Filipino family businesses face significant hurdles in succession planning, including poor communication, procrastination, and founder reluctance to embrace change, an expert said at a Rizal Commercial Banking Corporation (RCBC) event.
Professor Enrique Soriano, executive director of W+B Advisory Group, said these challenges, rooted in family dynamics and governance issues, continue to threaten the sustainability of many enterprises in the country, leaving their legacy and future at risk.
Soriano spoke at “Securing Your Legacy: Proven Strategies for Successful Business Succession,” an event that aims to equip high net-worth individuals and entrepreneurs with the tools to ensure a smooth transfer of leadership to the next generation.
A recognized expert in family business governance and succession planning, Soriano hopes to guide participants on crafting strategies that ensure business continuity, sustainability, and legacy building.
“It is all about the challenge of communication because families seldom talk. It’s time to talk about legacy. They would talk about business but only during office hours. Communication is the biggest challenge,” Soriano said.
“The second challenge is, they procrastinate. They set aside governance. And third, it’s the reluctance of the founder and leader to effect the change. The Emperor Mentality is still very present today. He should be the one to dictate where the business will go,” he said.
