Devoted to Managers and those that seek to improve their management skills

Hands-off Management Means Continuity

We've talked here about Warren Buffett's legendary hands-off approach to management that draws great managers to the company like bugs to a light. Even when buying big companies where the CEOs are the founders, they don't mind at all staying on and running the company. Many of them even say that it really wasn't much different from when they owned the company and Berkshire Hathaway (BRK-A) owned it.

Even though Buffett hasn't been a hands-on manager, he has been a hands-on investor. That's where the difficulty of succession will come in; replacing him in that area, which nobody will be able to do at his level.

But in the area of management, the company should go on performing well, years past the retirement or passing of Buffett. Basically the company runs without him as it is.

What I want to point out this time is that one of the many benefits of hands-off management is the continuity that it breeds within a company. There are many company leaders, whether big or small, public or private, that truly let their people go and grow. Berkshire and Buffett isn't one of them.

While the board of Berkshire has already chosen his successor, you can be sure that the person will have no trouble filling the management duties and keeping the company going forward, as every manager in the company is doing it already with pretty much no interference as it is. They'll be trained and ready to go for that reason alone.

One more important factor concerning continuity, it's not just related to succession, but everyday running of businesses within the company as well. That's another reason why the results of Berkshire have been so steady throughout the years. Managers simply keep on doing on a daily basis what they know how to do and nobody gets in their way.

Other Buffett Resources:

Investment Whiz Kid: Buffett Amasses a Fortune

Management Styles - The Buffett Way: Learn from the maestro himself

Understanding the Company

Brand names Commodity companies

THE REAL GENIUS OF WARREN BUFFETT

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