companies in leadership positions imposed this model with the same results. Consequently many companies, such as Home Depot, eventually found themselves in the death spiral.