How to decide who are the right people for the highest-level positions in a FOB?

Before starting the course on Family Business, even though I was aware that longevity of FOBs is an exception to the rule, I have always thought that the challenges faced by these businesses were mainly going back to the family itself. Now, of course, I know that the issues a family nusiness has to deal with have to be examined through the lenses of three different dimensions, which are all interlinked with each other: family, ownership and business.

The article I am posting focuses on family and ownership, highlighting the key factors that contribute to the longevity of the business: e.g. finding the right future leader from within or outside the family.

https://hbr.org/2015/04/leadership-lessons-from-great-family-businesses

In the literature there is a tendency to consider professional managers in family businesses as external managers who do not interact with the family management but they are rather mutually exclusive (Chittoor & Das, 2007). Even though it is well-known how complicated is to integrate professional managers in family businesses (often due to a mismatch between their wishes and those of the family), they are regarded to be of vital importance, in the long run, to keep the business stable, as they provide objective advice to the family (Hall & Nordqvist, 2008).

In order to have a greater impact and influence on the company, professional family business managers need to have not only formal competences but also cultural ones (Hall & Nordqvist, 2008). "Cultural competence refers to an understanding of the unique socio-cultural patterns originating from the family’s influence on the business.” (Hall & Nordqvist, 2008: 62) Gaining this cultural competence requires a continuous process of interaction and communication between professional managers and key members of the family so that they can share their respective values and goals.

My questions are: Is it all about technical competences when choosing the future leader for a FOB?

References

Chittoor, R., & Das, R. (2007). “Professionalization of management and succession performance— A vital linkage”, Family Business Review, 20(1), 65– 79.

Hall, A., & Nordqvist, M. (2008). “Professional Management in Family Businesses: Toward an Extended Understanding”, Family Business Review, 21, 1, pp. 51-69, Business Source Complete, EBSCOhost. (Accessed 18 April 2015).