The Need for Family Governance Then
The Philippine business landscape is unquestionably dominated by family-owned businesses. Despite the humble connotation that average men try to pin on it, the truth is that family enterprises are a major force that largely contributes to the economic success of the country.
However, family-owned businesses are not without their own unique set of challenges. Found within these businesses are distinct and complex working relationships that produce certain weaknesses which cause permanent damage if left untreated. We’re talking about existing familial tension, arguments over roles, decision-making, compensation, and involvement of family members, and the different preferences of each generation in terms of leadership and strategy.
Even before this crisis appeared, family firms already faced great danger because they didn’t fully understand how governance is needed to set a unified vision for the company. Family Business Governance encourages proper communication within families so that effective protocols and rules can be implemented.
Previous conferences headed by Wong + Bernstein Advisory Group, an Asia Pacific-based Business Turnaround Advisory Firm, and Icon Executive Asia, an Executive Management Solutions Firm, have been attended by over 300 business owners coming from high net worth and prominent family-owned businesses because there is a palpable desire to create a united and resilient family that is committed and driven to see their business and legacy succeed.
The Need for Family Governance Now
In times of chaos, when family-owned businesses are faced with great economic uncertainties on top of the crushing burden to lead the business out of the fire, the need for Family Business Governance grows even stronger.
More often than not, we encounter families who consider and treat family governance as a side dish, a pesky bug if you may, that wants to take away all the attention and resources from what’s supposedly the main priority of the business which is generating revenues by way of involvement in operations.
However, it is in times of instability that governance is firmly required. Families must have certain structures and processes in place to help them govern themselves so that they can lead the business better. Governance can assist in engaging, empowering, and utilizing the different strengths and capabilities of each member so that the family, as a whole, can work together and allow their company to effectively endure whatever the future holds.
Remember, if the head is lost then the body will no longer work. It is important to realize that uniting the ownership will make the rest of the business turnaround work easier for everyone.
In the words of Prof. Eric Soriano, an ASEAN Family Business Governance Advisor, “alignment is vital— companies with a united ownership group can act decisively while a house divided will not stand.”
If our words inspired you to start or perhaps continue with the family governance process, we’d like to invite you and your family members to join us in the upcoming Family Business Governance conference entitled “The Power of Succession Planning: Blueprinting A 100-Year Old Journey” on August 29, 2020, Saturday, at 10 AM.
This conference will feature Prof. Eric Soriano and other top-tier speakers who will discuss the importance of family governance in all aspects of business and will impart important tools and compelling strategies that can help key leaders in this time of crisis.
Should you have any inquiries, you may reach W+B Advisory Group at 0945 342 4446 / 0917 324 7216 or send an email to [email protected].