Meaning: This quote by Henry Kravis, a prominent businessman and co-founder of Kohlberg Kravis Roberts & Co. (KKR), encapsulates the importance of effective management and the role of incentives in fostering a collaborative and forward-thinking approach. Kravis is known for his expertise in the realm of private equity and has played a significant role in shaping the landscape of modern finance. His emphasis on working with skilled managers, providing appropriate incentives, and fostering a partnership with management reflects key principles in successful business leadership and strategy.

In the first part of the quote, Kravis highlights the value of working with exceptional managers. This underscores the significance of leadership and the impact that capable managers can have on the success of an organization. Effective managers are able to inspire and guide their teams, navigate challenges, and drive strategic initiatives. By expressing his appreciation for working with "very good managers," Kravis acknowledges the pivotal role that competent and visionary leadership plays in achieving business objectives.

The mention of providing the right incentives for managers is also significant. Incentives are a crucial aspect of motivating and aligning the interests of management with the overall goals of the organization. By offering appropriate incentives, such as performance-based compensation, stock options, or other rewards tied to achieving specific targets, organizations can ensure that their managers are driven to excel and contribute to the long-term success of the company. Kravis recognizes that incentivizing management in a strategic and tailored manner is essential for fostering a culture of high performance and accountability.

Furthermore, Kravis emphasizes the importance of becoming a partner with management. This speaks to the concept of collaboration and mutual respect between leadership and managers. By establishing a partnership, there is an acknowledgment of shared goals and a commitment to working together towards achieving them. This collaborative approach can lead to a more cohesive and harmonious organizational culture, where managers feel empowered and supported in their roles, leading to improved performance and innovation.

The idea of making management take a long view is also noteworthy. In a business context, taking a long-term perspective is crucial for sustainable growth and strategic decision-making. By encouraging management to focus on long-term objectives, rather than short-term gains, organizations can position themselves for enduring success. This aligns with the principles of strategic management and the importance of planning for the future, rather than being solely focused on immediate results.

Overall, Henry Kravis's quote underscores the significance of effective management, the role of incentives in driving performance, and the value of fostering a collaborative and forward-thinking partnership with management. These principles are fundamental to successful business leadership and can have a profound impact on the long-term success and sustainability of an organization. Kravis's insights draw attention to the essential elements of leadership and management that are integral to achieving sustainable growth and competitive advantage in today's dynamic business environment.

In conclusion, Henry Kravis's quote reflects the core principles of effective management, strategic leadership, and the importance of incentivizing and partnering with management to achieve long-term success. By recognizing the value of skilled managers, providing appropriate incentives, and fostering a collaborative and forward-thinking approach, organizations can position themselves for sustained growth and competitive advantage in the ever-evolving business landscape.