Speaker: Mr. K K Yeung, JP FCMA, FCCA, FCIS, FCPA (Practising) Chairman, Management Consultancies Association of Hong Kong Venue: FEACO European Annual Conference 2006, Congress Park Hotel Flamenco, Budapest, Hungary Date: 9th November, 2006 :
Hong Kong Management Consulting Service for China –
the Prospective World’s Factory Speaker: Mr. K K Yeung, JP FCMA, FCCA, FCIS, FCPA (Practising) Chairman, Management Consultancies Association of Hong Kong Venue: FEACO European Annual Conference 2006, Congress Park Hotel Flamenco, Budapest, Hungary Date: 9th November, 2006
China and Hong Kong Relations : China and Hong Kong Relations Source: (1) National Bureau of Statistics of China
(2) Hong Kong Census and Statistics Department
(3) Hong Kong Census and Statistics Department
China and Hong Kong Relations : China and Hong Kong Relations China’s Road Map to World Industrial Power
Deng Xiao Ping (鄧小平 era) (Late 1970s -1992)
Late 1970s: 4 Modernization & Socialist Market Economy
1979: JV Laws introduced
1986: WOFE Laws introduced
Jiang Ze Min (江澤民 era) (1993-2003)
1990s: State Enterprise Reform
2001: WTO Accession
Hu Jin Tao (胡錦濤 era) (2003- till now)
2004: Green GDP
2005-2006: Macroeconomic control measures
2005: 人才強國
2005: Self-developed technology
Source : K K Yeung Management Consultants Limited
Hong Kong as Catalyst to China’s Growth : Hong Kong as Catalyst to China’s Growth HK Trade: (HK$ million) 2003 2004 2005
Imports from China: 785,625 918,275 1,049,335
Domestic exports to China: 36,757 37,898 44,643
Re-exports to China: 705,787 850,645 967,923
HK Investment into China: Rank No. 1 in 2005
HK employment in China: 237,500 residents in 2005
HK enterprises’ employees in China: over 11 million
HK factories in PRD*: Over 60,000
HK Port container throughput: 22,602,000 TEUs in 2005
* Pearl River Delta Source : K K Yeung Management Consultants Limited
Hong Kong – High-tech Exports : Hong Kong – High-tech Exports Hong Kong’s Merchandise Exports of High-tech Products Remarks: Classification of high-tech products according to standards promulgated by the OECD and Eurostat
Source: Census and Statistics Department, Hong Kong SAR Government US$ billion
China Factor – World factory’s demand for technology : China Factor – World factory’s demand for technology 1st 1st 1st 2nd 2nd 1st 3rd 2nd 2nd 2nd 2nd 2nd China as the world’s largest exporters (selected item rankings) Source: China Statistics Yearbook on High Technology Industry 2005
China Factor – Mainland as a source of technology : China Factor – Mainland as a source of technology Technological Manufacturing Activities on the Mainland Source: China Statistics Yearbook on High Technology Industry 2005 (Total = 4,535 patents in 2004)
Management Consulting Movement in China : Management Consulting Movement in China Pre-11th 5 Yr Plan
- FDI related consultancy
- Inward technology transfer
- Plant installation related
- Invest China
- Training
Post-11th 5 Yr Plan
- Outward investment related consultancies
- Outward technology transfer
- China invest
- More training
Source : K K Yeung Management Consultants Limited
China’s Training Needs : China’s Training Needs Reshape industry structure
Upgrade workforce to stay competitive
Shortage of talent Serious staff turnover
Hunt for foreign talents
Training as an alternative Source: MCAHK/HKTDC Joint Study of 15th June, 2006
China’s Training Market : China’s Training Market Source: MCAHK/HKTDC Joint Study of 15th June, 2006
Targets by Industry Sector : Targets by Industry Sector Manufacturing companies
Trading companies Financial services companies
Government Source: MCAHK/HKTDC Joint Study of 15th June, 2006
Hot Offers : Hot Offers Leadership, strategic management
Interpersonal skills (communications, teamwork, etc.)
Negotiation skills
Presentation skills
Problem solving / decision making Source: MCAHK/HKTDC Joint Study of 15th June, 2006
Target China Cities : Target China Cities In Trade Development Council’s survey, Shenzhen, Guangzhou and Shanghai are the most popular places to which Hong Kong companies export their training services. Shanghai and Beijing are seen as having better prospects over the next 1-3 years. Source: MCAHK/HKTDC Joint Study of 15th June, 2006
Privileged Market Access Under CEPA : Privileged Market Access Under CEPA Foreign companies provide training courses to users on the mainland mostly in the form of customised programs for individual companies via setting up management consultancy companies on the mainland. Foreign companies are not yet allowed to set up wholly-owned consultancy companies on the mainland. However, CEPA enables Hong Kong companies to set up wholly owned consultancy companies on the mainland.
Personnel intermediary agencies may offer open class training courses. Nevertheless, only minority foreign joint venture personnel intermediary agencies are allowed presently. In contrast, CEPA enables Hong Kong companies to set up majority-owned joint venture personnel intermediaries. Source: MCAHK/HKTDC Joint Study of 15th June, 2006
China Training :Case Study 1 : China Training :Case Study 1
Client:
A leading worldwide container shipping company from France. The client has 60 people in Shenzhen
Participants:
Original training needs identified for 2 groups of people, namely:
1. Basic Level
- For Sales Team
- For Customer Service
2. For Supervisory/Executives
- For Supervisors/Managers
Recently, the consultants conducted a Leadership Skill training for their South China staff in Xiamen
and also a Quality Selection & Interview Skills program in Shenzhen and Xiamen.
