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APRJ 699 – Applied Project
Billion Dollar Giants Thriving Under Pressure:
Are Warren Buffet and Larry Ellison Renaissance Leaders?
Submitted by: Derek Christian Submission Date: February, 2014
Word Count: 17,455 Applied Project Coordinator: Dr. Teresa Rose
Applied Project Supervisor: Dr. Stephen Murgatroyd
ii
Abstract
Throughout history leaders have always represented role models, facing
challenges, creating or adapting to change and inspiring followers. The 21st
century has created new role models. With the global expansion of capitalism,
innovative technological developments and a knowledgeable workforce driven by
a consumer culture and the accumulation of wealth, it is only natural that people
would look to the Fortune 500 list for role models. Business leaders like Warren
Buffett and Larry Ellison, who have acquired immense personal wealth and
steered their organizations through these challenging times, are portrayed as the
best examples of successful leadership. Business executives all over the world
have been told that in order to be become successful leaders they should study,
understand, replicate and, whenever possible, associate with the best. For
Stephen Murgatroyd and Don Simpson (2010), creators of the Renaissance
Leadership theory, the most successful leaders of our time will see global,
demographic, economic and technological challenges as opportunities and help
to create a new reality beyond the world of business.
The purpose of this study was to explore the leadership styles and practices
of Warren Buffett and Larry Ellison within the context of the Renaissance
Leadership Theory in order to discover if these individuals represent effective
leaders for anticipating and meeting the challenges of the 21st century. Following
a brief historical overview of developments in leadership theory, the drivers for
change in our current global environment will be discussed. The six practices of
Renaissance Leadership are reviewed in detail along with the characteristics of a
iii
Renaissance organization. Personal profiles of Buffett and Ellison will be
presented, focusing on their overwhelming personal and organizational success
in their respective fields of investing and technology.
Using qualitative methodology, this research relied on a content analysis of
secondary data sources to identify themes and patterns. Findings reveal that
while Buffett and Ellison are both successfully leading their organizations through
the unpredictable, knowledge-based global economy, only Buffett represents a
renaissance leader. Buffett not only exhibits all six characteristics of a
renaissance leader, using the theoretical framework developed by Murgatroyd
and Simpson (2010), but is also guiding a renaissance organization. He is a
leader with high integrity who has changed the investment world with his
innovative strategies and recognizes the value of a knowledgeable workforce.
Most importantly, Buffett strives to make the world a better place through his
ethical conduct, responsibility to shareholders and his teaching. This study
revealed that while Larry Ellison is certainly on the path to becoming a
renaissance leader, he falls short in the area of personal mastery. While there is
no doubt Ellison’s innovative product ideas and high performance company have
changed the way businesses operate throughout the world, his past unethical
conduct is not characteristic of a renaissance leader or a renaissance
organization. The limitations associated with this study as well as the
Renaissance Leadership Theory will be discussed and recommendations made
for greater attention to the role of followers. The implications of this research
address the importance of ethical leadership in the 21st century. Practical
iv
suggestions are made concerning the way in which leaders can behave ethically,
innovate to create high performance organizations while simultaneously acting as
guides and positive role models in the midst of this complex period of modern
Renaissance.
v
Table of Contents
Abstract ................................................................................................................. ii
Table of Contents .................................................................................................. v
Chapter One: Introduction ..................................................................................... 1
Research Purpose ............................................................................................ 2
Research Questions ......................................................................................... 3
Importance of Studying Successful Leaders and Renaissance Leadership ..... 3
Chapter Two: Literature Review............................................................................ 5
Brief Historical Overview of Theoretical Developments .................................... 5
Challenges of Leadership in the 21st Century .................................................. 9
Globalization............................................................................................... 10
Knowledge-based workforce ...................................................................... 11
Competition ................................................................................................ 11
Volatile economy ........................................................................................ 12
Public mistrust ............................................................................................ 13
Technology ................................................................................................. 15
Demography ............................................................................................... 15
Social and environmental responsibility ..................................................... 16
Chapter Three: Renaissance Leadership Theory ............................................... 17
Six Practices of Renaissance Leadership....................................................... 17
Practice personal mastery .......................................................................... 18
Applying a “Glocal” mind set....................................................................... 19
Accelerating cross-boundary learning ........................................................ 19
Thinking back from the future ..................................................................... 20
Leading systemic change ........................................................................... 20
Driving performance with a passion ........................................................... 21
Renaissance Organizations ............................................................................ 21
Chapter Four: Personal Profiles .......................................................................... 23
Warren Buffett ............................................................................................... 23
vi
Larry Ellison .................................................................................................... 23
Chapter Five: Methodology ................................................................................. 28
Research Design and Data Collection ............................................................ 28
Data Analysis .................................................................................................. 28
Chapter Six: Results ........................................................................................... 31
Thriving Under Challenges of the 21st Century ............................................... 31
Warren Buffet ............................................................................................. 32
Globalization .......................................................................................... 32
Knowledge-based workforce .................................................................. 34
Competition ............................................................................................ 34
Volatile economy .................................................................................... 35
Public mistrust ........................................................................................ 36
Technology ............................................................................................ 38
Demography .......................................................................................... 39
Social and environmental responsibility ................................................. 39
Larry Ellison................................................................................................ 41
Globalization .......................................................................................... 41
Knowledge-based workforce .................................................................. 42
Competition ............................................................................................ 11
Volatile economy .................................................................................... 44
Public mistrust ........................................................................................ 44
Technology ............................................................................................ 46
Demography .......................................................................................... 46
Social and environmental responsibility ................................................. 47
Renaissance Leadership Practices: Warren Buffet ........................................ 48
Practice personal mastery .......................................................................... 48
Applying a “Glocal” mind set....................................................................... 50
Accelerating cross-boundary learning ........................................................ 51
Thinking back from the future ..................................................................... 53
Leading systemic change ........................................................................... 54
Driving performance with a passion ........................................................... 55
vii
Renaissance Leadership Practices: Larry Ellison ........................................... 56
Practice personal mastery .......................................................................... 56
Applying a “Glocal” mind set....................................................................... 58
Accelerating cross-boundary learning ........................................................ 59
Thinking back from the future ..................................................................... 60
Leading systemic change ........................................................................... 61
Driving performance with a passion ........................................................... 62
Renaissance Organizations ............................................................................ 64
Berkshire Hathaway ................................................................................... 64
Oracle ......................................................................................................... 66
Chapter Seven: Analysis ..................................................................................... 69
Summay of Findings ....................................................................................... 71
Limitations ...................................................................................................... 72
Chapter Eight: Recommendations ...................................................................... 70
Theoretical Implications .................................................................................. 70
Practical Implications ...................................................................................... 71
Chapter Nine: Conclusion ................................................................................... 74
References ......................................................................................................... 76
1
Chapter One: Introduction
Throughout history there has always been a fascination with great leaders,
particularly those who can overcome significant challenges to achieve success.
In the 21st century, Warren Buffett and Larry Ellison represent two extraordinary
leaders who have guided their organizations through intense competition,
unprecedented technological developments, economic instability and
globalization. Successful business leaders have come and gone, but few have
remained a “constant” threat in the business world and achieved the status of
“megabillionaire” in the midst of change and uncertainty (Hagstrom, 2005 p. 1).
As CEO of Berkshire Hathaway Inc., one of the largest publically traded
investment companies in the world and among the “most admired,” Warren
Buffett has become a global symbol for successful leadership (Colvin, March 21,
2011). As of January 2014, Warren Buffett represented the second wealthiest
man in the United States and the fourth richest man in the world with a reported
net worth of 58.5 billion dollars (Forbes, 2014a). Buffet has investors all over the
world following his every move and leaders in every industry attempting to
replicate his leadership style and strategies. Since 2000, Larry Ellison, CEO of
Oracle Corporation, has also been consistently among the top five wealthiest
people in the world (Smith, 2010). He has been described as “one of the most
successful entrepreneurs” in the 21st century (Finkle & Scorseby, 2012 p. 111).
A “first mover and strong current leader in the relational database market,” his
company continues to rank among the top 50 most admired companies in the
world (Finkle & Scorseby, 2012 p. 117). While Ellison has been described by
2
some as a “narcissist,” (Maccoby, 2004) his engaging and animated leadership
style has captured the attention of leaders around the world.
There is little doubt that Buffett and Ellison are strategic leaders, able to
adapt to change and guide their organizations through uncertainty. What is less
clear is exactly how these leaders have faced the challenges of the 21st century
and whether or not these men are forward thinking, “Renaissance Leaders.”
Leaders who exhibit the six characteristics of Renaissance Leadership anticipate
and plan for change and actually make their visions for the future a reality. Their
companies typically represent Renaissance Organizations, thriving in the midst of
challenging times. Various leadership theories have been used in the past to
provide insight into why leaders are so successful but few attempts have been
made to conduct a systematic analysis of effective, innovative leaders and
organizations using the concepts and practices of the Renaissance Leadership
model.
Research Purpose
The purpose of the study will be to obtain a more comprehensive
understanding of the leadership styles of Warren Buffet and Larry Ellison and the
organizations they lead within the context of the Renaissance Leadership theory.
More specifically, this project will be exploring how two of the most successful
business leaders in the world are achieving success and driving high
performance organizations within a highly competitive, rapidly changing and
complex global knowledge economy.
3
Research Questions
The following research questions were developed to address the lack of
research on Renaissance Leadership and Renaissance organizations, explore
the application of this theoretical framework and help achieve a more
comprehensive understanding of how successful leaders drive high performance
companies in the midst of an ever changing and unpredictable global
environment.
1. How have Warren Buffett and Larry Ellison overcome the challenges
associated with an unpredictable and ever changing global economy in
the 21st century?
2. Do the leadership styles, skills and behaviors of Warren Buffet and Larry
Ellison reflect the ideas and assumptions of the Renaissance Leadership
theory?
3. Do Warren Buffett and Larry Ellison lead “renaissance organizations”?
Importance of Studying Successful Leaders and Renaissance Leadership
This research project has implications in a number of different management
domains including, but not limited to leadership, organizational design and
human resources management. Exploring the leadership of Warren Buffet and
Larry Ellison within the context of the Renaissance Leadership theory provides
valuable insight into the practical application of this theoretical approach,
contributes to leadership development and offers a framework for improving the
productivity and performance of any organization. Renaissance leadership is, in
4
part, an examination of how leaders can “become resilient in the face of
challenge, threat and uncertainty” (Murgatroyd, 2013). In order to achieve a
competitive advantage, leaders cannot afford to ignore the complex external
environment. The Renaissance leadership framework not only provides a
theoretical explanation for leadership skills and behaviors, but also offers
practical strategies for anticipating external threats at the individual and
organizational levels. A comprehensive analysis of the leadership practices of
Buffet and Ellison provides all business leaders with an opportunity to see
renaissance leadership in practice. Rather than fear change and uncertainty,
leaders of the future can learn to accept, anticipate and even thrive in difficult
conditions. The challenge for future leaders is “not only how they will respond to
change but also how they can actively and constantly create change” (Gill,
Levine & Pitt, 1998 p. 50).
5
Chapter Two: Literature Review
Brief Historical Overview of Theoretical Developments
For decades, members of the academic community have been fascinated
with the topic of leadership. The importance and value of great leadership
cannot be overstated. Leaders produce change, create vision, establish
strategy, communicate goals, build teams, inspire and motivate people to
accomplish extraordinary things (Kotter, 1996). Theoretical approaches to
leadership have traditionally focused on biological, psychological and sociological
explanations for successful leaders. Trait theories represented some of the
earliest attempts to explain effective leaders, arguing that specific personality
traits were deemed to be the most important. In 1841, Thomas Carlyle
developed the “Great Man Theory” and declared “the history of the world is but
the biography of great men (p. 127). For Carlyle (1841), heroes shaped history
through their intellect, leadership activities and divine inspiration. Leadership
was seen as something inherent in the individual.
Over decades, theoretical developments in this area evolved to include
personality testing, the study of individual dispositions, and, more recently,
Achievement Motivation Theory, Leader Motive Profile and House’s Theory of
Charismatic Leadership (House & Aditya, 1997 p. 412-413). Characteristics
such as empathy, perspective taking and support captured the attention of
leadership theorists and created a new focus on the importance of emotional
intelligence (Wolff et al., 2002 p. 520). Common traits identified over the years
include drive, leadership motivation, intelligence or cognitive ability, self-
6
confidence, integrity, honesty, curiosity and creativity (AMA, 2005 p. 2; Peirce &
Newstrom, 2011 p. xxiv; Kirkpatrick & Locke, 1991; Stogdill, 1974). Expanding
on the trait of integrity, Bennis (2005) has suggested that great leaders should
have ambition, competencies and a strong “moral compass.” The practical
application of trait theories for the business world has been to search for leaders
who have the best personal qualities and characteristics. According to Kouzes
and Posner (2005), leadership traits are not only useful for selecting and
developing leaders but are also important for communicating credibility to
followers.
