Family-run PH firms face the great transition
Sought for comment, Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael L. Ricafort told the Inquirer that effective succession planning is key in the kind of management structures where the CEOs are from family businesses.
“Controlling shareholders would still have a say in the designation of CEOs, including family businesses, though the preferred approach is choosing the most qualified, from family members or professional non-family members,” Ricafort said, citing this practice as a part of good corporate governance and best global best practices.
The report also said that for both family and non-family organizations, proper systems and structures should be in place to ensure that their businesses can withstand another pandemic, as well as global and domestic economic crises.
“If there’s anything positive that came out of the COVID-19 pandemic, it’s that business leaders became smarter, wiser, and more humble,” the report read.
“Through the pandemic, business leaders learned to make quick decisions without sacrificing their long- term goals, manage their assets efficiently, adapt to technology, and maximize and invest in human capital,” it added.
Meanwhile, geopolitical uncertainties are the top concern of Philippine CEOs in the next 12 months, with 62 percent of the respondents saying these keep them awake at night.
The Russia-Ukraine conflict, the war between Israel and the Hamas group, as well as the tensions from the territorial disputes in the South China Sea were among the concerns raised.
Other threats include macroeconomic volatility, inflation, and cyber security risks.
Still, 86 percent of the surveyed CEOs said they are confident about their industry’s prospects in the same time frame, reflecting a high sense of optimism despite the numerous challenges.
