The results of the annual HKMA Quality Award, one of the most prestigious business awards in Hong Kong, were proudly announced by Dr Lawarence Wong, Chairman of the Award Organizing Committee, during the press conference of the Award held on 23 June 2000 at the Grand Hyatt Hotel.

PARKnSHOP, Hong Kong`s biggest food retailer with a chain of over 186 stores, was awarded the overall winner in recognition of its distinguished success and achievements in Total Quality Management (TQM). Two companies which also belong to the Cheung Kong/Hutchison Group, Cheung Kong Holdings Citybase Property Management and Cheung Kong Holdings Goodwell Property Management were also awarded the Certificates of Merit.

As stated by Dr Lawrence Wong during the press conference, "the number and variety of companies has proved that the quest for quality has become an increasingly important force leading to success and growth, irrespective of an organization`s nature and size". Dr T Y Lee, Chairman of the Board of Examiners, further added that the Examiners were especially pleased to note that "all the finalist companies this year have achieved very high quality standard and the competition amongst them has been very keen they are all very dedicated and serious about the Award as demonstrated by their top management involvement and excellent teamwork during the Examiners Workshop".

The comments of the Board of Examiners on each winning company can be summarized as follow:

PARKnSHOP - Overall Winner

PARKnSHOP has demonstrated to the Board of Examiners a comprehensive company-wide commitment to Total Quality Management. The company has successfully developed itself into a market driven and customer-focused company which greatly strengthens its leading position in the industry.

The management of PARKnSHOP has clearly defined its mission, goals and strategies and established various channels to communicate corporate direction to employees at all levels. The implementation of the Fresh Check programme supported by a Food Hygiene Academy has effectively improved the standards of food safety and hygiene and successfully set a new standard for the industry to follow.

PARKnSHOP has a clearly defined market segmentation. Extensive market researches and customer surveys have been conducted to understand market trends and customer needs. The launch of the Price Watch Campaign shows the efforts made by the company to achieve a high level of customer satisfaction.

Senior executives of PARKnSHOP review performance information on a regular basis and constantly communicate to employees to ensure organizational alignment. The readily available comparative data and competitive information has greatly facilitated action planning and reporting.

PARKnSHOP has maintained an effective work system to drive a performance driven culture within the organization. Training and education programmes are designed based on individual needs, existing job performance as well as constant input from employees. The company also organizes Regular Staff Forums to encourage and strengthen two way communications between employees and senior management.

At PARKnSHOP, clear goals and service pledges have been established for process deliverables. The company is also dedicated to build a win-win partnership with its suppliers by establishing an efficient and effective workflow and upgrading the suppliers` management and professional capabilities.

Improved market share, sales performance and customer loyalty reinforce PARKnSHOP`s commitment to quality and make the company stand out from its competitors. Moreover, the successful launch of the "wet market" section in Superstores has built up a new area for future business expansion of the company.

Cheung Kong Holdings Citybase Property Management - Certificate of Merit Recipient

For Cheung Kong Holdings Citybase Property Management, the Board of Examiners are impressed with its successful implementation of Total Quality Management which enables the company to achieve a high level of customer and employee satisfaction.

The top management has successfully developed a unique culture to foster, share and reinforce the company`s vision and values, whilst actively encouraging learning and innovation. During annual management retreats, core values have been reviewed and significant industry trends identified and analyzed to plot strategies and develop company action plans for improvement.

In order to better understand customers needs, collect feedback and enhance relationship, the company has successfully developed a wide range of sensors and means of communication such as Performance Pledges, Hi-Touch Management, Newsletters and so forth. Besides, systematic approach has been adopted to analyze performance reports, track up-stream problems, validate data and develop solutions.

Citybase Property Management has demonstrated its emphasis on achievement of quality through people. Attention is given to ensure that employee performance management is fair and supportive of high performance.

The company also uses various improvement mechanisms to look at documentation, test reasonableness, streamline policies and processes and simplify workflow.

All of the above enable the company to achieve significant improvements in customer satisfaction, a high level of staff satisfaction with management and an increase in staff commitment to the improvement drive. Several awards in human resources management and customer services also demonstrate industry leadership recognition in these areas.

Cheung Kong Holdings Goodwell Property Management - Certificate of Merit Recipient

Cheung Kong Holdings Goodwell Property Management has demonstrated to the Board of Examiners a strong culture for excellence driven by a well-established vision and mission.

Effective channels such as CEO dialogue sessions and different strategic planning sessions have been established by the top management of Goodwell Property Management to effectively cascade its strategic direction down to all levels of staff.

The company adopts a wide range of methods such as annual customer satisfaction surveys and focus group meetings, to collect and understand the needs of customers. These channels provide the company with broad, validated and continuous inputs which are crucial in helping the company to stay current with market changes.

In Goodwell Property Management, performance measurement systems are in place to understand, align and improve performance at all levels. High performance employees and teams are rewarded through various effective schemes with due recognition advertised internally. Detailed job roles and skill requirements are clearly identified and different benchmarking exercises are used to develop staff potential.

