The Sunni believe the caliph should always be elected, not conferred by heredity. The Shiite created the office of the "Imam" or leader/guide.
In the history of Islam, both the Sunni and the Shiites have different points of view regarding how a caliph (the spiritual leader) should be elected. On the one hand, Sunnis believe that the caliph must be elected. On the other hand, Shiites state that a caliph must be appointed by hereditary.