Between the late 1940s and 1960s, researchers began to conceptualize
leadership as a behavior (Pierce & Newstrom, 2011). Focus turned away from
traits to what exactly successful leaders do and how they act. Early research in
this area conducted by Bowers and Seashore (1966) focused on behaviors such
as support, interaction facilitation, goal emphasis and work facilitation (p. 247).
Various behavioral taxonomies were developed and broad leadership styles were
identified. For example, Kurt Lewin and associates (1939) identified three
different leadership behaviors or styles including autocratic, democratic and
laissez-faire to explain a leader’s level of involvement in the decision making
process. Developments in this area have also focused on participative
leadership, where leaders are committed to involving employees, peers and
stakeholders in the decision making process (Likert, 1967). Popular theories of
today, such as strategic leadership, continue to rely on the assumptions
associated with behavioral theory (Bass, 2007). Behavioral approaches were an
7
important development in our understanding of leadership, representing the first
attempts to explain leadership as something individuals could learn.
Theoretical explanations for successful leadership were not always focused
on the individual. Social scientists, such as Karl Marx, have long recognized that
individuals are a product of the social environment. Often referred to as
“situational leadership theories,” theoretical developments in this area assume
that leaders are influenced by various situational factors (Pierce & Newstrom,
2011 p. 193). The most widely cited situational theories include: the Contingency
Theory of Leadership (Fiedler as cited in Pierce & Newstrom, 2011 p. 195); the
Path-Goal Theory of Leadership Effectiveness (House, 1971); Vroom and
Yetton’s Normative Model (1973); and, the Cognitive Resource Thoery (Fidler &
Garcia as cited in House & Aditya, 1997). Some situational leadership theories
focus on the interaction between leaders and followers while others assume that
a combination of capabilities, behaviors and social context has a more significant
influence on leadership success.
With the development of the transformational leadership theory, James
MacGregor Burns (1978) argued that the interactions between leaders and
followers could actually create meaningful change. Visionary leaders appeal to
the higher ideals and values of the followers and, in the process, effectively help
both parties achieve “higher levels of morality and motivation” (Transformational
Leadership Report, 2007 p. 4). The primary emphasis of the transformational
theory is on the follower’s long-term development or “self-actualization” through
empowerment (Dvir et al., 2002 p. 736). This explanation of successful
8
leadership shifts the emphasis away from competition, power and the bottom line
to a more socially responsible form of leadership, concerned with making a
contribution to the common good (Transformational Leadership Report, 2007 p.
10). This approach also recognizes that great leaders exhibit innovative-oriented
leadership and encourage employees to be independent and creative in their
problem solving (House & Aditya, 1997 p. 463). One of the most important
contributions of the transformation theory is its emphasis on organizational level
activities and the ability for leaders to create change.
The level 5 Leadership Theory, developed by Jim Collins (2001a) also
attempts to explain successful leadership at the organizational level. In fact,
when Collins began his research, his goal was to identify the factors that helped
average companies become outperformers or great companies (Satell, 2013).
According to Collins (2001b), Level 5 leaders possess “extreme personal humility
and professional will” and these traits act as a “catalyst” for transforming good
companies into great ones (p. 3). Challenging previous theories that suggest
charismatic leaders are needed to create a vision and inspire action, Collins
(2001a) suggests that modest, smart and ambitious leaders will be more effective
for helping companies achieve greatness. This theoretical approach assumes
that the most successful leaders have: “left an impact on their companies; have
managed their companies successfully through a crisis or some kind of
transformation; and, have created a company that will have a legacy beyond their
leadership” (Collins, 2014). What sets this theory apart from previous theories is
its focus on change and the impact a leader has on the future of an organization.
9
This brief theoretical overview demonstrates how different explanations for
successful leadership have been developed. What is also evident from this
review is how past theories have failed to take into consideration the
unprecedented challenges associated with the 21st centuries and their impact on
leadership. In recent years, there has been widespread agreement that the
“overwhelming problems facing humanity” in this century call for new leadership
models and leaders who can overcome the risks and challenges with “courage”
and “integrity” (Bray, 1994 p. 138). The Renaissance Leadership theory takes on
this challenge, suggesting that leaders and organizations can not only thrive
within the current global economy but can also create positive changes
throughout the world. Building on the theoretical developments of the past, the
Renaissance Leadership theory also recognizes that successful leaders will need
to possess specific traits, exhibit certain behaviors, have positive interactions
with employees and promote transformation in people and the organizations they
operate within. Before discussing the basic practices of Renaissance
Leadership, it is important to examine some of the most significant challenges
facing leaders within our rapidly changing world.
Challenges of Leadership in the 21st Century
To understand the skills and practices required for effective leadership in
today’s business world, it is important to examine the context for leadership in the
21st century. Leaders, like Warren Buffet and Larry Ellison, face significant
challenges within a complex and unpredictable global economy. Peter Drucker
(as cited in Leavy, 2013) explained, “CEO’s represent the link between the
10
inside, that is the organization, and the outside of society, economy, technology
markets and customers” (p. 12). Recognizing the unprecedented economic,
social, technological, and ecological changes is important because it not only
highlights the overwhelming challenges leaders face but also provides a
foundation for the type of leadership needed to successfully operate high
performance companies within the current, knowledge-based economy.
Prior to the 1960’s, companies operated within an industrial era
characterized by manufacturing processes, the division of labour, and top-down
leadership. In the 1970’s, however, a new age emerged characterized by a
“global, highly competitive, fast changed knowledge-based economy”
(Murgatroyd and Simpson, 2010 p. 15). Murgatryod and Simpson (2010) argue
that the world is currently experiencing a period of dramatic and fundamental
change that is best described as a “modern renaissance” (p. 12). Not unlike the
iconic, historical renaissances of the past, we are living through a major
paradigm shift that impacts every aspect of society and ultimately changes the
way business operates throughout the world.
Globalization
Today’s leaders operate within a global environment. With globalization “the
distinction between foreign and domestic operations became increasingly
irrelevant” (Daft & Armstrong, 2009 p. 136). Global corporations operate as if the
entire world were a single entity (Levitt, 1999 p. 249). The skills and strategies
that were once effective for “domestic leadership” of the past are no longer
enough. As Osland, Bird and Oddou (2012) explain, “global leadership is
11
extreme leadership” or “leadership under conditions of extreme complexity” (p.
107). Conducting business in a global environment means that leaders also
have to consider the barriers that can make it difficult to enter into new markets.
Global leaders confront a range of ever-changing environments that span
cultures, geographies and socio-political systems (Rosen, Digh, Singer & Philips,
2000).
Knowledge-based workforce
Leading and managing organizations across various countries, with
employees of diverse backgrounds and under the guidance of unique national
laws and cultural values represents a considerable challenge for business
leaders (AMA, 2005). Leaders not only need to be sensitive to the diversity of
employees within a global context but must also recognize that the relationship
between leaders and employees has changed in a post-industrial era.
Murgatroyd and Simpson (2010) identify the challenges associated with a new
knowledge-based economy that is dependent upon a highly educated workforce.
Motivating, inspiring and collaborating with this type of workforce represent a
significant departure from the relationship leaders had with their employees in the
industrial era, where skilled labourers focused on a specialized task in the
division of labour. A well-educated workforce requires an innovative, new
leadership approach.
Competition
Globalization has also created a fiercely competitive business environment.
Advancements in transportation and technology have made it possible to easily
12
interchange products, services, and ideas rapidly throughout the world. Initially,
globalization was characterized by developed economies integrating with less
developed economies by means of foreign direct investment, the reduction of
trade barriers as well as other economic reforms (Isac,et al., 2011). Today,
economic developments in Asia, the Middle East, and the BRIC countries of
Brazil, Russia, India and China have made “competition truly global” (Murgatroyd
& Simpson, 2010 p. 14). In some industries, like technology, competition
represents the biggest challenge facing leaders. Organizations within this
industry must “constantly innovate and improve their product offerings” (Finkle &
Scoresby, 2012 p.123). A major risk is that patents and technology can be
infringed upon, eroding the value of a company’s intellectual property (Finkle &
Scoresby, 2012).
Volatile economy
A highly volatile global economy represents another significant challenge.
The worldwide financial crisis that began in 2007 has had an unprecedented
impact on every company, particularly investment companies like Berkshire
Hathaway. After the American housing market peaked between 2005 and 2006,
the default rates and foreclosures on adjustable-rate mortgages began to
increase (QFinance, 2011). Global investment in mortgage-backed debt and
securities was essentially frozen. These actions caused the financial markets to
tighten, a recession resulted and slow economic growth was projected for the
long-term future. This crisis resulted in unprecedented turmoil and change for
banks and financial institutions all over the world.
13
Even large multinational, Fortune 500 companies had to cope with
mortgage foreclosures of epidemic proportions, significant debt burdens,
government intervention, slow economic growth and angry consumers who have
become increasingly distrustful of financial institutions. Berkshire Hathaway, for
example, suffered a 77 percent drop in earnings during the third quarter of 2008
(Smith, 2010). As of April, 2010 the International Monetary Fund estimated that
global bank loses from the financial crisis had already totaled 2.28 trillion dollars
U.S. (QFinance, 2011). With greater government involvement, more stringent
regulations and lower profit margins, every business has faced significant risk,
uncertainty and change within the past seven years. In the context of this type of
environment, where uncertainty becomes the new norm, it is difficult for decision
makers and organizational leaders to predict and plan for change.
Public mistrust
Unfortunately, another characteristic of the 21st century is public mistrust
and anger over unethical behavior in business. One area of particular concern is
excessive compensation. For decades, the media, consumers, labour unions
and various stakeholders have criticized the use of compensation packages for
high ranking executives in the United States and Canada. The widening gap
between what upper managers earn compared to the average worker has
created public outrage. In 2007, at the brink of the global financial crisis, CEO’s
on the S&P 500 list earned an average of $10.5 million annually (Landy,
November 15, 2011). In the midst of a devastating and global economic crisis
we learned that the problems with compensation were much more widespread,
14
persistent and systemic” (Bebchuk & Fried, 2006). While global banks were
losing trillions, the five highest paid CEO’s in the U.S. earned a total of 105
million dollars (Forbes, 2014b). While this amount is alarming, it is not only the
value of compensation packages that has been the target of criticism.
Compensation awarded to top executives has provided opportunities and even
incentives for CEOs and managers to engage in unethical and illegal business
practices. The downfall of energy giant, Enron, and the collapse of numerous
financial institutions during the global economic crisis, for example, demonstrates
how executives can take advantage of their positions of power to engage in
fraudulent activities to increase personal wealth.
Outrage over excessively high compensation packages also extends to the
academic community. Some professors have even suggested that “the way
CEOs are compensated is at the heart of the financial catastrophe that has wiped
out trillions of dollars in assets and millions of jobs” (Rosenbush, 2010). As top
executives continue to earn a disproportionate share of the wealth and the
integrity of business leaders is questioned, activist movements such as “Occupy
Wall Street” and various employee organized protests have emerged throughout
the world. Corporate corruption and the public response will have an impact on
every aspect of society. Even Warren Buffett, who has earned billions of dollars
through legitimate investing activities, has openly criticized the outrageous and
unjustifiable bonuses and stock options paid out to top executives. Without
appropriate solutions and a “strong system of moral behavior and integrity”
15
(Sexty, 2011 p. 41), compensation packages will continue to disrupt the economy
and threaten the legitimacy of a capitalist society.
Technology
Technological developments represent another challenge for leaders in the
“modern renaissance.” The most significant developments have been in the area
of communication, where cell phones and Internet connections have “made it
possible to disseminate new ideas more quickly and cheaply than ever before”
and to millions of people throughout the world (Meyer & Davis as cited in AMA,
2005 p. 8). Leaders face the challenging task of becoming proficient at using
technology to communicate effectively and efficiently with staff, measure
performance, retain and share knowledge and develop innovative ideas. With
technology companies estimating that eight to nine billion devices are currently
connected to the Internet throughout the world, the bulk of these devices being
computers, phones and tablets, business leaders will also have to connect with
customers in very different ways (Evans, January 2014).
Demography
A change in the demographic composition of many developed nations
represents another characteristic of the 21st century and an important challenge
for leaders. Never before in history have older adults represented such a
significant percentage of the population, with so much disposable income,
political influence and social impact. Leaders not only have to consider the aging
population when developing and promoting products and services, but also have
to explore the impact of this demographic shift on the workforce. Losing well-
16
educated, experienced workers to retirement will force many leaders to develop
innovative solutions or struggle with a loss of knowledge.
