Next gen

The Philippine business community is starting to change as top business tycoons slowly introduce and ease into their conglomerates the next generation.

This transition was started by Andrew Tan, who efficiently passed on the baton to son Kevin, who has taken over as CEO of the Alliance Global empire that comprises Megaworld, Empire East and Resorts World, among others.

Kevin hit the ground running and has also now shown his political savvy by being among the top tycoons closely helping President Marcos shape the country’s economic landscape.

A more low key transition occurred in the empire of Lucio Tan following the unexpected death of his son Lucio “Bong” Tan Jr., with the  assumption of Lucio “Han” Tan III of management duties in running the Tan family’s real estate, airline, banking and manufacturing businesses.

The young LT III, however, is keeping a very low profile while he learns the ropes of the vast Tan holdings, along with his brother Kyle, and  with the guidance of his uncle Michael, and senior executives and family members of the Tan family.

The Ayala clan has always had an efficient succession plan in place. Jaime Augusto Zobel de Ayala, or JAZA, spectacularly took over from Don Jaime Zobel, expanding the Ayala real estate and retail empire while Globe Telecom has now become a telco giant in the country.

Younger brother Fernando had been ably helping JAZA and had already taken over when JAZA retired, but a sudden medical emergency abruptly disrupted the well-oiled conglomerate, even though JAZA’s daughter, Mariana, was already in the loop in managing their retail and commercial real estate holdings.

Following Fernando’s medical emergency, the Ayala Group tapped retired Bank of the Philippine Islands president Bong Consing to lead Ayala Corp. while giving more time to JAZA’s eldest son, Jaime Alfonso, gain more experience in leading various Ayala subsidiaries, the latest of which is as head of AC Motors.

Another Ayala scion, the son of Bea Zobel Jr., has also stepped into the succession train, after being named as the chief sustainability officer of Ayala Corp.

Older generation

The children of taipans Henry Sy, John Gokongwei and George Ty continue to make their fathers proud in ably growing their conglomerates, helping power the Philippine economy and contributing to various charities, and educational and medical facilities.

The Gokongweis, Sys and Tys, similar to the Zobel de Ayalas, have institutionalized their families’ business success, which now span various other ventures not only in the Philippines, but in other countries as well.

However, the older generation of the Gokongweis, Sys and Tys continue to manage most of the businesses even as they slowly train their growing clan to one day takeover what their fathers had grown from scratch.

The Gotianuns have also started to introduce the next generation. Isabelle Gotianun Yap, a third-generation steward of the Filinvest conglomerate and now an executive director at EastWest Bank, recently offered a glimpse into the workings of this intricate world. Her insights, shared at a recent workshop, shed light on the key elements that contribute to the triumph of family-run enterprises and showcased her deep understanding of the delicate balance required in managing family businesses  at the “The Significance of Governance and Family Engagement in Running a Business” workshop, hosted by the Ateneo Family Business Development Center and supported by EastWest Priority.

The Gotianun family’s journey is a testament to the power of unity, trust, and unwavering commitment within family businesses. As they weave the threads of tradition and innovation, their story demonstrates that, with dedication and a clear vision, family legacies can not only endure, but also thrive across generations. It serves as an inspiring example for all those navigating the intricate terrain of family-owned enterprises.

Family businesses, where tradition meets innovation, occupy a unique and challenging space in the corporate landscape. Beyond privately held family corporations, Philippine publicly listed companies and conglomerates are largely founded and significantly owned by families.

Isabelle’s life lessons

In her talk, Isabelle reminisced about her childhood, where summer vacations weren’t just about leisure, but were also valuable life lessons. Her grandparents, Andrew and Mercedes Gotianun, the visionary founders of Filinvest, ensured that those trips involved everyone, from grandparents to grandchildren, working together on activities and chores. Those experiences fostered trust and enduring relationships, creating bonds that proved invaluable in both personal and professional settings.

One of the cornerstones of the Gotianun family’s success is their commitment to ensuring that every family member understands not just the specifics of their family business, but also broader business principles. Education and business exposure serve as a critical foundation. Isabelle’s personal journey include undergraduate years at the Ateneo and Singapore Management University followed by an MBA at the Harvard Business School.  A  stint as a management trainee at Singapore Telecom and consultant at McKinsey & Co.  allowed her to experience best practices in the region and round up her formative business years.

Isabelle emphasized the importance of periodic family conferences they plan, occurring every couple of years. The conferences serve as forums for discussing essential business matters, sharing family history, and revisiting the family constitution. The conferences also serve as another venue for teambuilding and family bonding all the way up to the fourth generation.

Hands-on experience forms an integral part of the Gotianun family’s approach to business education. Isabelle recalled her and her cousins’ experience rolling up their sleeves and engaging in various aspects of the business from a young age. They served as food court busboys and managed cinema booths during summer vacations. Those seemingly mundane tasks instilled in them a deep appreciation for the hard work and effort needed to sustain and grow a family business.

Now working in the business, Isabelle stressed the importance of ongoing professional development and leadership. The Gotianun heirs facilitate their personal growth and enhance their capacity to serve their businesses effectively through coaching and mentoring. Her advice to aspiring leaders within family businesses is to actively chart their career path. By doing so, they avoid getting “stuck in the weeds”, even while receiving guidance from mentors and parents who may have limited time for comprehensive career planning.