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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: 9 th November, 2006.

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Hong Kong Management Consulting Service for China – the Prospective World’s Factory

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Hong kong management consulting service for china the prospective world s factory

Speaker: Mr. K K Yeung, JPFCMA, FCCA, FCIS, FCPA (Practising)Chairman, Management Consultancies Associationof Hong KongVenue: FEACO European Annual Conference 2006, Congress Park Hotel Flamenco, Budapest, HungaryDate: 9th November, 2006

Hong Kong Management Consulting Service for China –

the Prospective World’s Factory


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 relations1

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)200320042005

Imports from China:785,625918,2751,049,335

Domestic exports to China:36,75737,89844,643

Re-exports to China:705,787850,645967,923

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

US$ billion

Remarks: Classification of high-tech products according to standards promulgated by the OECD and Eurostat

Source:Census and Statistics Department, Hong Kong SAR Government


China factor world factory s demand for technology

China Factor – World factory’s demand for technology

1st

1st

1st

2nd

2nd

China as the world’s largest exporters (selected item rankings)

1st

2nd

3rd

2nd

2nd

2nd

2nd

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

(Total = 4,535 patents in 2004)

Source: China Statistics Yearbook on High Technology Industry 2005


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

Reshape industry structure

Upgrade workforce to stay competitive

Shortage of talent

Serious staff turnover

Hunt for foreign talents

Training as an alternative

China’s Training Needs

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

Manufacturing companies

Trading companies

Financial services companies

Government

Targets by Industry Sector

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.


Hong kong management consulting service for china the prospective world s factory

Management Consultancies Association of Hong KongWrite 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


Hong kong management consulting service for china the prospective world s factory

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


Hong kong management consulting service for china the prospective world s factory

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