OPINION-COLUMN | Succession at the Consunji Group

Tycoon Isidro “Sid” Consunji stands casually on the sprawling Salar de Uyuni in Bolivia, the world’s largest salt flat or playa, touted as one of South America’s most majestic vistas.

In the middle of the seemingly endless expanse of white, Sid is capturing a moment in time with his digital camera. Perhaps he is taking photos of any of the three South American flamingo species that live on the playa.

 

He wears a dark jacket, Oakleys and a light brown boater hat accented with an Aguayo, the colorful Bolivian fabric in hues of red, blue and what-have-you. It’s a stark contrast to his tycoon vibe, which is often extremely casual or at times formal, as in a dark suit and gray tie.

It was interesting to see Sid put down his Consunji Group chairman’s hat for more relaxing pursuits such as traveling and taking photographs.

During his keynote, Sid talked about succession at the DMCI Group, perhaps for the first time at length.

My first takeaway from his interesting speech is that unlike other tycoons who cling to power, Sid, the eldest son of DMCI Group founder David Consunji, isn’t averse to the idea of stepping down.

He looks forward to retiring someday so that he can do other things. Perhaps more salt flats to explore.

But Sid concedes that family and succession are complex issues on their own, and even more challenging and daunting when combined.

“The fact that it has 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 succession can be in the real world,” Sid explains.

He was referring to the edge-of-your-seat brilliant family drama “Succession,” which to me was the best series I’ve watched in recent years.

Some other interesting points Sid shared: “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.”

DMCI has been working together to identify and develop future leaders, strengthen corporate governance and ensure that the organization is well-prepared for the challenges and opportunities that lie ahead.

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Sid shared that his sister Cristina Gotianun leads structured leadership programs that provide participants with opportunities to propose and develop innovative projects; execute these ideas within their roles and gain hands-on leadership experience.

Hiring local talent

DMCI also prioritizes hiring and developing local talent, with more than 99 percent of its management pool consisting of Filipinos, demonstrating its commitment to strengthening homegrown leadership.

“In our outlying facilities, we hire mostly from our host communities to create opportunities to support local employment, contribute to regional development and ensure that our workforce is connected to the areas where we operate,” Sid said.

DMCI’s move to hire local companies is indeed a positive step as it helps spur the economy in a locality. I salute efforts like this.

A smooth transition

Sid dished out a lot about succession but those waiting to hear specific names didn’t get any.

But he assured shareholders that he has been thinking about it and has been teaching many of his nephews and nieces about the ins and outs of the business.

“My father, David M. Consunji, officially retired from DMCI Holdings in 2014 at the age of 93. Even in his 90s, he would go around our construction sites, meticulously drilling our project managers on their work programs.

“Last January, I turned 76 years old. While I have no intention of working into my 90s like my father, I think I have a few more years left before I officially retire from the DMCI Group.

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“And I would like to spend that time ensuring a smooth transition, positioning our organization for continued success, while also allowing myself to enjoy the fruits of my labor and pursue other interests,” he said.

Semi-retirement

He has stepped away from day-to-day operations, serving instead as chairman across all subsidiaries to focus on strategy and long-term vision. “This is my version of semi-retirement.”

While he didn’t give any names yet, Sid said the company’s succession strategy embraces the idea that “anybody can be called to rise – at any time.”

I particularly liked two important lessons he shared: aspiring leaders must log enough “flying hours” before taking the helm and be capable of thinking on their feet.

So who will it be? My guess is that Sid’s successor will be one of his siblings and later on, somebody from the third generation. But that’s just me. As he said, anybody can be called to rise.

Whoever it is, I’m sure the Consunji Group’s succession story will unfold as Sid Consunji planned – and without the shocking plot twist at the end, unlike HBO’s “Succession.”

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The Philippine Star

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