Russell Reynolds Associates: CEO Succession in the Family-Controlled Firm

The influence of family-controlled firms has been increasing globally.  It is estimated that family businesses create 70- 90% of global GDP. In a recent article, Russell Reynolds Associates find several factors family-controlled companies must consider during the succession process.

One such scenario is that of the family-controlled firm that has decided to conduct an external search for a CEO or other senior executive. This hiring process may represent the first time a non-family CEO or C-suite executive takes the helm of the firm, a division or a function. Or it may be that family members relinquished managerial control decades ago but remain shareholders today. Family-controlled firms have an intricate history, dynamic culture and expectations which create added complexity to the senior executive hiring process.

Family-controlled firms also offer unique skills that should be utilized during the succession process. To do so, boards, family members, and other key decision makers, must approach succession with a critical mindset and process the strengths and needs of the company, assess the involvement of the family in the business, and the external and emotional environment in which the succession is taking place.

The full article is published on Russell Reynold Associates’ website. Read the full article.