PFBC STRAMA DRAFT

September 2014 Cebu City, Philippines

Premier FamilyBusinessConsulting

Premier History

From humble beginnings, the Founder of Premier Inc. started his fate in the business when he was at 18 year old. Young as he was, he woke up as early as 3 o’clock in the morning to open a store in Carbon a public market known in Cebu to sell rice and corn grits both retail and wholesale, at the same time studies during the midday until in the a�ernoon. He learns the trick and trade of the business during those times that eventually helped him and led him to who he is today.

It was during the loss of his sister and father at his young age when both were diagnosed with critical illnesses; his sister su�ered from heart disease while his father was renal failure that he realized the value and importance of planning ahead, protection and savings. The experience of having members of the family diagnosed with critical illness that eventually led to death practically wiped out their family income due to excessive medical expenses as a result of going in and out from the hospitals. The absence of life and medical insurance protection added the burden of the family since at that time they don’t believe in insurance and the value it brings. This has led the founder upon being apprised by the one of the life insurance company manager to do the business of selling life insurance in one of the No. 1 insurance company. From then, he got so very successful and promoted to the top position of the company both sales and recruitment management. He was feted with multi awards as the Youngest Manager, Rookie Manager and Unit Manager of the Year that eventually led him to establish his own Agency sometime in 2008 where the company Premier Business General Agency Inc. began.

The founder was grounded with hard work and purpose driven a�itude that made him to succeed. Coupled with passion to learn and innovate never ceased the founder to pursue excellence other than always wanting to do simple things extraordinarily.

His failures also molded him, it made him strengthened his FAITH to GOD, and developed his HUMILITY.

Jon, also had a passion for PROFESSIONALIZATION, ever since its his dream to be professionally equipped, this passion moved him to study further advance education here and Abroad. He is the first batch to graduate in the International Association of Registered Financial Consultant, he took the Essential for Management, first batch, and first batch to finish the Advance management Program of UAAP in partnership with IESE in Barcelona Spain. He also took the Guided Discovery, a coaching program from the Heritage Institute, where he developed his skills on active listening, and recently with the success of the enterprises he put up, he studied further in the Family Firm Institute, Boston USA to get his certification in Family Business Advising which now connects to his passion and potential in Influencing and Inspiring. With his Education and experiences in dealing with families in business he fully developed his love to INFLUENCE and INSPIRE FAMILY’S IN BUSINESS to unify, Grow & strengthen the family and their businesses to achieve lasting wealth through generations.

Thus, PREMIER FAMILY BUSINESS CONSULTING was born. PFBC, is one of the Business Unit of Premier Inc., where it focuses in providing holistic services to Families in Business. It started last 2011 with the Inheritance Conference organized by the company which was a�ended by more than 250 families from Visayas and Mindanao. The success of the 2011 conference led the company to pursue more programs and partnerships that pushes excellence in the field of consulting.

This brought the company to level up and put up another conference which happened last 2013. This time, the conference has brought the company to new and greater heights in content and brand.

These successes both the families it assisted and the consultants it trained and certified is a true testament of opportunity to trail blaze a new institution that allows integration of family and business systems towards achieving generational wealth.

About Premier Services

The Family Enterprise Planning

We are the only family business consulting firm in Southeast Asia who provides holistic services that integrate the family and business system.

We champion family unity by placing it at the heart of all our processes.

The business families we serve are builders (1) those who want to build a strong foundation in a time when

the demands of both family and business become an obstacle to generational wealth, and stewards (2) those who want to grow and perpetuate their family enterprise. Through Family Enterprise Planning, you ensure that your unity as a family leads to progress for your business.

“Inspiring and Influencing

Family Unity

for Generational Wealth”

The Core Ideologies Of Premier

Core Purpose: To inspire and influence family unity as the supreme model for generational wealth.

Values:

BHAG The global resource center for family enterprise excellence.

VIVID DESCRIPTION • 20,000 happy, wealthy and

reunited families served with 50 branches all over the world with 500 happy and wealthy employees and consultants delivering service with passion and excellence.

• PBFC has International scope sought a�er in terms of clients, partners & collaborators all over the world.

• Professionals regard a P.B. certification as a “stamp” of achievement in their careers.

• PBFC pioneered and is home of the Global family awards

• Sets the standard of excellence for family business center

• PB collaborators & partners are regularly invited speak to speak in family business conventions

• Clients have significantly achieved family unity and generational wealth.

