On Monday, May 12, 2025, over 68 million Filipinos participated in the midterm elections, a pivotal moment that underscored the profound responsibility of choosing leaders. Citizens were urged to vote wisely, selecting individuals based on merit, vision and integrity — not merely on popularity or lineage. This democratic exercise mirrors a critical decision faced by founders of family businesses: choosing the right successor.
In family enterprises, succession is not merely a familial concern; it’s a strategic business decision that determines the company’s longevity and legacy. The process demands objectivity, foresight and, often, the courage to look beyond bloodlines.
A founder’s dilemma: Bloodline vs. merit
Consider the case of a seasoned founder of a successful manufacturing firm in Southeast Asia. After nearly four decades of steering the company through economic upheavals and industry shifts, he faced the inevitable question of succession. His son, though involved in the business, lacked the experience and leadership qualities required to helm the enterprise. In one of our one-on-one sessions, the founder expressed his resolve:
“Succession isn’t a gamble — it’s the culmination of decades of dedication. I’ve weathered countless storms to build this enterprise, and the thought of jeopardizing it by appointing someone based solely on lineage is unthinkable. My children are my pride, but leadership must be earned, not inherited. After your assessment, if they’re still not ready, we should further accelerate and invest in their growth, mentor them and prepare them for the future. But today, the business demands the most qualified individual at the helm. Emotional decisions have no place here; I must act as a custodian of the company’s legacy, not just as a father.”
Preparing the next generation: The 3 C’s of stewardship
The founder emphasized that if and when his children are ready, they can be considered for leadership roles through a formal process involving the Family Council’s endorsement and a vote by the stockholders. To be eligible, his son and siblings must embody the Three C’s of becoming effective stewards:
Commitment: Demonstrating unwavering dedication to the company’s mission and values.
Competence: Acquiring the necessary skills and experience to lead effectively.
Character: Upholding integrity, ethical standards and a sense of responsibility towards all stakeholders. As one of the principal stockholders, the founder acknowledges that all decisions must prioritize the greater good, without exceptions.
Embracing this philosophy, he appointed a seasoned non-family executive as chief executive officer, entrusting the company’s future to proven expertise while committing to developing his son’s capabilities for potential future leadership. It is a three-year interim engagement while we are accelerating the Next-Generation Leadership and Management program that embeds a strategic approach to succession planning. As discussed in my previous article, the program is a deliberate and phased transition over the next three to five years where the children are trained and gradually empowered. The 37-year-old son and his siblings are currently being subjected to a rigorous leadership process that entails them making critical decisions covering all facets of the business operations.
The founder’s choice to prioritize the company’s welfare over familial expectations serves as a poignant reminder: leadership is a responsibility, not an entitlement. Whether in business or governance, the stakes are too high for decisions to be made based on sentiment rather than suitability.
Legacy through life-changing choices
Succession, like voting, is about securing a future that honors the past while embracing progress. By selecting leaders — be they CEOs or public officials — based on qualifications and vision, we uphold the principles of stewardship and meritocracy.
As we reflect on the recent elections, let us consider the founder’s wisdom: the best decisions are those made with the head and the heart aligned, guided by a commitment to the greater good.