By Prof. Enrique N. Soriano
At the recent Filipino-Chinese Bakery Association Inc. (FCBAI) Bakery Fair 2025, I posed a critical question to the audience:
“If something happens to you today, will your business survive without you?”
Many attendees sat in deep thought, contemplating the future of their life’s work. Some looked at their children, questioning whether they were truly prepared to take over. Others exchanged glances with their business partners, recognizing a hard truth: they had no clear plan for succession.
I had the privilege of delivering a very important topic on “Baking for Generations: Securing a Legacy That Outlasts the Founder.” This prestigious event—made possible through the efforts of Chris Ah, President of FCBAI, and the dedicated organizers—brought together over 5,000 entrepreneurs and suppliers from around the world.
Despite the energy and optimism of the fair, one pressing concern remained: many family businesses are at risk, not due to market conditions, but because of a lack of succession planning and governance.
The Silent Crisis in Family Businesses
Across Asia, thousands of family-owned businesses—some with decades or even centuries of history—are struggling to transition to the next generation. The challenges are familiar:
- Lack of Interest from the Next Generation– Many children of business owners prefer different career paths, viewing the family business as too demanding or lacking prestige.
- Resistance to Change– Founders often hesitate to modernize, leading to outdated business models that struggle to compete.
- Founder’s Reluctance to Let Go– Many owners retain full control for too long, leaving successors unprepared.
- No Clear Governance Structure – Without a Family Constitution, succession plan, or governance framework, leadership transitions often become chaotic, resulting in internal disputes or business decline.
These issues are not unique to one industry; they affect family enterprises of all sizes and sectors.
A Billion-Dollar Empire That Collapsed Overnight
In 2015, I was engaged to mentor a 39-year-old heir of a multi-billion-dollar conglomerate. His father, a self-made tycoon, had built an empire spanning multiple industries across Asia. Yet, when the patriarch passed away unexpectedly, the empire began to unravel.
The root of the problem was clear:
- The founder had complete control but never prepared his son for leadership.
- The family avoided difficult conversations about governance, power, and ethical decision-making.
- While a Family Constitution existed, it was never enforced.
- Governance structures were only formalities on paper, not actively practiced.
Within two years, the business was in turmoil. Sibling rivalries intensified, boardroom conflicts escalated, and strategic decisions became driven by personal interests rather than a shared vision.
By the time I was brought in, the damage was already significant. A decade later, the family is still dealing with the consequences—fractured relationships and a weakened business.
This is not an isolated case. It is a pattern seen in family businesses that neglect succession and governance.
Why Succession Planning is Non-Negotiable
Ownership is not a birthright; it carries responsibility.
As a founder, ensuring financial security is not enough. The long-term survival of the business depends on preparing the next generation to be responsible stewards, not just heirs.
True succession planning is not about simply handing over leadership titles. It requires:
- Early preparation of successorsthrough mentorship and experience.
- Instilling values and disciplineto foster responsible leadership.
- Establishing a governance frameworkto guide decision-making and prevent disputes.
Successful multi-generational businesses understand that wealth alone does not secure the future—strong leadership and stewardship do.
A Call to Action for Business Owners
At some point, every business leader must step aside. The question is whether the business will thrive beyond their leadership or fade away.
When that time comes, what will the legacy be?
- Have the next generation been equipped to lead with integrity and vision?
- Have they been prepared to uphold and strengthen the business?
- Or has the assumption been made that financial wealth alone is enough to sustain them?
These are the questions that define the future of a family enterprise. The time to address them is now.
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The W+B Family Governance Leadership Masterclass: Securing Your Legacy for Generations
Navigating the complexities of family businesses goes beyond managing profits and growth—it demands a deep understanding of family dynamics, succession planning, and governance to ensure stability across generations. Conflicting visions, unresolved tensions, and leadership transitions can make this journey feel like walking a tightrope without a safety net.
In response to the growing need for clarity and direction among family business leaders, heirs, and successors, the W+B Family Governance Leadership Masterclass returns for its second edition this May and June. This immersive three-day program is designed to help participants uncover tailored solutions to their most pressing challenges while equipping them with the knowledge and skills essential for long-term success.
Through a combination of virtual sessions and an in-person graduation event, this Masterclass will guide participants in:
- Unraveling the fundamentals of family business governance
- Developing strategies for fostering a harmonious family culture
- Mastering succession planning and leadership development
Take the first step in securing your family business legacy. Limited slots available—reserve your place now at [email protected]!
