Fiscal
Performance
We are happy to report that during 1999/2000, the Electrical and
Mechanical Services Trading Fund (EMSTF) recorded another year of
positive business performance, whilst also making significant progress
and improvements in customer service, productivity and quality.
Despite phase
one "untying" which began in August 1999, new business
gained has far outweighed the limited amount of business lost to
competitors, and overall results have surpassed those of 1998/99.
The fiscal year ended with a turnover of $3,060 million (1998/99:
$2,913 million), representing a healthy 10.9 per cent return on
revenue.
Productivity
Gains![](images/chamtim.jpg)
During the fiscal year, we recorded a further productivity gain
of 5 per cent, which has been passed on to clients in the form of
price reductions. We are proud to report that EMSTF has already
achieved the targetted 15 per cent cumulative productivity gain
in the first three years of operation since August 1996, and continued
to achieve another 2.5 per cent productivity gain in the second
half of 1999/2000.
However, in
a fast changing environment we cannot be complacent. Running a viable
operation is only one of our objectives. Our other priorities centre
around satisfying the needs of our customers and, on a more macro
level, finding ways to help build a better community through the
excellent servicing of our clients.
Helping
Clients Meet Their Goals
As a government body ourselves, we are sensitive to the impact of
Government's Enhanced Productivity Programme which requires all
government departments to enhance productivity by five per cent
in three years. As EMSTF had an early start in its productivity
enhancement programme, we have gained some experience and are well
positioned to help clients achieve their efficiency targets with
innovative solutions.
One example
is our long-term Service Level Agreements whereby customers can
enjoy our services at very attractive prices as a result of better
economies of scale and improved resource management. This has proven
popular with several key customers, and we look forward to extending
the plan to other clients.
In fact, over
the past few years EMSTF has already made a wide variety of tools
and methods available to help clients become more productive. Our
annual price reductions provide direct cash savings for customers
who continue to enjoy a better and wider range of services. Our
good performance indicators also point to greatly reduced downtime
in clients' plant and equipment. Our Work Improvement Teams and
Business Process Improvement Teams, which have been in place for
years, are a major source of creative ideas to streamline and improve
work processes that relate to the optimum performance of client's
plant and facilities.
Quality
and Y2K Achievements
During the year we became the first government department in Hong
Kong to obtain the ISO 9001 Corporate Certificate, and we are well
on our way to achieving ISO 14000 certification with regard to our
environmental practices. We have also successfully helped clients
to navigate their complex Y2K issues extremely smoothly. Our client
manager system has been overhauled to improve communication with
customers. We have also brought in consultants to critically review
our business strengths and strategies for long-term planning, and
will start a Total Quality Management programme to deepen and align
the quality cultures within the organisation.
Business
Prospects
Looking forward, we are confident that EMSTF will continue to see
steady growth. The satisfactory results in 1999/2000 can be attributed
to prudent management, pro-active marketing, disciplined cost savings,
focused customer services and thorough planning in staff re-training
and deployment. Whilst there was some business loss, affected employees
demonstrated very positive attitudes and lost no time in learning
new skills for new assignments, a sign that our cultural changes
have truly taken root. The second phase of "untying" is scheduled
for August this year, but with prudent planning, diligence and discipline,
we believe we are ready for the challenge.
Building
a Better Community
Business aside, we never stop asking ourselves what EMSTF can do
towards the building of a better community. The answer lies in our
ability to advise clients to adopt engineering solutions which are
more environment-friendly, energy efficient and safe.
In this regard,
EMSTF is launching an Indoor Air Quality pilot programme on selected
client premises to benefit all who work in or visit these buildings.
We are also helping hundreds of schools to install IT rooms and
multi-media learning centres for their tens of thousands of students.
Our colleagues
in Regulatory Services are also contributing to the community, including
the application of energy efficient water-cooled air conditioning
systems, for buildings in both existing and newly formed districts.
They also play an active role in providing technical and safety
support to the infrastructure development of the LPG vehicle schemes.
Their expertise will inevitably benefit the public in creating a
better quality of life.
Appreciation
1999/2000 has been a good year for EMSTF and I wish to thank all
our staff for making this possible. Without their hard work and
support, we would not have achieved so much in the fast changing
external environment, which has created many additional challenges
for us all. I also wish to thank our customers for their patronage
and support, and our consultants and contractors for the contribution
of their knowledge, insight and efforts. With your continued support,
we look forward to another year of success.
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