Social and environmental responsibility
The knowledge era can also be characterized by a growing concern and
respect for the social welfare of people all over the planet, the ecological world
and environment. Concerns about overpopulation and climate change have
raised questions about pollution, global warming, ecological sustainability and the
loss of biodiversity (Oreskes, 2004). There is overwhelming public support and
political pressure for successful leaders and their companies to give back to
society, to model socially and environmentally responsible behaviors.
Organizational leaders who ignore social and environmental issues are unlikely
to be successful.
17
Chapter Three: Renaissance Leadership Theory
Academics and members of the business world have been attempting to
understand and explain successful leadership for decades. Theoretical
developments in this area of study are of critical importance. A comprehensive
theoretical framework allows researchers to organize available data, synthesize
and explain competing views and establish an agenda for future research.
Unfortunately, few attempts have been made to understand leadership within the
context of the Renaissance Leadership model.
Within a highly competitive and complex global economy, where “knowledge
is the key economic resource,” and rapid change is the norm, an innovative new
leadership model has emerged (Murgatroyd & Simpson, 2010 p. 13). Developed
by a diverse team of academics and researchers called the Innovation
Expedition, the Renaissance Leadership Model suggests that leader’s who
exhibit an intense focus on learning, demonstrate a particular style of
collaborative and innovative leadership to improve organizational performance
and who genuinely care about making their communities a better place have the
capacity to harness the creative energy needed to ensure organizational
prosperity and a better quality of life for all of us (Murgatroyd & Simpson, 2010 p.
4-5).
Six Practices of Renaissance Leadership
While traditional leadership theories rarely extend beyond an explanation of
what constitutes great leadership, the Renaissance model was intended to “spark
improvements in individual and organizational performance” (Murgatroyd &
18
Simpson, 2010 p. 108). Examining successful organizations and individuals’ who
personify the modern day renaissance leader, including Warren Buffett and Larry
Ellison, demonstrates the value of such an innovative model. According to
Murgatroyd and Simpson (2010), six key characteristics are needed to “bypass
the current messy economic market conditions,” enhance competitiveness,
improve productivity and leverage innovation. The following section will examine
these conditions for Renaissance leadership.
Practice personal mastery
According to Murgatroyd and Simpson (2010), the first condition for
effective, renaissance leadership is personal mastery. Leaders who exemplify
personal mastery have high integrity and self-awareness, push themselves to do
better and develop their capacity to innovate and inspire others (Murgatroyd and
Simpson, 2010 p. 38). These leaders typically have “well-developed listening
skills,” a “positive regard for others,” and “make work important and enjoyable
while maintaining high standards for performance” (Murgatroyd & Simpson, 2010
p. 98). While Renaissance Leaders are always striving to improve on their
leadership abilities, Murgatroyd (April 6, 2013) points out that “these individuals
do not use their organizations as a way to discover themselves.” These leaders
are self-confident but recognize their own strengths and weakness. Renaissance
leaders understand how their actions make a valuable contribution to their
organization and to the world. Renaissance leaders are acutely aware of the fact
that leadership is not an individual activity. As a result, “seek help from others to
19
maintain personal mastery” as well as organizational success (Murgatroyd &
Simpson, 2010 p. 48).
Applying a “Glocal” mind set
Another condition for renaissance leadership, according to Murgatroyd and
Simpson (2010) is the ability of leaders to understand the global context within
which their organization operates and to take the most appropriate local actions
(p. 49). Renaissance leaders have a “keen sense of history” and a
comprehensive “understanding of the changes taking place on a global scale”
(Athabasca University, 2013, Critical Issue 6: Week 7). Story and Barbuto Jr.
(2011) suggest “leaders with a global mindset, possessing high levels of cultural
intelligence and high levels of global business orientation are optimally equipped
to lead both the business and people in global settings” (p. 380). Having a
“glocal” mind set involves “scanning the world for competitors, potential partners
and new ideas” and being innovative as an organization and community
(Murgatroyd & Simpson, 2010 p. 51).
Accelerating cross-boundary learning
Murgatroyd and Simpson (2010) suggest that renaissance leaders also have
a keen interest in learning about many areas of life, guiding others to learn new
things, encouraging creativity and nurturing innovation to improve performance
(Athabasca University, 2013, Critical Issue 6: Week 7). They recognize the
importance of knowledgeable employees and their connection to innovation and
performance. Cross-boundary learning extends beyond providing opportunities
20
for continued education to include the successful application or implementation of
that learning through innovation (Athabasca University, 2013, Critical Issue 6:
Week 7). Renaissance leaders actually create a learning culture within the
workplace in order to achieve a competitive advantage.
Thinking back from the future
For a renaissance leader, part of innovation is exploring possible futures,
looking for risks and opportunities, and planning ways to create that future in the
context of challenging global conditions (Murgatroyd & Simpson, 2010 p. 60).
For some leaders, this will involve the use of “scenario planning” and for others, it
will involve more “strategic foresight” to see a future and work backward to find
the most successful path (Murgatroyd & Simpson, 2010 p. 66). One of the main
distinguishing features of the Renaissance Leadership model, this idea of
“rethinking the future” means that leaders do not simply face uncertainty and
adapt, but actually imagine and create their own future.
Leading systemic change
Renaissance leaders recognize the need for constant change and
adaptability within the complex, global environment. These leaders manage
change “through collaboration and teamwork” both within the organizations and
the communities within which they operate. Teamwork and strategic alliances
are critical to success for Renaissance leaders and the organizations they guide.
Murgatroyd and Simpson (2010) suggest collaboration is the “DNA of high
performance organizations” (p. 75). They provide opportunities for learning,
innovation and ultimately greater productivity.
21
Driving performance with a passion
The renaissance model is also about results; working to improve individual
and organizational performance and making positive contributions to the
community (Murgatroyd & Simpson, 2010 p. 76). While interest in leadership
theories focusing specifically on the individual traits of leaders has waned since
the 1960s, academics and business leaders continue to link the personality of
leaders to organizational effectiveness. In fact, Hogan & Benson (2009) argue
that calm, confident, creative and knowledgeable individuals represent the most
competent leaders in this challenging time. Modern Renaissance leaders “set
the tone” for organizational success by demonstrating their passion for making
the world a better place, learning, innovation and working collaboratively with
others” (Murgatroyd & Simpson, 2010 p. 77). The personality and behaviours of
remarkable leaders continues to have an important role in explaining success
and preparing future leaders.
Renaissance Organizations
If the 21st century represents a complex time of transition, a period of modern
Renaissance characterized by “deep, lasting meaningful change” (Murgatroyd,
2012), then both leaders and organizations will need to adapt and innovate in
order to be successful. It will not be enough to have great leadership,
organizations will need to anticipate and create change in order to thrive in this
complex global environment. Murgatroyd and Simpson (2010) argue that
renaissance organizations are knowledge based organizations. These
companies are committed to employee satisfaction because they recognize the
22
success of their companies is dependent on the knowledge and abilities of their
employees. Renaissance organizations also effectively manage different forms
of capital including; intellectual, structural, agility, collaborative, inspirational and
performance capital (Murgatroyd & Simpson, 2010 p. 21). Renaissance
organizations understand that the current century represents a period of
significant changes, however, they “are able to leverage these changes to their
advantage (Murgatroyd & Simpson, 2010 p.22). Finally, Renaissance
organizations are leaders in their field, helping to shape our world (Murgatroyd &
Simpson, 2010 p. 101).
23
Chapter Four: Personal Profiles
While progress in the 21st century has been “a thousand times greater than
the 20th century and created many challenges,” there is also opportunity for new,
innovative leaders to emerge (Murgatroyd, 2012). As Murgatroyd (2012)
explains, “this is a time when, with inspired leadership and courageous action,
individuals, organizations and communities can show a way to the future.” Do
Warren Buffett and Larry Ellison represent such leaders? Are they guiding their
organizations, other business leaders and communities toward a new future? A
brief examination of their leadership and the companies they oversee
demonstrates their resilience and global impact as well as why these leaders
have been selected for this study.
Warren Buffett
Described as an investment “prophet,” “the world’s most successful investor”
and a “modern American hero” (Loomis, 2012, p. 93; Lowe, 2007 p. 2), business
leaders around the globe have been following and attempting to replicate Warren
Buffet’s investment strategies for decades. Warren Buffet was born in Omaha,
Nebraska in 1930 (Smith, 2010). The son of a Republican Congressman and
stockbroker, Buffett began purchasing stocks at the age of 11 (Rigby, 2011). He
attended prestigious universities and made his living investing in the stock
market and in “well-managed but unfashionable businesses” (Rigby, 2011 p. 25).
In 1962, Buffet purchased a troubled Massachusetts-based textile company,
Berkshire Hathaway, and began redirecting resources into other areas, including
insurance. Some of Berkshire’s major investments have included the
24
Washington Post, ABC, AIG Insurance, GEICO, Wells Fargo, General Electric,
Coca-Cola, Gillette, Benjamin Moore, BSNF Railways, Heinz, and Goldman
Sachs, to name just a few (Forbes, 2014a; Hagstrom, 2005; Schroeder, 2009;
Loomis, 2012). In the last 48 years, Berkshire’s book value has grown at an
average annual rate of 23 percent, from 19 dollars a share to 172,210 dollars a
share (Buffett and Clark, 2002, Yahoo, 2013). In January 2014, Berkshire
Hathaway had a market value of 252.8 billion dollars (Forbes, 2014a).
As CEO of Berkshire Hathaway, Buffett manages over 288,500 employees
around the globe and has “over 88 CEOs of different companies reporting
directly to him” (Buffet & Clark, 2009 p. xiii; Forbes, 2014a). “In modern
business, no man has managed a more highly talented group of managers, in so
many diverse businesses, and delivered such spectacular results” the way
Warren Buffett has (Buffet & Clarke, 2009 p. xiii). Buffett has been described as
a “humble man” who recognizes the value of surrounding himself with smart,
talented and enthusiastic people (Loomis, 2012). It has been reported that
Buffett “carefully selects all of his partners” (Miles, 2004 p. 9).
Buffett not only recognizes the value of surrounding himself with
knowledgeable employees, but has also proven to be an excellent
communicator. In 1970, Buffett began writing his now-famous letters to
shareholders, which describe Berkshire operations as well as Buffett’s business
philosophies and views on the economy (Rigby, 2011). Over 30,000 people
attend Berkshire’s AGM just to hear the legendary founder’s speech. In recent
years, Buffett has garnered global attention for his philanthropy, agreeing to
25
gradually donate 85 percent of his Berkshire stock to five foundations (Loomis,
2012). Just when everyone thinks they understand Mr. Buffett and his
investment decisions, he “does things no one would have predicted, and does
them well,” consistently “looking for new approaches” (Hagstrom, 2005 p.xxi).
While countless books have been written on Buffett’s investment activities, few
attempts have been made to explain his leadership style using leadership theory.
Larry Ellison
If Warren Buffett represents the “humble” leader who lives a modest life in
small-town America, Larry Ellison appears to be the exact opposite. An
extremely “intense” and “driven” man with a high energy level, Ellison forged his
own path to success and appears to have accumulated the billionaire status in a
very different way than Buffett. Born in New York City in 1944, Larry Ellison was
an independent and rebellious boy who often clashed with those in authority
(Southwick, 2003). In 1966, Ellison quit university at the age of 22 to pursue an
interest in computer programming and design (Wilson, 2002 p. 33). During the
1970s, Ellison briefly worked for Amdahl Corporation and Ampex Corporation
before creating his own company, Software Development Laboratories
(Symonds, 2004). Inspired by an article written by IBM researcher Ted Codd,
Ellison created a relational database system he named “Oracle” (Wilson, 1998 p.
53). A database for business and government information management, the
product was the first of its kind and an instant success. In 1982 the company
was officially renamed Oracle Systems Corporation after its flagship product.
26
Only seven years after developing Oracle, the company was earning billions
of dollars. Ellison set out to increase Oracle’s market share through a series of
strategic acquisitions (Academy of Achievement, 2010). Beginning in late 2004
with its acquisition of PeopleSoft, Oracle initiated an acquisition campaign that
has brought over forty companies into the Oracle fold (Jannise, August 3, 2010).
Even after spending over $45 billion on acquisitions in the last ten years, Oracle
continues to be profitable with a net income of over $10 billion in 2013 (Oracle
Corporation Financials, 2013). Oracle is now “the world’s largest business
software company” (Academy of Achievement, 2010). As of January, 2014,
Oracle had a market value of over 172 billion dollars (Forbes, 2014a).
