Embracing Change A tradition of innovation by Chris Johnson Making a government department work like a market-focused business enterprise requires vision and the commitment of all concerned Any organisation that has been established in Hong Kong for over 160 years yet still provides essential services used by the local community on a daily basis must know a thing or two about change and how to manage it effectively! That is exactly the case for Hongkong Post (HKP) which, in response to increasing competition and advances in technology, is now tackling head on a number of new challenges. Their range of services is being broadened and staff retrained to provide the public with a combination of traditional reliability and far-sighted innovation that answers to modern-day needs for speed and convenience. "Transformation is something we are used to and our latest reform journey really began in 1995 when the Trading Fund operation started," says Allan Chiang, postmaster general, Hongkong Post. "Most government departments bid on an annual basis for resources, which are then allocated, if approved. As a Trading Fund, we are financially autonomous. Revenue earned from day-to-day transactions is retained while any surplus is returned to the government as a dividend," he explains. This system has allowed greater operational flexibility and made it possible to respond faster to competition. It has also given the freedom to introduce an approach to business which is less the old civil service style and, instead, more market-focused and customer-centred. Productivity and profitability are the new watchwords and, applying the latest management thinking, the objective is to promote Hongkong Post as a recognisable brand. "Nowadays, many customers think of us as a company because we are so commercially minded in the way we manage our business," says Mr Chiang. " Nowadays, many customers think of us as a company because we are so commercially minded in the way we manage our business" New realism To bring about this change, a clear long-term vision and the committed involvement of staff have been crucial. An ongoing campaign under the banner of "Linking people Delivering business" was put in place and made applicable to both internal and external activities. "With over 7,100 staff, some of them civil servants and some on contracts, we had to formulate our values in a realistic manner and broadcast the message to each and every employee," says Mr Chiang. "We had to make them more focused on financial and productivity targets, business growth and diversification." All processes were examined and examples used to reiterate the new purpose, vision, mission and values to be applied with colleagues and customers. "We broke the philosophy down into twelve specific modes of behaviour so people could understand the actual requirements in their daily work," Mr Chiang adds. These include commitment, teamwork, open communication, proactivity and excellence and, in Chinese, many deliberately use the character for "heart" emphasising respect and care for others. "Throughout the training, we have realigned our staff's thinking so they have the right core values but still understand they provide a public service not solely driven by profit," Mr Chiang explains. In practical terms, this has tied in with diversification into new areas of business. Core activities like selling stamps and delivering letters no longer generate sufficient revenue to support the network of 132 post offices without new value-added services. "We must use our existing infrastructure to do more for customers," Mr Chiang says. "Therefore, the 'PayThruPost' service now offers one-stop shop convenience and people can pay utility bills, tax demands, rates and traffic penalty tickets at one of our counters." Logistics partner An e-declaration service allows importers and exporters to file trade declaration documents at one of 15 designated locations and HKP is expanding further into logistics. "With a delivery network that covers every known address in Hong Kong, we have a competitive advantage and are taking on more supply chain work in warehousing, collecting payments and order processing," notes Mr Chiang. A recent example of a special logistics partnership involved the home delivery by HKP of Mother's Day gifts ordered by customers from 7-Eleven stores. Similar agreements have been set up with China Post, whereby customers are able to order gifts from a catalogue in Hong Kong for delivery directly to friends or business colleagues in mainland China. The issue of "electronic substitution" ?people using email instead of postal services ?is acknowledged by Mr Chiang, but steps have been taken to offset any possible decline in revenue. Capitalising on its reputation for reliability, HKP has already introduced e-Cert. Using this, digital certificates are issued to service subscribers to confirm their Internet transactions for online banking, shopping, stock trading or betting. "It guarantees security, confidentiality and the integrity of the message transmitted and has multiple applications," explains Mr Chiang. "An organisation like Hongkong Post with its brand, reputation and reach is the most suitable to offer such an operation." BEFORE & AFTER Before - Reliant on centrally allocated government funds - Bureaucratic style of work - Culture built on stability rather than change - Concentrating on traditional postal deliveries After - Established as a financially autonomous Trading Fund - Market-focused and customer-centred approach - New purpose based on linking people delivering business - Initiatives to develop new sources of revenue Taken from Career Times 28 May 2004 Your comments are welcome at [email protected]