Earlier this month, Berkshire Hathaway CEO Warren Buffett dropped some surprising (but not) news: At 94, he had decided to step down from a role he’s had since 1970. Replacing somebody who’s been in the corner office since Nixon’s first term is a tall order, especially when the company is already recognized as a model for sensible, steady growth. But there are lessons for any organization from how Buffett has planned for and handled the transition.
First and most obvious (but on the evidence often not), he had a succession plan. Greg Abel, who will take the reins at the end of the year, was named as Buffett’s successor in 2021, and has long been in charge of the company’s investments. More than just thinking about the particular expertise Abel would bring to the company, Buffett was also mindful of the vision Abel would bring—and aware that it wouldn’t necessarily be the same as Buffett’s.
At the company shareholders’ meeting where he made the announcement, Buffett said, “You really need someone that behaves well on top and is not playing games for their own benefit... Greg does something about it and I’ve generally been lax in doing something about it.” By “it,” I take Buffett to mean something like “setting a long-term idea for the future of the company.” At least, that’s how he presented himself at the meeting: “Warren talks about the curiosity being important as you go through things, that would be my style, to have questions and comments around their business, their frameworks."
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