10 Commandments of Family Gokongwei on Running a Family Business

10 Commandments of Family Gokongwei on Running a Family Business

Lance Gokongwei, president of JG Summit Group, shared his and his father’s secrets in running a successful conglomerate and in effectively transitioning from a company that is basically family-owned to one publicly-owned and listed.

Here are a few tips from Lance Gokongwei, on how they successfully-ran their family businesses in the Philippines.

Great lessons to follow for those who are looking on to build their business empire as well.

10 Commandments of the Gokongweis

1. No In-laws

- Over the years, they learned that it is best not to let in-laws participate in the business because it brought unnecessary tension in the family.

2. No moonlighting

- If you work for the business, you must give it your full time and attention.  You're not allowed to have sidelines.

3. No conflict of Interest

- As a rule, the company will not transact with businesses of other family members.

4. No work no pay from the Company

- A family member must work to receive a salary. 

5. Personal assets should be kept separate from Company assets

- Use your own money for personal expenses.  No freebies from the company for your personal use.

6. Pay the right salary for the right job

- Pay must be commensurate to the family member's contribution in the business.

7. Being family is no guarantee of employment

- Sometimes professionals are more qualified than family members.

8. Avoid working directly under one's parents at the start of your career

- Parents can sometimes be biased in giving feedback.  You'll learn more from someone else.

9. Give the Next Generation Wings 

- Successfully passing on the business to the next generation.  Implement a fix retirement age.

10. There can only be one boss

- Establish a process to appoint the leaders.

You can read the full article from Philstar.com