The first time a family business hires an executive from outside the family, the stakes could not be higher. Get it right, and you secure the future. Get it wrong, and trust can fracture overnight.
I once worked with a third-generation family business in transport and distribution. They were adamant their new Finance Director must come from their industry. But when we pressed them on why, they struggled to explain. In the end, they hired someone from manufacturing who coincidentally had grown up in a family haulage firm. She understood the dynamics, fitted the culture, and is now thriving. What mattered most was not the sector on his CV, but how she connected with the family.
This is the reality of hiring a non-family executive. It is not just filling a role. It is reshaping the way the family leads, governs, and relates to the business.
Why it matters
Bringing in a non-family leader is different from corporate hiring. In a family business, the appointment sits at the crossroads of performance and relationships. The new executive must deliver results while also respecting a history shaped by values, personalities, and legacy.
Families sometimes underestimate just how significant this decision is. It is not a routine hire. It is a choice that will shape the direction of the business for the next decade or more.
The common pitfalls
It is no surprise that many first attempts at this fail. The reasons are familiar:
- Too much focus on CVs. Families think sector experience is everything. In reality, chemistry, behaviour, and trust matter more.
- No agreement at the top. If the family have not aligned on what the role is for, the new leader is left with mixed messages and shifting priorities.
- Family politics in the shadows. Succession, ownership, and influence often sit behind the hiring decision. If they are not surfaced, they will derail the process.
- Weak integration. Even the best candidate will struggle without clarity on how decisions are made, who they report to, and how they balance business and family interests.
Doing it differently
The families who succeed take a different path. They begin by asking themselves tough questions before they meet a single candidate:
- What do we want this person to achieve?
- How will they work alongside the family?
- Which values and behaviours are non-negotiable?
That alignment gives the process clarity and shows candidates that the family speaks with one voice.
They also look beyond industry experience. The right person is someone who can respect the heritage, build trust, and still make the changes needed to move forward. That blend is rare, but it is what matters.
Finally, they plan the first year with care. The early months are where trust is either built or broken. Structured support, regular feedback, and clear communication are what help a leader thrive rather than leave disillusioned.
A wider view
The right non-family executive is not just a safe pair of hands. They can act as a bridge between generations, steadying the business while the rising generation find their place. They can professionalise governance, open doors to new markets, and give the family confidence that the enterprise is in capable hands.
In many ways, the appointment is not just about today. It is about creating continuity for tomorrow.
The payoff
When families take this seriously, the rewards are clear. A successful non-family hire strengthens both the business and the family. It reassures stakeholders, brings new capability, and creates confidence for the next stage of growth.
Above all, it allows the family to remain true to itself while bringing in fresh energy and expertise.
A final thought
Families sometimes say: “It is just another hire.” It is not. It is one of the most important leadership moments they will ever face.
The right non-family leader does not replace the family. They protect it – by helping the business it built remain strong for the next generation.
Five Tips for Families Hiring a Non-Family Executive
- Align first. Make sure the family agree on what the role is really for.
- Define success. Be clear on what the new leader needs to achieve.
- Look beyond CVs. Sector knowledge is useful, but chemistry and values matter more.
- Plan integration. The first 12 months will shape the relationship.
- Keep talking. Create open channels between the family and the executive from day one.
About the Author
David Twiddle is the Founder and Managing Partner of TWYD & Co, a boutique leadership advisory and executive search firm working exclusively with family enterprises. Drawing on his own multi-generational family business background and over three decades in executive search and leadership consulting, David helps families address some of their most important leadership moments – from senior appointments to succession and board effectiveness.