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Father-and-son entrepreneurs Andrew and Kevin Tan explain the philosophy and focus on sustainability and succession planning t hat has helped to make Alliance Global one of the Philippines’ most successful conglomerates
fortunes
Dr Andrew Tan
Education has always been close to my heart
PA S S I O N S
I believe that a company’s succession planning is successful when the current leaders and the next-generation leaders are aligned when it comes to three aspects: purpose, passion and proficiency. Different generations bring their own strengths and ways of working to the table. But if those three aspects are consistent from generation to generation, the business is more likely to continue growing. For us, the process was always very natural. We didn’t have a timeline. As a father, I believe that it’s my job to make my children interested in the various businesses. Having said that, I didn’t pressure my children to work for me – I thought that if they wanted to, they would do so at the right time. Kevin opted to join me first in Megaworld, the real estate arm of Alliance Global. He rose to become CEO of Alliance Global after proving that he had the creativity and commitment to move the conglomerate forward. Kevin and I are often on the same page about our businesses, even if our personal experiences have shaped us and our management styles differently. Kevin is keen on exploring even more opportunities for innovation, especially in digital technology. Throughout the pandemic, innovating through digital transformation programmes was one way in which we were able to quickly adapt to the new realities of doing business.
I find every aspect of business interesting. There’s just so much to learn! When it comes to my proudest moments, there are very many. Megaworld pioneered the idea of the live-work-play township in the Philippines. From one township – Eastwood City – in 1996, Megaworld now has 26 townships as well as integrated lifestyle communities and estates across 50 cities in the country. After 41 years, Emperador has become the largest liquor company in the Philippines. It was only a few years ago that we decided to pursue global expansion. In 2014, we acquired the world’s fifth largest Scotch whisky company, Whyte & Mackay. Two years later, we acquired the oldest and largest brandy company in Spain, Fundador. If I see certain room to grow, or a new opportunity to advance further, I go out and take it. One thing is for certain – I only go into businesses that I’m passionate about. That means the excitement will always be there. Sustainability is about longevity, not just in business, but in all aspects of life. Each and every one of us has a responsibility to do our part in creating a more sustainable world. When our world is sustainable, we ensure that future generations will thrive. I believe that any fairly successful company should make an effort to give back to society. And I think we can start with helping the local community.
Better life Personally, I want to give back to society through education. When you give people the chance to be educated, you’re opening the door to a better life. Giving college scholarships to deserving, less privileged young people is a number one priority for our Megaworld Foundation. I came from humble beginnings, and I can say that education helped me achieve my dream of becoming an entrepreneur. On the business side, a lesson I’d like to share is to know what serves your customers best. Our different companies operate under one common principle. We are there to provide a product or a service to make our customers happy. When I think about 5 million Filipinos drinking our brandy every night, or if every day there are close to 1 million people enjoying food from McDonald’s stores – that to me is the biggest reward. On a personal note, it’s important for a family to have a strong work ethic and a sense of integrity. Strong values are a good foundation in any family business.
