Appointing a non-family executive is often the last resort for many family businesses—but sometimes it’s the right move. The Next Gen may not be prepared to take over. Or they may not be interested in the family business at all. Whatever the reason, hiring non-family leadership has its challenges.
One such challenge is appointing a non-family executive who either doesn’t understand the family’s culture—or respect it. This can derail the entire operation. Another issue: balancing the non-family executive’s independence with family oversight. The executive may feel micromanaged, while the family may see the executive as power-hungry. Both can sow tension that can have catastrophic results.
Before you appoint a non-family executive to your family business, here are some best practices to consider.
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