Read Excerpts From David Sokol’s Book

By Shira Ovide

Before David Sokol became the world’s most famous ex-employee of Berkshire Hathaway, he was a self-published author.

Sokol in 2007 issued a 127-page business guide, “Pleased but Not Satisfied” which is packed with personal biography and anecdotes (go karts and irate shoppers returning fatty roasts, for example) and business aphorisms influenced by some of Sokol’s mentors.

Deal Journal plucked a few choice nuggets from “Pleased But Not Satisfied.”

Sokol on integrity:

[W]hat is integrity? First of all, it is not as complicated or gray as many would have you believe. Integrity is merely doing what is right, even when no one is looking. It is being honest with people. It is being forthright and candid. It is honoring a commitment even when it is not convenient. It is admitting when you are wrong. It is maintaining confidentiality. It is giving proper credit to an individual’s contributions or achievements. It is playing by the rules and not attempting to get around them.”

Sokol on his tough evaluation of employees:

“A technique I utilize in evaluating my team is to first keep a notebook, updated at least monthly, as an employee’s successes or failures during the month. Waiting until year-end often places too much emphasis on October and November outcomes, as opposed to the entire year. Then, after separately evaluating each employee, I force myself to rank my team in the order in which I would terminate each member if I was forced to do so one at a time…Employees discover early and often how their performances measure up versus expectations. Further, it enables us to identify future high-performance individuals and help them acquire the skills necessary to achieve their career goals.”

Sokol on Warren Buffett:

“Warren has created a perfect haven for businesses that want to grow in a sensible manner. Berkshire Hathaway companies avoid the public market pressure of quarterly earnings guidance, fads or short-term trade-offs versus long-term superior results. Warren creates a climate for business managers akin to playing in the Pro Bowl, but where individual performance takes a back seat to team performance.”