Wealthy entrepreneurs do not like to concede anything. They are generally highly driven, ultra-competitive types whose willingness to prove others wrong is often a key part of their success.
Their confidence in their own abilities usually leads them to adopt a fairly simple management style – my way or the highway.
Of course, having vision, passion and drive does not always mean you have the skills to be a great manager. Indeed, the entrepreneur’s ability to focus on the big picture can mean they don’t have the time or the energy to focus on details, processes and even people.
Of course, an entrepreneur might know they are not a good manager, but getting them to admit it is a different thing. These people are generally never wrong, remember?
Which is why iron ore billionaire Andrew “Twiggy” Forrest’s admission yesterday was actually quite courageous.
“I think there are some Fortescue Metals people in the audience that will shake their heads if I say I’m a good manager,” Forrest said yesterday told a Queensland University of Technology business leaders forum in Brisbane.
“I’m not such a good manager.”
Forrest, who announced he would step down as chief executive a few weeks ago, said he found the process had been easier than he had expected, although there could be a few reasons for this – Forrest is of course facing being banned a director by ASIC over what it alleges is misinformation provided to investors.
However, Forrest did have some nice insights for entrepreneurs about picking talent, starting with the fact that personality is more important than skills.
“I think you can pick a dickhead at 100 paces,” he said.
He also revealed all Fortescue executives are put on three or six-month probation periods and dismissed if they “don’t work out”.
And Forrest is a fan of the open-plan office, which allows him to easily keep in touch with the culture he is building.
“I do actually walk around a great deal and find out what people are up to.”
It’s great management advice – but it’s nowhere near as important as Twiggy’s lesson that entrepreneurs need to know when to get out of management’s way.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
