Bringing in an outsider to the management of a family business is one way of strengthening the management team and is particularly helpful in bridging the transition gap between the founder of the business and the next generation. The outsider can act as the coach and mentor and assist in the development of other members of the management team, both family and non-family.
However, bringing in outside management needs to be correctly handled otherwise it can cause a disaster in a family business. This paper sets out, in three pages, some of the strategies relating to bringing in outside management to a family business, including comments on:
- Don't Promote Someone Merely Because They Are Family
- Give Outside Management Some Space
- Principal's Involvement - Other Than Day To Day
- Job Description - Defining Limits
- Handled Incorrectly - It Could Be A Disaster
- Checklist Of Matters To Consider In Employing Outside Management