In his role as CEO of Oracle, Ellison manages 122,458 employees located
throughout the world (Oracle Corporation Financials, 2013). Like Buffett, Ellison
has recognized the importance of selecting the right people to work within his
organization, arguing that as CEO his primary function is to “make Oracle
successful, to make it a good and interesting place to work because we don’t
want people to leave” (Academy of Achievement, May 22, 1997). Unlike Buffett,
however, one of Ellison’s primary goals is to defeat the competition. “Modeling
himself after the samurai warrior,” Ellison reportedly “attacks the competition and
pushes employees to the limit” (Buchanan, June 2013 p. 70). Ellison also differs
from Buffett in how he has accumulated his wealth. While Buffett’s annual salary
has remained stable in the last thirty years at $100,000 U.S., Ellison’s annual
salary for 2013 was $77 million (CNN, November, 1, 2013). Ellison earned over
$70 million in Performance-Adjusted Compensation alone, making him one of the
27
highest paid CEO’s in the world (Ferracone, December, 2013). Ellison has
accumulated incredible wealth, making the Forbes 500 list as the third richest
man in the United States and the fifth richest man in the world with a net worth of
over 41 billion dollars (Forbes, 2014a). A self-motivated and determined leader,
Ellison has been described as “an arrogant promoter” and a “visionary.” But can
we describe Larry Ellison as a modern Renaissance leader?
The fact that Buffett and Ellison have achieved these accomplishments,
becoming hugely successful business leaders in the midst of unprecedented
global challenges, might best be explained with the use of the concepts and
principals of the Renaissance Leadership Model. If Berkshire Hathaway and
Oracle represent Renaissance organizations guided by Renaissance leaders,
they will provide important examples for all business leaders.
28
Chapter Five: Methodology
Research Design and Data Collection
Using qualitative methodology, the research design of this project involved a
content analysis of various secondary data sources. Content analysis involves “a
detailed and systematic examination of the contents of a particular body of
material for the purpose of identifying patterns, themes or biases” (Leedy &
Ormrod, 2005 p. 142). This methodology is particularly useful for researching
individuals that are inaccessible. Ethics approval was not required for this
project. The secondary data sources used included a sample of academic
journal articles, biographical books, newspaper and magazine articles, Internet
articles and videos, documented interviews with former employees, re-printed
letters to stakeholders and company reports. Various secondary sources were
used to explore the leadership styles of Warren Buffet and Larry Ellison as well
as the characteristics of the primary companies they oversee, Berkshire
Hathaway and Oracle. Data was accessed through the Athabasca University
Periodical Database, the University of Manitoba Libraries Database, book stores
and Internet searches on ERIC and Google Scholar.
Data Analysis
The data was analyzed to search for themes. The characteristics and
qualities examined reflected a search for concepts and themes related to the six
practices of Renaissance Leadership developed by Murgatroyd and Simpson
(2010). An analysis of available data on the primary organizations these leaders
guide, Berkshire Hathaway and Oracle, was based on a search for the key
29
elements of a renaissance organization, as identified by Murgatroyd and
Simpson (2010) and discussed in the literature review above. While analyzing
the data, memos, notes and diagrams were used to obtain visual representations
of concepts and whether or not they could be explained with the Renaissance
Leadership theory. The memos and diagrams took several forms, such as code
notes, theoretical notes, logic diagrams and flow charts. These procedures all
contributed to a more comprehensive understanding of the topic under
investigation (Lofland & Lofland, 1995).
There are limitations associated with every methodology. Acknowledging
those limitations provides an opportunity to address them and minimize their
impact on the results. One weakness of the case study method is fact that the
secondary data being used may be incomplete or missing important information.
“Building an analysis on a single clue is a common mistake” (Schultz as cited in
Kovary, 2011 p.764). Certain accomplishments or failures may be overvalued.
Researchers focus on a few, recorded events to explain an individual’s behavior,
in general. This is a common criticism, particularly when using biographical data.
To address this limitation, Kovary (2011) argues it is important to draw on an
“abundance of different sources including: letters; videos; interviews;
biographies, first-person documents; and, third person reports” (p. 766). As
such, a variety of sources were used for this project.
A “negative case analysis” was also conducted to actively search for “cases
that contradict the research question” (Leedy & Ormrod, 2005 p. 100). According
to Schultz (as cited in Kovary, 2011), “data collected from different sources could
30
contain several contradictions” (p. 762). To explain these contradictions, Elms
(2007) recommends relying more heavily on primary data, where individual’s
have an opportunity to explain their own behavior and motivation. Identifying
themes and negative case examples helped answer the three research
questions, provided insight into the relevance of Renaissance Leadership theory
as well as identified practical strategies for leadership development and
organizational success.
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Chapter Six: Results
The purpose of this project was to explore the leadership practices of Warren
Buffett and Larry Ellison to determine how these leaders are adapting to and
thriving under the most challenging conditions of our century. This project was
also intended to address the lack of research on the Renaissance Leadership
theory by examining the leadership of Warren Buffett and Larry Ellison within the
context of this new explanatory framework. This chapter is organized to present
a summary of how these leaders are meeting the key challenges of the 21st
century. After an examination of whether or not the leadership styles and
behaviors of Buffett and Ellison exemplify the six practices of Renaissance
Leadership, this chapter will conclude with a brief discussion of Berkshire
Hathaway and Oracle to determine if these companies represent Renaissance
Organizations.
Thriving Under Challenges of the 21st Century
Since the global debt crisis of 2007, the American Bankruptcy Institute
indicates that over 240,000 businesses in the United States have filed for
bankruptcy (American Bankruptcy Institute, 2014). The situation is even more
disturbing in some European countries. In Italy, for example, reports indicate that
over 1,000 businesses in that country fall into bankruptcy every day (Evans-
Pritchard, March 13, 2013). In the midst of a highly competitive global economy,
where organizations are clearly fighting for their survival, it makes the
accomplishments of Warren Buffett and Larry Ellison all the more impressive.
These corporate superstars are clearly operating high performance organizations
32
that are capable of withstanding and thriving in conditions that have decimated
other organizations. What is less clear is how these leaders have anticipated
and adapted to the significant challenges facing today’s leaders. The following
section will describe how Buffett and Ellison have responded to the dominant
patterns shaping this period of modern renaissance.
Warren Buffet
Taking an optimistic approach to the challenges currently confronting
mankind, Warren Buffett believes uncertainty and change is actually the norm
and that “all time is uncertain” (Buffett, March 1, 2013 p. 5). He argues that “in
the 20th century the United States endured two world wars and other traumatic
and expensive military conflicts; the Depression; a dozen or so recessions and
financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced
president yet the Dow rose from 66 to 11,497” (Buffett, October, 16 2008). In his
most recent letter to shareholders, Buffett (March 1, 2013) suggests: “of course
the immediate future is uncertain; America has faced the unknown since 1776.
Opportunities abound in America” (p. 5). In his own unique way, Buffett
highlights that there will always be periods of uncertainty and there will always be
opportunity. It is with this open-minded approach, a characteristic of
Renaissance leaders, that Buffett has faced modern day challenges.
Globalization
Warren Buffett’s behaviour, his investment decisions as well as the
companies purchased through Berkshire Hathaway clearly demonstrate his
understanding of globalization, it’s importance in the world of business as well as
33
the opportunities that can be found within the “global playing field” (Murgatroyd &
Simpson, 2010 p. 16). His personal philosophy toward globalization is extremely
positive. He believes that businesses around the globe will prosper, have greater
advantages entering into new countries and that “as world trade expands it will
mean a better life for people all around the world (Buffett as cited in Andrews,
2012 p. 103). Buffett is acutely aware of global business developments, always
watching the news or reading to learn about the world around him. Buffett
estimates that he spends 80 percent of his working day reading (Parrish,
September 6, 2013).
Buffett’s knowledge of global business developments has helped him invest
in and purchase companies with a global presence including Coca-Cola and
Gillett. International sales of Coca-Cola products accounts for 69 percent of the
company’s net sales and 80 percent of its profits and Gillett has two-thirds of its
earnings coming from abroad (Loomis, 2012 p. 137). These companies have a
significant global presence and employ thousands world-wide. In more recent
years, Buffett has shown an interest in ownership of foreign companies. Buffett
bought his first non-American company in 2007, an Israeli manufacturer of metal
cutting tools (Melby, March 7, 2012). In 2008, Buffett invested in Petro-China
Company Limited and BYD, a manufacturer of hybrid automobiles and
rechargeable batteries (Lowe, 2007 p. 155). However, interest in global
businesses has also brought new challenges for Buffett. A lack of political
transparency in India, for example, is reportedly the reason behind Warren
Buffett’s recent sale of an insurance business based in this country (Business
34
Today, July 18, 2013; The Economic Times, July 24, 2013). Despite the
challenges associated with globalization, Buffett’s desire to learn about, become
involved in and create change within the global economy are all behaviours
characteristic of a Renaissance leader.
Knowledge-based workforce
Warren Buffett would be the first to admit he is completely dependent on a
highly educated and experienced workforce. Buffett recognizes that in order to
have a competitive advantage he has to invest in and purchase “outstanding
companies managed by smart people” (Buffett as cited in Hagstrom, 2005 p.
160). As Buffett (Feburary, 2003) explains, “to be a winner, work with winners.”
Buffett attracts and retains knowledgeable managers by “rewarding talent” and
allowing managers to “demonstrate their talents” by not “getting in their way”
(Andrews, 2012 p. 93; Schroeder, 2009 p. 472). Managers at Berkshire describe
Buffett as “hands-off but accessible” (Linder, 2012 p. 43). Buffett is able to
“harness the creative energy” of his employees to achieve outstanding
organizational performance in a manner consistent with Renaissance leadership
(Murgatroyd & Simpson, 2010 p. 30).
Competition
Competition in the current global economy is fierce but Warren Buffett
doesn’t seem to mind. He utilizes a number of different strategies to ensure his
company, Berkshire Hathaway, maintains its competitive advantage. His first
strategy is to invest in and purchase companies that have “some sort of
competitive advantage” within their respective industries (Schroeder, 2009 p.
35
288). Buffett only buys into companies with a strong brand, “customer goodwill”
and those that are difficult to replicate (Andrews, 2012 p. 54). Another strategy
Buffett relies on is the purchase of companies that are predictable and low risk.
He describes these companies as “immortal businesses” (Schroeder, 2009 p.
300). See’s Candy, for example, is described as a low risk venture because
Buffett believes there will always be a demand for candy. Another strategy
Buffett has used to outperform the competition has been differentiation through
the innovative creation of the holding company, Berkshire Hathaway. This
company would be virtually impossible to replicate, with diversified investments
and ownership in countless businesses. Finally, Buffett’s innovative and ever-
changing investment strategies have given him an overwhelming advantage in
the cut-throat financial industry. Typical of a Renaissance leader, Buffett is open
to change, highly aware of the world around him, adapts quickly and is not at all
deterred by the new competitive threats that have emerged.
Volatile Economy
Operating within the financial industry, a volatile economy is arguably the
most significant challenge for Warren Buffett. Surprisingly, however, this
investment superstar views an unstable economy as another opportunity. As
Buffett explains, “cash combined with courage in a crisis is priceless” (Buffett as
cited in Schroeder, 2009 p. 592). For Buffett, the financial crisis that hit in 2007
created “opportunities to do things that didn’t exist a year or two earlier (Buffett
as cited in Andrews, 2012 p. 107). Buffett actually revelled in the hard times that
36
terrified most, something that certainly qualifies him for effective Renaissance
leadership.
While he is keenly aware of the problems associated with an unstable
economy, he has developed strategies to mitigate risk. One such strategy is his
“margin of safety” style of investing, where stocks or companies are purchased
well below the underlying business value (Hagstrom, 2005 p. 25). This strategy
protects Buffett from the downside of price risk so that when the financial crisis
hit, Buffett’s company had relatively fewer losses and was able to recover more
quickly. The financial crisis also provided Buffett with an opportunity to lead the
American Government and businesses around the world toward a new future
through his advice and ethical business practices. For example, Buffett was one
of the first business leaders to call stock options an expense, demand more
accurate business accounting and lobby against large compensation packages
for executives. According to Murgatroyd and Simpson (2010), this type of
problem solving and his ability to be a role model to other leaders is
characteristic of Renaissance leadership (p. 31).
