This is the time of the year when I find myself doing the familiar rounds across South East Asia — finalizing strategic plans, engaging Boards in deep and often uncomfortable conversations, and assessing the performance and readiness of the next generation of leaders. These engagements are far from ceremonial.
They are critical moments of reflection, recalibration, and reaffirmation of purpose for families who are truly committed to continuity, relevance, and legacy.
Time is never on my side. I am in Taipei now, yet I must be back in Manila on Nov. 29, a Saturday, to deliver the final end-year Masterclass, capped by a fireside chat with next generation leader Lisset Laus Velasco, chair and chief executive officer of the Laus Group. Lisset and I will exchange thoughts on the pivotal role of governance in preserving both enterprise value and family harmony.
I remain deeply grateful for the overwhelming turnout and sincere engagement from families who attended the Iloilo and Cebu Masterclass events this month. I extend special thanks to Franco Soberano, chief operating officer of Cebu Landmasters, for thoughtfully addressing questions from founders and next-generation members alike. What stood out was not just attendance, but courage — families choosing to confront uncomfortable truths in pursuit of long-term sustainability and relevance.
What continues to inspire me is the growing realization that governance is no longer optional for family enterprises. It is no longer a document kept in a drawer or a once-a-year discussion during a family retreat. Governance must become part of a family’s DNA — a disciplined way of thinking, behaving, deciding, and holding one another accountable. As we look toward the increasingly complex challenges that will define 2026 and beyond, families must anchor themselves in clarity, structure, and principled accountability.
Case: From privilege and entitlement
to performance
In one mid-sized, multi-generational family business operating across several Southeast Asian countries, the eldest son of the second generation was being groomed for a major leadership role. Intelligent and well-educated, he nevertheless exhibited troubling patterns — arriving late to management meetings, delegating without follow-through, and responding defensively to constructive feedback. The patriarch, guided by love and a desire to protect, continued to shield him from the consequences of these behaviors, inadvertently reinforcing complacency.
The turning point came with the implementation of a formal governance framework, including quarterly Board performance reviews and a Next Generation Development Scorecard. For the first time, expectations were documented, measurable, and non-negotiable.
The young leader received structured feedback not only from family, but also from independent Board directors and senior management. KPIs were clearly defined, timelines strictly enforced, and accountability embedded into every reporting cycle. He was required to personally present his performance to the Board, transparently acknowledging both wins and shortfalls.
Resistance was inevitable at first. Yet over time, something profound occurred. The constancy of monitoring became a mirror he could no longer ignore. He began preparing diligently for meetings, sought mentorship without prompting, and instituted a weekly self-review discipline. Within a year, his performance markedly improved — but more importantly, his mindset shifted. The question changed from “What am I entitled to?” to “How can I contribute more effectively to the organization I will one day steward?”
The family witnessed a visible evolution. Accountability replaced complacency. Privilege gave way to purpose. Ownership matured into stewardship.
As families prepare for the uncertainties that 2026 may bring, governance becomes the stabilizing compass aligning performance with purpose and ambition with responsibility. The next generation inherits not just power but a mandate to steward, protect, and elevate the legacy entrusted to them. True continuity demands discipline, courage, and moral clarity in their decisions consistently.