While the economy is dominated by family businesses, many tend to be short-lived. Few even make it to the third generation. Coursing through decades of ever-changing market landscape poses the challenge of longevity for these firms. But for a Cebu-based clan, it is but an opportunity to take their ventures to new directions.
Like most family-run companies, things did not come easy for real estate developer, JEG Development Corporation (JDC). Initially starting out as a holdings company founded by Jose E. Garcia, JDC only went fully operational after he passed away in 2003. Through and inspired by him, his family aimed to become a major player in the industry during the thriving years of the Visayan capital. And even though that was the case, building their business still proved to be a challenge for its founding members.
“In the beginning, just dealing with the family members was a struggle. Transitioning from a family office to a fully functional real estate developer, it was difficult to draw the line between work and family in terms of professionalism,” says JDC brand manager Ayla Gomez. “More than that, we also have encountered a number of different hitches, exceeding budgets and making decision-related mistakes while getting to know the business and the industry.”
Issues, however small, are crucial especially to companies like JDC. These complicated situations call for a set of complex solutions which the Garcias were able to develop over the years. Their silver lining? Building connections that go beyond work.
“We make an effort to spend time together–from coffee meetings to family trips; we make sure that we share experiences that let us grow with each other. Because of these experiences, we’ve grown really close, even professionally, that we like working with one another. Personally, I think that is our greatest achievement so far,” says Stefan Garcia, the firm’s Estate and Business Development Head.
Since arguments are inevitable, the Garcias have also developed their own family constitution where a set of guidelines are laid out in writing. Listed are things that they need to do in case conflicts arise, and methods for resolution on different situations.
“I think for any business that’s run by a clan, the family constitution is really important because it helps alleviate things from getting too personal. Boundaries and policies are set ahead of time,” says Stefan. “This also helps family members be more objective when it comes to the company, as matters can get very emotional easily,” adds Ayla.
Speaking at the Family Enterprise Excellence Conference (FEEC) in Cebu City last September 29, the Espina-Garcia cousins talked about the challenges and rewards of the cousin consortium stage. “It was important for us to share with the other families in attendance our family history and experience in crafting a family constitution since we take a lot of pride in what we have accomplished so far. Despite the challenges that every family goes through, we are united in our goals for JEG Development and our core values continue to guide us.” says Marko Sarmiento, COO of JDC.
The establishment of the family constitution was just one step to keep the company a success despite internal struggles. While competing with several other firms, the Garcias always make sure that it puts its values at the forefront of making business decisions and putting family lessons into practices.
“We are very conscious that the sense of entitlement is strong in any family business so we make an extra effort to address this problem with our generation. There has to be a need for a family member to work in JDC and he or she has to be qualified. We definitely encourage family members to pursue their own passions but if they have plans to work with the family, early on we make sure the goals are aligned.” says Marko.
More than a decade since its establishment, the newest generation of Garcias now run JDC with a strengthened mission of becoming a bigger and more diverse enterprise. Equipped with a renewed energy and dynamism, as well as the support from their second generation leaders, JDC is now on to new heights as it seeks to complete its highly aspirational project, the JEG Tower, in 2020.
“Throughout the existence of JDC, we have always wanted to do things differently. We want to pursue projects that are not only innovative but relevant as well. Our latest project, the JEG Tower, is a testament to that. We’re building a high-end, LEED pre-certified Silver, sustainable office retail building which we’re taking as both a huge risk and opportunity to do something different than anyone else in the game,” Marko finishes.
With this flagship undertaking, JDC now aims to create a brand known for sustainably-efficient and collaborative solutions. By providing a working environment that improves the productivity and well-being of people, the company continues to transform itself into a relevant and socially responsible real estate firm.
KMC Savills is the sole leasing agency of JEG Tower @ One Acacia.