Public mistrust
In the midst of a volatile global economy, where enormous compensation
packages and unprecedented financial losses have contributed to public outrage
and mistrust, Warren Buffett has stood out as an example of how business
should be conducted in an ethical and responsible manner. He has served as a
teacher and role model to his employees, shareholders, business leaders and
consumers around the world. His words and actions have helped ease public
37
fear and mistrust and set new standards for business regulation and ethics. In a
2010 memo to Berkshire Hathaway managers, Buffett demonstrates how he sets
the tone for ethical conduct within his company:
“We can afford to lose money- even a lot of money. But we can’t afford to lose reputation-even a shred of reputation. We must continue to measure every act against not only what is legal but also what we would be happy to have written about on the front page of a national newspaper by an unfriendly but intelligent reporter” (Buffett as cited in Linder, 2012 p. xviii).
In requiring his employees to be ethical and transparent, his company has stood
out like a shining star in the wake of the Enron scandal, Freddie Mac meltdown
and the embarrassing Goldman Sachs compensation packages. His words of
wisdom have made it into business schools across the globe, where students
learn about ethics and the importance of the “front page” test.
Warren Buffett’s honesty and transparent reporting to Berkshire Hathaway
shareholders represents another effort to garner public trust. Berkshire
Hathaway reports highlight losses and problems while at the same time
educating shareholders on investment decisions. In treating shareholders like
business owners, Buffett had a “vision rarely shared by other companies”
(Schroeder, 2009 p. 120). Attention to customer loyalty has also helped diminish
public mistrust and create stability. Buffett has often said that “it takes a lifetime
to build a reputation and only five minutes to destroy it” because he recognizes
the value of his customers, his employees and public perception (Andrews, 2012;
Miles, 2004 p. 198). Long-term success and the creation of a high performance
company require public trust. Consistent with the characteristics of a
Renaissance leader, Buffett has asked investors, businesses and governments
38
to “rethink their approaches and their understanding of how the world now
functions” to create a more stable and ethical business world (Murgatroyd &
Simpson, 2010 p. 27).
Technology
For the most part, Warren Buffett has conceded that major technological
developments in the 21st century, more specifically in the area of computer
technology, have been outside his “circle of competence.” According to Buffett
(as cited in Linder, 2012), “risk comes from not knowing what you’re doing” (p.
36). In his letter to investment partners in 1967, Buffett explains “we will not go
into business where technology, which is over my head, is crucial to the
investment decision” (Schroeder, 2009 p. 258). While Buffett was widely
criticized for failing to invest in computer technology prior to the technology crash
of 2000, he relied on his knowledge of historical developments in the auto
industry and how trends have shown new and emerging technologies rarely
make good long-term investments to defend his position. Buffett readily admits
that he will never master the latest technology but addresses this limitation by
surrounding himself with smart people. Buffett (as cited in Bhan, April 20, 2011)
explains, “I don’t have to be smart at everything; I didn’t deliver my wife’s baby. I
believe in using people who are smarter than I am.” Recognizing one’s strengths
and weaknesses as well as having a solid understanding of historical
developments are both characteristics required for Renaissance leadership.
39
Demography
Not surprisingly, Warren Buffett has found opportunity in the demographic
changes confronting North America in the 21st century. While the older
population is expected to double in size between 2005 and 2050 (Murgatroyd,
2012 p. 24), Buffett sees the benefits of an aging population. For Buffett, older
adults represent a valuable resource, bringing with them years of knowledge and
experience. One only has to look at the average age of the 12 board members
at Berkshire Hathaway to see that Buffett truly believes in the value of older
employees The average age of Berkshire board members is 70 and six board
members are over the age of 80 (Linder, 2012 p. xxii). Buffett has been known to
convince past CEO’s to come out of retirement to lead Berkshire Hathaway
companies and clearly recognizes the importance of retaining experienced talent.
One employee, Rose Blumkin, continued to manage Buffett’s Nebraska Furniture
Mart until she retired at the age of 104 because she was passionate, motivated
to work and was a great saleswoman (Hagstrom, 2005 p. 43). “Buffett simply
does not regard age as having any bearing on how able a manager is” (Loomis,
2012 p. 72). At the same time, Buffett highlights “the importance of bringing in
young people with fresh ideas” to stay ahead of the competition (Schroeder,
2009 p. 524). An aging population can be another opportunity for Renaissance
leaders to seize in a “global war for talent” (Murgatroyd & Simpson, 2010 p. 7).
Social and environmental responsibility
Long before the term “social responsibility” became a catch phrase in the
business world, Warren Buffett was trying to make positive investment decisions
40
that did not profit from harm to people or the environment. In his 1967 letter to
partners, Buffett (as cited in Schroeder, 2009) wrote: “we will not seek out activity
in investment operations, even if offering splendid profit expectations, where
major human problems appear to have a substantial chance of happening” (p.
258). In 1968, Buffett made it his personal mission to sponsor a Jewish man for
membership in the Omaha Club as a way to challenge traditional, racist rules of
the time (Schroeder, 2009 p. 269). He developed an innovative charitable
program where Berkshire Hathaway employees could decide which charity they
would like to support and the company would invest two dollars a share on their
behalf. Over $197 million was donated to various charities through this program
(Schroeder, 2009). In 2012, Buffett garnered world-wide attention when he
donated the bulk of his wealth, two billion dollars in Berkshire Hathaway shares,
to the Bill and Melinda Gates Foundation for global health and education
initiatives (Alden, July 8, 2013).
Buffett has demonstrated he is equally concerned with environmental issues.
In a television interview, Buffett stated, “if you’re really seriously hurting the
environment to create 20,000 jobs, you can have those 20,000 people start
building me a tomb” (Buffett, September 22, 2010). His decision to make a
difference in the world stems from his business integrity and his concept of “claim
cheques.” Buffett believes that his wealth is a “claim cheque that must be turned
in at some point or given back to society in a way that has the most impact to
change the lives of people all over the world” (Buffett, 2009). Planning for the
41
future as well as the desire to help make the world a better place are both goals
Renaissance leaders actively pursue (Murgatroyd & Simpson, 2010 p. 31).
Larry Ellison
In his pursuit of success and wealth, Larry Ellison has also demonstrated an
amazing ability to thrive under the challenging conditions of the 21st century. The
findings of this study reveal that Ellison and Buffett have both helped their
companies achieve a competitive advantage in their respective industry but in
very different ways. Like Buffett, Ellison has been innovative in his approach to
managing and creating change.
Globalization
Larry Ellison has both benefitted from and actively created the global world
we are living in today. With the expansion of his company, Oracle, into new
markets Ellison became an eager participant in the global business world.
Expanding overseas in the late 1980s, Oracle has employees in over 25
countries (Wilson, 2002 p. 190). With the development of his E-Business
software, however, Ellison began to actually influence and shape the way
businesses operate on a global scale. Oracle’s E-Business software uses the
Internet to centralize a business’s data from across the globe (Symonds, 2004 p.
42). Businesses that were once fragmented, with different IT, marketing,
financial and sales departments in different countries were standardized and
unified with a single global database. More recent product developments at
Oracle, including the private database Cloud, enable customers to support and
store very large files and filing systems with easy access to this information from
42
almost anywhere in the world (Oracle, 2014). Ellison’s vision and the creation of
these innovative products have helped create a truly global business world.
According to Murgatroyd and Simpson (2010), Ellison’s global activities are
consistent with Renaissance leaders who have vision and create a new world.
Knowledge-based workforce
Like Warren Buffett, Larry Ellison surrounds himself with the “best people.”
Ellison hires “brilliant engineers” and “programming wizards” to bring his
technological ideas to life (Wilson, 2002 p. 47). To recruit this select and highly
knowledgeable workforce, Ellison hand picks students from Cal Tech, MIT and
Stanford where “the very best experienced programming talent” are trained
(Symonds, 2004 p. 69). To attract the best, Ellison believes in rewarding
employees well with bonuses and stock options. In fact, virtually all of the early
employees at Oracle became millionaires because of these types of
compensation packages. For Ellison, “brains conquer all” (Wilson, 2002 p. 178).
His competitive advantage within the technology industry is having the brightest
people produce the most innovative products in a timely manner. Like a true
Renaissance leader, Ellison recognizes that “information and knowledge” are the
“most important currency in the world” (Murgatroyd & Simpson, 2010 p. 29).
Competition
Few would argue that technology represents one of the most competitive
industries on the planet in the 21st century. Within this type of cut-throat
environment, “a failure to market first means a loss of billions (Wilson, 2002 p.
68). Ellison is both a product of and contributor to this intensely competitive
43
industry. Obsessed with “killing the competition,” Ellison has an
“uncompromising commitment to winning” at all cost (Symonds, 2004 p. 307). In
fact, Ellison has adopted the philosophy of infamous warlord, Genghis Khan,
believing that “it is not sufficient that I success; everyone else must fail”
(Southwick, 2003). Oracle’s CEO uses a variety of strategies to overthrow the
competition and guide his high performance company. “Ellison constantly
monitors every shift in his competitors business tactics or product strategies,
ensuring that Oracle could rapidly exploit any emerging weakness or block off
any new threat” (Symonds, 2004 p. 285). His most common approach is to be a
“first mover” in the technology industry. With his development of the relational
database, E-Business software and Oracle Cloud, Ellison ensured that he beat
the competition to market and earned a greater market share.
Ellison also relies heavily on product differentiation as a competitive strategy
by creating truly innovative products and services that have transformed the way
businesses operate throughout the world. Unfortunately, some of these
strategies Ellison has used have been questionable, unethical and, at times,
illegal. For example, Ellison once hired a private investigator to root throughout
Microsoft’s garbage to uncover damaging secrets (Yarow, May 28, 2011).
Ellison’s company knowingly shipped blank disks to meet product deadlines and
was ordered to pay the American Government a $200 million fine in 2011 for
overcharging the US Government (First Biz, October 7, 2011). This type of
unethical behaviour is not characteristic of a Renaissance leader who exhibits
high levels of integrity (Murgatroyd & Simpson, 2010 p. 31).
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Volatile economy
Larry Ellison has faced the challenges brought about by an unstable and
unpredictable global economy by creating innovative products that help address
a gap or a need in the business world. For example, the relational database
products Oracle developed created a way for businesses to store and retrieve
valuable information. Ellison provided a product that was not available at that
time and met a need. His vision and the creation of innovative technology
allowed him to weather difficult economic conditions. Following the terrorist
attacks on the United States in 2011, Ellison’s company was able to assist
governments in upgrading information technology (IT) systems for easier access
to information across law enforcement agencies (Symonds, 2004). While other
companies struggled during difficult economic conditions, Ellison created and
met the IT needs of governments and business around the world. This type of
vision and innovation are key elements of Renaissance leadership. Sadly,
Ellison also contributed to the economic instability in the United States by
focusing on growth and profit at any cost.
Public mistrust
In his early years as leader of Oracle Corporation, Ellison clearly contributed
to and helped create public mistrust for businesses and technology companies in
particularly. Former employees, customers, business leaders and media have all
claimed that Ellison was “willing to say or do anything to get business” (Wilson,
2002 p. 77). His business activities and publically made comments have all
contributed to public mistrust in what they perceive to be as selfish, overpaid
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CEO’s. Ellison has been accused of: making exaggerated product claims;
“peddling vapour-ware” by promoting products yet to be developed; firing
employees just weeks before their stock options came due; utilizing “creative
marketing” designed to confuse customers; and, a failure to provide adequate
service for Oracle customers (Southwick, 2003; Wilson, 2002). Ellison has had
to pay fines to the government for overcharging, has paid $22 million in damages
for alleged stock-trading abuses and has been at the centre of one legal
controversy after another since he created Oracle (Ferrell et al., 2013 p. 64).
Combine these activities with outrageous spending habits and almost
incompressible compensation earnings and it’s easy to see why Ellison continues
to work against a negative reputation.
Some industry analysts and academics have suggested that Ellison is simply
a product of highly competitive and unethical technology industry (Mendelson,
November 10, 2010). Other leaders in this field, including Steve Jobs of Apple
and Bill Gates of Microsoft, have also been criticized for running their
organizations with an iron fist and “attempting to snuf out the competition” by any
means (Pfeffer, 2010). While Ellison has attempted to “re-invent himself” in
recent years, focusing more attention on customer service and the promotion of
superior products, his bad reputation, legal difficulties and negative media reports
have left a lasting legacy of public mistrust. Since Renaissance leadership
demands role models of high integrity who do not “descend into self-absorption,”
Larry Ellison clearly falls short in this area (Murgatroyd, April 6, 2013).
46
Technology
While most business leaders struggle to keep up with the latest
technologies, it is in this area that Ellison excels and most closely resembles a
Renaissance leader. Through his innovative vision of future technological
developments Ellison acts as an architect, shaping the technical world for the
rest of us to eagerly follow. His products have inspired companies throughout
the world to completely restructure their businesses practices in order to become
more technologically advanced, more efficient and readily adaptable to change.
