JOHN L. GOKONGWEI, JR. found it odd that 10 years after his retirement he would be named “Management Man of the Year 2017,” a recognition that he accepted as rightly timed similar to how he mapped the course of JG Summit Holdings, Inc. (JGS) through the years.

“I have to say though that the timing is impeccable. The mark of a good manager, as they say, is to make oneself dispensable, and I believe that 10 years hence, the business has prospered under their capable leadership, coupled by a bench of professional management,” he said in a recorded acceptance speech just before he personally accepted the award given by the Management Association of the Philippines (MAP).

Mr. Gokongwei was referring to his brother James L. Go, JG Summit chairman and chief executive officer, and son Lance Y. Gokongwei, president and chief operating officer, as the capable leaders who took over the reins of the company he founded.

In his speech, the senior Gokongwei narrated how JG Summit was among the first Philippine businesses to list in 1993.

“Before that, we had built a pretty successful business, but in order to fulfill our ambitions of becoming a pan-ASEAN conglomerate, we would have to raise money in the capital markets and eventually in international credit markets. More so, unless placed under the spotlight of the public eye, a family-managed company would not be under pressure to perform. We would become soft and flabby,” he said.

In the process, he transformed his company into what he called a hybrid of family-led and publicly listed business that works.

“On the other hand, remaining family-managed would imbue the business with the stability, strong culture, and long-term vision necessary to see our investments bear fruit,” he said.

Mr. Gokongwei said the balance had allowed JG Summit to invest in capital-intensive businesses that bridged the first phase of its growth to its present one. This also allowed the group to provide local consumers with choices, including affordable air travel through Cebu Pacific Air.

“It has allowed us to contribute to our country’s manufacturing base, a step necessary to a nation’s progress, through JG Petrochemicals,” he said.

“It has allowed us to plant the Philippine flag in Thailand, Indonesia, Malaysia, Singapore, China, Cambodia, and Laos, where Universal Robina is now a major player, and in Oceania, where we have acquired leading snack food companies in Australia and New Zealand.”

This has also allowed the company to acquire holdings in Manila Electric Co., PLDT, Inc. and Singapore’s United Industrial Corp.

“Today, JG Summit and RRHI (Robinsons Retail Holdings, Inc.) are among the top conglomerates in the country, family-led, but professionally run,” he said.

Towards the end of his speech, Mr. Gokongwei said that aside from sustainability and succession, the mark of a good manager is “to build value, create jobs, and make money for shareholders.”

On building value, he said the company has never been afraid to enter into competitive markets but in doing so, it introduced innovative products.

“For example, both C2 and Great Taste White shook up the consumer beverage and coffee markets when they were introduced. Sun Cellular and Cebu Pacific also shook up the telecom and airline businesses by providing choices to many Filipinos, thus improving their lives,” he said.

Mr. Gokongwei said his company had created 60,000 jobs in the Philippines, including through the Gokongwei Brothers Foundation, which helps talented but less-fortunate kids “receive a fair shake in life.”

“Third, we have created value for our shareholders,” he said.

In 1956, he recalled putting up Universal Robina Corp. with P3.5 million, money that he saved from selling used clothing, old newspapers, and other knick knacks. He also put in money from friends to whom he said he remains grateful.

JG Summit listed in 1993 with a market capitalization of P6.3 billion, but now his two holding companies — JG Summit and RRHI — are valued at P665 billion.

In closing, he thanked his mother and siblings for being his partners in starting JG Summit.

“When we were still operating out of a small tindahan on Martinez St. in Cebu City, they acted as bodegeros, clerks, all-around handymen. They were with me from the very beginning,” he said.

Sought for comment, his son Lance said: “We’re just very proud for my father.” — Victor V. Saulon

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