The crucial decision is whether a family member or outsider would be the best choice to run your family business! 

Whichever type of CEO you ultimately choose, it’s a good idea to develop successor candidates who appreciate your culture, respect your strengths, and who are good at preserving key relationships. But they should also be able to move the organization away from activities and practices that are holding it back, toward those that can grow the assets of the company and revitalize it.

The Family Insider

Family Insiders are the traditional and preferred choices of successors in most family companies. They have the backing of the owners and bring to the job a deep understanding of the company. They understand how things get done in the company. Family Insiders often have difficulty changing the business model mainly because significant changes often require letting some loyal people go.

The Family Outsider

Family Outsiders who make good CEO candidates. These family members have the right values and they respect the strengths of the company but can be aggressive change agents.

The Non-Family Insider

These executives really understand the company’s internal systems and respect its culture. But Non-Family Insiders can have the same difficulty changing the company as Family Insiders.

The Non-Family Outsider

Non-Family Outsiders have the deep skills and experience needed to change and then grow the company while respecting the strengths and culture of the company. They have to get to know the family first! This is the only option that has never been involved with the family. 

Hermes: Hermès - Wikipedia