Filipino family businesses face significant hurdles in succession planning, including poor communication, procrastination, and founder reluctance to embrace change, an expert said in a Rizal Commercial Banking Corporation (RCBC) event.
Professor Enrique Soriano, executive director of W+B Advisory Group, said these challenges, rooted in family dynamics and governance issues, continue to threaten the sustainability of many enterprises in the country, leaving their legacy and future at risk.
Soriano said during “Securing Your Legacy: Proven Strategies for Successful Business Succession”, an event that aims to equip high net-worth individuals and entrepreneurs with the tools to ensure a smooth transfer of leadership to the next generation.
A recognized expert in family business governance and succession planning, Soriano hopes to guide participants on crafting strategies that ensure business continuity, sustainability, and legacy building.
“It is all about the challenge of communication because families seldom talk. It’s time to talk about legacy. They would talk about business but only during office hours. Communication is the biggest challenge,” Soriano said.
“The second challenge is, they procrastinate. They set aside governance. And third, it’s the reluctance of the founder and leader to effect the change. The Emperor Mentality is still very present today. He should be the one to dictate where the business will go,” he added.
Soriano emphasized that in order to ensure legacy, business owners must learn how to lead the change.
“[The planning] must be set and the leader must be there to provide guidance. You can’t just say that my children will take care of it. It has to be the business leaders who will set the tone,” he further said.
Navigating Challenges
Banks with dedicated Wealth Management and Succession planning expertise bring a unique value to businesses undergoing transition in leadership and ownership.
Jacqueline Wieneke, Wealth Management Group head at RCBC, said that succession planning is not just about business. It’s about aligning family wealth, personal goals and legacy aspirations.
“RCBC Wealth prides itself on the longevity of client relationships that span multi-generations. This continuity allows the bank to have a deep understanding of each family’s unique dynamics and financial goals, ensuring that legacies can be smoothly passed on to heirs,” Wieneke added.
Partnering with a trusted bank with wealth management expertise like RCBC allows business owners to gain access to an ecosystem of financial solutions and resources that are critical for ensuring a smooth, efficient and lasting transition of leadership and wealth.
“We are committed to being a reliable partner for our clients throughout their financial journey, offering guidance and support as they navigate critical decisions that will impact their future,” Wieneke said.
“Hosting this seminar is just one of the many ways we ensure that our clients are equipped with the expert knowledge they need to successfully handle important milestones like business succession,” she added.
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