Character or competence?

A reader wrote: My wife and I started a medium-sized food business outside Metro Manila 40 years ago, and now we want to pass it on to our two sons. “Kuya” and “Bunso,” both in their late 30s, have been working with us for more than 10 years. But we don’t know whom to choose as leader.

At first we wanted to give the business to Kuya, because he did well in school. He is hardworking and “maasikaso” (caring). But Kuya is not entrepreneurial, and other people take advantage of him. If he runs the business, we are worried that it will fail. Bunso does not respect him.

Bunso is the opposite of Kuya. We spoiled Bunso when he was young, and he never studied hard so he almost did not graduate.

But today he is more street-smart than Kuya in the business. He has better PR skills (Kuya is shy) so he is good at sales. The problem is Bunso likes to gamble and we do not like his circle of friends. He is separated from his wife (she nags him a lot), but he is a good father. Kuya says Bunso does not have good values, and my wife and I tell Bunso to be better, but he says he is making money for the business so we should not interfere with his life.

My wife and I are tired. We want to retire. Our business employs 100 people, most have been with us for years. Kuya and Bunso do not get along. Whom should we choose?

My reply

At this point, my answer would be neither. Kuya appears to have good character, but he is not competent. Bunso seems to be competent in business, but his character appears questionable.

A worthy leader (and successor) needs both character and competence.

Kuya and Bunso are both nearing 40, perhaps a little late to have family values or business smarts inculcated in them.

But never say never.

Let’s take Kuya. You say he does not have the entrepreneurial mindset—can you train him more in this regard?

You worry that he is taken advantage of. Place structures (such as trusted advisors) to guide him in making decisions. Start the process of professionalizing your business, and work toward a family constitution that can safeguard resources.

I recommend that Kuya go back to business school and learn about professionalization. He can also ask his professors for advice on how to become a worthy successor in your enterprise.

If Kuya is open to learning, be patient and guide him. This might take some time, but he might finally be a good successor.

Right now, Kuya is not ready to handle the reins. “In modern business, it is not the crook who is to be feared most,” says US industrialist Owen Young, “it is the honest man who doesn’t know what he is doing.”

Now let’s talk about Bunso. I am surprised that even with his shortcomings, he still manages to make money for you. Hopefully, his dealings are all aboveboard.

I have to agree with your gloomy assessment of him. Gambling is a no-no for any employee, even worse for a prospective leader. Bunso needs help from an addiction specialist (contact your nearest medical center), and convince him to consult one right away. Accompany him to the specialist if needed.

You say he is a good father, so hopefully he can turn his life around for the sake of his kids.

If he refuses any help and continues on the path of self-destruction, he definitely cannot be trusted to handle the business.

Since Kuya and Bunso do not get along, it is not a good idea for one of them to work for the other. In case Kuya proves himself worthy, you will need to help Bunso set up his own enterprise.

Your employees are loyal, some are likely competent. If neither Kuya nor Bunso meets your expectations after say, five years, you may have to select an employee with exemplary competence and character to lead the next generation.

God bless.