Melito S. Salazar Jr. In the late ’80s, my Filipino-Chinese friends would invite me to have lunch or dinner with their sons and nephews usually in Manila Mandarin which was close to my Board of Investments office. It was an occasion for sharing with them some tidbits of my views of the evolving world and the challenges and opportunities open to them. I never passed up the chance to interact with them because of the professor in me but more because I learned so much from the questions they asked. Being a small and private group I could also be as candid as they too were probing in their queries. The topics were wide ranging but I still remember after 30+ years a few that we discussed. There is an oft quoted Chinese saying, “the first generation makes the money, the second generation spends it and the third generation squanders it all.” Whether true or not, I told them to forget about the saying; instead think of the first generation establishing the foundation and all succeeding generations contributing their own building blocks towards an enterprise in service of the nation, the Philippines. As a young boy I saw my Filipino Chinese classmates go to the family store after class and stay until closing time, doing odd jobs. It was followed by dinner and studies before sleep; a daily routine. The reason was not to save on personnel expense but to enable the child to learn and understand the business – trading was not just buy and sell; it was also a financial transaction where extending credit brought in more income than the actual margin on the sale. Working with the staff gave one a better understanding of their strength and weakness and more importantly their motivations and character. Many an enterprise had floundered because a trusted subordinate whittled the company funds. Someone who steals small things will graduate to larger pickings. Meeting the network of the parents – suppliers, clients, financiers, partners- was an opportunity to appreciate that the resources of the firm went beyond the funds in the books. It was a reservoir that one could bank on if properly nurtured. Working in the enterprise gave one a better understanding of the “core business” which coupled with one’s view of the emerging environment – globalisation and technology, suggested new directions for the family business. I shared how from trading, it was a natural move to banking and then to diversification (not funded by one’s bank but another friend’s bank to whom one returned the favour) and from domestic operations towards the region and the world. Each generation should bring in something new, a view validated years later by my good friend Olive Limpe Aw who told me the secret to continued growth is innovation. In her case, seeing the intense competition at the low price end, she created Philippine Crafts of spirits and liquors which have penetrated the export market meeting global standards. As the enterprise grows, the need for more managers demands a program of improving home-grown talent and enticing professionals. The Human Resources department should not be viewed merely as a recruitment and placement unit but should be seen as helping shape the organisational culture, excellent in analysing personnel motivations and performance, and be an innovator in talent development. Professional managers who can present contrary views are worth more than a convoy of yes men and women. The test of loyalty is not that one will follow you all the time but that he or she will act in the best interest of the enterprise. As for family members, each should be given an opportunity to prove themselves but for those whose interests are in the arts, literature, etc. they should be helped to be the best. A family’s contribution is not just to the economy but to Philippine society. I enjoyed the sharing especially as I saw in them the new breed of Filipino Chinese businessmen- innovative, entrepreneurial and socially responsible. Many would call me “Sensei.” I would reply, “Just call me Uncle.” [email protected]