• All stakeholders – a�liates, employees and clients become advocates of PBFCs mission. They live the values, purpose & convictions that PBFC profess. Stakeholders are living testaments of unity in life.

God-centeredness

Bringing Christ to the market place Winning Christ for the market place

Integrity Ethical Base Camps

Transparency In 2040 (28 yrs from now)

We have influenced Families all over the world.

Reliability In 2030 (18 yrs from now)

We have influenced Families in Asia Pacific

Best At: Integrating and Innovating

Passionate About: Influencing and Inspiring Families

In 2020 (8 yrs from now)

We have influenced Families in Asia

In 2015 (3 yrs from now)

We have influenced Families nationwide

Profit Engine: Per Family Engagement

Resource Engine: Reuniting Families

The Strategic Management Process

The Action Plan

STEP 1 – Evaluate Current: Mission, Goals, Strategy

MISSION:

“ To inspire and influence family unity as the supreme model for generational wealth” “Is Uniting Families in Business as a value proposition create interest, curiosity, necessity and or disturb them to take actions? Or is Uniting families in business as a value proposition negate them to take actions?

VISION:

“The global resource center for family enterprise excellence.”

“What does our vision mean? “

STEP 2: - Evaluate Current : Scan External and Internal Environment.

External Environment

A. The Task Environment

B. GENERAL ENVIRONMENT

TECHNOLOGICAL - Interactive and Dynamic WebsiteNATURAL - Uniting FamiliesSOCIOCULTURAL - Presence of 2nd gen in the businessECONOMIC - Emerging Economic Environment of Southeast AsiaLEGAL/POLITICAL - ASEAN IntegrationINTERNATIONAL - Focus on Southeast Asia and eventually go global

THE INTERNAL ENVIRONMENT

MANAGEMENT & EMPLOYEE - God Centered, Competent, Passionate, Value oriented, Positive a�itude, Responsible

CORPORATE CULTURE Invisible: God Centered, High Influence, Positive and CompetentVisible: Logo - represent integrated servicesTagline - “Uniting families”

STEP 3 – “Identify Strategic factors: OPPORTUNITIES & THREATS, STRENGTHS & WEAKNESSES”

OPPORTUNITIES 80% of the integrated economies of ASEAN are compose of Family Business Family Businesses are the backbone of Asean economy 65% of the total number of listed companies in the region comprise of Family Owned Corporations, according to credit Suisse Emerging Market Research Institute Families in business are the main drivers of the Philippine market through provision of goods and services, jobs, and to a certain extent policy making from the Chamber of Commerce Not only in the Philippines that Family Businesses are making significant contribution to the economy but the ASEAN as a whole Most family business these days are in the growing stage, therefore need the right kind of structure in order to grow and expand the business Currently, most family businesses are still managed by the founders About 95% of the family businesses do not survive on the third generation of the ownership, due to lack of preparation for the next generation to handle the demands of the growing business and the much larger family

Percentage of Family Businesses in the Private Sector

Percentage of Workforce Employed by Family Businesses

Percentage of Family Business Contribution to National GDP

THREATS University-based center, who is one of the pioneer in helping FAMILIES IN BUSINESSThreat for other professionals who already providing services to the Family Business Clients, like lawyers and accountants and other related services.Threat for other professionals who will venture the same approach like premierThreat for the price comparison with other professional who individually o�er the integrated services of premier

STRENGTHSFirst in southeast asia with Integrated, & Holistic (FEP) ApproachWe support family values; which focus on family unityExcellent multi-disciplinary teamThought leaderTrustworthiness: sincere, competent and integrityCredentialsDeep understanding of family; Ability to relate, understand and listenWith high Influencing skills/PersuasionPositive auraDiversity on communicationHumility

WEAKNESSESExpensiveCebu mentality: perception of “local”Confidentiality issueWe are not an institutional brand (we are mavericks)We are not Chinese (Chinese market)Threatened by perception of the di�culty of achieving unity in the family

New Vision, Mission And Grand Strategy Define

MISSION: “To inspire and influence family unity as the supreme model for generational wealth.

VISION: “The global resource center for family enterprise excellence.”

That will comprise of 3 distinct and separate Strategic Business Units (SBU’s)

1. Training School 2. Consulting3. Research

GRAND STRATEGY: ADVOCACY

“Strengthening families in Business.”

“Because family business is everybody’s business.”

