The National Retail Conference and Expo (NRCE) 2024, organized by the Philippine Retail Association (PRA), kicked off its second day with a highly engaging ‘fireside chat’ that featured SM Prime Holdings Chairman of the Executive Committee Hans Sy and his son, SM Engineering Design and Development President Hans “Chico” Sy Jr. The two spoke informally about succession, and about carrying on a vision and legacy as set by SM founder Henry Sy Sr. Anecdotal, humorous, and insightful; the two speakers captivated the audience.
How anecdotal, humorous, and light? Well, the first thing Mr. Hans mentioned was how Friday was his regular golf day, but he had given that up in order to make it to the NRCE event. And he proceeded to mention the recurring theme of how the Sy family operates on the principle of “we are never forced, but we have no choice!” And with that contradiction in terms, amidst much laughter from the audience, insight into how the Sy family deals with succession could be understood.
Mr. Hans recounted working at the age of 13, and not the traditional ‘after college’. It was a family custom, and one the children would get excited about, ‘being able to help dad’. His first job at 13? Throwing the garbage out and assisting the cash clerk – and for that, he had gotten all dressed up on his first day. And Mr. Hans was quick to point out that elder sister Tessie was then the cashier. It was all about working from the ground up and understanding the operations, and experiencing what the rank and file go through on a daily basis. That was how Mr. Henry Sy wanted his children to appreciate the business.
Chico Sy then chimed in, saying that as a grandfather, Mr. Henry Sy would show more of his human and soft side. As a third-generation member, he did recall being exposed to the business at an early age, like walking through SM City North EDSA when it was still a construction site. And Chico joked about how that was a truly different time, as you can’t bring children to a job site nowadays.
Mr. Hans then spoke of the value of leading by example, something that was instilled into them from an early age by Mr. Henry Sy, also known as ‘Tatang’. And it’s one he has taken to heart himself. He remembers how Chico’s brother would think family dinner at 10 PM is a regular thing in most households, as that was the time Mr. Hans would get home from work. He frankly admitted he didn’t really have a life when he was working full time at SM. While he is still hands-on with National University (NU) and China Bank, he was honest to say that letting go and turning over responsibilities at SM Prime has been rewarding, giving him more time for himself.
Chico recalled Tatang’s reminder that behind every success is a person, and it was important to understand that person. Chico accepted that as market leader, and working under the umbrella of a massive vision and legacy, one has a unique set of challenges. What he remembers is how Tatang always said that the key is to stay focused, to stay hungry, and to stay humble. As market leader, you’re creating your own benchmark, and one has to challenge oneself every day.
To the mantra of focused, hungry, and humble, Mr. Hans then spoke of ‘malasakit,’ or being mindful of others. He mentioned how this was an added dimension by which one conducts business at all times. Resilient, innovative, and compassionate were the rules to also live by and embed in the company’s DNA. He reminded the audience that it should never just be about profit, of being the best, or dominating the market.
Mr. Hans recalled how all of his generation studied here in the Philippines; and how with the first grandchild, it was him who pushed for Chico to study abroad, convincing Tatang that Chico would learn more and could apply it here. Chico then revealed how his grandfather took him aside and reminded him that as the first to be sent to Melbourne, Australia, he better do well and prove the ‘experiment’ was worthwhile, or all the other grandchildren would never leave. Chico laughed remembering the weight on his shoulders from that one-on-one conversation. And he smiled saying that all the other grandchildren have since gone on to study abroad as well.
Mr. Hans then got nostalgic, recalling how so much of his time was spent with his father and loving how Tatang was so eager to spoil the grandchildren, easing up and lavishing so much love on this third generation. Misty-eyed, the two generations of Sys spoke of shared values playing an essential role in making succession effective and rewarding.
Much food for thought from this discussion, and the learning that so much about worthy succession has as much to do with things of the heart as it does with bottom lines and expansion targets.
