Producing Powerful Results through Family Business Strategies
The
John Gokongwei School of Management (JGSOM) through the invitation of the
Pampanga Chamber of Commerce & Industry, Inc. (PAMCHAM) successfully
hosted the 8th Family Business Breakfast Business Roundtable Discussion
entitled How Family Business Strategize at the Hotel Gracelane, San
Fernando, Pampanga last March 15. It was the first time that the
roundtable discussion was held outside Metro Manila.
Mr. Ricardo Mercado, Chair – Department of Leadership and Strategy delivered a presentation on strategic management in family Business. Mr. Rudy Ang, Dean - JGSOM gave the opening remarks. They were warmly welcomed by Mr. Levy Laus, Mr. Rene Romero, and Ms. Teresa David-Carlos, President, Vice-President and Chairman - Seminars & Training Committee of PAMCHAM, respectively.
Strategizing
in Family Business
"Responsible and disciplined strategic integration of business and family goals, strength, and values produces powerful results," Mr. Mercado said as he opened the discussion proper. He further elaborated on his point by presenting the typical family business strategic path vis-à-vis business challenges and ideal responses. "As changing times require new approaches to business, leaders must become champions -- not challengers -- of change," he continued as he emphasized the need to reframe assumptions about business planning because the process forces owners and managers to keep their fingers on the pulse of their family, business, industry, and the world.
The
ability of family business owners and managers to inspire an effective
mission and motivation requires several traits and skills, which include:
a) the self-confidence to be willing to assert one's personal agenda; b)
honest self-awareness that enables one to feel confident in one's
judgments and convictions; c) sensitivity to others and their responses;
d) the ability to integrate individuals' goals and visions into a group
mission; and e) an understanding of how to overcome resistance to change.
In addition, Mr. Mercado enumerated some keys to strategic renewal in terms of what to preserve or modify in response to business changes and challenges. Those that must be preserved no matter what include business values and ideology, family legacy and commitment, development and advancement of employees, quality, and service. On the other hand, those that must be modified are the following: business strategy, business structure, infusion of new, outside managers and directors, technology, and policies and procedures. "Patience can be a terrific advantage, or it can destroy a business that is so patient it fails to respond to opportunities or threats," he added.
In
response to a query on the causes of disagreements among family members,
Mr. Mercado said, "Most family business disagreements are not based on
fact and money, but on emotions and control." He said that the
technically correct solution isn't always the emotionally appropriate
solution. He ended his presentation by highlighting three success
contributors, namely: family council, professionalizing, and succession
plan. An open forum followed afterwards.
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The
Family Business Breakfast Roundtable is a series of sessions organized by
the Leadership and Strategy Department headed by Mr. Ricardo H. Mercado of
the John Gokongwei School of Management. For information on upcoming
sessions, you may call 426-6076 or 426-6001 local 5521.