Leadership Lounge: How to Build Trust as an Outside CEO in a Family Enterprise

Stepping into a family enterprise as an outside CEO is unlike taking the helm of almost any other organization. You’re stepping into a business shaped by generations of history, deeply held values, and personal relationships.That means trust cannot be assumed. Outside CEOs need to understand what matters to the family, build relationships across the enterprise, and recognize that even seemingly small decisions can carry significant weight.So, how can outside CEOs earn the trust they need to lead effectively, while respecting the legacy they have been entrusted to protect?In this episode of Leadership Lounge, Emma Combe is joined by leadership advisors Hugo Healing and Burak Gorbon to explore what it takes to succeed as an outside CEO in a family enterprise.They discuss:What makes leading a family enterprise different from other CEO rolesHow outside CEOs can establish credibility and build relationships with family stakeholdersHow to navigate the expectations and complexities that come with leading a family-owned enterpriseHow to balance the need for transformation with respect for the family’s legacy“You're a custodian of something that's very personal to people.”— Hugo HealingLeadership Advisor, Russell ReynoldsFour things you’ll learn from this episode:Trust must be earned: The CEO title provides authority, but family stakeholders still need to develop confidence in the person behind it.Preparation starts before day one: Learning the family’s history, relationships, values, and expectations gives outside CEOs a stronger foundation for success.Small actions send big signals: Seemingly routine decisions can take on greater significance when they appear inconsistent with the family’s values.Transformation needs shared ownership: Involving family stakeholders and recognizing their contribution can help position change as evolution rather than rejection of the past.In this episode, we discuss:(00:05:32) Why modifying a company car caused one outside CEO to lose the family’s trust just three months into the role(00:08:42) How one incoming CEO started building relationships before day one—including going sailing with a family member(00:07:09) Why outside CEOs need to “read the book” of a family enterprise before trying to write its next chapter(00:09:58) What informal conversations can reveal about a family’s expectations that you may never uncover in the boardroom(00:12:50) Why a cost-cutting transformation can raise deeper questions about whether a CEO understands what the family stands for(00:11:05) Why becoming defensive when trust breaks down can make the problem worse—and what to do instead(00:12:50) How giving family members credit for what they have built can help an outside CEO create support for change