Accelerate May 2015 - Page 50

HR Effectiveness BY DANIEL RUSSELL R ecently, Warren Buffett sent his famous biennial memo to his “All Stars” – that’s what Buffett calls the top management team of Berkshire Hathaway’s various subsidiaries. Buffett has sent these memos to his top leaders for the past 50 years and they have always covered two topics: 1) protect the reputation of the firm, and 2) succession planning (although he doesn’t use that term). Buffett’s focus on reputation gets most of the attention from news outlets who cover the memo (e.g., The Wall Street Journal, “Buffett Reminds His Top Managers: Reputation is Everything”). Indeed, reputation gets about two-thirds of the memo and succession planning gets about one-third. 50 May 2015