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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