Running a Family Business the Gokongwei Way

Running a Family Business the Gokongwei Way

Under the sixth commandment of the family, Lance Gokongwei stressed that a family member must get the right compensation to ensure he can live a quality and independent life. Further more, the JG Summit top honcho said the pay of the family member must be based on merit and not on bloodline. The family member must also live up to expectation and set a standard to the other employees. They should also be subjected to the same standards of measuring performance of the non-relative employees. In my experiences, I have witnessed on how this system works. These family members performed well and have boosted their confidence. In their seventh rule, the Gokongwei clan pointed out that being employed in a family business is not a guarantee to lifetime employment. They have to work their butts out so to speak. I would like stress that positions will not be created just to accommodate a family member unless the situation warrants it. The family members must draft a policy that will dictate the participation in the enterprise. The code will contain succession rules, compensation, equity guidelines and other important details. A family member must not directly work under his parent, according to the eight rule of the Gokongwei family. It would either spoil or give the child a stricter treatment. I would advise the heir to receive lesser attention than the regular employees. Expect the management not to give you important treatment because they might be accused of nepotism. On your part, the challenge is for you to prove that you deserve to be in the position. Furthermore, Family Business Institute, Inc. president Wayne Rivers gave four suggestions...

ENSURING THE FAMILY BUSINESS LEGACY

To register or to reserve slots just fill out our Registration Form and email us at info@octopusbranding.net Date: June 14, 2016 Time: 10:00 AM to 4:00 PM Venue: Harolds Hotel, Gorordo Avenue Cor. Rosal St., Cebu City Seminar Details: Succession is one of the realities in business. It is always a challenge to choose the next in line.  Transmittal of knowledge is the most crucial because this will be a key to the sustainability of the business. Prof. Soriano will share his insights to the participants on how to pass the torch from one generation to the next. The seminar aims to prepare family business owners on how to ascertain the continuity of their businesses with great success. Prof. Soriano’s 2nd  book launching with similar title to that of the seminar “Ensuring The Family Business Legacy” follows after the seminar. Should you be interested to join, kindly fill-up the attached Registration Form and email us on or before June 7, 2016/Tues.  to reserve seat. Please book early as limited slots are...
ALI Unveils New Project In Vertis North

ALI Unveils New Project In Vertis North

After the success of Avida Towers Vita in Vertis North, real estate firm Avida Land recently launched the Avida Towers Sola in the 46-hectare Vertis North, inclusive of Trinoma. Avida Land is the developer for the medium market arm of Zobel de Ayala controlled property heavyweight Ayala Land Inc. Ayala Land lives up to a distinguished legacy. ALI traces its beginnings in 1834 under the leadership of Zobel and Ayala families In the 1940s. Ayala y Compania launched the the Ayala Master Plan, a 25-year urban development program for Makati. It introduced Forbes Park, the country’s first high-end subdivision in the 1950s. Later, it developed the first masteplanned community known as Makati business district. As they say, the rest is history. “Avida Towers Sola is gaining a lot of interest from different markets as a mid-affordable high-rise residence in Vertis North, and a last opportunity to gain an Avida residence in the district,” said Raquel Cruz, Avida Land Corporate Planning Group Head. This master-planned development of Ayala Land, Inc. will be the site of Avida Towers Sola, which has 31 residential storeys. Avida Towers Sola is adjacent to its predecessor but will offer units facing Vertis North Gardens. This two-hectare park is made of wide lawns and greenery and features sloped, terraced gardens for public events. Cruz said Avida Towers Sola will have world-class developments. For instance, she said the gardens will be at par with central parks and offer breathing space in the midst of the district. Furthermore, it will have an underground basement parking to ensure it will be a pedestrian-friendly and walkable district. Being accessible to...
Smooth Transition Process

Smooth Transition Process

Floris has a very good succession plan. Marketing Director Edward Bodenham, who was exposed to the business in his younger years, said family members who own the company are expected to run the business and will continue that way. As far as family members involved in buy back shares, Bodenham said definitely will not be involved in the affairs of the company. The division of labor is equally divided among family members. Christopher Marsh, cousin of John Bodenham and Floris ‘nose’ manages the Devon operation, the manufacturing site of the company. Marsh’s son, Tom, works as the sales director while Lucy is the retail mail order and website manager. Edward Bodenham, the marketing director and son of John, said each family member has a defined role in the business. Edward’s son, George, is possibly going to be groomed as the 10th generation member in the business. Furthermore, Edward said family members should be up and ready when they are needed to fill in the shoes in case there is a need Teaching the ropes of the business at a young age is a must for family members. Each member receives a training to become a perfumer. Interestingly, Floris does not follow the current fashion trends. Most of the formulations used today have been developed generations ago with few changes. John said it is quite important for Floris to remain true to the brand. At present, Floris is broadening its product offering to expand the client base and attract the millennial market. Furthermore, the Chairman John Bodenham noted the sustainability of Floris is anchored on the natural flower fragrances using the top essential oils. Maintaining the quality of service meticulous...
Starmalls To Boost Vista Land’s Expansion

Starmalls To Boost Vista Land’s Expansion

Villar-controlled Starmalls Inc. will play a key role in the expansion roadmap of Vista Land seeking to grow more than double its leasable office and mall space in the next two years. Financial services company COL Financial believes the mall business unit of former Senator Manuel B. Villar is on the right track. The firm projects its EBITDA (earnings before interest taxes depreciation and amortization) will post a compounded annual “growth rate of 14.15 percent and net income to grow an average of 10.4 percent annually.” In a recent article published in the Philippine Star, To further power the expansion, the report said Starmalls also expressed interest to provide some office spaces for the growing businss process outsourcing sector beside some its malls. “This year, Starmalls will add 350,615 square meters (sqm) of GFA, 220,000 of which area already open. They plan to add 135,000 sqm of GFA in 2017 and another 300,000 sqm of GFA in 2018, bringing total GFA to 1.3 million sqm by end of 2018,” the report noted. Furthermore, COL noted Starmalls would boost the growth of parent company Vista Land this year and the succeeding years. “Not only will its revenues grow faster than real estate sales but being a higher margin business, Starmalls will also accelerate the growth of EBITDA and net income. We forecast Starmall revenues to grow at a CAGR of 40.30 percent from P2.62 billion in fiscal year 2015 to P7.23 billion by full year 2018,” said COL. “This is a lot higher than our CAGR estimate of 4.5 percent for the real estate segment for the same period,” added COL. As part of its...