There is little doubt that Ellison’s contribution to technology is “shaping the future”
(Symonds, 2004 p. 148). He understands what technology can do and its
implications before anyone else. Former partner and Oracle employee, Ed Oats
has said Ellison “understands what technology means for the product
development, the company and the world” (Wilson, 2002 p. 45). A visionary able
to create opportunity and a new future in technology, Ellison certainly resembles
a Renaissance leader in this area.
Demography
For Ellison, the demographic challenges facing the 21st century pose
problems and opportunities. Recognizing that health care needs will change in
the future as the population ages, Ellison has donated generously to research on
ageing related diseases (Symonds, 2004 p. 385). At the same time, Ellison
values the knowledge and experience of older adults. In fact, world-renown boat
designer, Jon Bannenberg, was a man in his late 70s whom Ellison considered to
be a brilliant collaborator and role model (Symonds, 2004 p. 375). Like Buffett,
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Ellison has also focused attention on younger people and the role they play in
our society, donating computers to different schools throughout the United
States. Characteristic of a Renaissance leader, Ellison realizes that the age of
an individual is less significant than the knowledge and experience they have to
offer.
Social and environmental responsibility
Ellison has been widely criticized for donating relatively little money, less than
one percent of his total wealth, to charity (Smith, 2010 p. 50). In defence of his
charitable donations, Ellison has argued that he does not wish to donate money
just to appear altruistic (Wilson, 2002). In recent years, Ellison has taken more of
an interest in social and environmental issues. He has funded an Israeli drug
company that conducts trails on cancer drugs, funded biotechnology as well as
medical research (Symonds, 2004 p. 384). In 2013, Ellison even purchased the
Hawaiian Island, Lanai, which he hopes to transform into a “laboratory of
sustainability,” through desalinated seawater irrigating organic farms and a solar
energy grid used to recharge the batteries of electric cars (Honolulu, August,
2013). All of these activities and investments are consistent with Renaissance
leadership practices and the desire to solve complex social and environmental
problems (Murgatroyd, 2013). However, only time will tell if Ellison can
overcome his bad reputation that continues to overshadow these positive
endeavours.
Buffett and Ellison clearly have the ability to navigate through the chaotic
conditions of an ever changing world, but do they have what it takes to be
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Renaissance leaders, visionaries who are worthy to help forge a path toward our
future? According to Murgatroyd and Simpson (2010), there are a number of
important factors that shape effective leadership but six key characteristics stand
out as necessary conditions for Renaissance leadership. The next section will
examine how Warren Buffett has met all of these conditions while the leadership
activities of Larry Ellison remain a work in progress.
Renaissance Leadership Practices: Warren Buffett
Personal mastery
According to Murgatroyd & Simpson (2010), Renaissance leaders have high
integrity and self-awareness, pushing themselves to do better and inspiring
others (p. 38). Warren Buffett is certainly a leader with a positive self-concept
who strives to set a good example, to be “transparent” and “accountable” in his
business and personal life (Schroeder, 2009 p. 674). Berkshire Hathaway
managers have described Buffett as “a genuine and principled person” and a
“mentor” (Chan, 2010 p. 14). For Warren Buffett, honesty and integrity means
everything. Buffett theorizes that all people have either an inner or outer
scorecard, meaning “we are true to ourselves or we conform to what we think the
world wishes us to be” (Buffett & Clark, 2009 p. 31). Buffett has spent his life
going against the grain, using innovative investment strategies that others could
not understand and would often criticize. He was able to make these decisions
and become an effective leader because he is someone with an “internal locus of
control,” guided by strong ethical principles (Buffett & Clark, 2009 p. 33). His
partner, Charles Munger (as cited in Schroeder, 2009) explains, Buffett “was
49
always competitive, but he was never just rawly competitive with no ethics” (p.
706). As a result, Buffett has become a model of corporate nobility, guiding his
business with integrity, humility and humour in a manner that is inspiring.
Renaissance leaders are not only individuals with high integrity, but they also
know themselves, their strengths and weaknesses as well as their capacity to
innovate and make a difference in the world around them (Murgatroyd &
Simpson, 2010 p. 48). One of Buffett’s mentor’s, Philip Fisher, once said of
Warren Buffett:
“He always knows exactly who he is and what he’s about. That is the prime part of Warren Buffett you should emulate. Know who you are” (Hagstrom, 2005 p. xxii).
Buffett’s business decisions have always been informed by his “circle of
competence” or his field of knowledge. To address areas of weakness, like
public speaking, or topics that fall outside of his circle of competence, Buffett has
taken courses or turned to his business mentors for advice in order to improve
his performance. His closest confident and partner, Charles Munger, for
example, taught Warren Buffett to move away from short-term investing and
purchase companies with intrinsic value. Consistent with the characteristics of a
Renaissance leader, Buffett actively seeks help from others to maintain personal
mastery (Murgatroyd & Simpson, 2010 p. 48).
Renaissance leaders are also very “mindful of the impact their leadership
has on those around them” and, as such, all of their actions are very purposeful
(Murgatroyd, April 6, 2013). Those closest to Buffett have said “he has never
said anything spontaneous and always seems to have an answer prepared for
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any question that could be anticipated” (Schroeder, 2009 p. 698). He very
deliberately assumes the role of mentor with the leaders at Berkshire Hathaway,
allowing competent managers to run “their” businesses as they see fit (Buffett &
Clark, 2009 p. 23). Buffett sees his role within Berkshire Hathaway as being able
to identify and purchase companies run by highly competent and passionate
people. He recognizes that this knowledgeable workforce is his greatest asset
and resource. He diligently prepares for every Berkshire shareholder meeting
where his role is teacher and mentor to thousands of eager investors.
Commitment to a life of integrity and self-fulfillment as well as his desire for
continuous learning through friendships and mentors has helped create this
modern Renaissance leader.
Applying a “Glocal” mindset
Another necessary condition for Renaissance leadership is a holistic
understanding of how the world works and the ability to apply this knowledge
locally (Murgatroyd & Simpson, 2010). At the individual level, this involves
having an in-depth understanding of historical developments as well as global
trends. At the organizational level, it means continuously scanning “the world for
competitors, potential partners and new ideas” (Murgatroyd & Simpson, 2010 p.
51). Warren Buffett certainly has a keen sense of history, researching
investments decisions made throughout the 20th century as well as key
developments in various industries. When he began investing, he spent
considerable time tracing the history of the stock market to learn about past
trends and inform his current investment practices (Schroeder, 2009 p. 134).
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Always in search of new business opportunities, Buffett continuously
monitors global developments in his search for investment and ownership deals.
While many of the companies owned by Berkshire Hathaway have a global
presence, one of Buffett’s key indicators of success is whether or not these
businesses “will work on main street” (Miles, 2004 p. 104). Berkshire’s
ownership of a furniture business, jewellery store, candy business, soft drink
company and razor blade manufacturer are all indicators of the type of
businesses Buffett likes to invest in and how these products have wide appeal at
the global and local levels. Buffett’s name has become so well known that
companies now come to him, wanting to be a part of the Berkshire Hathaway
brand. A true Renaissance leader, his understanding of global trends has
allowed him to seize opportunity.
Accelerating cross-boundary learning
Murgatroyd and Simpson (2010) suggest that Renaissance leaders are
“intensely curious” and show a strong desire to learn about all aspects of society.
Within the new knowledge based economy, Renaissance leaders have to provide
meaning and create innovative ways to drive high performance companies
(Murgatroyd, 2013). Warren Buffett has been referred to by friends and family as
a “non-stop learning machine” (Schroeder, 2009 p. 260). Buffett reads
everything from the biographies of people he admires to the history of the auto
industry. He has even critically examined investment decisions made prior to the
Great Depression. Buffett analyzed and combined the investment approaches of
his mentors, Ben Graham, Philip Fisher, John Williams and Charles Munger, to
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create his own unique and hugely successful approach to investing. Graham
taught Buffett about the “margin of safety” rule. From Fisher, Buffett learned the
importance of investing in quality companies with superior management.
Williams exposed Buffett to the concept of “intrinsic value” and Munger guided
Buffett in the direction of long-term investing (Hagstrom, 2005 p. 23). Munger
also helped Buffett “learn how different areas of knowledge, including science,
history, philosophy, and mathematics, held important concepts that should be
applied to all endeavours including investment decisions” (Hagstrom, 2005 p.
23). No one had ever before combined these investment concepts and theories.
Learning from different professors, investors and even business leaders in
different industries has allowed Buffett to create a unique and innovative
investment strategy in a manner that is characteristic of a Renaissance leader.
Cross-boundary learning is also about the dissemination of knowledge
throughout an organization and beyond. Murgatroyd and Simpson (2010)
recognize the importance of Renaissance leaders who can capture the essence
of meaning and clearly communicate this information in a “simple, impactful way”
(p. 59). Buffett has clearly excelled in this area. Buffett has taught university
classes on investing, written editorials and magazine articles, appeared on
television for interviews, testified in lawsuits, participated in government advisory
groups and has become a mentor to other CEOs in an attempt to share his
knowledge of investing. His letters to Berkshire Hathaway shareholders
represents another attempt to share his knowledge. Buffett regularly describes
problems as “instructive” and uses his international fame to improve our
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understanding of business and the global economy. When asked what legacy he
would like to leave behind, Buffett (as cited in The Buffett, 2014) has said,
“If what I’ve done with Berkshire Hathaway – running a unique and independent company in true pursuit of shareholder value-persists and people learn from it to improve the way they invest and run their companies, that would be a fine legacy” (The Buffett, 2014).
Thinking back from the future
Another practice of Renaissance leadership is the ability for leaders to
imagine or explore possible futures and work backwards to create the innovative
future they envision (Murgatroyd & Simpson, 2010 p. 60). Renaissance leaders
have the ability to inject a “future’s perspective into present challenges”
(Murgatroyd, June 2010). At an individual level, Buffett imagined becoming a
millionaire by the age of 35 when he was only 11 years old and developed a plan
to achieve that goal (Schroeder, 2009 p. 61). He understood the concept of
“compounding money” and “thought about time in a different way” (Schroeder,
2009 p. 61). As a long-term investor, Warren Buffett “lives in the future,” always
trying to anticipate the growth potential of investments and the companies he
purchases (Schroeder, 2009 p. 192). Even when calculating the current value of
a business, Buffett examines the estimated total earnings likely to occur over the
life of that business and then “discounts that total backward to today” (Hagstrom,
2005 p. 123). For Buffett, value is always calculated by predicting the future,
estimating future earnings and the external factors that may influence those
earnings.
Buffett frequently imagines alternative futures, an ability Renaissance
leader’s share, in order to measure the risk associated with any investment
54
decision. His decision to avoid investing in computer technology, for example,
was based on his assessment that with so many new entrants into the field it
would be difficult to determine which companies would have longevity, just as the
auto industry had lost so many manufacturers decades earlier. A true
Renaissance leader, Buffett is able to make important connections between the
past and present to achieve a greater understanding of the future (Murgatroyd,
June 2010).
Leading systemic change
Renaissance leaders are actively involved in leading change, often through
innovation (Murgatroyd & Simpson, 2010 p. 69). To drive large-scale change,
within their organizations, communities and throughout the world, Renaissance
leaders collaborate extensively (Murgatroyd, June 2010). Warren Buffett’s ability
to collaborate with mentors, friends, other business leaders and board members
is the very foundation of his success. He attributes his success to “associating
with people of integrity and skill” (Schroeder, 2009 p. xxi). Using the tools he
acquired from his mentors, as discussed earlier, Buffett was able to develop his
own innovative investment strategies. However, Buffett’s collaboration extends
beyond his own industry. In the 1970s, Buffett formed a friendship with Fortune
magazine writer Carol Loomis, who has helped him write his Berkshire letters to
shareholders ever since (Loomis, 2012). Buffett has formed an important
philanthropic partnership with friend and role model, Bill Gates of Microsoft. In
last forty years, Buffett has developed a network of “genuine relationships” that
have helped him achieve unprecedented success in the financial industry
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(Schroeder, 2009 p. 10). Collaboration and strategic partnerships across
industries makes change possible and is a necessary condition for Renaissance
leadership.