The company has utilized a Critical Success Factors survey to identify key delivery processes. Apart from the Key Performance Indicators, the company also incorporates the changing customer requirements into process design. Organization alignment is also assured by the application of "Service Expectation Agreements" among supporting and functional departments.

Goodwell Property Management`s strong profit growth and return on assets is evident. Contract retention has remained at 100% since 1997. The annual Customer Satisfaction Survey shows positive and sustained improvement trends since implementation in 1994. Positive growth in employee satisfaction and significant improvement in work safety have also been observed in recent years.

Organized by The Hong Kong Management Association since 1991, the HKMA Quality Award aims to reward companies which have achieved outstanding levels of quality and made a lasting commitment to the process of quality management. The Award also strives to encourage all companies, large and small, to measure themselves against the seven major criteria of Award modelled after the well-known American Malcolm Baldridge National Quality Award.

Headed by Dr T Y Lee (Chairman), Director, Technology Support Centre, The University of Hong Kong, the Board of Examiners this year include Mr Y K Chan, Safety and Quality Development Manager, MTR Corporation; Mr Stephen Lee, Senior Quality Assurance Manager, Retail Banking Division, Hang Seng Bank; Mr Sidney Leung, Assistant Vice President, Private Trust Services, HSBC Republic; Mr Francis Tsui, Director - Operations Support, Xerox (China) Ltd; Mr I S Wink, Group Quality Systems Manager, Gammon Construction Ltd; and Mr Isaac Yeung, Superior Quality Service Programme Manager, The Hong Kong and China Gas Co Ltd.

The Panel of Judges comprises: Mr Giovanni Angelini, Chief Executive Officer and Managing Director, Shangri-La Hotels and Resorts; Mr Feng Xiao Ping, Director and Chief Executive Officer, Asia Television Ltd; Dr The Hon David K P Li JP, Chairman and Chief Executive, The Bank of East Asia Ltd; Mr Liang Xiaoting, First Deputy General Manager, Bank of China, Hong Kong Branch; Mr Banio Mok, Managing Director, Xerox (Hong Kong) Ltd; Mr John Steward, Vice President and General Manager, Hong Kong, American Express International, Inc.; and Dr Lawrence Wong, Chief Executive, The Hong Kong Jockey Club.

The Organizing Committee of this year`s Award are: Dr Lawrence Wong (Chairman), Chief Executive, The Hong Kong Jockey Club; Mr William Au, Vice President, Marketing and Sales Division, Asia Television Ltd; Mr Alfred W K Chan, Managing Director, The Hong Kong and China Gas Co Ltd; Mrs Sally Chow, Assistant General Manager, South China Morning Post Publishers Ltd; Mr Howie Ng, Chief Executive, Hong Kong Quality Assurance Agency; Mr David Turnbull, Deputy Chairman and Chief Executive, Cathay Pacific Airways Ltd; and Ms Lily Wan, Director, Public Affairs and Communications, East Asia, American Express International, Inc.

The Award is generously sponsored by American Express International, Inc.; Bank of China, Hong Kong Branch; Cathay Pacific Airways Ltd; COSCO (Hong Kong) Group Ltd; Glorious Sun Enterprises Ltd; The Hong Kong and China Gas Co Ltd; The Hong Kong Jockey Club; Hong Kong L P Gas (Holdings) Ltd; Island Shangri-La, Hong Kong; The Kowloon Motor Bus Co (1933) Ltd; Kowloon-Canton Railway Corporation; McDonald`s Restaurants (Hong Kong) Ltd and Xerox (Hong Kong) Ltd. Media sponsors of the Award are Asia Television Ltd and South China Morning Post Publishers Ltd.

2000 HKMA QUALITY AWARD PAST AWARD WINNERS

2000 Overall Winners PARKnSHOP Certificates of Merit Cheung Kong Holdings Citybase Property Management Cheung Kong Holdings Goodwell Property Management 1999 Overall Winners Glorious Sun Enterprises Ltd The Hong Kong and China Gas Co Ltd Certificate of Excellence Hang Seng Bank Certificate of Merit Hsin Chong Real Estate Management Ltd 1998 Overall Winners MTR Corporation McDonald`s Restaurants (Hong Kong) Ltd Certificates of Merit Ken On Concrete Company Ltd Tse Sui Luen Jewellery Co Ltd

1997 Overall Winner Island Shangri-La, Hong Kong Certificates of Merit Gammon Construction Ltd Guangdong Enterprises (Holdings) Ltd Philips HK Ltd - Line of Business Portable Audio Ready Mixed Concrete (HK) Ltd 1995 Overall Winner Kowloon-Canton Railway Corporation 1994 Overall Winner Integrated Solutions Ltd 1992 Overall Winner Mandarin Oriental Hotel Group 1991 Overall Winner Xerox (Hong Kong) Ltd

Issued by The Hong Kong Management Association on 23 June 2000.
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