Scott Fetzer: a subsidiary of Berkshire Hathaway

Corporate or Family or Both?

It was not what I expected. I was hired to make a presentation to the annual meeting of the presidents and general managers of Scott Fetzer. I confess I didn’t recognize the name when I got the job but a quick bit of research revealed that this was the manufacturing division of Warren Buffet’s conglomerate Berkshire Hathaway.

We’ve all heard or read the stories about the “Oracle of Omaha” and his value-based approach to investing. I’d also heard about his approachable, down-to-earth demeanor and clear communication with his investors. The only document I got prior to the meeting was a copy of the Berkshire Hathaway annual report which is written in clear, frank, direct, self-deprecating language mostly by Buffet himself and his vice-chair.

To prepare for the meeting I spoke with the president of the division. I hadn’t necessarily expected the same friendly directness that I saw in the annual report but that was exactly how Ken Semelsberger came across in our phone conversation. He helped me tailor my presentation, gave me some advice about areas I should cover, but basically left the content to my judgement. He invited me to join the group the evening before my presentation for a reception.

The reception and the meeting were unlike any other corporate meeting I’ve attended. It was more like a family picnic or gathering than it was a corporate event. Don’t get me wrong . . . there was plenty of business and strategy discussed at the meeting but it was done in a casual, inclusive way. I’m sure that there is competition between the various companies on performance but it took a distant back seat to cooperation and communication.

I was especially impressed that spouses were not only at the reception but also attended and participated in the business meetings. A few worked in the companies but it was really a sign of Scott Fetzer’s holistic approach that I believe recognizes top management as real people, not functional cogs in machinery. The opening presentations by the chairman and the president of the division were concise, direct, and uplifting. No suits. No big production. No mind-numbing PowerPoint slides. Just a couple of guys talking to their business family about accountability, change, and performance in a warm-hearted way.

There was high interest in the room as the performance of each of the companies came up on the screen in a graphical format that was both dramatic and easy to understand. Ken narrated along with the visuals and talked about challenges, praised exceptional performance, and discussed areas for improvement. Before I spoke there was a skit put together by four of the company presidents regarding e-business. The tone of the meeting reminded me more of a Herb Kelleher-inspired company meeting for Southwest Airlines employees than a button-downed rigid business meeting for a that I see too often.

I sat in the back of the room and marveled at how some corporations would have done things differently. When I spoke I had more questions than I’d ever had from a corporate group. These were managers who were curious about the future, eager to anticipate what challenges they might face in the next decade, and less interested in expressing their opinions than in increasing their knowledge.

On the plane out of Savannah I wondered why I didn’t see more companies with this same culture and conduct. I’m still wondering.