There are many myths about family businesses. One of the most common is that all family companies are led by a family member. In fact, many family-owned companies, including some of the worldâs most successful family firms, have non-family CEOs at the helm. Yet some peopleâeven those who are family business owners themselvesâfind it hard to fathom that this is a viable arrangement.
Professional outside management can improve business performance and family relationships. In November, I moderated a panel discussion entitled âSeparating Ownership from Managementâ at the Transitions West conference in Marina del Rey, Calif., presented by Family Business Magazine and Stetson Universityâs Family Enterprise Center. The three panelistsâJim Ethier, chairman of the board, Bush Brothers & Company; Michael Rucker, former chairman of the board, Geo. H. Rucker Realty Corp.; and Roger Muselman, chairman and director of DRGâdescribed how their businesses are flourishing under non-family leadership. Muselman, whose publishing and fulfillment enterprise was profiled in Family Business in 2007, said that he and his cousin, as owner/investors rather than owner/managers, focus on strategy rather than management.