Warren famously invests in management, specifically to avoid firing people. He does not enter companies where a management change is part of the plan.
“One thing I don’t like is when I have to make a change in management, when I have to tell somebody I think somebody else can do a better job.”
That’s an interesting way to phrase it — that someone else could do a better job. Not that the manager is bad or incompetent or doing anything wrong — simply that there is room for improvement and he has a duty to make that improvement. That doesn’t make it easy for him though:
“It’s pure agony, and I usually postpone it and suck my thumb and do all kinds of other things before I finally carry it out.”
It seems like most people are the same way — firing may be the most-procrastinated task in the business world. No one wants to pull the trigger.
When the firing decision is not based on performance, but on infractions of ethical or moral grounds, things are much more clear cut. Here’s Buffett:
“Lose money for my firm and I will be understanding. Lose a shred of reputation for the firm and I will be ruthless.”
"How to Fire Someone: How to Decide, When to do it, and How to be Guilt-free" Medium. 5/17/2015
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