Session 3 by Ricky

Develop and articulate ideas for describing leading change in an organisation of your choice.

The organisation that I choose is Prudential Hong Kong Co. Ltd., a financial and insurance company which served Hong Kong for more than 160 years, which began to focus on China market in the recent two years.

Compared to China, Hong Kong is a relatively a higher welfare and living standard, with low a tax and death rate place. As today's finance market in HK is with an intense competition, the Prudential Company begins to focus its target to China market, a potential market with a huge number of population.

The purpose of the change is: to maintain the economic growth, enlarge the market share in China, keep its leading position of Hong Kong market and spread out from its competitors (AIA, Manulife, China Life, etc.)

Here are the main aspects of change by this company:

1. Adjusting the organisational structure

Adjusting the organisational structure means to allow expansion into foreign markets. Since the year 2009, the company has been changing the staff allocation state by recruiting staff who has China background, with an annual population growth of 5 percent every year. These staff graduated from a famous university, who are fluent in Putonghua, and their hometown are from different province in China. Besides, new trainers and personnels were recruited, who can handle the market affairs, the different types of culture, the economic state and the legal system of China.

2. Building a new training and educational system

Facing the new comers, the company built up a new programme called “the Mainland Academy of Financial Services” (MAFS), as well as the current AFS, to provide a comprehensive platform for staff training and career development, with an aim to facilitate the financial planners to acquire the professional knowledge and relevant skills. It forms a solid foundation in career, which can also helps employees to possess the holistic view and systematic practice by offering plenty of sales development support. 

Besides, the MAFC stands for the acquirement of China market study, such as Putonghua language teaching and learning, China legal system and market knowledge, consultant skills learning, etc. Almost all the staff were given a weekly specified learning objective to Putonghua language in order to better serve customers from China market.

3. Staff social network development

The company announced an implementation of media tools which are popular in China. These communication and social network tools includes Weixin, QQ, Renren, etc. Staff were told to be trained regularly to use these new ICT tools, and through these tools the staff can regarded to better communicate with customers there, and better build the business relationship between each other.

4. Staff professional development

Currently the company is also undergoing a “career path” programme for employees’ professional development. It is developed to attract the best candidates possible. The focus is on continuous development to ensure career success and job satisfaction as a financial manager, whether in sales management or as a consultant.

Findings:

From the data given by Prudential in February 2012, it is proved that the revenue and overall profit of the company from China customers has increased 97% in the year 2010, and 110% in the year 2011, from which the general percentage of China market revenue has increased from the initial lower than 7% to today's more than 30% in the total percentage of the company profit! So, it seems that the leading changes that the company made is successful in improving the profit making. 

Reference:
"Expanding China Market",
http://paper.wenweipo.com/2000/10/14/CH0010140028.htm

“Prudential 2010 Summer Internship Programme（Mainland Student）Open Seminar”，
http://lionbbs.net/dispbbs.asp?boardid=33&Id=30847&page=178&star=1

Post by Ricky Kwoonkay Chan