Succession Planning in Family Businesses
Course Description
The course is designed to give the participants an overview of How the Family should understand the dynamics that affect its members specially the older generation in relation to the younger generation. “Succession Planning” or “Leadership Transition” is and what it means for the continued success of the Family Business.
Part 1 (Ricky Mercado)
Understand the “family factor” in a family business succession process. Know the people who are involved and are affected in the process. Recognize the common individual and relational struggles that make the transition difficult. Learn effective ways of managing the family dynamics and addressing individual and relationship challenges that come during this very crucial period in a life of a business family.
Part 2 (Marijo Caronongan)
A study by the University of Connecticut Family Business off 800 family businesses said that the ultimate collapse of firms was precipitated by the founder’s death or incapacity in 47.7% of businesses. That compelling statistic surely affirms the importance of Succession Planning.
The actual physical “Changing of the Guards” is an event, but the Succession Planning that should precipitate that should be a process consciously engaged in by the family so that the actual event is not an imposition but a result.
Succession Planning is a professional, rational and perpetual process in any successful business enterprise. How come when applied to Family Business where the contenders are family members, the process losses professionalism and rationality? Worse, it is put in the back burner not addressed at all.
The participants should put all relevant succession issues in a structured format and address potentially emotional issues in professional framework so that these issues can be addressed effectively and enable the family to formulate guidelines for the smooth generational transition and leadership – identification of the potential successors, leadership training, etc.
Learning Outcomes
- Develop an understanding of the complexities that exist in the Succession Planning Process
- Develop an in-depth understanding of Succession Planning, generational & leadership transition in a family business setting
- Gain insights into the concept of Ownership with Management and the concept of Ownership without Management
- Appreciate the benefits of Planning for Succession in the long-term survival of the Family Business.
- Learn some tools used in identifying and developing successors
Course Coverage
- Meaning of Succession Planning or Leadership Transition
- Family Dynamics that affect the Succession Process
- Family Member’s role/s and responsibilities in the Succession Planning Process
- The Other Stakeholders: The Non-Family member professionals
- Guidelines in training and mentoring the younger generation
- Tools used in identifying and developing successors
Resource Persons
Mr. Ricardo Mercado
Ricardo H. Mercado is a Professorial Lecturer and the Director- Founder of the Ateneo Family Business Development Center of the John Gokongwei School of Management, Ateneo de Manila University.
He taught Family Business Management in the same University for 25 years where he finished his Bachelor’s degree in Economics and MBA.
He has lectured on the subject of Family Business Management in San Francisco State University and has been a resource person in Family Business seminars and regular guest speaker in Family Business classes in Santa Clara University, University of San Diego and the University of the Pacific, Stockton.
He learned the skills of Family Therapy and Family Dynamics by taking the Professional Diploma Course at The Center for Family Ministries (CEFAM), Loyola House of Studies under the Jesuits.
He has been a family business consultant for about 25 years and was involved in his own successful Family Business for 27 years. He continues to do research and write articles on family business. Specializing in facilitating family businesses in crafting their family constitution, he has facilitated about 210 business families.
Ms. Marijo Caronongan
Marijo M. Caronongan has over 20 years of experience in Human Resource Management and Organizational Development. She graduated with a degree of Business Management at the Ateneo de Manila University and took her graduate studies at the Ateneo Graduate School of Business.
Throughout her professional career, she has been in charge of the direction, control and delivery companies where she was employed. The last position she held was Vice President of Human Resource Development of MBTC Technology, Inc., the IT company of Metrobank.
Marijo is currently a Lecturer at the John Gokongwei School of Management of the Ateneo de Manila University and Consultant & Human Resource Cluster Head of the Ateneo Family Business Development Center (AFBDC). As Consultant of AFBDC, she has been engaged by owners of family-owned corporations to assist them in professionalizing their business operations. As part of her engagement with AFBDC’s clients, she designs and implements HR/OD interventions, such as, Performance Management System, Job Evaluation, Succession Planning, and Policy on Employment and Management of Family Members.
Mr. Ricardo Mercado
Ricardo H. Mercado is a Professorial Lecturer and the Director- Founder of the Ateneo Family Business Development Center of the John Gokongwei School of Management, Ateneo de Manila University.
He taught Family Business Management in the same University for 25 years where he finished his Bachelor’s degree in Economics and MBA.
He has lectured on the subject of Family Business Management in San Francisco State University and has been a resource person in Family Business seminars and regular guest speaker in Family Business classes in Santa Clara University, University of San Diego and the University of the Pacific, Stockton.
He learned the skills of Family Therapy and Family Dynamics by taking the Professional Diploma Course at The Center for Family Ministries (CEFAM), Loyola House of Studies under the Jesuits.
He has been a family business consultant for about 25 years and was involved in his own successful Family Business for 27 years. He continues to do research and write articles on family business. Specializing in facilitating family businesses in crafting their family constitution, he has facilitated about 210 business families.
Ms. Marijo Caronongan
Marijo M. Caronongan has over 20 years of experience in Human Resource Management and Organizational Development. She graduated with a degree of Business Management at the Ateneo de Manila University and took her graduate studies at the Ateneo Graduate School of Business.
Throughout her professional career, she has been in charge of the direction, control and delivery companies where she was employed. The last position she held was Vice President of Human Resource Development of MBTC Technology, Inc., the IT company of Metrobank.
Marijo is currently a Lecturer at the John Gokongwei School of Management of the Ateneo de Manila University and Consultant & Human Resource Cluster Head of the Ateneo Family Business Development Center (AFBDC). As Consultant of AFBDC, she has been engaged by owners of family-owned corporations to assist them in professionalizing their business operations. As part of her engagement with AFBDC’s clients, she designs and implements HR/OD interventions, such as, Performance Management System, Job Evaluation, Succession Planning, and Policy on Employment and Management of Family Members.