Formulation of Strategy

FORMULATION OF STRATEGY:

CORPORATE: What business are we in?

THE PORTFOLIO STRATEGY

We envisioned to have 3 di�erent strategic business units (SBU’s) or programs to support the Grand vision

a. Education - We envisioned to put up a training school to support the continuing service to our clients and stakeholders.

To certify professionals who like to carry the premier as their brand (Premier way) in doing consulting services to their Family Business clients. b. Consulting - These are premier group of consultants who carry the brand of premier providing holistic services to clients

c. Research - Research team of premier where they compile and study all best practices about Family Business.

Envisioned to be the resource center for Southeast Asia when it comes to family business ma�ers.

BUSINESS: How do we compete?

The Family Enterprise Planning Model

The Integrated and Holistic approach of our service will capture the heart and mind of our clients…

This is how we are di�erentiated from our competitor..the integrated services

Functional StrategyO

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PLA

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Functional Strategy

Our Organizational Structure

Financials

Profitability based on 3 years projections…

“With 2 engagements per month on the first year”

Our Programs:

1. Family Focus Discussion Program

Learning together as a family in business creates far be�er results than when only one or two family members are involved. And a family in business who is learning together the best practices and relevant issues concerning family unity and family business sustainability makes conversion of insights into execution far more successful. Relevant to family businesses in Southeast Asia especially to Filipino family businesses, preparing for the ASEAN integration also requires education on family enterprise management. This is the hope of the Family Focus Discussion. To inspire and influence family businesses to move beyond their challenges and maximize their competitive advantage – their family values.

Because families in business are diverse, the Family Focus Discussion comes in two forms:

a. The Family Focus Discussion Platinum

The goal is to promote and bring family business education to where the family businesses are. With experienced family business practitioners, the Family Focus Discussion Platinum shall provide the family in business an exclusive half-day learning event right at their board room with the following topical outline:

• Macro Economic Landscape in Southeast Asia

• Impact to Family Businesses

• Challenges of Family in Business

• Keys to Successful Family Enterprise Management

• Action Planning

b. The Family Focus Discussion Series

The goal of the Family Focus Discussion Series is to make this learning event readily accessible to all forms of small and medium family enterprises – whether they are still starting up or expanding; are sole proprietors or in a corporation; in the founder stage or cousin consortium. The purpose is empower them to perpetuate their family businesses. For those starting up and sole proprietors to be empowered to look into multi generational potential of their family and business. For those expanding and moving beyond the founder stage to be empowered to be more sustainable and lasting it is a paid half –day learning event that features di�erent experts every month as they deepen the keys to successful family enterprise management with topics covering on family business governance, estate planning, asset protection, compensation, cra�ing family constitution among others.

The Family Focus Discussion shall become more inclusive and widespread in strengthening family businesses with the partnership of family business networks and di�erent sectors of the community. The collaboration of these stakeholders shall indeed inspire and influence a critical mass of family businesses towards progress. 2. The Family Enterprise Excellence

The Family Enterprise Excellence Conference is a yearly gathering of networks of family businesses, practitioners, and stakeholders to come together for an insightful day of learning, sharing, connecting and inspiring.

Understanding the impact of Asian family businesses and their potential in reaping the rewards of integrated economies, there is a bigger need to empower families to act together as networks of family businesses to become more sustainable and ready. The Family Enterprise Excellence Conference aims to be the avenue to bring into public awareness and start discussion of the needs of family businesses.

THE GRAND STRATEGY “Strengthening families in Business.” “Because family business is everybody’s business.”

The Advocacy of Strengthening Families in Business

The identified needs of the family businesses in Southeast Asia and the Philippines are the foundation of the advocacy to strengthen families in business.

This advocacy calls for a leader to spark collaboration among stakeholders in each community. It is in response to this call, challenge and need, that Premier Family Business Consulting comes to fore!

Understanding the utmost importance of sustaining families in business especially with their dominance in the growing economy in time for the ASEAN integration, Premier Family Business Consulting commits to champion the advocacy of strengthening and bringing out the best in family businesses in the Philippines and in Southeast Asia.

Passing on leadership to the next generation can be a di�cult process, which pose as a threat to the continuity of the family in business. Research has shown that as the founder transitions leadership, the value of the business compared to non-family firm decreases (Villonga & Amit, 2004).

Longevity of a family-run business can be a challenge. It has been pointed that families in business can be at their worst, operating their businesses unprofessionally by practicing nepotism, accommodation, having no long-term strategic planning, poor capital structure among others (Ward, 1987).

