A Founder’s Life: Leadership, Legacy, and Letting Go

By Prof. Enrique N. Soriano

As I write this, I am in Taipei for work, reflecting on an inspiring and sobering two weeks that have affirmed both my hope and my concern for family enterprises across the Philippines.

Over the past fortnight, I have been immensely encouraged by the turnout and engagement at our Family Governance Masterclasses. Iloilo was a major success, with business leaders flying in from Mindanao despite difficult weather and travel challenges. Our Cebu Masterclass two weeks ago was equally energizing — a full room of founders and next-generation leaders finally confronting governance issues they had postponed for years. COO Franco Soberano of Cebu Landmasters graced the Cebu leg, and we had a wonderful and honest exchange with the audience, addressing real questions from founders and successor-leaders who chose to speak openly about their fears, frustrations, and hopes for continuity.

As we now prepare for the final leg of my governance initiative on November 29 at the Seda Hotel in Makati, we are almost at full capacity and ready to conclude the year with clarity and renewed commitment to continuity. I have invited next-generation leader Lisset Laus Velasco, Chair and CEO of the Laus Group of Companies, to join me in a fireside chat that morning. Her presence represents a powerful symbol of what is possible when succession is approached with structure, maturity, and courage.

A Message to Founders Aged 60 to 65: You Are at the Most Critical Crossroad

If you are a business leader between the ages of 60 and 65, you now stand at the most decisive stage of your leadership journey. These years will determine whether your enterprise merely survives another decade or endures a century. You still possess wisdom, credibility, and influence — but time, no matter how uncomfortable it is to admit, is no longer unlimited.

This is when a founder must transition from operator to architect, from leader to legacy builder.

When you pass away, your memory will fade a month after your memorial service. Your business may be sold due to inaction. Your children — still grieving — may move on, even blaming you for failing to address issues you clearly saw but chose to avoid. When you’re dead, you’re dead. But what happens to your business, your people, and your name becomes another story entirely.

The tragedy is not death.
The tragedy is dying without preparation.

At this stage of life, you still stand at the height of influence. Yet this is precisely the moment to prepare your business, your family, and your governance structures for a future without you. These are the years of preparation, clarity, and alignment.

1. Face the “What Ifs”

Governance begins with courage — the courage to confront the conversations you have avoided.
What if you die suddenly?
What if your heirs cannot agree?
What if creditors demand payment?
What if your children want conflicting directions for the business?

These conversations are uncomfortable, but they form the foundation of continuity. Avoiding them does not preserve harmony; it delays conflict and magnifies it when emotions are at their most fragile.

2. Build a Shared Purpose

Before structure comes Shared Purpose — the unifying reason your family chooses to remain together in business. It defines what you stand for beyond profit. Families that articulate shared purpose early build resilience and alignment. Without it, systems collapse under emotional strain.

Hold a Strategic Planning Retreat with your family and key executives. Discuss values, vision, roles, expectations, and leadership pathways. Begin identifying potential successors and future ownership configurations. Clarity today prevents crisis tomorrow.

3. Establish the Governance Framework

Intent must evolve into structure. Begin by building the pillars of governance:
• A Family Constitution documenting values, vision, and rules of engagement
• A Family Council managing family-related concerns
• A functioning Board of Directors guiding strategic direction

Together, these form your governance triangle — separating emotion from management, ownership from leadership, and family from business.

4. Define Compensation and Succession Clearly

Fairness must be visible and understood. Develop a Family Compensation Plan that separates salaries (for employment) from dividends (for ownership). This reduces entitlement and strengthens professionalism.

Simultaneously, begin your Succession Plan. Identify successors — family or non-family — and allow them to participate meaningfully in decision-making. Succession is not an event. It is a carefully designed process of preparation, mentoring, and accountability.

5. Inventory and Protect Your Assets

Many families lose value because no one knows what exists or where documents are kept. Inventory all assets, loans, titles, and investments. Digitize records and place them under the care of a Family Office or trusted custodian. This protects your family from confusion, conflict, and unnecessary losses.

6. Institutionalize Alignment

Governance without alignment is documentation without soul. Meet quarterly as a Family Council to reinforce values and unity. Meet annually with your Board to review strategy, leadership development, and long-term direction. Alignment ensures continuity.

The Unprepared Patriarch

In Manila, a 65-year-old founder passed away without any governance or succession plan. His children fought over leadership. Creditors grew anxious. Suppliers withdrew. Employees resigned. Within a year, the business was sold at half its value. He was remembered fondly — but briefly.

The business he built over decades disappeared in twelve months.

Final Reflection

Governance is not control. It is clarity, continuity, and love. It is the silent discipline of legacy. Begin the difficult conversations. Create alignment. Institutionalize shared purpose. Preparation today is the greatest act of love you can leave tomorrow — for your family, your people, and your name.

Legacy is not what you leave behind.
It is what continues because you prepared.