When Warren Buffett stepped down as the face of Berkshire Hathaway, he taught us how to do it well. His recent coronation of his successor is a model of a graceful and future-oriented succession.
Buffett offers us a masterclass in transitioning from the public face of a company to its best cheerleader. His announcement was all about the future of the company he built. Not about the future of Warren Buffett. He’s still driving the bus with his business brain while his ego takes a backseat. He clearly wants the company he built to succeed without him as its public face. Some with bigger egos (and there are many) have looked like they actually wanted their companies to fail after they left. Their egos continued to drive the bus.
Buffett announced Greg Abel as his successor, making the transition seem natural. As David Richardson said in PR News, “The communications around the transition were minimalistic—yet they controlled the narrative. There were no leaks. No grandstanding. Just a quiet confidence that spoke volumes…Warren Buffett’s communications strategy mirrors his investment thesis. Rather than chasing hype, he stays principled, opts for transparency and builds for the long haul.”
There are risks and rewards in having someone as the face of a brand. Here are some of the rewards:
- Humanizing the company – Those who associate a specific person with the company feel warmly about its products. “If Beyoncé is behind this shampoo, I know it will make my hair soft and manageable.”
- Bringing authenticity and consistency to the brand – When one person is seen as the company’s visible model, stakeholders believe it will deliver what it promises every time . “If this wellness program works for Tom, it will work for me.”
- Making people feel personally connected to the company — If consumers see one person at the helm, they feel lthey are in a personal, rather than transactional, relationship with its products. “If this recipe comes from Ina, I know my guests will love it.”
- Helping a brand recover after a crisis – When consumers feel personally connected to the founder of a company, they are more likely to return to it after a crisis. “If I want to find ways to entertain in style, I will always turn to Martha.”
But, of course, there are downsides:
- Bad behavior can impact a company’s bottom line – When someone is seen as the soul of a company, his or her bad behavior can feel personal to buyers of the product. “I want to do my part to fight climate change, but I’m not buying a car from Elon.”
- Founders don’t live forever – When a founder dies, consumers may question whether the company can maintain its competitive advantage. “When Steve died, that company seemed to lose all its creative edge.”
- People age—Companies that bind their reputations to one person risk negative consumer sentiment when that person steps back from the day-to-day. Stakeholders may worry that the ship has no rudder. Here’s where Buffett shows us that this isn’t inevitable. As he graciously handed over the daily running of the company, he expressed his confidence and admiration for his successor. He also made it clear that he would still play a role in Berkshire Hathaway.
Warren Buffett is showing us what a smooth company transition of power looks like. He leaned into the principles that contributed to his own success—scrupulous planning, personal discipline and a dedication to a long-term strategy. Thank you, Warren, for showing us all how it’s done.
