"The company must be set up so it can continue without me."
The idea of setting a company up so that it can go on without us seems obvious at first; and as far as the fact of continuity...it is. But when you consider the implications of this, it's simple to understand but extremely difficult to bring about.
How do you build continuity? Can anybody really answer the question? What company that existed in 1900 still exists today? How does it exist?
What about management principles? Are there some that are meant to last forever? Are there some still around today that existed even 500 years ago?
A couple of things that Branson says he needs to do is to "understand the art of delegation," and "be willing to step back."
He also added, "I have to be good at helping people run the individual businesses."
All of what he said here not only applies to succession and continuity, but I think is crucial to be a viable, lasting businesses all the time.
I don't disagree with what Branson mentions here, and I think the principles he mentions definitely have their place. The question really isn't answered though. The question isn't whether individual businesses can be run or if things are delegated throughout the various companies. Neither is it empowering people and giving them the tools to run the individual businesses. All of that is important, but I think inadequate.
The question really is: Who will replace Richard Branson? How do you replace Richard Branson? Does he have a succession plan in place? How will it be administered?
Warren Buffett understands what Berkshire Hathaway needs and has taken steps - along with the board - on what needs to be done. The individual that will replace him as manager is already chosen, and the replacing of him on the investment side may even be done with more than one person.
But what I'm overall trying to get at here is other than choosing a successor, there really isn't much more that someone can do. Sure you examine things carefully and thoroughly, but in the end, you simply have to make a choice based upon the best data and information available, like anything else.
When it all comes down to it, I believe that continuity lies in the business you choose in the first place. With Branson he's chosen to take who he is and put that imprint upon the hundreds of companies he started and owns under the Virgin umbrella.
Will that be reproducible? I don't know. Can it continue? It's a question that only time can answer. I think that all Branson or any of us can do is put the right person in to replace them. After that we don't have much control, if we really ever did.
Setting up a company for continuity isn't something that we can take an awful lot of examples of and measure our companies against, for historically there are very few that have lasted. Other than the steps that Branson has already mentioned, the best thing to do is groom someone to prepare to take over, and then truly being willing to step aside once and for all.
Nobody ever really knows the quality of the foundation they've laid until it's tested without them around. Branson has yet to face that, as most of the rest of us do as well.
Other Branson Sources:
Richard Branson conquered the world. Now he wants to fly you to space.
OPEN LETTER TO GEOFF DIXON FROM RICHARD BRANSON
Richard Branson's: Losing My Virginity
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