Commentary

Do you ever wonder why some business owners are so successful, while others are just scraping by, trying to make some money for a living and working very long hours?

As Asia continues to grow in economic prominence, one of the region’s most established international arbitration venues is also raising its game.

In August 2011, Chinese Vice Premier Li Keqiang visited Hong Kong, where he unveiled plans to create an exchange-traded fund (ETF) that would allow mainland China investors to invest in stocks listed in Hong Kong.

It’s a candidate-led market in this job sector.

“Corporations resemble nations in that they reflect the accumulation of past events and the shaping force of underlying genetics that have roots in prior generations.” Built to Last: Successful Habits of Visionary Companies

Hong Kong’s Causeway Bay is now the second most expensive shopping district in the world, behind New York’s Fifth Avenue and ahead of Tokyo’s Ginza, London’s Bond Street and the Champ Élysées in Paris. Of course Mainland Chinese shoppers are the driving force behind these high rents and there are often long lines of mainland tourists outside the Louis Vuitton, Burberry and Dolce & Gabanna stores, where they are (allegedly) preferred over local shoppers, much to the chagrin of many Hong Kong inhabitants.

I have far fewer concerns about a bank going under in Hong Kong than I do in the US. And in Hong Kong I can move money into gold or any number of currencies.

In recent years, both in Hong Kong and internationally, an increase in emphasis has been placed on board diversity, and, in particular, on including more women in the boardroom.

Hong Kong is one of the fastest paced places in the world, and for business executives stress is part and parcel of everyday life today.

The average lifespan of a multinational (Fortune 500) company is 40 years. Of today’s Fortune 500, only 67 still exist from the first list published in 1955. Last week 133 year old Kodak filed for bankruptcy protection; in its 1980 heydays it employed 145,000 people, had great products (it even invented the digital camera) and its brand belonged to the most valuable in the world. Too slow to change to the digital world, decades of decline ended in a slow, but certain death. In a recent study that TNS conducted with CMOs of 30 multinationals about digital and marketing, the CMOs recognized the necessity of speed and change, as they mentioned the imperatives for 2012:

In Hong Kong, gone are the days when we were chained to our desk from 9 to 5. How we work is changing. The idea of a “Third Place,” a space that’s neither home nor office but where people want to spend a portion of their lives, was introduced as far back as 1989 in Ray Oldenburg’s book “The Great Good Place.”

Today’s economic climate might look uncertain at best – and grim at worst – but companies can meet the challenges of market volatility by making the right decisions and investing in their people. Traditionally, investing in talent is a costly and often risky affair, particularly when times are tough. However, many of these costs and risks can be mitigated by making some slight adjustments in the type of employee a company is looking for. Flexibility –which not only adjusts to volatile markets but thrives off it – does not have to come at the cost of quality.

Once upon a time, Li Ka Shing was the most admired person in Hong Kong, being the richest of all tycoons; HSBC was the most revered company, as it racked in loads of money of which it paid back a fair share to its many small Hong Kong shareholders; and Hong Kong was proud to have the highest density of Gucci, Louis Vutton and Dolce & Gabbana stores in the world.

Hong Kong, like other well-developed countries and cities, needs to work hard on “sustainable development” to create a better balance between the economy, environment and society. Businesses, whether small or large, have a clear role – and responsibility – to contribute to ensuring that Hong Kong’s status as a world class city is not jeopardized.

Hong Kong’s infrastructure and transport industry faces external threats such as increasing competition from alternative gateways into China, including Shenzen and Guangzhou. At the same time, the industry must conquer human capital challenges such as the drain of highly skilled workers and a surplus of unskilled employees. This industry in Hong Kong must compete with cities in the region such as Singapore and Shanghai for highly skilled workers. Problems with pollution, high rental costs and a poor living environment are deterring many skilled expatriate and home-grown workers from living in Hong Kong. There is also a surplus of low-qualified or unskilled workers across the city state. Executives must now pursue a more comprehensive human capital strategy across these interrelated dimensions—talent, leadership, culture and organization structures. A human capital strategy helps put in place the right leaders to source, develop and direct the right workforce talent, supported by the right culture, organization and operating model. We believe they should: Create a more strategic HR organization. New success factors for HR have arisen in recent years. Managing talent across national borders is especially important, given the global nature of most large companies today; this includes enabling the businesses to operate consistently around the world, while also satisfying the legal requirements of individual nations. It’s also essential to have better metrics, which now means more than simply monitoring administrative costs. To be industry leaders, executives now must understand and measure the value of human capital itself—the total costs and investments in people.

Digital Waste, Zombie Followers and Marketing Opportunities