Embracing Change Consolidating strengths for a brave new world by Charles Mak Focusing on core strengths and role as a good corporate citizen has given company renewed impetus Many services are so much a part of our everyday lives that they can go almost unnoticed. However, by making it possible for us to travel by bus or ferry, buy concert tickets and live in well-managed apartment buildings, NWS Holdings Limited (NWSH) is providing services for literally millions of people a month. Even so, the company is constantly on the lookout for ways to improve the performance of their diverse range of businesses, which explains why they recently undertook a realignment of activities to create a more clearly defined corporate structure. This established two main divisions – infrastructure, and service and rental. The previously separate ports division is now under the infrastructure portfolio, which also includes energy, water and road projects. Service and rental now covers facilities rental, contracting and transport, and is probably best known to the public through names like Citybus, New World First Ferry, HK Ticketing, Tai Fook Securities, Urban Property Management and Hip Hing Construction. "These businesses affect many aspects of everyday life," explains Kwan Chuk Fai, the company's general manager for corporate communication. "Our priority is therefore to keep strengthening our core businesses so that stakeholders can see the progress while investors can easily compare us with other groups." Estimates indicate that the infrastructure division will continue to generate some 70 per cent of operating profit and NWSH is focusing on activities that are mostly based in mainland China. "We are often seen as a public utility, which nevertheless provides stable cash flow with fewer ups and downs," Mr Kwan says. "As a result, we will concentrate more on infrastructure projects, such as expressways, ports, and the supply of water and electricity in the mainland and Macau." He adds that the extension of road projects has seen a 27 per cent increase in attributable operating profit during the first half of 2005. Consequently, the company is increasing its investment in expressway projects, including those linking Guangzhou to Zhuhai and Zhaoqing, plus the south-western section of the Pearl River Delta ring road. Meanwhile, NWSH has recently sold its interests in the Kwai Chung container terminals and switched its focus to the mainland. This led to the recent contract for an 18 per cent stake in the Tianjin Five Continents port project. Getting people to understand and agree with the company's direction is a real challenge China Focus Investments in water treatment and waste management in China have also paid off. "Profit growth is a remarkable 50 per cent," Mr Kwan says. "The central government and municipal governments are working with the private sector to expand water facilities. There is unparalleled potential for growth." The plans to restructure resulted from a board discussion in late 2004 and were put into effect soon afterwards. It meant a great deal of work, particularly in communicating the rationale to employees. "We wanted everyone to understand and agree with the company's direction – that was the real challenge," Mr Kwan says. To facilitate change, the company newsletter New Voice was produced for internal and external stakeholders and explanied exactly what was happening. Members of the 42,000-strong workforce also received a newsletter tailor-made for frontline staff to ensure better overall alignment. Outstanding employees Realising that business success depends on the performance of staff, NWSH has sought to boost team spirit, offer fair recognition and awards, and encourage employee feedback. For example, grand awards are presented to outstanding employees at the annual management conference and a sports and recreation committee helps staff to maintain a work-life balance. "Keeping staff engaged in our business transformation and taking care of their welfare went hand in hand," Mr Kwan notes. Having won accreditation as a "caring company", NWSH takes its responsibilities as a corporate citizen very seriously. In 2001, they started a Volunteer Alliance which encourages employee involvement in community schemes each year and has so far led to 16,000 hours of voluntary service. "Making a donation simply isn't good enough, we need to get ourselves engaged," says Mr Kwan. "In just three years, the number of active volunteers has grown to over 900." It is also a policy to make each January an NWSH caring month. Already there are plans for each member of staff to be attached to a charity on 15 January 2006. "By utilising our business strengths and resources, we can really make an impact," he says. Mr Kwan predicts that competition in all major industry sectors is likely to intensify. "Therefore, we need to look beyond Hong Kong," he says. "We now have construction and electrical and mechanical engineering contracts worth over HK$7 billion in Macau. To keep our core businesses growing, we are actively looking for expansion opportunities further afield." Then and now Before Diverse business interests managed under numerous divisions Focus on service businesses generating revenue in Hong Kong Major investments in Kwai Chung container terminals After Streamlined business into two main divisions – infrastructure, and service and rental Investment in China-based developments including water, electricity supply, roads and ports projects Sale of Hong Kong port assets to allow for reinvestment in the mainland Extra focus on need for work-life balance and the company's role as a responsible corporate citizen Taken from Career Times 16 September 2005 Your comments are welcome at [email protected]