Embracing Change Making news for all the right reasons by Nicole Wong An internal reorganisation programme gets Reuters back on track In the age of the Internet and 24-hour satellite channels broadcasting around the globe, the latest news and market information has never been more easily accessible. That is partly the result of evolving technology, but also thanks to organisations like Reuters, which has transformed itself over the years and now ranks as the world's largest news agency and provider of financial information. Kenneth Tsui, the company's managing director for North Asia, says that much of the current success can be traced back to the creation of an electronic marketplace for foreign exchange in the early 1970s. Nowadays, the financial services business generates about 94 per cent of Reuters revenue and is used by over 300,000 subscribers working in equities, commodities, fixed income, foreign exchange and other markets. "Our global network delivers instantaneous value-added data that is not generally or immediately available to the public," Mr Tsui says. Another key part of the operation is to provide information tailored to local market needs. "The Hong Kong dollar, for example, receives closer coverage here than it does in overseas markets," he adds. Making this possible is a worldwide team of around 15,000 of whom about 290 are based in Hong Kong. Core strengths Like many other organisations whose fortunes are closely tied to the financial markets, Reuters experienced some ups and downs in the last decade. Economic crises and the dotcom crash had a direct impact on revenue and inevitably led to a re-evaluation of core strengths and future priorities. To re-invigorate its business, the company therefore embarked in 2003 on a three-year "Fast Forward" programme designed to cut costs and simplify administration. The major objective was to improve the quality of information and the level of service offered to finance professionals, as well as to sell certain holdings, which were no longer a good fit with the rest of the business. "This allowed us to focus on our traditional strength of providing value-added data,"Mr Tsui says. Notably, the scope of services for electronic transactions was enlarged to include fixed income and equities. By having high-speed access to real-time data, clients were able to trade faster and more easily. Other technological advances enhanced the company's long-established position as a trusted news agency. New distribution channels were introduced, so that news updates could be supplied via mobile phones, on the Internet, or on interactive TV programmes. "All our news is monitored for accuracy by at least two persons in the editorial team before its release," Mr Tsui emphasises. "Our standards for reliability are getting higher all the time, which is vital in view of the free flow of information from so many sources nowadays." He notes that these changes in business direction were accompanied by a transformation in management philosophy. There has been a new emphasis on speed of action, the empowerment of frontline staff, and developing the concept of the internal customer. "We have gone from a hierarchy to a matrix style of management and given staff more autonomy," Mr Tsui explains. "Greater transparency has also helped in managing our business relationships and understanding customer expectations more thoroughly." Empowerment The process of reorganisation has seen an increase in the number of frontline staff and the centralisation of certain back-office functions. At the same time, HR policies have stressed the importance of giving equal opportunities and promoting staff from within. "Local candidates have been appointed as managing directors in some of our Asia offices, such as Hong Kong and Taiwan, and we also appreciate cultural diversity," Mr Tsui says. "For example, staff who are Muslims can take short breaks at specific times of the day in order to pray." The push for greater empowerment has been supported by new methods of internal communication. Information previously given only to certain grades of management is now circulated on a web-based system. This allows all staff to know more about corporate developments, business strategies, job vacancies and upcoming events. To ensure daily operations are running efficiently, the company has introduced regular customer satisfaction surveys and performance targets for staff. There are also ongoing dialogues with investors by means of meetings, presentations and briefings, while a new commitment to corporate social responsibility is evident in the variety of community events now being organised. If the sustained growth in revenue and high customer satisfaction scores are anything to go by, the "Fast Forward" programme has been a resounding success. The next stage will include further enhancement of the electronic platforms available for financial transactions. There are also plans to offer a broader range of products for corporate clients. "In addition to that, we will focus on growing in markets such as China and India, where there are abundant opportunities for our media, financial information and trading businesses," Mr Tsui concludes. Then and now Before A diversified portfolio of businesses, with falling revenues and high operating costs Management style and organisational structure based on rigid hierarchy Limited information about the company passed on to staff and business partners Now "Fast Forward" programme has reinvigorated core businesses Matrix management structure has improved internal coordination Closer relationships with staff, investors and the public through improved communication efforts New emphasis on diversity, internal promotion and corporate social responsibility Taken from Career Times 3 March 2006 Your comments are welcome at [email protected]