Prof. Enrique Soriano

Prof. Soriano is the Turnaround Advisor of wongadvisory.com and the Chairman of the Marketing Cluster at the Ateneo Graduate School of Business. For comments please email writer at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Pay must be commensurate to productivity

Wednesday, 16 May 2012 11:49 Prof. Enrique Soriano

THE Sixth Commandment is “pay must be based on contribution to the business”. Lance Gokongwei said that in order for the family member to live and think independently, the family business must pay the right salary for the right job, but the pay must be adequate enough so that the family member will not be dependent on the parents for support. “The amount you will receive is based on merit and not who you are in the family totem pole,” Lance added.

In the early years of the family business, the struggle is for survival. Management often face pressure to hire relatives or close friends who may lack the talent or skill to make a useful contribution to the business. However, once hired, such people can be difficult to fire.

Personal assets should be kept separate from company assets

Wednesday, 09 May 2012 14:41 Enrique Soriano

THERE’S an old saying that may be wiser today than ever: “East is east, and west is west; and never the twain shall meet.” This holds true in the case of the 5th Gokongwei Commandment: Personal assets should be kept separate from company assets.

Lance Gokongwei, president of JG Summit Group, said that personal expenses incurred by family members employed in the firm should be paid from their own pocket – including personal travels via the family-controlled Cebu Pacific and personal hotel stay at the family-owned RLC hotels, and even shopping at the Robinsons retail stores. In short, run the family business like a business.

4th commandment: ‘No work, no pay’

Thursday, 03 May 2012 00:49 PROF. ENRIQUE M. SORIANO

DOING business with family and friends can be very rewarding. It can also be very complicated and difficult. Anyway, doing business with loved ones has never been a neutral topic. It always involves an even more stringent standard of etiquette than usual, but if appropriate measures and safeguards are taken, it can make life, work and relationships a rich, rewarding tapestry that brings the best of both worlds.

Last Updated ( Thursday, 03 May 2012 18:37 )

Gokongweis’ commandment no. 3: No conflict of interest

Thursday, 26 April 2012 10:33 Prof. Enrique Soriano

“TO set aside one’s prejudices, one’s present needs, and one’s own self interest in making a decision as a director for a company is an intellectual exercise that takes constant practice. In short, intellectual honesty is a journey and not a destination.” - Mervyn King

At the heart of a family business is family relationships. Family relationships may not appear to be critical to the success of family business until succession time - or when there is a crisis due to family bickering, backbiting or outright conflict. The threat or conflict is increased when multiple family members are involved.

10 commandments of the Gokongweis in family business

Wednesday, 11 April 2012 15:28 Enrique Soriano

No in-laws!

THIS is the first of 10 unwritten commandments which John Gokongwei, founder of the Gokongwei group of companies, followed in running the family business “the Gokongwei way.” (I will discuss the remaining 9 commandments in succeeding issues.)

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