For many family businesses, bringing in a non-family CEO is a significant—and often emotional—decision. It’s not just about hiring someone to lead the company; it’s about trusting an “outsider” with something deeply personal: your family’s legacy, values, and future. Done right, a non-family CEO can bring fresh thinking, unlock growth, and help take the business to the next level. Done without structure or clarity, it can lead to frustration, blurred lines, and a CEO who feels stuck between leading and pleasing.
This is where good governance comes in. It’s not about losing control or drowning in policies—it’s about creating clear boundaries, building trust, and making sure the CEO and the family are set up to succeed, together.
Drawing the Line: Boundaries That Work
One of the most common issues when a non-family CEO comes in is the lack of boundaries. It’s natural for family members to care deeply and want to be involved, but where does involvement turn into interference?
Without clear governance, the CEO might struggle to lead because family members—often with the best intentions—find themselves getting involved in day-to-day decisions. And let’s face it, when a CEO’s authority is undermined, even unintentionally, it makes it hard for them to do their job properly.
Governance sets the ground rules. It’s about clearly defining roles: what’s the CEO’s responsibility, what’s the board’s, and what’s the family’s? A family charter or constitution can help here—think of it as an agreed-upon playbook that sets out how the family interacts with the business.
For example: the board focuses on strategy, the CEO leads the operations, and the family council (or perhaps a shareholders’ meeting) handles family matters. Everyone knows their place, and everyone can focus on what they do best.
Letting the CEO Lead: Reducing Interference
Let’s be honest—when you’ve built a business, it’s hard to step back. I know. I’ve been there. You’ve likely poured years of your life into it, and the idea of someone else steering the ship can be unsettling. But if you’ve taken the step to bring in a non-family CEO, it’s vital to let them lead.
Good governance creates the right kind of oversight without overstepping. This is where having an independent board becomes invaluable. Non-family directors can act as a buffer, ensuring the CEO has the space they need to lead while still being held accountable.
It also reduces the risk of informal “corridor conversations” where decisions might get pulled in different directions. Instead, there’s structure: the CEO reports to the board, not to individual family members. Feedback becomes formal, objective, and constructive.
It might sound rigid, but it’s not—it’s freeing. For both sides.
Making Decisions That Stick
Without a governance structure, decision-making can get messy. Maybe there’s a lack of clarity about who decides what. Maybe decisions get slowed down by conflicting opinions. Or maybe they’re made too quickly, without enough input or planning.
Strong governance puts a framework in place for decisions. This doesn’t mean things grind to a halt. Quite the opposite. It means decisions are timely, fair, and well thought through—because they’ve been made by the right people, with the right information, at the right time.
For example, formal board meetings (with agendas, minutes, and follow-ups) create space for the CEO to present plans, strategies, or challenges and for the board to provide guidance and approval. It also gives family owners the reassurance that things are on track, without the need to constantly check in.
Preserving the Family Legacy
When you’ve spent generations building something, your family’s values and legacy matter. The fear of “losing that” is often what makes families hesitate about bringing in an outsider. But governance is the bridge that connects the family’s past to its future.
A good non-family CEO doesn’t replace the family’s role—they build on it.
Governance ensures they have a clear understanding of the family’s values and long-term vision, so those principles guide the decisions they make.
At the same time, it allows for growth. It gives the CEO the freedom to innovate, explore new opportunities, and take the business forward while still respecting the culture and ethos that make the business unique
Setting Everyone Up for Success
Bringing in a non-family CEO can feel like a leap, but it’s often exactly what a family business needs to grow and thrive. The key is making sure both sides—the family and the CEO—are set up for success.
That’s what governance does. It’s not about control; it’s about clarity. It helps everyone understand their roles, builds trust, and creates the conditions for strong leadership and confident decision-making.
So, where do you start?
Set clear boundaries: Define who does what—family, CEO, board—and put it in writing.
Bring in independent voices: Consider independent, non-executive directors to help provide balance and perspective.
Formalise decision-making: Establish processes for how decisions are made and who makes them.
Focus on values and vision: Align the CEO with the family’s principles, ensuring legacy and progress go hand in hand.
Final Thoughts
Good governance isn’t a box-ticking exercise. It’s about creating structure, trust, and clarity so that your business—and your family—can thrive. A non-family CEO can be a catalyst for growth, but only if they’re given the space and support to lead.
The most successful family businesses are the ones that embrace governance as a tool—not to take control away, but to ensure control is used wisely. It allows the CEO to lead, the family to step back with confidence, and the business to move forward with purpose.
Ultimately, governance need not be frightening. Often, it’s reassuring.
About the Author: David Twiddle is Managing Partner of TWYD & CO. He advises business families on the appointment of non-family executives and on the complex and sensitive people challenges often encountered in family enterprises.