Good governance: Key to an efficient succession of family business

• Main Author: Odigie, Piqeld D.
• Format: text
• Language: English
• Published: Animo Repository 2015
• Subjects: Family-owned business enterprises > Succession; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5010
• Institution: De La Salle University

One common misconception amongst people is that they believe planning for transgenerational succession in a family business should only happen at the time when the controlling manager is ready to let go of his or her position. This puts the family in a vulnerable position as the event only happens once in a generation. Family business becomes successful over time because families and organization leaders learn how to take initiative and prepare to create change as necessary. The lack of an established succession plan raises the risk of the family company to fail. Establishing a governing body for the family gives direction to the members to ensure its continuity generation-to-generation. Having a family business that lacks the direction family governance can provide, with a lot of families depending on its performance, and matched with a controlling-manager who is at her retiring age can spell a lot of disaster for the family. The goal of the research is to help MBDO Cargo Express Forwarding Services, Inc., for the future transition of management from the current generation to the next. This goal can be realized through the use of frameworks such as: Influence on the path to succession that will help you recognize if succession is possible within you family or organization another would be by establishing a governing body, such as a Family council that will help guide the family, a family constitution that can be the basis of the family's action and a framework for organizational development model for change. In this cycle of the research, a Family council and a family constitution for the Datu family have been established. The interventions have been made possible through meeting of the minds in the form of focused group discussion and one-on-one meeting. The established outcome now helps the family identify who the qualified successors of the business are. This will now help ensure that the family organization last through the years.