Entrepreneurship and Family Succession
By Prof. Enrique M. Soriano
“Without respect, there is no love. Without trust, there’s no reason to continue.”
This is a powerful quote from Paul Chucks that must resonate to all family members torn by strife and conflict.
For the past six years after its founder Richard’s passing, the “A” family typically gathers for their mid-year family and business council meeting every third Sunday of the sixth month. The family calls it Code 36 representing the third Sunday of the sixth month. It is an event combining family and business performance review with a segment on ownership alignment. I normally add flavor by injecting governance, strategy and growth during the session.
This activity is separate from their regular family and business council meetings. In the Family Constitution that my advisory firm, Wong Advisory drafted six years ago, the members of the Family Council must meet for a total of 20 hours a year spread over five to six meetings while the Business Council members are required to meet every month.
My firm added Code 36 together with the other governance councils before the founder passed away primarily because the family and the business almost fell apart due to major conflicts on many areas (entitlement, in law participation, decision making, power struggle, conflict of interest). The infighting was so intense that it grounded the business to a halt for several years and caused so much heartbreak for the founder.
In this year’s forthcoming gathering, a total number of 23 members of the second and third generation are expected to attend. Their age ranges from 61 to 15 coming from the founder’s five children and their families. Those below 15 years old can join but are not obligated to be in the function room.
Relevant topics are sorted months before but the objectives are four fold:
- Evaluate the state of family and the business
- Review mid-year performances of the operating units
- Develop long-term goals for the business
- Evaluate policies to govern family- business relationships
The overarching core messages remain the same and revolve on five powerful values handpicked by the founder himself: Communication + Respect + Trust +Unity = Growth
Just like the last gathering in December, the meeting usually starts with the clan’s Gen 2 anointed leader reiterating the family’s shared vision and values and a story about the growth of the business since its humble beginnings in the 1960’s.
The objective is to remind the younger generation and the extended family members how their grandfather Richard and his wife jointly founded the business through hard work and honest dealings with customers and suppliers. Then a short seven-minute video of the family history will be played. The emotional video instantaneously reconnects the deceased founder to all the members of the two generations and reminds everyone that through regular and open lines of communication, the family enterprise can overcome temporary setbacks.
After the talk, a Gen 3 member usually in charge of finance will report how the business performed over the last quarters and the outlook for the succeeding quarters.
Then the legal counsel, a non-family professional will then provide a quick review of the ownership structure by way of educating newly inducted family members on the importance of stewardship as well as shareholder qualifications and responsibilities. Recently employed family members are those who were invited, signed the constitution and are now full-fledged family assembly members.
To be continued…
(Prof. Enrique Soriano is a World Bank/IFC Governance Consultant and an International Family Business Coach, National Agora Awardee for Marketing Excellence, Book Author of two best-selling Business books and Executive Director of ASEAN-based Consulting group, W+B Strategic Advisory. He is also a Professor of Real Estate, former Chair of the Marketing Cluster at the ATENEO Graduate School of Business and a senior fellow at the IPMI Indonesia International Business School.)
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My 3-year Philippine Bar exam journey
By Camille Villasin
Bar 2014. I was overconfident. I knew I was going to pass the Bar exams.
I did not.
I wailed but I didn’t give myself enough time to grieve. I was too proud as I knew that I was smart and intelligent as what has been ingrained in my brain for being a graduate of the Philippine Science High School, Ateneo de Manila University, and San Beda Law. I also know that I wrote and spoke English well.
Preparing for the 2015 Bar exams, I resigned from my underbar associate job and studied a week after finding out that I failed. I got my hands on everything I had not read in the previous year’s bar review, thinking that I only lacked the ammunition.
I blamed the 2010 Bar exam blast for making me one of its victims – how it derailed my law school curriculum and how, because of it, my foundation was shaky. In short, I tried to blame everything but my flawed strategy.
I went home to my province and lived a life in isolation from my law school batchmates. I studied 8 to 13 hours every day and I did not seek and receive help constructively. I punished myself and gave up the comforts (hot shower, makeup, TV, internet, iPhone) that I felt took away time meant for studying.
