I recently attended a breakfast meeting at Northeastern University’s Center for Family Business on “Bringing Non-Family Executives Into The Family Business” presented by Harry Fraser. I found this to be interesting and topical as several of our clients currently have non-family members in C-level positions in their organizations.
Here are some of the key points that were made during the session:
- When first starting in the company non-family executives should:
- Learn the business
- Build relationships through the company
- Gain credibility and build respect
- Owners need to look at the needs of the business and determine what is best for the business with respect to who should lead it
- Ideally a non-family executive would have prior experience in a family business so as to better understand the unique dynamics that come with working in a family business
- The non-family executive brings strong work experience different from current family members in the business – fill a gap not currently available with working family members
- Shared values between the non-family executive, the business and the family
- The non-family executive bridges the gap between generations in the family
- Next generation may not be ready to lead
- Fill a business need that a current family member is unable
- Help the next generation prepare to the run the business
- Board experience is a critical success factor for non-family executives
- Check your ego at the door
- The non-family executive will never be the face of the company – that is the owners responsibility
- The need to balance family and business expectations
- All family members other than owners should report to the non-family CEO
- Understand the issues facing the family
- Instill in the management team the importance of supporting decisions that you may not agree with – carry the corporate flag
Do you have other helpful hints? Please share in the comments below.
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