The power of seat notes
Firms that document every role and keep the notes current gain resilience. Nobody, up to and including the chief, should be irreplaceable. Warren Buffett told Berkshire Hathaway’s shareholders in May 2025 that he would hand over as chief executive at the year’s end, and on January 1, 2026, Greg Abel duly took the chair. Abel […] The power of seat notes was originally published on Emerging Europe .
Seating arrangements and documenting responsibilities prove vital to business continuity. Companies that maintain up-to-date notes on roles and responsibilities build resilience within their organizations. In May 2025, Warren Buffett announced his intention to step down as CEO of Berkshire Hathaway by year-end. Greg Abel, who had been running the non-insurance businesses since 2018, succeeded him as chief executive on January 1, 2026.
Abel had been the designated successor since 2021, indicating his thorough preparation for the role. Bob Miles, who teaches a course on Berkshire Hathaway at the University of Nebraska-Omaha, noted that the handover did not merely change Abel's title but also enhanced his preparedness. The Berkshire Hathaway board had diligently ensured his preparedness.
However, the norm is not as favorable. In 2025, there were 446 CEO departures among listed American companies, a record since the firm began tracking such data in 2002. Many of these exits were characterized by frantic efforts to find temporary replacements. Stephanie Neal, who directs the Center for Analytics and Behavioral Research at DDI, discovered that only 20% of HR heads had a successor identified for critical positions, and half of key roles could not be filled internally.
Patti Williams, a Wharton vice dean, noted in a survey that while 86% of leaders regarded succession planning as crucial, 70% viewed long-term planning as pointless. Deloitte's survey of 300 family-run firms revealed that while 85% acknowledged the importance of succession, only 57% had a plan in place. Effective succession planning should not be limited to top executives but should extend to all levels of the organization.
Seat notes, which detail every task and responsibility, enable new employees to seamlessly assume their roles. Sid Sijbrandij, co-founder of GitLab, initiated this practice and encouraged others to follow suit. When Sijbrandij stepped down in December 2024 due to cancer, Bill Staples succeeded him without any issues. Seat notes, therefore, serve to preserve job roles rather than facilitate replacements.
They ensure continuity, which is increasingly important for clients who rely on uninterrupted project execution. Without proper seat notes, organizations may struggle to maintain operations during prolonged absences, leading clients to seek alternative providers.
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