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Business

Passing the torch in family businesses (Part 1)

SHAREPHIL INVESTORS VIEWPOINT - The Philippine Star

In the Philippines, family-run conglomerates have long been the backbone of the economy, and the transition of leadership from one generation to the next is a crucial process that shapes the future of these businesses.

At a recent forum hosted by the Shareholders’ Association of the Philippines (SharePHIL) at Dusit Thani, Makati on March 19, 2025, five next-generation leaders shared their inspiring stories of leadership, mentorship and the responsibilities that come with stepping into the roles their predecessors built.

Moderated by journalist Ces Oreña-Drilon, the panel featured Isidro “Sid” Consunji of DMCI and Semirara; Lorraine Belo-Cincochan of Wilcon Depot; Jose Paolo Delgado of Delbros Group; Lisset Laus-Velasco of the Laus Group of Companies; and Jose Franco Soberano of Cebu Landmasters.

Their insightful discussion illuminated the challenges of succession while emphasizing the positive impact of mentorship, legacy and leadership growth.

Passing the torch with purpose

In his keynote speech, Consunji discussed the complexities surrounding family business succession.

“Family and succession are complex issues on their own, but when combined, they become even more challenging. The fact that it’s been turned into an HBO series and frequently appears in case studies, in business journals, and management publications illustrates how critical and often contentious family successions can be in the real world,” said Consunji, the keynote speaker of the event.

His father, David Consunji, officially retired from the business at the age of 93 in 2014.

“Whether you are a company founder, a next-generation leader, or an adviser to such businesses, navigating succession presents unique challenges. You have to balance family and business interests, which for a number of reasons, do not always align. You have to select the right successor who may or may not come from the family. This perhaps is the most divisive decision in the succession process.”

However, Consunji was quick to point out that these challenges also present valuable opportunities to ensure that the transition is smooth and continues to honor the legacy built by the previous generation.

“As the current leader passes the baton or the successor steps into leadership, it is crucial that we ensure the transition is not only smooth but honors the past hard work, legacy, and relationships that have been built over time,” he added.

Mentorship through adversity

For Laus-Velasco, the sudden passing of her father, Liberato “Levy” Laus, propelled her into leadership unexpectedly.

In my case, stepping into leadership wasn’t a gradual process. It was sudden, unexpected and deeply personal,” she shared.

At this time, Laus-Velasco realized that leadership is more than just a role; it means carrying the legacy forward and making sure that the next generation is prepared to take the call when their time comes.

Laus-Velasco also emphasized the importance of having the right support system and ensuring continuous learning.

“The best mentorship comes from real life experience. My father was my greatest mentor, but he never sat me down for structured lessons. Instead, he taught by example and our weekend breakfast chat. I learned by watching him lead how he handled challenges, made decisions, and treated people. The lessons he imparted weren’t just spoken, they were lived,” she said.

“I realized that true leadership is not about having all the answers. It’s about being willing to adapt. It’s all about honoring the past while embracing change. My father laid the foundation but it was up to us to evolve, to innovate and to move forward.”

Empowering communities through business

For Soberano, leadership is not just about securing the future of the family business, but about giving back to the community.

Soberano takes pride in Cebu Landmasters for being the first to donate two condominium buildings for informal settlers in Cebu and Mandaue.

“This is what we do. It’s compliance but we did more than compliance. There are over 300 informal settler families relocated from hazard zones,” he said.

By integrating social responsibility into the company’s mission, Soberano emphasized that building a business that uplifts others creates a positive ripple effect.

Moreover, Soberano highlighted that the company received feedback from 95 percent of its employees that it’s a “great place to work.”

“We did not reward them with any food or any bonuses. This is independent. We were shocked and it was because we had leadership that valued integrity – doing the right thing, speaking, walking the talk.”

He credits his parents for shaping his values, which go beyond just business: “If it’s just material, what you’re doing, it’s not enough. We have to transcend the materiality of what we do,” he said.

Next week, in Part 2, we’ll see how Wilcon Depot’s modernization blueprint and Delbros Group’s bold turnaround offer hands-on playbooks for any family enterprise facing its next cross-generation challenge.

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To learn more about SharePHIL, visit https://sharephil.org/

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