Succession Planning

Family businesses face a unique challenge when transitioning leadership to the next generation: whether to choose a family member or an outsider as the next CEO. This decision is influenced by a complex interplay of factors, including socioemotional wealth, company performance, and organizational slack. While non-family CEOs can bring fresh perspectives and new skills, family CEOs may be better positioned to preserve the family legacy. Ultimately, the best decision depends on the specific needs of the business and the family.