Warren Buffett’s lifelong investing partner, Charlie Munger (age 90), has a unique way of looking at the world. What he says sounds more like folk wisdom than the sage advice of a billionaire. Included below are 4 quotes from Munger. Although they come across as very simple, each can be taken as sound advice for practice management. Take a look.
1. Choose clients as you would friends.
Business and personal relationships are similar in that the best ones involve both parties liking each other.
This doesn’t mean you have to spend Christmas together or go catch a matinee in the middle of the day with a client. It just means there should be some level of good chemistry between you.
Keep in mind that if interactions with clients are negative from the start, they may not get much better.
And rapport goes both ways. Clients choose to do business with people they know, like, and trust.
2. I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.
Even if you can “dream it all up yourself,” why spend that valuable time reinventing the wheel? Leverage the fact that there are already resources, services, and products that can do much of the heavy lifting for you; leaving you to get more done in less time.
If you are planning a public event, alleviate the task of creating a presentation by using one that is already professionally designed and comes with speaker notes you can customize.
3. No wise pilot, no matter how great his talent and experience, fails to use his checklist.
We have extolled the virtues of systems and processes for a while now.
It grows business by keeping you doing the right things.
Think about a simple grocery list. Using one means you’re less likely to end up with a cart full of items you never intended on buying. Or worse, it means you won’t get home and realize you forgot to buy the exact items you intended on purchasing in the first place.
So much time is saved if your team can see, in writing, what their daily roles and responsibilities are.
Written procedures, processes, or checklists safeguard against important details falling through the cracks. They also ensure consistency within your communications, prospecting, and other business activities.
Ways in which written processes are helpful:
- Helps hold your team accountable
- Makes it easier to train new people
- Improves quality of your clients’ experience
- Makes your practice more salable
Read more about Why You Need To Systemize Your Practice.
4. If you always tell people why, they’ll understand it better, they’ll consider it more important, and they’ll be more likely to comply.
Including reasons why makes you more persuasive in your requests (or advice) to staff and clients. It lets people know what you are saying is thought out, and shines a light on expected results.
I hope you take away something of value from the quotes listed above. Just remember: Good advice is helpful, but we all succeed or fail in direct proportion to how well we can execute the advice we receive.