For a professional CEO to be successful in a family firm, they must understand the values of the family. Every family has its identity and in a family firm, that identity can be part of its intangible assets
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Family firms, especially established ones, often hinge on a story. History is a kind of intangible asset that is unique to these firms, like Hermès. When we buy an Hermès scarf, it’s not only the silk material and bold pattern that draw us in, we are also buying a story and a brand integrated into French culture. For family firms like Hermès, it’s important to have a family member in the top job because the name of the family is integral in story building.
Yet, for 14 years, Hermès had a professional CEO who wasn’t part of the family. In 2013, rather than continuing the professionalisation of the firm, the family chose Axel Dumas, a descendant of the Hermès line, to lead, reaching back to the family for leadership.
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