Source: Dew-Point International Ltd.
China Training : Case Study 2 : China Training : Case Study 2
Client:
A worldwide shipping organisation with more than 100,000 employees and offices in over 125 countries, global headquarters in Denmark
Recently, the consultants conducted a Sales Image workshop (2-Day Program) for their staff in different regions as below:
1 Class in Shenzhen
1 Class in Shanghai
1 Class in Hong Kong
Source: Dew-Point International Ltd.
China Training : Case Study 3 : China Training : Case Study 3 Client:
A Banking Group in Shenzhen, headquarter based in Shanghai
Training Programs included:
Customer service skills for tellers
Coaching skills for supervisors
Source: Dew-Point International Ltd.
China Training : Case Study 4 - Business Improvement Program (BIP) Seminar : China Training : Case Study 4 - Business Improvement Program (BIP) Seminar Client:
A Hong Kong toy company with 3,000 staff factory in Dongguan (South China)
Objectives:
To confirm the company’s aim and mission
To develop and increase competitiveness
Participants:
11 senior and middle managers in Hong Kong / China
Contents:
Various management topics
Case studies
SWOT analysis
Business plan Source: K K Yeung Management Consultants Ltd.
China Training Case Study 5 – Seminar on China : China Training Case Study 5 – Seminar on China Client:
An international textile company listed on the Amsterdam Stock Exchange with over 8,000 staff worldwide
Objectives:
To provide an overview of the investment environment in China
To share experience on the latest MNC’s strategies in China
Participants:
Total 11 participants including the President & CEO, CFO and Managers from various subsidiary companies
Contents:
Introduction
Creating a prominent presence in China
Case studies
Country presentation
Workshop – SWOT Analysis
Workshop – Development plan in China
Conclusion
Source: K K Yeung Management Consultants Ltd.
Slide20 : Management Consultancies Association of Hong Kong Write Up One distinctive feature of Hong Kong’s services sector is the importance of business to business services. Management consultancy is one such important service, but its extent and scope was not clearly understood by potential users. Therefore, the Hong Kong Coalition of Service Industries (HKCSI), the service policy think tank of the Hong Kong General Chamber of Commerce (HKGCC), commissioned the University of Hong Kong to undertake a study of the current and future place of management consultancy in relation to Hong Kong’s competitiveness, together with an analysis of how the sector might be promoted. The study was funded by the Services Support Fund of the HKSAR Government in October 1997 and completed in early 1999.
The academic team was led by Professor Michael J Enright and Dr Edmund R Thompson, who came to a very clear conclusion – “The Next Revolution in Hong Kong’s Economy will not be a Technological Revolution, but a Managerial Revolution”. Management consulting adds value to Hong Kong through its own sales and expenditures, through the revenues and profits brought back to Hong Kong from “exports”, through the increased competitiveness of its local client base, and through its ability to transfer global best practice management tools and techniques to the local business environment.
In view of the importance of the management consultancy sector, a key recommendation from the survey was to advocate collective action to promote the management consultancy sector through the creation of an association to speak for the industry. As the representative for the industry, the association would carry greater weight in interacting with government, educational institutions and other organisations at home and abroad.
The Management Consultancies Association of Hong Kong (MCAHK) was therefore formed in April 1999 with the assistance of the HKGCC and support from the HKSAR Government. The purposes of the association were to provide a central body for inquiries – particularly overseas parties who wished to use the services of Hong Kong based consultants, to provide a networking and educational arena for local consultants, to be a conduit for information, and to act as a representative for issues pertaining to management consultants.
Source: Management Consultancies Association of Hong Kong
Slide21 : Professional Guidelines Confidentiality
A member shall treat client information as confidential and will not take advantage of privileged information gathered during the professional work undertaken
Professional Competence
A member shall only accept work for which he/she is competent and (where applicable) professionally qualified
Assignment Clarity
A member shall ensure that, before accepting an assignment, the objectives, scope, deliverables, workplace and fee arrangements are mutually understood and agreed.
Independence
A member must be able to conduct each assignment objectively. He/she should not be biased by any stakeholder about any aspect of the client’s thinking which could alter the impartiality of the member’s advice.
Conflicts of Interest
A member shall not represent himself as an independent evaluator and at the same time accept commissions or other benefits from others in connection with a recommendation to a client regarding services or products without the client’s knowledge and consent.
Proprietary Materials
We recognize our responsibility to the profession to share with our colleagues the methods and techniques we utilise in serving clients. We will not knowingly, without their permission, use proprietary data, procedures, materials, or techniques that other management consultants have developed but not released for public use.
Client Relations
We will not make offers of employment to employees of clients without prior consultation. If we are approached by employees of clients regarding employment in our firm or in that of another client, we will make certain that we have our clients’ consent before entering into any negotiations with employees. When consultants change employers, they have a responsibility to fulfill or adequately transfer the clients’ contacts and assignment details prior to termination.
Professional Reputation
We will respect the professional reputation and practice of other management consultants. This does not remove the moral obligation to expose unethical conduct of fellow members of the profession to the proper authorities.
We will strive to broaden public understanding and enhance public regard and confidence in the management consulting profession, so that management consultants can perform their proper function in society effectively. We will conduct ourselves so as to reflect credit on the profession and to inspire the confidence, respect, and trust of clients and the public. Source: Management Consultancies Association of Hong Kong
Slide22 : Thank You