Driving performance with a passion
Renaissance leaders are passionate about their work, are “relentless in their
commitment to performance” and are dedicated to making a “substantive and
substantial difference” in the world (Murgatroyd, June 2010). Their passion is
inspiring to others. Warren Buffett became one of the wealthiest people in the
world and the most successful value investor because he is passionate about
what he does. In describing his obsession for perfection, his disciplined
approach and his passion for the work, Buffett has said, “intensity is the price of
excellence” (Schroeder, 1990 p. 523). According to Buffett (as cited Andrews,
2012) “without passion, you don’t have energy and without energy, you have
nothing”. His passion for his work and Berkshire Hathaway is so obvious one
observer wrote, “it is as if he and Berkshire were as one” (Schroeder, 2009 p.
413). While Buffett was initially driven by the desire to make money, his passion
for doing what he loves has become more important. Buffett (as cited in Lowe,
2007) has said “I enjoy the process far more than the proceeds” (p. 87).
Intrinsically motivated, Buffett insists, “if we were not paid at all, Charlie and I
would be delighted with the cushy jobs we hold” (Buffett as cited in O’Loughlin,
2003 p. 62).
Symbolic of Renaissance leadership, Buffett’s passion “sets the tone for
organizational performance” at Berkshire (Murgatroyd & Simpson, 2010 p. 76).
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Buffett only goes into business with people who share his drive and passion for
success. He purchases companies whose owners are “strong-willed and ethical
entrepreneurs” who “act like business owners” rather than managers (Arnold,
2012 p. 42). One of the Berkshire managers and CEO of R.C. Willey Home
Furnishings, Bill Child, has said Buffett “has a way of motivating you. He trusts
you so much that you just want to perform” (O’Loughlin, 2003 p. 60).
“For the leader’s of Berkshire, passion is a driver for success” (Chan, 2010 p.
159). The ethical and supportive organizational culture of Berkshire as well as
the phenomenal success this company has enjoyed for decades is indicative of a
passionate, Renaissance leader driving a high performance organization.
Renaissance Leadership Practices: Larry Ellison
Personal mastery
Examining the personality traits of Larry Ellison, there is little doubt he can be
an effective and strategic leader. Ellison has been described as an “incredibly
intelligent” and charismatic man (Wilson, 2002 p. 39). He represents an inspiring
visionary who is an excellent communicator and “masterful at motivating people”
to create truly innovative technology. While these characteristics are certainly
necessary elements of effective leadership, for Renaissance leadership they are
not enough. Renaissance leader’s exhibit personal mastery; “they have high
integrity and view self-awareness as a prerequisite for leadership” (Murgatroyd &
Simpson, 2010 p. 41). Ellison’s behaviour as CEO of Oracle has been described
as “reckless,” “unpredictable,” “calculating,” “cruel,” “amoral,” and “deceptive”
(Southwick, 2003; Symonds, 2004). Even former employees attempting to
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defend Ellison and the idea that he has lied suggest he “embellishes stories” and
is a “myth of his own making” (Wilson, 2002 p. 5). While story telling can be an
effective tool for Renaissance leaders, used to inspire and motivate followers,
Ellison has told so many stories he has lost the trust of many employees,
industry analysts and customers. Not at all characteristic of a Renaissance
leader, Ellison does not seem to understand or care about the impact his
outrageous behaviour has on others or the organization (Murgatroyd & Simpson,
2010 p. 47).
From his unfulfilled product promises to the “cruel” treatment of employees,
Ellison is not a Renaissance leader of high integrity. His self-confidence and
charisma have impaired his leadership performance. Murgatroyd & Simpson
(2010) highlight a number of leadership “derailers” that can interfere with
Renaissance leadership. When self-confidence becomes arrogance a leader’s
actions can actually hurt a company, the way Ellison’s bad reputation has
impacted Oracle. When charisma turns into “melodrama,” people become
distracted from the company’s performance and focus on the leader, in this case
Ellison’s public comments, competitiveness and outrageous spending habits.
According to Murgatroyd (April 6, 2013), Renaissance leaders “know
themselves and don’t spend a lot of their time in an organization using an
organization to discover themselves.” Unfortunately, this is exactly what Larry
Ellison has done. He has dismissed mistakes made at Oracle Corporation by
saying, “I didn’t know what I was doing,” or “I wasn’t experienced” (Wilson, p.
140). Ellison is the first to admit that he “had no idea how an organization
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worked (Symonds, 2004 p. 63). For years, Ellison has been “in a process of self-
discovery “(Academy of Achievement, May 22, 1997). More recent reports
suggest that Ellison has made an effort to address areas of weakness,
“becoming a better listener with customers, demanding more ethical conduct
from his sales team, relying on detail-oriented employees to help him focus and
attempting to create a more positive organizational culture at Oracle (Symonds,
2004). However, ongoing legal problems and a bad reputation are difficult to
overcome and continue to prevent Ellison from achieving personal mastery to
become a Renaissance leader.
Applying a “Glocal” mindset
Renaissance leaders have a keen sense of history, understand the global
changes and apply their knowledge to address local challenges and seize
opportunities (Murgatroyd, June 2010). Ellison has certainly demonstrated an in-
depth understanding of the world around him, particularly the world of business.
An expert in technology, Ellison has looked at global business and designed
software to improve productivity within companies of all sizes in all industries.
For example, the E-Business software developed by Oracle has not only
connected businesses to the Internet but has lead to improvements in
efficiencies and greater productivity at the organizational level (Symonds, 2004).
Ellison has taken complex ideas of global business, information access, world-
wide customer service and simplified these processes to fit any business. In this
area, Ellison clearly exemplifies the mindset needed for Renaissance leadership.
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He is able to utilize his knowledge of globalization to address challenges at a
local level.
Accelerating cross-boundary learning
According to Murgatroyd and Simpson (2010), high performance
Renaissance leaders are also intensely curious about the world around them and
use knowledge they’ve obtained from various sources to improve performance.
Ellison has demonstrated that he is “well versed in many areas including history,
politics, religion and science” (Southwick, 2003; Symonds, 2004). He has been
described as “one of the most agile and insightful minds” (Wilson, 2002 p. 8).
Some of this knowledge has shaped Ellison’s strategic decisions at Oracle. For
example, Ellison reportedly “patterned his competitive style after medieval
samurai warriors to launch a ferocious attack on the software market” (Warshaw,
1995 August). More importantly, Ellison has developed a comprehensive
understanding of how businesses operate in order to develop appropriate
software to standardize these operations. A computer programmer who dropped
out of university, Ellison has shown an amazing aptitude for understanding the
world around him and applying this knowledge to create innovative technology at
Oracle.
Another aspect of cross-boundary learning is the ability of Renaissance
leaders to “guide others in distilling meaning” and applying that knowledge to
nurture innovation and drive improved performance” (Murgatroyd, June 2010 p.
4). While Ellison is certainly a visionary, he has not always provided a “nurturing”
environment for Oracle employees to create innovative products. He has been
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described as a “cruel” and “demanding” boss who pushing employees to meet
unrealistic product deadlines (Wilson, 2002 p. 91). Ellison refers to his early
leadership style at Oracle as “management by ridicule” (Wilson, 2002 p. 133).
Creating ineffective bonus programs within his organization resulted in
competition and tension between departments and meant that the transfer of
knowledge within Oracle was minimal (Symonds, 2004 p. 119). The fact that
Ellison’s leadership was inconsistent did not help ensure adequate knowledge
management. He has gone from being a disconnected, “laissez-faire” leader,
spending months at a time away from Oracle to pursue the American Cup in
yachting, to becoming a micro-manager who is intensely involved and
“obsessed” with “controlling” every aspect of the business (Symonds, 2004 p.
286). The consequence of this new level of involvement may mean that
creativity and innovation at Oracle become stifled. These are not the
characteristics of a Renaissance leader, who acts as a teacher and mentor,
imparting and sharing critical information within their organization.
Thinking back from the future
Larry Ellison has an amazing capacity to look into the future and envision
what businesses would look like and what types of technology they would need
to help drive high performance. Former Oracle executives have claimed “Larry
lives in the future” (Wilson, 2002 p. 222). They suggest Ellison “sees the world
as he wanted it to be rather than as it was” (Wilson, 2002 p. 25). Renaissance
leaders have this ability or gift. They are able to imagine alternative futures and
work backward to make their vision for the future a reality (Murgatroyd &
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Simpson, 2010 p. 62). Setting his own personal goal of becoming a millionaire,
Ellison realized the only way he could become wealthy was to own his own
company. Then he thought about what he would produce and drew on his
experience as a computer programmer. The creation of his relational database,
the first product developed by Oracle, was really one of the final steps in his plan
to become wealthy. Seizing an opportunity to create the first commercial
relational database, Ellison relied on exceptional programmers to bring to fruition
an idea originally proposed by IBM (Symonds, 2004 p. 60). This backward style
of planning for the future provides “a radically different perspective” and is a key
element of Renaissance leadership (Murgatroyd & Simpson, 2010).
As Ellison has worked toward his own, personal vision for the future he has
also created a new reality for the rest of us. Ellison’s technological insights and
the implications of his software products on the business world have shaped the
future. Ellison explains, “leaders are people who do things before they become
fashionable or popular” (Symonds, 2004 p. 393). He is always “imaging a future
very different from the present” (Murgatroyd & Simpson, 2010 p. 63). Ellison
recognized the need for improved data collection and storage and developed
products that created more efficient businesses that operate on a global scale.
In this area, Ellison represents an ideal example of Renaissance leadership.
Once again, however, his unethical methods for helping to create a new business
landscape are cause for concern.
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Leading systemic change
Renaissance leadership assumes that “collaboration is the very DNA of high
performance companies” (Murgatroyd & Simpson, 2010 p. 75). When Oracle
first entered into the technology industry in 1977, collaboration meant working
with his business partners to produce and market an innovative new product
(Smith, 2010). Today, more than 35 years later, Ellison appears to recognize the
importance of “nurturing connections and collaborations” both within and outside
of his organization. Within Oracle, Ellison has focused more attention on
developing teams to address disconnect between product development and
sales (Symonds, 2004 p. 70). He has also placed greater emphasis on customer
collaboration, initiating meetings and roundtable sessions with potential
customers and CEO’s from different industries (Symonds, 2004 p. 232).
At different times, Oracle has partnered with Apple, British Telecom, nCube,
Java, Salesforce.com, NetSuite, and even its long-time rival, Microsoft in 2013
(Hawes, June 27, 2013). To explain these new relationships, industry analysts
have said, “Oracle’s realization that no one succeeds alone in a very fast-moving,
tough market for enterprise software-as-a-service is leading them to move fast on
these partnerships” (Columbus as cited in Hawes, June 27, 2013). According to
Murgatroyd and Simpson (2010), these types of collaborations and partnerships
are necessary for leading systemic change and driving high performance
organizations.
63
Driving performance with a passion
Despite what many people may think of Larry Ellison, there is no doubt he is
a passionate leader, obsessed with the growth and success of Oracle
Corporation. Employees and industry analysts have said Ellison is “emotionally
attached” to Oracle and that the company represents a “holy mission” (Wilson,
2002 p. 50). Ellison has certainly set the tone for Oracle in terms of both
creativity and innovation and he has developed “focused strategies to achieve his
goals,” which is characteristic of Renaissance leadership. However,
Renaissance leadership requires leaders have “vision” and “values” (Murgatroyd
& Simpson, 2010 p. 81). His apparent lack of ethical values and questionable
methods for achieving his objectives are not at all consistent with Renaissance
leaders guiding high performance organizations (Murgatroyd & Simpson, 2010).
In the midst of the controversy surrounding this leader, he manages to instil
confidence in his employees, Oracle board members, shareholders and
customers who eagerly anticipate his next innovative product. A former co-
worker, Stuart Feign, describes Ellison’s contagious passion as “an-aura,” a
powerful sense of possibility (Wilson, 2002 p. 40.
For Renaissance leadership, passion must be combined with “substantive
and sustainable” results (Murgatroyd, June 2010). Ellison’s innovative
contributions to the technology industry and the world of business certainly
represent substantive results. He has demonstrated that he can adapt quickly,
recruit excellent people, and take risks with his innovative ideas. What is less
clear is whether or not Ellison’s leadership will create long-term sustainability for
64
Oracle. Every risky, unethical and legal battle represents threats to Oracle’s
reputation, diminishes confidence in Ellison and costs the company billions in
lawsuits, legal representation and fines. A complex man and leader, Ellison
certainly has the potential to become a Renaissance leader with greater attention
to values and ethical conduct.
Renaissance Organizations
The Renaissance model is not just about leadership but is also focused on
results; working to improve individual and organizational performance and
making a positive contribution to the community (Murgatroyd & Simpson, 2010 p.
