How does Buffett handle a span of control that includes 77 direct reports? He operates on the premise of what he and his business partner Charlie Munger call “deserved trust.” They assume their people deserve trust unless they prove otherwise. It’s not blind trust; it’s smart trust. It includes discernment in the selection of people, communication of clear expectations, and establishing high standards of accountability. Above all, it includes the intentional extension of trust. People respond to being trusted. They thrive on it. They’re inspired by it.
