The episode centers on the resilience and moral currency derived from multi-generational stewardship. For the Delgado family, performance is intrinsically tied to their ability to align operations with their ethical charter, even when facing significant financial or political pressure. By emphasizing long-term decisions over quarterly wins, maintaining control through periodic “pruning,” and actively using family history to anchor their values, the company has fostered a robust culture that allows them to brave challenging global currents. This deep commitment to values and nation-building, coupled with the stability inherent in being a private, family-run enterprise, directly reinforces The Third Layer’s focus on achieving sustainable high performance through deliberate, values-driven culture.
About Jose Paolo Delgado
Jose Paolo Delgado, a fourth-generation leader, offers an international perspective on guiding a multi-generational family enterprise rooted in the Philippines, tracing its history from the Spanish Inquisition and World War II. Paolo stepped into a leadership role around 2009 during a period of intense crisis, requiring decisive, “firefighting” action to restructure the company which was suffering from the effects of the 2008 financial crisis. He quickly pivoted the business, diversifying from 99% logistics into agriculture, fintech, AI, and climate investments, shifting the focus to future-proof verticals.
The company culture is defined by intentional stewardship and a commitment to nation-building, guided by a formal family charter. Paolo emphasizes that family members are not owners, but rather stewards carrying the business over to the next generation. Key to maintaining shareholder alignment and minimizing complexity is the generational practice of “pruning” the shareholder line through buyouts. Paolo also details how the use of archives, mentorship, and tailoring engagement to younger generations’ specific interests ensures a strong connection to the business’s legacy and values.
Insights From The Conversation
“There’s that comfort that you have with the past that you bring with you into the decisions of the future.”
“We are humbled by and aware of the responsibility and of the privilege. And it’s incumbent upon us to be accountable for it. Being contributing members of the family, being a value to society and leaving the Philippines in our immediate community better than we found it.”
“We have a pretty good program into supporting the different values that we stand for, empowering leaders that reflect this, removing those that don’t.”
Big Ideas & Takeaways
Long-Term Stewardship Mindset: The family operates with the perspective that they are stewards, not owners, leading them to prioritize decisions that benefit the business and society over multiple generations rather than short-term quarters.
Strategic Diversification: The shift from a near-total focus on logistics to a diversified portfolio including agriculture, climate solutions (forestry), and technology (AI, fintech) is driven by the necessity to find new verticals to prevent marginalization of the business in the future.
Intentional Legacy Transfer and Culture: The use of an active archiving department, mentorship programs, and ongoing educational activities (like programs with Babson College) ensures that active and inactive family members understand the history, values, and decisions of past leaders.
The Practice of “Pruning”: Every generation has historically executed buyouts (“pruning”) to narrow the ownership base, reducing shareholder complexity and allowing non-active family members the freedom to pursue their own interests.
Values Alignment and Ethical Leadership: Leadership requires the backbone to hold the line on values, even if it results in unpopular or financially difficult decisions, such as divesting from companies or industries (like certain port operations) that were not aligned with the family charter.
Meeting the Next Generation Where They Are: Engaging younger family members requires flexibility, such as tailoring roles or educational opportunities (e.g., online courses, light-lift international investments, foundation work) that align with their personal life stages and career interests.