76). If Renaissance leaders are successful, the structure of their organizations,
their treatment of employees, their recognition of customer value will reflect this
style of leadership. “Managing and balancing the dynamic relationship between
a number of different forms of capital will be the key task of leadership in modern
day Renaissance organizations” (Murgatroyd & Simpson, 2010 p. 21). The
following section will present a brief review of Berkshire Hathaway and Oracle
Corporation, the companies owned and operated by Warren Buffett and Larry
Ellison.
Berkshire Hathaway
Described as the most successful investment holding company in the world,
Berkshire Hathaway owns over 100 businesses and purchases publically traded
stocks and bonds to generate profit for investors all over the world (Smith, 2010).
As discussed above, this business has been able to successfully manage
intellectual capital by choosing the best companies operated by the best
65
management teams. Buffett has successful retained employees by creating a
positive organizational culture where respect and “praise” are commonplace and
employees are rewarded for excellent performance (Schroeder, 2009 p. 408). In
terms of structural capital, another key characteristic of a Renaissance
organization, Buffett has created an efficiently run business made up of many
companies that will likely continue to operate in the same ethical and highly
productive manner for years to come. Since Buffett has given his managers the
freedom to run their businesses to the best of their ability, speculation and
concern over the future of Berkshire without Buffett appears to be unfounded.
Renaissance organizations are also concerned with the “loyalty” and
relationship with clients and customers” and view this relationship as the primary
source of profitability (Murgatroyd & Simpson, 2010 p. 21). Buffett’s intense
concern about the reputation of Berkshire, his treatment of shareholders like
owners and his dedication to providing products and services that appeal to
global consumers has virtually guaranteed his success in this area. In terms of
Berkshire’s “agility capital,” or its ability to quickly respond, Buffett has
demonstrated that for an investment company to be successful it has to be quick
to seize opportunities (Schroeder, 2009). He has created an organization based
on collaboration and a shared value of ethical business behaviour that can stand
up to scrutiny or the “front page” test. Ensuring that his company maintains
inspirational and performance capital, Buffett hires the best managers and
invests in the most competitive and successful companies in the world
(Schroeder, 2009). An inspirational, Renaissance organization, Berkshire
66
Hathaway has demonstrated that it understands the importance of knowledge as
a key economic resource and the need to create a positive work environment to
retain that knowledge.
Oracle Corporation
As the second largest computer software company in the world, with annual
profits of $10.9 billion (CNN Money, February 1, 2014), Oracle Corporation is
clearly a high performance organization. Murgatroyd & Simpson (2010) have
argued that the “commitment of people within the organization” and “employee
satisfaction” represent the “best predictor of success” (p. 21). Unfortunately, in
his efforts “to create an atmosphere of the very highest expectations” (Wilson,
2002 p. 105), Ellison did not ensure employee satisfaction. As a former
employee explains, “there was a lot of intimidation, a lot of uncomfortable
intimidation” (Wilson, 2002 p. 105). Another former employee said “you didn’t
dare turn your back at Oracle for fear someone would stab it” (Symonds, 2004 p.
133). The result was a “poor organizational culture” at Oracle and high staff
turnover (Symonds, 2004). At different times, Ellison has “systematically purged
Oracle’s senior ranks of much of their talent” (Southwick, 2003 p. 5). Ellison
obviously recognizes the importance of intellectual capital, hiring the best
engineers to develop innovative new technology, but retaining this specialized
and highly knowledgeable workforce with more than money and stock options
would be an important change. The values of growth, profit and winning have
taken precedence over ethical business conduct. At a time when a knowledge-
based organization is critical for success, and a key characteristic of
67
Renaissance organizations, Oracle has the challenge of trying to turn around its
organizational culture and retain exceptional talent.
More recent developments at Oracle have focused on creating a more
efficient organizational structure, eliminating duplicated departments in overseas
operations and demanding the sales team meet more rigid standards (Symonds,
2004). His rapid development of innovative software products to become a first-
mover in this industry demonstrates his ability to manage agility capital. In the
area of customer capital, however, Oracle has a challenging road ahead and
does not yet meet the requirements of a Renaissance Organization. Customer
complaints concerning Oracle’s products and the lack of customer service have
been significant and continue to overshadow recent efforts to address these
issues. Teamwork and collaboration have become important at Oracle to
address some of the inter-departmental conflicts that once plagued the company.
However, it is difficult to know if this collaboration has helped focus the different
departments to follow the same vision, a necessary condition for Renaissance
organizations.
Finally, Oracle Corporation is very much concerned with inspirational capital
and performance capita. The problem is the manner in which these forms of
capital are managed. Ellison has often created unrealistic deadlines for his
employees, made public announcements concerning product design and pricing
before speaking to his engineers and sales team which has made it difficult for
Oracle to meet his ever-changing performance demands (Symonds, 2004).
While Oracle is a successful company developing innovative products that are
68
changing the world, it has not demonstrated that it is able to effectively manage
the different forms of capital in a manner consistent with a modern day
Renaissance organization.
69
Chapter Seven: Analysis
Summary of Findings The findings of this research project confirm that Warren Buffett and Larry
Ellison are both exceptional and innovative leaders who have viewed the
challenges of the 21st century as opportunities. At this time, however, only
Warren Buffett can be considered a Renaissance leader within the theoretical
framework developed by Murgatroyd and Simpson (2010). Warren Buffett was
found to be an ethical and inspirational investor who recognizes the value of a
knowledgeable workforce and passionately strives to create a better future for his
business and citizens of the world. He is has a unique approach to imagining
and creating a new future in the business world through his investment activities
and in the area of philanthropy, an approach consistent with the way
Renaissance leaders “think back from the future.” Buffett’s company, Berkshire
Hathaway, was found to be a Renaissance organization, able to successful
balance the different forms of capital needed to survive the challenges
associated with a knowledge-based economy.
Larry Ellison, on the other hand, has yet to follow all six of the practices
needed to achieve Renaissance leadership. A passionate visionary who has
clearly changed the technology industry and the world of business, Ellison’s
unethical business practices, win at any cost attitude and self-serving values are
not characteristic of Renaissance leadership. As Murgatroyd (June 2010)
explains, “leadership is first and foremost a mind-set and is more about serving
others than authority and power” (p. 3). If Ellison were to address the problems
70
that have “derailed” his leadership, set the tone for ethical conduct in his
organization and the technology industry and implement creative initiatives to
demonstrate a sense of social responsibility, as he has proposed to do with the
purchase of a Hawaiian island, he has the potential to become a truly
inspirational Renaissance leader.
Limitations The most obvious limitation of the research project is the fact that only
secondary data was used. As discussed earlier in this paper, every attempt was
made to address this limitation by actively searching for contradictions and
“negative cases” but these strategies do not guarantee, without a doubt, that
important information is not missed. Ideally, a triangulation of methods would be
used to address this limitation. Had this researcher personally interviewed
Warren Buffett, Larry Ellison and their associates a more complete
understanding of these leaders would be possible. With that said, every
opportunity was made to use a variety of first-hand accounts, where these
leaders describe their experiences in their own words.
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Chapter Eight: Recommendations
The results of this project have a number of important implications. In the
following section, recommendations for theoretical development in this area as
well as practical suggestions for leaders will be presented.
Theoretical Implications
This paper has clearly demonstrated the important contribution the
Renaissance Leadership theory has made to the study of leadership as well as
the practical application of this model for guiding leaders through unsettling,
turbulent times. Renaissance Leadership not only addresses gaps in previous
theoretical developments, it also integrates a number of important elements of
previous theories including leadership traits, behaviors and transformational
activities. Murgatroyd (2013) has suggested that the importance of followers is
an “implicit” seventh practice of the Renaissance Leadership model but it may be
useful to explain the importance of followers in more detail. The 21st century
brings with it significant challenges, as this paper has shown, but great
leadership can only take us so far. Will followers influence Renaissance leaders
in a type of feedback loop, as past leadership theories have suggested? For
example, the public demand for ethical business practices has not only been
shaped by Warren Buffett but has likely fuelled him to take the issue further,
lobbying congress, pushing for more regulations in the financial industry. Will
followers begin to look like collaborators with social media connecting us to
leaders in a whole new way? These are issues that certainly could be explained
with the Renaissance leadership model.
72
Practical Implications
After decades of research and countless theoretical developments
attempting to explain successful leadership, there is little doubt that great
leadership is a complex process involving personal traits, behaviours, situational
factors, and a vision for the future. The analysis of Buffett and Ellison presented
in this paper has demonstrated the importance of the Renaissance leadership
model, not only as a theoretical explanation for successful leadership but as a
practical model of behaviour that any leader can strive to follow. This study
provides a number of practical, managerial recommendations for leaders in the
21st century.
The first recommendation is that leaders recognize the value of hiring the
best, most knowledgeable people in their field. Buffett and Ellison both
understand the importance of surrounding yourself with smart people who can
help a company seize opportunities, innovate and meet the challenges of a
modern Renaissance.
The second practical recommendation from this study is that leaders must
always remember the importance of customer loyalty. Business leaders who
ignore their customers, even for a brief time in the history of their company, face
significant obstacles in overcoming a negative reputation. We have learned that
Larry Ellison continues to address public scepticism and mistrust, even as he
produces some of the most innovative technological products in the world.
Most importantly, this study has demonstrated the need for integrity and
ethical business conduct. Ethical conduct not only sets the tone for
73
organizational culture, behaviour and performance but extends beyond the
company to influence the industry and the world. Some have argued Larry
Ellison is simply a product of a competitive and unethical technology industry.
One industry analyst explains;
“If anything, Ellison is merely a poster boy for what it takes to thrive in an increasingly ruthless environment. His rare combination of hubris and self-awareness enables him to skid recklessly to the edge, stopping just short of the cliff. And his stunning trajectory offers a valuable lesson: in the cutthroat arena of big business, sometimes it pays to be a jerk” (Mendelson, November 10, 2010).
It is difficult to argue with the fact that Ellison’s behaviour has had a positive
outcome in terms of his personal wealth and the growth of Oracle Corporation.
However, what is less clear is the lasting impact of his unethical behaviour within
his industry, the business community and for consumers. Business leaders have
a responsibility to behave ethically. Efforts to legislate ethics should continue but
ethical business mentors are likely to have more success. This study
demonstrates that leaders, like Warren Buffett, who act with integrity and set the
highest standards for ethical conduct can become highly successful,
Renaissance leaders driving high performance companies while, at the same
time, making a positive contribution to the world. Leaders in every industry, in
any business face significant challenges in this modern era. To navigate through
this uncharted territory, the world will need leadership it can trust.
Finally, this study has helped to identify a number of specific characteristics
or behaviours that Buffett and Ellison share and that can be important lessons for
managers in any organization. Both leaders have a vision they pursue with
74
passion. They are dedicated to life-long learning and surround themselves with
equally passionate, smart people who help them develop their understanding of
the world as well as their innovative ideas. Buffett and Ellison both seize
opportunities and respond rapidly to capitalize on these opportunities. These
leaders have changed and adapted over the years, but they haven’t changed
their successful, key strategies. They think about the future in a way that most of
us do not and have found a way to make their dreams a reality by working
backwards from the future. Most importantly, these leaders share an
“unrelenting optimism,” demonstrating that leaders can create a better future for
themselves, their organization and the world around them. Recognizing this fact
should instil all leaders with a sense of hope, knowing that we have the ability to
create the world of our dreams and thrive in times of uncertainty.
75
Chapter Nine: Conclusion
For centuries, philosophers and academics have studied the individual traits
and behaviours of great leaders as well as the social and structural conditions
required for successful leadership. Attempts to develop a comprehensive
leadership theory have been closely monitored by the business world, where
great leadership means the difference between organizational success and
failure. The focus of this project was on the leadership styles and behaviours of
Warren Buffett and Larry Ellison because they have come to symbolize great
leadership in our time. Many assume that “the replication of any great
achievement first requires knowledge of how it was done” (Washington Post as
cited in Schroeder, 2009).
This paper explored the challenges facing leaders in the 21st century and the
innovative ways in which Buffett and Ellison have overcome these challenges,
even describing them as opportunities. Both leaders have accumulated
incomprehensible personal wealth and are driving high performance
organizations, but only Buffett had the six key behavioural characteristics of
modern-day Renaissance leadership. While Larry Ellison was shown to be a true
innovator in the technology industry, this research found that his unethical
decisions, treatment of employees and failure to build customer loyalty and trust
have kept him from becoming a Renaissance leader. This study demonstrates
that the Renaissance model not only provides a framework for the skills and
conditions needed for high performance organizations, it also offers practical
tools that leaders can use to meet the challenges of the current global,
76
knowledge-based economy in order to obtain a competitive advantage. Any
organization, large or small, can improve productivity and thrive in an ever-
changing, uncertain market when guided by a modern day Renaissance leader.
77
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