Exhausted and fatigued, I made my way to the airport for a long flight to New York. Before reaching New York, I had to make two important stops in Singapore and Frankfurt. My exhaustion seemed inconsequential compared to the overwhelming sense of gratitude and inspiration stemming from the remarkable success of the Family Business event in Manila on Saturday, Aug. 19, 2023. This event, with its exceptional achievements, serves as a powerful testament to the growing significance of family business governance, which has recently emerged from the shadows of its more widely recognized counterpart, corporate governance.
The event, characterized by an unexpected turnout of nearly 300 attendees, has solidified its position as one of the largest gatherings of family-owned businesses in this part of the globe. What’s even more impressive is that it surpassed the attendance figures of the last major pre-pandemic conference organized by the same team at ICON Executive Events in August 2019. The demand for tickets reached full capacity two weeks before the event, unfortunately leaving more than 30 families unable to participate due to space constraints.
This surge in interest and participation underscores the increasing recognition of the unique challenges and opportunities faced by family businesses. While corporate governance has long been in the spotlight, family business governance is now stepping into the forefront. Why is this shift happening, and what can we learn from it?
Family business governance reinforces corporate governance
Family businesses have historically been regarded as the underdogs in the world of corporate governance. Often overshadowed by the larger, publicly traded corporations, they operated quietly, keeping their successes and struggles within the family circle. However, the landscape is changing rapidly.
One reason for this shift is the changing perception of family businesses. They are no longer seen as quaint, small-scale enterprises but as dynamic and influential economic entities. Many well-known global brands, from Ford to Walmart to Samsung are family-controlled enterprises. These businesses contribute significantly to job creation and economic growth, making them vital players in today’s global economy.
Moreover, the Covid-19 pandemic has brought family businesses to the forefront. Their resilience and adaptability during challenging times became evident. While some publicly traded companies faltered, many family businesses demonstrated remarkable agility and commitment to their employees and communities.
The event, flawlessly executed by ICON Executive Events, featured an esteemed panel of resource speakers, including the renowned global thought leader, Dr. Josh Baron. Dr. Baron, a governance professor at Harvard Business School and co-founder of BanyanGlobal Family Business Advisors, a Boston-based consulting firm with a global footprint encompassing Asia, the Middle East and Latin America, shared priceless insights related to family conflict management.
During my time on stage, I had the privilege of engaging in discussions with two exceptional second-generation leaders who have become exemplars of stewardship and succession: Kevin Tan, the passionate 42-year-old group chief executive officer (CEO) of Alliance Global Inc., a major conglomerate with core businesses spanning real estate, hospitality, food, gaming and liquor. Remarkably, their liquor brand, Emperador, has consistently held the title of the world’s largest brandy by volume for years. The second speaker, Lance Gokongwei, aged 56, serves as the president and CEO of JG Summit Group, renowned as one of the country’s most diversified family businesses with interests in food, air transport, real estate, banking, retail and petrochemicals. Kevin and Lance’s profound insights provided participants with an inspiring glimpse into how these successors made substantial contributions to the businesses established by their founding fathers.
To be continued...
For those that missed the Aug. 19, 2023 face-to-face event, you can still participate and register for the September virtual event. W+B will launch its inaugural Webinar series titled, “Stewardship + Succession + Wealth = Legacy: A Family Guide to Building and Sustaining Your Wealth.” This is a comprehensive three-part webinar series to be held on Sept. 8, 12 and 16, from 9 a.m. to 12 p.m. Slots are limited; hence, we encourage you to secure your seat now. This investment will ultimately mark your journey towards safeguarding your family business for generations to come – a legacy poised to thrive for an entire century!