RUNNING THE FAMILY BUSINESS PROFESSIONALLY

Running a family business presents particular challenges. A great part of this lies in the fact that the family business dynamics constantly blurr personal and professional lines.

“Formality is very important in family businesses. Assuming that one’s relatives would forever be supportive to the family business and consistently remain productive may not be a good way to set one’s frame of mind,” advises renowned ASEAN family business coach Prof. Enrique “Eric” Soriano III.

A successful family business is one that is managed in a professional manner. This is where the need for a family constitution comes in.

“Crafting a family constitution or a charter is one major step for every founder’s dream and aspiration of ensuring that his blood, sweat and tears (legacy) is cemented for generations to come. The objective, therefore, in any governance undertaking is to create harmony, unite family members and prepare very good family and ownership agreements,” says Soriano who is scheduled to hold the Manila-leg of his seminar “Family Constitution: Your Greatest Gift to the Next Generation” on August 5 at the Tower Club.

“A family constitution or charter is needed in order to run the business professionally and to unite and harmonize family members. It incorporates governance policies covering employment, compensation policy, a code of conduct, job description of working family members and a statement of vision and values. It serves as a road map to family businesses – where they’ve been, where they are, and where they’re going. It defines goals and values, recognizes dysfunctions, and supports your family’s relationships,” he adds.

To learn more about family constitution, join the “Family Constitution: Your Greatest Gift to the Next Generation” one-day seminar on August 5, 10a.m. to 5p.m., at the Barossa and Tuscany Rooms of Tower Club (33rd floor, Philamlife Tower, 8767 Paseo de Roxas, Makati City). To reserve seats, please email info@octopusbranding.net.