I only came back to Manila a month before the November 2015 Bar. I did not feel confident and, definitely, I was not emotionally stable. Deferring crossed my mind but my pride would never allow me to take that route.
Second take
During the 2015 Bar exams, I didn’t finish the test on Political Law. That was 3 blank pages on my exam booklet.
I also came out of Remedial Law and Ethics knowing for sure that it was not my time yet. I broke down in the Abbey completely resigned, unapologetically wiping my tear-stained face with my San Beda Law hoodie.
The rest of the exam month was a blur. I just knew that I was exhausted, thin, and extremely underweight.
Waiting for the 2015 Bar exams results, I went home to my province a few days after the exams. I was devoid of any desire to look for work. I slept at 3 am every day, binge-watching anything and everything on YouTube and always waking up at noon.
I only felt a little better when we went out of the country in February that year and after I got a little distracted from the hospitalization of my 96 year-old grandmother the following month. Somehow, I also felt useful again after I was consumed by my election tasks and maid of honor duties.
On May 3, 2016, I failed the Bar for the second time.
I cried the whole day.
Third take
I started preparing for the 2016 Bar exams. On May 9, 2016, both my siblings won the local elections. A few days later, on May 13, my grandmother passed on. Her burial was scheduled on May 21. My cousin’s destination wedding happened on May 26.
In between all this, I didn’t lift a single page. Instead, I took a step back, assessing and reassessing my strategy and what I needed to change. I reflected on my study habits, my attitude, my disposition, and the way I presented my answers.
I focused on my mindset. I decided to totally and completely surrender to a system that I thought would help me through. I researched on personalities who failed but tried again and succeeded on their next tries: Jack Ma, Elon Musk, etc. I imbibed the “don’t give up on the goal, change the strategy” mindset. I enrolled in Jurists Classic and Online but did not start studying on my own until the 2nd week of June.
I looked into my strategy. I thought that maybe I was too verbose or that I did not write the keywords. I submitted to the mentoring system. Buying new codals were my ceremonial start-refresh button. I studied smart, not hard. I took the Commercial Law Mock Bar without having read anything. For the first time since I started law school, I had my way of answering exam questions scrutinized by a person other than myself. During this time, I was still looking for my confidence to return.
Finally, I tried not to pressure myself as much as before. I took advantage of my good days while I did not study on my bad days. I went to an out-of-town birthday party. I drank tequila. I had my nails done. I did not feel sorry for doing these things that would feed my soul, albeit superficially. I prayed every day. I prayed a lot but I did not badger Him. “God, I want this but Your will be done.”
I studied and I made sure I enjoyed doing it. I felt much lighter, open, and ready to take in any blessing. I let go and blamed no one for my fate, even myself.
When the 2016 Bar exams happen, it did not automatically sink in that I was taking the exam again on my third try.
I cried many times – hours before taking the political law test, after taking the test on tax, and after taking the test on remedial law.
I started crying because I was scared that it could be my last chance. I prayed the rosary during each 30-minute lull before every exam. Again, the feeling of self-doubt creeped in. I asked God: “If my efforts still aren’t enough, I’m sorry. Lord, magiging abogado pa ba ako (Will I ever become a lawyer)?”
Fast forward to May 3, 2017. My name was on the list of successful examinees for the 2016 Bar exams.
Takeaways
We each have our own stories of failure. This is mine. I am not ashamed to say that I took the Bar exams 3 times because knowing and being reminded of this keeps me grounded.
While the process was daunting and arduous, I acknowledge that I needed to go through it to learn and re-learn not only the legal principles that would qualify me to become a lawyer but also the valuable life lessons that would help me become a better person.
To you who haven’t made it yet, don’t give up. Seek and welcome help. There is no harm in acknowledging that you don’t know everything about the law, about life, and about decoding “Pass Philippine Bar Exams 101.”
Do not mind the stigma. Those who will judge you for not making it the first time or the second time are those who know nothing of the rigors of studying law.
In the end, it will not matter whether you made it on the first, second, third, fourth or fifth try. What will matter is what you will make out of that title when – not if – you get it. We, who have been there, will tirelessly remind you that you are worthy of that title. (Rappler.com)