Electrical and Mechanical Services Trading Fund









" 2000/01 has been another successful year for the Electrical and Mechanical Services Trading Fund (EMSTF). Our financial targets were more than achieved, productivity further enhanced, our quality programme making good progress, but most importantly, our clients have continued to enjoy a wide range of reliable, customer-focused and value-added services. 2000/01 has been a year of continuous evolution and improvement. "



We are pleased to report that during 2000/01, the EMSTF recorded another year of positive business results. Despite phase two of the "untying" which began in August 2000 whereby a further nine customers representing about 25 per cent of our business volume were given the choice to use alternative E&M service suppliers, business growth has far outweighed the limited amount of business lost to competitors. The fiscal year ended with a turnover of $3,171 million (1999/2000: $3,060 million), and a healthy 15 per cent return on revenue.

Productivity also saw 2.5 per cent growth during the year. Since the establishment of the EMSTF in 1996, we
have recorded 20 per cent cumulative productivity improvement, which has been directly passed back onto
clients in the form of reduced prices and value-added services.

During the year, our seven business units have again recorded outstanding performance. They have successfully taken over a variety of new venues, renewed major contracts or won new business via competitive tenders, and
at the same time secured major long-term service agreements ranging from three to six years with some of our customer departments. Our corporate services team, in collaboration with the business unit managers, have
also achieved a great deal in many areas of internal improvement including quality, training, marketing, IT enhancement and communication.


The EMSTF is now in its fifth year, a relatively short period of time compared to the department's 53 years of history. EMSD has come a long way in half a century. In that time, the scale and scope of our activities have evolved and expanded but we believe our fundamental goals remain the same. To serve our clients and the community of Hong Kong well, we are committed to keeping up with the latest developments, trends and technology to ensure our community's safety in the areas of electrical and mechanical engineering, while also contributing to Hong Kong's well-being as a world class city with world class engineering services.

This may sound ambitious but as with any quality conscious and customer-oriented organisation, we cannot afford to lag behind in this fast changing world. We must also benchmark ourselves against the best organisations and the best worldwide practices. We have to be aware of new trends and developments to
ensure that our systems and processes are capable of harnessing the latest technology, and to translate
them into innovative solutions and relevant services for the best interests of customers and the public.

Hong Kong is part of the global economy and is more exposed than ever before to the forces of change and competition. Constant vigilance, innovation, enterprise and a sense of urgency are essential if the EMSTF is
to chart a course for long-term success and excellence.

This cannot be achieved by a few senior managers. We must work hard to empower staff at all levels to
recognise that it is essential to move forward in order to survive and compete in an increasingly demanding environment.


During the past five years, the EMSTF has devoted its energy to building the foundations on which to move forward. This foundation has many components - our productivity improvements, regionalisation and restructuring, work process streamlining, market research and marketing programmes, IT enhancements, training, customer service enhancements, one-stop integrated services, certification work of ISO 9001, ISO 14001, OHSAS 18001 and Total Quality Management initiatives, cultural change and communication programmes - all these are part of our strategic plan to make EMSTF a more customer-focused organisation equipped with effective systems and processes whilst maintaining the openness and agility necessary for the organisation to move with a fast changing world.

One of the milestones during the year was the introduction of EMSTF's new vision, mission and values. Building on our previous mission for quality and reliability, our new philosophy takes us further forward in our transition to a

customer-focused and service driven organisation. In addition to providing the reliable and cost-effective
services called for in the past, we now seek to create a better quality of life for our customers and our
community through total engineering solutions and service excellence.


A review will not be complete without some discussion of the challenges ahead, and the strategies to overcome them. As with any customer-driven service organisation, the challenge for EMSTF is to consistently motivate staff, and to constantly satisfy and exceed customer expectations for more and better services with less resources. As a government department, our additional challenge is to ensure that the community does enjoy a better quality of life as a result of our engineering services.

Elsewhere in this report our colleagues have outlined their strategies on a business and operational level to manage these challenges. On a corporate level, I believe the answer lies in building our organisational capabilities and strengths, and in nurturing strong brand loyalty among our customers.

In this day and age, our operating environment changes fast. A good organisation has the ability to manage not only these
changes but also the continuity to create increasing value over time. It is no coincidence that our new vision
is to be the "most preferred E&M service provider in Hong Kong. " To be the "most preferred" means to be the most sought after in every aspect of what customers want. This is a tall order, one that calls for our utmost focused efforts over the next few years to continuously enhance our organisational strengths and capabilities.


The EMSTF is privileged in that as long as Hong Kong continues to be a vibrant city, there will always be
demand for the kind of services we provide. Where Hong Kong grows and prospers, we also stand to grow
and prosper. Infrastructural developments, new government facilities and new technologies will offer new
niches and opportunities for our growth. Our technological capabilities to identify for clients untapped service areas that they were not aware of before - such as indoor air quality and energy management - can also
create new service categories to the benefit of customers, the community and the environment. We look
forward to playing an important role in Hong Kong's future development in this direction.


On behalf of the Executive Board of the EMSTF, I would like to express our sincere thanks to all our colleagues
for their commitment and hard work, and to our customers for their support and patronage. I would also like to specially thank Mr C T Leung, the previous General Manager for the EMSTF. Mr Leung's leadership and
dedication was the driving force behind many of our milestone achievements in the past year. Together with all our colleagues, we shall build on the solid foundations established by our predecessors and continue the
quest for excellence.

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