1. The Challenge of Succession and Longevity

The Impact of a Family in Business

The advocacy of strengthening family businesses lies on the premise that family businesses being a key driver to economic development are also vulnerable to the unique and inherent challenges of being a family in business. In the Philippines, 80% of businesses are family owned and controlled. In Southeast Asia, 65% of total listed companies in the region are family businesses. Family businesses comprise the majority of business in most countries across the globe according to the global facts by Family Firm Institute (Boston USA). With the forthcoming economic cooperation zone of the ASEAN member states, the family businesses are in the forefront to reap the rewards of this development.

The Challenges of a Family in Business

Poor family dynamics can result to long-ending conflicts that divide the family and even result to expensive court ba�les and business closure. Further, mechanisms to sustaining unity are still considered as the least priority. Family businesses need to realize the value of fostering unity as integral to their continuity and success.

2. The Challenge of Managing Family Dynamics

3. The Challenge of Estate Preservation

Poor family dynamics can result to long-ending conflicts that divide the family and even result to expensive court ba�les and business closure. Further, mechanisms to sustaining unity are still considered as the least priority. Family businesses need to realize the value of fostering unity as integral to their continuity and success.

The distribution of estate is a very expensive and emotional endeavor for the family. Issues on fairness, equality, and control can open up unresolved issues and tear the family and their business apart. The financial burden can potentially eat up the business capital and lessen the family’s liquidity. In worst situations, this may force a family business to sell o� their businesses.

Common issues of family businesses in terms of finances are1) the prioritization of resources allocation for business or family and 2) the comingling of funds. If they will prioritize business expansion, family financial needs might be sacrificed. On the other hand financial needs of a growing family may lessen business liquidity. This is very common to families who family and business funds are comingled. These are issues that potentially drag the growth of a family in business.

If these challenges are unresolved, the potential of family businesses will not be realized. When families in business fail to survive and pass on their entrepreneurial activities to the next generation, it has serious macro-economic implications: local employment conditions, the supply and demand chain, and the economy as a whole is a�ected.

4. The Challenge Of Balancing Between Family Welfare Vs. Business Growth

The Needs of a Family Business

There is paramount importance in strengthening families in business. There is a need to help them be organized as a family and establish solutions to address their challenges; to encourage them to find more sustainable ways to maintain their position and lay the groundwork to take advantage of the opportunities of a more open market; to help them be prepared as the economy of Southeast Asia changes.

To do this, we identify the emerging needs of the family businesses:

a) The Need to Propagate and Build-Up the Field of Study on Family Businesses locally and in Southeast Asia

There is a need to increase awareness on the best practices and study on family enterprise management. The study of family business is surprisingly new. In fact, formal research devoted to family business only emerged in the past 60 years or so by the Family Firm Institute (FFI) in 1986.

FFI endeavors are doing some good already in the Western world; yet, the expertise and resources that FFI can share to family businesses in Asia is still wanting. The study of family businesses specifically in Southeast Asia and in the Philippines is very underdeveloped. Thus, the development of the study and research locally and specific to Southeast Asia, will pave the way to equipping family businesses in the region to overcome challenges and maximize family business’ competitive advantages.

b) The Need to Unite and Encourage Family Business Practitioners

With the emerging field of family businesses, only few family business practitioners are aware of the best practices and theories that are necessary for successfully helping families in business. It is a factor that only few academic institutions in Southeast Asia and the country have curriculum on the developing field of study on family business. Lawyers, Accountants, Organizational Development consultants, and other various professionals working with the family business would benefit from a comprehensive understanding of the dynamics, challenges and advantages of family businesses. With this understanding, consultants are able to cra� pro- active solutions that are customized to the distinct family business situation.

As an e�ect, professionals become family business practitioners who become more e�ective in ushering family businesses to progress.

c) The Need for a Resource Center for Uniting and Strengthening Families in Business through Integrated and Holistic Planning

Families in business need to overcome the “shirtsleeves to shirtsleeves” or “wealth doesn’t last three generations” phenomenon brought about by unsuccessful a�empts to overcome the challenges inherent to family businesses. With this, families in business need extra planning to integrate aspects of unity (managing family dynamics), wealth (preservation), and succession as crucial for sustainable growth. Integration of the di�erent interests and goals of both the family and business system is the key to successful family enterprise management.