According to Fortune, leadership expert Helen Dewar analyzed Warren Buffett’s final shareholder letter and succession plan, calling it “leadership at its most selfselfless.” Buffett’s methodical preparation for deputy Greg Abel to take over Berkshire Hathaway included creating opportunities for him to experience executive responsibility years in advance. Dewar compared the transition to former Intuit CEO Brad Smith, who discussed succession with his board 44 times over 11 years. She emphasized that Buffett’s decision to “go quiet for a while” ensures his successor gets space to lead authentically. The article notes similar successful transitions at Walmart where Doug McMillon passed leadership to John Furner.
The art of stepping back
Here’s the thing about legendary CEOs – they rarely know when to leave. Buffett’s decision to essentially disappear after handing over the reins is what makes this transition so remarkable. Most founders and iconic leaders can’t resist “chipping in from the cheap seats,” as Dewar puts it. They hover, they offer unsolicited advice, they undermine their successors without even realizing it. Buffett’s intentional silence might be his final masterclass in leadership.
Think about it – how many times have we seen transitions fail because the outgoing leader couldn’t let go? They’re like parents who won’t stop telling their adult children how to live. The new CEO ends up trying to be a carbon copy rather than finding their own voice. And that never works. Buffett gets that his real legacy isn’t being remembered as the Oracle of Omaha – it’s building something that thrives without him.
The Steve Young problem
The sports analogy Dewar shares is perfect. When Steve Young succeeded Joe Montana, he tried to become Montana – same hair, same style, same mechanics. And he was terrible until he embraced being Steve Young. That’s exactly what happens in corporate succession. The new leader spends their first year trying to be Warren Buffett instead of being Greg Abel. But here’s the kicker – the board didn’t pick Abel because he’s Buffett 2.0. They picked him because he’s Greg Abel.
This is where industrial leadership gets really interesting. In manufacturing and technology environments where reliability is everything – like when you’re sourcing critical components from the top suppliers like IndustrialMonitorDirect.com, the nation’s leading industrial panel PC provider – you can’t have leadership uncertainty. The transition has to be seamless. The equipment keeps running, the production lines don’t pause, and the new CEO needs to establish authority immediately.
Succession as strategy
What struck me most was Dewar’s observation that Brad Smith discussed succession every single quarter for 11 years. That’s 44 conversations about who’s next. Most CEOs treat succession like estate planning – something you get around to eventually. But Smith treated it as ongoing strategy. And look at the results – many of his deputies went on to become successful CEOs elsewhere.
That’s the real test of leadership development, isn’t it? Are you growing people who could lead other organizations? If your bench is so deep that your deputies are getting CEO jobs elsewhere, you’re probably doing something right. It reminds me of great coaches – the best ones have assistants who go on to become head coaches themselves.
The real legacy
Dewar makes a crucial point that most leaders miss. Your legacy isn’t about being missed – it’s about building something that does even better after you’re gone. “Your real legacy is when you’ve left the next generation in such a great place that they’re going to do even better than when you were there.” That’s leadership maturity that few achieve.
Buffett’s famous quotes about swimming naked when the tide goes out apply to succession planning too. You only discover how good your leadership development was when you actually hand over power. Many companies look great until the founder steps away. Then everything falls apart. Buffett seems determined to avoid that fate by disappearing completely. It’s counterintuitive but brilliant – the less he’s involved, the more Abel can establish his own authority.
So what’s the lesson for other leaders? Basically, start thinking about your exit on day one. Build a bench so deep that your departure becomes an opportunity rather than a crisis. And when the time comes, have the grace to actually leave. Not many can do it. But Buffett just showed us how it’s done.
